STOCK MARKET WATCH, Wednesday 23 June

[ozymandius]

Wednesday June 23, 2004

COUNTING THE DAYS
DAYS REMAINING IN THE * REGIME 215
DAYS SINCE DEMOCRACY DIED (12/12/00) 3 YEARS, 194 DAYS
WHERE'S OSAMA BIN-LADEN? 2 YEARS, 248 DAYS
WHERE ARE SADDAM'S WMD? - DAY 461
DAYS SINCE ENRON COLLAPSE = 944
Number of Enron Execs in handcuffs = 18
Recent Acquisitions: Jeff Skilling
ENRON EXECS CONVICTED = 2
Other Arrests of Execs = 54

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

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AT THE CLOSING BELL ON June 22, 2004

Dow... 10,395.07 +23.60 (+0.23%)
Nasdaq... 1,994.15 +19.77 (+1.00%)
S&P 500... 1,134.41 +4.11 (+0.36%)
10-Yr Bond... 4.70% +0.01 (+0.30%)
Gold future... 395.50 +1.00 (+0.25%)


|||


GOLD, EURO, YEN and Dollars

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PIEHOLE ALERT

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

For information on protests and other actions Citizens For Legitimate Government

---

[ozymandius]

1. WrapUp by Ike Iossif

DO YOU KNOW WHAT YOUR MUTUAL FUND MANAGER IS DOING?

This article is going to be rather short, but I hope it will inspire some of you to check your mutual fund holdings. We are in the middle of a research project, which has revealed a lot more than what we were looking for when we initiated the project. We apply a series of screens in order to arrive at the companies that fit the criteria we are looking for. The first screen involves companies that experienced a net increase in their institutional ownership over the past six months. Then we examined if insiders increased their ownership stakes at the same or higher rate as mutual fund managers did. If insiders are buying, they must know something, and if mutual fund managers are buying, it means the stock has institutional support. That's a winning combination to start with. To our surprise we found out that in the past six months as mutual fund managers increased feverishly their stake in many companies, insiders decreased their stake at an even higher rate! Our findings begs the question; who do you think knows more about the company, the people who run it, or some over-educated with an oversized ego, master of the world wanna-be, like the geniuses who run some of Fidelity and Janus funds?

I will leave the answer up to you...

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

[ozymandius]

2. Early signs mostly positive for North American markets before Fed meeting

TORONTO (CP) - Early indicators were mostly positive for North American stock markets Wednesday as investors awaited the U.S. Federal Reserve (news - web sites)'s next move on interest rates.

Wall Street futures suggested a weak start for regular trading, but European indexes moved up in early action.

-cut-

Hong Kong's stock market closed little changed, with many investors staying on the sidelines to see whether the Fed raises interest rates next week after meeting on Tuesday and Wednesday. The Hang Seng Index inched up 4.18 points, or 0.04 per cent, to 11,849.77.

story

[54anickel]

14. All this talk of waiting for the Fed to make the next move on rates is

pointing to another week of watching the paint dry.

[ozymandius]

3. Stocks face Norway factor

NEW YORK (CNN/Money) - Concerns about oil as a strike by Norwegian workers widens could put pressure on U.S. stocks when trading begins Wednesday.

-cut-

The six-day walkout by North Sea workers over pension rights and restrictions on temporary workers is expected to expand this weekend. It has cut off about 375,000 barrels of oil a day from the world's No. 3 oil exporter at a time of pricing pressure in the U.S. and China.

http://money.cnn.com/2004/06/23/markets/stockswatch/index.htm

[KoKo]

26. Don't know Ozy. Market didn't get upset over yesterdays bombing of Iraq

pipeline again. Just after it was announced this weekend that all the sabotage in the last weeks of the pipeline had been repaired (ahead of schedule) and oil was now flowing in Iraq at full peak.

One wonders if anything really affects the market these days as it can't crash and can't take off. It just trades in a range. The "invisible hand" again, I guess.

[ozymandius]

4. Good morning all.

:donut: :donut: :donut: :donut: :donut: :donut:

Must head out for awhile. I'll check back later. My son needs to get to school.

Ozy :hi:

[UpInArms]

5. daily dollar watch

http://quotes.ino.com/chart/?s=NYBOT_DXY0

Last trade 89.48 Change +0.05 (+0.06%)

Settle 89.43 Settle Time 23:34

Open 89.15 Previous Close 89.43

High 89.55 Low 88.82

http://www.fxstreet.com/nou/noticies/afx/noticia.asp?pv_noticia=1087991361-9e32d306-23343

Forex - Dollar bounces back from early losses

LONDON (AFX) - The dollar bounced back from early losses to gain ground on the euro, pound and yen for no apparent reason other than a wave of speculative buying. The dollar has come back "like a beach ball pushed under water," said Marc Chandler, chief currency strategist at HSBC Bank USA

"It seems difficult to explain the dollar's action in the foreign exchange market in terms of fundamental news" with neither its decline Tuesday nor its resurgence today being driven by macro-economic developments, he added

