STOCK MARKET WATCH, Tuesday 27 December

[ozymandius]

Tuesday December 27, 2005

COUNTING THE DAYS
DAYS REMAINING IN THE * REGIME 3 YEARS, 26 DAYS
DAYS SINCE DEMOCRACY DIED (12/12/00) 1832 DAYS
WHERE'S OSAMA BIN-LADEN? 1531 DAYS
DAYS SINCE ENRON COLLAPSE = 1493
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
Oil - $27.69/bbl
Gold - $266.70/oz.

AT THE CLOSING BELL ON December 23, 2005

Dow... 10,883.27 -6.17 (-0.06%)
Nasdaq... 2,249.42 +2.93 (+0.13%)
S&P 500... 1,268.66 +0.54 (+0.04%)
10-Yr Bond... 4.38% -0.05 (-1.20%)
Gold future... 505.20 +0.20 (+0.04%)






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. Oil falls as mild weather dominates US

Crude prices fell on Tuesday as mild weather continued to dominate in the US, while Shell announced it had secured much of the 180,000 barrels-a-day production lost following last week's attack on a Nigerian pipeline.

The expected reduced call on crude for the refining of heating oil drove Nymex West Texas Intermediate for February delivery 48 cents lower to $57.72 a barrel in early electronic trade. While the International Petroleum Exchange in London remained closed on Tuesday, Brent crude was 54 cents lower in electronic trade at $56.15 a barrel.

The US National Weather Service said in a forecast that demand in the key north-east region was likely to be a quarter less than usual in the week to December 31, given the mild temperatures.

more...

[mohinoaklawnillinois]

3. But what happens if the weather forecast is wrong?

I've lived my entire life in Chicago and believe me, it can and does get real cold in January/February.

As far as I can figure from watching weather forecasts for the last 40 years, if that Alberta Clipper gets going, it's pretty tough going in the Upper Midwest during these months.

Do these prognosticators have a magic wand or perhaps they can see in the future?

[ozymandius]

5. These oil/weather forecasts are always inconsistent.

If you check in each week, you'll see the relationship between oil prices and U.S. weather forecasts slide all over the place. The news writer would put a caveat on the story claiming the information has an expiration date. Otherwise, their information is no more reliable than what is commonly available to you and me.

[UpInArms]

26. Feb Crude @ $57.95 bbl - NatGas @ $11.17 mln btus

10:00am 12/27/05 FEB CRUDE OPENS DOWN 58 CENTS AT $57.95 A BARREL

10:00am 12/27/05 NATURAL GAS DOWN $1.11 AT $11.17 PER MILLION BTUS

[ozymandius]

2. redux: New Home Sales Fall More Than Expected

WASHINGTON - Sales of new homes plunged in November by the largest amount in nearly 12 years, the most dramatic evidence yet that the booming housing market is starting to cool off.

The Commerce Department reported Friday that sales of new single-family homes fell by 11.3 percent last month to a seasonally adjusted annual rate of 1.245 million units.

Analysts had been expecting a drop of around 8.7 percent given that sales in October had jumped unexpectedly to an all-time high. But many said the size of the decline was a clear indication that the five-year boom in housing has peaked.

In addition to the big plunge in sales, the median price of a new home dropped by 4.1 percent from the October level to $225,200. That was up only 0.3 percent from November 2004, representing a marked slowdown from what been double-digit price gains.

more...

[ozymandius]

4. Stocks Unlikely to Post Big Year-End Rally

NEW YORK - The last week of the calendar year is Wall Street's time for "window-dressing," a longtime tradition of money managers buying up stocks to boost their portfolios' performance before year's end.

In the past three years, this last spike upward followed on the heels of a strong December rally. Yet with modest returns likely in 2005 and predictions for perhaps a more difficult 2006, stocks have tracked sideways to slightly lower this month.

That means the windows may already be dressed. The market right now is fairly valued in the eyes of most money managers, which means there's little room to maneuver before year end. If the market was undervalued, portfolio managers could pick up stocks on the cheap and look like geniuses, while if stocks seemed pricey, they could just sell and collect the gains.

But where things stand now, there's no real impetus to go out and buy, especially when January has historically been a down month for stocks. So while the week ahead may see a little window-dressing here and there, it is highly unlikely that stocks will mount a major rally in just four trading days. There's no corporate earnings, no market-moving news expected, and simply no real reason for it.

more...

[Nimrod2005]

6. Do we usually buy/sell more new or more existing homes?

Does anyone know?

[UpInArms]

7. daily dollar watch

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

Last trade 90.91 Change -0.13 (-0.14%)

Thin Trading Causes Little Excitement for Dollar

http://www.dailyfx.com/story/dailyfx_financial_markets_headlines/dailyfx_financial_markets_headlines/5738_thin_trading_causes_little_excitement_for.html

The US dollar’s performance today was vastly different across various currency pairs. Against the British Pound, Australian Dollar and New Zealand dollar, the greenback strengthened, but against the Euro, Swiss franc and Canadian Dollar it remain unchanged. The one currency pair that the dollar lost strength against was the Japanese Yen.

