STOCK MARKET WATCH, Thursday 29 December

[ozymandius]

Thursday December 29, 2005

COUNTING THE DAYS
DAYS REMAINING IN THE * REGIME 3 YEARS, 24 DAYS
DAYS SINCE DEMOCRACY DIED (12/12/00) 1834 DAYS
WHERE'S OSAMA BIN-LADEN? 1533 DAYS
DAYS SINCE ENRON COLLAPSE = 1495
Number of Enron Execs in handcuffs = 19
ENRON EXECS CONVICTED = 3
Other Arrests of Execs = 54


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




AT THE CLOSING BELL WHEN BUSH TOOK OFFICE on January 22, 2001
Dow - 10,578.24
Nasdaq - 2,757.91
S&P 500 - 1,342.90
Oil - $27.69/bbl
Gold - $266.70/oz.

AT THE CLOSING BELL ON December 28, 2005

Dow... 10,796.26 +18.49 (+0.17%)
Nasdaq... 2,228.94 +2.05 (+0.09%)
S&P 500... 1,258.17 +1.63 (+0.13%)
10-Yr Bond... 4.38% +0.04 (+0.85%)
Gold future... 516.30 +6.20 (+1.20%)






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. US stock futures rise ahead of data

LONDON (Reuters) - U.S. stock futures rose on Thursday, indicating an opening rise on Wall Street, with Chicago PMI and jobless data to be eyed later after bullish consumer confidence figures helped to boost stocks in the previous session.

-cut-

By 1040 GMT, U.S. stock futures were showing gains around 0.1 percent for the three main indexes , with Japan's Nikkei (^N225 - news) and Europe's FTSEurofirst 300 index (^FTEU3 - news) hitting multi-year highs and offering support.

Volume is expected to be lower than normal with many investors away because of the Christmas and New Year holidays. No S&P 500 companies are expected to report earnings.

more...

[ozymandius]

2. Retail Store Closures to Follow Sales

Just as post-holiday sales are sure to follow Christmas, there's a long tradition of store closings following the big year-end sales as weak and struggling retailers call it quits.

This year will be no different, with what looks to have been a less-than-stellar holiday retail season combining with a flurry of industry mergers to put even more stores than usual on the endangered list.

Based on the numbers through Christmas, retailers are on track to post a modest 3.3% increase in annual sales over last year, said analyst Britt Beemer, chairman of America's Research Group, a Charleston, S.C., consumer research firm.

"It might be a shade better than last year, but overall, I would say that retailers are going to be disappointed," Beemer said Monday.

more...

[ozymandius]

3. The Day After Christmas, Shoppers Take a Holiday

Many retailers hoping for a big finish to the holiday season instead had lighter-than-expected crowds over the long Christmas weekend, according to anecdotal reports, leaving stores to rely heavily on the next few days to pump up December sales.

Explanations for the lackluster finish varied: an unusually warm winter hurt cold-weather clothing sales, greater gift card use delayed purchases and higher energy costs discouraged splurges.

-cut-

In something of a reversal, discount retailers appeared headed for one of their strongest holidays in years, while upscale retailers, which have seemed invulnerable for the last two seasons, appeared to falter, if only slightly.

more...

http://www.nytimes.com/2005/12/27/business/27shop.html

[Maeve]

6. A couple of anecdotal reports to back this up

First, I was watching CNN Monday morning and they were reporting from a Target store on the "many happy returns"--the place was dead.

Second, I had a return to make at the local Walmart and it was no busier than most Mondays (relatively dead). No lines, no crowds. The only place I've been in this week that was crowded was the Media Play and they are closing, everything on sale 20-60%

[ozymandius]

41. Howdy Maeve. I saw the same activity in Atlanta.

We drove past several big box retailers in our area (North Atlanta). Our stops inside two big boxes were unfettered by either crowds on the sales floor or by lines at the checkout. Smaller retailers were the same. The parking lots outside Pier 1, Target, Home Depot, Lowes and other major stores stood mostly vacant.

[UpInArms]

33. Cash registers didn't jingle most retailers' bells

http://www.miami.com/mld/miamiherald/13504655.htm

It was apparently a ho-ho-hum holiday season for South Florida retailers.

Last-minute mall traffic was strong but, overall, sales for the season were far from robust -- a trend reflecting national retail sales estimates released Wednesday.

According to The International Council of Shopping Centers, sales for the week before Christmas climbed 3.9 percent over the same week a year ago. The group, which measures same-store sales, reaffirmed its forecast of a 3 percent to 3.5 percent gain for the November-December shopping season, down from last season's 5.3 percent gain.

Although hard data won't be available from local merchants for another two weeks, Herbert A. Leeds, an Aventura-based retail consultant, said early surveys of the landscape showed mixed, but disappointing results.

<snip>

The war in Iraq, political turmoil and high gas prices all influence the collective consumer psyche when it comes to making holiday purchases, he said.

...more...

[ozymandius]

4. Today's Reports

8:30 AM Initial Claims 12/24
Briefing Forecast 320K
Market Expects 322K
Prior 318K

10:00 AM Chicago PMI Dec
Briefing Forecast 59.5
Market Expects 60.0
Prior 61.7

10:00 AM Existing Home Sales Nov
Briefing Forecast 7.10M
Market Expects 7.00M
Prior 7.09M

10:00 AM Help-Wanted Index Nov
Briefing Forecast 39
Market Expects 39
Prior 38

10:30 AM Crude Inventories 12/23
Prior 1300K

[UpInArms]

10. Initial Claims in at 322,000 (up 4K - last wk rev'd + 1K)

8:30am 12/29/05 U.S. INSURED UNEMPLOYMENT RATE UNCHANGED AT 2.1%

8:30am 12/29/05 U.S. CONTINUING JOBLESS CLAIMS UP 85,000 TO 2.72M

8:30am 12/29/05 U.S. 4-WEEK AVG JOBLESS CLAIMS UP 250 TO 325,000

8:30am 12/29/05 U.S. WEEKLY INITIAL JOBLESS CLAIMS UP 3,000 TO 322,000

http://www.marketwatch.com/news/story.asp?guid=%7B92C0352C%2D7FDA%2D4A2B%2DB573%2D9585F1112807%7D&symbol=&siteid=mktw

WASHINGTON (MarketWatch) - New claims for U.S. state unemployment benefits nosed higher by 3,000 to a seasonally adjusted 322,000 in the week ending Dec. 24, the Labor Department said Thursday.

