STOCK MARKET WATCH, Tuesday 12 October

[ozymandius]

Tuesday October 12, 2004

COUNTING THE DAYS
DAYS REMAINING IN THE * REGIME 100
DAYS UNTIL W* GETS HIS PINK SLIP 21
DAYS SINCE DEMOCRACY DIED (12/12/00) 3 YEARS, 305 DAYS
WHERE'S OSAMA BIN-LADEN? 2 YEARS, 359 DAYS
DAYS SINCE ENRON COLLAPSE = 1055
Number of Enron Execs in handcuffs = 19
Recent Acquisitions: Ken Lay
ENRON EXECS CONVICTED = 2
Other Arrests of Execs = 54

---

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

---

AT THE CLOSING BELL ON October 11, 2004

Dow... 10,081.97 +26.77 (+0.27%)
Nasdaq... 1,928.76 +8.79 (+0.46%)
S&P 500... 1,124.39 +2.25 (+0.20%)
10-Yr Bond... 4.13% UNCH (UNCH)
Gold future... 423.40 -1.10 (-0.26%)





GOLD, EURO, YEN, Dollars and Loonie

---

PIEHOLE ALERT

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

For information on protests and other actions Citizens For Legitimate Government

---

[UpInArms]

1. daily dollar watch

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

Last trade 88.06 Change +0.52 (+0.59%)

http://www.fxstreet.com/nou/noticies/afx/noticia.asp?font=Reuters&pv_noticia=MTFH34024_2004-10-12_10-44-15_RAJ221129

GLOBAL MARKETS-Oil races past $54, investors fret over economy

LONDON, Oct 12 (Reuters) - A surge in oil prices to record highs above $54 a barrel and weak economic data fanned investor concerns over the health of the global economy on Tuesday.

Stocks, bonds and currencies all felt the impact of NYMEX crude's <CLc1> vault to $54.45, with shares stumbling towards two-week lows on worries that corporate profits would be dented and government bonds rallying on concern about a decline in global economic output.

<snip>

Futures point to a weak opening on Wall Street and investors remain wary ahead of Intel Corp's results <INTC.O>, which are due out after the market closes.

NYMEX crude oil futures jumped beyond $54 as global oil supplies remained hounded by disruptions, magnifying concerns over U.S. heating oil supplies ahead of the winter with the vital inventory report due out on Thursday.

The dollar rebounded from its one-month low against the yen as the Japanese currency lost its footing in the face of soaring oil prices and big falls on the stock market.

The euro was down half a percent against the dollar.

...more...

http://www.fxstreet.com/nou/noticies/afx/noticia.asp?pv_noticia=1097572172-9e32d306-15524

EU commissioner says high oil prices make euro more attractive than dollar

AMSTERDAM (AFX) - EU commissioner Siim Kallas said the surge in oil prices is helping make the euro an attractive alternative to the dollar

"With the recent sharp rise in oil prices, expecially in dollar terms, the issue has been raised whether we would benefit from a switch to invoicing oil in euros instead of the dollar," he told a European Commission conference on the euro

Kallas, who is shadow economic and monetary affairs commissioner, said that while promotion of the international use of the euro is not an independent EU policy, the "implementation of stability-oriented macroeconomic policies and further progress with financial integration within the euro area ... are expected to underpin ... the attractiveness of the euro as an international currency"

He added: "Diversification into the euro reduces the risk for investors who were exposed to dollar assets and the dollar exchange rate." His comments follow yesterday's statement by EU economic and monetary affairs commissioner Joaquin Almunia that the value of the euro is no longer as great a concern as it was last year, when the single currency was rising sharply

On exchange rate volatility, Kallas suggested that the introduction of the euro had not reduced this

...more...

No reports today - but many companies will be stating earnings.

Have a Great Day Marketeers!

[ozymandius]

11. Treasuries Rise as Oil Spikes to Record

NEW YORK (Reuters) - U.S. Treasuries climbed on Tuesday amid a relentless rise in oil costs that hinted at a slowdown in consumer spending in the coming holiday season.

As crude futures set fresh record highs above $54 a barrel, analysts recalled Friday's soft employment report and saw a murky overall economic picture -- a boon to safe-haven government debt.

"Oil is still doing its thing," said Gregg Cohen, a trader at CIBC World Markets. "And there's some follow through from Friday's (jobs) number. Meanwhile, they got some weaker news in Europe. Put it all in a blender and you've got a positive open."

The jobs disappointment last week helped cast further doubt on the Federal Reserve (news - web sites)'s future course of action, reigniting hopes among bond bulls that the central bank could slow the pace of interest rate hikes after November.

more...

http://story.news.yahoo.com/news?tmpl=story&ncid=1196&e=3&u=/nm/bs_nm/markets_bonds_dc&sid=95609877

[UpInArms]

2. Oil price at new record of above $54 pb; Brent crosses $51 pb

http://www.newratings.com/analyst_news/article_493609.html

NEW YORK, October 12 (newratings.com) – World crude oil prices continued their upward rally today above $54 per barrel, rising to new record high levels for the sixth consecutive day.

The US light crude futures contract price increased to a new record high of $54.15 per barrel in electronic trading this morning at the New York Mercantile Exchange (NYMEX). London's Brent crude futures contract price increased to a new record high of $51.20 per barrel, crossing the $50 per barrel mark for the first time since futures trading began at the International Petroleum Exchange (IPE). A nationwide strike began in Nigeria's oil refineries yesterday, propelling the ongoing rally in crude oil prices. Meanwhile, Yukos Oil was fined $1.34 billion yesterday, adding to the persisting supply disruption risks in the global oil market. The current crude oil prices are about 80% above the year-ago levels.

...very short newsblurb...

[UpInArms]

31. Oil punches through $54 US a barrel

http://www.cbc.ca/story/business/national/2004/10/12/oil_041012.html

TORONTO - Oil prices broke through another new record, passing the $54-per-barrel mark on Tuesday.

On the New York Mercantile Exchange, the price for the November contract for light sweet crude stood at $54.01 US, up 37 cents. In overnight trading, oil got as high as $54.45 US.

Supply concerns out of Nigeria continued to be a driving factor in world crude prices. A general strike entered a second day, prompting concern that shipments from the country could be affected.

<snipping to spin>

While oil prices are hitting record highs, they are still about $26 US a barrel below the inflation-adjusted peak, which was hit back in 1981.

...more...

With rationale like that, it must mean that we have actually been experiencing negative inflation for the past 23 years! Wow! No wonder my pocketbook feels so light after going to the grocery store! There's more money in it than there ever was! HUH??????

Will this guy pass over whatever it is that he's smoking? I definitely find a need for it in my world.

[UpInArms]

3. Bad earnings returns

http://www.newsday.com/business/local/newyork/ny-bzvote124003576oct12,0,2782523.story?coll=ny-nybusiness-headlines

With only weeks remaining before the elections, it's too early to say who will come out a winner. But at least one loser has already been named: Diebold, the company that makes touch-screen voting systems, which warned yesterday that its earnings would fall short because of problems with the controversial machines.

Diebold, best-known for its ubiquitous automated tellers, issued the earnings warning based primarily on the performance of its tiny elections unit, which has faced major legal problems in California and questions about its security and accuracy in other parts of the nation.

With legal costs mounting, the North Canton, Ohio, company now expects to earn 67 cents a share in the third quarter, down from its previous forecast of 70 cents to 74 cents a share. Diebold shares were off 34 cents to close at $48.02.

The mess in California, which saw Diebold's computers decertified in three counties, are a microcosm of what's gone wrong with touch-screen voting nationwide. Experts complain that the voting machines lack an audit trail to combat fraud, comparable to what's been used for decades to sort out problems with the trillions of dollars that flow through ATMs.

...more...

[UpInArms]

4. Merck seeking new CEO

http://feeds.bignewsnetwork.com/?rid=1ce8220ec1e380c9&cat=3a8a80d6f705f8cc

The Wall Street Journal reports Merck & Co. of Whitehouse Station, N.J., has begun hunting for a new chief executive officer.

The move comes amid a string of bad news at the drug maker, including its recent decision to pull painkiller Vioxx off the market because of safety concerns.

Directors already have held a competitive shootout to pick the recruiters who will hunt for a chief executive officer, board member William G. Bowen told the Journal.

The recruiters made their pitches to win the assignment shortly before Merck's Sept. 30 withdrawal of Vioxx, a blockbuster drug that brought in annual sales of $2.5 billion.

Tests showed patients who took the drug for more than 18 months had twice the risk of having a heart attack or stroke.

Launching a CEO hunt now could give the board the option of a speedier succession than had been contemplated.

...more...

[UpInArms]

12. Wyndham CFO to leave, COO to go in shake-up

http://cbs.marketwatch.com/news/newsfinder/pulseone.asp?dateid=38272.3858101852-823335135&siteID=mktw&scid=0&doctype=806&property=symb&value=&categories=&

LONDON (CBS.MW) -- Wyndham International (WBR) said its chief financial offcer, Richard A. Smith, has left to join another company, while other executives are leaving as part of a realignment into a hotel operating company with a "more balanced portfolio of owned, managed and franchised properties." President and COO Theodore Teng will leave and not be replaced, with his duties picked by Chairman and CEO Fred Kleisner. Joseph Champ, executive vice president of business development and chief investment officer and Patricia Smith, executive vice president of human resources, will also leave. Elizabeth Schroeder will become acting chief financial officer, pending confirmation as the permanent CFO by Wyndham's board in early 2005.

those CEO/COO positions keep opening up so that there can be more job opportunities!

[ozymandius]

13. Maybe I'll apply for one!

How hard can it be? :evilgrin:

[UpInArms]

19. window of opportunity closed for so many on this one

:evilgrin:

Northwest Airlines names new management team

http://cbs.marketwatch.com/news/newsfinder/pulseone.asp?dateid=38272.4053587963-823337505&siteID=mktw&scid=0&doctype=806&

SAN FRANCISCO (CBS.MW) -- Northwest Airlines (NWAC) named a new executive management team on Tuesday. The team, reporting to recently named CEO Doug Steenland, includes Andy Roberts, excutive vice president of operations; Tim Griffin, executive vice president of marketing and distribution; Phil Haan, executive vice president of international, alliances and information technology and chairman of NWA Cargo; Bernie Han, CFO; Barry Simon, general counsel. Other executive operations changes were made within each department, the airline said.

