STOCK MARKET WATCH, Thursday 5 May

[ozymandius]

Thursday May 5, 2005

COUNTING THE DAYS
DAYS REMAINING IN THE * REGIME 3 YEARS, 261 DAYS
DAYS SINCE DEMOCRACY DIED (12/12/00) 4 YEARS, 143 DAYS
WHERE'S OSAMA BIN-LADEN? 3 YEARS, 200 DAYS
DAYS SINCE ENRON COLLAPSE = 1257
Number of Enron Execs in handcuffs = 19
ENRON EXECS CONVICTED = 2
Other Arrests of Execs = 54


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




AT THE CLOSING BELL WHEN BUSH TOOK OFFICE on January 22, 2001
Dow - 10,578.24
Nasdaq - 2,757.91
S&P 500 - 1,342.90

AT THE CLOSING BELL ON May 4, 2005

Dow...10,384.64 +127.69 (+1.24%)
Nasdaq... 1,962.23 +29.16 (+1.51%)
S&P 500... 1,175.65 +14.48 (+1.25%)
10-Yr Bond... 4.19% UNCH (UNCH)
Gold future... 430.00 +2.30 (+0.53%)

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

[ozymandius]

1. WrapUp by Mike Hartman

TREASURY AUCTIONS IN THE SPOTLIGHT

The biggest news of the day came from the U.S. Treasury Department with their announcement they are considering new offerings of the 30-year Treasury Bond. The Treasury will give their final decision for the 30-year bond on August 3rd when they announce the auction details for the third quarter refunding to take place on August 9, 10 and 11. It is expected the government will conduct the first sales of the bonds in February 2006. Timothy Bitsberger of the U.S. Treasury said, “We are doing this because times have changed, and our debt portfolio has changed.” Simply put, we have more debt and less time to pay it back.

When the long-bond was discontinued in October 2001 it was suggested the government was operating with a budget surplus, and they were in fact out in the open market buying back 30-year debt. Since then, tax receipts have dried up and government spending has increased, causing record deficits. Times have changed significantly since 2001 in that our debt has become much bigger than expected and the maturity of the debt has been shortening. With increased issuance of two-year, three-year and five-year debt, we have to pay back the money sooner than when the government was issuing 30-year debt. To pay back the money that was previously borrowed, the government simply borrows enough today to pay back the old debts plus enough cash to keep the government running. With the recent massive issuance of 2-year and 3-year debt, the government is facing “rollover” in 2008…massive debts coming due that will need to be refinanced.

-cut-

To get the market ready to receive Treasuries next week it is important for investors to know the stock market is under pressure so stay away, the commodity boom is coming to an end so don’t go there, and of course precious metals are no place to invest with a slowing economy and a good scare of deflation around the corner. Last week I got upset because I felt strongly that gold and silver were being capped in price. I still believe it’s true…but I’m also speculating the powers that be will stop leaning on gold and silver once the Treasury auctions are out of the way. With the U.S. dollar notably lower today (84.01 on the USDX, down 0.45) gold was poised to move higher, but it remained in lock-down all through today’s session. After firm overseas buying, gold came into New York at $428.80 spot, and saw a low of $427.80 and a high of $429.20…a range for the day of a measly $1.40. I liken that kind of containment to being in a vice-grip, clamping down tighter and tighter.

-cut-

Things are definitely changing, especially with higher debt levels than our Treasury estimated a few years ago along with threats of higher inflation. By releasing the long end of the curve, they are probably hoping to take some of the speculative excesses out of the real estate market and slow down the inflationary forces of higher commodity prices. The direct impact of today’s announcement and the Fed’s comments from yesterday are working to steepen the yield curve. Short-term rates are moving lower with the expectation the Fed will stop the rate increases sooner rather than going too far. On the long end, bond prices are going lower with the threat of new supply, pushing long-term rates higher. It will be interesting to see the impact this will have on mortgage rates in the next few weeks.

more...

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

[ozymandius]

2. Stocks Set to Open Mixed Ahead of Data

-Stocks Are Set to Open Mixed As Investors Remain Cautious Ahead of 1Q Productivity Data-

-cut-

In U.S. corporate news, major U.S. retailers report April sales Thursday, and analysts are looking for tepid numbers thanks to continued weakness in the job market and surging gasoline prices. Analysts already had expected April sales to be somewhat muted because Easter fell earlier this year, shifting sales into March. But April has been even weaker than many analysts' modest expectations amid an uncertain economy and weather that has remained persistently cool throughout much of the U.S., stifling sales of spring merchandise.

As the parent company of Airbus moves toward selecting a site for a possible major new U.S. operation, Northrop Grumman is wrestling over whether to team up with the European company to battle Boeing Co. for a multibillion-dollar contract to supply aerial-refueling planes to the Pentagon, The Wall Street Journal reported Thursday. Northrop's chairman met with executives at Airbus parent European Aeronautic Defence & Space (5730.FR) in France this week to discuss a possible venture. And Northrop participated in selecting the short list of four potential U.S. factory sites that EADS is expected to announce Thursday, people familiar with the situation said.

After the bell Wednesday, International Business Machines Corp. unveiled plans to reduce its work force by 10,000 to 13,000 employees, in an effort to improve efficiencies, strengthen client-facing operations and capture opportunities in high-growth markets. As a result of the restructuring plans, IBM expects to record an estimated pretax charge of $1.3 billion to $1.7 billion in the second quarter.

more...

http://biz.yahoo.com/ap/050505/wall_street.html?.v=5

[ozymandius]

3. early morning chatter

6:55AM Possible acquisition targets with launch of Microsoft's Longhorn :On Bloomberg TV, the head of research at Louis Capital Mkts gave his take on some possible acquisition targets in the software space. He calls Microsoft's Longhorn launch as the biggest thing for MSFT in 10 years. He cites possible acquisition targets in the business intel space: Cognos (COGN) and Hyperion (HYSL). Oracle and IBM were named as possible buyers... In the gaming space with two new consoles soon to debut (PS3 and Xbox2), large cos like Disney, Viacom, Time Warner could get interested in the gaming space which is now as a big a market as the movie business. Possible acquisition candidates: Activision (ATVI) and Take Two (TTWO)... The Longhorn launch could be a threat to Novell (NOVL). He says we're probably going to see more talk of private equity groups interested in Sun Micro (SUNW).

[UpInArms]

4. daily dollar watch

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

Last trade 83.91 Change -0.09 (-0.11%)

Dollar Extends Sell-Off As Fed Pigeon Holes Itself

http://www.dailyfx.com/index.php?option=com_content&task=view&id=969&Itemid=39

US Dollar

The US dollar continued to weaken after yesterday's FOMC meeting. The shock of the mysterious missing phrase still hangs over the markets and we probably wont see any respite until Friday's non-farm payrolls report. Of course, it will take a strong number for us to feel the wind blow against the dollar's back once again. As we mentioned yesterday, the measured phrase is set to disappear soon since US interest rates is only a hair short of the inflation rate. Today, we want to elaborate further and warn of events to come. Even though the Fed is bound to drop the phrase measured, that does not necessarily mean that they want to increase the pace of tightening. The Fed has pigeon-holed itself by giving the market a phrase to focus on and they are trying their best to back off from the phrase without sending shockwaves to the market. For this very reason, they chose to upgrade nearly every word in their March statement while still leaving in the words measured and accommodative. If they stop raising rates, both of these phrases would also have to disappear. For the past few months we have been saying that the Fed will stop raising rates once they reach the "neutral" level, which doesn't spur growth or inflation. However, what value represents the neutral rate still remains up for discussion. The market estimates that rate to be between 3.5%-4.5%. Pimco's Gross had already expressed his opinion that the Fed will stop at 3.5%. So far, data has been mixed with a bearish bias, which supports Gross' arguments, but whether this holds true or not will continue to hinge upon future economic data. That is why the market will center its focus on Friday's NFPs, which is one of the most important economic releases on the US calendar.

Euro

The European Central Bank left interest rates unchanged once again at 2 percent, confirming their status as the longest central bank to keep rates on hold amongst the countries that we follow. Recent speculation surrounding a possible rate cut by the ECB made the post-meeting press conference conducted by Trichet particularly interesting. Trichet essentially eradicated any expectations of a move by the ECB in the near future. For those calling for a rate hike by the central bank later this year as a result of rising inflationary pressures, Trichet said that there are no signs of underlying inflation pressures and that inflation should stay at current levels over the next few months. For those calling for a rate cut, Trichet said explicitly that cutting interest rates is not an option for the ECB. So basically this leaves us right back at square one. In terms of economic data released today, service sector growth slowed in the month of April, but did not dip into contractionary territory like the manufacturing sector. Retail sales were also slightly encouraging, coming in stronger against expectations, which had forecasted a decline.

<snip>

Japanese Yen

Japanese markets were closed once again last night, but that didn't stop the USDJPY from seeing some intra-day volatility thanks to more talk of Chinese revaluation. China seems pretty frustrated with the recent speculation surrounding the Yuan, especially since NDF forwards have been widening significantly as of late. The yen sold off against the dollar today as Chinese Finance Minster Jin Renqing said that, "too much speculation makes it difficult to implement reform of the exchange rate system." Even so though, this hasn't stopped economists from predicting a revaluation to occur as early as two weeks from now. This time frame, proposed by Goldman Sachs is shocking to us, but Goldman argues that May 18 would be a very convenient time for China to announce a shift in their decade old peg. May 18 is the date that China is scheduled to increase the number of currencies that its member banks trade from four to twelve. According to Bloomberg, Morgan Stanley projects a move in June following the G7 meeting while HSBC expects China to delay a move to 2006.

...more...

Dollar Prepares For Countermove

http://www.dailyfx.com/index.php?option=com_content&task=view&id=977&Itemid=39

EUR/USD - Euro remained in a tight trading range after staging a surprise attack against the dollar positions yesterday. As the euro bulls continue to maintain a foot hold on the territory previously held by the greenback, both majors continue to rely on the defenses established during the previous session. Euro continues to encounter a minor resistance at 1.2892, a 61.8 Fib of the Feb-Mar euro rally.

An intermediate resistance remains intact at 1.3059, an Apr 1 daily spike high, with major support at 1.3107, a 50.0 Fib of the 1.2730-1.3481 euro rally, continuing to defend greenback held territory. Euro bulls maintained their defenses with minor support at 1.2892, a 78.6 fib of the Feb-Mar euro rally. An intermediate support remains intact at 1.2825, May 3 daily low, with major support at 1.2775, an Apr 15 daily low, currently defending the 1.2730, a 2005 low and a gateway toward the 1.2481, a 61.8 Fib of the 1.1760-1.3667 euro rally. Oscillators remain mixed, with Stochastic neutral on the daily chart at 36.1 and overbought at 81.88 on the dealer (4HR) chart. RSI remains neutral on both the daily chart at 47.36 and on the 4-hour chart at 49.47. MACD is about to make a bearish crossover below the zero line on the daily chart and is traveling toward the zero line on the dealer (4HR) charts.