The euro slipped back under 1.21 usd while the pound fell more than one cent from levels near 1.83 usd. The dollar also closed in on the 109 yen level. The dollar's rise today comes after a period of weakness triggered by the record US current account deficit in the first quarter, revealed on Friday

But several key events lie ahead, which may in the end provide the market with something to chew on, especially as the first half of the year draws near. Among them, the US rate verdict on June 30 and the hand over of power in Iraq

Elsewhere, the pound came under pressure after the minutes of the Bank of England's last rate setting deliberations came in a little less hawkish than market expectations

While the vote for a quarter point rate hike on June 10 was unanimous, unlike the May deliberations, there was no discussion of a bigger increase, and one unnamed member of the Monetary Policy Committee came close to dissenting

The news allayed concerns that the central bank will hike rates in July. "The minutes indicate that the next hike will be in August at the earliest, with the MPC waiting to determine whether the hikes begin to take effect, especially with regard to the housing market," said Mitul Kotecha, global head of forex strategy at Calyon.

...more...

http://www.fxstreet.com/nou/noticies/afx/noticia.asp?pv_noticia=1087977828-9e32d306-13414

ROUNDUP China CPI under pressure, govt macro control will continue - NDRC

BEIJING (AFX-ASIA) - China's top economic planning body warned that consumer prices, which rose at their highest rate in seven years in May, are set to climb further as the impact of costlier production materials and food work their way through the economy. Economists expect the consumer price index, which rose 4.4 pct in May year-on-year, will top five pct growth in June, the threshhold central bank officials have said would trigger an increase in interest rates

The one-year benchmark lending rate currently stands at 5.31 pct. The spokesman for the National Development and Reform Commission told reporters the index will rise by around five pct this month, and will continue to be pressured into the third quarter, although growth will taper off in the fourth quarter as the lagging effect of increases in raw materials and food prices wears off. "Due to this (lagging) effect, there will be a relatively large growth margin in prices in the third quarter, although this will gradually disappear in the fourth quarter," Cao Yushu told a news conference

Cao would not comment on the timing or the likelihood of an interest rate hike or any further measures policymakers might take to cool overheating in some sectors

But he said the government was determined to do what was needed to keep growth under control. "We will adhere to measures that have already been introduced and will implement these measures," he said

A statement released by the NDRC ahead of the news conference said: "This remains a critical moment for macroeconomic control, and therefore the determination to strengthen macro-economic control should not waver." China's economy has grown strongly over the past year, with gross domestic product up 9.8 pct year-on-year in the first quarter of this year on the back of soaring fixed asset investment, surging credit growth and strong foreign investment inflows. The government has been concerned about the pace of growth, especially investment in some sectors such as steel, autos, real estate and aluminum. It fears this could lead to a new round of non-performing loans in the country's already troubled banks, trigger inflation, and, further out, lead to supply gluts.

...more...

(edited to add ino.com link)

[54anickel]

8. "No apparent reason other than a wave of speculation" - Oh, that's

priceless. Reminds me of that article from last week about the huge increase in currency trading action over the years.

On edit, here it is - posted last Thursday....it was that older article from '97

http://www.twnside.org.sg/title/nar-cn.htm

Global currency speculation and its implications

IN 1975, about 80% of foreign exchange transactions (where one national currency is exchanged for another) were to conduct business in the real economy. For instance, currencies change hands to import oil, export cars, buy corporations, invest in portfolios, or build factories. Real transactions actually produce or trade goods and services. The remaining 20% of transactions in 1975 were speculative, which means that the sole purpose was an expected profit from buying and selling currencies themselves, based on their changing values. So, even in the days when the real economy was dominant, some currency speculation was going on. There had always been that little bit of frosting on the cake.

Today, the real economy in foreign exchange transactions is down to 2.5% and 97.5% is now speculative. What had been the frosting has become the cake. The real economy has become just a small percentage of total financial currency activity.

snip>

Three Consequences

The first consequence of this state of affairs is that national governments are in the process of losing power. The nation-state is the one entity that cannot manage in this new climate. It has no way to gain power against global capital and information technology.

Currency traders are effectively 'policing' governments by selling off a nation's currency when they are dissatisfied with that government's policies. If enough traders act together, the value of a currency can plummet, creating a 'currency crisis'. These sudden large sell-offs are viewed by governments as 'attacks' on the value of their currencies.

snip>

They both agree that there are many more people now who have an interest in profiting from instability; previously, they had an interest in stability. If you have an unstable system, it is just a question of when it will fly off the handle. It will blow apart at the moment when the US dollar experiences a crisis. When the dollar crisis occurs, the world will have no system left.

snip>

The third consequence is some thing with which you are very familiar. As a great portion of the national currencies - about $2 trillion per day - is being turned around in the financial cyber-economy, there is just no satisfactory medium of exchange available to people at the bottom. National currencies are not widely available to the poorer parts of the population. The age of labour as a key component of production is gone. If you don't have a job, you don't have 'money' (i.e., national currency). Even despite the fact that structural unemployment is increasing, the economy can continue to 'grow' very well. Technology will shift us still further in that direction.

more...

[KoKo]

25. This article is interesting, and particularly since it's from '97. Are

we seeing the full bloom of what he was talking about?