[UpInArms]

37. and another door opens

Aon says investor relations head departs

http://cbs.marketwatch.com/news/newsfinder/pulseone.asp?dateid=38272.4696643518-823345220&siteID=mktw&scid=0&doctype=806&property=symb&value=&categories=&

SAN FRANCISCO (CBS.MW) -- Aon Corp. (AOC) confirmed Tuesday that investor relations head Sean O'Neill is leaving the insurance broker. The departure, coming less than two weeks after the firm announced Chairman Patrick Ryan plans to step down as CEO, is a concern ahead of third-quarter earnings, wrote Jay Gelb, an analyst at Prudential Equity Group, in a note to clients. Aon shares slid 21 cents to $27.87.

[UpInArms]

51. and yet another

Exide Technologies CEO to step down by April 1

http://cbs.marketwatch.com/help/default.asp?page=support/help/reprint.asp&dist=reprints&siteid=mktw

SAN FRANCISCO (CBS.MW) -- Exide Technologies (XIDE) said Tuesday that Craig Muhlhauser, its president and chief executive officer, will leave the company by April 1, 2005. The company said it is searching for his replacement.

[UpInArms]

and the Starbucks CEO bites the big one

Starbucks says CEO Orin Smith to retire in March 2005

http://cbs.marketwatch.com/news/newsfinder/pulseone.asp?dateid=38272.6790393518-823368668&siteID=mktw&scid=0&doctype=806&property=symb&value=&categories=&

SAN FRANCISCO (CBS.MW) -- Starbucks (SBUX) said late Tuesday that Orin Smith, its president and chief executive, will retire in March 2005 and named Starbucks president North America Jim Donald as his successor. The company said Donald will serve as CEO designate until formally taking the reins on March 31, 2005. Starbucks also said it promoted Jim Alling, executive v-p of Business Operations, U.S.A., to the newly created post of president, Starbucks Coffee U.S. as of Tuesday.

[UpInArms]

5. a Texas school district with Enronics accounting methods?

W-H to lay off 20% of staff

Process will start next week; 30 teachers could be lost in district

excerpt:

The district's financial consultants say the school district could run out of money again by March if swift measures aren't taken. The school board voted 7-0 Monday night to declare a financial emergency, which sets the layoff process in motion.

Meanwhile, a preliminary audit of the district's finances by the Texas Education Agency says Wilmer-Hutchins broke state law by taking out an illegal $500,000 loan this spring.

According to Mr. Damm, the district currently has 406 employees, 206 of them teachers. He said he recommended at least two – possibly three – separate layoffs.

<snip>

Mr. Damm said the total number of jobs lost could be reduced if administrators or other high-paid employees are laid off. If lower-paid workers are the primary targets, it will take more jobs lost to make up the amount Wilmer-Hutchins needs to cut. Mr. Damm put that amount at "several million dollars."

"It didn't happen overnight," Mr. Damm said about the district's problems. "The district's resources have been overtaxed and overspent."

<snip>

Even with all these cuts, the consultants said, the district would still have to seek a new loan, backed by tax revenues, in order to pay back a $3.8 million loan due in March. He said the district should seek a loan that would be paid back over five to eight years.

<snip>

Possible answers for where the money went could come in the multiple criminal investigations under way in the district. Two grand juries, the Texas Rangers, the FBI and others are investigating allegations of criminal wrongdoing, including misappropriation of funds.

In August, the district ran out of money and couldn't pay all of its teachers. A fund balance of $1.6 million disappeared in the span of three months, and it has not yet been explained where the money went.

...more...

[ozymandius]

7. I remember when a teacher was guaranteed lifetime employment.

To see so many teachers facing the certainty of losing their jobs is just criminal. The ambition of providing quality education for these students is allowed to rot on the vine.

My mother was a teacher. She believes that I would do well in that profession and has been pressuring me to pursue certification. Her main points are that a good teacher will receive job security, good pay, benefits and retirement. Now that we see how either politicians or incompetent administrators screw up the system, none of the benefits really apply anymore.

My mother retured almost ten years ago, so her view of an educator's "job security" was shaped by the way things were. She is appalled at the shape of our education system now.

There is no such thing as job security anymore.

[KoKo]

18. I'm hearing that Bushies and the states are pushing for funds for their

Community Colleges. NC has a bond issue up to expand CC facilities and everyone's on the "retraining" band wagon. Would seem that they would need to hire more teachers if there's more funding..and colleges still have "tenure" (at least I haven't heard they've managed to overthrow that yet...).

Seems that "re-training" at Community College is being pushed as the answer to "outsourcing" and "layoffs." It might be the new thing to get into to catch the next "wave." Don't know what the certification is, or if it's more stringent than for Public Schools, but it might be the same or even less? :shrug:

[ozymandius]

6. WrapUp by Jim Willie - ACID TEST ON YEAR-OLD VIEWS

In August of 2003, a series of articles entitled “Ass-Backward Economics” summarized my entire position, published in part I, part II, part III, and part IV. The irreverent banner was indicative of my disdain for economic directives, which have been backwards, ever since Greenspan departed from responsible banking policy. Economic policies and direction are pure folly. It took ten minutes for me to explain to Kurt Richebächer one afternoon on his porch, what was meant by the title. We had a good laugh during my demonstrated twisted walk with a leading backside, perhaps my best side. He had invited me on a visit to his home in France, based on the contents of that article series. A quick review might be worthwhile, in order to see where we stand, how my views were right on, and where they were off, perhaps even why. In review, little is off. This essay is the first of two installments, since in all ten fallacious beliefs and policies were listed in the original work, along with a preface of Gresham’s Law and two original corollaries.

-cut-

We have maintained a very wrong path since 1996. Many recall the myopic chairman’s speech warning of irrational exuberance. He should have heeded his own urgent warnings. A policy change was seminal and critical in 1995 and 1996. The Fed used to manage the money supply with tempered control based upon growth of the economy and its population. Nine years ago, we departed from that prudent path. In this new age, money supply has been permitted to grow almost without bound or discipline as long as no detrimental effects were observable in the consumer price index. This was insanity, and was total heresy in the historical guidelines of any sane central banker. The United States created great monetary expansion, and exported the inflation to Asia primarily. Asia overbuilt their manufacturing base, employed fractional banking to put at least $10 to use for every $1 in “hot money” held in their banks. A valid argument can be made that we inflated at home, and in the immediate, paid our bills to Asia with inflated money. As their production rose, our imports accelerated. The USDollar enjoyed a bull market, which translated into all imports falling in price. However, our national foreign dependence advanced in its destructive magnificence. Our inflation actually caused lower prices. We locked in a delayed reaction on realized consumer price inflation, which is the final step soon to be seen domestically. The mania continued up to 2000, fully supported by mythological mumbo jumbo rationalization, when the bust began. All economic policy has been screwball since the bust, in a desperate attempt to flood the system with liquidity so as to avoid a collapse. Heresy continues to be promoted as policy bound in wisdom.

-cut-

Gresham’s Law: “bad money displaces good money” (timeless axiom)

This continues to be true, as the USDollar retrenchment all year long continues to pressure gold. Something unusual is in progress. Even though the DXY index on the US$ is nowhere near its January lows with an 85 handle, gold has pushed past $420. Perhaps liquidity floods assist gold as well? Methinks the Asians are totally awash in surplus US$-denominated securities, and have broadened their accumulation of gold, unwilling to invest further large amounts in US TBonds. Bad money may have limited displacement potential in the future of Asian coffers.

more...

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

[ozymandius]

8. Hedge funds evolve into new breed of banks

In February, Alan Greenspan (news - web sites) expounded on why he thought hedge funds should stay above regulation. "The value of these institutions is to create a very significant amount of liquidity in our system."

But what does the chairman of the Federal Reserve (news - web sites) really mean by liquidity? And could this liquidity explain why the S&P Hedge Fund Index is up only 0.43 per cent in the year to date, the worst stretch since its inception? Is the liquidity a myth? No, but it is not what most people think.

-cut-

The market-neutral trading-oriented hedge funds have typically been uncorrelated with all other assets. Now they are correlated with a flat line or worse due to the enormous amount of inflows combined with the lack of volatility in the market. With the decline of interest rates, the risk aversion of trading-oriented hedge funds and banks alike, and the dotcom bust that also flushed out many of the third-tier investment banks, many hedge funds have gone from traders to alternative bankers.

Can you get a car loan from a hedge fund? A loan to buy a television? A credit card? A school loan or financing to fund a movie? Yes. Hedge funds specialising in alternative financing rather than alternative trading have sprung up in every category of asset-backed lending and have taken up the banner in areas where banks have either been too bureaucratic or too risk-averse to make the leap.

more...

http://story.news.yahoo.com/news?tmpl=story&cid=1106&ncid=1106&e=10&u=/ft/20041011/bs_ft/5a7eabd21bb711d98af600000e2511c8

[ozymandius]

9. Chain Store Sales Rise in the Oct 9 Week

NEW YORK (Reuters) - U.S. chain store sales fell in the first week of October as increased customer traffic in malls failed to translate into bigger purchases, a report said on Tuesday.

Sales at major retailers declined 0.8 percent in the week ended October 9 compared to the whole month of September. Year-on-year sales climbed 2.8 percent, said Redbook Research, an independent company.

...short blurb...


http://story.news.yahoo.com/news?tmpl=story&ncid=1203&e=1&u=/nm/20041012/bs_nm/economy_retail_redbook_dc&sid=95609869

[UpInArms]

20. Retailers slip early Tuesday

http://cbs.marketwatch.com/news/newsfinder/pulseone.asp?dateid=38272.4051157407-823337499&siteID=mktw&scid=0&doctype=806&

CHICAGO (CBS.MW) -- The retail sector's main measure headed into the red early Tuesday, even in the face of a good weekly chain store sales report. The S&P Retail Index ($RLX) slipped nearly 1 percent to 411.68. In the strongest weekly gain since July, sales at major U.S. retail chains rose 0.5 percent last week after rising 0.3 percent the week before, the International Council of Shopping Centers and UBS reported Tuesday. Sales are up 3.7 percent year-over-year, ICSC said, and it expects October same-store sales to rise 3 to 4 percent.