<snip>

USD/JPY - Yen continued to advance deeper into the dollar held territory forcing the greenback bulls to relinquish more of their territory as yen pushed closer toward the 104.00 level. As yen continues to probe dollar defenses, greenback will rely on a minor support at 104.41, a 61.8 Fib of the Jan-Apr dollar rally, with an intermediate support at 104.04, a Feb 28 daily spike low continuing to defend the 104.00 figure. A major support can be seen at 103.20, a 78.6 Fib of the Jan-Apr dollar bull swing. In case the dollar bulls launch a counterassault, they will encounter a minor resistance at 105.06, a 5-day SMA, with a further advance encountering an intermediate resistance at 105.53, a 10-day SMA. A major resistance remains at 106.11, an Apr 20 daily spike low, and is a key target for the dollar bulls as the a breakout above will most likely see the pair retest the 108.88, a 2005 high. Indicators are mixed, with Stochastic oversold on both the daily chart at 12.22 and is treading above the oversold line 35.29 on the dealer (4HR) chart. RSI is oversold level on the daily chart at 29.01 and is treading above the oversold line at 40.07 on the 4-hour chart. MACD continues to cross below the zero line on the daily chart and is making a bullish crossover on the dealer (4HR) chart.

...more...

Euro Continues Rise in Quiet Trade

http://www.dailyfx.com/index.php?option=com_content&task=view&id=978&Itemid=39

With Golden Week in Asia, Ascension Day in Europe and Parliamentary elections in UK the FX market is predictably quiet. In fact, aside from Christmas week we do not remember a time when the global economic calendar has been so empty. Tonight's only significant piece of data comes from UK where the PMI Services report printed exactly as expected at 56.5.Although most of the components remained steady, New Business and Future Expectations numbers slipped from last month, only adding more support to the argument that UK economy is slowing down markedly. The pound lost about 30 points in the aftermath as FX market expectations for any further BOE rate hike are now near zero.

On the political front, Tony Blair and Labor party are expected to coast to a record third consecutive Parliamentary win, but the market is concerned about the size of the victory. Fears that disgruntled Labor faithful will stay at home significantly reducing Labor's majority share of the Parliamentary seats have weighed on the pound in recent days.

In the US, attention will be fully focused on Friday's NFP report with the market now estimating 174K new jobs. Preliminary indications suggest that the estimates may be on target, but today's weekly jobless claims will be watched with particular interest. Last week the number registered the second lowest reading in a year printing at 299K. Today, they are expected to increase to 320K. A number lower would confirm the bullish view, but a jump higher would definitely sow doubt in the market and may push euro above the 1.3000 figure if only until the actual report comes out on tomorrow. Jobs are critical to the whole dollar long thesis because steady employment gains would offer the Fed cover to continue its policy of gradual rate increases. If job growth suddenly slows Fed will be under enormous pressure to halt rate hikes lest it tip the country into a recession. Thus, once again, as so often happens in the FX market it all comes down to NFP.

...more...

Have a Great Day Marketeers!

[ozymandius]

9. Good morning UIA and everyone!

:donut: :donut: :donut:

This dollar watch reads like a play-by-play of whackamole. One arm of the U.S. treasury dept makes a gesture, making another arm unstable, causing a reactive rush to keep the whole operation from shimmying.

Of course, the next question is: what will Asia do when the holiday is over?

[UpInArms]

11. Hi Ozy!

I think I'll borrow a line from 54anickel :D

There's a 50/50 chance of something going to happen!

Lot's of speculation out there regarding the yuan - there are those that are convinced that China will do something this week (while the banks are closed) and there are those that keep putting it into the future (2006).

I really don't know, but that little piece of movement last Friday - letting it rise for 20 minutes - certainly rattled the markets.

[ozymandius]

14. Heaven help those who shop at Wal-Mart.

Their low-priced low-quality crap is going to be less of a bargain too soon. But there is a silver lining...

There will be less Wal-Mart bargain stories to bandy about at my family gatherings. I strain the reaches of my memory to recall when my faithful Wal-Mart relatives had something to talk about that did not include some crap they bought at that dump.

[AnneD]

63. Morning Marketeers

:donut: Whackamole...LOL. I am a bit:hangover: from lack of sleep. We did not get to testify before the committee until 11pm (we had to pull some strings to do that). I don't think it will pass because they have to fund it--but I am not perturbed. It took me 8 yrs to get this bill to this point (when we succeed, we will be the first state in the nation to require school nurses be present at schools and have a Nurse to student ratio). We met with Legislative staff and made some good inroads. Well, happy hunting and watch out for the bears.

[UpInArms]

65. Morning, AnneD!

Am glad that you got to present your bill!

:thumbsup:

Here's a little pick-me-up for you :donut::donut::donut:

[AnneD]

79. Thank you kindly UIA

I have recieved many calls from our district Nurses thanking me for my efforts. That's helped keep me awake.....

[UpInArms]

38. a peek at the buck (after the reports)

Last trade 83.83 Change -0.17 (-0.20%)

Settle 84.00 Settle Time 23:34

Open 84.03 Previous Close 84.00

High 84.08 Low 83.75

Last tick: 2005-05-05 08:54:54 ET
30-min delayed quote.

[UpInArms]

58. Dollar lower ahead of jobs report

http://www.marketwatch.com/news/story.asp?guid=%7B98E666BF%2DB87D%2D4E67%2DA10C%2D03C12F1938DF%7D&siteid=mktw

NEW YORK (MarketWatch) -- The dollar remained lower early Thursday, as hopes for a more aggressive interest rate policy continued to dwindle and market players focused on Friday's release of the nonfarm payroll report for April.

The euro was up 0.04% at $1.2950 and the dollar was down 0.1% at 104.37 yen.

Dollar losses accelerated early Thursday after the latest weekly initial jobless claims tally pointed toward economic weakness, a disappointing signal for dollar proponents who are hoping that the April employment report will prove strong enough to spur a bolder rate hike policy.

The number of workers filing for state unemployment benefits for the first time in the latest week rose by 11,000 to a seasonally adjusted 333,000, the highest tally in a month, the Labor Department said

According to a MarketWatch survey of economists, the April report should show jobs growth of 193,000 positions, up from 110,000 in March.

The dollar has been pressured ever since Tuesday when the Federal Open Market Committee, after lifting rates by a quarter-point to 3%, said in its policy statement that it considers inflation to be "well-contained."

...more...

[UpInArms]

60. The yuan and the restless

Critics say Chinese currency should trade freely but that could have nasty consequences at home.

http://money.cnn.com/2005/05/05/news/economy/yuan_revaluation/index.htm

NEW YORK (CNN/Money) - U.S. companies, politicians and other critics of the big trade deficit with China say there's one easy way to fix it -- let the Chinese yuan be free.

The critics say a free-floating yuan would rise at least 20 percent in value, making Chinese exports to the United States more costly, ending what some claim is unfair competition by the Chinese.

The U.S. trade deficit with China jumped 30 percent to $162 billion last year, bigger than the gap with Japan or Mexico, and just slightly less than the nation's total deficit just six years ago.

<snip>

But for Americans, letting the yuan rise could have some very unpopular consequences. Interest rates would probably rise, perhaps steeply, along with oil prices -- and even the trade gap with China could be forced up, at least in the short run.

<snip>

Just the possibility of a free-floating yuan could drive up long-term rates, said Sung Won Sohn, CEO of Los Angeles-based Korean bank Hanmi Financial. "They don't have to do anything," he said. "If they just say they are going to buy fewer U.S. Treasuries, they can hurt us badly."

...more...

[UpInArms]

68. Japan Calls for Exchange Rate Flexibility

http://www.forbes.com/business/healthcare/feeds/ap/2005/05/05/ap2002355.html

Japanese Finance Minister Sadakazu Tanigaki on Thursday said Asian countries should be more flexible with their foreign exchange rates to better deal with economic shocks.

The remarks come as China is under strong international pressure to introduce more flexibility to its system of fixing the yuan to the dollar. The United States and other nations say the yuan is too low and gives China's exporters an unfair price advantage.

"I believe it is desirable that study toward more flexibility in exchange rates be made for developing member countries that lack such flexibility," Tanigaki said according to a text of his speech to the annual meeting of the Asian Development Bank.

At a news conference, Tanigaki added that he believed more flexibility in China's foreign exchange regime was also desirable.

<snip>

On Wednesday, Asian finance ministers pledged to boost by up to 100 percent the size of currency swap agreements designed to cushion Asian economies from the instability that helped trigger the region's 1997-98 economic crisis.

...more...

[UpInArms]

96. Ministers give their backing to currency swap boost

http://www.bangkokpost.com/News/06May2005_news65.php

Istanbul _ Asian finance ministers agreed on Wednesday to double the size of their arsenal for fighting attacks on currencies and vowed to develop local bond markets to avoid the kind of financial turmoil that struck in 1997/98.

Haunted by memories of the Asian financial crisis and the pain of subsequent economic reforms, the region tried to set aside political differences and to build financial cooperation.

The ministers had been considering ways to strengthen the Chiang Mai Initiative (CMI) _ a network of currency swaps set up in 2000 _ during the annual meeting of the Asian Development Bank (ADB) in the Turkish city of Istanbul.

``The CMI and Asian bond market initiative will render great power in promoting future economic stability in the region,'' Japanese Finance Minister Sadakazu Tanigaki told reporters.

In their joint statement, the ministers of Japan, China, South Korea and the 10-member Association of Southeast Asian Nations (Asean) said: ``To address short-term liquidity, the size of BSAs (Bilateral Swap Arrangements) should be increased.''

...more...

Quite the coalition of the willing there!

[UpInArms]

5. Today's Reports (It's MaeveDay!):

May 5	8:30 AM	Initial Claims		04/30	-	325K	324K	320K	-	
May 5	8:30 AM	Productivity-Prel	Q1	-	1.5%	1.8%	2.1%	-

[UpInArms]

21. Reports in - Productivity way up - claims way up

8:30am 05/05/05 U.S. CONTINUING JOBLESS CLAIMS RISE 38,000 TO 2.6M

8:30am 05/05/05 U.S. Q1 MANUFACTURING PRODUCTIVITY UP 3.9%

8:30am 05/05/05 U.S. PRODUCTIVITY UP 2.5% YEAR-OVER-YEAR

8:30am 05/05/05 U.S. Q1 REAL HOURLY COMPENSATION UP 2.4%

8:30am 05/05/05 U.S. Q1 UNIT LABOR COSTS UP 2.2%

8:30am 05/05/05 U.S. Q1 NONFARM PRODUCTIVITY UP 2.6% VS. 1.9% EXPECTED

8:30am 05/05/05 U.S. 4-WK AVG. INITIAL CLAIMS DOWN 2,000 TO 321,500

8:30am 05/05/05 U.S. INITIAL JOBLESS CLAIMS UP 11,000 TO 333,000

[UpInArms]

22. U.S. jobless claims rise 11,000 to 333,000

http://www.marketwatch.com/news/newsfinder/pulseone.asp?dateid=38477.3542514583-835065057&siteID=mktw&scid=0&doctype=806&

WASHINGTON (MarketWatch) - The number of workers filing for unemployment benefits rose by 11,000 to a seasonally adjusted 333,000 in the week ending April 30, the Labor Department said Thursday. Economists were expecting initial jobless claims to rise to about 324,000. The more-reliable four-week average of new claims dipped by 2,000 to 321,500, the lowest in eight weeks. The number of people collecting unemployment checks rose by 38,000 to 2.589 million.