The four-week average of new claims was essentially unchanged at 325,000, about 10,000 more than the level prevailing just before devastating hurricanes struck the Gulf Coast in August and September.

The four-week average is considered a better indicator of the health of the labor market, since it smoothes out one-time distortions caused by holidays, weather and strikes.

New claims have stabilized in the past two months in a tight band between 320,000 and 335,000 after surging to 435,000 after the hurricanes.

New filings in this range are consistent with steady job growth of about 200,000 per month, economists say.

Meanwhile, the number of people collecting weekly benefit checks rose by 85,000 in the week ending Dec. 17 to 2.715 million, the most in four weeks. It's the third increase in a row. The week coincides with the survey week for the Labor Department's monthly employment report.

...more...

[UpInArms]

23. US Nov Home Sales fall 1.7% - Help-Wanted Index @ 39

10:00am 12/29/05 CONFERENCE BOARD: HELP-WANTED AD INDEX 39 VS NOVEMBER'S 38

10:01am 12/29/05 U.S. NOVEMBER EXISTING HOME PRICES UP 13.2% YEAR OVER YEAR

10:01am 12/29/05 U.S. EXISTING HOME INVENTORY AT 19-YEAR HIGH

10:01am 12/29/05 U.S. NOVEMBER EXISTING HOME SALES FALL 1.7% TO 6.97M

[UpInArms]

25. US Nov existing home sales fall, inventories rise

http://today.reuters.com/investing/financeArticle.aspx?type=bondsNews&storyID=2005-12-29T150237Z_01_N29318182_RTRIDST_0_ECONOMY-HOMES-URGENT.XML

WASHINGTON, Dec 29 (Reuters) - Sales of existing U.S. homes fell 1.7 percent in November to a 6.97 million unit rate as inventories hit their highest point in more than 19 years, according to trade group data on Thursday showing a cool-down in housing.

November's sales rate compared with an unrevised 7.09 million unit pace in October and marked the first time the pace of sales has dipped below 7 million units since March, the National Association of Realtors said.

The existing homes figure includes both single-family homes and condominiums.

Analysts had expected overall sales to decline to a 7.00 million unit pace in November.

Inventories rose 1.2 percent to 2.903 million existing homes available for sale in November -- the biggest supply since April 1986, when inventories hit 3.04 million units, the group said.

...more...

[UpInArms]

24. Dec Chicago PMI @ 61.5

10:03am 12/29/05 DECEMBER CHICAGO PMI 61.5 VS. 60.4 EXPECTED

[UpInArms]

28. more info:

http://www.marketwatch.com/news/newsfinder/pulseone.asp?siteid=mktw&guid=%7B7BC395CD-28AA-4B9D-ACAA-E0397443FDF9%7D&

CHICAGO (MarketWatch) -- A measure of business activity in and around Chicago was slightly stronger than expected in December. The Chicago Purchasing Managers Index read 61.5 this month, near November's 61.7. The average of a MarketWatch survey was for a reading of 60.4. Readings over 50 denote expansion. Key for Federal Reserve watchers, prices paid slipped to a still-strong 83.3 from 94.1.

[UpInArms]

30. DOE Petroleum Inventories Report:

10:30am 12/29/05 CRUDE STOCKS UP 100,000 BARRELS IN LATEST WEEK: DOE

10:30am 12/29/05 GASOLINE STOCKS DOWN 1.2M BARRELS IN LATEST WEEK: DOE

10:31am 12/29/05 DISTILLATE STOCKS DOWN 900,000 BARRELS IN LATEST WEEK: DOE

[ozymandius]

5. Energy Prices Rise on Official's Remarks

VIENNA, Austria - Oil prices slipped but stayed close to US$60 on Thursday after
Iran's oil minister said OPEC should consider cutting production next month.

The release of U.S. inventory data later in the day with expectations of across-the board stock draws also helped markets.

-cut-

The price of NYMEX crude is about 16 percent below its Aug. 30 high of US$70.85. Oil prices remained above US$60 a barrel for months after Hurricane Katrina disrupted Gulf of Mexico oil and gas output and dipped below US$60 recently amid mild winter weather in the United States.

Heating oil and gasoline were essentially steady at US$1.6835 a gallon (3.8 liters) and US$1.5915 a gallon respectively. Natural gas was down more than 16 cents to US$11.47 per 1,000 cubic feet.

more

[UpInArms]

34. Crude @ $59.70 bbl - NatGas @ $11.35 mln btus

10:37am 12/29/05 CRUDE DOWN 12C AT $59.70 A BARREL AFTER DATA

10:37am 12/29/05 NATURAL GAS DOWN 30.7C AT $11.35 PER MILLION BTUS

[UpInArms]

7. daily dollar watch

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

Last trade 91.16 Change +0.04 (+0.04%)

Chicago PMI Expected To Continue Last Month's Decrease

http://www.dailyfx.com/story/calendar/key_events/5781_tomorrows_economic_releases_chicago_pmi_expected_to_continue.html

hicago Purchasing Managers’ Index (DEC) (15:00 GMT, 10:00 EST)
Consensus: 60.0
Previous: 61.7

Outlook: The Chicago Business Barometer is expected to move down to 60.0 from 61.7 in December, which would be the index’s second consecutive fall. Although the regional indices do not always change congruently, the upward moves in the Philly Fed and Empire State surveys does give some hope for the Chicago region. One of the key component indices to watch is employment. Both of the two other regional surveys saw declines in this area and if Chicago reports the same trend, then next Friday’s release of national nonfarm payroll changes is more likely to show weakness in manufacturing employment. The two other previously released regional surveys also reported declines in prices paid and the Chicago survey will probably follow suit. Crude prices did see a rise early in December, but it was fairly short-lived and prices receded by the second half of the month. In metals, although copper and aluminum prices rose to new highs by the start of December, they’ve remained fairly flat since then. The national ISM purchasing managers’ index is expected to be released on January 2nd.