[ozymandius]

10. pre-open blather

Wall Street Seen Headed Lower on Oil

NEW YORK (Reuters) - U.S. stock futures were sharply lower on Tuesday, pointing to a weak market open as crude oil prices held above $54 a barrel, amid an early burst of third-quarter earnings reports.

-cut-

S&P 500 futures were down 8 points, below fair value accounting for dividends, interest rates and time to expiration on the contract, indicating the market would open lower.

Dow Jones industrial index futures fell 59 points, while Nasdaq futures were down 15.5 points.

-cut-

Nasdaq futures held below 15 points throughout the morning, indicating tech shares would come under pressure ahead of Intel Corp.'s (Nasdaq:INTC - news) earnings report after the bell.

http://story.news.yahoo.com/news?tmpl=story&ncid=1196&e=1&u=/nm/bs_nm/markets_stocks_dc&sid=95609877

[UpInArms]

14. in the "oopsie" department

SG Cowen says avoid all chip stocks

http://cbs.marketwatch.com/news/newsfinder/pulseone.asp?dateid=38272.393900463-823336021&siteID=mktw&scid=0&doctype=806&property=symb&value=&categories=&

NEW YORK (CBS.MW) -- SG Cowen recommended avoiding all semiconductor stocks on the belief that weak demand and increasing supply will trigger productions cuts and pricing weakness. Analyst Jack Romaine believes disappointing third-quarter results are already priced into chip stocks, but the market has not yet discounted weak outlooks for the fourth-quarter and first-quarter of 2005. The Merrill Lynch Semiconductor Holdrs (SMH) are shedding 47 cents to $30.21 in Instinet pre-open trading. Among the sector tracking stock's most heavily weighted components, Intel (INTC) slipped 26 cents to $20.35, Applied Materials (AMAT) slid 28 cents to $16.01 and Texas Instruments (TXN) dropped 39 cents to $21.50 in pre-open trading.

(edited to add link)

[ozymandius]

15. 9:33 market's opening red

10,035.36 -46.61 (-0.46%)
Nasdaq 1,913.75 -15.01 (-0.78%)
S&P 500 1,119.13 -5.26 (-0.47%)
10-Yr Bond 4.096% -0.037
NYSE Volume 20,705,000
Nasdaq Volume 44,365,000

[UpInArms]

17. :)

:toast:

or do I owe you a coke?

[ozymandius]

35. beer does nicely

:beer:

[UpInArms]

16. 9:33 markets are open

Dow 10,034.41 -47.56 (-0.47%)
Nasdaq 1,913.99 -14.77 (-0.77%)
S&P 500 1,118.77 -5.62 (-0.50%)
10-Yr Bond 4.098% -0.035

[KoKo]

23. 10:21 and it's looking UGLY!

Dow 10,026.29 -55.68 (-0.55%)
Nasdaq 1,906.35 -22.41 (-1.16%)
S&P 500 1,116.64 -7.75 (-0.69%)
10-Yr Bond 4.09% -0.043
NYSE Volume 257,854,000
Nasdaq Volume 317,649,000

[UpInArms]

24. 10:40 EST numbers and blather (feeling better)

Dow 10,035.00 -46.97 (-0.47%)
Nasdaq 1,911.62 -17.14 (-0.89%)
S&P 500 1,117.74 -6.65 (-0.59%)
10-Yr Bond 4.092% -0.041

10:30AM: Key stock movers today include State Street Corporation (STT 40.50 -3.35), which reported earnings well below expectations and announced job cuts...also, the drug stocks are sharply lower again today...the DRG drug stock index is down 1%...Pfizer (PFE 29.83 -0.48) is a noteworthy loser...the major sector losers are computer storage devices, semiconductors, and gold...the bond market is up...NYSE Adv/Dec 645/2138, Nasdaq Adv/Dec 493/2070

10:00AM: Indices sag a bit further, but nothing dramatic...at the same time, there has been no real effort at a rally...oil will clearly be a major factor today, so all eyes have to be on that futures contract...Intel report after the close could also have a major impact...one interesting aside is that gold has fallen $7.50 today to $416 an ounce...the XAU gold stock index is down 2.3%...NYSE Adv/Dec 639/1684, Nasdaq Adv/Dec 554/1737

9:40AM: Stocks open significantly lower, as futures indicated would happen...another increase in oil prices is the main reason...the SOX semiconductor index is down 2% in early trading, after some companies had estimates lowered by analysts, and ahead of Intel's earnings report after the close today...Johnson & Johnson (JNJ 55.57 +0.21) had a good earnings report...

[UpInArms]

21. State Street shedding 425 jobs, shares tumble

http://cbs.marketwatch.com/news/newsfinder/pulseone.asp?dateid=38272.4033796296-823337255&siteID=mktw&scid=0&doctype=806&

NEW YORK (CBS.MW) -- State Street Corp (STT) said Tuesday it's cutting about 425 jobs. Earlier, the nation's largest custodian of assets reported weaker-than-expected third quarter earnings amid rising expenses. State Street shares fell 8.8 percent to $40 in early trade.

[UpInArms]

22. Gold falls as much as $10 an ounce

http://cbs.marketwatch.com/news/newsfinder/pulseone.asp?dateid=38272.4134375-823338475&siteID=mktw&scid=0&doctype=806&

SAN FRANCISCO (CBS.MW) -- Gold futures dropped as much as $10 an ounce to trade at their lowest level in a week, pressured by more strength in the U.S. dollar. At last check, the U.S. dollar was broadly higher against its major counterparts Tuesday, helped by dollar-supportive U.S. investment legislation and the sting of high oil prices on the yen. December gold is down $8.60 at $415.90 after a $414.50 low. Mining indexes are also lower, with the Amex Gold Bugs Index (HUI) down 2.4 percent.

54anickel, is this what you were referring to last week?

[54anickel]

28. Heh, I've posted so much about gold lately, not sure which one you're

referring to. I'm thinking it's about the entrance of hedge funds into the market. And yes, I did post something that anticipated a drop in the price a while back.

Money seems to just move around from oil to gold to treasuries looking to make a fast buck. The movements aren't making much sense anymore, gold and oil movements used to have a correlation - long gone with the search for a quick buck these days.

[UpInArms]

30. you had remarked that the big spike up

in gold felt like there was a suckers' rally coming.

:hi:

[54anickel]

32. Ahh, that one! Yep, sucker rallies seem to abound these days. I still

think the bond markets got sucker punched by the Fed. Isn't this the 2nd or 3rd false start Greenspin has tried to manipulate? He started raising rates before and had to back down. Seems it been 1 step forward and 2 steps back since the tech bust.

1/4 point, 1/4 point, cha-cha-cha.

[ozymandius]

36. I remember your prediction for a gold sucker rally.

Good job! :toast:

[KoKo]

39. I do too "54" and a good call it was.... Do you think the Day Traders have

shifted over into Gold and Commodities Speculation? I do... Not much money to be made in the stocks with the daily fluctations and constant bad news...they need a little longer time frame and time to do some hyping. :D

:toast:

[ozymandius]

25. 10:48 numbers and blather

Dow 10,031.31 -50.66 (-0.50%)
Nasdaq 1,911.00 -17.76 (-0.92%)
S&P 500 1,117.40 -6.99 (-0.62%)
10-Yr Bond 4.09% -0.043
NYSE Volume 350,673,000
Nasdaq Volume 430,793,000

U.S. stocks open lower as crude tops $54

NEW YORK (CBS.MW) - U.S. stocks opened broadly lower Tuesday morning as crude oil futures spiked above $54 a barrel and chip stocks were pressured by a cautious outlook from Dutch consumer electronics giant Philips Electronics.

-cut-

"The stock market just can't seem to disconnect from oil prices and what we need are some strong catalysts," said Peter Cardillo, chief market analyst and strategist at S.W. Bach.

"Since the unemployment report wasn't a catalyst, obviously we're going to have to get some real strong guidance from corporate America to at least cushion the market from any further declines due to climbing oil prices," Cardillo said.

http://biz.yahoo.com/cbsm-top/041012/af8f64f62173f695d70e705deac8ad9f_1.html

[UpInArms]

26. Report: SEC mulls pay disclosure rule

http://cbs.marketwatch.com/news/story.asp?guid=%7B18701293%2DB9AC%2D4776%2D813A%2D9735EC3BD0B9%7D&siteid=mktw

WASHINGTON (CBS.MW) -- The Securities and Exchange Commission is considering possible new rules that would require more disclosure about executives' retirement packages and other compensation, SEC Chairman William Donaldson said in a report published Tuesday.

Donaldson told The Washington Post that disclosure standards are insufficient for clearly determining the level of executives' salaries and compensation.

"I believe in people being well paid for really doing something," Donaldson told the newspaper. " as far as salaries and compensation are concerned, there remains obfuscation about who's being paid what. ... We have to think through what new rules we want, to make things more clear than they are now," he said.

Donaldson said commissioners and staff are in the early stages of considering new disclosure rules.

...more...

[UpInArms]

27. Media stocks open lower

http://cbs.marketwatch.com/news/story.asp?guid=%7B4894BBE4%2DCD58%2D4D48%2D818C%2DB71FC51897D0%7D&siteid=mktw

NEW YORK (CBS.MW) - Media stocks slumped Tuesday morning, pulled lower by the Tribune Co., News Corp. and Gannett Co.

<snip>

News Corp. (NWS: news, chart, profile) fell after newspaper reports indicated its Fox Broadcasting unit might be subject to a $1 million fine from the Federal Communications Commission.

Federal regulators will propose the fine for the network's broadcast of the reality series, "Married in America," which included a bachelor party scene featuring topless prostitutes, according to the Wall Street Journal.

...more...

eeeekkk! What about those "family values"?!?