[Maeve]

25. Tomorrow's nonfarm payroll report will be more important

"Economists are expecting about 195,000 net new jobs in April, after a disappointing 110,000 in March."
http://www.marketwatch.com/news/story.asp?guid=%7B9E95DA2D%2DF435%2D4EB0%2D814D%2DA041BB8CEBBF%7D&siteid=mktw

Frankly, I expect them to be "disappointed" again...the Fed admits economic growth has slowed.

Not around much--still dealing with wrist pain and I don't need carpel tunnel trouble on top of basic recovery! The markets are also trying to recover back to where they were a month ago. :shrug: Bets on who recovers soonest?

[UpInArms]

27. gotta get those markets moving up

so that the piratization of SS stays on track. :eyes:

[UpInArms]

23. U.S. productivity accelerates to 2.6%

http://www.marketwatch.com/news/newsfinder/pulseone.asp?dateid=38477.3547977894-835065120&siteID=mktw&scid=0&doctype=806&

WASHINGTON (MarketWatch) - Productivity in the American workplace accelerated in the first three months of 2005, rising at a 2.6% annual rate, the Labor Department estimated Thursday. Unit labor costs - a key measure of inflationary pressures from compensation - increased 2.2% annualized. Economists were expecting nonfarm business productivity to slow to about 1.9% in the first quarter from 2.1% in the fourth quarter of 2004, according to a survey conducted by MarketWatch. Real hourly compensation (adjusted for inflation) increased at a 2.4% annual rate in the first quarter.

[naderzenithnow]

29. Anyone have a since of the role outsourcing plays in this number?

Could this simply mean jobs are moving offshore faster still?

[UpInArms]

31. as depts are gutted, leaving fewer employees to do

the work, productivity rises - morale declines and the beatings continue.

[naderzenithnow]

40. Right, so these aren’t actual productivity gains any longer.

At least not in the since most Americans have come to understand ie computers and automation. This is merely more work done at lower cost because the work is being done at sometimes only 20% of onshore rates offshore. This is a figure that should sound alarms instead of giving assurance.

[UpInArms]

30. filling in the blanks (check out the revision on claims last week)

May 5	8:30 AM	Initial Claims		04/30	333K	325K	324K	322K	320K	
May 5	8:30 AM	Productivity-Prel	Q1	2.6%	1.5%	1.8%	2.1%	-

It appears that claims actually increased 13K, not the 11K that is being stated.

:grr:

[UpInArms]

6. Looks like the next Challenger report won't be so sunny

Layoffs trouble Atlantic Sugar

http://www.palmbeachpost.com/business/content/business/epaper/2005/05/05/m1d_sugarlayoffs_0505.html

BELLE GLADE — More than half of the year-round employees at Atlantic Sugar Association have been laid off, perhaps permanently, and the western Palm Beach County mill's future is uncertain, company officials confirmed Wednesday.

The layoffs are the latest in a string of labor problems for the region's sugar industry, which is struggling with among other things the pressures of increased foreign imports through pacts such as the proposed Central American Free Trade Agreement.

According to the plant's personnel director, Ernesto Priede, after the Atlantic Sugar mill completed a shortened 90-day grinding season in January, 110 seasonal workers were laid off as usual.

Then in March and April, 100 year-round mill employees such as mechanics and factory workers were pink-slipped. About 60 full-time employees remain at the plant, he said.

"This year we had some year-round employees laid off because the company is making changes," Priede said, declining to be more specific. "Maybe they will be hired back. We don't know yet.

...more...

[UpInArms]

7. ArvinMeritor Plans Job Cuts

http://www.wlns.com/Global/story.asp?S=3303562&nav=0RbQZU1N

More than 1,800 jobs are in jeopardy at 11 ArvinMeritor plants. The Troy auto supplier says it has to cut about 6% of its global workforce as a result of restructuring plans. The company wouldn't say where the affect plants are located, but SEC filings show ArvinMeritor said the cuts are targeted toward its light-vehicle segment, most of which is located outside the US.

ArvinMeritor yesterday reported a 33 million dollar loss for its 2nd quarter. The company employees about 31,000 people at more than 120 plants in 25 countries.

...very short newsblurb...

[UpInArms]

8. Ericsson puts brakes on CDMA, cuts 250 U.S. jobs

http://rcrnews.com/news.cms?newsId=22505

Infrastructure giant Ericsson announced it will put the brakes on its CDMA business and will not seek any new customers. The company will instead focus on its line-up of existing CDMA carriers.

"We will not aggressively look for any new customers," said Ericsson spokeswoman Pia Gideon.

The news comes in conjunction with the shutdown of Ericsson's CDMA headquarters in San Diego. Ericsson said it will cut around 250 jobs in San Diego due to the closure and will largely move the operation into its W-CDMA group.

The moves cap Ericsson's long downward spiral in CDMA. The company purchased Qualcomm Inc.'s CDMA infrastructure business in 1999. However, the company largely failed to tap into large U.S. accounts like Verizon Wireless and Sprint. Today, Ericsson controls around 5 percent of the world's CDMA gear business, way behind market leaders Lucent Technologies Inc. with 40 percent and Nortel Networks Corp. with 20 percent, according to investment banking firm Lehman Brothers.

...more...

[UpInArms]

10. IBM to cut up to 13,000 employees, mostly in Europe

http://www.cbronline.com/article_news.asp?guid=29CF3CCF-B6F4-4CEF-BEAD-66F544590BC8

As expected after its surprise profit miss a few weeks ago, IBM Corp said late yesterday it would cut up to 13,000 employees from its payroll as it seeks to streamline its management and get more power into the hands of the sales people who are making the deals these days.

The cuts are in line with the Street's expectations, so the company will not be faulted for not cutting deep enough. IBM had about 329,000 employees as 2004 came to a close, and it says it will use a mix of voluntary and involuntary layoffs to reduce its payrolls by between 10,000 and 13,000 employees. That works out to between 3% and 4% of its current payroll.

The immediate cause of the layoffs was the shortfall in sales and profits that IBM had as the first quarter came to a close. IBM's sales in the quarter were $22.9bn, up 3.3%, and the company brought $1.4bn to the bottom line, an increase of 2.9% over last year's first quarter. That worked out to 85 cents a share, and because of IBM's share buyback and other financial engineering, earnings per share increased by 7.6%. However, analysts polled by Thomson/First Call had been expecting, on average, for IBM to rake in 90 cents a share on sales of $23.65bn.

<snip>

Because the European operations of Big Blue will bear the brunt of the layoffs, it is tough to nail down an exact number of layoffs and their cost. In European countries, there are still strong trade unions, and it is more difficult for IBM to make layoffs. There are rules and processes, and it cannot be done quickly or easily. Nonetheless, IBM said it plans to record a pre-tax charge of between $1.3 billion and $1.7 billion in the second quarter to cover the restructurings, and it expects the benefits of that restructuring to start affecting its numbers in a positive way during the second half of this year.

...more...

[UpInArms]

52. IBM edges lower following restructuring plans

http://www.marketwatch.com/news/newsfinder/pulseone.asp?dateid=38477.4265634606-835069922&siteID=mktw&scid=0&doctype=806&property=symb&value=&categories=&

SAN FRANCISCO (MarketWatch) -- International Business Machines Corp. (IBM) shares fell 20 cents to $76.87 one day after the technology bellwether outlined a corporate restructuring plan. IBM intends on eliminating between 10,000 and 13,000 jobs, mostly in Europe, and taking a pre-tax charge of up to $1.7 billion as part of the plane. On a conference call, IBM Chief Financial Officer Mark Loughridge said the moves would help improve IBM's performance in the technology services industry.

[UpInArms]

13. Two wireless firms slash 1,800 jobs

http://www.signonsandiego.com/news/business/20050505-9999-1n5layoffs.html

Fierce competition in the cell phone industry prompted cost-cutting moves yesterday at two spinoffs of Qualcomm – Kyocera Wireless' handset business and Ericsson's networking division – resulting in the layoff of more than 1,800 employees in San Diego and Tijuana.

Kyocera said it will eliminate 150 to 175 employees in San Diego and 1,400 at its maquiladora in Tijuana over the next three months because it is outsourcing phone manufacturing. The cuts come four months after the layoff of 718 workers, which was about one-third of Kyocera's work force in San Diego.

Ericsson is shutting down its San Diego operation, laying off 250 of its 300 employees over the next six to nine months. The remaining 50 will likely be transferred to other Ericsson offices.

<snip>

A survey last fall for the San Diego Telecom Council found that 36,831 San Diego County workers are employed in the telecommunications industry. Many telecom companies choose to locate in San Diego to be close to Qualcomm, whose CDMA technology is used in more than 240 million cell phones, or about one in four, worldwide.

...more...

[ozymandius]

12. Unions warned over pension plan ploy

The US Labor Department has warned the AFL-CIO, a federation of labour unions, that it may not hire or fire money managers based solely on whether the firms agree or disagree with President George W. Bush's
Social Security plan.

Alan Lebowitz, deputy assistant secretary for programme operations at the Labor Department's employee benefits security administration, said in a letter to the AFL-CIO that the use of pension plan assets for political purposes did not adhere to security laws protecting employee retirement income.

"A fiduciary's reconsideration of its current service providers based solely upon the service provider's views on Social Security would raise grave concerns about the prudence and loyalty of the fiduciaries' actions," Mr Lebowitz said.

The letter follows moves in recent months by the AFL-CIO to step up its campaign against the administration's Social Security proposals by targeting Wall Street companies who stand to gain from the switch to private investment accounts.

more...

http://news.yahoo.com/s/ft/20050504/bs_ft/459ef402bcf111d9b1e300000e2511c8;_ylt=A86.I2XJCnpC70IBhiH2ULEF;_ylu=X3oDMTBiMW04NW9mBHNlYwMlJVRPUCUl

[ozymandius]

15. Stocks seen flat; Wal-Mart sales in line

NEW YORK (Reuters) - U.S. stock futures pointed to a flat market open on Thursday, with oil prices holding above $50 a barrel and investors expected to pull back a day after rallying.

Costco Wholesale Corp. (Nasdaq:COST - news), the largest U.S. warehouse club, reported an 8 percent increase in April sales at stores open at least a year. Costco's figures were among the first to kick off the monthly sales updates from retailers.

Wal-Mart Stores Inc. (NYSE:WMT - news), the world's largest retailer, said April sales at U.S. stores open at least a year rose 0.9 percent, meeting its forecast.

-cut-

Stock futures dipped at around 5 a.m. (0900 GMT) on news of an explosion outside the British Consulate in New York City.