For those who are daily readers and posters on this Forum it's hard not to have noticed a "pattern" in our financial markets. The first references to the mysterious "PPT" and jokes about the market not being concerned about disasters in Iraq or pretty much anything since 9/11 except rumors of interest rate hikes seem which we all thought were "interesting" are now taking on an ominous tone. Suddenly lots of investment analysts and professional market watchers are talking about "PPT" and "invible hand" and "globilization" of our world monetary supply. It's not just a few "Gold Bugs" sounding alarms it getting widespread enough that the "Supply Siders" in this administration are getting angry enough to go on the attack.

What used to be fun watching the markets on a daily basis an noticing all the "curious" behavior in the last couple of years, is now starting to get a little scary.

Does anyone else feel that our markets are in the same situation as our country...taken over by Zealots and Globalists seeking world domination? Empire?

Or, did I get infected by Mogambo's "cooties" and am just raving conspiracy theory here?

[54anickel]

6. UPDATE - No sign of U.S. housing bubble-- NY Fed study

http://biz.yahoo.com/rf/040622/economy_fed_housing_2.html

NEW YORK, June 22 (Reuters) - There is no bubble in U.S. home prices despite the price surge in recent years, the New York Federal Reserve Bank said on Tuesday, and even if regional prices do fall, that will not pose a threat to the overall economy.

The recent increase in house prices has been in line with declining mortgage rates, a factor that many arguments about a housing bubble ignore, the New York Fed said in a study.

"Our analysis of the U.S. housing market in recent years finds little evidence to support the existence of a national home price bubble," senior economist Jonathan McCarthy and vice president Richard Peach said.

The study has important implications for Federal Reserve policy because evidence of housing bubbles in both Britain and Australia has influenced their central banks to raise interest rates in the past year to cool the market.

more...:eyes:

[Demeter]

22. They're Joking, Right?

If the bubble hasn't popped yet, then it's not a bubble? Or rather, if the economy is so bad that nobody can sell a house, it's not a bubble?

As for me, bring back Bubba! It was only after Clinton had been in office 6 years that I could sell my house (as opposed to giving it away) after 12 years of Reagan/Bush

[54anickel]

7. BOJ in for another fight, this time not deflation

http://biz.yahoo.com/rf/040623/economy_japan_boj_1.html

TOKYO, June 23 (Reuters) - Any change to the Bank of Japan's ultra-easy monetary policy might mean it has won the war on deflation, but may also get the central bank into another fight -- this time with a government that has come to take cheap credit for granted.

The Bank of Japan has repeatedly denied it has an exit policy is in the works, and no change is expected from Friday's policy board meeting.

But a strong economic recovery is forcing markets to price in the possibility of an early end to deflation and with it an end to zero interest rates. Higher rates mean the government faces a bigger bill to service its ballooning debt.

"If rates keep rising, it is quite possible that the government will ask the BOJ to help, to prolong easy monetary policy and keep long-term rates under control," said Mamoru Yamazaki, chief economist at Barclays Capital.

snip>

"If they don't raise rates when they ought to, the market will only expect a big rate rise ahead. And if it's seen holding back because of pressure from the government, that could hurt its credibility."

The BOJ, fearing nervous reactions from the market, has so far been silent on a possible exit strategy and the possibility of adopting some sort of inflation target.

more...

[54anickel]

9. China auctions $33bn of bad loans

http://news.ft.com/servlet/ContentServer?pagename=FT.com/StoryFT/FullStory&c=StoryFT&cid=1087373189163&p=1012571727195

China has held a ground-breaking auction of non-performing loans with a face value of Rmb280bn ($33.8bn), pitting four state-owned asset management companies against one another for the first time.

Officials at rival AMCs said China Cinda Asset Management, a bad loan recovery vehicle, had won the unprecedented contest for the right to deal with the non-performing loans from Bank of China and China Construction Bank, two of China's "big four" state lenders.

The auction marks a new step in government efforts to clean up the banks' books as part of reforms intended to pave the way for them to issue shares to overseas investors.

snip>

Foreign bankers said there would be a flurry of interest from overseas investors when Cinda started selling the new tranche of non-performing loans.

"These loans are likely to be of a better quality than in previous auctions because they are more recent and come directly from the banks," said a banker who specialises in buying non-performing loans in China.

more...

[54anickel]

10. Bond funds see $17.5bn net outflow

http://news.ft.com/servlet/ContentServer?pagename=FT.com/StoryFT/FullStory&c=StoryFT&cid=1087373192890&p=1012571727204

Investors pulled an estimated $17.5bn out of bond funds during May - the highest level in at least seven years - in an apparent sign that they believe the 20-year boom in bonds has come to an end.


The US Federal Reserve is expected next week to begin lifting long-term interest rates for the first time in four years, a trend that will make for lower returns for bonds.

Lipper, a fund tracker, said it estimated the net outflow for bonds exceeded the $13.3bn "panic drain" of last August, when investors first began to realise interest rates were going to go up.

The May outflow was the highest since Lipper began formally tracking inflows seven years ago, and analysts said it was probably the highest for several years before that as well.

snip>

The data also showed that investors were continuing to shy away from the 20 fund companies named in the nine-month-old mutual fund trading scandal.