Previous: In November, the Chicago PMI dropped slightly to 61.7 from 62.9. Though this was better than the expected fall to 60.0, the five component indices reveal some troubling information with production, new orders, and employment all decreasing. In particular, the employment index moved to 50.3, which shows that employment growth is barely crawling along with the index being dangerously close to the neutral level of 50. Only order backlogs and supplier deliveries improved slightly. On top of this, the prices paid index soared to 94.1 from 79.6. It is now at its highest level in sixteen years. However, this did not feed into a rise in aggregate national producer price inflation. Energy prices had declined greatly over the past few months. Also, both the national and Philadelphia region’s purchasing manager surveys indicated that prices had fallen in November. Overall, although business conditions had not deteriorated significantly in the month, the softening production and order growth revealed by the underlying figures show that conditions are still under pressure.

[UpInArms]

8. GTC Growth Fund Hedge-fund manager charged with insider trading

http://www.marketwatch.com/news/story.asp?guid=%7B44240BE7%2D0701%2D47FA%2DBC8E%2DBDD00D48EBDA%7D&symbol=&siteid=mktw

BOSTON (MarketWatch) -- A hedge-fund manager was charged in federal court Wednesday with insider trading for allegedly buying Charter One Financial Inc. stock last year after a Citizens Financial Group Inc. employee tipped him to its plans to acquire Cleveland-based Charter One.

U.S. Attorney Michael Sullivan and Kenneth Kaiser, special agent in charge of the Federal Bureau of Investigation in New England, announced in a press release that Michael Tom, 36, of Waltham, Mass., has been charged with five counts of insider trading.

Tom managed and partly owned a Burlington, Mass.-based hedge fund called GTC Growth Fund, the release said. He started the fund in December 2003 and made its investment decisions.

Previously, Tom was a senior analyst in the credit portfolio management group, or CPMG, at the Boston offices of Citizens. Among other things, CPMG was responsible for investigations of banks that Citizens sought to acquire, the release said.

<snip>

If convicted, Tom faces a maximum of 10 years in prison, followed by three years of supervised release and a $1 million fine, the release said.

...more...

[UpInArms]

9. The worst ethics breaches, best moral deeds of 2005

http://www.marketwatch.com/news/story.asp?guid=%7BBC407EAC%2D9264%2D4301%2D8FCC%2D047308A2F79B%7D&symbol=&siteid=mktw

SANTA MONICA, Calif. (MarketWatch) -- Maybe next year people will have learned their lessons from the ethical breaches committed this year, transgressions across politics, the media and big business.

If anything, 2005 was a master class in veiled morality, obfuscation and wicked manipulation. Still, many people forged an admirable path. Here are my picks for the year's worst and best ethics awards.

The 10 worst ethics breaches
1. President Bush -- for manipulating the law to allow spying on American citizens. (manipulating??? how about a bit of honesty here - not only "unethical", but ILLEGAL!
2. Former Enron CEO Kenneth Lay -- for a rationalization campaign that tries to convince people he is not the face of corporate corruption and should not go to jail.
3. Bob Woodward -- for hiding the identity of a source from his editors at the Washington Post while colleagues holding the same information are sent off to jail.

...more...

[UpInArms]

11. Printing Press Report:Fed adds U.S. banking reserves via 14-day repos

http://today.reuters.com/investing/financeArticle.aspx?type=bondsNews&storyID=2005-12-29T132359Z_01_N29301304_RTRIDST_0_MARKETS-FED-OPERATIONS.XML

NEW YORK, Dec 29 (Reuters) - The Federal Reserve said on Thursday it added temporary reserves to the U.S. banking system through 14-day system repurchase agreements.

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]

12. Treasurys gain after jobless data, ahead of housing report

http://www.marketwatch.com/news/newsfinder/pulseone.asp?dateid=38715.3637420949-855821765&siteID=mktw&scid=0&doctype=806&

CHICAGO (MarketWatch) -- Treasurys gained modestly following a report that showed a small rise in the weekly tally of jobless benefits claims. The benchmark 10-year note was last 2/32 higher at 101 2/32. The small change in price left its yield little changed near 4.37%. The 2-year note was unchanged in price, yielding 4.36%. Treasury prices were firmer already in early trading, ahead of a report on U.S. existing home activity that's expected to show slower sales. Gains were checked ahead of the government's auction of $20 billion in 2-year notes and a Chicago-area business gauge expected to show improvement.

[UpInArms]

16. Experts: Bond Market Bears Close Watching

http://www.latimes.com/business/investing/wire/sns-ap-topsy-turvy-bonds,1,1406717.story?coll=sns-ap-investing-headlines

WASHINGTON — Whether a harbinger of troubled economic times or a quirk due to light trading around the holidays, this week's flip in the bond market -- where long-term investments for a while fetched lower interest rates than short-term ones -- bears close watching.

Yields, or the return, on 10-year Treasury notes on Tuesday dropped slightly below the yields on two-year notes, marking the first time this has happened in five years. This phenomenon, also evident for part of the trading session Wednesday, is called an "inverted yield curve" and in the past it has often preceded a recession.

Typically longer-term instruments carry higher interest rates than shorter-term ones to compensate investors for tying up their money over a longer time frame -- a decision that can be fraught with uncertainty.