-cut-

S&P 500 futures fell 0.2 point, below fair value accounting for interest rates, dividends and time to expiration on the contract, indicating the S&P would open slightly lower.

http://news.yahoo.com/s/nm/20050505/bs_nm/markets_stocks_dc/nc:1196;_ylt=A86.I2JSDXpCXoUAJQET5LIF;_ylu=X3oDMTBiMW04NW9mBHNlYwMlJVRPUCUl

[UpInArms]

17. Dillard's April same-store sales fall 6%

http://www.marketwatch.com/news/newsfinder/pulseone.asp?dateid=38477.3479101157-835064637&siteID=mktw&scid=0&doctype=806&property=symb&value=&categories=&

NEW YORK (MarketWatch) -- Dillard's Inc. (DDS) said Thursday same-store sales fell 6% in April versus the year-ago period. The department store chain said total sales for the month were down 5% at $514 million. The Little Rock, Ark. company said first quarter same-store sales fell 3% while total sales dipped to $1.8 billion from $1.85 billion. It said stronger-than-expected sales of cosmetics, lingerie and accessories were offset by weakness in sales of juniors' and children's apparel and furniture. On Wednesday, the stock rose 1.6% to $23.55.

[UpInArms]

18. Neiman-Marcus is booming

NEIMAN MARCUS APR. SAME-STORE SALES UP 14%

[UpInArms]

20. Abercrombie & Fitch same-store sales up 16%

http://www.marketwatch.com/news/newsfinder/pulseone.asp?siteid=mktw&guid=%7BC9032C90-FE2B-458F-AE57-E92621CE1BB8%7D&

NEW YORK (MarketWatch) -- Abercrombie & Fitch Co. (ANF) said Thursday same-store sales in April shot up 16% compared with the same period a year ago. Total sales for the month shot up 31% to $159.4 million. On Wednesday, shares of the fashion apparel retailer rose 1.85 to $57.02.

[RawMaterials]

48. maybe due to the echo-boomer's

this nations next largest generation is just now hitting their buying potential. Born between 1982 and 1995, there are nearly 80 million of them.


They are also the reason that in my personal opinion is why SS is not broke, or going to break.


edit to add link to online source with a better discription...

http://www.cbsnews.com/stories/2004/10/01/60minutes/main646890.shtml

[UpInArms]

32. Family Dollar warns of earns shortfall

http://www.marketwatch.com/news/newsfinder/pulseone.asp?dateid=38477.3730812731-835066499&siteID=mktw&scid=0&doctype=806&

NEW YORK (MarketWatch) -- Family Dollar Stores (FDO) warned that fiscal third-quarter earnings would be 33 to 37 cents a share, below the average analyst estimate compiled by Thomson First Call of 41 cents a share, due to weaker-than-anticipated sales and a decline in gross profit margins. April same-store sales rose 0.9% over year-earlier levels, amid weakness in food and apparel sales, while total sales grew 8.7% to $432.8 million from last year's $398.3 million. For the fiscal fourth-quarter, earnings are expected to be 24 to 27 cents a share, below analyst forecasts of 29 cents. The discount store chain's stock closed Wednesday up 6 cents at $27.19.

[UpInArms]

33. Buffets third quarter same-store sales slip 1.9%

http://www.marketwatch.com/news/newsfinder/pulseone.asp?dateid=38477.3784754861-835066995&siteID=mktw&scid=0&doctype=806&

NEW YORK (MarketWatch) -- Buffets Holdings Inc. (BOCB) posted Thurday a third quarter net loss as the restaurant chain saw same-store sales decline 1.9%. The Eagan, Minn. company reported a quarterly loss of $300,000 compared with a loss of $100,000 in the same quarter a year ago. Earnings include pretax charges of around $7.5 million linked to the company's refinancing and other matters. Sales for the quarter fell to $277.6 million from $287.6 million. On Wednesday, the stock was up 0.5% at $13.81.

[loudsue]

101. Yea!!!! Costco up 8%, WalFart up POINT NINE (.9) percent

Kick their fundie fascist butts, Costco!!!!

:bounce: The boycott is WORKING!!!! :bounce:

[UpInArms]

16. Viacom Execs Get $100 Mil

http://www.villagevoice.com/news/0518,schanberg,63600,6.html

Over the years, Big Business has virtually numbed the public with its annual, head-spinning salary increases for top executives. But one of our giant "media" companies, Viacom, owner of CBS, MTV, and a host of radio and TV news stations, has actually managed to wake us up this year, at least for a moment, by recently paying two admittedly green executives more than $50 million—each—for calendar year 2004. Fifty million dollars is double or triple the pay of the top executive, the CEO, at comparable corporations, and this amount of loot was now also going to the newly elevated No. 2 and No. 3 at Viacom.

Wall Street analysts, who are hard to shock, recoiled; they noted that 2004 was a year in which the Viacom stock value had fallen significantly—by 18 percent.

Even more stunning, deep in one of the documents that corporations have to file annually with the SEC, Viacom admitted that the two executives—Leslie Moonves (one of whose Viacom fiefdoms is CBS, of which he's president) and Thomas Freston (who developed MTV as its CEO)—had no prior experience in the responsibilities of their new, high-level posts but expressed confidence that they would soon remedy that lack.

<snip>

Incidentally, Redstone, to no one's surprise, also paid himself more than $50 million for 2004, a 58 percent increase over 2003. To be exact, he got $56 million from a "compensation package" of salary, bonus, stock options for more than 2 million Viacom shares (the options alone had a value of $34 million), and a number of other perks. As to be expected, this was a tad more than his two protégés' $52 million.

...more...

[ozymandius]

19. DESTROYING THE AMERICAN DREAM

(I hope this hasn't been posted before.)

Well he’s done it. I didn’t want to believe it, but it’s true. Greenspan of course has transmogrified attractive interest rates of recent years into outrageously negative real interest for so long that he has nursed into being a virtual Godzilla of real estate speculation the likes we have not seen since Og traded a club and a mammoth skin for his friend’s cave. Welcome to LA’s housing nightmare.

Well, what exactly did he do? Only destroy the American Dream for many, that’s all. Yes, I know, I can always afford a house in Oklahoma, provided I can find a job that’s one step above the Quickie-Mart. (No offense to Oklahoma, as you have lots of land, or to Quickie-Mart workers for that matter as your work is more respectable than counterfeiting.) What I’m talking about are places on the coasts where a lot of people have no choice but to live and work.

When Alan and his merry band of counterfeiters pursued a policy of “making the world safe for speculators” at the expense of working, middle class, and yes, even upper middle class people (100k a year is not sufficient income for a first time homebuyer in LA) he destroyed the value of their savings and returns on their labor.

-cut-

So the rich get richer, and you can finish the sentence. When budding LA real estate tycoons in the making rapidly piece together, 3, 5, 10 residential houses at inflated prices, and then raise the rental rates, as what can happen in a difficult supply-demand situation in LA, not only does the entire cost structure of the rental market increase to the detriment of working people, but there are now fewer available homes for people who just need a place to raise their families. Result; rewarding speculators at the expense of everyone else. Great, just great.

more...

http://www.financialsense.com/fsu/editorials/2005/0504b.html

[UpInArms]

61. Homes: U.K. went cold; U.S. could too

http://money.cnn.com/2005/05/03/real_estate/investment_prop/lessons/index.htm

SALEM, Ore. (CNN/Money) – Americans aren't the only ones who've gotten rich off real estate. In fact, home price gains in the United Kingdom dwarf those of the United States.

Between the fourth quarter of 2000 and 2004, U.K. home prices increased 88 percent, on average, according to the Halifax house price index. U.S. home prices, meanwhile, increased 35 percent during that time, according to the National Association of Realtors.

The U.K. housing market started to gain steam in the late 1990s, beginning with the higher-priced properties in London and spilling over to virtually every region and every type of housing. "Buy-to-let" became all the rage as investors shifted funds from their traditional portfolios into rental properties.

<snip>

Investors who bought property with the idea of flipping it for a quick profit or renting it out played a key role in driving up U.K. housing prices.

<snip>

When the U.K. market was hot, said Stansfield, lenders became increasingly lenient in their credit standards, allowing for higher debt-to-income ratios, smaller down payments and more creative financing.

...more...

[ozymandius]

24. I've got to run folks.

Family came into town yesterday evening. So my day is full already without going into work. I'll check back in later if time allows. Have fun at the Casino!

Ozy :hi:

[UpInArms]

26. 'Bye, Ozy!

Have a wonderful day with your family!

:hi:

[UpInArms]

28. Treasurys rise after strong productivity report

http://www.marketwatch.com/news/newsfinder/pulseone.asp?dateid=38477.3655693866-835066142&siteID=mktw&scid=0&doctype=806&

NEW YORK (MarketWatch) - Treasury prices rose, sending yields lower, early Thursday in a recovery from a prior day selloff sparked by news that the U.S. Treasury is considering issuing the 30-year bond again. Treasury prices dipped briefly after the Labor Department reported that U.S. productivity acclerated at a 2.6% annual rate in the first quarter, exceeding the 2.2% growth pace forecast by analysts polled by MarketWatch. Unit labor costs - a key measure of inflationary pressures from compensation - increased 2.2% annualized. In recent trade, the yield on the benchmark 10-year bond was 4.203%, down from 4.205% before the news. In late trade on Wednesday the yield on the 10-year bond was 4.19%.

[UpInArms]

50. Long-term Treasurys extend losses

The prospect of a revived 30-yr bond steepens curve

http://www.marketwatch.com/news/story.asp?guid=%7B5B37BD89%2D5499%2D4B23%2DA1A8%2D113DFF593D37%7D&siteid=mktw

NEW YORK (MarketWatch) - Long-term Treasury prices fell early Thursday, extending a prior day selloff sparked by surprise news that the U.S. is considering issuing 30-year bonds again.

However, price losses were restrained as investors focused chiefly on the Friday release of the April employment report, which will be scrutinized for indications of the pace of economic growth and inflation.

In early trade, the 10-year bond was down 3/32 at 98-12/32 with a yield of 4.202%, contrasting with 4.19% in late trade Wednesday.

The 30-year bond, which suffered a rout on Wednesday, was down 15/32 at 111 10/32 with a 4.62% yield.

Many analysts and traders believe reviving the 30-year bond would give the debt-strapped U.S. government the financing flexibility it needs while providing an attractive investment for institutions and governments,

Yet Treasury prices plummeted on the news Wednesday, largely because a return to the former 30-year benchmark could lead to over supply and pressure prices. The Treasury said it will announce its decision on the matter in August.

...more...

[UpInArms]

34. Oil Prices Rising Again

http://www.webpronews.com/business/topbusiness/wpn-54-20050505OilPricesRisingAgain.html

A brief downturn below $50 per barrel has ended as demand worries push prices back up again.

Light crude prices rose to $50.79 per barrel, while Brent crude in London priced at $51.50 a barrel.

Asian demands for oil appear to be making an impact on prices. India and China continue to grow as oil consumers, though both countries are behind the US in terms of demand.

With a greater than expected increase in US stocks, consumers should start to see some relief at the gas pumps.

<snip>

Gas prices will still be higher than one year ago when the traditional summer driving season begins Memorial Day weekend.

...more...