This divergence could very well be because US data was mixed today, leaving no clues on the state of the US economy as we prepare to step our feet into 2006. Durable goods orders jumped 4.4 percent in the month of November, but this sharp rise was primarily due to a four fold increase in orders for Boeing’s aircrafts. Stripping out the transportation component, orders actually fell 0.6 percent, which was far weaker than the market’s 1.0 percent forecast. Confidence as measured by the University of Michigan survey was revised up to 91.5 from 89.0 for the month of December, but what is worrisome is that new home sales fell 11.3 percent to 1.245 million last month. As another sign of a top in the housing market, the situation could worsen. The stronger housing starts and building permits released on Tuesday indicate that more supply should be coming onto the market. If the supply is not met with sufficient demand, which as suggested by the new home sales report could very well be the case, then the possibility of a meaningful drop in house prices becomes even more likely. The fate of the housing market is a very important theme that could easily set the tone for trading in the year ahead.

The stock market was little changed at 4pm EST, with the Dow ending the week at 10,884.63. News of a possible acquisition by Apax Partners of Tommy Hilfiger for $1.6 billion helped to prevent any deep losses. Yesterday’s Santa Claus rally failed to extend another day. General Motors was the big laggard this week as it dragged the entire Dow Index lower.

...more...

[UpInArms]

27. 52-week highs and lows on the dollar index

Last trade 90.96 Change -0.08 (-0.09%)

Open 91.05 Previous Close 91.04

High 91.11 Low 90.80

2005-12-27 09:42:49, min delay

52wk High 92.63 52wk High Date 2005-11-16

52wk Low 80.39 52wk Low Date 2004-12-31

Open Time 19:00 Close Time 15:00

[UpInArms]

8. U.S. yield curve inverts, yen falls on rate view

http://today.reuters.com/PrinterFriendlyPopup.aspx?type=bondsNews&storyID=uri:2005-12-27T110236Z_01_L27650117_RTRIDST_0_MARKETS-GLOBAL-WRAPUP-3.XML

LONDON, Dec 27 (Reuters) - Interest rate speculation set the tone for financial markets on Tuesday with U.S. bonds focussing on talk the Federal Reserve has nearly finished raising rates and the yen under pressure as investors bet Japanese rates would stay low.

Stocks in Asia and Europe were mixed in trading thinned by Christmas holidays in some markets, while oil prices fell by 1 percent thanks to warmer-than-normal weather in the United States and a recovery in crude production from Nigeria.

The first inversion in the U.S. yield curve in five years preoccupied markets, with investors prepared to accept a lower rate of return for long-dated bonds than for short-rated ones.

<snip>

The inversion of the yield curve is rare because investors tend to demand higher yields on longer-dated bonds to compensate for the risk of higher inflation later.

Previous inversions have typically signalled a slowing economy or recession and debate has raged over what an inverted curve means in the current environment of robust growth and relatively subdued inflation.

...more...

[UpInArms]

15. Treasurys lower in light volume ahead of 2-year announcement

http://www.marketwatch.com/news/newsfinder/pulseone.asp?dateid=38713.3646136458-855759402&siteID=mktw&scid=0&doctype=806&

NEW YORK (MarketWatch) -- Treasurys were lower in light holiday volumes early Tuesday with the spread between the 2-year and the 10-year almost at parity ahead of a 2-year auction announcement later in the session. The spread on the 2-year and 10-year briefly inverted in European trading for the first time in five years, with the 2-year note yielding 4.41% against the 10-year's 4.405%. In recent trade, the 2-year was yielding 4.385%, while the 10-year yield stood at 4.393%.

[UpInArms]

32. 3- and 6-month treasury auction info

1:07pm 12/27/05 3-MONTH AUCTION BID-TO-COVER RATIO 2.18

1:07pm 12/27/05 TREASURY AUCTIONS 3-MONTH BILLS AT 3.905%

1:07pm 12/27/05 6-MONTH AUCTION BID-TO-COVER RATIO 1.99

1:07pm 12/27/05 TREASURY AUCTIONS 6-MONTH BILLS AT 4.200%

[UpInArms]

18. Yield curve inverts for first time in 5 years

http://www.marketwatch.com/news/print_story.asp?print=1&guid={75F7335A-1D0F-4026-AC99-691051568374}&siteid=mktw

NEW YORK (MarketWatch) - Treasurys were lower in early trade Tuesday after the spread between the 2-year note and the 10-year note briefly inverted for the first time in five years.

The inversion came in European trade when the 2-year note yielded 4.411% versus a 10-year yield of 4.405%.

