STOCK MARKET WATCH, Wednesday 25 August

[ozymandius]

Wednesday August 25, 2004

COUNTING THE DAYS
DAYS REMAINING IN THE * REGIME 148
DAYS UNTIL W* GETS HIS PINK SLIP 69
DAYS SINCE DEMOCRACY DIED (12/12/00) 3 YEARS, 257 DAYS
WHERE'S OSAMA BIN-LADEN? 2 YEARS, 311 DAYS
WHERE ARE SADDAM'S WMD? - DAY 524
DAYS SINCE ENRON COLLAPSE = 1007
Number of Enron Execs in handcuffs = 19
Recent Acquisitions: Ken Lay
ENRON EXECS CONVICTED = 2
Other Arrests of Execs = 54

---

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

---

AT THE CLOSING BELL ON August 24, 2004

Dow... 10,098.63 +25.58 (+0.25%)
Nasdaq... 1,836.89 -1.81 (-0.10%)
S&P 500... 1,096.19 +0.51 (+0.05%)
10-Yr Bond... 4.28% +0.00 (+0.09%)
Gold future... 405.00 -7.40 (-1.83%)





GOLD, EURO, YEN and Dollars

---

PIEHOLE ALERT

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

For information on protests and other actions Citizens For Legitimate Government

---

[ozymandius]

1. WrapUp: "LIES, DAMN LIES, AND THE LYING FOOLS WHO TELL THEM!"

WrapUp by Ike Iossif

I would like to comment on some of the reasons that are being offered by many salivating bulls on Bubblevision and elsewhere, about the positive technical characteristics of the market.

1. Once again we are told that the A/D line just made new highs, and that is very bullish for the market. My very good friend and outstanding technician, Mr. Larry Katz, has pointed out that this year the A/D line made new highs right before the market topped out, not once, but twice! The same held true throughout 2001 and 2002. (For more on this visit: http://marketviews.tv/freeservices/archives1/Guests/Katz/pg1.htm)

Thus, there may be plenty other legitimate reasons to be bullish about, but the above is not one of them. Whoever is telling you otherwise is lying to you.

-lotsa charts-

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

[ozymandius]

2. Two Great Depressions - One Lifetime - by Robert B. Gordon, Sc. D.

Assuming that the first Great Depression started at the 1931 bear market bottom, it has been over 70 years to the start of the next one to strike the developed world. This does not count Japan whose private depression is now in its 15th year. Forecast in 1995 to have started by now, unexpected actions by Mr. Greenspan to greatly heighten and prolong the 1990s stock bubble have delayed its entrance. Not only was it delayed, but almost wiped from the conscience of our national leaders and their economic advisors. Supposedly, according to our leading economists, we have been moving out of a shallow recession into a bright economic future. Nothing can be further from the true state of affairs according to expert followers of the Elliott Wave Theory.

-cut-

A LETTER FROM A YOUNG PROFESSIONAL (excerpt)

Let me tell you the truth about this. We do not need any more medical advances/drugs. We, as an American economy, CANNOT pay the exorbitant sum to fund projects that we objectively cannot afford anymore. We cannot afford $20,000-a-month novel cancer treatments. We cannot afford to extend people’s lives past a 100 because Medicare and Social Security cannot afford it to subsidize it. The very tight NIGH and NSF funding on all levels of math and science amply reflect this, perhaps rightfully so.

-cut-

Outsourcing of professional jobs to other nations like India is looming as a major problem for our colleges and students. Of course, our general economy is expected to get much worse in both breadth and depth as the great depression forecast by the Elliott Wave theory slowly develops. This dire view is of course held by only a tiny minority of our people and by essentially no one in our senior economist group who are totally ignorant of Ralph Elliott’s great pioneering work in the 1930s.

-cut-

For some reason known only to our leaders in Economics, there has been a complete failure of any recognition by their complete community of Ralph Elliott’s brilliant discovery of natural laws that govern the detailed action of stock market waves. A retired accountant, he viewed countless stock market charts and discovered that they were hierarchical in nature (identical at all time levels from minutes to centuries) and followed a group of natural laws. His great book, The Elliott Wave Principle published during Depression 1, would have received a Nobel prize if written by a mathematician or economist. Instead it has survived only thru the work of a small group of devoted followers who have extended and proven his work. Since Elliott’s work, followers have extended Elliott Waves back to London in 1720 at the time of the South Sea Bubble and have proven a solid connection between Elliott Wave formations, market panics and subsequent major economic depressions. In fact by 1995, Robert Prechter was able to predict the end of a large Elliott Wave sequence and the beginning of Depression 2. It is difficult to believe, but apparently not one of the copies of his At the Crest of the Tidal Wave was seen or read by an American economist, of whom there are many thousands.

http://www.financialsense.com/editorials/gordon/2004/0824.html

[54anickel]

58. Hmmmm, perhaps I should rethink that degree and start plowing the

"back 40" right NOW!!! Sorry it took me until this late in the day to read this one Ozy. This article certainly does seem to tie into much of today's posts.

[ozymandius]

3. Good morning Marketeers.

:donut: :donut: :donut: :donut: :donut: :donut:

It is time for me to dash out the door. As my Monday deadline to clean out my woodshop looms, there remains a substantial amount of work to do.

About this market:

I do not sense a great amount of confidence in the markets. The reports I hear on the radio and read on the wires express extreme volatility: high volumes of trading and resistance to push values any higher. It seems that the markets are taking a "two steps forward and three steps back" approach. Tech stocks suck. I pity anyone who casts all their faith on Dell computer to be the hero of the day.

The cost of living is rising. The markets suffer from low consumer confidence. And the Greenspan grasps at reasons to fault anyone and anything to deflect culpability away from his monetary policy.

"Prosperity is just around the corner," - so says Bush. As said Hoover.

So I return to my original premise. There's not much enthusiasm in the markets these days. Here's a rhetorical hypthetical: How many stock traders know someone who is unemployed, I wonder? How many stock traders are looking for a job?

On a personal note: 54anickel - I am sorry that Bush's policies have screwed you out of completing your degree with due diligence. To me, this sounds like you are the object of descrimination as you are not in his targeted voting demographic. You mentioned that you can cover your costs. Good for you! My friend, I wish that I could provide you more than moral support.

Remember: 69 days until Bush* gets his pink slip.

[54anickel]

4. Thanks Ozy! I didn't mean to hi-jack the thread with my ranting and

whining, but it is a simple, up close and personal example of another one of Shrub's lies. It certainly won't shatter the world, but it makes me wonder how many others have run into this issue.

Then again, if we are headed into another depression, a higher education isn't going to matter much. Perhaps I should be spending my time and money equipping myself and the "back 40" to raise foodstuff.

[54anickel]

5. On the topic of "untruths", here's one from HHS

http://www.cbpp.org/8-23-04tanf-pr.htm

The U.S. Department of Health and Human Services announced today that caseloads in the Temporary Assistance for Needy Families (TANF) program fell in 2003. In the press release announcing the decline, Secretary Tommy Thompson said that "American families are improving their lives by leaving public assistance and entering the workforce." Last year, shortly after the Census Bureau released data showing a marked rise in child poverty in the United States in 2002, HHS issued a similar press released that trumpeted TANF caseload declines in 2002 and called them “encouraging.”

Just as last year’s release failed to note that child poverty increased in 2002, this year’s release fails to note that the proportion of single mothers who are employed fell in 2003 and the unemployment rate rose markedly among single mothers.

* The employment rate among single mothers fell from 71.5 percent in 2002 to 69.8 percent in 2003 — a larger decline than among other parents or the population overall.
* The unemployment rate among single mothers rose from 9.5 percent to 10.2 percent.
* Although poverty data for 2003 will not be released until Thursday, both conservative and liberal analysts agree that the data likely will show that that the number of children in poverty rose again in 2003.

snip>

“Contrary to Secretary Thompson’s statement, the decline in TANF caseloads does not appear to mean that more families are leaving welfare for work. The decline in employment rates among single mothers suggests that more families may have fallen deeper into poverty in 2003 because they neither had a job nor received cash assistance,” said Sharon Parrott, the Center’s director of welfare reform policy.

While cash assistance caseloads have not increased, caseloads in other low-income programs — including food stamps and Medicaid — have grown as would be expected during a period of labor market weakness and increased poverty. HHS should examine why TANF cash assistance programs do not appear to be responding to increases in joblessness and poverty.

snip>

Texas is another state that saw significant caseload declines between 2002 and 2003. A large portion of the decline in the caseload in Texas appears to be driven by a policy change implemented during this period which terminated assistance to the entire family when an adult did not meet certain program expectations. Prior to this policy change, if a parent did not comply with a program requirement, the family lost a portion of its grant......

more...

[UpInArms]

6. daily dollar watch

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

Last trade 89.34 Change -0.12 (-0.13%)

http://futures.fxstreet.com/Futures/news/afx/singleNew.asp?menu=economicnews&pv_noticia=MTFH06442_2004-08-25_11-48-25_L25240677

FOREX-Dollar hushed ahead of US durables, yen weakened

LONDON, Aug 25 (Reuters) - The dollar steadied just below fresh 2-1/2 week highs against the euro on Wednesday as investors awaited U.S. data to help them decide whether a recent recovery in expectations for U.S. rate hikes will continue.

July U.S. durable goods data at 1230 GMT, expected to show a 1 percent rise after June's 0.9 percent increase, will be a key test of upbeat dollar sentiment after Federal Reserve officials said this week the U.S. recovery appeared to be self-sustaining.

Dollar sentiment has also been cheered by the fact that U.S. oil prices have kept their distance from record highs hit on Friday, even though they rose modestly on Wednesday.

"It seems like the market has been waiting for a bounce in durable goods for a long time now," said Steven Pearson, chief currency strategist at Halifax Bank of Scotland Treasury Services in London.

"If it doesn't get it that could provoke some dollar selling, particularly as we really do need to see data back up the Fed's view that the soft spot was not only transitory but is now over."

...more...

http://cbs.marketwatch.com/news/story.asp?guid=%7BF115A713%2D0EE1%2D4F6D%2D9204%2D5135B8C0344F%7D&siteid=mktw

July durable orders rise 1.7% on aircraft
Up 0.1%, excluding transportation; first gain since March

WASHINGTON (CBS.MW) -- Orders for new U.S. civilian aircraft doubled in July, boosting orders for all durable goods by 1.7 percent, the Commerce Department said Wednesday.

Excluding the 5.6 percent gain in transportation goods, orders to U.S. factories for durables rose 0.1 percent in July after falling 0.6 percent in June. It marked the first monthly increase since March.

Orders for core capital goods increased by 0.6 percent in July after gaining 1.4 percent in June.

Economists had predicted, on average, that total orders would rise 1.2 percent in July, according to a survey conducted by CBS MarketWatch. See Economic Calendar.

In addition, June's increase in total orders was revised higher, to a 1.1 percent rate from 0.9 percent previously.

Orders are up 12.4 percent in the year to date. Read the full release.

The report indicates patches of strength and weakness in the factory sector, since total orders increased smartly in each of the past two months primarily because of the leadership of one sector: Aircraft in July and defense goods in June.

<snip>

Within the 5.6 percent jump in orders for transportation goods, orders for motor vehicles fell 5.3 percent, orders for civilian aircraft soared 100.4 percent, and orders for defense aircraft fell 38.4 percent. July's shipments of transportation goods dropped 3.9 percent.

Orders for computers and other electronics dropped 3.8 percent. Orders for computers sank 6.7 percent. Shipments of electronics increased 1.7 percent.

...more...

Have a Great Day Marketeers!

[54anickel]

21. Hmmm, Forex gang questioning the Fed BS?

If it doesn't get it that could provoke some dollar selling, particularly as we really do need to see data back up the Fed's view that the soft spot was not only transitory but is now over."

Getting rather demanding aren't they. Not only transitory, but they want it over with, done, finito, right now. What foolishness. :eyes:

[54anickel]

29. Hey, where's the dollar goin' today anyway? The chart for today is

all over the place! Big move down, then right back up followed by slowly drifting downward like a feather. They didn't like that durable goods report, or isn't that the one they were waiting for? I'm confused, this cbs article says durable orders. The Forex speaks of durable goods due out at 12:30. Different reports I take it?

[UpInArms]

7. Greenspan says housing data clouded

http://cbs.marketwatch.com/news/story.asp?siteid=mktw&dist=mktw&guid=%7B35000E83%2DF185%2D4C5C%2DBA9A%2DC83E7F8FBA67%7D

WASHINGTON (CBS.MW) -- Federal Reserve Chairman Alan Greenspan said the available data on home prices are inadequate to determine if there is a potential bubble in housing prices.

"Taking a firm stand on the appropriateness of real estate prices is not possible," due to data limitations, Greenspan said in written answers Tuesday to questions submitted by Senate Banking Chairman Richard Shelby, R.-Ala., in conjunction with Greenspan's report to Congress on monetary policy July 20.

A Fed report to Congress on economic developments in the last six months noted that house price increases have outstripped income as well as rents in recent years.

"This observation raises the possibility that real estate prices, at least in some markets, could be out of alignment with fundamentals, but that conclusion ... cannot be reached with any confidence," Greenspan said.

He said the rise in house prices has been influenced by the low level of mortgage interest rates "in ways that can't be gauged precisely."

"Moreover, the available data are not fully adequate for a complete analysis of the issue; house prices are difficult to measure given the enormous heterogeneity of the U.S. housing stock -- both within and across geographic regions -- and available measures of residential trends do not match precisely with the units for which we have prices," he said.

...more...

[54anickel]

31. Pretty much in line with his testimony regarding bubbles isn't it? Nope,

can't see 'em coming for sure. Might be a real turd, might just be a little fart. Best to take the wait and see approach and deal with the aftermath.

[KoKo]

37. "Luxury Home Builder" Toll Brothers Profits Soars 56 Percent.

(More examples of Bush "Tax Cuts for the Rich." Average price for the 8,000 homes it will build? More than $600,000! I guess they are predicting a Bush win with more dollars in the pig trough for 8,000 lucky new Millionaires.

Perhaps with a Kerry win some of the Billionaires will find these homes suitable when they have to downsize to Millionaire status.:eyes:)


Associated Press
Toll Brothers' Profit Soars 56 Percent
Wednesday August 25, 10:48 am ET

Toll Brothers' Profit for Latest Quarter Soars 56 Percent on Strong Demand for New Luxury Homes
HUNTINGDON VALLEY, Pa. (AP) -- Toll Brothers Inc. Wednesday said profit for its latest quarter surged 56 percent as demand for new luxury homes remained strong.

The Huntingdon Valley-based home builder Wednesday reported net income of $106 million, or $1.31 a share, for the third quarter ended July 31, compared with $68.2 million, or 90 cents a share, a year earlier.

snip....

Based on current backlog -- which gives the company an idea how much revenue will be generated over the next nine to 12 months -- and the pace of current demand, Toll Brothers projects it will deliver between 7,700 and 8,000 homes during the current fiscal year with an average price of more than $600,000.

As a result, the company expects net income to grow at least 30 percent in the fiscal year. Based on projections of community growth in the coming year, and assuming strong demand continues, the company projects 20 percent growth in revenue and net income for next fiscal year.

Toll Brothers' upbeat forecast for the luxury market contrasted with a report released Wednesday by the Commerce Department, which showed that sales of new homes declined by a sharp 6.4 percent in July from the previous month. The decline was steeper than analysts were expecting and left home sales at their lowest level since December.

Shares of Toll Brothers traded Wednesday morning at $43.20, down 26 cents, or 0.6 percent, on the New York Stock Exchange.

http://biz.yahoo.com/ap/040825/earns_toll_brothers_5.html

[UpInArms]

8. Aetna Confirms Layoff Plans

http://www.ctnow.com/business/hc-aetna0825.artaug25,1,645050.story?coll=hc-headlines-business

Aetna confirmed Tuesday that it plans to eliminate 78 jobs next year - including 35 in Middletown - among customer service representatives who handle calls for pre-approval of medical services.

Employees were notified this week about the layoffs, which will include 26 jobs in Chicago and 17 in Richfield, Ohio.

Aetna officials have said the company's massive layoffs are over, but smaller actions are possible as business units continue to seek ways to trim costs. The company's overhead, as a percentage of revenues, is still higher than at many of its peers, though profits continue to rise.

"We announced a consolidation of pre-certification functions to streamline operations and deliver greater consistency and enhance the service we provide to members and providers," Aetna spokesman Fred Laberge said.

...more...

http://austin.bizjournals.com/austin/stories/2004/08/23/daily18.html?jst=b_ln_hl

(Austin Texas) Area foreclosure postings on the rise

Foreclosure postings in the Austin area are up 22 percent over the same time a year ago.


According to Addison- based Foreclosure Listing Service Inc., postings for the September foreclosure auction within Travis County reached 400, compared with 328 from September 2003.

The postings are also up 14 percent from the August 2004 postings. Foreclosure postings include residential and commercial properties.

The September total represents the second-highest level of monthly postings. The highest occurred in April 2004 when 408 postings were filed.

Longer-term activity shows a 117 percent rise for Travis County compared with September 2002 postings.

In Williamson County, foreclosure postings totaled 225, compared with 200 last September, a 13 percent jump. However, the postings were down 4 percent from August 2004.

Williamson County postings are up 106 percent from September 2002.

...more...

[UpInArms]

9. Hedge funds don't need more regulation-Greenspan

http://www.reuters.com/financeNewsArticle.jhtml?type=bondsNews&storyID=6060175

WASHINGTON, Aug 24 (Reuters) - U.S. hedge funds do not need more regulation or monitoring, Federal Reserve Chairman Alan Greenspan said in written responses released on Tuesday to questions from lawmakers.

"There is no evidence that investors in hedge funds today are any less sophisticated than they were in 1999," Greenspan wrote in answer to a question from Senate bank panel Chairman Richard Shelby about whether the Fed chief had rethought a 1999 President's Working Group decision not to force hedge fund managers to register as investment advisers.

"Indeed, institutional investors have accounted for a growing share of hedge fund investments, and they can and should protect their own interests rather than rely on the limited regulatory protections that would be provided as a result of a registration requirement," he added.

Greenspan's views differ in part with those of U.S. Securities and Exchange Commission Chairman William Donaldson, who has sought to require hedge funds to register with the agency for the first time.

The SEC voted in July to formally propose a registration rule, which would require them to provide information about themselves and open their books to spot SEC inspections. A final decision could come this autumn.

Despite opposition by the hedge fund industry, Donaldson sought the closer scrutiny because of a growing case load of hedge fund fraud. There are an estimated 6,000 to 8,000 hedge funds with assets of $850 billion to $1 trillion.

...more...

[54anickel]

13. Ha-ha, poor Greenspin has bastardized the role of the central bank

so much in his 17 years that he has gotten himself some strange bed-fellows. He has allowed the "well to do" to have an ever increasing role in providing "much needed liquidity" into our monetary system thru these hedgefunds that he cannot afford to have them under the SEC. They must continue to be able to move quick and "nimbly", especially now that they are obviously taking a much greater role in financing that HUGE deficit (as pointed out in an article earlier this week).
Monetary policy appears to have been demonized and there will be hell to pay. :evilgrin: :scared:

[UpInArms]

15. did you notice where this decision was made?

a 1999 President's Working Group

hmmm..... isn't that the official name for the PPT?

[54anickel]

18. Why yes it IS! And do you happen to know the year in which that

little click was established? Wasn't that about 16 years ago?

[UpInArms]

23. here's the text from the original Executive Order #12631

http://www.archives.gov/federal_register/codification/executive_order/12631.html

Executive Order 12631--Working Group on Financial Markets

Source: The provisions of Executive Order 12631 of Mar. 18, 1988, appear at 53 FR 9421, 3 CFR, 1988 Comp., p. 559, unless otherwise noted.

By virtue of the authority vested in me as President by the Constitution and laws of the United States of America, and in order to establish a Working Group on Financial Markets, it is hereby ordered as follows:

Section 1. Establishment. (a) There is hereby established a Working Group on Financial Markets (Working Group). The Working Group shall be composed of:
(1) the Secretary of the Treasury, or his designee;
(2) the Chairman of the Board of Governors of the Federal Reserve System, or his designee;
(3) the Chairman of the Securities and Exchange Commission, or his designee; and
(4) the Chairman of the Commodity Futures Trading Commission, or her designee.
(b) The Secretary of the Treasury, or his designee, shall be the Chairman of the Working Group.