[UpInArms]

36. Frontier Oil Q1 earns $34.4M vs loss $3.7M

http://www.marketwatch.com/news/newsfinder/pulseone.asp?dateid=38477.380498044-835067131&siteID=mktw&scid=0&doctype=806&property=symb&value=&categories=&

NEW YORK (MarketWatch) -- Frontier Oil Corp. (FTO) Thursday reported first-quarter earnings of $34.4 million, or $1.23 a share, up from a year-ago loss of $3.7 million, or 14 cents a share. The latest results include an inventory gain of $19.4 million, or 69 cents a share. The average estimate of analysts polled by Thomson First Call was for earnings of 64 cents a share in the March period. Revenue rose in the latest three months to $692.6 million from $537.3 million in the same period a year earlier. The stock closed Wednesday at $41, down 41 cents.

[UpInArms]

51. June crude opens higher on Nymex

http://www.marketwatch.com/news/newsfinder/pulseone.asp?dateid=38477.4198644676-835069641&siteID=mktw&scid=0&doctype=806&

DALLAS (MarketWatch) -- June crude futures added 37 cents to $50.50 a barrel Thursday morning on the New York Mercantile Exchange. Crude inventories, at 372 million barrels, are at the highest level since July 23, 1999. "Crude oil may be setting up for technical correction to the upside here, but this (inventory level) is consistent with vastly lower prices, so any upswing here may be limited in both price and duration," said Tim Evans, senior market analyst at IFR Markets, in a note to clients.

[UpInArms]

35. MCI cuts losses, sales still falling

http://washington.bizjournals.com/washington/stories/2005/05/02/daily26.html

MCI, which has cut more than 40,000 jobs in the last year and a half, reports a smaller loss for the latest quarter thanks to cost savings, but sales continue to fall.

The Ashburn-based company lost $2 million in the first quarter, compared with a net loss of $388 million in the same quarter a year ago. Sales fell 12 percent to $4.78 billion. MCI cut is operating expenses by 18 percent.

MCI's board has agreed to sell the company to Verizon, although many of the company's largest shareholders are urging Qwest Communications to revive its bid for the company. Qwest backed out of the bidding war earlier this week after Verizon raised its offer for MCI for a third time

...more...

[UpInArms]

37. pre-opening blather

briefing.com

9:15AM: S&P futures vs fair value: -1.5. Nasdaq futures vs fair value: -3.5.

9:00AM: S&P futures vs fair value: -1.1. Nasdaq futures vs fair value: -3.5. Futures indications still pointing to a lower start for the cash market as mixed same-store sales figures help prompt early profit taking following yesterday's rally... Wal-Mart (WMT) comps rose just 0.9% and now sees May comps rising 2-4% while Federated (FD) has raised Q1 guidance following comps of +2.8%... Better than expected April comps have come from MAY, COST, AEOS, TLB and KSS, but TGT, GPS, SKS, LTD and DDS have missed expectations

8:32AM: S&P futures vs fair value: -2.0. Nasdaq futures vs fair value: -3.5. Futures trade holds relatively steady following economic data, still indicating a slightly lower open for the indices... Initial claims rose 11K to 333K (consensus 324K) while a preliminary Q1 productivity figure came in at +2.6% (consensus 1.8%)... Bonds have also barely budged in response to the data, as the 10-yr note is still off 4 ticks to yield 4.20%

8:00AM: S&P futures vs fair value: -3.0. Nasdaq futures vs fair value: -6.0. Futures market versus fair value suggesting a lower open for the cash market as investors sift through April retail comps ahead of economic data... At 8:30 ET, the Labor Dept. will release initial jobless claims (consensus 324K) as investors also get a preliminary read on Q1 productivity (consensus +1.8%)... Meanwhile, rising oil prices and news of two small explosions in front of the British consulate in New York have added to early market jitters

ino.com

The June NASDAQ 100 was slightly higher overnight as it consolidates above the 20-day moving average crossing at 1441.95. Stochastics and the RSI are bullish signaling that sideways to higher prices are possible near-term. Multiple closes above the 20-day moving average crossing at 1441.95 are needed to confirm that a short-term low has been posted. If June extends this week's rally, trendline resistance crossing at 1481.30 is the next upside target. The June NASDAQ 100 was up 1.00 pts. at 1453 as of 5:45 AM ET. Overnight action sets the stage for a steady to higher opening by the NASDAQ composite index later this morning.

The June S&P 500 index was slightly lower overnight due to light profit taking as it consolidates some of Wednesday's rally but remains above broken resistance marked by the 38% retracement level of the March- April decline crossing at 1173.41. Stochastics and the RSI are bullish signaling that sideways to higher prices are possible near-term. If June extends this week's rally, the 50% retracement level of the March-April decline crossing at 1185 is the next upside target. The June S&P 500 Index was down 0.30 pts. at 1175 as of 5:48 AM ET. Overnight action sets the stage for a steady to lower opening when the day session begins later this morning.

[UpInArms]

41. 8:32 EST markets are open

Dow 10,382.56 -2.08 (-0.02%)
Nasdaq 1,959.60 -2.63 (-0.13%)
S&P 500 1,175.00 -0.65 (-0.06%)
10-Yr Bond 4.200 +0.14 (+0.33%)

NYSE Volume 15,100,000
Nasdaq Volume 33,389,000

[UpInArms]

39. Has-Been Partisan Hack Meanspin goes to bat for his buddies again

Greenspan does not support regulation of hedge funds

http://www.marketwatch.com/news/newsfinder/pulseone.asp?dateid=38477.3922665625-835067855&siteID=mktw&scid=0&doctype=806&

WASHINGTON (MarketWatch) -- Although there are some "legitimate" concerns about the impact that hedge funds could have on financial markets, government regulation of the investment vehicles is not the answer, said Federal Reserve chief Alan Greenspan. Although there is still the risk that hedge funds will all seek to rush to the exit in a market at the same time, which would hurt market liquidity, "it would be very difficult to design a set of capital requirements for hedge funds that is appropriately sensitive to the diversity and flexibility of investment strategies that different funds employ and to the lack of diversification in the portfolios of individual funds," Greenspan said in a speech prepared for delivery via satellite to the Chicago Fed's annual banking conference. The Fed chairman did not address current economic conditions or monetary policy in his address.

9:24am 05/05/05 GREENSPAN: DERIVATIVES DO POSE CHALLENGE TO REGULATORS

9:24am 05/05/05 GREENSPAN: SEES 'LEGITIMATE' CONCERNS ABOUT HEDGE FUNDS

9:24am 05/05/05 GREENSPAN AGAINST GOVT. REGULATION OF HEDGE FUNDS

[naderzenithnow]

42. Anyone else get the feeling they want a market collapse?

"risk that hedge funds will all seek to rush to the exit in a market at the same time, which would hurt market liquidity"

Yikes!

[UpInArms]

43. all I know is that whatever this POS is proposing

is never in the best interests of the average citizen.

He has a proven track record of deceit and larceny.

[UpInArms]

54. more info regarding the bile spewing

http://www.marketwatch.com/news/story.asp?guid=%7B8724CEA5%2D6BD5%2D44D1%2DA226%2D168B405D8F1E%7D&siteid=mktw

WASHINGTON (MarketWatch) -- Although there are some "legitimate" concerns about the impact that hedge funds could have on financial markets, government regulation of the investment vehicles is not the answer, said Federal Reserve chief Alan Greenspan.

Although there is still the risk that hedge funds will all seek to rush to the exit in a market at the same time, which would hurt market liquidity, any regulation would likely do more harm than good, he said in remarks to the Chicago Fed's annual banking conference.

"t would be very difficult to design a set of capital requirements for hedge funds that is appropriately sensitive to the diversity and flexibility of investment strategies that different funds employ and to the lack of diversification in the portfolios of individual funds," Greenspan said in his speech delivered via satellite.

<snip>

The Securities and Exchange Commission voted Oct. 26, 2004 to require hedge funds to share more information with the agency. Fund managers must register with the agency as investment advisers. Hedge funds, which have nearly $1 trillion in assets, will have to implement many new record-keeping procedures and allow SEC examinations, requirements that industry representatives have said will be costly.

Despite his conclusion that government regulation of hedge funds wasn't necessary, Greenspan did not appear sanguine about all aspects of the booming market for financial derivatives, which reached a notional principal value of $220 trillion in June 2004.

...more...

[UpInArms]

95. Meanspin says growing protectionism bad

http://news.moneycentral.msn.com/breaking/breakingnewsarticle.asp?feed=OBR&Date=20050505&ID=4425897

CHICAGO (Reuters) - Federal Reserve Chairman Alan Greenspan said on Thursday he feared what appeared to be a growing move toward trade protectionism, saying it could lessen the U.S. and the world's economy ability to withstand shocks.

``I'm getting increasingly disturbed about some of the pressures of protectionism that are emerging in the world because, were we to get a rigidifying of international market forces, I'm fearful of what the implications could be to the American economy and, of course, to the world as a whole,'' he said as he answered questions in a satellite appearance before a conference sponsored by the Chicago Federal Reserve Bank.

...more...

I'm surprised he didn't call it "evil". :puke:

[RawMaterials]

44. Yen Nears 7-Week High on Speculation China Closer to Yuan Shift

May 5 (Bloomberg) -- The yen rose to near a seven-week high against the dollar on speculation China, Asia's second-largest economy, is closer to making the yuan more flexible.

Japan's currency rose even after Chinese Finance Minister Jin Renqing said yesterday that expectations China may change its decade-old currency peg to the dollar makes it harder to implement a shift. A stronger yuan may reduce the competitiveness of China's exports compared with Japan.

``The yen is still getting a bid on the China revaluation speculation,'' said Adrian Foster, head of currency strategy at Dresdner Kleinwort Wasserstein in London. ``The market has the attitude that China would deny it regardless, and maintains its own view that a revaluation is imminent.''

Against the dollar, the yen traded at 104.31 at 11:19 a.m. in London, from 104.56 in New York late yesterday, when it rose to the strongest since March 17, according to electronic currency- dealing system EBS. It was at 135.22 per euro, less than 1 percent from a 2 1/2-month high.

The dollar fell earlier today against the euro and Swiss franc after reports of an explosion at the British consulate in New York. Losses were pared after city police said nobody was injured in the blast, which occurred at 3:35 a.m. local time.

Against the euro, the dollar was at $1.2963, from $1.2946.

snip..

`They Are Ready'

Goldman Sachs Group Inc. expects China to move away from the peg of about 8.3 per dollar ``at any time.'' Jim O'Neill, the firm's head of global economics research in London, said late yesterday Jin's comments didn't change his outlook.

``Technically, tactically and strategically they are ready,'' said Frank Gong, chief China economist at JPMorgan Chase & Co. in Hong Kong, who predicted six days ago a yuan revaluation may occur this week. He said this week still ``is the first window of opportunity.''

Some analysts expect China to hold off on any shift in the peg. HSBC Holdings Plc doesn't expect a change until next year and Morgan Stanley predicts China will wait until the second half of 2005.

``The general message that we have tended to get is that the time is not quite right for China to do anything,'' said Robert Rennie, chief currency strategist at Westpac Banking Corp. in Sydney. ``We are probably in a situation where we should see the dollar finding support against the yen. The yen may decline to 104.70 today, Rennie said.

U.S. Jobs

Losses in the dollar may be limited by speculation a government report tomorrow will show U.S. employment growth accelerated in April. Unemployment in Germany, by contrast, is near the highest since World War II.