In early New York trade, the yield curve normalized with the 2-year yielding 4.385%, while the 10-year yield stood at 4.391%.

"The market has been pressing for curve inversion for several weeks," said economists at Action Economics, who said they expected it would be a temporary development.

The last time the yield curve inverted was in 2000, ahead of the last U.S. recession and a period of aggressive rate cuts by the Federal Reserve.

...more...

[UpInArms]

21. Printing Press Report:Fed adds reserves via 8-day repos, overnight RPs

http://today.reuters.com/investing/financeArticle.aspx?type=bondsNews&storyID=2005-12-27T143313Z_01_N27343629_RTRIDST_0_MARKETS-FED-OPERATIONS.XML

NEW YORK, Dec 27 (Reuters) - The Federal Reserve said on Tuesday it added temporary reserves to the U.S. banking system through eight-day system repurchase agreements, followed by overnight repos.

The benchmark fed funds rate last traded at 4.25 percent, the Fed's current target for the overnight lending rate.

Further details of the operation are available at: http://www.ny.frb.org/markets/omo/dmm/temp.cfm

[UpInArms]

34. Printing Press Report: $42 Billion - in 3 different issues - this week

US Treasury to sell $12 bln cash management bills

http://today.reuters.com/investing/financeArticle.aspx?type=bondsNews&storyID=2005-12-27T161525Z_01_WBT004463_RTRIDST_0_ECONOMY-CASHMANAGEMENT-ANNOUNCEMENT-URGENT.XML

WASHINGTON, Dec 27 (Reuters) - The U.S. Treasury Department on Tuesday said it will sell $12 billion of 14-day cash management bills on Thursday, Dec. 29.

The bills will be issued on Jan. 3, 2006.

The bills mature on Jan. 17, 2006. The Treasury said the net long position reporting threshold is $4.2 billion.

Noncompetitive bids must be received before 11:00 a.m. EST (1600 GMT) and competitive bids by 11:30 p.m. EST (1630 GMT).

...more...

US Treasury to sell $20 bln of two-year notes

http://today.reuters.com/investing/financeArticle.aspx?type=bondsNews&storyID=2005-12-27T161052Z_01_WBT004461_RTRIDST_0_ECONOMY-NOTES-ANNOUNCEMENT-URGENT.XML

WASHINGTON, Dec 27 (Reuters) - The U.S. Treasury Department on Tuesday said it will sell $20 billion of two-year notes on Thursday, Dec. 29.

The notes will be issued on Jan. 3, 2006.

Proceeds from the sale will be used to refund about $26 billion of publicly held notes maturing Dec. 31 and to pay down about $6 billion of debt.

The two-year notes announced on Tuesday mature Dec. 31, 2007.

Treasury said the net long position reporting threshold is $7.0 billion.

...more...

U.S. to sell $10 bln bills 4-wk bills on Wednesday

http://today.reuters.com/investing/financeArticle.aspx?type=bondsNews&storyID=2005-12-27T160219Z_01_WBT004462_RTRIDST_0_ECONOMY-BILLS-ANNOUNCEMENT-URGENT.XML

WASHINGTON, Dec 27 (Reuters) - The U.S. Treasury Department said on Tuesday it will sell $10 billion in four-week bills on Wednesday, Dec. 28.

The four-week bills will be issued on Dec. 29.

The bills mature on Jan. 26. The Treasury said the net long position reporting threshold is $3.50 billion.

Noncompetitive bids must be received before noon (1700 GMT) and competitive bids by 1:00 p.m. (1800 GMT).

...more...

That's some major check-kiting activity! :wow:

[UpInArms]

9. Gold pulls metals higher in early trade ($509.60 oz)

7:40am 12/27/05 FEB GOLD FUTURES UP $4.70 AT $509.90 AN OUNCE

http://www.marketwatch.com/news/story.asp?guid=%7B0BD8BD53%2D4823%2D4CB2%2D91F2%2D7BDBF531045C%7D&symbol=&siteid=mktw

NEW YORK (MarketWatch) - Gold futures rose early Tuesday, pulling the broader metals sector higher, amid forecasts of continued strong physical demand from China, India and the Middle East.

Gold for February delivery was last trading up $4.40 at $509.60 an ounce. The metal had pulled back to as low as $492.30 last week as traders locked in gains ahead of the year-end.

Sentiment toward the metal has remained bullish, however, with most analysts expecting gold to remain at current levels this week and head higher in 2006.

The World Gold Council said demand for gold has been growing for almost two years, underpinned by demand from China, India and the Middle East, according to Action Economics.

"Gold prices are likely to remain underpinned over the medium-to-longer term," said the research firm. Gold analysts continue to forecast strong jewellery demand, notably in China, while gold is expected to become more and more attractive as an investment tool.

...more...