[UpInArms]

29. Countrywide Fincl loan volume falls (oops!)

http://cbs.marketwatch.com/news/story.asp?guid=%7B076042B6%2D18A4%2D403C%2D9BBB%2D4A277F5E51FD%7D&siteid=mktw

NEW YORK (CBS.MW) - Countrywide Financial Corp. on Tuesday reported September loan funding of $31 billion, down 6 percent from year-ago levels and steady with August.

Third-quarter loan volume fell by $8 billion, or 27 percent, to $92 billion "as a result of lower industry-wide refinance activity," the Calabasas, Calif. (CFC: news, chart, profile) mortgage giant said.

Purchase volume for the third quarter reached $52 billion, an increase of 14 percent over the second quarter, and 35 percent more than a year earlier.

...more...

[54anickel]

33. Global: Danger Zone

http://www.morganstanley.com/GEFdata/digests/20041011-mon.html#anchor0

As the odds of a full-blown oil shock rise, we have little choice other than to cut our global growth forecast. Our first revision is a relatively small one: We are reducing our 3.9% estimate of world GDP growth for 2005 by 0.3 percentage point to 3.6%. Yet there is more to this revision than meets the eye. This relatively modest cut to our annual growth numbers masks a worrisome shortfall we now anticipate in early 2005 -- a shortfall that pushes the global growth rate down to its “stall speed.” History tells us that is a very precarious place to be -- it doesn’t take much to tip a stalling global economy into outright recession. As I see it, that remains the major risk as we peer into 2005.

By region, our forecast cuts are pretty much across the board. For the major developed economies of the world -- the US, Europe, and Japan -- we are paring our previous GDP growth estimates for 2005 by -0.3 percentage point. That leaves us with a consensus forecast for the US (3.5%), slightly below consensus for Europe (1.8%), and well below consensus in Japan (1.0%). Our downwardly revised estimates are also below consensus in Asia ex Japan, where we have cut our pan-regional 2005 growth forecast by 0.3 percentage point to 5.5%. A reduction to our China forecast bears special mention, where we are cutting our 2005 growth prognosis from 7.5% to 7.0%; inasmuch as this follows an upwardly revised 9.5% estimate for 2004, our projected deceleration in Chinese economic growth is all the more dramatic -- more than a 25% slowing in the growth rate on a real GDP basis and a good deal more than that on an industrial-output basis. Our forecast changes are minor for Emerging Europe and Latin America -- upward revisions to the oil producers (Russia, Venezuela, and Mexico) offset by slight downward revisions elsewhere.

Our new forecast reflects a significant reworking of our oil price assumptions, detailed by Dick Berner and Eric Chaney (see their 4 October dispatch, “Will Oil Prices Peak at $50?”). Relative to our previous assumptions, we have raised our estimate of the peak in oil prices by $10; that is consistent with Brent crude topping out at $50 this month and the price for WTI sweet crude peaking at $3-4 higher. By our reckoning, the new equilibrium for oil prices is now somewhere in the $30-40 range -- well above the $20 average of the 1990s. While we still assume a sharp fall-off over the next year back into the middle of that range, our new oil price profile is 8% above our previous assumptions for 2004 and 11% higher than what we had been assuming in 2005. Using standard rules of thumb, that translates into a loss of about 0.25 percentage point of global growth -- not all that different from the revisions described above.

Annual averages tend to obscure the quarterly profile of economic growth. The impact of the current surge in oil prices is expected to be felt most acutely in early 2005. In the first quarter of the year, our revised forecasts now call for annualized real GDP growth of just 2.5% in the United States, 1.0% in Euroland, and an outright contraction of -0.7% in Japan. That puts the combined growth of these three regions -- which collectively account for fully 79% of the output in the advanced countries of the world -- at just 1.5% in 1Q05. In my view, that pushes growth in the developed world down to its “stall speed” -- an anemic growth rate that could easily give way to outright recession. Nor can we count on the developing world to provide an offset. Lacking in self-sustaining domestic demand, the externally-dependent economies of Asia and Latin America will undoubtedly be quick to follow the emerging weakness in the advanced economies.

more...

[54anickel]

40. Oil-shocked into recession?

http://money.cnn.com/2004/10/11/news/economy/oil_shock/index.htm

Economists say record oil is already taking a bite out of growth; some fear recession could follow.
October 12, 2004: 8:02 AM EDT



NEW YORK (CNN/Money) - Economists agree that oil prices have already spiked enough to take a bite out of the nation's economic growth. But what they can't agree on is whether this downswing could spiral into a full-blown recession.


snip>

Other economists aren't quite as concerned about contraction, although most say there has been a significant impact on the economy from current prices.

"I think energy affects us at every price. As we go marginally higher, growth forecasts get marginally weaker," said Steven Wieting, senior economist at Citigroup. "At roughly $50, oil should be holding back GDP (gross domestic product) growth by a full percentage point in the year to come. Fortunately, we have more than a percentage point to give."

But even some of those who believe $50 oil increases will have only a limited effect say they're concerned about how fast prices have risen. In little more than four weeks, they've skyrocketed about 25 percent.

snip>

Still, other economists say they're not overly concerned about the economy falling into contraction or recession, even though past oil spikes have produced just such economic woes.

more...

[ozymandius]

54. "other economists" - who are these people?

Fox News often says, when pushing a point, that "some people say" that this is that and that is this. Do we really know who these people are?

Something else that comes to mind: We have mainstream economists and bond traders who are contradicting two branches of the Bush government. Bond traders have moved interest rates in opposition to the Fed's actions. Now we have economists going mainstream with thoughts divergent from those of the Treasury Dept and, chief whore, Snowjob.

[54anickel]

34. Eventual lunch bill may spell end to dollar's dominance

Amazing to see this type of article making it beyond the "gold-bug" sites these days. They are touching on the subject we've been discussing since I joined the SMW thread.

I see zones,
I see glittery zones,
and the fiat bucks bones
amongst those lovely zones

OK, maybe glittery will be replaced with basket-based. Something is going to change down the road.

http://business.timesonline.co.uk/printFriendly/0,,2020-37-1303426-9068,00.html

snip>

The trillion-dollar question is, of course, can America continue to dine out at the expense of its Asian neighbours. For optimists, the answer remains a resounding yes. This confidence is based on the belief that the US economy will continue to outstrip its rivals, preserving the attractiveness of its assets, while Asia’s central banks will continue to snap up dollars and Treasury bonds, backed by the unlimited finance of their own printing presses.

But just as Bretton Woods I collapsed in the early 1970s, a growing number of commentators believe that the present “Bretton Woods II” will ultimately collapse under the weight of the burgeoning imbalances it has institutionalised. As ever, what looked like a economic free lunch will emerge as a mirage.

No one can predict with certainty if or when the edifice will crumble, but it seems more and more inevitable that, sooner or later, it will. Already, a reviving Japan has abandoned efforts to restrain a rise in the yen, removing one key prop for the system. Perversely, Washington seems intent on kicking away another, persisting in its efforts to persuade Beijing to scrap its currency’s dollar peg and revalue the yuan.

Only last week, President Bush was on the telephone to Beijing, pressing his Chinese counterpart on the yuan issue. Yet, as Avinash Persaud, the leading currency economist, suggested in a speech last Thursday, a yuan revaluation, or even the first steps towards one, could prove the catalyst for collapse of “Bretton Woods II”, and a period of economic trauma for America.

[UpInArms]

41. you mean our disbelief is going mainstream?

What??

Only last week, President Bush was on the telephone to Beijing, pressing his Chinese counterpart on the yuan issue. Yet, as Avinash Persaud, the leading currency economist, suggested in a speech last Thursday, a yuan revaluation, or even the first steps towards one, could prove the catalyst for collapse of “Bretton Woods II”, and a period of economic trauma for America.

Did someone quit filling their koolaid prescription?

[KoKo]

44. Chimp and Kudlow are sweating bullets...CNBC might have to E-Bay auction

it's fancy, dancey new studio set and *gasp...* layoff or *gasp...* OUSOURCE some of it's hyping anchors.....

Sad days for the pin-striped suit, cigar smoking, waxed haired metro-sexuals who pedal their wine, hummers, exclusive vacation homes, and "Hellow Kitty" credit card wares over the airwaves. :hippie:

There's always a new scheme, though, as in the movie "The Graduate" One word:

"HEDGLETS." :D

[UpInArms]

49. just hope no one tries to pay through PayPal

:D

http://news.netcraft.com/archives/2004/10/12/redesign_cripples_paypal_service.html

excerpt:

Problems implementing a site redesign temporarily crippled some operations of Paypal the popular payment processing service. The performance problems, which began after a site update Thursday night, escalated Monday as the Paypal web site became unreachable. The site returned to service early today.

<snip>

Paypal's issues appear to be internal, and have had significant impact. "A technical problem with the PayPal platform has caused intermittent errors and availability for members attempting to use the PayPal site since Friday 10/8," eBay said in a notice to members. "Activities such as paying for ended eBay listings, using the Immediate Payment feature, using PayPal shipping functionality, and accessing account information have been intermittently available. Offline use of PayPal debit cards has also been impacted intermittently, and some members have been unable to use them."

Early Friday morning Paypal launched a redesign intended to present "a more intuitive layout." Instead, developers and site operators began reporting errors with Paypal's back-end systems, particularly its Instant Payment Notification (IPN) system, which handles communication between third-party web servers and the Paypal service.

Performance problems continued throughout the weekend, as Paypal and eBay continued to describe the problems as "intermittent" and reassured customers that the problems were being addressed. The system problems were being widely discussed on eBay community forums, as well as PayPal Developer and Slashdot. Meanwhile, the PayPal Sucks site experienced performance problems of its own as traffic surged. "We are getting hammered here from all those users upset with PayPal, so please be patient," the site told its readers. "The server's a bit slow today."

...more...

Slow??? Can't use that word for what it is today - try "still broken".

[54anickel]

50. SNARF! Spit take on the monitor again! n/t

[54anickel]

48. Did a quick search of Avinash Persaud

http://www.thisislondon.co.uk/news/business/articles/timid83280?source=

Life after the death of the dollar



His brother Raj also happens to be in the news - a "shrink"
http://www.hardbeatnews.com/details2277.htm

Hardbeatnews.com, LONDON, England, Tues. Oct. 12: A popular British-based Guyanese psychiatrist is applying the scientific methodology of the mind to the war in Iraq and his view from the couch is not positive.