Lipper said more than $15bn was pulled from the companies named in the scandal, despite an increase in money going into the industry overall.

more...

[54anickel]

11. The Fed and ECB -- Two Banks, One Oil Reality

http://quote.bloomberg.com/apps/news?pid=10000039&refer=columnist_sperling&sid=auB2ov8BJ0pE

June 23 (Bloomberg) -- High oil prices present a rebuke to U.S. President Harry Truman's famous request for a one-handed economist who would never offer ``on the one hand, on the other hand'' solutions.

Oil shocks are, in a word, stagflationary: On the one hand, they can increase prices throughout the economy, hastening inflation and justifying tighter monetary policy; on the other hand, they can clamp down on consumer spending, damp growth and provide a rationale for monetary easing.

Indeed, the recent oil price increase may be provoking an ``on the one continent, on the other continent'' split between a more growth-focused U.S. Federal Reserve and a more inflation- averse European Central Bank.

snip>

In April 2002 testimony, Greenspan more than hinted that economic models might not fully capture the impact energy-price increases can have on consumer demand. ``The responsiveness of U.S. GDP to energy prices,'' he explained, ``is far more complex and may be quite different when households and businesses are confronted with abnormal price hikes. Macro econometric models typically may not capture the effect of sudden and sizable shifts in oil prices on the economy.''

Hmmmm, tinfoil firmly in place - did Alan know something back then already? Was this a warning flag to Shrubco and his oil cronies that they might not wanna go there? There's that CT coming out of me again - never mind, just thinking outloud....

more...

[UpInArms]

12. Jury suggests Chicago tycoon forfeit $30M

http://seattlepi.nwsource.com/national/apus_story.asp?category=1110&slug=BRF%20Insurance%20Fraud

CHICAGO -- A federal court jury has ordered a politically connected insurance tycoon convicted of embezzling more than $20 million from his own company to forfeit $30 million to the government.

The jury also ordered Michael Segal to forfeit 60 percent of his interest in Near North Insurance Brokerage Inc.

Segal, 61, was taken into custody immediately after the verdict Tuesday because the judge considered him a flight risk.

Segal was convicted Monday and faces at least 20 years in prison. No sentencing date has been set. Segal's company also was convicted on charges including mail fraud and embezzlement.

During the two-month trial, prosecutors contended that Segal looted a restricted account at Near North to finance a lavish lifestyle and build his business.

...more...

[54anickel]

13. But that's just "business as usual" these days, part of being a "savy"

business man. :eyes:

Why forfeit to the gov't? Were there no victims deserving restitution?

[UpInArms]

15. Market Numbers and blather at 10:49 EST

Dow 10,373.46 -21.61 (-0.21%)
Nasdaq 1,993.48 -0.67 (-0.03%)
S&P 500 1,132.79 -1.62 (-0.14%)
10-Yr Bond 4.736% +0.032

10:00AM: The market continues to hover around unchanged as a lack of conviction starts the session off with sideways trading...The economic front is empty again today, as it has been all week, and the lack of data is only adding to the uncertainty...Early breadth figures look slightly bullish as the advance/decline line starts to steepen to 5-to-4 on the NYSE and Nasdaq...Adding to the list of leaders is homebuilding and oil & gas while tobacco remains strong...Laggards of note include iron & steel and discount retail...NYSE Adv/Dec 1382/1107, Nasdaq Adv/Dec 1395/1040

9:45AM: The cash market opened relatively flat, as predicted by the futures market, as the major indices test yesterday's highs near the close...Lately the market has been lacking the catalyst needed for a break out as volume remains light...Early leadership can be seen in tobacco stocks while laggards are scarce...

9:18AM: S&P futures vs fair value: -0.1. Nasdaq futures vs fair value: -2.0. A listless futures market this morning; the cash market looks poised to follow suit

[54anickel]

16. Foreign Net Inflows Fall for 3rd straigh month, Deficit Looms (from the 15

better late than never I guess - sort of forgot to check on the old Forex News site lately)

http://www.forexnews.com/ai/default.asp?f=A20040615A.mgn

Articles and Ideas section

Net foreign purchases of US assets (stocks and bonds) slowed for their third consecutive month, reaching $76.2 billion in April, from a revised $80.6 bln.

Net purchases of US treasuries fell 43% to $35.3 billion from April’s record high, while purchases in corporate bonds also fell, losing 45% to $16.7 billion. But the aggregate decline in Treasuries and corporates was nearly made up by the 683% jump in net purchases for Agency bonds, which amounted to $31 billion as foreigners shifted their purchases following the decline in US treasuries. Recall, last month we predicted that foreigners would curtail their purchases in US treasuries arguing that: “ …the April data is likely to show a decline in purchases of US Treasuries…As the Bank of Japan ceased from intervening in April, 10-year Treasuries fell by more than 6% in the month”

Net inflows in US stocks soared 86% but foreigners remained net sellers at $1.9 billion from a record net sales of $13.4 billion.