[UpInArms]

10. U.S. stores slash prices

http://lfpress.ca/newsstand/News/International/2005/12/27/1369208-sun.html

NEW YORK -- The holiday buying frenzy is on again.

American shoppers headed back to malls early yesterday morning for post-Christmas deals as retailers wooed them with even deeper discounts, expanded shopping hours and fresh new merchandise in an effort to salvage sales in a season that's turning out to be only ho-hum.

This year, shoppers waited even longer than last year to do their holiday shopping, creating more angst among retailers. Now, merchants are relying even more on the post-Christmas season, hoping that consumers will snap up discounted holiday leftovers as well as new regular-priced merchandise.

...more...

[UpInArms]

11. GHCL (India) to acquire third-largest US textile company

http://www.domain-b.com/industry/textiles/20051226_acquire.html

Hyderabad: The cost of the acquisition is $17.50 million, which GHCL will fund through its recently concluded FCCB issue proceeds, while the existing debts will be refinanced. The acquisition process is likely to be completed by first week of January 2006, after which GHCL would have a complete control over Dan River's operations.

Dan River Inc., which already has its outsourcing arm in China and Pakistan, is the leading player in the US textile markets with an annual turnover of $250 million from home textiles. The company has among the widest sales & distribution network within the US catering to large retailers and is a preferred supplier of large retailers like JC Penny, Linen & Things, Wal-mart, Bed, Bath & Beyond.

This acquisition enables GHCL to enter into marketing arrangements of $250 million even before its manufacturing unit at Vapi, Gujarat commences operations in March 2006. Dan River is well known for its premium brands like 'Bed In a Bag,' Marquis Home Collections and Alexander Julian apart from high margin brands like Juvenile Segments.

Sanjay Dalmia, chairman, GHCL said, "This acquisition provides us with an ideal opportunity to leverage Dan River's global platform and a renowned global brand in order to make GHCL one of the dominant player in the Home textile space globally."

<snip>

"Dan River will be able to integrate its marketing capability in the US home textile space with GHCL's textile facility at Vapi, besides integrating our global outsourcing strategy of sourcing from India, Pakistan & China. A substantial value creation for the Dan River business to become the most competitive home textile Player in the US, further adding substantial value for the shareholders," said Greg R. Boozer, chief of outsourcing operations, Dan River.

...more...

"chief of outsourcing operations" - doesn't that just give you the warm fuzzies? :sarcasm:

[UpInArms]

12. Goldman Sachs gets warning in Japan (illegal transactions)

http://business.timesonline.co.uk/article/0,,13133-1960441,00.html

Japan’s financial watchdog has ordered Goldman Sachs Asset Management to improve its conduct after several illegal transactions.

According to Japan's Financial Services Agency, when the company made erroneous orders, it "intentionally transferred the mis-ordered stocks to other customers’ accounts".

The company also made "a cross trade" between two investment trusts’ buying and selling positions when the company rolled over the trusts’ futures trades.

The company also recommended its customers to switch their assets from privately offered trusts to new publicly offered ones before the firm filed the securities registration statements required for public offerings.

...more...

[UpInArms]

13. Overstock.com sees negative cash flow for 2005

http://www.marketwatch.com/news/newsfinder/pulseone.asp?dateid=38713.3448420139-855758984&siteID=mktw&scid=0&doctype=806&

NEW YORK (MarketWatch) -- Overstock.com (OSTK) said Tuesday that it sees results for 2005 coming in a percentage point or two less than its target of breakeven net income. The Salt Lake City-based online closeout retailer expects revenue growth for the quarter to fall within its stated range of 60% to 100%. On an EBITDA (earnings before interest, taxes, depreciation and amortization) basis, the company sees between a breakeven and positive performance for the fourth quarter. It anticipates negative operating cash flows for 2005 due to a build in inventory balances. "We've had a nice holiday season, just not as nice a season as we've had in the past or as I'd hoped for," said Patrick Byrne, the company's president. The stock closed Friday at $33.54, down 3.4%.

[UpInArms]

14. What the MSM refuses to report:

http://www.alternet.org/story/29877/

excerpt:

The economy is balanced on a knife-edge. The Bush administration would like you to forget that the US has a record trade deficit, a record budget deficit, and that the housing market--the one thing that's kept the US economy afloat for the past three years--is beginning to cool a little too quickly for comfort. Republican attempts to balance the budget on the backs of poor people while trying to make Bush's tax cuts permanent have garnered little attention from the press. And so has the fact that China and Japan own most of our public debt. While Bush's approval ratings rise and fall with the price of oil, a very cold winter is hitting Americans in the pocketbooks, and the press can only talk about the economy "steaming full-speed ahead." Uh huh.