Dr. Raj Persaud, known as the 'people's psychiatrist' in Britain, said recently, “If Blair and Bush are employing a psychiatrist then they are getting very bad advice on the medication they are taking' his professional opinion.”

snip>

The professor also said that terrorism is essentially about psychology and using it. And he added that US Attorney General, John Ashcroft had failed to realize this by 'crying wolf' over threats to the U.S. a total of seven times. By number seven, nobody believed him, said Persaud.

[UpInArms]

52. maybe Poppy still has some Halcyon left?

Dr. Raj Persaud, known as the 'people's psychiatrist' in Britain, said recently, “If Blair and Bush are employing a psychiatrist then they are getting very bad advice on the medication they are taking' his professional opinion.”

[54anickel]

70. This reminded me of past posts regarding ASEAN I and II and the

bond funds, their work toward a common currency. Anyway, check out this article I came across while looking for an update to that common currency trend. Seems most of the world is planning for a future where the US doesn't figure into the big picture.

http://times.hankooki.com/lpage/biz/200410/kt2004100517462511910.htm

ASEM Summit to Revitalize Cooperation, Communication

snip>

This was updated and strengthened in the EU Commission¡¯s new approach to Asia (CEC 2001). The new initiatives from the EU have been mainly due to the uninterrupted growing prospects of East Asian countries including the Chinese economy. The EU was eager to be deeply engaged in the rapidly emerging and most dynamic region in the world.

For the East Asian side, it began to recognize the need for diversity and breadth in its coverage of political and economic power, and Europe emerged as a plausible and convincing alternative to the United States.

In economic terms, ASEM already accounts for major economic weights in the world. ASEM countries accounted for 55.1 percent of total world trade and 45.5 percent of total GDP of the world, while they represented 12.5 percent of the world land size and 37.2 percent of the world population in 2002. Intra-regional trade in ASEM countries marked over 70 percent of world trade as well. ASEM has substantial implications for the Korean economy. ASEM countries accounted for 45.4 percent of Korea¡¯s total exports and 53.3 percent of its total imports in 2002. ASEM countries were the largest investors in terms of Korea¡¯s FDI.

All of these changing environments have provided an impetus to put forward for a new inter-regional process. The recognition of new initiatives for the two regions resulted in Singapore¡¯s proposal in 1994 for the establishment of a summit meeting of the two regions, and, at last, the inaugural ASEM Summit took place in Bangkok in March 1996.

This year¡¯s meeting is particularly important as it will welcome 13 new member countries of 10 new EU member states and three remaining ASEAN nations, including Cambodia, Laos and Burma. The former ASEM Summits contributed to the success of the dialogue by providing timely agendas for the peace and prosperity of the two regions and the world.

[UpInArms]

38. 11:28 EST numbers (oil drops 20 cents - stocks rise!)

Dow 10,044.29 -37.68 (-0.37%)
Nasdaq 1,916.83 -11.93 (-0.62%)
S&P 500 1,118.80 -5.59 (-0.50%)
10-Yr Bond 4.101% -0.032

NYSE Volume 473,977,000
Nasdaq Volume 577,177,000

11:00AM: Oil prices are now down 20 cents, but it hasn't done anything for stocks...the suggests that either the market expects oil to turn back higher, or that the sell-off today reflects anxiety about upcoming earnings reports as well as a settling near the center of the year's trading range...volume today is very light...declining issues have a big edge over advancing issues at this time...NYSE Adv/Dec 806/2086, Nasdaq Adv/Dec 618/2034

[ozymandius]

45. "more of the same" after twenty minutes

Dow 10,044.07 -37.90 (-0.38%)
Nasdaq 1,917.96 -10.80 (-0.56%)
S&P 500 1,119.04 -5.35 (-0.48%)
10-Yr Bond 4.102% -0.031
NYSE Volume 542,254,000
Nasdaq Volume 643,558,000

[54anickel]

42. Quarter of families struggle to pay their bills, study says

http://www.chron.com/cs/CDA/ssistory.mpl/business/2842952

snip>

These 9.2 million families include 20 million children. Their breadwinners work an average of 1.2 jobs. Most are in their prime working years. And 72 percent were born in the United States.

The study, funded by the Annie E. Casey, Ford and Rockefeller foundations, paints a portrait of janitors, cooks, cashiers and health care aides who barely make ends meet.

"One emergency — a broken down car, rent increase or serious illness — can disrupt the families' precarious equilibrium and plunge them into financial chaos," the report states.

The nonpartisan report spotlights a growing disparity between low-wage earners and the educated skilled workers that U.S. businesses increasingly demand.

more...

[54anickel]

43. Tax code rewrite gives out billions (more details)

http://www.azcentral.com/arizonarepublic/business/articles/1012corptaxes12.html

snip>

Supporters hailed its passage as critical to creating jobs while opponents called the measure a massive corporate giveaway. It includes tax breaks for Alaskan whalers, natural gas companies, the timber industry, Hollywood filmmakers and cruise-ship companies.

snip>

To encourage Hollywood moguls to make fewer films in inexpensive foreign locales, lawmakers included a $336 million tax break over five years to allow studios to expense up to $15 million in the first year of production of small and independent films made in the United States. It would give them more tax breaks if production occurs in low-income communities in Alabama, Arkansas, Illinois, Kentucky, Louisiana, Mississippi, Missouri or Tennessee.

In a provision proposed by Sens. Lisa Murkowski, R-Alaska, and Bob Graham, D-Fla., the measure would give cruise-ship companies a $28 million tax break by allowing them to delay filing certain expenses. Murkowski, who's in a tight race to return to the Senate, also won a provision to permit the deduction of charitable contributions that support native Alaskan whaling.

Archery-gear makers, fishing tackle-box makers and foreign gamblers all would benefit, too. The bill would give a $27 million tax break to encourage foreigners to gamble at U.S. horse and dog racetracks and $9 million in tax breaks to U.S. makers of bows and arrows.

One provision would reduce excise taxes from 10 percent to 3 percent on fishing tackle boxes. A major beneficiary is Plano Molding Co. of Illinois, which is headquartered in Republican House Speaker Dennis Hastert's district. The cost to taxpayers is $11 million, according to the budget watchdog group Taxpayers for Common Sense.

According to Taxpayers for Common Sense, the bill would also provide these tax breaks:

more...

[KoKo]

47. PlasticTackle Boxes? Who fishes anymore? Mercury...I thought they

were all made in China, anyway.... Who knows, though maybe it will keep some folks in Hastert's district from being layed off. It maybe isn't as bad as it sounds, some of this. It may be a desperate attempt to keep some businesses afloat..as awful as it all sounds with NASCAR and bow and arrow tax breaks...the Dems supposedly did modify it to an extent to close some other loopholes.

Who knows anymore? :eyes: On the face of it it sounds like a pork factory gone wild though.

[UpInArms]

46. New Amex index for U.S.-listed Chinese companies

http://cbs.marketwatch.com/news/newsfinder/pulseone.asp?dateid=38272.4787384259-823346176&siteID=mktw&scid=0&doctype=806&property=symb&value=&categories=&

BOSTON (CBS.MW) -- The American Stock Exchange on Tuesday began calculating the Halter USX China Index (HXC) of U.S. public companies that conduct a majority of their business in China. PowerShares Capital Management has filed an exchange-traded fund with the SEC on the index. On October 8 Barclays Global Investors introduced the first ETF, iShares FTSE/Xinhua China 25 Index (FXI) , tracking Chinese companies that trade on the Hong Kong Stock Exchange.

[54anickel]

53. Ewww, and that HXC is up by 36.49 right now, the FXI is down 0.63

http://cbs.marketwatch.com/tools/quotes/quotes.asp?symb=HXC&siteid=mktw

http://cbs.marketwatch.com/tools/quotes/quotes.asp?symb=FXI&siteid=mktw

[UpInArms]

55. Supreme Court nixes phone plea again

http://cbs.marketwatch.com/news/story.asp?guid=%7B77093A88%2D65DB%2D4A14%2D9EBD%2D5864FBE9C326%7D&siteid=mktw

WASHINGTON (CBS.MW) - The U.S. Supreme Court on Tuesday declined to review a lower-court decision that critics say will lead to less competition in the local phone market.

The decision, while not unexpected, represents the latest in a string of legal victories for the major local phone carriers known as the Baby Bells - Verizon (VZ: news, chart, profile), BellSouth (BLS: news, chart, profile), SBC Communications (SBC: news, chart, profile) and Qwest Communications (Q: news, chart, profile).

The Bells successfully fought to overturn rules by the Federal Communications Commission that required them to allow rivals use their local networks at government-set wholesale rates.

<snip>

The court rulings all but assure that wholesale prices will go up, perhaps substantially, within a few years. Bell rivals and consumer groups say that will squelch competition and keep prices inflated for local phone service.

For the near future, however, prices are unlikely to rise. The Bells have vowed not to raise wholesale access rates until the end of the year. Cable companies, meanwhile, are expanding into phone service and will add competitive pressure on the Bells.

...more...

Merry Christmas! Party On!

[54anickel]

56. US acquisitions 'disastrous' for UK companies (Suckers buying lemons?)

http://news.ft.com/cms/s/57cfe150-1aed-11d9-9fe4-00000e2511c8.html

The US has been a graveyard for acquisitive UK companies, losing shareholders vast sums of money on projects picked for "the wrong reasons", says new UK academic research.

Alan Gregory, professor of corporate finance at Exeter University, said: "The research shows on average that UK companies make disastrous acquisitions in the US."

Five-year returns from UK companies acquiring US companies between 1985 and 1994 underperformed stay-at-home companies by 27 per cent.

British acquisitions of EU companies, by comparison, have yielded slightly negative returns short-term but paid off over longer periods.

snip>

The Exeter team plans further research to explain why UK companies have done so badly in the US but Prof Gregory attributed some of it to companies overpaying for US opportunities and suffering from inadequate local knowledge.

more...

[UpInArms]

59. could these acquisitioned companies

have been using Enron-ed books?