Central Banks Still Dominate Foreign Purchases of Treasuries

Despite the 43% drop in net foreign purchases of US Treasuries, foreign official accounts –usually central banks—made up 63% of the net Treasury purchases in April at $22 billion, the biggest portion of total purchases since October of last year. This also reflects the rising interest in newly issued Treasury securities in last week’s auction. Wednesday's 15 billion 5-year auction drew an impressive 56% participation from indirect bidders, which are a proxy for foreign accounts, i.e. central banks. This was far greater than the average 35% from previous auctions.

One could argue that a rebound in the US dollar may reduce Asian central banks' urgency to stabilize excessive strength in their currencies via treasury purchases. But the hold-to-maturity approach of central bank buying will be more justified as US interest rates pay higher yields. Nevertheless, one valid argument making the case for an expected slowdown in official Treasury purchases is reduced intervention from the Bank of Japan. As the Japanese economy maintains its gradual acceleration, authorities may see less urgency in engaging on an export-led currency policy, which won little popularity at the US Treasury, especially as the US administration remains critical of China’s interventions.

snip>

Capital Flows Remain Sufficient

snip>

But Monthly Deficit to surpass $50 billion before year-end

Nonetheless, the aforementioned total net “private” capital flows could be overtaken by the ever-rising trade deficit, especially as it breaks the $50 billion barrier before year-end. Bear in mind the deficit rose 16% in the 6 months ending in April mainly as a result of import growth continuing to outpace exports......

snip>

The situation could reach a point when currency traders could fret about the dollar based on the psychological impact of the $50 bln threshold, to be reached as early as this summer....

more...

[54anickel]

17. SEC Probes Brokers in $204 Billion Auction-Rate Bond Market

http://quote.bloomberg.com/apps/news?pid=10000103&sid=aBNsDhUEHnJQ&refer=us

June 23 (Bloomberg) -- The U.S. Securities and Exchange Commission is reviewing whether brokers who help set interest rates on $204 billion of corporate and municipal bonds misled investors and issuers.

The SEC's enforcement staff asked several brokers of so- called auction-rate bonds to provide ``a written report detailing any potentially deceptive, dishonest or unfair practices,'' according to a memo that the Bond Market Association, the Securities Industry Association, and the American Bar Association sent to their members. The memo, obtained by Bloomberg News, didn't specify what type of abuses or which firms the government is probing.

Investors in auction-rate debt buy a long-term security, such as a 30-year bond, and bid through brokers to set the coupon as frequently as weekly or monthly. The interest rate resets in a so-called Dutch auction, in which the lowest price becomes the level at which the entire offering is sold. The risk of manipulation in a Dutch auction is if bids aren't blind or if brokers and bidders enter into undisclosed arrangements.

In practice, ``there rarely are true auctions,'' said Joseph Fichera, chief executive of Saber Partners LLC, a New York firm that advises bond issuers. ``There's too much risk to both the investor and the issuer for it to be a blind auction on such a frequent schedule. The broker may be eliminating the blindness to manage risk.''

more..

[54anickel]

18. A Superbowl of subsidies

http://money.cnn.com/2004/06/22/news/economy/pork_bill/index.htm

Deficit schmeficit, Congress says, in a pork-laden tax bill that may smother its healthier parts.


NEW YORK (CNN/Money) - Despite nervous hand-wringing in the media about federal budget deficits, U.S. lawmakers on both sides of the aisle are holding strong, valiantly flinging pork far and wide.

This in turn is raising criticism from left and right that they're burying what might actually be a half-decent piece of legislature in a mountain of fat.

The $34 billion corporate tax bill passed last week by the House of Representatives has been called "a masterpiece of bad legislation" by the editors of the allegedly liberal New York Times and "an arbitrary auction of taxpayer money" by the editors of the allegedly conservative Washington Times.

snip>

Along with breaks for liquor, aircraft, shipping and other industries, the watchdog group Taxpayers for Common Sense (TCS) has identified some $19.5 billion worth of fat in the new bill.

TCS Vice President Keith Ashdown called the bill a "platinum-plated pig" and a "Superbowl of subsidies."

much more...

[54anickel]

19. Lunch hour numbers

Dow 10,398.54 +3.47 (+0.03%)
Nasdaq 2,005.27 +11.12 (+0.56%)
S&P 500 1,135.75 +1.34 (+0.12%)
10-yr Bond 4.715% +0.011
30-yr Bond 5.399% +0.007

NYSE Volume 616,392,000
Nasdaq Volume 822,271,000

12:00PM: The market has been really struggling to find direction this morning as trading remains muted due to a 3-day drought in economic data...Traders have their sights trained on next Wednesday's FOMC meeting as fed fund futures price in an over 100% probability of a "measured" 25 bp hike...While everyone appears to be looking for the "measured" approach next week, the market seems to be trading with a look of uncertainty. Volume remains light and ranges are compressing...Not all of that can be associated with a lack of data...