<snip>

Republican corruption scandals. Some four dozen Congressmen, mostly Republican, have been confirmed as taking money from Jack Abramoff or his clients at about the same time they took legislative action favorable to Abramoff or his clients. Tom DeLay and Jack Abramoff are just the tip of the iceberg, but our compliant press has trouble seeing even that much. Now the Supreme Court is reviewing the Texas redistricting scheme that helped the Republicans win a bigger majority in the House--a scheme that was undertaken by the Republicans after their own Justice Department had ruled it unconstitutional. This should be a much bigger scandal than it currently is.

...more...

[Media_Lies_Daily]

17. Excellent reminders....thanks!

[UpInArms]

16. Liquidating Enron's Maze of Partnerships Could Cost More Than $1 Billion

http://www.washingtonpost.com/wp-dyn/content/article/2005/12/26/AR2005122600681_pf.html

Four years after Enron Corp. collapsed, the Houston energy trader clings to life as "the financial equivalent of a Superfund site," its chairman said.

New managers are struggling to clean up after the firm's December 2001 bankruptcy -- a process they say is likely to run into 2008. Two operating divisions must be unloaded. Lawsuits against banks that helped the company hide debt must be settled or brought to trial. Leftover cash must be dispensed to creditors claiming some $60 billion.

<snip>

The company also employs 30 more people at a warehouse on the outskirts of town, where they oversee document requests from lawyers and investigators. A federal grand jury continues to hear evidence about wrongdoing at Enron. Board members say it is impossible to predict how much Enron's 30,000 creditors will ultimately receive. They continue to sift through claims, which once reached $1 trillion. Eventually, they hope to return about 20 cents on the dollar to creditors whose claims they deem valid. Disbursals are planned twice a year.

...more...

[UpInArms]

19. Krispy Kreme store closings

9:23am 12/27/05 KRISPY KREME NEW ENGLAND FIRM COVERED MA, CT AND RI

9:22am 12/27/05 KRISPY KREME NEW ENGLAND FRANCHISEE CLOSES LAST 3 STORES

9:22am 12/27/05 KRISPY KREME NEW ENGLAND FIRM TO WIND DOWN BUSINESS

9:19am 12/27/05 KRISPY KREME PHILADELPHIA UNIT CLOSES LAST 4 LOCATIONS

[UpInArms]

20. pre-opening blather

09:15 am : S&P futures vs fair value: +4.2. Nasdaq futures vs fair value: +8.0.

09:00 am : S&P futures vs fair value: +4.4. Nasdaq futures vs fair value: +8.5. Bullish bias persists in pre-market trading amid expectations of a traditional year-end rally. While the seven-day Santa Claus rally technically began last Friday, it may have been awaiting some optimism about holiday sales before kicking into full gear, which is what the futures market currently indicates in the early going.

08:30 am : S&P futures vs fair value: +4.5. Nasdaq futures vs fair value: +8.0. Despite a lack of notable earnings and economic data to set a more definitive tone for trading, futures indications still hold comfortably above fair value and underpin a positive underlying sentiment. Aside from retailers garnering attention following reaffirmed 2-4% Dec. comps growth from Wal-Mart (WMT) and Amazon.com (AMZN) saying holiday sales hit a record, Health Care should also be in focus. Guidant (GDT) lowered its Q4 outlook and guided FY06 EPS below consensus while Bristol-Myers Squibb (BMY) received FDA approval for Orencia.

08:01 am : S&P futures vs fair value: +4.9. Nasdaq futures vs fair value: +9.0. Futures market versus fair value suggests a higher open for the cash market. Investors returning from the long holiday weekend appear to be embracing a report that showed holiday spending surged 8.7% ahead of last year. Perhaps also improving underlying sentiment has been a 1.0% pullback in oil prices.

[UpInArms]

22. 9:44 EST numbers and blather from La La Land

Dow 10,914.75 +31.48 (+0.29%)
Nasdaq 2,258.98 +9.56 (+0.42%)
S&P 500 1,271.17 +2.51 (+0.20%)
10-Yr Bond 4.393 +0.13 (+0.30%)

NYSE Volume 111,343,000
Nasdaq Volume 105,889,000

09:40 am : Market opens modestly higher as investors returning from a long holiday weekend welcome early projections of a strong holiday shopping season for retailers. According to the SpendingPulse report compiled by MasterCard, holiday spending surged 8.7% versus last year. While we are highly skeptical of a report based on credit card data as an indicator of overall retail sales, it is hard to deny that the report, which could be getting added attention in the absence of notable earnings and economic data, does perhaps provide a piece of data that suggests a good holiday season. DJ30 +29.46 NASDAQ +9.41 SP500 +2.43 NASDAQ Vol 76 mln NYSE Vol 48 mln

[UpInArms]

23. thoughts on that credit card spending report:

Is it possible that people are just charging their utility bills and groceries? Most of those places are now taking charge card payments :eyes:

This may not be a shopping thing at all - it may just be a "cash flow" (as in more going out than coming in) issue :eyes:

[UpInArms]

24. A new Gilded Age in Congress

http://www.concordmonitor.com/apps/pbcs.dll/article?AID=/20051227/REPOSITORY/512270310/1003/BUSINESS

excerpt:

Lord knows, a housecleaning in the Capitol is definitely in order. But the Abramoff scandal is just part of the corruption of our political system. There is another level of special-interest influence that cannot be handled by prosecutors: Only the voters can render a judgment on a politics of favoritism that has created a new Gilded Age. It's clear that the national government has placed itself squarely on the side of the wealthy, the privileged and the connected.