Had they been gutted prior to acquisition?

So many questions....

[54anickel]

57. 401(k) Enrollment Declined in 2003

http://www.cfo.com/article.cfm/3282540/c_3282697?f=home_todayinfinance

One response by an increasing number of companies: automatic enrollment.

Stephen Taub, CFO.com
October 12, 2004

Despite a turnaround by the stock market after several years of losses, employees seem to be cooling toward 401(k) retirement plans.

Last year, 76 percent of eligible employees participated in their 401(k) plans, down from 80 percent the year before, according to an annual survey by the Profit Sharing/401(k) Council of America. The 2003 survey was based on 1,161 profit-sharing and 401(k) plans holding more than $412 billion in plan assets and include more than 3.4 million participants.

PSCA president David Wray attributed this development, in part, to the market's recent falloff and news of the mutual-fund trading scandal, according Dow Jones Newswires. "Young people who don't understand the system and are looking for a reason not to save are finding a lot of reasons," he added. Wray told the wire service that another possible reason for the falloff might be a change in survey methodology this year, to differentiate between pure 401(k) plans and those with a profit-sharing component.

Whatever the reasons, a decline in overall employee participation could have widespread ramifications for companies and for their more-highly-compensated employees.

snip>

It's also in interest of top management, personally, to convince lower-paid employees to participate, thanks to the so-called one-third/two-third ("top-heavy") rule. The standard requires that if 60 percent of a 401(k) plan's assets are in the accounts of highly compensated or key-employee participants, then the company must make a 3 percent contribution to all eligible employees in addition to the 401(k) match. The standard is more likely to be triggered at smaller companies because of turnover among lower-paid employees.

more...

[bain_sidhe]

68. "Young people who don't understand the system"...

Oh, they understand, alright. What they understand is that he stock market is a sucker's bet. The big boys make out like the bandits they are, using the "little people's" money. And they're NOT going to give the "big boys" any more of their money to play with. So, now the companies are making the confiscation... oops, I mean "enrollment" automatic and just taking it. :shaking head: It just never stops, does it?

[54anickel]

69. Well said bain_sidhe! n/t

[bain_sidhe]

87. Thank you :preening:

Of course, I shouldn't preen too much. I didn't learn this myself until we'd lost 30% of our retirement fund. :(

Oh, and read some Kevin Phillips! (my favorite Republican!)

[54anickel]

58. 2 Mavericks in Economics Awarded Nobel Prize

http://www.nytimes.com/2004/10/12/business/12nobel.html?oref=login&oref=login

An American and a Norwegian economist were awarded the Nobel in economics yesterday for their efforts to demonstrate that innovative technologies and shocks, like a sharp increase in oil prices, play a much greater role in causing booms and recessions than fluctuations in demand.

The $1.3 million Nobel Memorial Prize in Economic Science went to Edward C. Prescott, 63, and Finn E. Kydland, 60, for two papers they wrote between 1977 and 1982. Their findings contradicted Keynesian theory, which held that changes in demand, particularly consumer demand, played the greatest role in business cycles. The Prescott-Kydland papers "transformed academic research in economics'' and also transformed policy making, the Royal Swedish Academy of Sciences said in its citation.

Their first paper, which appeared when both were at Carnegie Mellon University in Pittsburgh, argued in effect that government officials should adhere to rules rather than resort to short-term policy shifts when circumstances change. If holding down inflation is the Federal Reserve's goal, for example, then the Fed should refrain from sharp cuts in interest rates during hard times, an approach that might result in too much stimulus and too much inflation later on. Better to resist changes in policy and suffer through some hardship if minimizing inflation makes people better off in the long run, their thesis maintained.

The two economists developed their second paper in the summer of 1980. Mr. Kydland had returned temporarily to his undergraduate alma mater, the Norwegian School of Economics and Business Administration in Bergen, and Mr. Prescott had gone there as a visiting professor with his wife and three children. Out of that collaboration came the view that supply shocks or new technology produce booms and busts, not changes in demand.

more...

[UpInArms]

60. 12:23 EST numbers and blather (markets "frightened" and "manic")

Dow 10,033.22 -48.75 (-0.48%)
Nasdaq 1,914.56 -14.20 (-0.74%)
S&P 500 1,117.65 -6.74 (-0.60%)
10-Yr Bond 4.094% -0.039

12:00PM: Stocks opened significantly lower, and it was largely ascribed to the fact that oil went over $54 a barrel...oil has subsequently fallen back under $53, however, and is down $0.44 on the day...yet, stocks haven't been able to recover even half of their early losses...this suggests that traders are suddenly concerned about the continuing high price of oil, or the upcoming earnings reports, or that there is simply a modest underlying nervousness short term...the earnings reports this morning were mixed...

Johnson & Johnson (JNJ 56.29 +0.93) had a good report, Merrill Lynch (MER 51.63 +0.63) an OK report, and State Street Corporate (STT 41.26 -2.59) a poor one...after the close today, Intel and Yahoo! report...there are no economic releases today...volume is light with only about 550 million shares traded on the NYSE...breadth is very poor, as declining issues lead advancing issues by about 2-to-1...bonds are up, while gold is down $8... NYSE Adv/Dec 1121/1905, Nasdaq Adv/Dec 985/1791

Analyst: $54 oil frightened investors
Mixed earnings also hurt stocks, Victory's Pears says

http://cbs.marketwatch.com/news/story.asp?guid=%7B5282541E%2DFA7A%2D49B5%2D85A9%2D4B893A1A2C75%7D&siteid=mktw

NEW YORK (CBS.MW) -- Record-high oil prices of $54 a barrel seem "to have frightened people a little bit," Brian Pears, head of equity trading at Victory Capital Management, said Tuesday as stocks traded lower.

"I think the tipping point today probably came because earnings have been mixed to maybe even a little bit downcast," Pears told CBS MarketWatch's Joe Mathieu.

Pears said a mixed earnings outlook, high oil prices, interest rates and a close election are all affecting the market.

"As long as those factors continue to be this mixed and that uncertain, I think it's likely that stocks will probably respond in the manic fashion to which we've grown accustomed," Pears said.

...more...

[54anickel]

61. General Motors to axe 12,000 jobs in Europe

http://news.ft.com/cms/s/37588278-1bb1-11d9-8af6-00000e2511c8.html

General Motors will axe almost one in five of its 62,000-strong European workforce to lower costs by about $500m a year, the US carmaker plans to announce on Thursday.

Germany will bear the brunt of the approximately 12,000 job losses, but the company will stop short of immediate factory closures, GM sources said.

The decision to cut more than 6,000 of the 32,000 GM jobs in Germany, home of its Adam Opel brand, will come as a further blow to German trade unions already struggling with demands from other manufacturers for pay freezes and longer hours. Two of the company's biggest factories will remain under threat, with a decision due next year on whether to build the new Vectra and Saab 9-3 mid-sized cars in Rüsselsheim, near Frankfurt, or at Saab's Trollhättan base in Sweden.

Unions in both countries fear the factory that does not get the cars will eventually close something the company denies.

more...

[UpInArms]

62. 12:43 EST numbers and blather (using "r" word)

Dow 10,037.43 -44.54 (-0.44%)
Nasdaq 1,914.44 -14.32 (-0.74%)
S&P 500 1,117.78 -6.61 (-0.59%)
10-Yr Bond 4.088% -0.045

NYSE Volume 668,249,000
Nasdaq Volume 783,320,000

12:30PM: Oil is back in into positive territory, and stocks have reacted accordingly...oil is well off its highs, but the S&P is back near its lows of the day...the high oil prices has even brought back the "r" word for some journalists, but there is little sign of a recession in sight...in fact, third quarter real GDP to be released October 29 is expected to rise at a 4.5% annual rate, up from the "soft" 3.3% rate in the second quarter...even that rate of increase, however, was right on the average rate of growth for the past 10 years...

so while high oil prices are clearly a negative, the worst fears have yet to show through in the data...NYSE Adv/Dec 1180/1924, Nasdaq Adv/Dec 972/1887

[KoKo]

63. As Ozy mentioned earlier...who are "other economists" and we have

"some journalists." And why are "some journalists" wrong, just because this "nameless blatherer" says they are? :crazy:

Reminds me of "White House Official," "High Level Pentagon Officer," "White House Cabinet Member," "Prominent Election Official."

[54anickel]

65. I'd hide my identity too, spouting such complete and utter BS n/t

[KoKo]

85. ROFL!

:D

[54anickel]

64. The frantic search for a silver lining

http://moneycentral.msn.com/content/P92952.asp?Printer

Over the past several months, we have witnessed an unanticipated stretch (or "blip," in Fed parlance) of disappointing micro and macro news. But no matter. Each and every data point has been deemed to be the very last one -- even as the disappointing news continues to pile up.

And, in a variation of the good-news-is-just-around-the-corner bet, some equity speculators are afraid that other people will think things are going to get better, so they're buying stocks now because the other people who also might think that are buying stocks -- and everyone is afraid of "getting left behind."

You can chalk it up to the noise of 8,000 mutual funds and 8,000 hedge funds operating with other people's money -- and all voting for the same thing at the same time, based on recent motion rather than reasonable expectations. In any case, one of these days, and sooner, rather than later, I believe that folks' ability to rationalize all this is going to snap.

Dude, no $30 crude
To see this contorted exercise at work, take a look at oil. Almost no one anticipated $50 crude, yet every time crude goes up, folks appear convinced that this must be the last day of its rally. And we see transportation stocks surging along with oil. (Last June, oil was $35ish and the transportation index was 2800ish. The former has rallied 43% and the latter 20%.) Even if crude were to be done going up, it appears unlikely that it will get to the promised land of the low $30s (that most bulls envision) any time soon.

more...

[54anickel]

66. Push for holy war an issue left in silence (321gold link)

http://www.sptimes.com/2004/10/10/Columns/Push_for_holy_war_an_.shtml

TALLAHASSEE - One of the most urgent but least discussed issues of the presidential campaign is the extreme religious agenda that appears to be distorting U.S. policy toward Israel, to the peril of both nations.