Yesterday's total range in 10-year treasury futures amounted to a minute 6/32nds and today's range so far amounts to only 7/32nds with yields currently 4.713%...Tobacco stocks are doing quite well this morning, following an upgrade to R.J. Reynolds (RJR, +4.43%), giving rival Altria Group (MO, +0.73%) a needed bid... Food processing stocks are under performing the broader market as Kraft Foods (KFT, -1.84%), Sara Lee (SLE, -1.16%) and Sysco Corp (SYY, -1.75%) lead the decline along with weakness in discount retail...Crude oil prices have shed -1.75%, as supply concerns ease due to the resumption of Iraqi exports and a rise in inventories...

For now the market seems content with sideways trading as overall sentiment remains neutral...NYSE Adv/Dec 1482/1560, Nasdaq Adv/Dec 1474/1409

[54anickel]

20. Europe gold weaker, rangebound eyeing currencies

http://www.fxstreet.com/nou/noticies/afx/noticia.asp?font=Reuters&pv_noticia=MTFH99017_2004-06-23_15-16-07_N2W316286

LONDON, June 23 (Reuters) - Gold slipped further in Europe on Wednesday afternoon as the dollar recovered from earlier losses against the euro, with many dealers still preferring to remain on the sidelines ahead of U.S. economic data at the end of the week.

snip>

"There are a range of excuses for reduced risk appetite at present...and this is encouraging two-way interest in limited ranges," Barclays Capital said in a daily report.

snip>

Dealers said that gold was finding it difficult to crack resistance just above the market, with the 100- and 200-day moving averages sitting at $398 and $397 respectively. The market has tried to take out these levels -- and failed -- every trading session since last Thursday.

snip>

"I fancy we may even move down to have a look at $388/90, an area which it bypassed on the way up. I am sure it will hold there given the current situation but I also don't see it running away on the upside."

Gold's safe-haven appeal amid geo-political tension in Iraq was highlighted by the beheading of a South Korean hostage by militants.

snip>

Dealers and analysts said however that while the security worries helped to support prices, they were playing second fiddle to currency drivers.

snip>

Higher U.S. interest rates could bolster demand for the dollar, which would theoretically damage gold's draw as an alternative investment, but the precious metal can also be seen as an inflation hedge.

more...

[54anickel]

21. Bank eyes consumer gold rush

http://www.chinadaily.com.cn/english/doc/2004-06/23/content_341679.htm

Beijingers yesterday became able to buy and sell gold bars at a bank, opening a convenient and flexible new investment tool to help citizens manage their assets.

The China Merchants Bank (CMB) said it had launched the repurchasable gold bars business in the capital city and planned to next extend it to Shenzhen. A step by step national roll-out is expected to follow.

CMB is a sales agent for the repurchasable gold bars processed by CGS Ltd, a joint venture between the mainland and Hong Kong. The first batch of gold bars are divided into three specifications: two ounce, five ounce and 10 ounce. All reach 99.99 per cent purity.

The buying and selling prices of the gold bars will fluctuate based on the quotation of the London Precious Metal Exchange and with reference to the Shanghai Gold Exchange, China's sole gold market.

snip>

CGS declined to disclose the exact amount of gold they have provided to CMB, but have guaranteed enough to supply the market.

snip>

Meanwhile, the company and CMB will jointly provide more investor services and derivative financial products, including an on-line business and gold mortgages.

snip>

"The gold transactions in the bank are more standard and convenient than in the department stores, given the bank's reliable financial support and rich financial management experience," said Xu Shouxin, deputy secretary-general of the China Gold Association.

more...

[KoKo]

28. Does anyone have any thoughts on this?

:shrug:

[54anickel]

37. Not sure what to make of it KoKo, it's interesting that China has decided

to put gold sales in a bank though, isn't it? Strange place for selling a commodity. You know me, I LIKE the idea! B-)

[54anickel]

23. Mogambo...a bazooka in one hand & a teddy bear in the other

http://www.321gold.com/editorials/daughty/daughty062304.html

snip>

I bring this up because the recent news is that one out of 130 Americans now has a net worth in excess of a million bucks. Well, all that money that the Fed has been creating all these decades had to go somewhere, I guess. But at the same time, and if you look at your watch you will notice that the time is "right now," there are a hell of a lot of people, and I bandy the figure 25% of the working population to mean "A hell of a lot of people," who make less than $18,000 per year, and average household income is less than forty thousand bucks a year, which used to be a hell of a lot of money a decade ago, but now can hardly make ends meet. This is because prices have risen so high.

These are people whose net worth is actually negative, and it rises and falls with the number of coins that are behind the couch cushions and the few bucks you can glean sending the kids to search for coins carelessly left in the cars of people visiting the neighbors, who didn't even take the common-sense precaution of locking their damn cars, and yet here they come, predictably whining and complaining that it is somehow MY fault that their cars are ransacked and now reek with some peculiar odor of some sort.