Rarely does a single action by Congress serve as so powerful an example of how the system is working. The recent budget bill, which squeaked through the House and the Senate just before Christmas, is a road map of insider dealing. It shows that when choices have to be made, the interests of the poor and the middle class fall before the wishes of interest groups with powerful lobbies and awesome piles of campaign money to distribute.

Republican majorities in both the Senate and the House insisted that they wanted to cut the federal budget. But the Senate and House offered competing plans for achieving savings. When it came time to meld the two proposals together, almost every choice congressional leaders made favored the interest groups.

<snip>

Ah, say their defenders, but these cuts will be good for poor people. According to The New York Times, Republican Rep. Joe Barton of Texas, the architect of the Medicaid proposals, said the higher co-payments were needed to "encourage personal responsibility" among low-income people. Spoken like a congressman who never has to worry about his taxpayer-provided health coverage.

And that is just one instance among many of where corporate interests were shielded from cuts while student loan and child support enforcement programs were sliced. Shortly before the bill came to the House floor, Republicans leaders, at the insistence of a group of Ohio GOP members, dropped a $1.9 billion cut that would have changed Medicare payments to oxygen manufacturers. The main beneficiary of this change was the Invacare Corp. of Elyria, Ohio.

...more...

[UpInArms]

25. the nasty fingerprints of KKKarl Rove

(from the artile referenced above)

Republican Sen. Norm Coleman of Minnesota, who voted against the original Senate budget bill because it was too stringent on the poor, voted for the even tougher version. According to Congress Daily, Coleman backed the final budget "after negotiators took out cuts affecting his state's sugar beet growers." Coleman told the paper: "Karl Rove called me and asked what I wanted. A few hours later it was out of the bill."

[JNelson6563]

28. I marvel at how desperate

the cheerleaders on TV seem to be to find any fragment to grasp onto as a promising sign that things are simply marvelous!

Of course for the folks at the top they are. It's the unwashed massed that need convincing.....

Lots of interesting info posted today, as usual. Cheers Marketeers! :toast:

Julie

[ozymandius]

29. lunchtime check-in

11:44
Dow 10,868.86 -14.41 (-0.13%)
Nasdaq 2,238.81 -10.61 (-0.47%)
S&P 500 1,264.15 -4.51 (-0.36%)
10-Yr Bond 43.76 -0.04 (-0.09%)
NYSE Volume 577,845,000
Nasdaq Volume 514,123,000

11:30 am : Indices now languish near session lows as the S&P and Nasdaq slip below the unchanged mark for the first time this morning. While weakness in semiconductor, software, networking and biotech continue to pressure the Nasdaq, the absence of leadership in Energy has perhaps weighed most heavily on the S&P 500. Oil prices have now slipped to their worst levels of the morning, knocking Energy down 2.6% and all 29 of the sector's components even further into negative territory. BTK -0.4% DJ30 +4.09 NASDAQ -7.18 SOX -0.3% SP500 -2.57 XOI -2.5% NASDAQ Dec/Adv/Vol 1640/1220/458 mln NYSE Dec/Adv/Vol 1443/1636/354 mln

[ozymandius]

30. OMG! dropping like a lead bubble

12:14
Dow 10,829.33 -53.94 (-0.50%)
Nasdaq 2,232.24 -17.18 (-0.76%)
S&P 500 1,260.88 -7.78 (-0.61%)
10-Yr Bond 43.78 -0.02 (-0.05%)
NYSE Volume 688,725,000
Nasdaq Volume 611,780,000

12:00 pm : Market extends its reach into negative territory midday as the absence of leadership in Energy, and perhaps a lack of scheduled earnings and economic data to provide more direction to trading, prompt broad-based consolidation. While early projections of a strong holiday shopping season, according to a MasterCard SpendingPulse report that showed holiday spending rose 8.7%, underpinned a positive underlying tone at the onset, a 1.5% plunge in oil prices has provided an impetus for investors to lock in huge gains across the energy complex.