The dollar has risen 4.7 percent against the euro so far this year on expectations U.S. growth will outpace the euro region. U.S. employers probably added 174,000 jobs to their payrolls in April, more than the 110,000 in March, according to the median estimate of 80 economists surveyed by Bloomberg.

``Gains of 150,000, 170,000 plus would be fairly dollar positive because it would continue to paint the U.S. in a fairly favorable light compared with the euro zone,'' said Ian Gunner, head of currency strategy at Mellon Financial Corp. in London. Gunner said the dollar may rise as high as $1.25 per euro ``over the next few weeks.''


http://www.bloomberg.com/apps/news?pid=10000101&sid=aIJ8GV9D8H.o&refer=japan

[RawMaterials]

45. Tax Receipts Exceed Treasury Predictions

After three years of rising federal budget deficits, a surge of April tax receipts brought unexpected good news to fiscal policymakers -- the tide of government red ink appears to be receding.

The Treasury Department this week reported there would be a $54 billion swing from projected deficit to surplus in the April-to-June quarter, after an unanticipated gush of tax payments poured into the Treasury before the April 15 deadline. That prompted private forecasters to lower their deficit projections for the fiscal year that ends in September

Budget analysts inside and outside the government said the positive turn is likely to be short-lived. Indeed, after a four-year absence, the Treasury Department announced yesterday it is considering reissuing its 30-year Treasury bond to help finance long-term government debt, jolting the bond markets and pushing down the price of existing 30-year securities.

snip..
Treasury officials have long resisted reissuing 30-year bonds, in part, because "nobody wanted to admit the deficits were permanent," said Wyss, the Standard & Poor's economist.

Wall Street wasn't buying it. "If you weren't borrowing this much, you wouldn't be doing it," Wyss said. "No question."

After four years of rising budget surpluses, the Treasury announced in October 2001 that it would no longer issue the 30-year bond. The decision was intended to lower the cost of government borrowing, since bonds that mature in more than 10 years, known as long bonds, typically offer higher interest rates to attract buyers willing to accept the added risk of such long maturation periods.

snip...

But forecasted surpluses turned into huge, forecasted deficits. Since President Bush entered office, the total federal debt -- including debt to the public and debt owed the Social Security system -- has risen from $5.7 trillion to $7.8 trillion. Long-term interest rates should begin rising in the near term, so the government should lock in interest rates on 30-year bonds soon, Wyss said, before the cost of federal borrowing begins to rise.

Moreover, aging populations around the world have forced governments -- especially in Europe -- to shore up pension funds by requiring that they invest in long bonds. Washington is considering similar changes for its private pension systems. That has sent demand for long bonds skyrocketing, said Neal M. Soss, chief economist at Credit Suisse First Boston LLC.

Bush's proposal to convert part of Social Security to individual investment accounts would also add considerable demand for 30-year bonds if it were to pass, Soss said. A decision on whether to issue 30-year bonds will be announced Aug. 3, Bitsberger said.

http://www.washingtonpost.com/wp-dyn/content/article/2005/05/04/AR2005050402134_2.html

[UpInArms]

47. It's going to take a lot more than $54 Billion to even make a dent

The estimated population of the United States is 296,030,383
so each citizen's share of this debt is $26,217.61.

The National Debt has continued to increase an average of
$1.76 billion per day since September 30, 2004

[RawMaterials]

49. But lets just inflate our way out of that

:hi:

But it would have to probably be hyperinflation, and i would rather not be in the us for that especially with the right thinking that we are on the brink of the rapture. :crazy:

[punpirate]

53. I wonder how much of this...

... is accumulated tidbits from offshore profits repatriation? That would mean a one-time increase (at extremely low rates).

[Roland99]

59. Alternative Minimum Tax (AMT) is hitting Small Businesses & Married Filers

Families Paying Alternative Minimum Tax Increased 12-Fold under Bush
GOP Ignoring Tax-Hike on Millions of Middle Class Families
http://www.democrats.org/news/200504140001.html

Hardly an alternative: New Yorkers take tax hit
Alternative minimum tax hurts successful business owners
http://64.233.161.104/search?q=cache:YLt-hiW-s_AJ:msnbc.msn.com/id/7541781/+&hl=en (Google cache)

[ZR2]

69. How is it possible for more people to be hit with the AMT

if wages and earnings are not increasing ?

[Roland99]

82. They're increasing but not outpacing inflation at this point.

But, my guess is it's the small business owner that's getting hit with it more than individual filers.

[UpInArms]

84. some of it could be this

http://www.democraticunderground.com/discuss/duboard.php?az=view_all&address=102x1447066

Unexpected Expense: Employees Must Pay Tax on Domestic Partner Benefits

....As an increasing number of employers make health care coverage available, unmarried workers are finding that as one barrier falls, another remains standing: taxes.

Whether in same-sex or heterosexual unmarried unions, employees who take advantage of health care coverage for their partners are stuck with tax bills for the benefits.

Under federal law, any portion of an employer-paid insurance premium that goes for coverage for a domestic partner is treated as taxable income to the employee. The employee also may not make any payments for partner coverage, such as premiums under a "cafeteria" benefit plan, with pretax dollars.

The rules apply whether an employer buys medical coverage from an insurance company or whether it "self-insures" and allocates part of the costs to the worker, said Randall Abbott of the Boston office of Watson Wyatt Worldwide, a benefits consulting firm....

[Roland99]

86. Probably a portion.

Either way, it's a poke in eye to the average person from this administration.

BTW, Lish Rimjob was blathering about how good the "surplus" is. Something along the lines of "We must have had a great first quarter for tax revenue to be up so much."


:eyes:

[UpInArms]

87. Gack! How can you stand to

hear that thing's voice?

I would rather have an appointment to have my eyes poked out as to listen to it :shriekingandrunninginhorror?

:hi:

[Roland99]

90. Nice to hear their spin sometimes. I get a good laugh of it usually

[UpInArms]

46. 9:49 EST numbers and blather

Dow 10,388.33 +3.69 (+0.04%)
Nasdaq 1,962.72 +0.49 (+0.02%)
S&P 500 1,175.79 +0.14 (+0.01%)
10-Yr Bond 4.200 +0.14 (+0.33%)

NYSE Volume 144,326,000
Nasdaq Volume 168,009,000

9:40AM: Stocks open slightly lower, in line with futures indications, as investors lock in some profits following yesterday's broad-based rally... While some good news yesterday brought out buyers looking for bargains, it appears the sustainability of the run-up may be in question early on as investors digest a mixed batch of earnings, guidance and April same-store sales figures...

[UpInArms]

55. 10:21 EST numbers and blather

Dow 10,381.68 -2.96 (-0.03%)
Nasdaq 1,963.52 +1.29 (+0.07%)
S&P 500 1,176.16 +0.51 (+0.04%)
10-Yr Bond 4.200 +0.14 (+0.33%)

NYSE Volume 347,449,000
Nasdaq Volume 361,133,000

10:00AM: Major indices still struggle to find much traction, as sector leadership remains mixed... Energy has paced the way higher as oil prices continue to rebound while gains in Retail amid April same-store sales has lifted Consumer Discretionary... Utility, however, has been weak after TXU missed Q1 forecasts by a penny, while weakness in drug stocks has weighed on Health Care... Meanwhile, Financial, Industrials and Consumer Staples remain relatively unchanged... NYSE Adv/Dec 1169/1333, Nasdaq Adv/Dec 1083/1188

[UpInArms]

56. 10:45 EST numbers and blather

Dow 10,399.05 +14.41 (+0.14%)
Nasdaq 1,966.81 +4.58 (+0.23%)
S&P 500 1,178.05 +2.40 (+0.20%)
10-Yr Bond 4.192 +0.06 (+0.14%)

NYSE Volume 483,320,000
Nasdaq Volume 482,625,000

10:30AM: Stocks still trade in lackluster fashion, as investors find few catalysts to push the indices in either direction... Also seeing little action have been Treasurys, as this morning's economic data has not had much impact on the market, especially ahead of tomorrow's vastly more significant April employment data... Earlier, investors got a preliminary read on Q1 productivity, which grew at a seasonally adjusted rate of 2.6% (consensus +1.8%) - the fastest pace in nine months and up from 2.1% in Q4...

The Labor Dept. also said that initial claims for unemployment benefits rose 11K to 333K, as the trend in claims remains steady at fairly low levels... NYSE Adv/Dec 1790/988, Nasdaq Adv/Dec 1464/1062

[UpInArms]

57. NASD says Oppenheimer & Co. thwarted probe

http://www.marketwatch.com/news/newsfinder/pulseone.asp?guid={7B06BF3D-E2DF-4B5A-B651-5182FBB61FF0}&siteid=mktw

BOSTON (MarketWatch) - The National Association of Securities Dealers said Thursday it has charged Oppenheimer & Co., formerly known as Fahnestock & Co., with failing to cooperate in an NASD investigation. The firm was also charged with failing to retain business-related email and violating Municipal Securities Rulemaking Board rules by failing to report some bona fide municipal bond transactions, reporting others that weren't effected and reporting "thousands" of other trades late and inaccurately.

I wonder if they were members of "Pirates for Piratization"?

[UpInArms]

62. Meanspin warns on Fannie, Freddie again

http://www.businessweek.com/ap/financialnews/D89T255G0.htm?campaign_id=apn_home_down

MAY. 5 9:41 A.M. ET Federal Reserve Chairman Alan Greenspan issued a fresh call on Thursday for Congress to limit the multibillion-dollar holdings of the mortgage giants Fannie Mae and Freddie Mac, warning that their huge debt could hurt U.S. financial markets.

Greenspan's comments came in a speech that focused on the broader issue of the growing use of complex financial instruments, known as derivatives. The Fed chief, as he has done in the past, saw problems with the use of derivatives but also warned against increased government regulation in this area.

Still, Greenspan said that banks, hedge funds and other big financial players that use derivatives must always assess whether they are effectively managing their risk.

"The rapid proliferation of derivatives products inevitably means that some will not have been adequately tested by market stress," Greenspan said. Financial players, he said, "must be aware of the risk-management challenges associated with the use of derivatives ... and they must take steps to ensure that those challenges are addressed."

<snip>

Concerns about potential market disruptions posed by the two mortgage giants "will remain valid until the vast leveraged portfolios of mortgage assets held by Fannie and Freddie are reduced and the associated concentrations of market risk and risk-management responsibilities are correspondingly diminished," Greenspan said.

...more...

[UpInArms]

64. U.S. mortgage rates fall despite Fed action

http://www.marketwatch.com/news/newsfinder/pulseone.asp?dateid=38477.4649273843-835071732&siteID=mktw&scid=0&doctype=806&

CHICAGO (MarketWatch) -- U.S. fixed mortgage rates fell for a fifth week even as the Federal Reserve raised short-term interest rates this week, with the benchmark 30-year loan edging down to a national average 5.75% from 5.78% a week earlier, Freddie Mac said Thursday. The mortgage agency (FRE) said its weekly survey also showed the 15-year mortgage and the five-year hybrid adjustable-rate loan also inched lower. One-year, Treasury-indexed ARMs, which are more closely tied to short-term rate movements, were up slightly.