When the situation reverses, it signals that bond investors are betting that interest rates down the road will move lower, something that can happen in the event the economy were to slow down or slip into a recession, thus blunting any concern about inflation.

<snip>

"When the yield curve inverts, banks' funding costs rise above what they earn by lending. This can produce a credit crunch," said Greg McBride, senior financial analyst at Bankrate.com.

...more...

[UpInArms]

20. Printing Press Report: Fed adds reserves via overnight system repos

http://today.reuters.com/investing/financeArticle.aspx?type=bondsNews&storyID=2005-12-29T143514Z_01_N29171907_RTRIDST_0_MARKETS-FED-OPERATIONS-UPDATE-1.XML

NEW YORK, Dec 29 (Reuters) - The Federal Reserve said on Thursday it added temporary reserves to the U.S. banking system through overnight system repurchase agreements.

Earlier, the Fed added temporary reserves through 14-day system repurchase agreements.

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]

21. U.S. Treasuries mixed, yield curve remains flat

http://today.reuters.com/PrinterFriendlyPopup.aspx?type=bondsNews&storyID=uri:2005-12-29T143742Z_01_N29327631_RTRIDST_0_MARKETS-BONDS.XML

NEW YORK, Dec 29 (Reuters) - Treasury debt prices were mixed in a tight range on Thursday, with traders distracted by this week's yield curve inversion ignoring data showing a slight rise in first-time jobless claims last week.

The two-year/10-year yield spread continued to move in and out of inversion, with the moves exacerbated by light participation around the holidays.

Jobless claims rose to 322,000 in the week ended Dec. 24 from 319,000 in the prior week. But the thin holiday market was more interested in Tuesday's inversion of two- amd 10-year rates, the first in five years, and what it means for the economy.

The market also looked past a report showing a slight improvement in business conditions in New York City. The National Association of Purchasing Management-New York survey improved for the third straight month in December to 354.2 from 352.4 in Novmeber.

Other data on Thursday, including a report on business conditions in the Midwest and a snapshot of existing home sales in November -- both due at 10 a.m. (1500 GMT), may influence trading a bit more than the jobless claims data, though many traders expect holiday doldrums to persist.

...more...

[54anickel]

26. Had to dig pretty deep to make 10 best ethical, huh...

7. Saddam Hussein testifiers -- for risking their lives to speak out against the atrocities and despicable human rights violations the former Iraqi president presided over during his regime.

8. Tyco -- for turning its corrupt corporate policies around by revamping the way it conducts business and centering its operations on a far-reaching code of ethics.

10. General Electric -- for the launch of its "Ecoimagination" division and modeling for other companies how saving the planet can still bring a profit.



Not sure I agree with putting the NYC Transit workers strike on the worst list. Sure it was illegal, but unethical? I don't know - it seems our ethics are becoming half-ass-backwards sometimes.


Oops, posted in the wrong spot - should be in reply to post # 9.

[UpInArms]

37. Printing Press Report: U.S. Treasury to sell $32 bln bills on Tuesday

$40 Billion this week, $32 Billion next week -- pretty soon you're talking about real money. :eyes:

http://today.reuters.com/investing/financeArticle.aspx?type=bondsNews&storyID=2005-12-29T160008Z_01_WBT004468_RTRIDST_0_ECONOMY-BILLS-URGENT.XML

WASHINGTON, Dec 29 (Reuters) - The U.S. Treasury Department said on Thursday it will sell $17 billion of three-month bills and $15 billion of six-month bills on Tuesday, Jan. 3.

The bills will be issued on Thursday, Jan. 5.

Proceeds from the sale will be used to refund an estimated $30.78 billion of publicly held 13- and 26-week bills maturing Jan. 5 and to raise about $1.22 billion of new cash.

The three-month bills mature on April 6, while the six-month bills mature on July 6.

The Treasury said $5.30 billion of the three-month bills can be excluded when bidders calculate their net long positions. The net long reporting threshold for the three-month bills is $5.95 billion and for the six-month bills it is $5.25 billion.

...more...


The estimated population of the United States is 298,105,896
so each citizen's share of this debt is $27,464.57.

The National Debt has continued to increase an average of
$2.83 billion per day since September 30, 2005

[UpInArms]

44. Treasurys end mixed; yield curve remains inverted

http://www.marketwatch.com/news/newsfinder/pulseone.asp?dateid=38715.6425760069-855835626&siteID=mktw&scid=0&doctype=806&

CHICAGO (MarketWatch) -- The benchmark 10-year Treasury note finished up 1/32 at 101 1/32, yielding a little changed 4.37%. The note began the day higher in price, then fell after a strong reading for a regional business gauge, before ending firmer. An influx of competing short-term debt after an auction of 2-year notes kept up pressure on the short end of the yield curve. The 2-year note fell 1/32 at 99 24/32, yielding 4.38%.

[UpInArms]

46. Treasuries ease, barely blink after 2-year auction ("tepid" indirect bids)

http://today.reuters.com/investing/financeArticle.aspx?type=bondsNews&storyID=2005-12-29T190846Z_01_N29489026_RTRIDST_0_MARKETS-BONDS-UPDATE-4.XML

NEW YORK, Dec 29 (Reuters) - U.S. Treasury debt prices held modestly lower on Thursday after an auction of new 2-year notes got a warm welcome from primary dealers but a somewhat tepid reception from indirect bidders.

That category includes dealers' customers but also foreign central banks, and has therefore become the center of attention for investors wary of a possible waning of foreign demand for Treasuries.

As the U.S. Treasury borrowed $20 billion to be repaid over two years, investors settled for a high yield of 4.404 percent.

Overall, the sale garnered 2.42 times the number of bids per dollar of debt on offer, well above an average 2.18 for the previous 11 auctions of 2005.

But the indirect category bought only 29.2 percent of the securities, short of a year-to-date average around 35 percent.

...more...

[UpInArms]

13. Gold higher for fifth consecutive session - $518.80 oz

8:31am 12/29/05 GOLD FUTURES UP $2.70 AT $519.10 AN OUNCE

http://www.marketwatch.com/news/newsfinder/pulseone.asp?dateid=38715.3591186227-855821648&siteID=mktw&scid=0&doctype=806&

NEW YORK (MarketWatch) -- Gold futures rose for a fifth day early Thursday, extending their recent gains in light holiday trade. Gold for February delivery was last up $2.50 at $518.80 an ounce. Silver added 2.50 cents to $8.96 an ounce. Other metals were lower with platinum down $8.10 at $963 an ounce, palladium losing $3 to $262 an ounce and copper down 3.60 cents to $2.033 a pound.

[UpInArms]

14. Aid workers 'stole $200,000 Katrina cash'

http://www.timesonline.co.uk/article/0,,11069-1962241,00.html

The American Red Cross was facing fresh embarrassment over its response to Hurricane Katrina today as it emerged that at least 19 agency workers stole more than $200,000 from the victims' fund.

Prosecutors in California have charged 49 people in connection with the fraud in which workers in a Red Cross call centre in Bakersfield are alleged to have handed out code numbers to friends and relatives entitling them to collect relief cheques of up to $1,565 (£908).

Mary Wenger of the US Attorney’s office in Sacramento, California, said today that she expected more charges as the investigation progressed. Ms Wenger said that preliminary calculations suggest at least $200,000 (£116,000) had been stolen, adding: "We expect that figure to grow."

The centre in Bakersfield was the largest of three set up to take calls from victims of Hurricane Katrina - the others were in Niagara Falls, New York, and Falls Church, Virginia.

...more...

[UpInArms]

15. HealthSouth says Scrushy a pillager: AP

http://www.marketwatch.com/news/story.asp?guid=%7BCB466B30-90B2-43A1-9D77-E2F865247587%7D&siteid=google

SAN FRANCISCO (MarketWatch) -- In court papers filed Wednesday, HealthSouth Corp. accused Richard Scrushy, the company's founder and former chief executive officer, of trying to "pillage" the company of more than $100 million by looking for compensation related to his firing, according to media report.

HealthSouth (HLSH) was responding to a suit Scrushy filed earlier this month, the Associated Press reported. Although Scrushy was acquitted of fraud-related charges this summer, the Birmingham, Ala.-based rehabilitation chain said in its counterclaim that he was responsible for inflated financial results that almost drove it to ruin, according to the AP.

In a court document, HealthSouth said Scrushy tried to make it seem that the company was meeting Wall Street's estimates, and then "profited hugely" by selling more than $200 million in stock, as well as drawing millions more in salary, bonuses and options, the AP report said.

...a bit more...

[UpInArms]

17. pre-opening blather

09:00 am : S&P futures vs fair value: +0.5. Nasdaq futures vs fair value: +3.0. Futures indications hovering near their best levels of the morning but still provide little conviction as to whether or not stocks will open on an upbeat note. With regard to sectors in focus, Health Care, particularly drug stocks, should garner some added attention. Morgan Stanley has raised their price target on Merck (MRK), Johnson & Johnson (JNJ) and Guidant (GDT) have scheduled a Jan. 31 shareholder vote regarding their merger and Alkermes (ALKS) and Cephalon (CEPH) received an FDA approvable for Vivitrol.

08:33 am : S&P futures vs fair value: -0.5. Nasdaq futures vs fair value: +1.0. Futures trade holds relatively steady following claims data, still indicating a lackluster open for the indices. Initial claims rose 3K to 322K, matching forecasts, but the market's reaction has been muted as investors may be waiting for the latest reads on regional manufacturing and housing to set a more definitive tone to trading. Bonds have also held firm as the 10-yr note is still up 3 ticks to yield 4.36%.

07:56 am : S&P futures vs fair value: +0.5. Nasdaq futures vs fair value: +2.0. Conviction is lacking in early futures trading as participants await a batch of economic data this morning that includes Weekly Initial Claims (08:30 ET), the Chicago PMI (10:00 ET), and Existing Home Sales (10:00 ET). Also, the Dept. of Energy will release it weekly inventory report at 10:30 ET. Current activity suggests the stock market will start the session on a relatively flat note

[UpInArms]

18. Plea bargain rewrites script for Enron trial

http://www.sltrib.com/business/ci_3351809

WASHINGTON - Enron Corp.'s former top accountant pleaded guilty Wednesday to a single securities fraud charge in exchange for a prison sentence of five to seven years, setting the stage for potentially damaging testimony against onetime chief executives Kenneth Lay and Jeffrey Skilling.

The guilty plea by Richard Causey, 45, gives the Justice Department's Enron Task Force a second key witness to help guide jurors through a maze of complex deals that helped pitch the Houston energy company into bankruptcy.

The agreement essentially rewrites the script for the upcoming fraud trial for Lay and Skilling, the climax of a series of financial scandals that rocked investor confidence and sent markets reeling.

With Causey's help, prosecutors can dispose of weeks of arcane and potentially confusing testimony by other witnesses about accounting issues that are at the heart of their case. For their part, defense lawyers must now prepare to cross-examine a man who strategized with the defense team for years maintaining his innocence.

<snip>

The plea leaves just two men sitting at the defense table for what has been called the most remarkable corporate fraud trial in a generation. Lay and Skilling are unlikely to resolve the charges against them short of a jury verdict, experts say. Lay signaled his take-no-prisoners approach in a blistering speech in Houston earlier this month, when he blasted prosecutors.

...more...

[UpInArms]

32. Crucial witness rolls over in Enron case

http://finance.news.com.au/story/0,10166,17687572-462,00.html

THE forthcoming trial of former Enron chairman Kenneth Lay, charged with masterminding one of the biggest corporate frauds in history, has taken a dramatic turn - with a key lieutenant turning prosecution witness.
Former Enron chief accounting officer Richard Causey pleaded guilty at a hearing in Houston, Texas, to securities fraud as part of a bargain struck with prosecutors under which Mr Causey will take the witness stand in Mr Lay's trial.

Mr Causey is likely to be sentenced to seven years' jail, which could be reduced by up to two years depending on the level of his co-operation with the prosecution.

Mr Causey's guilty plea could delay the trial of Mr Lay, who faces 11 counts of conspiring to commit fraud, and Jeffrey Skilling, Enron's former chief executive. The trial is scheduled to get under way on January 17.

Legal experts said Mr Causey's testimony could be highly damaging to Mr Lay. Mr Causey was never accused of skimming Enron funds for personal gain and was, therefore, likely to have some credibility in the eyes of the jury.

...more...

[UpInArms]

19. 9:45 EST numbers and blather

Dow 10,819.24 +22.98 (+0.21%)
Nasdaq 2,230.73 +1.79 (+0.08%)
S&P 500 1,259.85 +1.68 (+0.13%)
10-Yr Bond 4.370 -0.08 (-0.18%)

NYSE Volume 87,477,000
Nasdaq Volume 84,601,000

09:40 am : As futures indications presaged, the market opened with little fanfare and is currently clinging to modest gains, as a traditional year-end rally remains to be seen amid a lack of market-moving news. However, since the futures fair value calculation has been a poor indicator of the full day's trend this week, the assumption that stocks will close higher for the entire day remains unfounded as very light volume during this holiday week makes overall market movement extremely unpredictable. DJ30 +20.74 NASDAQ +2.82 SP500 +1.52 NASDAQ Vol 48 mln NYSE Vol 34 mln

09:15 am : S&P futures vs fair value: +0.3. Nasdaq futures vs fair value: +3.0.

[54anickel]

22. Risky business in 2006? Could be

The housing market and rising rates are worrisome, but manufacturing, growth overseas may help.

http://money.cnn.com/2005/12/29/news/economy/slowdown_2006/index.htm

snip>

"A lot of people have assumed the economy has become so structurally resilient it won't be a problem if there are more shocks in 2006," he said. "But the resilience is not likely to be as high in 2006, especially in second half of the year.

snip>

What's out there to worry about?

The Federal Reserve pushing interest rates too high, for one thing. Fed policy-makers have raised rates 13 straight times in a bid to keep inflation at bay, but some analysts worry that the central bank might overdo it, crimping economic growth.

Analysts say another distinct possibility is a bankruptcy filing by General Motors (Research), though the automaker denies it. That could have ripple effects far beyond the company's employees and stock and bondholders.

A problem with hedge funds, which have grown dramatically since the collapse of Long Term Capital Management in 1998, is another fear.

And there are concerns that the slowdown in the housing market could mean trouble for the broader economy.

more...

[UpInArms]

27. General Motors dips to new 23-year low

http://www.marketwatch.com/news/newsfinder/pulseone.asp?dateid=38715.4261321759-855824446&siteID=mktw&scid=0&doctype=806&

SAN FRANCISCO (MarketWatch) -- General Motors (GM) shares fell more than 1% on Thursday, touching levels not seen in about 23 years at $18.33. Credit Suisse First Boston estimated the troubled automaker will turn in a December U.S. sales decline in a range of 12%-14%, representing a steeper fall off than its domestic competitors. Also adding to the pressure, the Wall Street Journal reported that accounting rule changes in 2006 could take a big bite out of the company's shareholder equity.

[ozymandius]

39. U.S. New Car Dealers Face Tough 2006

(PRWEB) - Denver, CO (PRWEB) December 29, 2005 -- The United States new car dealers have many issues to resolve in 2006. The factory has taken the margin out of the business by offering big incentives and employee deals. The number of dealers going out of business in 2006 will hit an all time high many analysts predict.

"Dealers must go on the offence," states Mark Fracalossi CEO of AMT Media LLC, a Denver based Consulting and Media Firm. "I have been involved with the auto business for almost 30 years and margins were better years ago than they are today," he added.

Fracalossi sites the Big Box Theory, "Dealers today will sell a $50,000 vehicle for a $100 Profit, at these margins volume must be increased ten times to recieve the average profit of only ten years ago, this is what the Big Box retailers do to each other and eventually take all the profit out of many of their products just to create a customer. The days of opening up the doors and making a profit are over, dealers must do many things right to achieve success."

The auto market in the USA is changing and the consumer will be the benefactor.

more...

[UpInArms]

29. OKC: LSB Indus unit suspends ammonia production due to gas prices

http://www.marketwatch.com/news/newsfinder/pulseone.asp?siteid=mktw&guid=%7BA6B02E3A-DD7E-47CF-8DEF-FF054EBE4C85%7D&

NEW YORK (MarketWatch) -- LSB Industries Inc. (LXU) said its Cherokee Nitrogen Co. unit as suspended ammonia production due to high natural-gas costs. LSB, Oklahoma City, said it plans to resume production when gas prices decrease, and will fulfill sales commitments using purchased ammonia and inventory. Shares of LSB closed Wednesday at $6.67.

[UpInArms]

31. 10:33 EST numbers and blather

Dow 10,814.11 +17.85 (+0.17%)
Nasdaq 2,228.48 -0.46 (-0.02%)
S&P 500 1,258.72 +0.55 (+0.04%)
10-Yr Bond 4.374 -0.04 (-0.09%)

NYSE Volume 267,931,000
Nasdaq Volume 244,482,000

10:30 am : Little changed since the last update as the week's last batch of economic data fails to provide a stronger sense of conviction on either the bullish or bearish side of the aisle. Dec. Chicago PMI index checked in at 61.5 (consensus 60.0), holding at a very strong level which bodes well for next week's release of the national ISM manufacturing index. However, Nov. existing home sales fell -1.7% to 6.97 mln, missing forecasts and marking the first sub 7.0 mln pace since March. DJ30 +18.50 NASDAQ -0.83 SP500 +0.35 NASDAQ Dec/Adv/Vol 1466/1147/224 mln NYSE Dec/Adv/Vol 1516/1317/166 mln

10:00 am : Major averages are now mixed but the bulk of industry leadership remains slightly positive. Consumer Discretionary has paced the way higher, albeit modestly, as retailers inch into positive territory for the year amid another update on holiday sales and hotel stocks get a boost following reports that Hilton Hotels (HLT 22.68 +0.38) will acquire Hilton Group PLC for $5.5 bln. Financial has benefited primarily from strength in the insurance group while Technology struggles to stay positive as software and some leading hardware names offset modest consolidation in semiconductor. Energy, however, remains weak as a pullback in oil prices spurs another round of consolidation for the year's best performing sector. DJ30 +20.11 NASDAQ -0.78 SP500 +0.77 NASDAQ Dec/Adv/Vol 1206/1058/122 mln NYSE Dec/Adv/Vol 1047/1451/88 mln

[UpInArms]

35. 10:47 EST heading for the exits?

Dow 10,802.51 +6.25 (+0.06%)
Nasdaq 2,226.98 -1.96 (-0.09%)
S&P 500 1,257.62 -0.55 (-0.04%)
10-Yr Bond 4.380 +0.02 (+0.05%)

NYSE Volume 320,407,000
Nasdaq Volume 292,157,000

[UpInArms]

36. After market bust, small investors wary

http://www.miami.com/mld/miamiherald/13503331.htm

Oh, those heady days of the stock market boom back in the late 90s, when people were chucking their jobs to make fortunes as day traders or huddling in investment clubs plotting buys and sells that would make them millionaires.

Five years after the market went from bull to bear to flat, small investors are still out there, but they're considerably fewer -- and considerably wiser.

''We lost money like everybody else, but we didn't suffer too badly because we were extraordinarily diversified,'' says Patricia Edwards, a founding member of the Beanstalk Investment Club, which survived the rocky ride but only with about half its members.

<snip>

Another lesson he learned: bail out quickly. ''When you see the bubble bursting, don't go against it,'' he says.

Today's equivalent of the stock market may be real estate, which many observers say is another balloon ready to pop.

...more...

[UpInArms]

38. US goldminer paid us, Jakarta general admits

http://www.theaustralian.news.com.au/common/story_page/0,5744,17688738%255E2703,00.html

JAKARTA: A senior Indonesian general has admitted the military received massive payments from a US mining company for providing security at a gold and copper mine in the remote eastern province of Papua.

Major General Mahidin Simbolon denied receiving any of the money personally, saying it had been paid to battalion commanders based in the mountainous province and was used to supply their units and to pay for expenses including transport, clothing, meals and medicines, according to The Jakarta Post.

His comments came in response to a report in The New York Times detailing how the giant US mining company Freeport McMoRan paid large sums of money directly to Indonesian military commanders in the area.

General Simbolon did not say how much money he accepted on behalf of the military, but the newspaper said Freeport had paid local commanders at least $27.47 million since 1998.

<snip>

The revelations will undermine efforts to bring the politically powerful armed forces under civilian command following the overthrow of the 32-year military dictatorship of former president Suharto in 1998.

...more...

[ozymandius]

40. 12:14 blather update

Stocks Are Mixed in Sluggish Trading

NEW YORK - Stocks vacillated in a narrow range Thursday as investors did little in response to generally benign economic data, instead looking ahead to 2006 with a mix of optimism and concern.

Wall Street was mostly unmoved by the Labor Department's latest take on unemployment, the only economic indicator released before the session. First-time jobless claims rose by an expected 4,000 last week to a seasonally adjusted 322,000.

Other economic reports were likewise mild. The Chicago Purchasing Managers Association index of Midwestern economic activity was relatively steady at 61.5 in December, compared to 61.7 in November. And home sales declined modestly in November, according to the National Association of Realtors.

-cut-

Bonds were little changed, with the yield on the 10-year Treasury note rising to 4.38 percent from 4.37 percent late Wednesday. The dollar was mixed against other major currencies, while gold prices rose.

more...

[UpInArms]

42. old thinking -- an antiquarian notion about representative democracy

http://www.miami.com/mld/miamiherald/13504022.htm

excerpt:

Whatever his appellation, lobbyist or land-use lawyer, the state senator puts city and county commissioners voting on his clients' projects in an awkward position.

But maybe I'm just bogged down in old thinking -- an antiquarian notion about representative democracy. The year 2005 brought overwhelming evidence that elected officials at all levels seek office chiefly so they can be larded by lobbyists.

FREE RANGE

Lobbying scandals erupted in federal and state governments. And The Miami Herald's Dan Christensen discovered that lobbyists representing major vendors could amble into the offices of the county's constitutional officers without bothering with disclosure. Dan's stories prompted new rules at the Broward Sheriff's Office, Property Appraiser's and (just Wednesday) Clerk of Courts office. Lobbyists still have free range in 66 other Florida counties.

The national apostle of the lobbyist-directed form of government was once Casino Jack -- up until those darned indictments for fraud and conspiracy. Superlobbyist Jack Abramoff, before federal prosecutors came meddling, led the movement to eliminate nonessentials like political philosophy from the mix. He streamlined governing into something pure and simple: the pursuit of financial contributions, exotic vacations and free golf junkets.

Before Abramoff ran into trouble for allegedly buying Florida's fleet of SunCruz casino boats with money he didn't have, he tapped into casino proceeds from SunCruz and his Indian tribe clients and sent the money to 210 members of Congress -- from both parties.

He directed campaign contributions to his congressional toadies and took them golfing in Scotland. He set their staffers up on SunCruz gambling junkets. He sent casino money to anti-gambling Christian crusaders, knowing that religious principles don't count for much in the new order.

...more...

[ret5hd]

43. ...and sent the money to 210 members of Congress -- from both parties.

i thought i read in GD the other day that it was shown that he DID NOT donate to Dem elected officials, but the Repugs are trying hard to spin it as if he did.

If what i read is true, then i take this article as just another Repug attempt to paint us with the same brush they are getting slapped with.

[UpInArms]

45. Dow to miss Wall St 2005 forecasts; Fed, oil to blame

http://today.reuters.com/investing/financeArticle.aspx?type=bondsNews&storyID=2005-12-29T192244Z_01_N29382563_RTRIDST_0_MARKETS-STOCKS-TARGETS.XML

NEW YORK, Dec 29 (Reuters) - As the year draws to a close, the U.S. stock market's major indexes have fallen short of Wall Street forecasts, but analysts aren't blaming corporate America for this year's lackluster gains.

Analysts point to Federal Reserve monetary policy and a sharp increase in energy prices as the culprits.

Company earnings exceeded expectations in 2005, yet the Standard & Poor's 500 Index was up just 3.95 percent for the year as of this afternoon, at 1,259, while the Dow Jones industrial average was barely holding its head above water, up 0.3 percent to 10,816.

According to the median forecasts in a Reuters poll conducted in September, strategists had expected the Dow to be at 11,000 by year-end, and the S&P 500 to finish at 1,265.

"The two primary factors that held up the market were the Fed raising rates ... and that energy prices were far more excitable than people had anticipated," said Tobias Levkovich, equity strategist for U.S. institutional investors at Citigroup.

...more...

[UpInArms]

47. 3:36 EST red numbers and blather

Dow 10,787.01 -9.25 (-0.09%)
Nasdaq 2,219.66 -9.28 (-0.42%)
S&P 500 1,255.05 -3.12 (-0.25%)
10-Yr Bond 4.376 -0.02 (-0.05%)

NYSE Volume 1,177,579,000
Nasdaq Volume 1,018,794,000

3:30 pm : Sellers show some resolve heading into the close, as the Dow and S&P join the Nasdaq in negative territory. While no specific catalysts can be cited for the late-day, broad-based pullback, it is worth noting that the lack of participation, as volumes are much thinner than normal, can lead to volatile price swings. Should the market tomorrow close at current levels, the Dow would finish the year flat and the S&P 500 would record its smallest up year (+3.6%) since 1987. DJ30 -11.20 NASDAQ -9.70 SP500 -3.45 NASDAQ Dec/Adv/Vol 1521/1498/984 mln NYSE Dec/Adv/Vol 1343/1899/846 mln

3:00 pm : Major averages continue to trade in split fashion as equities remain range bound heading into the final hour of trading. Meanwhile, the commodities market has recently closed, with crude oil futures finishing up 0.7% at $60.25/bbl. Even so, Energy, which earlier provided the bulk of what little leadership has been realized during a very quiet session, has recently sold off and inched into negative territory, as 22 of the sector's 29 components post losses. DJ30 +21.78 NASDAQ -0.72 SP500 +1.04 XOI -0.1% NASDAQ Dec/Adv/Vol 1416/1591/856 mln NYSE Dec/Adv/Vol 1268/1957/724 mln

[UpInArms]

48. closing and yada

Dow 10,784.82 -11.44 (-0.11%)
Nasdaq 2,218.16 -10.78 (-0.48%)
S&P 500 1,254.42 -3.75 (-0.30%)
10-Yr Bond 4.376 -0.02 (-0.05%)

NYSE Volume 1,413,406,000
Nasdaq Volume 1,224,962,000

After being stuck in the tightest of trading ranges amid a lack of market-moving catalysts, renewed selling interest within the last hour of trading closed the major indices as well as nine of ten economic sectors in negative territory. However, much of the volatility late in the day can be directly tied to a lack of participation, as holiday-thinned trading desks resulted in much lighter than normal volumes.

Before the bell, initial jobless claims rose 3K to 322K, suggesting a strong 200K rise in Dec. nonfarm payrolls. Minutes after the market opened, Dec. Chicago PMI checked in at a strong 61.5 (consensus 60.0), which bodes well for an upcoming read on national manufacturing activity. However, neither report was enough to get investors excited about stocks, especially after a 1.7% decline in Nov. existing home sales to 6.97 mln, marking the first sub 7.0 mln pace since March, simply renewed worries that housing demand is waning.

With regard to sector strength and weakness, Technology turned in the day's worst performance as investors locked in semiconductor gains and wiped their hands of underperforming hardware and networking stocks heading into the final day of trading. Energy was another influential leader to lose ground, as a 0.7% gain in crude oil failed to prevent participants from consolidating gains in refiners, explorers and drillers - the year's Top Three performing industry groups. Despite a late turnaround in Treasuries which closed the 10-yr note up 3 ticks to yield 4.36%, ongoing hype about an inverted yield curve may have prompted some consolidation in Financial. Even Industrials, which provided some early support as railroad stocks like Burlington Northern Santa Fe (BNI 70.97 +0.19) - a suggested holding in Briefing.com's portfolio for active investors - flirted with historic highs following a stronger than expected rail freight carload traffic report.

Consumer Discretionary, however, eked out a small gain, benefiting from a late-day turnaround in General Motors (GM 19.01 +0.40) and strength in hotels amid confirmation that Hilton Hotels (HLT 24.00 +1.70) will buy Hilton Group PLC for $5.7 bln. BTK -0.4% DJ30 -11.44 DJTA +0.4% DJUA -0.1% DOT -0.5% NASDAQ -10.78 NQ100 -0.7% R2K -0.3% SOX -1.0% SP400 -0.3% SP500 -3.75 XOI -0.6% NASDAQ Dec/Adv/Vol 1658/1383/1.19 bln NYSE Dec/Adv/Vol 1622/1644/1.03 bln