[UpInArms]

31. 1:07 EST red numbers - inane blather

Dow 10,833.71 -49.56 (-0.46%)
Nasdaq 2,234.27 -15.15 (-0.67%)
S&P 500 1,261.67 -6.99 (-0.55%)
10-Yr Bond 4.370 -0.10 (-0.23%)

NYSE Volume 833,929,000
Nasdaq Volume 726,215,000

1:00 pm : Little changed since the last update as virtually every industry succumbs to selling pressure. Leisure Products, however, has turned in a strong performance, led by a 1.7% surge in Brunswick Corp (BC 41.03 +0.63). Home Furnishings, amid an analyst upgrade-induced rebound on Bed Bath & Beyond (BBBY 36.84 +0.30), following last Friday's 12% drubbing, has also traded higher while Airlines has benefited from plummeting oil prices. DJ30 -48.50 NASDAQ -15.95 SP500 -7.06 NASDAQ Dec/Adv/Vol 2040/932/712 mln NYSE Dec/Adv/Vol 1970/1233/582 mln

12:30 pm : Indices continue to weaken as the afternoon session gets underway. While a 2.6% drubbing in Energy remains the biggest drag on equities, a recent reversal in Financial -- the most influential of the 10 economic sectors -- has pushed the major averages even further below the flat line. Despite relative strength in Treasuries, which typically bodes well for the rate-sensitive sector, a 30% year-to-date gain in the brokerage space has incited investors to lock in some profits before year's end. DJ30 -41.98 NASDAQ -13.77 SP500 -6.10 NASDAQ Dec/Adv/Vol 2045/907/650 mln NYSE Dec/Adv/Vol 1954/1228/536 mln

[UpInArms]

33. Chicago Fed Midwest factory activity down in Nov

http://today.reuters.com/investing/financeArticle.aspx?type=bondsNews&storyID=2005-12-27T170026Z_01_CHB000125_RTRIDST_0_ECONOMY-MIDWEST.XML

CHICAGO, Dec 27 (Reuters) - The Chicago Federal Reserve
Bank said on Tuesday its Midwest manufacturing index fell in
November, hurt by weakness in the auto sector.

The index fell 0.6 percent to 112.1 from a revised 112.8 in
October, originally reported at 106.6. That compares with a 0.4
percent increase in national manufacturing in November.

Compared with a year earlier, Midwest output was 3.0
percent higher, trailing the 4.1 percent national increase.

Midwest auto sector output fell 3.0 percent in November
after rising 4.7 percent in October, faring worse than the 1.7
percent nationwide decline. For the 12-month period, the
region's auto output rose by 1.8 percent against a 4.2 percent
percent national increase.

...more..

[Media_Lies_Daily]

35. I think we may have just reached the tipping point.

[greiner3]

36. 1:30 report, DOW IND down 75+ to 10,807 n/t

[Roland99]

37. "Catch me I'm falling."

DJIA 10,795.10 -88.20
Nasdaq 2,231.60 -17.82
S&P 500 1,258.71 -9.95
Russell 2000 678.11 -8.33
CBOE Volatility 11.45 1.18
30 Yr Bond 4.50 -0.05
10 Yr Bond 4.34 0.0

[ozymandius]

38. 3:06!

Dow 10,797.63 -85.64 (-0.79%)
Nasdaq 2,231.71 -17.71 (-0.79%)
S&P 500 1,259.03 -9.63 (-0.76%)
10-Yr Bond 43.43 -0.37 (-0.84%)
NYSE Volume 1,204,914,000
Nasdaq Volume 1,010,363,000

[UpInArms]

39. US stocks fall as oil slides, online retail off

Looks like those "online retailers" got an empty sack, too.

http://today.reuters.com/investing/financeArticle.aspx?type=bondsNews&storyID=2005-12-27T190448Z_01_N27336050_RTRIDST_0_MARKETS-STOCKS-UPDATE-8-URGENT.XML

NEW YORK, Dec 27 (Reuters) - U.S. stocks added to losses on Tuesday, with the tech-laced Nasdaq Composite Index sliding 1 percent, as falling crude oil prices dragged on the energy sector.

Online retailers' shares fell in the first trading day after Christmas, as some said sales during the holiday shopping season were slower this year than in the past.

...more...

[UpInArms]

40. 3:46 EST fierce bleeding on the floor

Dow 10,787.72 -95.55 (-0.88%)
Nasdaq 2,229.63 -19.79 (-0.88%)
S&P 500 1,258.02 -10.64 (-0.84%)
10-Yr Bond 4.341 -0.39 (-0.89%)

NYSE Volume 1,377,836,000
Nasdaq Volume 1,136,906,000

3:30 pm : Selling remains the driving mantra heading into the close as the three major averages appear poised to finish near their worst levels of the day. Losing even more ground, however, has been the Russell 2000. Even though small cap stocks are less dependent on energy prices, the fact that they are on pace to turn in a better performance than blue chips for a sixth consecutive year has been enough of an incentive to lock in some gains should consolidation efforts continue into the New Year. DJ30 -88.13 NASDAQ -18.20 R2K -1.2% SP500 -9.75 NASDAQ Dec/Adv/Vol 2189/868/1.06 bln NYSE Dec/Adv/Vol 2237/1065/956 mln