The force in question is the Christian fundamentalist movement most commonly known as premillennialism. It prophesies that Jesus will return and true believers will be whisked bodily to heaven, minus their clothes and jewelery, upon the fulfillment of certain conditions familiar to readers of the popular Left Behind books. These include the creation of the state of Israel, Israel's occupation of all of its "biblical lands," and the construction of a Third Temple on the Temple Mount, currently the site of the Dome of the Rock and the Al-Aqsa mosques.

The first is fact. The second goes so far beyond the disputed West Bank and Gaza that not even Israel aspires to it. The third, which contemplates the desecration of one of Islam's holiest places, would set off a nuclear war (think Pakistan and Iran) with infinitely more certainty than anything predicted in the Book of Revelation. A simple visit by Ariel Sharon to the Temple Mount four years ago was enough to bring on the current intifada that by one estimate has claimed nearly 4,000 lives and made Sharon prime minister.

But to the millennialists, a holy war in the Middle East would be good news, not bad, because it would be the war leading to Armageddon. As for the Iraqi war, it's a prophecy fulfilled.

more...

[54anickel]

67. Snow Job

http://www.gold-eagle.com/editorials_04/rostenko101104.html

Stocks fell last week as the S&P500 and Nasdaq turned around from new multi-month highs posted mid-week. The dollar reversed earlier gains to finish the week lower while gold rallied to within striking distance of a new bull market high. Crude oil futures exceeded $53 per barrel, taking great sport in exposing most analysts as the unjustifiably overpaid ninnies that most of them are.

And speaking of oil, in the words of the fine folk at Reuter's Treasury Secretary Snow predicted that oil prices are "set to go down." Clearly we're nowhere near a top and if there's one thing that Snow's statement makes abundantly obvious it's that oil prices are in fact set to go higher.

Uttering still more inanities about the oil situation, Snow also mentioned that the high price of oil is "creating headwinds for the otherwise very strong economy." That would be the VERY strong economy that is down 900,000 jobs since GW took office. And yes, it's also the very same VERY strong economy that has put an increase of 2.2% of real wages into the consumer's pocket, barely 20% of that earned in the previous six recoveries (on average). That would also be the same VERY strong economy that is in the midst of the weakest recovery since before WW2.

But the average dingbat has nary the slightest clue about anything that happened prior to last Friday's episode of Oprah, so the Snow job continues, uninterrupted, while everyone gets into a big ballyhoo about which of the two monkeys will look best dressed in a 3-piece suit for the next four years.

more...

[54anickel]

71. That Funny Little Feeling

http://www.gold-eagle.com/editorials_04/hoy100804.html

I feel that this is a very timely article simply because the elections are winding down to an end and a whole new party may be about to begin. For the past several months I have had an uneasiness that just never goes away. This uneasiness is centered in the back of my mind and I just can't seem to kick it. I think I know exactly what it means, in the end, but on the interim I have no idea of the timing, games and stupidity that can happen to postpone the inevitable. The most important lesson I have learned over the last twenty-five years is patience and I have still yet to master the art of patience.

I believe the "esf boyz" have been very hard at work for a very long time. I think that the web they have been weaving has trapped more people than we can possibly imagine. The most ironic point to this is the fact that it may not be finished yet. I believe a very small possibility exists that the spinsters could talk themselves into one more rally in the traditional markets. I think the odds are against them but I think the possibility exists just because I give the market credit for wanting to devour every morsel of food on its plate as well as all leftovers; it's the leftovers we are talking about getting into the game now. I think another rally would be all it takes to suck all available outside funds into the market, for the final burial. It would be like the NASDAQ hitting 5000 back in 2000. I believe that this up movement would be no-where near as powerful as the movement of the NASDAQ in reaching 5000. Whether this happens or not is irrelevant to me because I have no intention of even thinking about being long the traditional market. If the market does rally I believe that this may be the last opportunity to sell at prices we may not see for a very long time. Again, I mention NASDAQ at 5000 for a reason.

snip>

That funny little feeling is now reminding me that we are now in the month of October and historically there has been some very ugly things happen in the month of October. This time around could be no exception and the way the table is set I think an October or November massacre could be in order. The only reasons I believe things have not gotten real ugly so far is the fact that the incumbents would not be happy with the outcome. There is no question in my mind that the boyz have done everything in their power, for quite some time, to make sure that all economic data show, what they feel to be, improvements in the economy.

Whether or not they are successful through the elections makes no difference to me as I believe that anytime one can exit a stock position within or buy within 20% from the ultimate top or the absolute bottom an average investor has done well and will be happy over time; the 60% in the middle is a pretty good return. Unfortunately most investors usually get most excited when the stocks they own are being bought at or sold at the 20% range on the wrong end of the totem pole. It gets back to that emotion thing that I have talked so much about in the past. Do not be fooled by the "spinmeisters" when they try to suck your hard earned capital into the markets after a small correction has ensued. I can clearly remember, and still have, a release from the brokerage firm that I worked for back in the past that sent all its brokers a release after stocks had pulled back by 25% pounding the table for their brokers to step up and take advantage of the weakness in their favorite stocks. I will never forget the wording, it goes like this, "hock your family jewels and margin your accounts and double your positions." Their two favorite companies were $16 and $18 per share respectively. By the time it was all over the $18 stock was broke and gone to the world and the $16 stock was bought out at $6. The margin calls never ceased until positions were sold out. The same thing will happen all over again as the market breaks down. For traditional investments and investors there is a time to make money and a time to take care of your money; for traditional investors, now is a time to take very good care of your money. There is absolutely nothing wrong with a 1%- 1.5% return when all other traditional returns are negative. For those of you who believe that the metals and natural resources are the place to be; you will be handsomely rewarded, in my opinion, when the true picture of what lies ahead continues to unfold.

Anyone should be able to understand that rising interest rates and rising oil prices are going to have severe negative effects on our economy over the long term....

more...

[bain_sidhe]

86. "nothing wrong with a 1%- 1.5% return"

Sez Hoy:

There is absolutely nothing wrong with a 1%- 1.5% return when all other traditional returns are negative.

Translated: Something is better than nothing.

Maybe an even better translation: A 1.5% gain beats a 20% loss by 21.5%

[54anickel]

72. 2:14 and creeping up on low volume

Dow 10,052.62 -29.35 (-0.29%)
Nasdaq 1,918.32 -10.44 (-0.54%)
S&P 500 1,119.35 -5.04 (-0.45%)
10-yr Bond 4.090% -0.043
30-yr Bond 4.871% -0.035
NYSE Volume 865,327,000
Nasdaq Volume 988,574,000

2:05PM: Modest uptrend since mid-morning continues on low volume...trend looks like it will lead to a less than 1.3 billion share day on the NYSE, with the Nasdaq not doing much better...crude is now down $0.29 on the day, as its trading session winds down...NYSE Adv/Dec 1240/1947, Nasdaq Adv/Dec 1021/1900
1:30PM: It's almost as if the market is in a holding pattern now...oil prices are down on the day again, yet stocks have barely reacted...the SOX semiconductor index is down 2.1% on the day ahead of the Intel earnings report...guidance from Intel on fourth quarter demand could have a huge impact on tech stocks...Broadcom (BRCM 28.14 -0.73) is also hurting the index...CIBC lowered earnings estimates for the semiconductor firm...NYSE Adv/Dec 1155/2003, Nasdaq Adv/Dec 971/1930

12:55PM: Market sentiment remains poor as there is little sign of any rally attempt even when oil prices dip...technology stocks are the worst hit today, as semiconductors and storage device makers are down sharply, but auto and gold stocks are also off sharply...the widespread nature of the weakness today is reflected in the fact that there are no strong sectors...NYSE Adv/Dec 1142/1988, Nasdaq Adv/Dec 949/1925

Advances & Declines
NYSE Nasdaq
Advances 1216 (36%) 1052 (33%)
Declines 1984 (59%) 1893 (60%)
Unchanged 159 (4%) 182 (5%)

--------------------------------------------------------------------------------

Up Vol* 164 (20%) 293 (30%)
Down Vol* 648 (79%) 644 (67%)
Unch. Vol* 6 (0%) 14 (1%)

--------------------------------------------------------------------------------

New Hi's 52 59
New Lo's 38 49

[UpInArms]

73. 2:34 EST and getting perky

Dow 10,068.09 -13.88 (-0.14%)
Nasdaq 1,920.42 -8.34 (-0.43%)
S&P 500 1,120.66 -3.73 (-0.33%)
10-Yr Bond 4.089% -0.044

2:30PM: Oil is now down almost $1 a barrel, and the SOX semiconductor index has stabilized the past few hours, allowing the modest updrift in the indices to continue...there are no economic releases tomorrow or Wednesday, and nothing big on Thursday...but Friday brings PPI, Retail Sales, Industrial Production, the Michigan Sentiment Index, and the NY Empire State Index all within an hour...NYSE Adv/Dec 1233/1987, Nasdaq Adv/Dec 1082/1880

[54anickel]

75. Wow, oil down a buck? Seems even better than pixie dust. ;-)

[UpInArms]

76. 2:46 EST and pixie dust appears

Dow 10,080.57 -1.40 (-0.01%)
Nasdaq 1,923.43 -5.33 (-0.28%)
S&P 500 1,122.11 -2.28 (-0.20%)
10-Yr Bond 4.100% -0.033

[UpInArms]

77. 2:52 EST and DOW in the black - happy happy joy joy dance

Dow 10,088.46 +6.49 (+0.06%)
Nasdaq 1,925.79 -2.97 (-0.15%)
S&P 500 1,123.10 -1.29 (-0.11%)
10-Yr Bond 4.100% -0.033

Great showing of pixie dust!

[54anickel]

80. Hmm, is 10,080 a significant number for the day? Seems to be the

pixie dust target for the close.

[54anickel]

74. Oil casts long shadow as bull market enters its third year (Huh, bull?)

http://www.canada.com/ottawa/ottawacitizen/news/business/story.html?id=1c8bbfac-1a9a-447a-a007-807c5dd7efbd

October has traditionally been a nervous month for stock market investors, and true to form, this month has traders on edge, Meg Richards writes.