Sec. 2. Purposes and Functions. (a) Recognizing the goals of enhancing the integrity, efficiency, orderliness, and competitiveness of our Nation's financial markets and maintaining investor confidence, the Working Group shall identify and consider:
(1) the major issues raised by the numerous studies on the events in the financial markets surrounding October 19, 1987, and any of those recommendations that have the potential to achieve the goals noted above; and
(2) the actions, including governmental actions under existing laws and regulations (such as policy coordination and contingency planning), that are appropriate to carry out these recommendations.
(b) The Working Group shall consult, as appropriate, with representatives of the various exchanges, clearinghouses, self-regulatory bodies, and with major market participants to determine private sector solutions wherever possible.

(c) The Working Group shall report to the President initially within 60 days (and periodically thereafter) on its progress and, if appropriate, its views on any recommended legislative changes.

Sec. 3. Administration. (a) The heads of Executive departments, agencies, and independent instrumentalities shall, to the extent permitted by law, provide the Working Group such information as it may require for the purpose of carrying out this Order.
(b) Members of the Working Group shall serve without additional compensation for their work on the Working Group.
(c) To the extent permitted by law and subject to the availability of funds therefore, the Department of the Treasury shall provide the Working Group with such administrative and support services as may be necessary for the performance of its functions.

[54anickel]

30. So in layman's terms what they basically decided was

This natural ebb and flow of the business cycles is a real drag. While we truly love the flow, the necessary cleansing effect of the ebb in the business cycle is having a detrimental effect on the needs of greed. So let's create this super secretive group of folks in the know to beat nature at this game. It will be flow all the time and we can all party down forever!!!

Guess they didn't believe in the old saying, if ya wanna dance ya gotta pay the fiddler. Do you suppose the happy, happy, joy, joy bubbles of recent were actually a Tsunami?

[UpInArms]

10. UK news: End of 'cheap energy era' as gas prices increase 12%

http://news.independent.co.uk/business/news/story.jsp?story=554844

Householders are facing the prospect of a sharp rise in gas bills after British Gas announced yesterday it was raising its charges by more than 12 per cent next month.

The company blamed a 28 per cent surge in wholesale gas prices during the past year because of the worldwide rise in energy costs, and declared the era of cheap energy prices over.

From 20 September, residential prices will rise by 12.4 per cent for gas and 9.4 per cent for its electricity customers. British Gas said that would add 13p a day on gas bills and 7p a day on electricity for the average customer - equivalent to £47.45 and £25.55 a year respectively. The rises will hit the company's 18.4 million domestic customers - 12.2 million with gas and 6.2 million with electricity.

The increases are the latest impact of rising energy costs on households following successive leaps in petrol prices during the past few months.

Mark Clare, the managing director of British Gas, said wholesale gas prices had hit record levels, with the forward prices gas next year up by 50 per cent on 2003. "The UK energy industry has never faced such high wholesale gas prices," he said. "We have absorbed as much of these additional costs as we could, but unfortunately we now have to pass a proportion of them on to our customers."

He blamed the depletion of reserves in the North and Irish seas, which had forced the UK to import larger volumes of gas. "The era of cheap energy is over but we have confidence that the investments we are making in future energy supplies will, in the long term, put downward pressure on commodity costs," Mr Clare said.

<snip>

British Gas's increases appear to be higher than those of its rivals. PowerGen prices rise 3.1 per cent, or £10 a year, next month. Customers in the Scottish- Hydro, Southern and Swalec regions owned by Scottish Power can expect gas bills to increase by an average 4.6 per cent, or £15 a year.

...more...

[UpInArms]

11. Citigroup nabs big Texas bank

http://money.cnn.com/2004/08/24/news/fortune500/citigroup_first.reut/

NEW YORK (Reuters) - Citigroup Inc., the world's largest financial services company, said Tuesday it will acquire First American Bank in the quickly growing Texas market.

Citigroup (C: up $0.10 to $45.92, Research, Estimates) will acquire $3.5 billion in assets, 102 new branches and 120,000 new customers, the New York-based company said in a statement.

Terms of the transaction were not disclosed, though Sandler O'Neill analyst Jeff Harte valued the deal at $750 million.

"While this is as a relatively small deal for Citigroup, we preliminarily view the transaction positively," Harte said in a note to clients. "Citigroup now has a respectable presence in Texas upon which it can focus on gaining market share."

Expecting to close the purchase in the first quarter of 2005, Citigroup said the purchase should immediately add to earnings.

Following the acquisition, First American branch locations will be converted to Citibank Financial Centers. First American is a unit of the Adam Corporation/Group.

...more...

Would that "Adam Corporation" be Don Adam? He was a GHWB crony that got to buy billions worth of S&Ls during the S&L crisis for 10 cents on the dollar - will have to research that one.

[UpInArms]

14. more info on "The Adam Corporation" aka TAC

http://www.insurancejournal.com/services/newswire/2003/10/16/41501.htm

TAC is a privately owned holding company headquartered in Bryan, Texas. Since its inception in 1977, TAC has acquired and built companies in such diverse industries as cable television, general contracting, real estate development, banking and financial services. TAC's largest subsidiary is First American Bank, one of the largest independent banks in Texas with $3.3 billion in assets and 96 locations across the state.

also from this link:

"Reliable Reports is an outstanding addition to our portfolio of companies," said Donald A. Adam, chairman and CEO of TAC. "We believe the opportunity for growth is compelling. The property and casualty insurance industry lacks a national inspections firm, and we believe Reliable is well positioned to eventually fill that role."

Reliable, which has been in business for more than 30 years, provides inspection and data collection services to the property and casualty insurance industry, primarily for underwriting purposes. Headquartered in Lewisville, Texas, the company offers its services to insurance carriers and agents in 10 states – Texas, Oklahoma, Kansas, Missouri, Louisiana, Arkansas, Mississippi, Alabama, Georgia, and Tennessee. Reliable has 240 employees, including 65 at its headquarters in Lewisville and 175 throughout its four regional offices, which are located in Houston, Oklahoma City, Baton Rouge and Atlanta.

http://www.aggieathletics.com/feature.php?type=2&Feature=70

excerpt:

I received an invitation to have dinner with former President George Bush, the 41st President of the United States, and several Aggie coaches prior to a leadership conference that President Bush chaired at the Bush Library.

George and Barbara Bush have a beautiful apartment inside the Bush School that they stay in when they make one of their frequent trips to Texas A&M. Dinner was outside on their second floor terrace during a beautiful spring night. There were four tables of nine and somehow I drew the lucky table of being at President Bush’s.

The Bush table consisted of Dom Capers, the head coach of the Houston Texans; Larry Dierker, the former Houston Astros’ pitcher and manager; Don Adam, the Chairman and CEO of First American Bank; Jo Evans, Aggie softball coach; Tim Cass, our men’s tennis coach; Erin Kleinecke, wife of Bobby Kleinecke, our women’s tennis coach; and Patty Berthot, one of our athletic trainers.

Mr. Bush entertained us the whole night with Presidential stories and antidotes that happened during his tenure, but he really preferred to talk about Aggie sports.

...more...

[UpInArms]

17. here's where Adam got the banks

http://www.amarillonet.com/stories/120100/bus_120100-24.shtml

excerpt:

First American Bank was formed in 1988 through the merger of 11 banks and thrifts from Pampa and Amarillo almost to Bryan under The Adam Corporation/ Group. Olney Savings was the largest of those institutions so that was the first name of the group and headquarters city, Seabourn said.

He explained that after the merger the new bank had desirable core consumer deposits with locations in smaller towns plus Amarillo, Abilene and San Angelo. The new group was subsequently called Amwest then First American Bank- Texas. It was merged by its owner Don Adam with First American Bank-Bryan in 2000.

Riggs explained Adam aimed to create a great Texas holding company for central and west Texas.

In addition to banking operations in the secondary markets a successful loan production company in Dallas led to entry into that market.

[54anickel]

19. "A relatively small deal for Citigroup"

Has the ring of "a favor" to it, doesn't it? A reciprocal back scratch perhaps?

[UpInArms]

12. pre-opening blather

briefing.com

9:17AM: S&P futures vs fair value: +1.7. Nasdaq futures vs fair value: flat. Looks like a flat to somewhat higher open as the futures market drifts lower, approaching fair value levels... There will be one more economic report of the day at 10 ET with July New Home Sales... As a point of reference, yesterday's Existing Home Sales missed the consensus estimate.

8:56AM: S&P futures vs fair value: +2.2. Nasdaq futures vs fair value: +1.5. Futures indications pullback some, but continue to signal a better start for the indices... The solid July Durable Orders report and the gains seen in Asia continue to augur well for a higher open.

8:31AM: S&P futures vs fair value: +3.0. Nasdaq futures vs fair value: +2.0. Futures trade little changed following the better than expected July Durable Orders report... The prior reading was also revised upwards, supporting claims of a strengthening business environment... As a result, the cash market is still set for a higher open.

8:00AM: S&P futures vs fair value: +3.0. Nasdaq futures vs fair value: +3.0. Shaping up for a slightly higher open for the cash market on the heels of gains in Europe (Germany's DAX +0.5%) and Asia (Tokyo's Nikkei +1.3%)... The 3-days of losses in the price of crude oil have also contributed to the positive tone in the pre-market.

ino.com

The September NASDAQ 100 was slightly higher overnight as it extends this month's corrective rebound. Stochastics and the RSI are bullish but becoming overbought hinting that a short-term might be near. If September extends this week's rebound, a test of the 38% retracement level of the July-August decline crossing at 1388.75 is possible later this month. The September NASDAQ 100 was up 0.50 pt. at 1374 as of 6:36 AM ET. Overnight action sets the stage for a steady to firmer opening by the NASDAQ composite index later this morning.

The September S&P 500 index was higher overnight as it extends last week's rally and breakout above the 38% retracement level of the June- August decline crossing at 1093. If this resistance level is cleared, the 50% retracement level of the June-August decline crossing at 1103.05 is the next upside target. Stochastics and the RSI are bullish but becoming overbought hinting that a short-term top might be in or is near. The September S&P 500 Index was up 1.80 pts. at 1099.20 as of 6:37 AM ET. Overnight action sets the stage for a steady to firmer opening when the day session begins later this morning.

[54anickel]

16. "Bullish, but becoming overbought". Seems to be the mantra each

time they approach upper resistance levels these days. And that upper resistance continues to become a lower number with each passing month or so. Yep, sounds like a bull market to me alright, NOT! Sideways to lower is the only dance step this market has in it repertoire.

[UpInArms]

20. Toll Brothers profit jumps 56 percent

Luxury home builder says 2005 profit will beat estimates

http://msnbc.msn.com/id/5817063/

NEW YORK - Toll Brothers Inc., a U.S. builder of luxury homes, said on Wednesday third- quarter profit rose 56 percent, easily beating analysts’ forecasts, helped by record home- building revenue.

The Huntingdon Valley, Pennsylvania-based company also said it expects fiscal 2005 profit to exceed analysts’ forecasts, helped by a record backlog of new home orders.

Toll said net income for the quarter which ended July 31 rose to $106.02 million, or $1.31 per share, from $68.16 million, or 90 cents per share, a year earlier.

It said revenue rose 46 percent to $1.01 billion, including $991.3 million from the construction of 1,684 homes. New contracts rose 69 percent to $1.6 billion, representing 2,329 homes.

The company also said it ended the quarter with a record backlog of $4.3 billion, representing 6,856 homes.

Based on that backlog and current demand, Toll said it expects to build 7,700 to 8,000 homes in fiscal 2005, with an average price exceeding $600,000.

...more...

[UpInArms]

22. Bank of America Exec to Get ($20.7 million) Severance Pay

http://www.forbes.com/technology/ebusiness/feeds/ap/2004/08/25/ap1518168.html

excerpt:

Bradford H. Warner, Bank of America's president of premier and small- business banking, decided to leave the company as of Sept. 30. His departure was one of a number of management changes the bank announced Tuesday afternoon.

In a filing with the Securities and Exchange Commission after markets closed Tuesday, Bank of America said Warner is eligible to receive a lump-sum amount of nearly $8 million in severance benefits stemming from the 1999 merger of BankBoston Corp. and Fleet Financial Group Inc. The resulting company, FleetBoston Financial Corp., was acquired by Charlotte, N.C.-based Bank of America this spring.

Under his 1999 employment agreement with FleetBoston, Warner also is entitled to receive about $4.45 million, representing three years' worth of payments that would be made under various retirement plans. He also is entitled to three years of continued welfare benefit coverage, according to Tuesday's SEC filing.

In addition, Warner is expected to receive a total of about $8.28 million as a result of an employment agreement he entered into when the Bank of America-FleetBoston merger closed in April, the filing said. The agreement entitles him to $1.88 million as a prorated annual bonus for his services through Sept. 30, and $6.4 million, which is double the sum of his annual salary and his largest bonus in the past three years.

Bank of America also is required to make an additional payment to Warner if he has to pay a federal tax on any of the benefits he receives upon leaving the company. The filing didn't say if Bank of America expects to make such a payment, or how large the payment might be.

...a bit more...

[KoKo]

42. $20.700 Million Severance Pay? Oh Yeah....How many employees who

will be "layed off" would that support? :puke:

[54anickel]

49. Is that the splash of a rat abandoning ship? WTF, they'll pay his Fed tax

bill on the $$$ too?

[UpInArms]

24. 10:15 EST numbers and blather

Dow 10,076.22 -22.41 (-0.22%)
Nasdaq 1,833.04 -3.85 (-0.21%)
S&P 500 1,093.62 -2.57 (-0.23%)
10-Yr Bond 4.265% -0.018

10:00 ET Equities continue to trade just below the unchanged mark as conviction on the part of buyers is waning... Advancers do claim a slight lead over decliners at the NYSE and Nasdaq, but at this point, the lead is fading... Industry participation is split across the board, with semiconductor, airline, telecom service, and retail trading lower, and energy, brokerage, and drug heading higher... Retail itself has been hit by several negative calls in the apparel group, such as Merrill Lynch's downgrade of Gap (GPS 19.24 -0.69) to Neutral from Buy... Separately, July New Home Sales was just released and came in at 1.13 mln (consensus of 1.30 mln)... However, the report has had no discernible impact on trading... ..SOX -0.7%. ..NYSE Adv/Dec 1239/1234. ..NASDAQ Adv/Dec 1001/1207.

09:45 ET A quiet open for the stock market with the indices barely budging from the unchanged mark... The morning's news items have been fairly mixed, with economic data strong (July Durable Orders came in ahead of the consensus estimate, rising 1.7%, and June was revised higher to 1.1%) and world news fairly troubling... Two Russian plans crashed almost simultaneously, bringing to mind terrorist action, although no evidence of terrorist activity has been found... Crude oil is also up slightly, by $0.20 to $45.41/bbl, on such reports and also concerns that the weekly inventory report (doe out at 10:30 ET) may show a decline in US gasoline and oil supplies... Another piece of data - July New Home Sales - will also be released at 10 ET and the market expects 1.30 mln for a reading... ..NYSE Adv/Dec /. ..NASDAQ Adv/Dec /.

(edited for html)

[54anickel]

25. Inflation beast is loose again

http://www.prudentbear.com/archive_comm_article.asp?category=Guest+Commentary&content_idx=35396

snip such a appropriate paragraph for today's discussion>

The big question is the stock market. Unfortunately, we have a precedent to use a guide. Approximately 30 years ago, inflation began being reflected in the US economy. The grain markets exploded in price. This occurred in 1972 and 1973. This was just the beginning of that inflationary wave. The combination of the Vietnam War and the massive social spending of the Great Society had created a massive inflationary wave that culminated on January 21, 1980. The economy contracted massively after that. Who remembers that President Ronald Reagan appointed Alan Greenspan as Chairman of the Federal Reserve Board? Who remembers that Reagan claimed that Greenspan was an inflation fighter? The truth is that Alan Greenspan did everything in his power to reflate the US economy, and he destroyed the value of the US dollar in his quest for reinflation. The stock market was a bad investment from the mid sixties until the early eighties. It was only when the value of the US dollar started down that the stock found it’s wings. Real estate and natural resources were terrible investments throughout the 1980’s. The falling dollar drove the stock market through the early 1990’s. The dollar stabilized in the early 1990’s and began recovering. The dollar recovered until 2002. Since then, Greenspan and the Congress have again dropped the value of the US dollar by approximately 28 percent.

We now begin a new era in economics. Cheap energy is over. We have a hyper inflated economy. Real estate has joined the tulip bulb craze in historic terms. All asset groups have risen in the last two years, which is a consequence of the Federal Reserve’s decision to break all historical norms in money creation. This is unique in modern financial history We must be prepared to throw out our comfortable assumptions, and deal with the reality in front of us. One-liners are useless to us now. We have an overheated economy at the beginning of this cycle. There is so much liquidity floating the world that the beast is fueling itself. It will collapse, but not in way we are expecting! We do know that the stock market hates uncertainty, and this economy is getting very uncertain. We need to understand that this is global in scope at this time. www.gloomboomdoom.com>">www.gloomboomdoom.com/">Marc Faber is a necessary read to complete the picture. Historically, financial assets tend to under perform during periods of real asset inflation. John ">chinese-school.netfirms.com/Sir-John-Templeton-interview.html">Templeton has forecasted a negative environment for the next decade. The greatest threat to the US is the impairment of its credit mechanisms. If inflation gets too high, the entire credit business will collapse. Greenspan will not let this occur, for it would be the end of the giant consumer bubble.

How long do you think the US economy would last with a collapse of its consumer credit mechanisms? Scary thought, no? Remember, there has never been an economy in history that has based solely on credit. Neither earning power, nor asset wealth is driving this economy! No one has ever seen anything like this before.

[UpInArms]

26. new home sales report

10:00am 08/25/04

U.S. JULY NEW HOME SALES DOWN 6.4% TO 1.13 MLN UNITS

10:00am 08/25/04

U.S. JUNE NEW HOME SALES REVISED TO 1.21MLN VS 1.33 MLN

10:00am 08/25/04

U.S. JUNE NEW HOME SALES DOWN REVISED 5.6% VS 0.8% PREV

New home sales fall a second month
July sales fall 6.4%, June much weaker than first thought

http://cbs.marketwatch.com/news/story.asp?guid=%7B4EA3666D%2D01B0%2D4C72%2DB8BA%2DD09764C53A9B%7D&siteid=mktw

WASHINGTON (CBS.MW) - The housing market was not immune from the soft patch that the economy hit this summer, according to government figures released Wednesday.

Sales of new homes in the United States fell 6.4 percent in July to a seasonally adjusted annualized rate of 1.13 million, the Commerce Department estimated Wednesday.

There was also a large downward revision to June sales.

The department said sales fell a revised 5.6 percent in June to 1.21 million units, compared with the initial estimate of a 0.8 percent drop to 1.31 million units.

As a result, the level of new home sales in July is well below expectations. Economists surveyed by CBS MarketWatch were expecting a sales rate of about 1.29 million in July.

The number of new homes for sale on the market rose about 4.2 percent to 393,000, representing 4.2-months of sales at the July pace.

New-home sales fell sharply in the Northeast and South in July, but rose to record high levels in the Midwest. Sales in the West were down slightly.

...more...

[54anickel]

27. Crude Oil Rebounds as U.S. Inventories Expected to Decline

http://quote.bloomberg.com/apps/news?pid=10000100&sid=aKik20k2zMvw&refer=germany

Aug. 25 (Bloomberg) -- Crude oil futures rose for the first time in four days as traders expected a report will show U.S. inventories fell last week as refiners stepped up production.

Crude oil stockpiles probably declined by 250,000 barrels last week, from 293 million the week before, according to the median forecast in a Bloomberg survey of 14 analysts. Oil prices had slid 5.1 percent in New York during the past three days, as concern eased of disruptions to Iraqi and Russian exports.

``A two, three or four-day pullback in a market like this doesn't mean too much,'' said Bob Frye, a commodities broker at Access Futures & Options Trading, in Woodlake, California. ``It's definitely not the time to try shorting this market,'' Frye said, referring to a bet that prices will fall.

snip>

Today, unleaded gasoline for September delivery rose a second day, by as much as 0.72 cent to $1.2675 a gallon.

U.S. gasoline supplies probably shrank 2.25 million barrels last week from 205.7 million barrels the previous week, based on the Bloomberg survey. That would be the third straight decline.

Sunoco Inc., the largest refiner in the U.S. Northeast, will shut part of its refinery in Marcus Hook, Pennsylvania, for maintenance next month, Reuters reported, citing unidentified trade sources.

Other refiners, including San Antonio-based Valero Energy Corp., will also slow operations next month for annual maintenance. Valero, the third-biggest U.S. oil refiner, said Aug. 5 it will begin work in September on its refinery in Paulsboro, New Jersey.

[54anickel]

28. Oil Isn't Only Constraint on the Economy

http://www.thestreet.com/_tscs/comment/aaronpressman/10179883.html

Sometimes the truest picture of the economy can be assembled not from the top down but from the bottom up. While higher oil prices are getting a lot of the blame for the recent "soft patch" of growth and job creation, there are other choke points that also are responsible for the slowdown.

Take a look at some local newspaper headlines from around the country over the past few weeks:


"Cement shortage delays projects" -- St. Petersburg Times

"Shipping by rail still off track" -- The Dallas Morning News

"Trucker shortage hurts freight lines" -- The Denver Post
Although each paper is reporting on events within its circulation area, the trends uncovered are having a nationwide or, in some cases, worldwide impact. Even as oil prices fell Tuesday for the third straight day, prices of other commodities are still rising and the transportation infrastructure is constricting.

Take the cement shortage. It started in Florida but it has spread nationwide. The building boom in China is diverting supplies that used to come to the U.S., which imported 22% of its needs last year.

Largely as a result, 41% of homebuilders couldn't get enough cement last month, up from just 3% in March, according to a survey by the National Association of Homebuilders (NAHB). The survey also found 26% of builders experienced shortages of gypsum wallboard, up from 16% in March, and one-fifth needed more insulation, twice the level of March.

more...

[54anickel]

32. "A Primer on Government Economic Reports -- Things You've Probably

Suspected But Perhaps Were Afraid to Ask!"

http://www.gillespieresearch.com/cgi-bin/s/article/id=264

In 1996 -- the middle of the Clinton economic miracle -- the Kaiser Foundation conducted a survey of the American public that purported to show how out of touch the electorate was with economic reality. Most Americans thought inflation and unemployment were much higher, and economic growth was much weaker, than reported by the government. The Washington Post bemoaned the economic ignorance of the public. The same results would be found today.

Neither the Kaiser Foundation nor the Post understood that there was and still is good reason for the gap between common perceptions and government reporting: government data are biased in politically correct directions and increasingly have diverged from common experience and reality since the mid-1980s. Inflation and unemployment reports are understated, while employment and other economic data are overstated, deliberately.

For several years, I conducted surveys among business economists as to how they viewed the quality of government economic data. The following were actual comments:

· The senior economist of a major retail company told me, "Quality varies. The retail sales numbers are terrible, but money supply data are great."

· The senior economist at a major bank offered, "There's a problem with money supply, but I think retail sales are pretty good."

The point is that when an economist knows a sector well, he also recognizes the limitations and distortions of related economic reporting. Gathering and reporting accurate information on a timely (one-month) basis for components of the U.S. economy is nearly impossible. Nonetheless, most career government statisticians in Washington work diligently to provide the best information possible within the limits of the existing reporting system. A number of reporting distortions, however, are not accidental.

What follows is brief background on the reporting system and how the numbers can be viewed. Separate installments will address the specifics of employment, inflation, GDP and budget deficit reporting. Other areas will be addressed upon request.

more...

[54anickel]

33. Kuwait Minister: Oil Price Being Driven Up (by speculators)

Weird dialog box links providing definitions in this article. Something new at Forbes?

http://www.forbes.com/feeds/ap/2004/08/25/ap1517788.html

Kuwait's foreign minister said Wednesday that Middle East oil exporters are producing at maximum capacity to stabilize prices that are being driven up by speculators from outside the region.

Oil prices have soared for weeks as traders worried about the threat of sabotage against the Iraqi oil infrastructure and a possible decline in Russia's oil production.

A rash of buying by institutional investors also contributed to the price rise, fueling concern that crude oil would top US$50 per barrel. But the markets have cooled this week and oil prices dropped for a third straight day to $45 per barrel on Tuesday.

snip>

"The oil prices have been driven up by speculation. It's been driven by people who are outside the region," Sheik Mohammed said. "Still, they are high and the producers are not responsible for this."

more...

[54anickel]

34. Skilled Labor in High Demand

Employers Lament Declining Ranks of Capable Workers

I call bullshit on this article. Sure employers may be having a harded time finding people with the required education to hire. Do you think part of that problem is because they are starting at 8 bucks an hour? They want educated employees to work for non-educated wages! Education ain't cheap folks. They also want younger workers that will help keep down the costs of heathcare. I'll agree that our public schools could use some improvements, but employers seem to want folks to have all kinds of smarts AND work for less.

http://www.washingtonpost.com/wp-dyn/articles/A30139-2004Aug24.html

David L. Hurley is eager to hire new workers at his Florida surveying company and isn't asking for much: Only a dozen or so people with enough basic math to learn the software he uses to make blueprints, and enough basic sense to show up on time.

But after weeks of want ads and recruiting, he has drawn a conclusion: The workers aren't out there. While there are plenty of people who "can fog a mirror" and might be able to do grunt work on a survey crew for $8.50 an hour, Hurley said the economy has run short of people with the types of basic skills he could mold into a $20-per-hour survey crew chief.

"I would add 15 people tomorrow if I could find them," said Hurley, president of Landmark Engineering & Surveying Corp. of Tampa. "We need people with some knowledge of trigonometry and geometry. It's really just arithmetic. We're turning down work because we don't have the people."

To explain why wage and job growth has remained weak during a nearly three-year period of economic expansion, economists point to a complicated set of dynamics.

Developing countries like India have become increasingly competitive in global markets, offering well-trained workers at comparatively cut-rate prices. American workers have become steadily more productive -- a two-edged sword that makes each employee more valuable but which has largely boosted company profits instead of wages and hiring. The decline of organized labor and the stagnation of the federal minimum wage have helped suppress what workers are paid, say analysts like Harry Holzer, a Georgetown University professor and former chief Labor Department economist during the Clinton administration.

more...

[54anickel]

35. Pensions may need a taxpayer bailout

http://www.freep.com/money/business/pensions25e_20040825.htm

A $350-billion pension shortfall among U.S. companies may force the federal agency that insures retirement plans to seek a taxpayer bailout similar to the one during the savings and loan crisis, according to the Cato Institute, a Washington-based policy research group.

The Pension Benefit Guaranty Corp. had a record deficit of $11.2 billion last year after taking over plans for 152 companies such as Bethlehem Steel Corp. and US Airways Group Inc. Without changes to funding and premium rules, the PBGC's deficit is likely to swell to $18 billion in the next 10 years and may reach more than $50 billion, said Richard Ippolito, who wrote the Cato study and is a former PBGC chief economist.

"If exposures create claims that reach catastrophic levels, taxpayers will be called upon to provide a bailout," Ippolito said in the study released Tuesday.

Stock price declines and low interest rates have eroded the value of pension plans. Groups such as the Pension Rights Center, a Washington-based workers' advocacy group, have dismissed the likelihood of a bailout, saying the PBGC is well funded over the long term.

The collapse of savings and loans in the 1980s and early 1990s cost taxpayers about $124 billion and the thrift industry another $29 billion, according to the Federal Deposit Insurance Corp.

more...

[54anickel]

36. Pension crisis grows as businesses weigh defaulting on plans

http://seattletimes.nwsource.com/html/businesstechnology/2002014612_corppension25.html

NEW YORK — The corporate pension crisis seems to be going from bad to worse.
First, companies struggled to come up with the money to cover their benefit obligations, and now they want to ditch their plans altogether.

The latest twist in this mess comes from United Airlines. It wants to terminate its employee pension funds in order to secure the loans it needs to get out of bankruptcy — a drastic move that would represent the largest pension default ever by a U.S. company.

Should that happen, competing airlines may try to do the same, and it could easily extend to other industries, too. And who would be left with the cleanup? Taxpayers, of course.

"I'm deeply concerned that more and more employers may decide that the rational thing to do ... is to follow others to the exit and get out of sponsoring a pension plan before it becomes an impossible burden," said James Klein, president of the American Benefits Council, a Washington-based trade group representing the employee-benefits system.

A pension plan is considered underfunded when its obligations — what it owes to retirees — exceed its assets by at least 10 percent.

At that point, companies must cover the difference.

more...

[KoKo]

40. Sorry, Cato....No can do....we Americans have too much debt and we

are fighting a WAR here. We gotta keep buying those "luxury homes, and spending at Walmart and Pottery Barn. We can't possibly afford to bail out our pensions....What...you think that's important as bailing out the Savings and Loans years ago? Hey back then, we were flush with money in our savings accounts ..but now we are charging hard to support our GDP.

Maybe you could ask some of the Corporate CEO's to donate some of their Golden Parachute winnings to the cause. Pass the hat around, and a million here and a million there which is pocket change to these folks, might just get you some big bucks. And, it could be written off as a "charitable deduction," too!

ARGGGGHHHHHHHHHHHHHHHHHHHHHHHHHHHHHHHHH!!!!!!!! :nuke:

[loudsue]

52. If we had a REAL free press...

Don't you think it would be all over the news how, during every bush administration, the Fed. Gov't has to bail out industry to the tune of hundreds of BILLIONS of dollars??

Does anyone see a pattern emerging, or is it just me??

:kick::kick::kick::kick:

[54anickel]

53. Bwahahaha, Excellent point Loudsue!!! I'll admit I certainly overlooked

THAT pattern. Looks like a new term shall be coined in place of corporate bail-out it will now be "yet another Bush-out".

[54anickel]

38. US consumer shows signs of flagging

http://story.news.yahoo.com/news?tmpl=story&cid=1518&ncid=1518&e=8&u=/afp/20040824/bs_afp/us_economy_sales_040824181923

WASHINGTON (AFP) - Consumers, the heart of the American economy, are showing signs of flagging in a worrying development 10 weeks ahead of November 2 elections, analysts said.

snip>

US consumer spending, accounting for two-thirds of economic activity, fell 0.7 percent in June, government figures showed, the steepest monthly plunge since the September 11, 2001 terrorist attacks.

snip>

Many households were facing tighter finances, with weak employment growth, Anderson said. Indebtedness was at high levels because of the lure of low interest rates, and real disposable (after-tax) income growth was deteriorating, he said.

snip>

"You had the consumer boosted by a lot of kind of gimmick stimuli over the last two years: multiple tax cuts, cash taken out of their mortgages, zero percent loans for autos and other durables, and all of those gimmicks have given us a nice solid rate of consumption in the face of a droopy economic recovery," said Lehman Brothers' Harris.

more...

[54anickel]

39. 12:07 check out that vertical line right at the lunch hour

Dow 10,118.84 +20.21 (+0.20%)
Nasdaq 1,843.12 +6.23 (+0.34%)
S&P 500 1,098.45 +2.26 (+0.21%)
10-yr Bond 4.234% -0.049
30-yr Bond 5.034% -0.036
NYSE Volume 452,629,000
Nasdaq Volume 519,118,000

11:30AM: Stocks continue to run in place around the flat line - just as they have over the past 2 sessions... All of Wall Street is practically on vacation as evidenced by the paltry volume levels at the NYSE and Nasdaq... Getting a rally - or retreat for that matter - going is difficult when there is little momentum behind it... So far, technology has outperformed the broader market with semiconductor retracing all of its losses... Retail, industrial, material, and telecom, conversely, have been the largest losers, although their losses have been confined to no more than 0.6%...
In general, there is just very little interest in equities today, with most investors content to leave positions as is...NYSE Adv/Dec 1500/1520, Nasdaq Adv/Dec 1316/1429

11:00AM: The market improves its stance somewhat as the Nasdaq crosses into positive territory, the move brought about by some relief in the price of crude oil... The commodity initially spiked higher on the discouraging weekly oil inventory reports from the American Petroleum Institute and Energy Information Administration.... Both showed a decline in crude oil inventories which were worse than most analysts were expecting... The price of crude oil has since come down, but is still sporting slight gains for the day - at $45.24/bbl - due to the worries over the Russian airline crash... NYSE Adv/Dec 1462/1454, Nasdaq Adv/Dec 1325/1330

10:30AM: Indices continue to sport slight losses - ones that have been reinforced by the disappointing New Home Sales report... Like Existing Sales before it, July New Home Sales came in weaker than expected (1.13 mln versus the consensus of 1.30 mln) and June was revised sharply lower (to 1.21 mln from 1.33 mln)...and June was revised sharply lower (to 1.21 mln from 1.33 mln)... July New Home Sales actually grew at the slowest pace this year as buyers rushed to purchase homes in the spring, ahead of the July interest rate hike... As a result, homebuilding has slumped for the second day in a row and is keeping the blue chip averages locked in negative territory... NYSE Adv/Dec 1191/1624, Nasdaq Adv/Dec 975/1576

[54anickel]

41. Dearth of new wells drilled could keep oil prices high

http://news.ft.com/cms/s/1393befe-f60c-11d8-b814-00000e2511c8.html

Some of the world's biggest oil-producing countries have reduced their investment in new capacity despite record oil prices.


The Organisation of Petroleum Exporting Countries this week revealed that its members drilled 6.5 per cent fewer wells in 2003, suggesting that the global supply crunch and high oil prices could last longer than expected, analysts said. The numbers appear to contradict statements by Opec members that they are actively building extra capacity.

“Oil demand has been booming since quarter one 2003, offering Opec along with rising oil prices a clear enough signal of tightening market conditions, which the organisation seems to disregard,” the Centre for Global Energy Studies, a London-based consulting firm, said recently. “Opec has tried to get prices to stay high and now with nearly two years of very strong demand for oil we are really capacity constrained,” said Leo Drollas, CGES deputy executive director and chief economist.

Opec's latest annual statistical report, published this week, shows that the number of wells completed in 2003 fell by more than 10 per cent in Kuwait, Venezuela, Qatar, Nigeria and Iran.

big snip>

It can take as many as two years for countries to act on higher oil prices, but this time countries burned by past boom and bust cycles appear to be taking even longer. Opec's hesitancy means it has squandered its spare capacity, the trump card that allows it to play the role of the world's central bank of oil. It has also increased the likelihood that prices will fall once they have climbed enough to stifle economic growth and, therefore, demand.

[UpInArms]

43. 1:09 EST numbers and blather (WHEE!)

Dow 10,161.30 +62.67 (+0.62%)
Nasdaq 1,853.99 +17.10 (+0.93%)
S&P 500 1,102.33 +6.14 (+0.56%)
10-Yr Bond 4.256% -0.027

1:00PM: Stocks extend their reach into positive territory, benefiting from the encouraging turn in nearly every sector... With the exception of airline and homebuilding, every major industry group has made its way into the green and helped the market in its buying drive... Financial, health care, energy, and tech are all boasting moderate gains and serving to keep the market at new weekly highs... The fact that crude oil has stabilized around its lows has also contributed to the positive tone...NYSE Adv/Dec 2024/1150, Nasdaq Adv/Dec 1643/1229

12:30PM: The market approaches its best levels of the day as crude oil - its source of direction for many months - moves to its lows... Crude oil has dropped $0.56 to $44.65/bbl and neared its lowest prices in nearly 2 weeks... This marks the fourth day of losses for the commodity and has been a welcome relief considering its ascent last week - when it nearly hit $50/bbl... It remains to be see how much lower it can move with supply constrictions pressing (Mideast, Russia, and Venezuela), but the fall has been encouraging and supported the indices' recent uptick...

Up volume is now leading down volume by a healthy margin at the NYSE and Nasdaq...NYSE Adv/Dec 1801/1324, Nasdaq Adv/Dec 1524/1327

12:00PM: A fairly uneventful morning for the equity market, as the indices have hugged the unchanged mark in a session that has provided few true buying - or selling - catalysts... The morning's largest news item - the simultaneous crash of two Russian planes - has been undeniably negative, but the Federal Security Service has reported no signs of terrorist acts...

[UpInArms]

44. Yen intervention hasn't hampered Fed--Greenspan

http://www.reuters.com/financeNewsArticle.jhtml?type=bondsNews&storyID=6068713

WASHINGTON, Aug 25 (Reuters) - Foreign exchange intervention by Japan may have weakened the yen against the dollar and lowered U.S. interest rates, but it has not "hampered" the Federal Reserve's ability to conduct monetary policy, Fed Chairman Alan Greenspan said.

"The operations of the Japanese have not hampered the Federal Reserve in its efforts to conduct monetary policy to achieve price stability and maximum sustainable growth for the U.S. economy," Greenspan said in a written response to a question submitted in connection with a July 20 hearing held by Senate Banking Committee.

In his response, which was released on Wednesday, Greenspan said Tokyo's dollar buying -- which analysts widely viewed as an effort to weaken the yen -- "may have influenced some U.S. asset prices."

"In principle, the Japanese operations would have weakened the yen against the dollar, and it is possible that the operations did so, although the size and persistence of any effects are difficult to judge," he said.

Greenspan added that despite large-scale foreign-exchange intervention by Japan both this year and last the yen had strengthened against the dollar from its early 2002 lows.

...more...

I want some of what he's smokin'!

[54anickel]

47. You dare to question! The great, magnificient wizard of Oz has SPOKEN!

(You left out the most laughable quote)

"U.S. securities markets are the deepest and most liquid of any in the world, and the scale of the Japanese operations, while large by some standards, was arguably too small to have had a substantial effect on the general level of U.S. interest rates"

Some analysts and lawmakers have worried the United States was facing the risk of a potential upward spike in interest rates should overseas investors decide to unload their holdings of U.S. Treasury securities. :eyes:

Seems overseas investor dumping is no longer the ONLY worry we have.

[UpInArms]

45. Fed will be flexible, oil hits growth, Guynn says

http://www.reuters.com/financeNewsArticle.jhtml?type=bondsNews&storyID=6068985

ATLANTA, Aug 25 (Reuters) - A recent soft spot in U.S. growth ought prove temporary and should not alter the Federal Reserve's plan to continue raising interest rates in a measured way, one of it's top policy-makers said on Wednesday.

But Jack Guynn, president of the Federal Reserve Bank of Atlanta, told a lunch meeting that record high oil prices were one of the reasons the economy had hesitated and the Fed would react with flexibility to shocks in both prices and output.

"The data and anecdotal reports we have at this time continue to suggest we can work our way toward a more neutral interest rate setting in a "measured" way," he told the TAPPI Decorative and Industrial Laminates Symposium.

Guynn stressed the Fed was not raising rates because it felt the economy was growing too fast, but rather because with interest rates so low, an accommodative policy was not appropriate amid a widening economic expansion.

...more...

Speaking lessons from Meanspin must have been made available to this guy :crazy:

[UpInArms]

46. 1:31 EST numbers and (must read to believe) blather

Dow 10,158.50 +59.87 (+0.59%)
Nasdaq 1,853.11 +16.22 (+0.88%)
S&P 500 1,102.15 +5.96 (+0.54%)
10-Yr Bond 4.258% -0.025

1:30PM: The rally effort continues to gain steam as the averages remain on a trek of new highs... Since 12 ET, the Dow, Nasdaq, and S&P 500 have zoomed higher by 70, 16, and 7 points, respectively... The participation of most influential sectors and the bullish breadth figures have drawn in more buyers, but it is important to note that volume has remained light on the uptick... Volume at the Nasdaq, specifically, has run just ahead of its levels on Monday, which marked the lowest day of the year...

As a result, investors may not want to read too much into this advance, and note that it could merely be a reaction to the almost 2% dip in the price of crude oil (now at $44.45/bbl)...NYSE Adv/Dec 2136/1060, Nasdaq Adv/Dec 1804/1115

OMG - has sanity come into the "pen"?

[54anickel]

48. Maybe the blather authors read DU and have decided that

the gig is up. :evilgrin:

[KoKo]

61. or maybe they've been struck dumb and speechless....by what they see..

:D

[54anickel]

50. Sleeping with The Debt - Mogambo

http://www.321gold.com/editorials/daughty/daughty082504.html

Foreign Custody Holdings at the Fed, where foreign nationals holding foreign passports and speaking with funny foreign accents come waltzing in with bulging suitcases full of money, thanks to the trade deficit, and they have got to do something with all that money. As they struggle into the lobby of the Federal Reserve, knees buckling under the enormous weight of all that cash, they look up at the menu of things for sale in America that is posted there on the wall, and ask "Where can we spend this damn much money?"

Thus they amass big ol' globs of Treasury and Agency Debt to add to the previous massive, huge glob of Treasury and Agency Debt they have been buying for years and years, and then they get back on an airplane and fly back to the foreign country they call home. And then they get back, and their foreign wives meet them at the door of their foreign-looking little house, and they ask "Well, what did you buy with all that money?" and they say "I bought some American Treasury and Agency debt" and she starts screaming "What? We are up to here with American Treasury and Agency Debt! We got Treasury and Agency Debt everywhere! In the cellar! In the attic! In the hall! In the guest room! In the kitchen! We even have stacks of American Treasury and Agency Debt in the bedroom, and I gotta sleep in there all night with it, breathing the stench that permeates the debt of a bunch of half-witted profligate gluttons, in and out, in and out, until my sinuses and nasal passages are clogged and sore, and when I send you off to invest our money you come back and tell me that you bought MORE American Treasury and Agency Debt? What are you, some kind of moron?"

Anyway, ignoring these unseemly domestic problems, foreigners bought another $9.3 billion for the week, which is higher than usual by quite a bit, and stashed it at the Fed. This brings their total holdings at the Fed to (hit the "Total" button) $1.266 Trillion, of which $320 billion of that was acquired in just the last twelve months.

Two adjacent Bloomberg news clips that the clever Doug Noland juxtaposed in his new Credit Bubble Bulletin essay on the Prudent Bear site, entitled "Speculative Finance and Liquidity Bulges," combine into a perfect illustration. The first one, which sets up the joke, was that Bloomberg reports "The Philippine economy expanded as much as 6 percent in the second quarter as manufacturing and services picked up, according to official estimates."

Well, to be fair, this is news to somebody? How could they NOT have an expanding economy? Everybody is having an expanding economy! That is the whole freaking point of deficit-spending and creating excess money and credit via the central banks! It expands economies! Nobody would ever suggest otherwise, and by "nobody" and "ever" I mean that there is not one instance of an idiot ever saying so, in the whole history of idiots, which is a probably a long, long line of really dumb people all genetically related to me somehow, and I am as surprised as you are about that! But, of course deficit-spending will energize an economy, you fool! Tons and tons of instantaneous spending will always energize an economy! And with globalization, when one economy is energized, it tends to leak out into all the other economies after a few iterations of the system.

more....

[54anickel]

51. 2:25 Pump it up baby!!!! (outdated blather)

Dow 10,181.00 +82.37 (+0.82%)
Nasdaq 1,858.45 +21.56 (+1.17%)
S&P 500 1,104.64 +8.45 (+0.77%)
10-yr Bond 4.25% -0.033
30-yr Bond 5.041% -0.029
NYSE Volume 786,631,000
Nasdaq Volume 889,707,000

2:00PM: Buyers take a breather as the indices slip off their best levels... However, no true threat to the upswing has emerged as the bulk of the gains remain intact... Today's action has likely been the result of the market's ability to maintain - and ultimately build on - its earlier move higher... The Nasdaq itself has cleared an intraday resistance level near 1840, but is currently stuck in a resistance area near 1850/1853, which marks yesterday's recovery high...
The Composite (like the blue chip averages) still has a ways to go in improving its technical stance, as it remains a long ways off from its 50 and 200-day simple moving averages at 1899 and 1972...NYSE Adv/Dec 2188/1042, Nasdaq Adv/Dec 1821/1121

[54anickel]

54. Gold Rises in New York on Terrorism Concerns After 2 Russian Planes Crash

http://www.bloomberg.com/news/markets/commodities.html

Aug. 25 (Bloomberg) -- Gold prices in New York rose for the first time this week, resuming a three-month rally, after two Russian airplanes crashed in separate incidents, sparking concern about terrorism.

All 89 passengers and crew were killed on the planes from Moscow. Some investors buy gold as a hedge against declines in other investments in times of political unrest.

``Although authorities are still investigating, they are afraid it could be some sort of terrorism,'' said Frank Aburto, a broker at F.C. Stone LLC in New York.

Gold futures for December delivery rose $5, or 1.2 percent, to $410 an ounce on the Comex division of the New York Mercantile Exchange. Prices fell 2.5 percent in the previous two sessions after reaching a four-month high of $416.80 on Friday. A futures contract is an agreement to buy or sell a commodity at a specified price and date.

Russian President Vladimir Putin said earlier this week he was concerned that rebels from Chechnya, a republic in the northern Caucasus, might carry out terrorist acts before presidential elections in the republic scheduled for Sunday. Russia has 80,000 soldiers deployed in Chechnya fighting the rebel insurgency.

more...

[54anickel]

55. Screaming from my soap box! (Generation gap?)

http://www.321gold.com/editorials/doctordinero/doctordinero082504.html

After my recent reading of "The Creature from Jekyll Island" and relating our current society to three classic novels, Brave New World by Aldous Huxley, Fahrenheit 451 by Ray Bradbury, and 1984 by George Orwell. This article is basically a rant, so if you are not interested in my general opinions about the economy and society, don't read it, which should save you some time.

I grew up believing it is "better dead than red." Little did I know that the Fabian society had infiltrated the US psyche since the early 1900s. They have slowly been adding die to the laundry, what was once a white shirt, slowly turned pink, and now I look in the mirror it is RED. Now that I live in "The Communist United States of America" and not dead, what does one do? I am not looking forward to the "Bailout" of the US banking system (you can place me in the quick deflation causing banks to fail, which may not become public knowledge, followed by hyperinflation of the Federal Reserve printing excessive fiat to bail out the banks camp, which resembles more like a bunker). I can't help myself thinking "I see bankrupt people but they do not know they are bankrupt."

Lately with all the government figures, the talking heads on bubblevision, I keep thinking about a book report that I did in high-school contrasting Brave New World, Fahrenheit 451, and 1984. Now I can see evidence of all three in our society. I have not read these books for over 20 years so I am writing from memory, so please forgive any inaccuracies.

snip>

I am in the X generation, with a disabled child, who will never be able to take care of herself. I am pissed off that I have to pay so much for Social Security, which I fully expect to be completely defunct when it is my time to retire. I do not like this Ponzi scheme anyways, but I am FORCED by my government to pay into it. I would rather take that 15% of my salary and put it away in honest money (gold) for my child. I hold most of the Baby Boomer Generation in contempt for their selfish ways that have exacerbated this problem and who will prevent the application of any solution. (Baby Boomers of the Information Resistance are exempted from my contempt.) Everyone knows that the Social Security system is in trouble but no politician wants to apply the tough love needed to fix it. (The benefits must be cut or eliminated.) I always find it humorous (in a sick way) to think that the 13 colonies decided to rebel because of a 3% tax. (If I was promised a 3% total tax I would kiss them.)

[KoKo]

59. I don't know about this rant. I don't think it's a generational problem,

but a policy problem. I'm sad that is writer has a disabled child, and is angry that he has to pay 15% of his salary for a "boomer's old age fund." I wonder what this Generation X's parents are counting on to get through their "retirement?" Also what about the boomers who have been forced out by layoffs and don't have anything but their savings to live on until they are 67 and can then qualify for assistance with their medical care and living expenses?

There's a big gap in those being layed off in their early 50's where they may not be able to compete for jobs because of age and a younger population in competition. There aren't enough jobs at WalMart or Mickey D's to take care of those being thrown out of work today in that age range. And, when you are layed off your health care is totally on you...meaning something like up to 15 to 20,000 a year for doctor and hospital coverage for a family.

Perhaps this writer is one of those who feels privitization of SS is the way to go. Investing in the Stock Market to fund our retirements or gold eagles. It's a pretty risky business to figure that far ahead what the markets will be when it's time to cash in those "presumed savings," though.

[54anickel]

63. Yes, I suppose it is more of a policy than generational issue, perhaps

it's the combination, policy has pitted generations against each other in a way. Gen Xers, raised under the "Individual" ideology started by Raygun vs the boomers, those hippies from the 60's who once believed in community, freedom, love not war, flower power, etc. Of course many of them grew up into the "I got mine, go get your own" yuppies, maybe in part due to the "individualism" ideology of Raygun.

Whatever the cause, I find it both sad and ugly.

[KoKo]

73. It's "ugly and sad" ...agree. But not all the boomers were "flower

children" smoking their way into "nirvana." Many had families and children (some due to the draft...like Cheney folk) who had to make a life on their own. The fact that Cheney "made good" shouldn't penalize the rest of the boomers who weren't folicking in Haight-Ashbury or stoned with the Stones in Woodstock.

Much had been vilified about everyone of "that time." I put it up to the MEDIA who characterized a whole generation with their paint brushes of "many colors" rather than the reallity of the "Boomers" I've known who where living very ordinary lives trying to "work at a job, and raise children in the best way they could."

So much is attributed in blame to the "Boomers" and yet few go "behind the scenes to see who the rest were..and how they lived during that time." JMHO...here...maybe I should write a book..but I was a "tweener" with a foot in both camps...maybe a great book from those of us who are "silent." :shrug:

[54anickel]

56. 3:13 update. Any last hour surprises today?

Dow 10,182.62 +83.99 (+0.83%)
Nasdaq 1,858.50 +21.61 (+1.18%)
S&P 500 1,104.51 +8.32 (+0.76%)
10-yr Bond 4.256% -0.027
30-yr Bond 5.044% -0.026
NYSE Volume 943,582,000
Nasdaq Volume 1,044,928,000

3:05PM: Sellers remain a scarce entity as equities continue to march higher, aided by the consistent drop in the price of crude oil... The commodity has plummeted almost $2 to $43.35/bbl - its lowest levels in two weeks... CNBC has noted that increased margin requirements for crude contracts goes into effect today... The strength of equities has diminished the extent of the bond market's climb higher today, with the 10-year note up just 3 ticks (for a yield of 4.26%)... The treasury market was up higher earlier today on the much weaker than expected July New Home Sales report...NYSE Adv/Dec 2317/997, Nasdaq Adv/Dec 1942/1098

2:30PM: After pausing at the top of the hour, equities take off again and stretch for new highs... Crude oil has remained on its downward path and plunged 4% to $43.40/bbl now... The broad-based nature of industry leadership has also propelled the indices even higher and kept selling interest fairly lower... Most of the buying has gone into areas that have been hardest hit during the mid-summer sell-off (semiconductor, biotech, brokerage)... Groups that have shown relative weakness, not surprisingly, have been consumer staple sectors such as household product and beverage....

Right now, the only industry to still be showing losses is homebuilding - off the disappointing July New Home Sales report...NYSE Adv/Dec 2205/1060, Nasdaq Adv/Dec 1810/1183

[54anickel]

57. U.S. Treasuries firmer, but auction disappoints

http://www.reuters.com/financeNewsArticle.jhtml?type=bondsNews&storyID=6069429

NEW YORK, Aug 25 (Reuters) - Treasury debt prices firmed on Wednesday as the latest U.S. economic data contained enough soft spots to keep the economic outlook uncertain.

But bonds came off their best levels after an auction of new U.S. government debt drew only tepid demand. The benchmark 10-year note (US10YT=RR: Quote, Profile, Research) gained 5/32 in price, lowering yields to 4.26 percent from 4.28 percent on Tuesday. Yields had been as low as 4.23 percent before the auction.

"The two-year note auction was indeed 'ho-hum,' with the likes of bid-offer, and tail very close to longer-term averages," said Alan Ruskin, chief economist at 4CAST.

The $24 billion in new two-year Treasury notes went at a high yield of 2.494 percent. It drew bids for 2.19 times the amount on offer, below July's 2.36 but in line with the 2.20 average for the year so far.

Indirect bidders, including customers of primary dealers and foreign central banks, picked up $10.46 billion or almost 43.6 percent of the whole issue. That was down from the huge 57 percent taken in the July auction and below the 48 percent average of the last five sales.

more...

[KoKo]

60. hmmm...."indirect bidders and customers of primary dealers...and....

etc., etc. :eyes:

Indirect bidders, including customers of primary dealers and foreign central banks, picked up $10.46 billion or almost 43.6 percent of the whole issue. That was down from the huge 57 percent taken in the July auction and below the 48 percent average of the last five sales.

[54anickel]

62. In search of a golden fleece

http://www.theglobeandmail.com/servlet/story/RTGAM.20040824.wmathlaterfront0824/BNStory/Front/

There are plenty of conspiracy theories out there, from the Kennedy fetishists with their homemade copies of the Zapruder film to the Area 51 geeks with their tales of alien technology kept under wraps by NASA. In the financial arena, the most popular by far is the idea that central banks, the International Monetary Fund, bullion banks and even the Federal Reserve Board are in cahoots to suppress the price of gold.

But is this just a wacky theory promoted by gold bugs and Internet kooks with too much time on their hands, or is there more to it than that? Sprott Securities market strategist John Embry believes the latter — that despite the loony-sounding ideas of some conspiracy advocates, there is a core of truth to their claims that gold is being "managed" by central banks and other financial institutions. He laid out those arguments in a recent 66-page research report.

In effect, Mr. Embry says that while he doesn't like the term "conspiracy," he believes there is some evidence that various central banks, including the U.S. Federal Reserve, have acted in concert with the International Monetary Fund and others — even the U.S. government itself — to keep the price of gold depressed. This, Mr. Embry says, has taken advantage of "unsuspecting investors labouring under the illusion that gold is indeed a free market."

This is not the first time Mr. Embry has sided with those who believe the bullion market is being manipulated by powerful forces. Two years ago he wrote a similar report in his capacity as a fund manager at Royal Bank of Canada. The bank seemed to take a dim view of Mr. Embry's thoughts on the subject, however, since the head of Royal Bank's investment management arm made it known that Mr. Embry's report was written for internal use and thus "in no way reflects the views of Royal Bank."

more...

[54anickel]

64. Closing numbers - a "Fantabulous rally"

Nice cushion should tomorrows initial claims report disappoint or a bit of bait to lure them in by the droves for a proper fleecing should the reports come in positive. :shrug:


Dow 10,181.74 +83.11 (+0.82%)
Nasdaq 1,860.72 +23.83 (+1.30%)
S&P 500 1,104.96 +8.77 (+0.80%)
10-yr Bond 4.261% -0.022
30-yr Bond 5.050% -0.020
NYSE Volume 1,192,138,000
Nasdaq Volume 1,299,940,000

3:30PM: Major indices hold around the peak of their climb higher with 30 minutes left to go in trading... Today's afternoon rally has come as a bit of a surprise - considering the lack of activity in Monday and Tuesday's sessions - but we would reiterate it occurred on extremely light volume... The NYSE has yet to even cross the 1 bln share mark, indicating conviction on the part of buyers leaves a little to be desired... Tomorrow, the most notable earnings report arguably comes from Krispy Kreme (KKD 15.25 +0.22), and there will be one big economic report in the form of weekly initial claims...
Novellus (NVLS 25.27 +0.42) will also be giving its mid-quarter update after the close...NYSE Adv/Dec 2322/999, Nasdaq Adv/Dec 1945/1106

3:05PM: Sellers remain a scarce entity as equities continue to march higher, aided by the consistent drop in the price of crude oil... The commodity has plummeted almost $2 to $43.35/bbl - its lowest levels in two weeks... CNBC has noted that increased margin requirements for crude contracts goes into effect today... The strength of equities has diminished the extent of the bond market's climb higher today, with the 10-year note up just 3 ticks (for a yield of 4.26%)... The treasury market was up higher earlier today on the much weaker than expected July New Home Sales report...NYSE Adv/Dec 2317/997, Nasdaq Adv/Dec 1942/1098

Advances & Declines
NYSE Nasdaq
Advances 2280 (65%) 2002 (61%)
Declines 1060 (30%) 1067 (32%)
Unchanged 134 (3%) 167 (5%)

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

Up Vol* 803 (72%) 1028 (82%)
Down Vol* 298 (26%) 205 (16%)
Unch. Vol* 10 (0%) 19 (1%)

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

New Hi's 105 43
New Lo's 16 49

Have a great night :hi:

[54anickel]

65. A final splash of closing blather

Close Dow +83.11 at 10181.74, S&P +8.77 at 1104.96, Nasdaq +23.83 at 1860.72: What started as yet another boring day of trading (see the relatively flat values for Monday and Tuesday) ended up being a fairly exciting one as the indices put together a broad-based rally... The advance began at 12 ET, and involved the Dow, Nasdaq, and S&P 500 shooting higher by approximately 90, 21, and 9 points, respectively... Solid sector leadership and bullish market internals were responsible for the uptick, although volume levels certainly did not support the case of the bulls...

Volume was once again anemic - barely surpassing the totals set Monday, which was the lightest day of the year - and suggested conviction on the part of buyers was not strong... Despite this fact, the major indices still managed to make headway through a number of technical barriers - with most of this prompted by a 4% plunge in the price of crude oil to $43.47/bbl... This is the fourth day in a row crude oil has traded lower, and conditions this morning (a drop in both the American Petroleum Institute and Energy Information Administration's weekly oil inventories, and the crash of two Russian airplanes) certainly didn't support that...

Rather, crude oil did the reverse as traders took profits from the initial pop last week (near $50/bbl)... Brokerage, biotech, oil service, and semiconductor were all standout sectors and helped spearhead the indices' march higher... Just about ever industry group joined in, with the only laggard being homebuilding... The area was hit following the weaker than expected July New Home Sales report (to 1.13 mln versus the consensus of 1.30 mln)... Other economic reports were more encouraging - July Durable Orders rose 1.7% (consensus of +1.0%) as orders for defense, electrical equipment, and primary metals increased noticeably...SOX +1.1, NYSE Adv/Dec 2329/1009, Nasdaq Adv/Dec 2059/989

[KoKo]

66. Cartoon

[KoKo]

67. Here's a cartoon...

[54anickel]

68. Whaddaya up to there KoKo?

[KoKo]

69. Sorry...after five test....for "tests" of Microsoft against "Netscape."

Just ignore it...really...sorry...

Actually, if you really want to know it was "my test" against the computer Cobalt..whatever guys against the easy use of Netscape..whatever...just ignore...

Hanging head in shame for using LBN/Marketeers for a use of how to post cartoons...:-(...hanging head..after hours..thinking no one was here...
ugh..

[UpInArms]

70. Hi KoKo!

great 'toon :D

I use Opera and think it is much better :bounce:

[54anickel]

71. Ahh, you always make me smile KoKo. No problem, sorry to have

"outted" you. :hi:

It's as good a place as any to test your posts! I thought you had a really good new toon to add. Wouldn't want to miss out on one of them! ;-)

I'll leave you alone now.

[KoKo]

72. ROFL...fugedaboutit? (did I get that right?) whatever..thanks to you

guys for giving me some leeway,here! :D..

It was due to a Meeting Room post about how to post cartoons/pix...and I as a "math/computer deficient person" wanted to show off my stuff about how you didn't need to do computer gyrations just to post a pix...

Folks were saying "Go to "properties" and "cut and paste" and hit C+ something...and I read the thread and said...Ugh...computer "old school" and being a smart ass I was trying to show computer clueless hubby that one just "right clicks" and hits "Save Image" and then goes to DU post and hit's "Paste" and all is fine... You don't need to do that "oldie" stuff...but there's always three ways to do everything in Microsoft..but no one tells you that...and since I don't use much of Microsoft (being a Netscape person from my "clueless beginning" I found the posters on that site asking folks to go to "Properties...and then hit cut and paste " sort of odd...was why I was using "Marketeer Site" for example. I was using Ozy's TOON as my example...

Just so you know... :D