And pretty soon, as the income level rises, you are up to the minority of the population, the ones we heretofore refer to as "the few." These people have a nice net worth, and about $50,000 in their retirement plans. Not as much as you, of course, because you are so brilliant and wonderful and you haul down the Big Money. But just a paragraph ago I told you that prices have risen so much that $40,000 gross income was almost insufficient! So how far is that $50,000 in a retirement plan actually worth, in terms of buying power?

snip>

I am not surprised. But I would have been surprised to learn that the government was NOT trying this seamy stunt, gallantly trying to keep this groaning fat blob of overvalued financial engineering alive, constantly resuscitating this bloated bull market corpse that now represents everybody's retirement plan, every government's revenue stream, a huge segment of the population speculating on stocks, and a hell of a lot of jobs, not the least of which are the talking heads on TV who are feeding the mania, each of them terrified offstage, knowing that they have kids to feed and a mortgage to pay, and if this stock market things peters out, then my prospects are grim, since the market for know-nothing loudmouth shills is crowded enough as it is.

I can almost hear it now. Alan Greenspan and a bunch of Congresspersons all stand around furrowing their brows and putting on a brave front. "But it was for our own good! We all prospered when our retirement plans and our speculative accounts all gained! We made money! And life went on! And everybody was better off than if we had just let the economy collapse. And besides, it was just money that we gave ourselves, wasn't it?"

And it may actually work for awhile! At least until November, so that Bush can be reelected. And it will continue to work until the downside of monetary expansion kicks in at the end of the boom period. You are so charming when you ask, with that impish little grin on your cherubic little faces, "Pray tell us, Mighty Mogambo, what is this downside of which you speak with such dread and conviction that, verily, it makes our blood run cold to hear you speak thusly, and we are sore afraid?" As the Mogambo basks in the serenity True Enlightenment, he smiles inwardly, knowing that he could answer, in ways both profound and confusing, and then all of you would leave shaking your heads in complete bewilderment and refusing to put any money into the Tip Jar.

more...

[KoKo]

27. Well, "54" you got me hooked on Mogambo and this is I think the 4th

of his rants that have given me a laugh of the day. Is he posting more than usual? I would understand it, since many of us are getting a little more unhinged and frantic lately with what's going on. Have you found a picture of him in any of your travels? Would love to see what he looks like. :D

[UpInArms]

24. Market Numbers and blather at 2:47 EST

Dow 10,399.05 +3.98 (+0.04%)
Nasdaq 2,007.26 +13.11 (+0.66%)
S&P 500 1,136.49 +2.08 (+0.18%)
10-Yr Bond 4.696% -0.008

2:30PM: All of the major indices have stabbed at higher levels but lack the conviction for any credible moves...The overall sentiment has become modestly bullish while the Dow seems unable to post gains due to weakness in financials like American International Group (AIG, -1.38%) and American Express (AXP, -0.99%) and retail giant Wal-Mart (WMT, -1.54%)...The Nasdaq has crept into new 2-week highs as the index tops out at 2008.52, but holds just off the highs...We are getting into the summer doldrums for trading and volume will likely remain muted until next Wednesday's FOMC meeting...

Steel and oil stocks continue to dominate the new 52-week high list as they have most of this week.NYSE Adv/Dec 1804/1365, Nasdaq Adv/Dec 1913/1132

2:00PM: With all of the major indices in positive territory, the market seems willing to accept the day's established ranges while the Nasdaq is itching to stage a move higher...Nothing has significantly changed in the past 30 minutes as the market trades at the high end of the range...Tomorrow's durable goods data is the next hurdle for a market running on empty as Briefing.com expects a 2.0% increase against a consensus of 1.5%...We expect a partial rebound from the -3.2% decline for April after a stunning 4.9% average for February and March...

Boeing's largest order increase since November provides some upside risk...Initial claims shouldn't carry too much weight now that chatter of a "jobless recovery" have died down...The Help-Wanted Index usually draws little attention while an expected jump in new home sales could give materials a boost tomorrow...NYSE Adv/Dec 1719/1419, Nasdaq Adv/Dec 1776/1230

1:30PM: Sideways trading continues into the afternoon as the market yearns for tradable news...

Paint happily drying ....

[Maeve]

29. Wheee! Someone went on a buying spree!

Dow 10,479.94 +84.87 (+0.82%)
Nasdaq 2,020.98 +26.83 (+1.35%)
S&P 500 1,144.06 +9.65 (+0.85%)
10-Yr Bond 4.698% -0.006

Haven't got the closing blather up yet, but...

3:30PM: A half an hour until the closing bell and the market has taken off, again setting new session highs on all of the major averages...The Nasdaq is spearheading the late-day advance as shares computer-related stocks like Intel (INTC, +1.36%) and Cisco (CSCO, +3.19%) press higher...Semiconductor stocks have outperformed the major averages all session but the strength seemed unable to inspire the broader market...Shares of FedEx (FDX, +2.36%) have been outperforming all session after raising guidance and posting earnings in-line with expectations this morning giving transportation stocks a boost...
At these prices, the S&P and Nasdaq are at their highest levels in 2-weeks while the Dow has jumped to levels not seen since late April...NYSE Adv/Dec 1984/1227, Nasdaq Adv/Dec 2034/1035

http://finance.yahoo.com/mo

[UpInArms]

31. there's that simul-posting thing!