Meg Richards
The Associated Press


October 12, 2004

NEW YORK - The bull market is entering its third year this week, but it might not be a happy birthday for investors.

Rising interest rates and decelerating earnings are likely to weigh heavily on stocks, and lofty energy prices could stifle whatever gains are left in the months ahead.

Oct. 9, 2002, was a gruesome day on Wall Street, with the major indexes striking five- and six-year lows on bearish brokerage reports. But it also proved to be a turning point for the Standard & Poor's 500. And seven months later when that index had risen 20 per cent -- the classic definition of a bull market -- economists at S&P declared the bear market over and dated the start of the bull market to that fateful October day.

On average, bull markets last about 4 1/2 years, but most turn flat or lower by the 36-month mark, according to research by S&P. Four of the 10 bull markets we've seen since 1942 crumbled by the end of their third year.

How is the market doing this time? During the first and second years of the current bull market, the S&P 500 registered gains of 34 per cent and eight per cent, slightly lower than average, by historical standards. If the trend continues, this year will see substantially lower gains -- three per cent or less.

more...

[ozymandius]

78. huh?

Bull market? Has anyone checked the historical moving averages for 1998 to 1999?

I found this at Yahoo. We are still averaging what the Dow reflected at mid-1999.

28-Sep-99 10,300.51 10,386.03 10,055.17 10,275.53 8,854,000 10,275.53
27-Sep-99 10,279.33 10,498.74 10,201.76 10,303.39 7,806,000 10,303.39
24-Sep-99 10,311.94 10,428.14 10,128.63 10,279.33 8,728,000 10,279.33





plus I found this.... (how little changes over time)

Financial Crisis

The countries that are now openly propping up their stock markets are Malaysia, Taiwan, Hong Kong, Singapore, and Japan. In some cases they are buying futures and in other cases they are purchasing shares directly. So despite the improved perceptions, many of the recent rallies around the globe are not based on improved economic fundamentals. There is simply very little evidence of economic recovery in any of the worst hit countries. For that matter, the economies of some of the more vulnerable countries like Brazil are looking a little worse. This period reminds me a lot of the spring of 1998. Investors were very calm at that time too. Wall St. told us that the financial crisis was over and stocks managed to rally to new highs. I warned back then that I thought the celebration was a bit premature and overdone. I'd like to issue the same warning again. Until some real evidence of physical economic improvement is available, the assumption that the global crisis is over seems very premature. There may be some bargains in the worst hit areas, but that's a lot different than thinking the financial system is out of the woods. Virtually every article I read about the economic situation in Asia indicates that things are still deteriorating. More importantly, it's tough for me to believe that central bankers can print our way back to a permanent prosperity.

http://www.gold-eagle.com/gold_digest/crimi120598.html

[54anickel]

79. Thanks Ozy, thought I was loosing it and missed something the last

couple of years.

Funny how the game changes. The objective to win seems to have changed - from having a healthy, productive, occasionally cleansed business cycle based economy to one of avoiding the pain at any cost for the longest period of time. There are no rules. The last economy standing, no matter how weak-kneed wins!

[ozymandius]

82. I may have mentioned this before.

My friend at AG Edwards said that we are trading around 1998 levels. The markets have been pulling every gag in the playbook to keep everything looking okay. Then he says that we will not see any improvement until we have a president and a Congress that demands competent inforcement of the rules at the SEC.

His mention of those numbers and the comments you posted led me to find those averages. Lo and behold!

We can count on the broadcast new's prostitutes and cattle callers to cheer when the market jumps over 1%. Selective reportage of events is a given. I recall just such an event when CNN's money page banner headline shouted "The Bull Is Back!" when the market went nuts for three days last Spring - leading into yet another sucker rally. But kindly regard the subdued tones when the market finishes poorly.

But hey - there's always hope. No news story can be complete without it. Whether killer tornado, wildfire, mudslide, flash flood or the debilitating shitstorm of an Enron style collapse, there's always hope that whatever never happens again. Hope is the plan.

Like there's hope that, someday, I'll best the dealer at his game of three card monty.

EDIT: clarity

[54anickel]

89. Cattle-callers, leading them to the meat market. It's no longer just

sheep being fleeced is it?

[KoKo]

90. Glad for the reality check here "54, Ozy" That report seemed bizarre and

especially since it was from a Canadian...Are they ALL in it together?

Thanks for the numbers and reports from A.G. Edwards...

It's hard to keep one's senses today.

[nolabels]

91. This would explain a lot about the jobless recovery

http://www.armenianteens.com/funnypics.php

[bain_sidhe]

84. "Bull"?? Oh, it's bull alright! But

I think "steer" market would be more appropriate. In more ways than one.

(For those who aren't familiar with farm-speak, a steer is a male that has been... er... altered.) Or, to eschew obfuscation, I'm saying this bull's got no balls. (*edit: on the other hand, I have to admit, it's got a lot of gall!)

The other meaning of "steer" is, of course, a reference to the spinmeisters shouting (as the post from 54aNickel noted above) PUT MORE MONEY IN THE MARKET!!!

(And conveniently forgetting to add the rest of it... "so we (the "esf boyz") can abscond with it.")

[ozymandius]

81. markets close in red

Dow 10,077.77 -4.20 (-0.04%)
Nasdaq 1,925.17 -3.59 (-0.19%)
S&P 500 1,121.83 -2.56 (-0.23%)
10-Yr Bond 4.102% -0.031
NYSE Volume 1,299,029,000
Nasdaq Volume 1,467,283,000

[ozymandius]

83. U.S. stocks get a lift after oil closes below $53

NEW YORK (CBS.MW) - U.S. stocks traded mixed Tuesday as blue chips turned higher and the Nasdaq trimmed losses after crude-oil prices retreated smartly from record highs set earlier in the session.

-cut-

In the commodities market, gold futures tumbled to a one-week low on renewed strength in the U.S. dollar. December gold ended down $6.80 at $416.60 an ounce on the New York Mercantile Exchange after dropping to an earlier low of $414.50 an ounce.

The dollar was up 0.6 percent versus the euro at $1.2311 euro and up 0.4 percent versus the Japanese yen at 109.77 yen.

In the bond market, Treasurys gained as the surge in oil prices raised concerns about the health of the U.S. economy. The benchmark 10-year Treasury note was up 7/32 at 101 4/32 to yield 4.09 percent.

http://biz.yahoo.com/cbsm-top/041012/d044d64e133a494b347909cfa11583b2_1.html

[UpInArms]

88. Intel reports will have to be deciphered also

http://cbs.marketwatch.com/news/newsfinder/pulseone.asp?dateid=38272.6807523148-823368907&siteID=mktw&scid=0&doctype=806&

Intel Q3 earns 30c, sales $8.47 bln

SAN FRANCISCO (CBS.MW) -- Intel's (INTC) third-quarter net income of 30 cents a share and sales of $8.47 billion surpassed Wall Street's reduced financial expectations for earnings of 27 cents a share and sales of $8.44 billion. The chipmaker issued a fourth-quarter sales range of between $8.6 billion and $9.2 billion compared with analyst expectations for sales of $9 billion.

4:22pm 10/12/04 INTEL: INVENTORY ADJUSTMENTS, PC DEMAND HURT Q3 GROWTH

4:19pm 10/12/04 INTEL SEES Q4 DEPRECIATION BETWEEN $1.1B-$1.2B

4:19pm 10/12/04 INTEL SEES Q4 R&D COSTS BETWEEN $2.4B-$2.5B

4:19pm 10/12/04 INTEL 2004 CAPEX RANGE UNCHANGED AT $3.6B-$4B

4:17pm 10/12/04 INTEL EXPECTS Q4 REV $8.6B-$9.2B

4:18pm 10/12/04 INTEL EXPECTS Q4 GROS MARGIN APPROX 56%

4:18pm 10/12/04 INTEL Q4 FIRST CALL REV EST $9.07B

4:17pm 10/12/04 INTEL Q3 EARNS OF 30C A SHARE INCLUDE 3.6C TAX GAIN

[54anickel]

92. There's a cause for celebration!!! Beat a lowered expectation - ha! Yep,

just keep lowerin' the bar - that's the ticket!

[54anickel]

93. Splash of blather for that close

4:05PM : A day subject to various interpretations...the stock indices all ended lower, but sentiment was far from the palpable, pervasive pessimism that existed early this morning...ahead of the open, oil prices went through $54 a barrell and stock futures tanked...sentiment was so bad that there were even prominent articles suggestting the economy might enter recession...this despite the fact that third quarter real GDP data due October 29 is likely to show a growth rate of 4.5% or more...then mid-morning, oil prices started to ease and stocks came back...
oil closed down $1.17 at $52.17 a barrell, but stocks still ended lower...so, either the market sentiment was so poor that a drop in oil prices was not enough to turn attitudes around, or the S&P simply closed with a small loss that erased yesterday's gain, and the Dow and the Nasdaq are for the week...no big deal...Johnson & Johnson (JNJ 56.82 -1.46) had an excellent earnings report, but State Street Corp. (STT 41.16 -2.69) had a lousy one...now, the market is looking to Intel and Yahoo! reports after the close...volume was on the light side yet again, while declining issues were well ahead of advancing issues...NYSE Adv/Dec 1526/1760, Nasdaq Adv/Dec 1285/1758

3:00PM : The extreme pessimism of this morning has completely faded as the Dow turns green and the Nasdaq and S&P approach unchanged...oil closed down $1.17 a barrel at $52.17...the was of significant help...also, while the market may be anxious about upcoming earnings, there is also the recognition that aggregate operating earnings for the S&P 500 will increase a very healthy 15% or more...NYSE Adv/Dec 1401/1835, Nasdaq Adv/Dec 1245/1743

Advances & Declines
NYSE Nasdaq
Advances 1558 (45%) 1315 (40%)
Declines 1750 (50%) 1751 (54%)
Unchanged 130 (3%) 165 (5%)

--------------------------------------------------------------------------------

Up Vol* 437 (33%) 619 (40%)
Down Vol* 872 (65%) 853 (56%)
Unch. Vol* 15 (1%) 43 (2%)

--------------------------------------------------------------------------------

New Hi's 91 76
New Lo's 39 55