3:00 pm : Recent recovery efforts are short-lived as the indices retrace earlier lows and investors show little response to the close of commodities trading. While weakness across the energy complex typically bodes well for the market, the fact that natural gas lost a whopping 10% and is down more than 25% over the last few sessions has taken its toll on the Energy sector. To wit, refiners, explorers and drillers -- the year's top three performing S&P industry groups -- have been today's worst performers, as investors lock in some of the groups' stellar 79%, 66% and 54% year-to-date gains, respectively. DJ30 -88.13 NASDAQ -17.82 SP500 -9.92 NASDAQ Dec/Adv/Vol 2126/902/992 mln NYSE Dec/Adv/Vol 2190/1107/862 mln

[UpInArms]

41. Stocks hurt by recession jitters

http://www.marketwatch.com/news/print_story.asp?print=1&guid={C1244176-575A-4C12-A226-988C067F92AB}&siteid=mktw

NEW YORK (MarketWatch) -- U.S. stocks fell sharply and broadly Tuesday as developments in the bond market that have typically foreshadowed economic slowdowns spooked investors, and overshadowed a sharp drop in energy prices.

The Treasury yield curve inverted -- shorter-term maturities yielded higher interest rates than longer-term maturities -- for the first time in five years. In the past, inverted yield curves have usually preceded recessions.

The Dow Jones Industrials Average ($INDU) was down 84 points at a two-week low of 10,799, with 26 of 30 components contributing to losses, and was in danger of suffering its worst one-day point loss in 2 months. The blue chip barometer, which had been up as much as 49 points earlier in the session, was briefly down triple digits in intraday trading.

<snip>

"The inversion isn't a good sign," Mendelsohn added, as it suggests liquidity is being drained from the market at a rapid rate.

He feels the market is telling the Federal Reserve that they may have raised interest rates too far, considering the relative rate of change in overnight rates since the current rate hike cycle began "has been enormous."

...more...

[ozymandius]

42. quittin' time

Dow 10,777.77 -105.50 (-0.97%)
Nasdaq 2,226.89 -22.53 (-1.00%)
S&P 500 1,256.54 -12.12 (-0.96%)
10-Yr Bond 43.41 -0.39 (-0.89%)
NYSE Volume 1,540,466,000
Nasdaq Volume 1,279,084,000

4:20 pm : The major averages opened higher amid upbeat holiday spending data and falling oil prices, but continued deterioration in the latter eventually compelled a limited number of investors to consolidate gains across the board, as the indices closed at session lows and all ten economic sectors lost ground. As is typically the case for the week wedged between Christmas and New Year's, total volumes were below average, providing less conviction behind today's broad-based move into negative territory which resulted in the Dow posting its largest one-day loss since late October.

While many initially thought a MasterCard SpendingPulse report that showed holiday spending rose 8.7% might help ignite a traditional year-end rally, skepticism behind the report -- one based on data excluded in more widely-following consumption reports and perhaps garnering added attention in the absence of notable earnings and economic data -- eventually overshadowed its potential importance. Early optimism also incited by a decline in crude quickly faded as participants used weakness across the energy complex as a reason to lock in profits from this year's best performing sector -- Energy. Natural gas lost a whopping 10% and is down more than 25% over the last few sessions, weighing heavily on explorers and drillers -- two of the year's top three performing S&P industry groups.

While falling bond yields typically bode well for rate-sensitive areas like Financial and Utilities, neither sector was able to take advantage of the 10-yr note (+09/32) yield slipping to 4.33%. Perhaps that was because the yield curve between the 2-yr and 10-yr notes became inverted for the first time in five years, a signal that has preceded economic slowdowns in the past. Technology was another influential leader to the downside as consolidation in semiconductor and computer storage stocks was accompanied by weakness in software, hardware and networking.

Despite Bristol-Myers Squibb (BMY 23.09 +0.15) receiving FDA approval for its Orencia drug, Health Care also lost ground as the news was viewed as company-specific and was eventually outdone by Guidant's (GDT 64.69 -2.29) Q4 warning as well as profit-taking in HMOs, health care suppliers and biotech. Consumer Staples was also weak as participants were unenthusiastic about Wal-Mart's (WMT 47.73 -0.61) ability to post Dec. comps near the high end of its reaffirmed 2-4% same-store sales outlook. BTK -1.3% DJ30 -105.50 DJTA -1.2% DJUA -0.6% DOT -1.0% NASDAQ -22.53 NQ100 -0.9% R2K -1.4% SOX -1.3% SP400 -1.2% SP500 -12.12 XOI -2.8% NASDAQ Dec/Adv/Vol 2231/851/1.27 bln NYSE Dec/Adv/Vol 2322/1023/1.15 bln