:D

:bounce:

[UpInArms]

30. Market Roared in the last hour of trade

Dow 10,479.57 +84.50 (+0.81%)
Nasdaq 2,020.98 +26.83 (+1.35%)
S&P 500 1,144.04 +9.63 (+0.85%)
10-Yr Bond 4.698% -0.006

3:30PM: A half an hour until the closing bell and the market has taken off, again setting new session highs on all of the major averages...The Nasdaq is spearheading the late-day advance as shares computer-related stocks like Intel (INTC, +1.36%) and Cisco (CSCO, +3.19%) press higher...Semiconductor stocks have outperformed the major averages all session but the strength seemed unable to inspire the broader market...Shares of FedEx (FDX, +2.36%) have been outperforming all session after raising guidance and posting earnings in-line with expectations this morning giving transportation stocks a boost...

At these prices, the S&P and Nasdaq are at their highest levels in 2-weeks while the Dow has jumped to levels not seen since late April...NYSE Adv/Dec 1984/1227, Nasdaq Adv/Dec 2034/1035

3:00PM: With an hour of trading remaining, the major averages have inched to new highs yet again as the market continues to trade sideways at the top end of the day's range...The market has lacked a driving force all day and should continue to wander around over the next couple sessions...Tomorrow's durable goods data is the only real piece of hard economic data we will see this week as Briefing.com expects a more optimistic 2.0% compared to a consensus looking for 1.5%...

Tomorrow we expect earnings from A.G. Edwards (AGE, +0.31%), Family Dollar (FDO, +3.04%), Rite Aid (RAD, -0.40%) and Del Monte (DLM, -0.09%) before the bell...NYSE Adv/Dec 1804/1365, Nasdaq Adv/Dec 1913/1132

2:30PM: All of the major indices have stabbed at higher levels but lack the conviction for any credible moves...

am curious to see the closing blather - what happened that turned everything up sweets and flowers?

[54anickel]

35. WTF?!??! They came crawling out of the woodwork while I stepped out for

the usual plasma run! Here I thought it would be a paint drying kind of day. B-)

[UpInArms]

32. US Treasuries aided by indirect bidding at auction

http://www.reuters.com/financeNewsArticle.jhtml?type=bondsNews&storyID=5496992

NEW YORK, June 23 (Reuters) - U.S. Treasury debt prices edged up on Wednesday amid easing anxiety the Federal Reserve will move aggressively to boost interest rates and after good indirect bidding interest in a two-year note auction.

On the surface, the $25 billion sale appeared roughly in line with expectations as the new notes went for a yield of 2.785 percent. They drew bids for 2.17 times the paper on offer, just below the level seen at the last auction in May.

However, a breakdown of the results showed indirect bidders, which include all customers of primary dealers as well as foreign central banks, picked up nearly 60 percent of the offering, well above last month's 40 percent.

This helped allay concern that overseas central banks were losing their appetite for U.S. government debt, especially with the Federal Reserve on the verge of raising interest rates.

...more...

[UpInArms]

33. FedEx earnings jump by 48 percent

http://triad.bizjournals.com/triad/stories/2004/06/21/daily23.html?jst=b_ln_hl

FedEx Corp. on Wednesday reported earnings of $1.36 per share for its fiscal fourth quarter, an increase of 48 percent compared to the 92 cents a share it earned in the same period last year.

The earnings for the quarter ended May 31 included a penny per share for realignment costs and a 4 cent benefit from a nonrecurring reduction in the effective income tax rate.

The Memphis, Tenn-based company's net income rose by 47 percent, to $412 million from $280 million, and revenue by 21 percent, to $7.04 billion from $5.83 billion in the same period last year.

FedEx Chairman, President and CEO Fred Smith said the company's entire portfolio of transportation services is experiencing strong demand, especially in ground, international express and regional less-than- truckload services.

...more...

[UpInArms]

34. Closing Blather

Close: The market spent the better part of today's session bouncing around unchanged on light volume as a general lack of conviction kept trading range-bound... The market was really just looking for an excuse to trade sideways in front of next week's FOMC meeting...Tobacco stocks fared well, following an upgrade to R.J. Reynolds (RJR, +3.87%) this morning, while upgrades to Goldman Sachs (GS, +1.35%) and SouthTrust (SOTR, +1.53%) gave the banking industry a boost...

Shares of FedEx (FDX, +2.22%) outperformed all session after revising guidance and posting earnings in-line with expectations and added support to the transportation sector...Crude oil prices shed -1.78%, as supply concerns eased due to the resumption of Iraqi exports and a rise in inventories...Overall, the market looked poised to close relatively flat...At least until the last hour of trading where the Nasdaq spearheaded the late-day advance as shares of computer- related stocks like Intel (INTC, +1.71%) and Cisco (CSCO, 3.23%) added to earlier gains...At the closing levels, the Nasdaq is at its highest closing level in 2-weeks while the Dow and S&P have jumped to levels not seen since April...

Tomorrow's durable goods data is the next hurdle for a market running on empty as Briefing.com expects a 2.0% increase against a consensus of 1.5%...Initial claims shouldn't carry too much weight now that chatter of a "jobless recovery" have died down...The Help- Wanted Index usually draws little attention while an expected jump in new home sales could give materials a boost tomorrow...

[54anickel]

36. Hmmm, that tells me NOTHING! n/t