:wtf:

[UpInArms]

66. 10:39 EST numbers and blather

Dow 10,381.68 -2.96 (-0.03%)
Nasdaq 1,964.37 +2.14 (+0.11%)
S&P 500 1,176.83 +1.18 (+0.10%)
10-Yr Bond 4.200 +0.14 (+0.33%)

NYSE Volume 732,341,000
Nasdaq Volume 688,414,000

11:30AM: More of the same, as buying remains scarce across most areas... Retail (+0.7%), however, has been a bright spot amid the release of monthly same-store sales figures... While April comps from more than 50 retailers have averaged a 2.0% gain - the weakest growth since November - the soft numbers were largely expected, as gas prices have remained high and Easter came early (Mar. 27) this year... Retailers catering to teens (i.e. ANF, AEOS and BEBE) have again turned in the strongest comps while Dept. Stores have gotten a boost following strong sales growth from MAY and upbeat guidance from FD...NYSE Adv/Dec 1960/1025, Nasdaq Adv/Dec 1596/1152

11:00AM: Little changed since the last update, as equities continue to run in place just above the flat line... Meanwhile, several blue chips have been in focus this morning... Merck (MRK 34.84 -0.09), which has lost more than 20% of its value since the Vioxx withdrawal, has named Richard Clark as its new CEO following the resignation of Raymond Gilmartin... IBM (IBM 76.17 -0.91) plans to cut up to 4% of its workforce, an initiative expected to save more than $1.0 bln, while General Electric (GE 36.07 -0.13) has agreed to sell its self-storage business for $2.3 bln in cash...

However, while such arguably positive news normally lifts stocks, modest profit-taking after yesterday's widespread run-up has so far prevented much follow through buying interest... NYSE Adv/Dec 1774/1127, Nasdaq Adv/Dec 1497/1159

[UpInArms]

67. Kerkorian Spooks Market With Massive GM Purchase

http://www.webpronews.com/business/topbusiness/wpn-54-20050505KerkorianSpooksMarketWithMassiveGMPurchase.html

Kirk Kerkorian's investment company Tracinda wants to pick up 5% of GMs outstanding stock. The massive purchase of 28 million shares at $31 a share would total $868 million and make Tracinda the third largest stockholder when combined with the 3.9% they already own. GM's stock began a quick ascent as stock jumped to over $32 a share in the process.

Kerkorian's move spooks some at GM who recall Kerkorian made a similar move in 1990 with the Chrysler Corporation. He bought up almost 10% of their stock and recommended Chrysler pay out some of the $6.6 billion in cash they were sitting on. He then began buying more stock and within in a few years, he began a hostile takeover. The takeover didn't succeed but he eventually made billions off the deal when Chrysler and Daimler Benz merged.

Thomas T. Stallkamp, who was a top executive at Chrysler when Mr. Kerkorian tried to take over the company, told the Wall Street Journal the bid to purchase more GM shares represents a serious issue for GM's management. Chrysler's 1995 takeover battle with Mr. Kerkorian became a considerable distraction for the company's executives, Mr. Stallkamp said. Later, however, once Mr. Kerkorian had a seat on the Chrysler board, executives other than CEO Robert Eaton rarely saw or heard from him.

...more...

[UpInArms]

70. 12:36 EST numbers and blather (paint drying)

Dow 10,387.37 +2.73 (+0.03%)
Nasdaq 1,968.17 +5.94 (+0.30%)
S&P 500 1,177.51 +1.86 (+0.16%)
10-Yr Bond 4.206 +0.20 (+0.48%)

NYSE Volume 913,908,000
Nasdaq Volume 860,379,000

12:00PM: Market still mired in a tight trading range midday, as mixed April retail comps and some reluctance ahead of tomorrow's employment data prevents much follow through... While bargain hunters were out in full force yesterday following a slew of upbeat news, the absence of additional market-moving data has left investors waiting for Friday's non-farm jobs figures to provide a more definitive tone for the market...

Meanwhile, April same-store sales have checked in at their weakest pace since November, but since the soft numbers were largely expected, strength from teen retailers and dept. stores have helped the Retail group find buyers... Pacing the way to the upside has been Energy amid rising oil prices ($50.20/bbl +$0.07) while Financial, Health Care and Consumer Staples have clung to modest gains... Utility, however, has paced the way lower after TXU Corp. (TXU 79.77 -2.65) missed Q1 forecasts by a penny while Technology has been mixed, with gains in Semiconductor offsetting losses in Hardware and Storage...

Among blue chips in focus, Merck (MRK 34.74 -0.19) has named a new CEO, IBM (IBM 76.01 -1.07) plans to cut up to 4% of its workforce and General Electric (GE 36.09 -0.11) plans to sell its self-storage unit for $2.3 bln in cash... Earlier, investors got a preliminary read on Q1 productivity, which grew 2.6% (consensus +1.8%) while jobless claims rose 11K to 333K (consensus 324K), as the trend in claims remains steady at fairly low levels... But the data has not had much impact on either stocks or bonds, as the benchmark 10-yr note is down 3 ticks to yield 4.19%, in large part due to the significance of tomorrow's jobs report...

(edited twice for html)

[MARALE]

71. What Happened!

http://www.marketwatch.com/tools/marketsummary/default.asp?siteid=mktw

Was just lazing along and fell in a hole?

They say it is GM.

[UpInArms]

73. Sink-O de May-O!

1:00 EST

Dow 10,318.36 -66.28 (-0.64%)
Nasdaq 1,957.16 -5.07 (-0.26%)
S&P 500 1,170.18 -5.47 (-0.47%)
10-Yr Bond 4.189 +0.03 (+0.07%)

NYSE Volume 1,050,253,000
Nasdaq Volume 969,084,000

[AnneD]

85. HAHA

:spray: :rofl: sinko de may-o wickeeeddd. I thought that was spanish for a sink full of mayonaise. Who knew :shrug:

[RawMaterials]

88. Carona and lime,

as selling remains widespread across areas..

[UpInArms]

91. coming right up!

1:44 EST

Dow 10,338.09 -46.55 (-0.45%)
Nasdaq 1,957.56 -4.67 (-0.24%)
S&P 500 1,171.39 -4.26 (-0.36%)
10-Yr Bond 4.152 -0.34 (-0.81%)

NYSE Volume 1,284,064,000
Nasdaq Volume 1,164,650,000

and a few for our friends and lurkers :D

[UpInArms]

72. S&P cuts GM ratings to junk status, outlook negative

http://www.marketwatch.com/news/newsfinder/pulseone.asp?guid={128C0AE0-E399-4353-93ED-FF4A474DFECF}&siteid=mktw

SAN FRANCISCO (MarketWatch)-- Standard & Poor's Ratings Services on Thursday cut its long- and short-term corporate credit ratings on General Motors Corp. (GM) , General Motors Acceptance Corp., and all related entities by two notches to "BB/B-1," or junk status, from "BBB-/A-3". The rating outlook is negative. S&P said the move reflects its conclusion that management's strategies may be ineffective in addressing GM's competitive disadvantages, though it notes that GM shouldn't have any difficulty accommodating its near-term cash requirements. The bid by Kirk Kerkorian's Tracinda Corp. to increase its ownership stake in GM represents an additional uncertainty, S&P said, but said this was not a factor at all in the current rating action.

[naderzenithnow]

75. What was all that "deep value, confidence in market investing"crap?

I wonder how much money he saved his “friends” in the trading houses by putting out that cover story BS yesterday. I love how the Media spread it around thick yesterday “deep value!” “deep value!”. I hope no one around here got hurt being suckered in to that trap. I'd also like to know if he was selling into the updraft. Prosecutable I think.

[UpInArms]

77. you definitely get the I-spy prize on that one

naderzenithnow!

Called early by a savvy Marketeer!

:thumbsup:

[IChing]

74. falling fast

down 81 points, no 83, no 84.........points
thanks for this thread it saves time .

[UpInArms]

76. 1:05 EST numbers and blather (catching a bit of wing-wind?)

Dow 10,314.30 -70.34 (-0.68%)
Nasdaq 1,956.76 -5.47 (-0.28%)
S&P 500 1,168.81 -6.84 (-0.58%)
10-Yr Bond 4.196 +0.10 (+0.24%)

NYSE Volume 1,097,928,000
Nasdaq Volume 1,013,857,000

1:00PM: Stocks spike lower as GM and Ford debt issues get cut to junk... What had been a relatively quiet day of trade, has recently reversed course after S&P cut the credit ratings on both General Motors (GM 31.38 -1.42) and Ford Motor (F 9.66 -0.50) to junk status...While the downgrades were widely expected, the timing of the revision has rattled the market, in particular the blue chip indices, as S&P has cited the ineffectiveness of management strategies and additional uncertainty with regards to Tracinda Corp's increased ownership as reasons for GM's downgrade...

Treasurys, however have caught a flight-to-quality bid, as the 10-year note is now up 4 ticks to yield 4.17%... NYSE Adv/Dec 1902/1237, Nasdaq Adv/Dec 1534/1350

probably a "knee-jerk" reaction - everyone already knew GM was junk :eyes:

[UpInArms]

81. 1:21 EST numbers

Dow 10,309.03 -75.61 (-0.73%)
Nasdaq 1,953.65 -8.58 (-0.44%)
S&P 500 1,167.85 -7.80 (-0.66%)
10-Yr Bond 4.155 -0.31 (-0.74%)

NYSE Volume 1,181,876,000
Nasdaq Volume 1,079,834,000



Slip sliding away
the nearer the destination
the more you go
slip sliding away

[UpInArms]

83. Treasurys rise on GM, Ford ratings cuts

http://www.marketwatch.com/news/newsfinder/pulseone.asp?dateid=38477.5532143056-835075522&siteID=mktw&scid=0&doctype=806&

NEW YORK (MarketWatch) - Treasurys were bid higher Thursday afternoon after Standard & Poor's reduced the bond ratings on both General Motors (GM) and Ford Motor Co. (F) to junk status. Safe-haven buying was especially active in the two-year note. The higher prices pushed the yield on the two-year note down to 3.56% yield from 3.61%. The yield on the benchmark 10-year bond fell to 4.17% from 4.19%.

[UpInArms]

78. It's a Two-Fer! S&P cuts Ford Motor ratings to junk status

http://www.marketwatch.com/news/newsfinder/pulseone.asp?dateid=38477.5471797338-835075234&siteID=mktw&scid=0&doctype=806&

SAN FRANCISCO (MarketWatch) -- Standard & Poor's Ratings Services on Thursday cut its long- and short-term corporate credit ratings on Ford Motor Co. (F) , Ford Motor Credit Co., and all related entities except those of Hertz Corp. to "BB+/B-1" , or junk staus, from "BBB-/A-3." The rating outlook is negative. S&P said the moves reflect its skepticism about whether management's strategies will be sufficient to counteract mounting competitive challenges. The ratings agency said its greatest immediate concern is that Ford faces the prospect that its overall sport utility vehicle business will not be able to generate the profitability it has enjoyed historically. Hertz ratings remain on CreditWatch, S&P said.

April sales told the tale - American cars and their corporate idiots are "junk"

[RawMaterials]

89. But just wait till the new bigger SUV's come out

they get 2mpg, and they will save GM and Ford. :rofl:

[UpInArms]

92. on A(lways)B(roadcasting)C(rap) evening snews the other night

the GM heads were squealing!

But our SUVs are our best profit-margin vehicles!

We won't let them be losers!

wah-wah-wah-wah

:rofl:

[UpInArms]

80. GM, Ford bonds hammered as S&P cuts rating to junk

http://www.marketwatch.com/news/newsfinder/pulseone.asp?dateid=38477.5485612037-835075276&siteID=mktw&scid=0&doctype=806&

NEW YORK (MarketWatch) -- Bonds issued by General Motors Corp. (GM) and Ford Motor Co. (F) were hammered Thursday after Standard & Poor's cut the company's rating to junk status. GM's 8.375% bond issued 2033 was last yielding 10.752%, according to corporate bond tracker Market Axess. Its spread, or difference in yield to a comparable, lower-risk Treasury, widened by 73 basis points to 690 basis points. GM's 6.75% note due 2014 was yielding. Its spread widened 52 basis points to 464 basis points over a Treasury, reversing the gains of the prior session, made on news that Kirk Kerkorian was planning to double his stake in the company. Ford's 7.375% note due 2009 was yielding 8.551%. Its spread widened 62 basis points to 475 basis points over a Treasury.

[UpInArms]

93. 2:38 EST numbers and blather

Dow 10,314.74 -69.90 (-0.67%)
Nasdaq 1,955.71 -6.52 (-0.33%)
S&P 500 1,169.00 -6.65 (-0.57%)
10-Yr Bond 4.174 -0.12 (-0.29%)

NYSE Volume 1,483,551,000
Nasdaq Volume 1,319,107,000

2:30PM: Major averages drifting sideways again, as the recent recovery effort seems to have stalled... Still among the worst performing groups continue to be Automobile Manufacturers (-5.2%) and Auto Parts & Equipment (-3.2%), with suppliers Delphi (DPH 3.50 -0.35) and Visteon (VC 3.61 -0.33) feeling the brunt of the weakness... Also under pressure in the wake of the GM and Ford debt downgrades, as well as concerns about prices and excess supply, has been Steel (-1.7%)...

In particular, AK Steel (AKS 7.44 -0.37) has been one of the hardest hit since 48% of its revenues are derived from the auto industry and GM is its largest customer... NYSE Adv/Dec 1601/1630, Nasdaq Adv/Dec 1294/1666

2:00PM: Market pares some of its losses, but weakened breadth figures now indicate a negative sentiment... Meanwhile, the S&P continues to trade below its 50-day moving average (1173) while the Dow struggles to find support near 10325... But with total volume running lighter than usual, as only 1.0 bln shares have traded on the NYSE so far, there has not been much conviction behind the market's reversal...NYSE Adv/Dec 1587/1617, Nasdaq Adv/Dec 1315/1640

1:30PM: Indices continue to languish near session lows, as selling remains widespread across areas... But even though Retail has recently slipped into negative territory, several NYSE-listed retailers have shown encouraging resilience in the face of the recent sell-off... Notable movers, but not components of the S&P Retail Index, include BBA (+17.7%), TLB (+12.4%), CBK (+11.3%), GES (+10.8%), CHS (+9.4%) and ZLC (+4.4%), just to name a few...NYSE Adv/Dec 1538/1634, Nasdaq Adv/Dec 1286/1622

[UpInArms]

98. 3:27 EST numbers and blather (minor recovery in process)

Dow 10,339.27 -45.37 (-0.44%)
Nasdaq 1,958.05 -4.18 (-0.21%)
S&P 500 1,171.95 -3.70 (-0.31%)
10-Yr Bond 4.162 -0.24 (-0.57%)

NYSE Volume 1,709,993,000
Nasdaq Volume 1,507,564,000

3:00PM: While the Nasdaq lags its blue chip counterparts to the downside, technology weakness remains prevalent across the board... Pacing the way lower has been Disk Drive (-2.6%), dragged lower by a 7.9% drubbing in Maxtor (MXO 4.58 -0.39), which missed analysts' forecasts last night with a loss of $0.10 a share... Networking (-1.2%) has also been under pressure, led lower by a 1.8% decline in Qualcomm (QCOM 35.00 -0.65) after China said it may delay 3G licenses to end of year...

Even Semiconductor (-0.2%) has struggled to turn positive despite strength in Intel (INTC 24.24 +0.13), which hosts its Spring Analyst Meeting after the bell (4:00 ET)... NYSE Adv/Dec 1564/1679, Nasdaq Adv/Dec 1321/1663

[UpInArms]

99. 3:35 EST numbers and blather (recovery almost complete)

Dow 10,356.04 -28.60 (-0.28%)
Nasdaq 1,960.22 -2.01 (-0.10%)
S&P 500 1,173.54 -2.11 (-0.18%)
10-Yr Bond 4.162 -0.24 (-0.57%)

NYSE Volume 1,761,343,000
Nasdaq Volume 1,550,222,000

3:30PM: Renewed buying interest lifts the indices off their lows, but the market continues to chalk up widespread losses... Recently closing to the upside, however, have been Treasurys, as the 10-year note finished up 4 ticks to yield 4.16% ahead of April payrolls data - a focal point tomorrow morning (8:30 ET) for both bond traders and stock investors...

While special emphasis will be placed on Non-farm Payrolls (consensus 175K), as well as Hourly Earnings (consensus +0.2%), a gain of even 125K (payrolls) should ease fears of a sharp economic slowdown while a gain of 175K or more would suggest that the economy is on a steady track for 3% real GDP growth...NYSE Adv/Dec 1591/1671, Nasdaq Adv/Dec 1304/1692

Was it a late afternoon visitation?

[UpInArms]

94. Greenberg slams AIG 'accusations'

FBI looking for fraud in 'finite' deals; AIG not targeted

http://www.marketwatch.com/news/story.asp?guid=%7B91062B87%2DCED8%2D4531%2DB1CF%2D39949DE4E9E8%7D&siteid=mktw

SAN FRANCISO (MarketWatch) - Former American International Group Chief Executive Maurice "Hank" Greenberg criticized the company's recent accounting confessions, describing them in a letter as "vile accusations" lacking important facts.

Meanwhile, the Federal Bureau of Investigation has become the latest regulatory agency looking into the potential abuse of so-called finite or non-traditional reinsurance - the products at the center of AIG's accounting troubles.

There is no clear definition of finite reinsurance, but generally it's a blend traditional reinsurance and financing. The products are usually purchased by other insurers looking to protect themselves against the financial risk of future liabilities.

Regulators, including New York Attorney General Eliot Spitzer and the Securities and Exchange Commission, are investigating whether companies have used finite reinsurance to manipulate their financial statements.

<snip>

The stakes of this battle were raised a little higher Wednesday after the FBI said that it's looking at possible fraud in the use of finite reinsurance.

"FBI is proactively looking into the issue for signs of patterns of fraudulent activity," Joe Parris, a supervisory special agent at the FBI's national press office, said. "We're not conducting a specific investigation into AIG, that's being done by others, but we're taking a broad look at the industry."

...more...

[UpInArms]

97. June crude closes near $51 on Nymex

http://www.marketwatch.com/news/newsfinder/pulseone.asp?dateid=38477.6336583102-835078426&siteID=mktw&scid=0&doctype=806&property=symb&value=&categories=&

DALLAS (MarketWatch) -- June crude rose 70 cents to close at $50.83 a barrel Thursday on the New York Mercantile Exchange. Crude inventories "are already much more consistent with prices at or even below $30 than they are with a price tag of $50 or more," said Tim Evans, senior market analyst at IFR Markets. "At the same time, though, June crude oil has also become short-term oversold. While this does not entirely preclude further declines, it does suggest that a technical upswing may be possible."

[RawMaterials]

100. Closing Numbers and Blather

Dow 10340.38 -44.26 (-0.43%)
Nasdaq 1961.80 -0.43 (-0.02%)
S&P 500 1172.63 -3.02 (-0.26%)
10-Yr Bond 4.162% -0.24

NYSE Volume 1,976,405,000
Nasdaq Volume 1,719,878,000


Close: Stocks closed lower in the wake of corporate debt downgrades, but late-day buying efforts minimized losses heading into the close... The notion that the market may have overreacted somewhat to S&P's sooner-than-expected downgrade of General Motors' (GM 30.86 -1.94) credit rating to junk status that rattled stocks around lunch, coupled with news that Tracinda Corp. remains committed to its increased stake in GM, arguably improved sentiment...

However, once investors' confidence was shaken, the renewed buying efforts were not enough to prevent nine out of ten economic sectors from closing lower... Just as GM was a catalyst to the upside yesterday that helped the Dow close at a three-week high, it was the main driver of stocks to the downside today after its debt was cut to junk - just minutes before its rival Ford Motor's (F 9.70 -0.46) debt was also downgraded - due to competitive disadvantages, aging SUV line-ups and legacy costs... The market had been range-bound all morning, as mixed April retail comps and some reluctance ahead of tomorrow's employment data prevented much follow through buying interest in stocks...

Telecom Services paced the way to the downside, led lower by a 1.1% sell-off in Verizon (VZ 34.30 -0.40) while Financial and Industrials lost ground amid the GM/F news... Technology was weak across the board, as Disk Drive (-1.9%) paced the way lower amid a worse than expected Q1 loss at Maxtor (MXO 4.61 -0.36)... Networking (-1.0%) was also under pressure, amid news that China may delay 3G licenses to end of year, while even Semiconductor struggled to turn positive despite strength in Intel (INTC 24.26 +0.15) ahead of its analyst meeting after the bell...

Utility was under pressure after TXU Corp. (TXU 79.10 -3.32) missed Q1 forecasts by a penny while recovery efforts in Retail amid April comps failed to close Consumer Discretionary in positive territory... April same-store sales checked in at their weakest pace since November, but even though the market largely anticipated the soft numbers, strong growth from teen retailers and dept. stores kept Retail in focus all day... The only economic sector to close higher was Energy, which took advantage of 1.4% rebound in oil prices ($50.83/bbl +$0.70)...

Treasurys also closed higher, catching a flight-to-quality bid amid the corporate debt downgrades, as the 10-year note finished up 4 ticks to yield 4.16%... Earlier, investors got a preliminary read on Q1 productivity, which grew 2.6% (consensus +1.8%), while jobless claims rose 11K to 333K (consensus 324K), as the trend in claims remains steady at fairly low levels... But the data had little impact on either stocks or bonds due primarily to the significance of tomorrow's influential jobs report... DJTA +0.3, DJUA -0.8, DOT -0.3, Nasdaq 100 -0.1, Russell 2000 +0.1, S&P Midcap 400 +0.2, XOI +1.0, NYSE Adv/Dec 1744/1542, Nasdaq Adv/Dec 1532/1492

[loudsue]

102. Boy! That ride was better 'n Space Mountain at Disney World

Whew! Someone sure filled in that sink-hole in record time!

Thanks for a fun ride, Marketeers!

:yourock:


:kick: