STOCK MARKET WATCH, Wednesday March 5

[ozymandius]

Source: du

STOCK MARKET WATCH, Wednesday March 5, 2008

COUNTING THE DAYS
DAYS REMAINING IN THE * REGIME 322
DAYS SINCE DEMOCRACY DIED (12/12/00) 2600 DAYS
WHERE'S OSAMA BIN-LADEN? 2326 DAYS
DAYS SINCE ENRON COLLAPSE = 2617
Number of Enron Execs in handcuffs = 19
ENRON EXECS CONVICTED = 10
Enron execs conveniently deceased = 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 March 4, 2008

Dow... 12,213.80 -45.10 (-0.37%)
Nasdaq... 2,260.28 +1.68 (+0.07%)
S&P 500... 1,326.75 -4.59 (-0.34%)
Gold future... 966.30 -17.90 (-1.85%)
30-Year Bond 4.48% +0.06 (+1.33%)
10-Yr Bond... 3.58% +0.05 (+1.27%)






GOLD, EURO, YEN, Loonie and Silver

---

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

---

Read more: du

[ozymandius]

1. Market WrapUp: US Exporting Deflation

BY FRANK BARBERA, CMT

Another week of trading and another week of ‘quiet melt-down’ style financial news. In what can only be described as an endless stream of negative news, reports out over the last few days have actually highlighted still more problems at the monoline insurers. Even if you assume that sub-prime losses are more or less discounted in the market (a big assumption), further analysis is now pointing to the idea that still more problems will be seen with second lien home equity loans. It seems that the monoline insurers in their unchecked hubris managed to expose themselves to even larger quantities of home equity loan securities, now estimated to be in the neighborhood of $500 Billion dollars. That’s roughly three times the monoline's ability to pay should claims ‘flood in,’ and ‘flood in’ is precisely what is starting to take place. According to recent data from GMAC/REFCO, loan-to-values rose from 80% to 89% for home equity loans, and on reduced documentation loans, the loan-to-value has skyrocketed from 3% to 60%. Assuming that broad residential real estate prices continue to decline in 2008 by another 10%, we have a recipe for still more huge write-downs at the banks and possible insolvency at some of the shaky firms.

Of course, the week has already claimed more victims, with Monday’s trading spotlighting the collapse of Thornburg Mortgage (TMA) as the company revealed that it would likely be unable to meet a further $270 million in margin calls on crucial repurchase agreements. For Thornburg, the root of the troubles this month has been a 10% to 15% drop in the value of “ALT-A” mortgages with an estimated $950 Billion in value defining the ‘Alt-A’ space. The result in this latest plunge was only more forced selling in already illiquid derivative securities, new lows in the Markit.com indices, and further new lows for Wall Street Creative Finance – as the domino style daisy chain continues its plunge into the abyss.
.....

Another item to add in under the header of still more bad news, is the fact that Warren Buffett suggested on Monday that his offer for the monolines is effectively ‘off the table’ and things promise to remain interesting for some time to come, noting that to date, no substantial initiatives have been forthcoming. Charlie Gasparino or no Charlie Gasparino, the Gasparino AMBAC squeeze was into the close of Feb 22nd, a Friday with hints and promises of a monoline deal pending early the following week, so as they used to say on a TV commercial, “where’s the beef?." Perhaps the lack of any substantive ‘deal’ on the monolines is at the root of the most recent sell off in the Nuveen Municipal Bond Index where yields would almost certainly have to be re-priced to adjust for the lack of insurance coverage. This is clearly not good news for countless State and City programs where a re-pricing of bond yields is precisely what deteriorating budgets don’t need. Take the countless iterations of California Muni Bonds listed at the end of this update, many of which have been falling precipitously in recent days as the State of California, which would be the worlds 6th largest economy all by itself, confronts a sprawling budget deficit.

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

[TalkingDog]

31. Oof....gut punch by Buffett. And the Economy is DOWN!! It's DOWN!

And the ref is starting the 3-count. It doesn't look good for the economy. This could be a solid KO!





Another long day. Just another coupla weeks and I can stay longer than a second or two.

Have a bountiful day.

[ozymandius]

2. Today's Reports

8:15 AM ADP Employment Feb
Briefing Forecast NA
Market Expects 15K
Prior 126K

8:30 AM Productivity-Rev. Q4
Briefing Forecast 1.8%
Market Expects 1.8%
Prior 1.8%

10:00 AM Factory Orders Jan
Briefing Forecast -2.2%
Market Expects -2.5%
Prior 2.3%

10:00 AM ISM Services Feb
Briefing Forecast 48.0
Market Expects 47.5
Prior 44.6

10:30 AM Crude Inventories 03/01
Briefing Forecast NA
Market Expects NA
Prior 3231K

2:00 PM Fed's Beige Book

http://biz.yahoo.com/c/e.html

[UpInArms]

33. 8:30 reports and here's the ADP - Private sector jobs down 23,000 in Feb

18. U.S. 2007 unit labor costs revised up to 3.1% gain
8:30 AM ET, Mar 05, 2008 - 44 minutes ago

19. U.S. 2007 productivity revised up to 1.8%
8:30 AM ET, Mar 05, 2008 - 44 minutes ago

20. U.S. Q4 real hourly compensation revised down to 0.5% drop
8:30 AM ET, Mar 05, 2008 - 44 minutes ago

21. U.S. Q4 unit labor costs revised up to 2.6% vs 2.4% expected
8:30 AM ET, Mar 05, 2008 - 45 minutes ago

22. U.S. Q4 productivity revised up to 1.9% vs. 1.8% expected
8:30 AM ET, Mar 05, 2008 - 45 minutes ago

29. Private sector jobs down 23,000 in Feb, ADP says
8:15 AM ET, Mar 05, 2008 - 1 hour ago

[UpInArms]

42. 10:00 reports - don't ask me why the market likes 'em - they suck

01. U.S. Feb. ISM services above consensus 47.9%
10:01 AM ET, Mar 05, 2008 - 41 seconds ago

02. U.S. Feb. ISM services 49.3% vs 44.6% in Jan
10:01 AM ET, Mar 05, 2008 - 41 seconds ago

04. U.S. Jan. core orders down 1.5%
10:00 AM ET, Mar 05, 2008 - 1 minute ago

05. U.S. Jan. nondurable goods orders up 0.3%
10:00 AM ET, Mar 05, 2008 - 1 minute ago

06. U.S. Jan. durable goods orders down 5.1%
10:00 AM ET, Mar 05, 2008 - 1 minute ago

07. U.S. Jan. factory orders down 2.5%
10:00 AM ET, Mar 05, 2008 - 1 minute ago

[Ghost Dog]

49. Grim news from private employers; labor costs up

NEW YORK (Reuters) - The weakening U.S. job market dealt another blow to the struggling economy on Wednesday, while more bad news emerged from the inflation front.

U.S. private employment fell unexpectedly for the first time in nearly five years in February, according to a private report that does not bode well for the government's key U.S. payrolls release on Friday.

Economic optimists may take heart from separate report showing planned layoffs by U.S. companies fell in February, but even that data suggested that the housing-led economic slowdown was spreading to other sectors.

"The headline (ADP) number showed a decline of 23,000, which was the first decline in this series since the economy was coming out of the last recession so it is notable," said Joel Prakken, chairman of Macroeconomic Advisers in St. Louis, Missouri, a joint developer of the ADP report.

This left investors braced for Friday's monthly jobs data. Analysts expect that to show an increase of 25,000 in February non-farm payrolls but their estimates range widely from a drop of 110,000 to a rise of 100,000, according to a Reuters poll of economists.

"The ADB report has given us a heads up that the jobs report on Friday could be worse than expected. All the other jobs indicators are also consistent with a softening U.S. labor market, "said Shaun Osborne, chief currency strategist at TD Securities in Toronto.

U.S. productivity was slightly better than earlier estimated in the fourth quarter but labor costs were also considerably higher, presenting an inflation dilemma for the Federal Reserve, which has cut interest rates aggressively to shore up the economy.

/... http://news.yahoo.com/s/nm/20080305/bs_nm/usa_economy_dc;_ylt=AhZjZGDF9o18wbYi0neCTBm573QA

[UpInArms]

82. Fed Beige Book survey confirms economy has slowed in '08

11. New York City only exception to house price drop: Fed survey
2:00 PM ET, Mar 05, 2008 - 40 minutes ago

12. Nonfinancial sector activity also mixed, Fed survey finds
2:00 PM ET, Mar 05, 2008 - 40 minutes ago

13. Fed survey finds firms have mixed success raising prices
2:00 PM ET, Mar 05, 2008 - 40 minutes ago

14. Fed survey finds price pressure, only modest wage gains
2:00 PM ET, Mar 05, 2008 - 40 minutes ago

15. Fed survey finds weak retail activity, sluggish factories
2:00 PM ET, Mar 05, 2008 - 40 minutes ago

16. Fed Beige Book survey confirms economy has slowed in '08
2:00 PM ET, Mar 05, 2008 - 40 minutes ago

[Ghost Dog]

86. Fed report says U.S. growth slowed in early 2008

WASHINGTON (Reuters) - Federal Reserve districts all saw decelerating economic growth in early 2008, even as prices pressed upward almost everywhere, the central bank's "Beige Book" report on economic conditions said on Wednesday.

"Reports from the twelve Federal Reserve Districts suggest that economic growth has slowed since the beginning of the year," the Fed said in its anecdotal summary.

The Beige Book was compiled with information collected through February 25.

The Fed's survey found service industries slowing in most Fed districts, while manufacturing was sluggish in half of the Fed's 12 regions. Residential real estate markets were generally weak, and reports on retail spending were downbeat, the report said.

At the same time, upward pressure on prices from rising materials and energy costs showed up in almost all the district reports, the Fed said. Businesses in many regions said they had only mixed success in raising their prices to recoup increased costs.

Price pressures also translated into higher transportation and shipping costs, the Fed said. Businesses also saw higher prices for metals, petrochemicals, and food, the survey found.

"Firms' ability to pass along cost increases by raising selling prices varied," the central bank said.

Meanwhile, most districts said businesses were reporting limited wage pressures and some loosening of labor markets.

"It looks pretty weak across the board," said Robert Brusca, chief economist at Fact and Opinion Economics in New York. "It says that the Fed needs to and can continue to cut rates."

/... http://news.yahoo.com/s/nm/20080305/bs_nm/usa_fed_beigebook_dc;_ylt=AolGKZ9ogP59WUC9TEn9kvq573QA

[ozymandius]

3. Oil near $100 after sharp overnight fall

SINGAPORE - Oil prices gained Wednesday after dropping sharply in the previous session on the possibility that OPEC will raise output and on expectations that U.S. crude supplies are continuing to rise.

Chakib Khelil, president of the Organization of Petroleum Exporting Countries, said the cartel is shying away from boosting production due to expectations that global demand for crude will fall during the second quarter.

Khelil's comment helped to halt the slide driven by investors still betting the cartel will boost production to bring prices down.

OPEC ministers, in these investors' eyes, are worried that soaring oil prices will help push the U.S. into a recession that would further cut demand for crude. The group meets later Wednesday to decide its policy for the next few months.
....

The contract fell $2.93 to settle at $99.52 a barrel on Tuesday. It was crude's first move below $100 this week and its lowest settlement price since Feb. 25.

http://news.yahoo.com/s/ap/oil_prices

[ozymandius]

5. OPEC president says he favours cutting oil output

VIENNA (AFP) - OPEC president, Algerian Oil Minister Chakib Khelil, said here Tuesday that he would "prefer" the Organisation of Petroleum Exporting Countries to cut oil production at its upcoming ministerial meeting.

"I would prefer in this situation to lower production because demand globally is going to be lower," Khelil told a press briefing ahead of Wednesday's meeting in Vienna.

Algeria joins Iran and Venezuela in calling for a cut in output ahead of the second quarter when demand for heating fuel was expected to drop owing to warmer temperatures in energy-hungry Europe and the United States.

All three are traditional hawks in OPEC, frequently favouring output cuts to support oil prices, which are trading at record highs above 100 dollars per barrel.

Amid soaring prices, analysts believe OPEC will agree to maintain output on Wednesday. This would not be enough, however, to appease energy consuming nations who want OPEC to increase production to help bring down prices.

http://news.yahoo.com/s/afp/20080304/bs_afp/opeccommoditiesoiloutputpricealgeria

[ozymandius]

9. BP, GM see hydrogen in their future

WASHINGTON, D.C. (CNNMoney.com) -- Top executives of BP and General Motors Corp., two of the world's largest corporations, outlined on Tuesday their visions for the future of renewable energy.

They came to the same bottom line: Hydrogen will likely fuel the cars of the future, although it could take 50 years to get there. Until then, each company will pursue different strategies for developing new energy sources.

Their comments kicked off the Washington International Renewable Energy Conference, a global meeting of energy officials organized by the U.S. State Department, and an adjoining trade show with over 300 vendors and energy industry luminaries.
......

To that end, Babik said GM is rolling out it's all-electric Chevy Volt hopefully by late 2009 and is pushing its "E-Flex" design concept.

The E-Flex is a vehicle with an electric motor that also has an on-board electricity generator to charge the batteries on long trips or other times when the vehicle can't be plugged into an electric outlet. The generator could either be a conventional gasoline engine, an engine that runs on biofuel or, eventually, a bank of hydrogen fuel cells that Babik said could be the fuel of choice 50 years from now.

http://money.cnn.com/2008/03/05/news/companies/bigoil_hydrogen/index.htm?postversion=2008030504

[Demeter]

38. That's Funny. All I See is Hot Air

[Ghost Dog]

45. Iraqi cabinet OKs deals with oil giants

Source: AP

BAGHDAD - Iraq's cabinet has given the green light to the Oil Ministry to sign agreements with international oil companies to help increase the nation's crude output, a ministry official said Wednesday.

The two-year deals, known as technical support agreements, or TSAs, are designed to develop five producing fields to add 500,000 barrels per day to the country's 2.4 million barrels per day output.

Last December, Royal Dutch Shell PLC, BP PLC, ExxonMobil Corp. and Chevron Corp. submitted technical and financial proposals for the five fields and received counterproposals from the Iraqi side.

In January, representatives from the companies and Iraq met again in Amman, Jordan, and they will hold a third round of discussions later this month, said the official, who spoke on condition of anonymity because he was not authorized to release information.

/DU thread: http://www.democraticunderground.com/discuss/duboard.php?az=view_all&address=102x3210565

[Ghost Dog]

48. OPEC keeps output steady in face of $100 oil

VIENNA (Reuters) - OPEC ministers on Wednesday agreed to keep oil output steady and said record high prices had been driven by factors that were beyond their control.

U.S. crude hit a record of $103.95 a barrel on Monday and was trading above $100 on Wednesday.

Washington has said even a token supply increase from the Organization of the Petroleum Exporting Countries would help to tame prices and limit any impact on a fragile world economy.

But OPEC ministers have repeatedly said the oil market has been driven by a weak dollar, speculation and political strife, and not by a lack of crude.

After less than two hours of talks, OPEC delegates told Reuters the group had reached agreement to keep supplies steady.

The ministerial meeting continued discussing other matters after the decision had been reached.

/... http://news.yahoo.com/s/nm/20080305/bs_nm/opec_dc

[Ghost Dog]

68. Oil surges to record high above $104

LONDON (Reuters) - Oil hit an all-time high above $104 a barrel on Wednesday, after a surprise fall in U.S. crude stocks and heightened tensions in South America.

U.S. crude futures climbed to a record peak of $104.56 earlier in the session. By 1715 GMT, the front-month contract traded up $4.69 at $104.21 a barrel.

London Brent crude surged $3.25 to $100.77.

Many blame a weakening U.S. dollar, speculation and geopolitical tensions for leading oil, gold and other commodities to record highs.

Independent oil strategist Peter Gignoux said there were still "enormous flows of money" looking for a home.

"People want to be involved in raw materials in one form or another and the vehicle for most of them is the oil futures market," he said.

U.S. crude stocks fell 3.1 million barrels last week, the Energy Information Administration said, confounding analysts expectations for a 2.4 million barrel increase.

/... http://www.reuters.com/article/hotStocksNews/idUSSYD3274320080305

[UpInArms]

85. Crude closes up $5 at $104.52 a barrel, a historic high

06. Crude closes up $5 at $104.52 a barrel, a historic high
2:52 PM ET, Mar 05, 2008 - 58 minutes ago

[ozymandius]

4. Loans program for coal plants suspended

BILLINGS, Mont. - The federal government is suspending a major loan program for coal-fired power plants in rural communities, saying the uncertainties of climate change and rising construction costs make the loans too risky.

After issuing $1.3 billion in loans for new plant construction since 2001, none will be issued this year and likely none in 2009, James Newby, assistant administrator for the Rural Utilities Service, a branch of the Department of Agriculture, said Tuesday.

The program's suspension marks a dramatic reversal of a once-reliable source of new coal plant financing. It follows the announcement last month that several major banks will require plant developers to factor in climate change when seeking private funding.
.....

At the time of the suspension, at least four utilities had been lined up for loans totaling $1.3 billion — for projects in Kentucky, Illinois, Arkansas and Missouri. A project in Montana was denied funding last month. Two more were recently withdrawn: last October in Wyoming and earlier this week in Missouri.

http://news.yahoo.com/s/ap/20080305/ap_on_bi_ge/coal_loans

[Demeter]

39. How Did That Happen?

Did they forget to make the last payoff?

[Ghost Dog]

50. Energy firms tell (UK) Treasury: don't bring in windfall tax

Energy companies last night launched a pre-emptive strike on the government ahead of next week's budget, warning that any windfall tax on the industry would undermine investment in green power projects and other measures to combat climate change.

The companies fear ministers are considering a windfall tax on the industry after a public outcry greeted moves to raise household bills by as much as 15% in recent weeks.

British Gas, whose Centrica parent group is behind a number of wind farm and other renewable schemes, said it was vital companies had a "stable, predictable investment climate" in Britain if they were to deliver the billions of pounds of funding needed for green power generation.

Drax, the owner of the country's biggest single coal-fired power station, also issued a clear warning to ministers. "A surprise or shock tax is very destabilising for the industry when making long-term investments," said Dorothy Thompson, the chief executive of the company.

Alistair Darling, the chancellor of the exchequer, could take advantage of the rising public resentment about the behaviour of the country's big power providers to raise much-needed revenue. But he will also be wary about opening a new front of attack on industry at a time when he is under fire from the City over his handling of business tax issues.

The last time a windfall tax was imposed on North Sea operators in 2005, it brought short-term gains to the Treasury but led to a slump in drilling activity that ultimately cut tax revenues.

Labour did, however, successfully levy a windfall tax on the newly privatised utilities in 1997, raising £5.2bn to fund the New Deal to bring long-term unemployed back into work.

The Commons' environmental audit committee entered the fray yesterday by urging the Treasury to take steps to "respond to climate change on the scale and with the urgency recommended in the Stern review" while Friends of the Earth called for a windfall tax to pay for a £5bn climate change super-fund.

/... http://www.guardian.co.uk/business/2008/mar/05/oil.utilities

[ozymandius]

6. Futures rise as Ambac rescue hopes grow

LONDON (Reuters) - Stock futures pointed to a modest rise for Wall Street on Wednesday before data that may give some taste of Friday's employment report and as hopes grew for a prompt rescue for bond insurer Ambac Financial (ABK.N).

Financial shares were among the major movers among top U.S. stocks traded in Europe. Shares in Citigroup (C.N), which on Tuesday fell by more than 4 percent on concern about its possible losses, rose by 3.2 percent from their last close in Frankfurt to 14.7 euros (TRV.F).
.....

Talks on a solution to ailing bond insurer Ambac Financial Group's (ABK.N) problems are continuing, a person briefed on the matter said on Tuesday, after CNBC television said a deal was near, pushing Ambac shares up nearly 8 percent and helping the U.S. market cut losses during the session's last hour.

In Europe, shares in Ambac were up by more than 17 percent from their last close in Frankfurt at 7.20 euros (ABK.F), while those in rival MBIA (MBI.N) were up 6.2 percent from their last close in Frankfurt at 8.60 euros (MBI.F).

http://news.yahoo.com/s/nm/20080305/bs_nm/markets_stocks_dc

[ozymandius]

7. SEC charges firm, hedge fund managers with 60-mln-dlr fraud

WASHINGTON (AFP) - The US Securities and Exchange Commission said Tuesday it has filed civil fraud charges against a financial consulting firm and three of its managers for running an investment scheme that resulted in the loss of 60 million dollars.

The SEC's charges target the Salt Lake City, Utah-based Thompson Consulting Inc., an investment firm that also operated at least two hedge funds, and three hedge fund managers.

The managers, identified as Kyle Thompson, David Condie and Sherman Warner, allegedly used clients' funds to engage in riskier trades than they had marketed to their investors.
.....

The CBOE trades were essentially wiped out in mid-August of last year when the US financial markets dropped sharply due to mounting fears about the housing market slump and a related credit crunch.

The SEC said that as a result the hedge funds run by Thompson Consulting saw their value plummet from 54 million dollars to just 200,000 dollars between July 31 and August 17.

http://news.yahoo.com/s/afp/20080304/bs_afp/usregulatefinanceinvestmentfraud

[ozymandius]

8. Facebook hires Google exec, hitting Google shares

SAN FRANCISCO (Reuters) - Facebook said on Tuesday it had named Google Inc's global sales head, Sheryl Sandberg, as the social networking site's new chief operations officer, accelerating a decline in Google shares to year lows.

Google shares slid as much as 4.6 percent, trading below a 52-week low for the first time since its IPO and removing a technical crutch that had supported the stock.

The departure of Sandberg, who in six years at Google was instrumental in developing its fast-growing online advertising business, marks one of the first senior executives at the Web search leader to leave since its sensational initial public offering in August 2004.
.....

Google reported $16.6 billion in 2007 revenue, virtually all of it from online advertising sales generated under Sandberg's leadership.

By contrast, Facebook, which is privately held and does not disclose revenue, was estimated by one of its backers last year to generate revenue of little more than $100 million.

http://news.yahoo.com/s/nm/20080304/bs_nm/google_stock_dc

[Hissyspit]

10. Google stock high was $752 (I think) sometime last fall.

It closed at $444 yesterday, I believe.

[Ghost Dog]

11. Asian Stocks Fall for Fifth Day; Westpac Banking, Cnooc Decline

March 5 (Bloomberg) -- Asian stocks fell for a fifth day, led by financial and energy companies, on concern slowing economic growth will hurt loan demand and after crude oil retreated from a record.

Westpac Banking Corp. dropped after Merrill Lynch & Co. said rising interest rates will hurt Australian banks. China's Bank of Communications Ltd. fell after Premier Wen Jiabao said the government will curb lending in the world's fastest-growing major economy. Cnooc Ltd., China's largest offshore oil explorer, led declines in Hong Kong.

``We're seeing a pipeline of bad news, be it bank writedowns or the deterioration of the U.S. economy,'' said Ivan Leung, who helps manage $350 billion as Hong Kong-based chief investment strategist at JPMorgan Private Bank. ``Markets are selling off whenever there's bad news and, to us, that's not indicative of a recovery.''

The MSCI Asia Pacific Index fell 0.6 percent to 141.30 as of 5:50 p.m. in Tokyo, extending a four-day, 4.9 percent decline. The benchmark has slumped 10 percent this year on concern widening credit-market losses and a U.S. slowdown will erode global economic growth.

Most of Asia's benchmarks declined. China's CSI 300 Index slipped 0.9 percent. Japan's Nikkei 225 Stock Average fell 0.2 percent, bringing its 2008 loss to 15 percent. Malaysia's Kuala Lumpur Composite Index slumped 2.6 percent to a five-month low.

State Bank of India fell after Credit Suisse Group cut ratings on Indian banks. Asciano Ltd. slumped on a brokerage downgrade. South Korea's LG Electronics Inc., Asia's second- largest mobile-phone maker, advanced after BNP Paribas SA increased its earnings forecast.

/... http://www.bloomberg.com/apps/news?pid=20601080&sid=aCkQMOmYafaU&refer=asia

[Ghost Dog]

12. Premier Wen Names Inflation, Overheating as Key Risks

March 5 (Bloomberg) -- China's Premier Wen Jiabao said the government must do more to rein in lending and curb inflation in the world's fastest-growing major economy, a sign the central bank may raise interest rates for the seventh time in a year.

``Financial controls need to be strengthened, and the excessively fast growth in money supply and lending should be curbed,'' Wen told almost 3,000 lawmakers in his two-hour report to the National People's Congress in Beijing today.

Wen, embarking on a second five-year term, said overheating remains the government's biggest challenge even as a global slowdown threatens export demand. China's stocks fell on concern the central bank will raise borrowing costs or bank reserve requirements to tame inflation that's at an 11-year high.

``We do expect hikes in interest rates -- if not at the end of this month then at the beginning of next month,'' said Lu Ting, China economist at Merrill Lynch & Co. in Hong Kong. ``The chance of rate hikes is getting higher.''

The CSI 300 Index closed down 0.9 percent in Shanghai.

China aims to cap this year's inflation rate at 4.8 percent, the same pace as in 2007, and prevent a shift ``to overheating from relatively fast growth,'' the premier said. Inflation was 7.1 percent in January as food and fuel costs surged.

/... http://www.bloomberg.com/apps/news?pid=20601080&sid=abNNES.GsDHQ&refer=asia

[Ghost Dog]

13. Japan Capital Spending Falls 7.3%; GDP May Be Lowered

March 5 (Bloomberg) -- Japanese corporate investment fell at the fastest pace in five years last quarter, signaling the government will trim its economic growth estimate next week.

Capital spending excluding software declined 7.3 percent in the three months ended Dec. 31 from a year earlier, the Ministry of Finance said today in Tokyo. The government will use today's data to revise its estimate of gross domestic product March 12. Preliminary fourth-quarter GDP grew an annualized 3.7 percent.

Profits, eroded by a stronger yen and higher costs of oil and raw materials, slid the most since the economy emerged from a recession more than five years ago. Slower growth could prompt the Bank of Japan to cut interest rates, the lowest among major economies, this year.

``This is a confirmation that companies remain very pessimistic about the outlook for the economy,'' said Takeshi Minami, chief economist at Norinchukin Research Institute in Tokyo. ``Japan is losing its growth driver and the possibility that the Bank of Japan will cut rates is gradually increasing.''

The yield on Japan's 10-year bond fell 2 basis points to 1.37 percent. The Nikkei 225 Stock Average slid 0.2 percent.

The decline in business spending was double the 3.4 percent median estimate of six economists surveyed by Bloomberg News. It was the third drop in a row, making it the worst slump since the six straight quarters to March 2003. Services companies slashed investment excluding software by 11.5 percent, while manufacturers increased outlays 0.5 percent.

`Extremely Cautious'

``The average Japanese CEO would have to be extremely cautious at this point about investment or hiring,'' said Glenn Maguire, chief Asia economist at Societe Generale SA in Hong Kong. ``We're not going over the cliff, but the key word would be caution.''

The preliminary GDP report showed capital investment, calculated using incomplete data, rose 2.9 percent from the previous quarter and contributed about half of overall growth.

``The fourth-quarter GDP number was wrong,'' said Richard Jerram, chief Japan economist at Macquarie Securities Ltd. in Tokyo. Jerram said annualized GDP growth will be revised to around 2 percent from the 3.7 percent reported Feb. 14.

The Bank of Japan will keep the benchmark overnight lending rate at 0.5 percent at a policy meeting ending on March 7, according to all 40 economists surveyed by Bloomberg News. Investors see a 61 percent chance the bank will reduce the rate by December, calculations by JPMorgan Chase & Co. show.

Need to Act

``The Bank of Japan will need to act to support economic growth,'' Yoshimasa Maruyama, a senior economist at BNP Paribas in Tokyo, said after today's report. ``We expect it to lower rates as soon as April.''

Machinery orders, which signal capital investment over the next two quarters, have fallen for two months.

/... http://www.bloomberg.com/apps/news?pid=20601101&sid=aCeWoxJ4Tj.g&refer=japan

[Ghost Dog]

15. Japan Stocks Fall on U.S. Housing Slump, Lower Capital Spending

March 5 (Bloomberg) -- Japanese stocks declined, led by financial and machinery shares, after concern grew over mortgage- related losses in the U.S. and domestic businesses cut capital spending for a third-straight quarter.

Mizuho Financial Group Inc., Japan's second-largest listed bank, fell to the lowest in three years, while Komatsu Ltd. led a drop among machine makers. Marubeni Corp. surged the most in nine months after the trading company found natural gas reserves.

The Nikkei 225 Stock Average fell 20.22, or 0.2 percent, to close at 12,972.06. The broader Topix index slumped 1.75, or 0.1 percent, to 1,263.91. The benchmark declined for a fifth-straight day, the longest losing streak in almost three months.

Federal Reserve Chairman Ben S. Bernanke yesterday said foreclosures and mortgage delinquencies in the U.S. are likely to rise. Merrill Lynch & Co. said Citigroup Inc. may report as much as $15 billion in additional writedowns, and an analyst at Wachovia Corp. slashed earnings estimates for brokerages.

``There is increasing concern U.S. financial companies will substantially raise their provisions for subprime-related losses and that their Japanese counterparts will do the same,'' said Yoji Takeda, who helps manage about $1.1 billion at RBC Investment (Asia) Ltd. in Hong Kong. ``General anxiety about the global financial industry is lingering.''

Mizuho, which has posted a $2.6 billion loss on subprime investments, sank 3.1 percent to 403,000 yen, the lowest close since November 2004. Chuo Mitsui Trust Holdings Inc., Japan's sixth-largest bank, lost 3.3 percent to 655 yen, a level not seen since May 2004. A gauge that tracks banks was the second-biggest decliner among the 33 industry groups on the Topix.

GDP Revision

The Ministry of Finance said today capital spending fell 7.3 percent in the three months to Dec. 31. The government will use the report to revise its estimate of gross domestic product for the fourth quarter. Anything worse than a 2 percent decline will cause GDP to be revised lower, according to economists including Hiroshi Shiraishi at Lehman Brothers.

Komatsu, the world's second-biggest maker of earthmoving equipment, lost 1.5 percent, while Japan Steel Works Ltd., which makes forged steel parts used in nuclear plants, sagged 2.8 percent to 1,608 yen, the lowest close since Feb. 20.

``Lower capital spending forced investors to face the reality that the earnings outlook for businesses is worsening,'' said Naoki Fujiwara, chief fund manager at Shinkin Asset Management Co., which manages the equivalent of $5.1 billion. ``The atmosphere has become increasingly unpleasant.''

Flipping Market

The Nikkei rose as much as 0.4 percent today, and swung between gains and losses 10 times. The index flipped 18 times yesterday.

``Investors are caught in a dilemma,'' Fujiwara said. ``They're hesitating to sell holdings because prices are relatively cheap now, but they can't buy because of all the uncertainty.''

/... http://www.bloomberg.com/apps/news?pid=20601101&sid=awsTnSgglrWw&refer=japan

[Ghost Dog]

16. HSBC raises more than $1 bln Asia buyout fund

HONG KONG, Reuters - HSBC has raised more than $1 billion for an Asian private equity fund, its Asia CEO told Reuters, allowing HSBC to expand investments in the bank's strongest region.

"The demand has been high even in these markets. (The fund) will be over $1 billion," Sandy Flockhart said in an interview with Reuters.

"We have name recognition and obviously we have a lot of contacts that we can use in our networks to find opportunities," Flockhart added on Tuesday. "So despite the lower market conditions, we continue to successfully raise money."

The high demand for HSBC's (0005.HK: Quote, Profile, Research) private equity fund shows that even amid a global credit crunch that choked off dealmaking by banks and buyout shops, Asia is attracting loads of investors seeking to tap the region's growth.

Flockhart did not give any more specifics regarding the private equity fund. Public Affairs head David Hall declined to comment further.

/.. http://www.reuters.com/article/marketsNews/idCNTHKG18599720080305?rpc=611

[UpInArms]

14. dollar watch

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

Last trade 73.790 Change +0.073 (+0.10%)

Interest Rates: Where are they Headed?

http://www.dailyfx.com/story/bio1/Interest_Rates__Where_are_they_1204670196259.html

There are six central banks announcing interest rate decisions this week and two out of the six have already made their decisions official, with the Reserve Bank of Australia raising rates by 25bp and the Bank of Canada lowering rates by 50bp. In the currency market, it is not about what you have done but what you plan on doing in the future that matters, which is why both the Australian and Canadian dollars sold off after the monetary policy meeting. Interest rates in Australia are now at a 12 year high, but that did not prevent the Aussie from falling over 1 percent against the US dollar, Euro and Japanese Yen. After raising interest rates by 100bp over the past 8 months, the RBA is pressing on the breaks while the BoC is pushing on the gas pedal. According to the statement given by Governor Stevens, domestic demand is moderating and tight financial conditions could cause growth to slow even further. In other words, it is very likely that last night’s rate hike from the RBA was their last. As for the Bank of Canada, not only did they cut interest rates by more than the market expected, but new Governor Mark Carney warned that “further monetary stimulus is likely to be required in the near term.” Despite record oil prices, Canada is growing increasingly worried that the slowdown in the US economy will have significant spillover effects, which is why they are trying to be as proactive as possible by cutting interest rates now rather than later. This has triggered a sell-off in the Canadian dollar that should last for at least the next few days. Tomorrow, the Reserve Bank of New Zealand will be making their own interest rate announcement. Unlike the RBA or the BoC, the RBNZ is not expected to alter interest rates but they are expected to remain hawkish. In addition to the RBNZ meeting, Australia will also be releasing fourth quarter GDP. A drop in retail sales and trade in the last 3 months of 2007 should hang heavily over growth, keeping near term pressure on the Australian dollar.

US Dollar: Time to Shift Focus to Non-Farm Payrolls

The US dollar extended its weakness against the Euro, British pound and Japanese Yen as traders begin to shift their focus to Friday’s non-farm payrolls report. Tomorrow we are expecting a number of leading indicators for non-farm payrolls including the Challenger Layoff report, the ADP employment survey and service sector ISM, which should be a big market mover. If service sector ISM fails to recover, there is a decent chance that we will see a particularly horrid non-farm payrolls number on Friday. Fed officials are also dueling it out on inflation which suggests that the Beige Book report, which will also be released tomorrow could focus primary on growth. Federal Reserve Governor Mishkin believes that the US economy faces grave risks and inflation pressures would abate because of that, justifying Bernanke’s particularly bearish stance last week. Fed President Fisher on the hand told a conference in London that “containing inflation” should be the purpose of the Federal Reserve and “if a temporary economic slowdown is what we must endure while we achieve that purpose,” then it is a burden that they “must bear, however politically inconvenient.” This leads us to wonder whether the rate cuts by the Federal Reserve is pressured more by politics than economics, but that’s debate for another day. We continue to believe that the US dollar will see further weakness before it stands a chance at recovering in the second half of the year.

...more...

Pound Whipsaws, Dollar Awaits ISM Services - How Bad Will It Be?

http://www.dailyfx.com/story/bio2/Pound_Whipsaws__Dollar_Awaits_ISM_1204716905561.html

Very whippy night in the currency markets, marked by contradictory data which created wide trading ranges hurting both longs and shorts in the process. In UK today the news started on the downside as Nationwide consumer confidence data plunged to its lowest level in 3 years, reigniting speculation that the BoE may surprise the market by lowering rates tomorrow after the MPC meeting. Sterling plummeted by more than 100 points with selling flows exacerbated by redemption of nearly 15 Billion in Gilts due this Friday.

However, the much better than expected PMI Services survey which printed at 54 versus the forecast of 52, quickly reversed the dour mood and cable recovered to the 1.9800 figure. The PMI services report showed a combination of sustained growth and continued price pressures in the system that is very likely to keep the BoE stationary for the time being. Furthermore, the rise in business expectations which reversed the drops of the prior two moths bodes well for pound bulls who argue that UK economy is nowhere near as vulnerable to a slowdown as the US economy. This week UK economic data has shown surprising resiliency and should the positive news continue sterling may be able to shake off the negative sentiment that has enveloped the currency over the past several months and make another run at the 2.0000 figure. Our technical analysis make the same conclusion British Pound on the Brink of a Bullish Break.

Meanwhile, the EURUSD mainly marked time today oscillating in a 1.5140-1.5220 range as it continues to hug the 1.5200 level looking for direction. Data overnight was essentially in line, with EZ retail sales staging a modest rebound from the drop the month prior. The EZ consumer appears to have gained a modicum of confidence buoyed by strong euro and expansionary employment environment. This however, is only a tiny improvement in attitude as energy costs and credit crunch concerns continue to weigh on consumer spending. Nevertheless, the news from the EZ remains supportive of EZ hawkish stance and rates will remain at 4% for the foreseeable future.

The euro rally appears tired, with traders needing fresh reasons to sell the greenback, but the move may not be exhausted just yet. Today’s ISM Non-Manufacturing and more importantly Friday’s NFP release may be the deciding factor in determining if the pair rockets higher to challenge the 1.5300 area or drops back to the 1.5000 support. If the employment component of the ISM Manufacturing signals the possibility of a second straight month of job losses in the NFP, the euro rally could resume.

...more...

[Ghost Dog]

20. Euro= USD 1.519, GBP 0.768, CHF 1.581 and JPY 158.3 at this time

[Ghost Dog]

46. Euro= USD 1.526, GBP 0.767, CHF 1.580 and JPY 158.5 at this time

[Roland99]

60. Notice the wild fluctuations in the dollar trading lately?

Volatility indices must be going nuts all over.

[Ghost Dog]

67. Pessimism drives dollar to record troughs vs euro

NEW YORK, March 5 (Reuters) - The dollar fell to record lows against the euro and a basket of currencies on Wednesday amid growing pessimism over the U.S. economy following data showing the key service sector contracted for a second straight month in February.

At the same time, U.S. Treasury Secretary Henry Paulson told policy-makers that while the economy would likely continue to grow, risks were to the downside, adding to mounting fears of an economic recession.

"The comments from Mr. Paulson were not particularly constructive. It's just a trend that continues to be in place," said John McCarthy, director of foreign exchange at ING Financial Markets in New York.

The euro <EUR=> jumped to a historic peak of $1.5302 against the dollar, according to Reuters data. It was last trading at $1.5284, up 0.5 percent on the day.

The dollar index, which tracks the greenback's performance against a basket of currencies, dipped to record troughs at 73.371 .DXY.

"There were stops above 1.5250 and 1.5275. People are selling dollars across the board. It's tied to general demand for euro against the yen and Swiss franc as well," said McCarthy.

/... http://www.reuters.com/article/marketsNews/idINN0562215520080305?rpc=611

[Ghost Dog]

92. Euro= USD 1.528, GBP 0.766, CHF 1.584 and JPY 159.5 at this time

[Ghost Dog]

17. European shares rebound on Ambac bailout hopes

LONDON, March 5 (Reuters) - European shares rose early on Wednesday, with a report that a bail-out for U.S. bond insurer Ambac Financial Group (ABK.N: Quote, Profile, Research) was near helping shares bounce back after five days of losses.

Hopes for a prompt rescue package for Ambac made banks the top-performing sector in morning trade, led by gains in HSBC (HSBA.L: Quote, Profile, Research), HBOS (HBOS.L: Quote, Profile, Research) and UniCredit (CRDI.MI: Quote, Profile, Research), which rose between 2 and 3.6 percent.

At 0946 GMT, the FTSEurofirst300 index was up 0.6 percent at 1,287.73 points, with banks leading the way after being hit on Tuesday on concerns over possible trading losses.

Credit Agricole (CAGR.PA: Quote, Profile, Research), France's biggest retail bank, posted a fourth-quarter loss as it booked large writedowns due to the credit crunch but said it was not planning any major acquisitions -- which traders said was helping the stock rise 2.9 percent.

Shares in Swiss bank UBS (UBSN.VX: Quote, Profile, Research) -- the biggest victim of the credit crisis among major European banks -- also rose 1.4 percent on market talk that the bank had offloaded Alt-A mortgages to Pimco, a unit of Allianz (ALVG.DE: Quote, Profile, Research), traders said.

UBS declined to comment on the talk, while Pimco would not confirm the speculation.

The bank sector has fallen by about 20 percent this year and contributed in large part to the 15 percent fall in the broader European equities market.

/... http://www.reuters.com/article/marketsNews/idCAL0510254620080305?rpc=611

[Ghost Dog]

18. European shares extend gains, track U.S. futures

FRANKFURT, March 5 (Reuters) - European shares extended their gains by midday on Wednesday, tracking a rise in U.S. stock index futures and helped by a report that a bailout for U.S. bond insurer Ambac Financial Group (ABK.N: Quote, Profile, Research) was near.

At 1128 GMT, the FTSEurofirst 300 index of leading European shares was up 1.2 percent at 1,294.77 points.

The DJ Stoxx financial services index was the leading sectoral gainer with a rise of 2.8 percent.

/.. http://www.reuters.com/article/marketsNews/idCAWEB765620080305?rpc=611

[Ghost Dog]

66. Banks, commods help Europe shares snap 5-day fall

LONDON, March 5 (Reuters) - European shares snapped a five-day losing streak on Wednesday, helped by hopes of an imminent rescue package for bond insurer Ambac (ABK.N: Quote, Profile, Research) and better-than-expected U.S. service sector data.

The pan-European FTSEurofirst 300 ended unofficially up 1.6 percent at 1,300.98 points.

Banks and commodity stocks were the top weighted gainers. HSBC (HSBA.L: Quote, Profile, Research) rose 2.4 percent, HBOS (HBOS.L: Quote, Profile, Research) 6 percent, Societe Generale (SOGN.PA: Quote, Profile, Research) 3.5 percent and BNP Paribas (BNPP.PA: Quote, Profile, Research) rising 2.5 percent.

Miners tracked copper prices higher, and oil stocks followed a similar percentage rise in crude. BP (BP.L: Quote, Profile, Research), Total (TOTF.PA: Quote, Profile, Research) and Royal Dutch Shell (RDSa.L: Quote, Profile, Research) rose 1.7-2.5 percent.

/.. http://www.reuters.com/article/marketsNews/idCAL0583169720080305?rpc=611

[Maeve]

19. Those pollworkers got coffee????

:hangover:
Otherwise, yeah...the cartoon reflects yesterday for me. Okay, we had dead periods--we're only a small precinct with less than 1000 registered voters, but last November I had time to crochet. Not yesterday.

I still don't think "fairy dust" is the right metaphor for swings like yesterday...fairies don't work that hard. I reckon it's gnomes (Did you ever really look at Greenspan and some of his cohorts? It's gnomes, I'm telling ya!)

[Demeter]

25. Are You Working the General Election?

I'm beginning to get cold feet about it. Especially if I get stuck in the shoebox precinct.

I worked 2004, and that was okay--nearly 100% turnout, but a lot of it was absentee, and the space was adequate. But lately they've been shoving me into the worst polling place in town--two precincts in a room full of school stuff and no place to walk, let alone accommodate lines of people.

If I declared myself Republican, I could get my choice of places to work, and even be paid more as a chairman--but it would be wrong. And I couldn't bear the shame of being even implausibly thought a member of the GOP.

Or if we got paid more than $10/hour....

[Maeve]

27. You get $10 an hour?????

Gee, we were happy that they finally up our pay to minimum wage for a 14 hour day...

Yeah, I'm going to work November, but I'm going to be in better shape and get some gel inserts for my shoes. I was working the machines and on my feet the whole time. I'm now (as of yesterday) no longer a declared Repub (last year I voted R as a spoiler, to get the least electable R on the ballot for gov). As an Independent in Ohio, I can "represent" either party at the polls, but they aren't going as hard for balance as they used to--too few workers. (However, they still limit the number of declared R's or D's in one precinct, so one party can't take over the process).

[Demeter]

30. Ann Arbor Has Fair Wage Rules

and while $10 isn't a fair wage for the living costs, it's certainly better than minimum. Sorry to hear it's so backwards in Ohio. Would you consider moving a bit north?

[Maeve]

32. Nah, when I move "north" next, it will be further than Michigan and MUCH further east!

We want to retire to Ireland, ya see...

[Demeter]

34. Good Plan!

I wish I were Irish--does loving celtic music, dance and art qualify?

Poles used to retire to the old country and live like kings (before Reagan) on their Social Security. But between the collapse of the dollar, the fascism in Poland and the fact that I'm 4 generations and one language removed, it doesn't seem like a very good idea...

[Maeve]

51. The current slogan of Dublin Ohio is--"Irish is an Attitude!"

Wanting to be Irish is enough...and since most of Europe was Celtic at some time, we're all cousins anyway. :toast:

[AnneD]

52. My fav Irish quote...

was from the 1991 movie The Commitments.....

"Do you not get it, lads? The Irish are the blacks of Europe. And Dubliners are the blacks of Ireland. And the Northside Dubliners are the blacks of Dublin. So say it once, say it loud: I'm black and I'm proud."

It doesn't get more Irish than that.

[Maeve]

54. Roddy Doyle's books are hilarious!

Very, very Dublin...and the movies made from them are gems (The Commitments, The Snapper and The Van).

[AnneD]

61. I'll check the others out....

I loved The Commitments so much. Thanks Maeve!

[Warpy]

73. "The Snapper" is especially good

Colm Meany is still the Da, but the whole family has changed around.

The humor is intact.

[Demeter]

65. Gives a New Meaning to the Concept of Black Irish, Doesn't It?

[AnneD]

37. Morning Marketeers.....

:donut::donut::hangover: and lurkers. That extra coffee is for all you poll workers. That extra coffee and donuts are for you. We had one precinct that didn't get out until after 3am.

The inside skinny here...We had a lot of out of state (generally Obama supporters) folks coming in and riding rough shod over the locals. That didn't sit well. At our precinct, 400 folks came out for the caucus. It was very cold and the precinct captain thought that it was wise to let those frail and elderly into the building. Well most of those women were Clinton supporters. The guy rallying the obama group, from the University of W. Virginia, started agitating the crowd and trying to block these elderly voters. Now the precinct Captain was going to let everyone in-she's just a retired Nurse that is concerned about the health and well being of our elderly neighbors. In the chaos, her role sheets were taken by a lady (an innocent mistake) but she was close to calling the sheriff to pick up the sheets or arrest the lady because those are official documents of the Texas DEM party.

Our school secretary is hispanic and went to the precinct caucus. Unfortunately they had 4 different precincts meeting there. Her group was fairly organized, but one group wasn't and they started playing the race card (which at a DEM party caucus where you are considering a woman or an African American candidate for President is a total turn off and illogical).

I am dispassionate on this one but the Obama supporters did not win many friends and came off looking the worst when it came to manners. They managed to undo his message of uniting us for a positive change. Most of the women that voted for Clinton cited the abusive M$M coverage leading up to the primary as a motivating factor in their voting and caucusing. And my GOP friends....they voted for Hillary because they can't stand McCain.

It was a hard fought battle and folks here appreciate our system, but it points out to some flaws in the DEM party here.....and why we need grass roots reform.

Happy hunting and watch out for the bears.

[Hugin]

98. Good Evening AnneD...

:hangover:

I've been out-of-pocket for the last couple of days.

But, it looks like y'all have been riding the Ruction Roller-coaster! WhoooWHEE!


I was very surprised to read Chopper Ben's comments to the Banks yesterday. If he keeps that sort of talk
up, he may well talk his way out of his nick-name. I was pleasantly surprised. But, as usual it may be a
Dollar short and a day late to help. I've had about enough of talk.

See you tomorrow! :D

I'll be trying to come up with a musical choice. It's getting harder.

[UpInArms]

21. Unemployed, and Skewing the Picture

http://www.nytimes.com/2008/03/05/business/05leonhardt.html?ex=1362373200&en=7e6024bfb22e2cb9&ei=5088&partner=rssnyt&emc=rss

Consider this: the average unemployment rate in this decade, just above 5 percent, has been lower than in any decade since the 1960s. Yet the percentage of prime-age men (those 25 to 54 years old) who are not working has been higher than in any decade since World War II. In January, almost 13 percent of prime-age men did not hold a job, up from 11 percent in 1998, 11 percent in 1988, 9 percent in 1978 and just 6 percent in 1968.

Even prime-age women, who flooded into the work force in the 1970s and 1980s, aren’t working at quite the same rate they were when this decade began. About 27 percent of them don’t hold a job today, up from 25 percent in early 2000.

There are only two possible explanations for this bizarre combination of a falling employment rate and a falling unemployment rate. The first is that there has been a big increase in the number of people not working purely by their own choice. You can think of them as the self-unemployed. They include retirees, as well as stay-at-home parents, people caring for aging parents and others doing unpaid work.

If growth in this group were the reason for the confusing statistics, we wouldn’t need to worry. It would be perfectly fair to say that unemployment was historically low.

The second possible explanation — a jump in the number of people who aren’t working, who aren’t actively looking but who would, in fact, like to find a good job — is less comforting. It also appears to be the more accurate explanation.

[Ghost Dog]

28. Nice. n/t

[Roland99]

47. Hmmm...and aren't those trends upward under Repub admins?

[Warpy]

75. They are

and it would be a real pleasure to see real unemployment statistics instead of the "unemployed for the first six months" statistic we're being fed by the lying government.

My guess is that it's been in double digits for both sexes for years.

[kineneb]

80. "self-unemployed" ?

I am employed, I just don't get any pay.

They include retirees, as well as stay-at-home parents, people caring for aging parents and others doing unpaid work.

...or people between 25 and 54 who are caring for "terminally ill" spouses.

Do caregivers have a choice?

[Demeter]

90. Sure. Cut Your Heart Out And Throw Your Family on the Tender Mercies of the State

It's the Republican way.

[Birthmark]

87. Good for the NYT. They are only three years...

...behind me. I wrote this: http://www.seattlebuzz.net/phpBB2/viewtopic.php?f=98&t=5386 on March 13, 2005. Actually, I think that I posted it somewhere else about six or eight months before that, but I don't remember where. But I remember posting it before the 2004 elections.

So congrats to the NY Times for being just three years behind an unqualified layman. Keep shooting for the stars, guys!! lol

[UpInArms]

22. Filings for Bankruptcy Up 18% in February

http://www.nytimes.com/2008/03/05/business/05bankruptcy.html?ex=1362373200&en=9074455412549ba1&ei=5088&partner=rssnyt&emc=rss

Americans filed for bankruptcy in growing numbers in February, buckling under the combined weight of rising energy prices, a weakening housing market and sky-high personal debts.

An average of 3,960 bankruptcy petitions were filed per day nationwide last month, up 18 percent from January and up 28 percent from a year earlier, according to Automated Access to Court Electronic Records, a bankruptcy data and management company.

February was the busiest month for filings since Congress overhauled the bankruptcy law in 2005. Bankruptcy experts said the rise was particularly worrisome because those changes made filing for bankruptcy more complicated and expensive.

“This number of bankruptcies may be under-representative of the true financial distress consumers are feeling because of the steps Congress has taken,” said Jack Williams, a scholar in residence at the American Bankruptcy Institute and a professor at Georgia State University.

The latest figures show the financial pain is spreading from states like California and Florida, which exemplified the housing boom and subsequent bust, to those along the Eastern Seaboard like Maryland, Virginia and Delaware, which were among the 10 states with the largest percentage increase in filings in January and February. “You are seeing a good-size uptick everywhere,” said Mike Bickford, president of Automated Access.

<snip>

“Everything is going wrong for households,” Mr. Zandi said. “They are struggling with rising unemployment; high debt loads, heavier because of mortgage resets and plunging housing values; soaring gasoline prices; wobbly stock prices. The data suggest bankruptcies will rise measurably through the remainder of the decade.”

...more at link...

[UpInArms]

23. US layoffs down in Feb but job cuts broaden-survey

http://www.reuters.com/article/bondsNews/idUSNAT00377520080305?sp=true

NEW YORK (Reuters) - Planned layoffs by U.S. companies fell by 14.2 percent in February compared with the same month a year ago, according to a report suggesting Friday's monthly employment data by the government might show some resilience despite troubling signs for the future.

Employment consulting firm Challenger, Gray & Christmas Inc. also said on Wednesday that planned layoffs were down 3.9 percent in February from January.

<snip>

After last month's government labor market report showed U.S. payrolls shrank in January for the first time in nearly 4-1/2 years, economists will be eager to see if this is replicated in February.

The Challenger report may lend support to expectations that Friday's payrolls report will manage a small gain, but it also indicates that the problems afflicting the troubled U.S. economy are spreading throughout the labor market.

"While job cuts were down slightly, increased layoffs by government agencies and retailers provided further evidence that the impact of the housing slump is spreading beyond the housing and financial sectors," the Challenger report said.

Through the first two months of 2008, job cuts totaled 147,077, nearly even with the 146,989 cuts announced in January and February of 2007.

...more...

[DemReadingDU]

24. Healthcare fraud trial in Columbus, Ohio - Update

3/5/08 Defense: Computer data may have been lost
Prosecution's case depends on evidence from company's system

The government's fraud case against five former executives of National Century Financial Enterprises hinges in part on information contained in the health-care finance company's computers.

As defense attorneys began to counter prosecution arguments yesterday, a computer expert testified that multiple crashes in National Century's computer system could have led to the loss of information.

That information -- on "accounts receivable," the collateral against which National Century gave clients money -- serves as the basis for much of the prosecution's case.

Defense attorneys for the five executives hired Jon Bryant, a former computer consultant to National Century, to analyze data from company computers.

But when he went to make a copy of the company's hard drive, Bryant said, he was told that nine of the company's computer drives had been replaced because of system crashes.

The employee overseeing the computers for the government discovered the crashes in May 2007, Bryant said.

The computer backs up information by spreading information among the various hard drives, so recovering all the data could be difficult, he said. But he said he was able to rebuild the system to extract some information.

Assistant U.S. Attorney Doug Squires objected to Bryant's testimony, saying the crashes occurred in late 2002, after the alleged crimes occurred, but federal Judge Algenon L. Marbley overruled the objection.

more...
http://dispatch.com/live/content/business/stories/2008/03/05/NatCen05.ART_ART_03-05-08_C8_VP9HSFP.html?sid=101

link to previous articles
http://www.democraticunderground.com/discuss/duboard.php?az=show_mesg&forum=102&topic_id=3208795&mesg_id=3208905

Judge rules against acquittal motion in National Century case
http://www.democraticunderground.com/discuss/duboard.php?az=show_mesg&forum=102&topic_id=3208795&mesg_id=3209537

[Demeter]

26. The Computer Equivalent of "The Dog Ate My Homework"

and just as believable.

[Maeve]

29. Double Bubble Trouble--NYT

If the American economy were entering a standard cyclical downturn, there would be good reason to believe that a timely countercyclical stimulus like that devised by Washington would be effective. But this is not a standard cyclical downturn. It is a post-bubble recession.

The United States is now going through its second post-bubble downturn in seven years. Yet this one stands in sharp contrast to the post-bubble shakeout in the stock market during 2000 and 2001. Back then, there was a collapse in business capital spending, a sector that peaked at only 13 percent of real gross domestic product.

The current recession has been set off by the simultaneous bursting of property and credit bubbles. The unwinding of these excesses is likely to exact a lasting toll on both homebuilders and American consumers. Those two economic sectors collectively peaked at 78 percent of gross domestic product, or fully six times the share of the sector that pushed the country into recession seven years ago.

For asset-dependent, bubble-prone economies, a cyclical recovery — even when assisted by aggressive monetary and fiscal accommodation — isn’t a given. Over the past six years, income-short consumers made up for the weak increases in their paychecks by extracting equity from the housing bubble through cut-rate borrowing that was subsidized by the credit bubble. That game is now over.



http://www.nytimes.com/2008/03/05/opinion/05roach.html?ref=opinion

[Demeter]

35. Funny How They Never List FRAUD As a Prime Cause of Our Troubles

Could it be because the fraudsters are in charge?

[UpInArms]

36. U.S. jobs report pares stock, dollar gains

http://www.reuters.com/article/bondsNews/idUSL051306920080305?sp=true

LONDON, March 5 (Reuters) - Financial market focus centred on the U.S. economy's key services sector on Wednesday after a weaker-than-expected private jobs report cut into European stock gains and kept the dollar on the back foot.

Oil rose above $100 a barrel again.

Wall Street looked set for a positive start but one weighed on by a report showing that U.S. private employers cut 23,000 jobs in February, contrary to expectations of a gain.

The Institute of Supply Management's non-manufacturing index due at 1500 GMT was seen rising above its record low in January but still staying within territory that suggests economic contraction rather than expansion.

A second month of shrinkage in the index would lend considerable support to analysts who say the United States is already in recession.

Along with the ADP employers report, the data is expected to consolidate investor views about U.S. jobs data to be released on Friday, a major indicator of likely interest rate moves.

...more...

[UpInArms]

40. Eighth GM plant to be hit next week by Axle strike

http://www.reuters.com/article/bondsNews/idUSN0533618720080305?sp=true

DETROIT, March 5 (Reuters) - General Motors Corp (GM.N: Quote, Profile, Research) said on Wednesday that an eighth plant, which builds sport utility vehicles in Wisconsin, will be affected next week as the impact from a strike against supplier American Axle & Manufacturing Holdings Inc (AXL.N: Quote, Profile, Research) widens for the No. 1 U.S. automaker.

GM's Janesville, Wisconsin, assembly plant will operate on shortened shifts next week due to the United Auto Workers union strike against the supplier, the automaker said on a company Web site.

The plant builds the Chevrolet Tahoe and Suburban, and GMC Yukon and Yukon XL SUVs, and employs almost 2,300 hourly workers.

GM said if the strike lasted beyond next week, it would evaluate other work schedules for the plant.

On Tuesday, GM said it expected to close its Toledo, Ohio, transmission plant next week. The eight affected GM plants combined employ almost 17,400 hourly workers, or almost 22 percent of the automaker's blue-collar work force in North America.

At American Axle, about 3,600 UAW-represented workers in Michigan and New York went on strike on Feb. 26 against the supplier. It relies on GM for almost 80 percent of its sales.

...more...

[UpInArms]

41. 10:00 EST rocketing upward (that ISM must have been good!)

Dow 12,285.03 71.23 (0.58%)
Nasdaq 2,274.86 14.58 (0.65%)
S&P 500 1,334.84 8.09 (0.61%)
10-Yr Bond 3.60% 0.021

NYSE Volume 364,855,718.75
Nasdaq Volume 257,631,812.5

09:40 am : Fresh out of the blocks the stock market is making a positive start. Eight of the ten major economic sectors are trading in the green.

Utilities (-0.3%), which had been an outperformer in previous sessions, is a laggard in early trading. Consumer staples (flat), another defensive-oriented sector, is also a relative laggard. The two sectors are posting minimal declines, however.DJ30 +18.32 NASDAQ +9.08 SP500 +3.24 NASDAQ Dec/Adv/Vol 821/1404/122 mln NYSE Dec/Adv/Vol 813/1789/62 mln

09:18 am : S&P futures vs fair value: +4.8. Nasdaq futures vs fair value: +8.8. The stock market remains on track to start trading in positive territory. Pleasing earnings results from a handful of retailers are providing a sense of optimism to the pre-market. Oil prices are up 1.5% and now trading at $101.00 per barrel on the belief that OPEC will leave oil production unchanged.

09:00 am : S&P futures vs fair value: +3.0. Nasdaq futures vs fair value: +9.0. Futures continue to indicate a positive start. Oil prices are trading 1.3% higher at $100.80 per barrel.

[Demeter]

44. What Is ISM?

[Ghost Dog]

55. Institute for Supply Management

http://www.ism.ws/

ed. Or, in UK, Incorporated Society of Musicians: http://www.ism.org/home.php

[cosmicdot]

79. formerly, it was N.A.P.M.

National Association of Purchasing Managers ... its PMI (Purchasing Managers' Index) is as good as any leading economic indicator ...

PMI is 48.3% (50.7 in January) http://www.ism.ws/ISMReport/content.cfm?ItemNumber=10744


THE LAST 12 MONTHS
Month PMI
Feb 2008 48.3
Jan 2008 50.7
Dec 2007 48.4
Nov 2007 50.0
Oct 2007 50.4
Sep 2007 50.5
Aug 2007 51.2
Jul 2007 52.3
Jun 2007 53.4
May 2007 52.8
Apr 2007 52.8
Mar 2007 50.7


Average for 12 months — 51.0
High — 53.4
Low — 48.3


Manufacturing failed to grow in February as the PMI registered 48.3 percent, a decrease of 2.4 percentage points when compared to January's seasonally adjusted reading of 50.7 percent.

A reading above 50 percent indicates that the manufacturing economy is generally expanding; below 50 percent indicates that it is generally contracting.

A PMI in excess of 41.1 percent, over a period of time, generally indicates an expansion of the overall economy. Therefore, the PMI indicates the overall economy is growing and the manufacturing sector is contracting at this time. Ore stated, "The past relationship between the PMI and the overall economy indicates that the average PMI for January and February (49.5 percent) corresponds to a 2.6 percent increase in real gross domestic product (GDP). In addition, if the PMI for February (48.3 percent) is annualized, it corresponds to a 2.3 percent increase in real GDP annually."



new ISM Report
http://www.ism.ws/ISMReport/MfgROB.cfm?navItemNumber=12942


back when Poppy was in the WH, the PMI was dropping and was low; so, he had his Operation Desert Storm ... lots of military spending occurred shortly before the bombing began ... the spending op was part of Operation Desert Shield ... lots of subcontracts and purchase orders were let in December 1990 ... of course, it wasn't enough to overcome Poppy's doing nothing while in office other than creating the Carlyle Group's network (and possibly the Blackstone Group's, too) while on taxpayers' dime ... or his discovery of scanning a pair socks at point of sale checkout :)

http://www.ism.ws/ISMReport/content.cfm?ItemNumber=10752
look at January 1991 (PMI = 39.2) vs. May 1991 (44.5) and June (50.3)

it might be interesting to see if the 'stimulus' checks affect the PMI down the road

[Demeter]

89. Thanks! It Was Educational!

I learn so much on this thread and website.

[Demeter]

43. They Didn't Even Wait for the Market to Open Before Hitting the ECT

[AnneD]

53. Economic slowdown cuts factory orders

WASHINGTON — U.S. factories saw demand for their products drop in January by the largest amount in five months, fresh evidence of an economy hobbled by housing and credit crises.

The Commerce Department reported today that new orders for manufactured goods fell 2.5 percent in January from the previous month. That marked a deterioration from December's 2 percent increase and was the biggest decline since August.

Manufacturers are feeling the sting of the economic slowdown and galloping prices for energy and other raw materials used in production. Persisting problems in the housing and credit markets are causing both people and businesses alike to be more cautious in their spending and investing.

The latest snapshot of manufacturing activity was on target with economists' predictions. The weakness was mostly concentrated in demand for costly "durable" goods, merchandise expected to last at least three years. These orders— including cars, airplanes, machinery and computers— dropped 5.1 percent in January, compared with a 4.4 percent increase in December.

http://www.chron.com/disp/story.mpl/business/5594052.html

Fewer slaves with less money to purchase fewer good....hmmmm

[Roland99]

56. 11:38am - Factory orders fall | Private-sector job rolls drop 23,000 | US productivity/unit costs up

Dow 12,308.89 +95.09
Nasdaq 2,281.28 +21.00
S&P 500 1,337.98 +11.23
10 YR 3.69% +0.11
Oil $102.25 $2.73
Gold $985.10 $18.80


REJOICE!!!


What was that Frat Boy quote from several years ago about making their own reality?

[AnneD]

57. Saks profit surges on gain, sales hike

NEW YORK — Saks Inc., the operator of Saks Fifth Avenue, reported Wednesday that its fourth-quarter profit almost doubled, helped by solid sales, cost controls and one-time gains.

The New York-based department store chain said that earnings rose to $39.5 million, or 26 cents per share, during the three-month period ended Feb. 2. That compared with $21.5 million, or 14 cents per share, in the prior-year period.

The results reflected a net gain of $10.4 million, or 7 cents per share, after taxes in the latest quarter. Items included a gain of $8.1 million associated with proceeds from an insurance settlement related to the New Orleans stores, which was destroyed in the aftermath of hurricane Katrina.

Sales rose almost 5 percent to $999.7 million in the fourth quarter from $955 million in the year-ago period. Wall Street analysts expected revenue of $993.61 million, according to a survey by Thomson Financial.

Saks shares rose 52 cents, or 3.4 percent, to $16.01 in morning trading.

more....

http://www.chron.com/disp/story.mpl/ap/business/5594432.html

The tale of 2 Americas continues.

[Roland99]

58. Even w/o that $8 million ins. settlement, their profits were still up 50%!

[Warpy]

77. Well, that top America is no longer having things custom made

if those Sak's figures are to be believed. They're buying their everyday clothing off the rack now, how declassé!

I'm pretty damned sure those figures aren't being driven by the upper middle class. Those folks are tapped out, too, killed off by falling house values and rising credit card rates.

[AnneD]

59. Top executives benefit taxwise, avoid restrictions

Top corporate executives often make large gifts of their company's stock to their family foundations shortly before the stock price drops sharply, according to a new study by a New York University professor.

As a result, the executives are able to claim the maximum possible tax deduction and escape capital gains taxes.

The research by David Yermack, a professor of finance at the Stern School of Business at New York University, also found patterns to suggest that some gifts of stock might have been backdated to enhance their value.

"On average, the gifts have been extraordinarily well-timed to maximize the associated personal income tax benefits," Yermack said, "and it seems to me fairly likely that some of these people making them may be monkeying around with paper trails."

All gifts in the study were made by corporate chairmen or chief executives. Yermack compared the donations to insider trading.

http://www.chron.com/disp/story.mpl/business/5592997.html

Who says you can't time the market:eyes:

[Roland99]

64. Well, helps a little when you're holding the stopwatch.

[AnneD]

62. Skepticism grows over Citigroup

NEW YORK — Sanford Weill built Citigroup into one of the world's largest banking companies. Now, Vikram Pandit is watching Weill's creation wither in the stock market.

Reflecting a punishing year-long decline, Citigroup's stock price plummeted on Tuesday to its lowest level since 1998, when Weill formed the financial conglomerate through the merger of Travelers and Citicorp.

The shares sank 99 cents, or 4.3 percent, to $22.10, as concern spread that new multibillion-dollar losses might force Citigroup to go hat in hand to foreign investors once again. The market tumble left Citigroup shares down 56 percent in the last year, the worst showing among the 30 stocks that make up the Dow Jones industrials.

For now, executives say they are confident that the company is financially strong. On Tuesday evening, Pandit told employees on an internal conference call that Citigroup was "well capitalized," according to a person close to the company.

more...

http://www.chron.com/disp/story.mpl/business/5593042.html

Maybe we should do a pool for which mega bank folds first.....winner gets a toaster:eyes:

[AnneD]

63. Retiree couple needs $225K for medical

NEW YORK — A couple retiring this year will need about $225,000 in savings to cover medical costs in retirement, according to a study released Wednesday by Fidelity Investments.

The figure, calculated for a couple age 65, is up 4.7 percent from the $215,000 estimate for 2007, the Boston-based financial services company said.

And it is similar to other projections for health care costs in retirement — daunting figures given that longer life spans also are requiring workers to increase retirement nest eggs.

<snip>
Given current levels of retirement savings, the center said, six in 10 older workers are "at risk" of being unable to maintain their standard of living in retirement.

<snip>
The study blamed the rising health care costs this year on higher unit costs, for example the cost of a doctor's visit; higher utilization rates for health care services; rising costs associated with new technologies; and increased incidence of some chronic conditions, like diabetes.

http://www.chron.com/disp/story.mpl/ap/business/5594273.html

The ting that jumped out at me was that 'higher utalization rates for health care services' was blamed as a reason for the increases as was an increased incidence of chronic conditions. So what....they expect us to have it but not use it. Study after study shows that regular medical care and preventitive measures are the most cost effective in the long run. We need to get Ins. Co out of health care and switch to universal coverage .

[kineneb]

81. that amount would not last long

if, like Hubby, one is in dialysis. At about $23-25,000/month, the person would be broke before the year was out. SSDI and Medicare kick in with the actual diagnosis of ESRD. But unless one has good private insurance, and lots of money, the patient winds up on Medicaid. Then the family winds up in poverty, often going through bankruptcy along the way.

Been there, am there. Slightly bitter? You bet.

[Karenina]

88. Naa, Du...

:hug::loveya::hug:

[Demeter]

69. If My '94 Saturn Drove Like This Market, I'd Be Looking for a New Car!

Fortunately, the little bug is like the Energizer Bunny...

[Lone_Star_Dem]

70. Ambac trading halted on NYSE

NEW YORK (Reuters) - Trading in Ambac Financial Group Inc (ABK.N: Quote, Profile, Research), the bond insurer, was halted around midday Wednesday on the New York Stock Exchange.

No further information was immediately available.

Ambac shares were trading up 63 cents, or 5.9 percent, at $11.35 prior to the halt.

http://www.reuters.com/article/ousiv/idUSWEN434520080305

Any guesses as to what gives? Is the breakup plan going into action?

[DemReadingDU]

71. The Fed's doing more damage than good

3/4/08 IRWIN KELLNER: The other side of the coin
Commentary: The Fed's doing more damage than good

The Federal Reserve's 2 1/4 point cut in the federal funds rate since the middle of September may be doing more harm than good -- if it is doing any good at all.

First and foremost, lower interest rates hurt savers. And while many people aren't putting much money away these days, most do have savings that they rely on to supplement their incomes.

This is especially true for seniors who must scrape by on Social Security and whatever they managed to save during their working years. Their funds tend to be in liquid instruments, such as bank savings accounts, certificates of deposit and short-dated Treasuries.

As you might imagine, since they are short-term in nature, rates on these instruments have plummeted along with the federal funds rate, thus cutting into these folks' incomes.

more...
http://www.marketwatch.com/news/story/fed-may-doing-more-harm/story.aspx?guid=%7BA998669F%2D3FCF%2D4A3C%2DB756%2D6FA6FC3C39B1%7D&siteid=yhoof

[Ghost Dog]

72. Interesting piece on naked shorting + Mafia on Wall St.

DU thread: http://www.democraticunderground.com/discuss/duboard.php?az=view_all&address=102x3210770
Source (note comments): http://media.www.dailyutahchronicle.com/media/storage/paper244/news/2008/03/05/News/Russian.Mafia.In.Bed.With.Wall.Street.Ceo.Says-3252089.shtml

[AnneD]

84. It is a good read...

thanks for the link GD.

[Ghost Dog]

74. Sudden Market Drop. What happened?

Dow 12,155.18 Down 58.62 (0.49%)
Nasdaq 2,257.17 Down 3.11 (0.14%)
S&P 500 1,321.48 Down 5.27 (0.40%)
10-Yr Bond 3.6790% Up 0.1000
NYSE Volume 2,343,874,500
Nasdaq Volume 1,402,020,000

1:00 pm : The stock market continues to trend lower into afternoon trading. The stock market spiked on speculation that a bailout plan for bond insurer Ambac (ABK 11.35, +0.63) was forthcoming, but exuberance has fizzled and the market is surrendering its gains.

Energy (+1.3%) has been a relative leader throughout trading. The sector is off its peak, but remains higher as oil prices hit a new intraday record of $104.56 per barrel. Oil and gas drillers and explorers continue to provide leadership to the sector. Chevron (CVX 88.37, +3.19) and Schlumberger (SLB 87.74, +3.19) are the most influential leaders within the energy sector.DJ30 +66.59 NASDAQ +17.80 SP500 +9.02 NASDAQ Dec/Adv/Vol 1162/1601/1.20 bln NYSE Dec/Adv/Vol 1083/1958/766 mln

12:30 pm : The stock market gives up most of its Ambac (ABK 11.35, +0.63) induced spike. The bond insurer's shares are currently halted for trading. There is speculation that the reason for the halt is due to an announcement regarding a bailout for the struggling company. A CNBC commentator said a consortium of banks is putting together a rights offer to sell stock to private inventories, with a backstop where banks will take the stock.

Even with the recent pullback, the major indices are still posting significant gains with all ten sectors in positive territory.

Commodities are rallying once again. Gold hit an all-time high of $993.30 per ounce, but has since retreated a bit to $988.60. The all-time high reached today is well below gold's 1980 inflation-adjusted high that surpassed $1800 per ounce.

Meanwhile, oil hit an all-time high of $104.56 per barrel on the decline in inventories. By most calculations, oil is now trading above its inflation adjusted high.DJ30 +58.29 NASDAQ +18.00 SP500 +9.11 NASDAQ Dec/Adv/Vol 1149/1572/1.08 bln NYSE Dec/Adv/Vol 1076/1957/679 mln

12:05 pm : Stocks have hit a session high, spiking on news that a major bond insurer could benefit from a bailout plan. The day's sentiment has been largely positive as each of the major indices began the day trading in positive territory.

Helping broader sentiment in the early-going was word that a bailout plan for Ambac (ABK 11.34, +0.62) would likely be announced today. The markets recently spiked on news that Ambac's stock is halted from trading. Traders are likely speculating that a plan to save the bond insurer is imminent.

The market is also benefiting by pleasing results from a batch of retailers. Big Lots (BIG 21.17, +3.79) and BJ's Wholesale (BJ 36.21, +2.93) topped earnings estimates. Notably, all ten of the major economic sectors are sporting gains this session.

The February ISM Services Index came in at 49.3, which is above the 47.3 economists came to expect. The news gave the stock market an early boost.

January factory orders declined but were in-line with expectations. January orders posted a reading of -2.5%, dead on with the consensus, but down from the 2.0% increase in the prior month.

Economic news was not entirely positive, however. The ADP Employment Report for February showed nonfarm private jobs fell by 23,000. The announcement was taken as a negative since the consensus called for 18,000 jobs to be added. The results were the worst since 2003.

Crude prices continue to be driven by reports from OPEC and the Department of Energy. OPEC announced it is leaving production levels unchanged, while the Department of Energy announced crude inventories fell 3.1 million barrels. Analysts were expecting oil inventories to increase 2.4 million barrels. Crude has spent the day trading higher. The commodity is currently near today's high, up 4.0% to $103.52 per barrel.DJ30 +121.14 NASDAQ +20.24 SP500 +14.58 NASDAQ Dec/Adv/Vol 1047/1659/941 mln NYSE Dec/Adv/Vol 938/2071/548 mln

11:30 am : Stocks remain near their best levels of the session, but largely range bound. Each of the major indices have been in positive territory since the open.

Refiners such as Valero (VLO 54.95, -1.72) and Tesoro (TSO 34.38, -1.40) are trading lower with today's rise in oil prices. However, drillers and exploration firms such as Transocean (RIG 140.50, +3.65) and Schlumberger (SLB 87.70, +3.15) are making advances.

Crude is trading 3.7% higher today. The commodity is currently trading hands at $103.13 per barrel.DJ30 +70.34 NASDAQ +16.85 SP500 +9.45 NASDAQ Dec/Adv/Vol 1068/1577/764 mln NYSE Dec/Adv/Vol 951/2018/453 mln

[DemReadingDU]

76. Possibly from Ambac being halted?

[Roland99]

78. U.S. Stocks Fall as Ambac Files for $1.5 Billion Cash Infusion

http://www.bloomberg.com/apps/news?pid=20601087&sid=aLcGUrOj.BY4&refer=home

U.S. stocks fell after Ambac Financial Group Inc. filed a plan to bolster capital with a $1.5 billion cash infusion, an amount smaller than some reports had predicted.

Bank of America Corp. and JPMorgan Chase & Co. retreated and financial shares in the Standard & Poor's 500 Index erased an earlier rally.

That's all I could find.



oh wait...


Ambac Seeks $1.5 Billion in Stock, Equity Unit Sales (Update2)
http://www.bloomberg.com/apps/news?pid=20601087&sid=aQ4KLiNCQg1E&refer=home

Ambac rose 63 cents, or 5.9 percent, to $11.35 in New York Stock Exchange composite trading before the shares were halted at noon. The shares have tumbled 87 percent in the past year before today.

Market levels at 1:55pm:

ow 12,173.18 -40.62
Nasdaq 2,258.47 -1.81
S&P 500 1,323.36 -3.39
10 YR 3.65% 0.07
Oil $103.80 $4.28
Gold $988.50 $22.20

Gold and black gold tearing up to new highs.

[Ghost Dog]

83. Yeah, Ambac bailout non-runner (mkt now decides not to panic):

Dow 12,203.13 Down 10.67 (0.09%)
Nasdaq 2,265.50 Up 5.22 (0.23%)
S&P 500 1,327.40 Up 0.65 (0.05%)
10-Yr Bond 3.6790% Up 0.1000
NYSE Volume 2,833,461,000
Nasdaq Volume 1,691,130,250

2:30 pm : The major indices come off their lows as they trade in mixed fashion near the unchanged mark.

Ambac (ABK 9.25, -1.47) news continues to dominate the wires. Moody's expects to confirm Ambac's rating after the bond insurer raises capital and implements its plan to strengthen its credit profile.

The Fed recently released its Beige Book. It said that economic growth has slowed since the beginning of the year, with two-thirds of districts citing softening or weakening in the pace of business activity. The Beige Book is anecdotal economic information and is published before FOMC policy meetings.DJ30 -15.22 NASDAQ +6.86 SP500 +0.88 NASDAQ Dec/Adv/Vol 1382/1440/1.63 bln NYSE Dec/Adv/Vol 1414/1667/1.08 bln

2:00 pm : The major indices have fallen into negative territory and investor sentiment has turned. Earlier this session all ten major economic sectors had been trading in positive ground. Now, only four remain in the green.

Shares of Ambac (ABK 9.18, -1.54) restarted trading, but have turned sharply lower after the company failed to announce a bailout. Instead, Ambac is issuing additional shares of common stock and equity units. The news has weighed on the overall market. Notably, Standard & Poor's left its rating on Ambac unchanged; it stated it would remove Ambac's ratings from credit watch and affirm a negative outlook if the company's capital raise is successful. Fitch left Ambac on watch negative.

The number of advancing stocks had outnumbered decliners by as much as 6-to-1 on the S&P 500 in the early going. With the loss of optimism, advancing stocks are now split evenly with decliners on the S&P 500.DJ30 -30.69 NASDAQ +0.20 SP500 -1.74 NASDAQ Dec/Adv/Vol 1498/1302/1.50 bln NYSE Dec/Adv/Vol 1524/1556/984 mln

1:35 pm : Each of the major indices have plunged to session lows. The broader market is reacting negatively to filings from Ambac (ABK 11.35, +0.63), and the S&P 500 has fallen into negative territory.

Market participants are pushing shares lower after word that Ambac announced a new common stock offering and business restructuring. The company has made no mention of a major bailout and does not anticipate the completion of its offering will result in S&P or Moody's assigning a stable outlook. The company believes it can execute a significantly reduced business plan and operate with AA ratings.

The financial sector (-1.5%), the most influential among the ten major economic sectors, has become subdued after shares of ABK have been halted. Financials initially spiked on word that shares of Ambac were halted and traders came to expect a bailout would be announced today. The sector jumped from the unchanged line to 1.7% for the better.DJ30 -23.28 NASDAQ 2.82 SP500 -1.16 NASDAQ Dec/Adv/Vol 1366/1409/1.35 bln NYSE Dec/Adv/Vol 1375/1673/881 mln

[AnneD]

91. What does is say about the ecomonic situation....

when a bunch of the 'unwashed masses' is ahead of all these economic Einsteins....If we had a bit more money to wager, we'd be skunking them, even if they do rig the rules;).

[ozymandius]

96. I dunno AnneD. I often wonder too about 'what gives'.

All this unregulated and misguided investment vehicles owe their continued existence to the Greenspan Fed and a Republican congress. Precisely, Greenspan was the champion of deregulation and continued unregulation of hedge funds. He has also argued passionately for economic policies that are anathema to securing stability for the working man's present and future.

Greenspan is no dummy - we know. But he is certainly a tool. And a fool. He may consider himself a member of the 'ruling class'. But why would he trash his legacy so completely with moronic advice and policy? And why does Bernanke follow suit, imitating Greenspan's style?

Burning questions.....

[UpInArms]

93. putting lipstick on the pig

Dow 12,254.99 41.19 (0.34%)
Nasdaq 2,272.81 12.53 (0.55%)
S&P 500 1,333.70 6.95 (0.52%)
10-Yr Bond 3.693% 0.114

NYSE Volume 4,277,716,500
Nasdaq Volume 2,271,943,000

4:25 pm : The stock market saw its share of ups and downs today. The three major indices opened in positive territory after a batch of favorable earnings reports and continued news that a bailout for a beleaguered bond insurer was imminent. Stocks fell from positive territory into the red, dipping 1.8% from the session's peak to its trough, after the bond insurer failed to announce the anticipated bailout.

The stock market was off to a positive start when retailers Big Lots (BIG 21.23, +3.85) and BJ's Wholesale (BJ 35.52, +2.24) announced earnings results that were better than analysts expected. The upbeat tone persisted even after the February ADP Employment Report showed private nonfarm payrolls fell 23,000, which is less than the 18,000 payroll increase many came to expect.

After the opening bell, a better than expected ISM Services index February reading gave market participants further encouragement in the early going. The report came in at 49.3, which is above economists' 47.3 consensus estimate. The reading is also above the prior month's measure of 44.6. Additionally, January's factory orders showed a 2.5% downturn, which is even with economists' expectations. December's revised reading reflected a 2.0% increase.

Word that Ambac (ABK 8.70, -2.02) would likely be announcing a bailout after meeting with a consortium of banks had been fueling the morning's prevailing positive sentiment. The positive sentiment peaked when shares of Ambac were halted from trading, pending an announcement. The halt led traders to believe the bond insurer would be announcing a major bailout, which lifted broad market sentiment and sent the market to its best level of the session. Instead, the exuberance fizzled and the rally faded when the company announced it would be issuing common stock and equity units to raise capital, rather than a major bailout. Shares of ABK re-opened sharply lower.

Crude hit a new intraday high of $104.95 per barrel before closing at $104.45 per barrel. Oil prices saw a jump after OPEC announced it will keep production levels unchanged and the Department of Energy announced inventories declined by 3.1 million barrels. The consensus forecast called for a build of 2.4 million barrels.

Gold also hit an all-time high of $993.30 per ounce today, in nominal dollars. The yellow metal closed the session up $19.90 at $986.20 per ounce.DJ30 +41.19 NASDAQ +12.53 NQ100 +0.6% R2K +0.4% SP400 +0.6% SP500 +6.95 NASDAQ Dec/Adv/Vol 1365/1517/2.24 bln NYSE Dec/Adv/Vol 1263/1870/1.62 bln

3:30 pm : Into the final stretch the stock market continues to hold on to its gains.

Within the S&P 500, biotech and financial stocks are the most influential laggards. Shares of Pfizer (PFE 21.89, -0.35), Merck (MRK 42.81, -0.57), and Wyeth (WYE 42.28, -0.90) are all trading lower, while Bank of America (BAC 37.49, -0.65), American International Group (AIG 44.50, -1.13), and JP Morgan Chase (JPM 38.63, -0.56) are also weighing on the market. Pfizer, for its part, has traded lower in response to a displeasing announcement related to aligning its business structure with cost initiatives. Financials continue to trade lower in conjunction with disappointing news from Ambac (ABK 9.06, -1.66).DJ30 -2.04 NASDAQ +7.58 SP500 +2.93 NASDAQ Dec/Adv/Vol 1417/1447/1.94 bln NYSE Dec/Adv/Vol 1373/1735/1.31 bln

3:00 pm : Stocks have made their way back into positive ground. From its session high to its recent low, the market fell 1.8%, but stocks continue to fight their way out of the recent lull.

Materials (+2.1%) continue to provide leadership. Monsanto (MON 114.85, +3.13) and Freeport McMoRan (FCX 104.00, +5.07) are holding up in the face of broader market fluctuations and influencing the sector with the most leadership.

Energy (+1.4%) has also been a relative leader today. The sector continues to trade higher after the Department of Energy announced crude inventories decreased 3.1 million barrels, which is below the 2.4 million barrel build economists were anticipating. OPEC also announced production levels will remain unchanged.

Crude prices closed on the Nymex up $4.93 to $104.45 per barrel.DJ30 +0.001 NASDAQ +0.38 SP500 +0.17 NASDAQ Dec/Adv/Vol 1377/1467/1.78 bln NYSE Dec/Adv/Vol 1399/1710/1.19 bln

2:30 pm : The major indices come off their lows as they trade in mixed fashion near the unchanged mark.

Ambac (ABK 9.25, -1.47) news continues to dominate the wires. Moody's expects to confirm Ambac's rating after the bond insurer raises capital and implements its plan to strengthen its credit profile.

The Fed recently released its Beige Book. It said that economic growth has slowed since the beginning of the year, with two-thirds of districts citing softening or weakening in the pace of business activity. The Beige Book is anecdotal economic information and is published before FOMC policy meetings.DJ30 -15.22 NASDAQ +6.86 SP500 +0.88 NASDAQ Dec/Adv/Vol 1382/1440/1.63 bln NYSE Dec/Adv/Vol 1414/1667/1.08 bln

[0007]

94. Would Candy Crowley work?

[UpInArms]

95. my eyes! my eyes!

[ozymandius]

97. I'm blind. Thanks. I'm blind.

[Hugin]

99. Did I miss anything?

Uh, other than almost $1000.00 GOLD! :wow: