STOCK MARKET WATCH, Monday 7 November

THE DOW REPORT
A Quick Look at Key Sectors

Last week we found that the Housing Index is beginning to soften, but that it is still holding above key support levels. We also found that the Home Furnishings sector has broken down and seems to be leading the housing sector and perhaps is even reflective of other areas of consumer spending. This week we want to look at a few other key sectors in an effort to determine which other areas may also be softening.

To begin with we have the Dow Jones Auto Manufactures Index in the chart below. Beginning at the March 2003 intermediate-term low this index began moving up in conjunction with the rest of the market as price advanced out of the bear market Phase I low. As a general rule, there is an intermediate-term cycle or rhythm in the market that averages approximately one year. In this case, you can see that this index pushed up into a top in January 2004 and then bottomed 1 year later in March 2004. At this point, all was well. But, when the next intermediate-term advance failed to move above the previous intermediate-term high, trouble began. From a cyclical perspective, this setup is what’s known as a failure and when failures occur after such an advance, the expectation is for the previous low of the same degree to be violated. You can see that this is exactly what happened as price fell into the April 2005 intermediate-term low.



Now there is even more trouble brewing as we have a second failure in place. With the rally out of the April 2005 intermediate-term low failing to push above the 2004 high, prior to a break below the April 2005 low, we now have a second confirmed intermediate-term failure. Let me say this another way. The fact that the April 2005 low has been violated serves to confirm that the advance out of the April low was a failure and our general expectation is that we should look for this index to work lower into or around April 2006 as the next intermediate-term cycle bottoms.

Next we have the Housing Index. Here we see that since the Phase I low in March 2003 each of the intermediate-term lows has made progressively higher highs. Therefore, from an intermediate-term structural point of view this index remains bullish. Shorter-term, this index has undergone structural deterioration with a series of lower lows and lower highs, as are marked by the green and blue support and resistance levels on the chart below. The question now becomes, will this shorter-term deterioration pull this index down below the previous intermediate-term low as marked in red? Based on what we saw last week in the Home Furnishing Index, the answer is most likely, Yes. Therefore, the April 2005 low is the key level to watch on the Housing Index. If this level is violated, it should serve to confirm a downturn for housing.

more...

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

inhuman, gouging profiteers! I am enraged that many will die of hypothermia this winter so someone can make huge profits! I am very fortunate that my mother has offered to help me with heating this winter, otherwise I would be one of those poor dying souls myself. LIHEAP helped with one month last year and is cutting that even this year due to so many having to apply for help. I just paid off last year's bill finally in Sept!

When does this bullshit ever stop? Argh!!

Great toon oz, thanks! Sorry about the small rant. :)

Peace
V

BTW - Is spellcheck working for you? It hasn't worked in 3 days for me, maybe a corrupted cookie?

A rant is perfectly justified given the recent thorough shafting from utility companies. My gas bill has nearly doubled in the past two months - even with mild weather with only a handful of cold weather days. Electricity is up too.

This only fuels my argument for utility companies to be nationalized.

for those with no one to help them this winter, I am physically ill over it. And it seems that calling and emailing the reps is hopeless, they just don't listen to anyone.

What would nationalizing the utilites require? Is it even possible to make an attempt at such a massive endeavor?

Thanks for all oz! :hug: :yourock:

:donut: Things are looking better in the oil patch. More refineries are online but the off shore rigs are slower going. The biggest shocker here-I saw gas at 2.13 at WalMart(the new one by my house)and Citgo is 2.19. This is below pre Rita. They are dragging out the Christmas stuff out early, but not many buyer from what I could figure from the inventory on the shelf. I am not buying much this year. Daughter is so stoke over her silk screen. I may surprise her with an additional screen and colours, and I have one more gift I haven't given her, but that is it. Hubby will get some clothes and I will wait for the post Thanksgiving day sale. I want a simple treadmill and don't care if it is new or used. Boy are we a cheap group.
Kudos to all you workers and lurkers that keep this thread humming. I hit this thread before I even open a financial page. And I have never been so well informed.

SINGAPORE - Crude oil futures fell Monday with warmer-than-usual weather across much of the United States easing concerns about winter heating fuel demand.

But the International Energy Agency reiterated widespread concerns about capacity on Monday, saying in its 2005 World Energy Outlook that global energy needs will surge 50 percent by 2030 and prices will rise if capacity is not significantly increased.

Light, sweet crude for December delivery fell 63 cents to $59.95 a barrel in electronic trading on the New York Mercantile Exchange. December Brent crude futures in London's ICE Futures exchange fell 61 cents to $58.64 a barrel.

Analysts attributed the slip in crude futures to expectations that the winter season in the U.S. won't start until later this month. The U.S. Northeast is the world's largest heating oil market.

more

PARIS - IMF chief Rodrigo Rato warned Friday that high oil prices are endangering the global economy and urged governments to boost employment in response to increasing signs of social tension.

The world economy has broadly withstood a steady two-year rise in oil prices, the International Monetary Fund's managing director said, but price pressures are increasingly driven by supply constraints rather than demand, with "more nasty" economic consequences.

"We are seeing more inflationary pressures across the board and we are seeing also some consequences in consumption, so that means in growth," Rato said.

The full impact on growth and inflation has yet to be felt, he said.

more

10:01am 11/07/05 DEC CRUDE FALLS 78C TO $59.80/BRL IN EARLY NY TRADE

10:01am 11/07/05 DEC NATURAL GAS FALLS 33.5C, OR 2.9%, TO $11.08/MLN BTUS

11:23am 11/07/05 DEC CRUDE FALLS $1.63 TO $58.96/BRL, LOWEST SINCE WEDNESDAY

11:23am 11/07/05 DEC NATURAL GAS DOWN 2.8% AT $11.10 AFTER 2-MO LOW OF $11.03

2:50pm 11/07/05 DEC CRUDE CLOSES AT LOWEST LEVEL SINCE JULY 21

2:50pm 11/07/05 DEC CRUDE FALLS $1.11, OR 1.8%, TO END AT $59.47/BRL

2:51pm 11/07/05 DEC NATURAL GAS BOUNCES FROM 2-MO LOW TO END AT 1-WK HIGH

2:51pm 11/07/05 DEC NATURAL GAS UP 4% TO CLOSE AT $11.873/MLN BTUS

NEW YORK (Reuters) - U.S. stock futures rose, indicating a higher market opening, on Monday as oil prices dipped below $60 a barrel, easing worries about energy costs for consumers, and last week's market gains raised hopes of a late-year rally.

Microsoft Corp. (Nasdaq:MSFT - news), the world's largest software maker, has emerged as the lead suitor for a stake in Time Warner Inc.'s (NYSE:TWX - news) Internet unit, America Online (AOL), according to a report by The New York Times.

-cut-

S&P 500 futures were up 1.8 points, slightly above their fair value, a mathematical formula that evaluates their pricing by taking into account interest rates, dividends and time to expiration on the contract.

Dow Jones industrial average futures were up 16 points, while Nasdaq 100 futures were up 4 points.

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NEW YORK (CNN/Money) - 'Twas the week before Halloween when a big Wall Street firm did send, a note most scary to investors that said ...

Next year, no earnings growth.

What? Zero earnings growth?

Granted, a boatload of bulls and bears alike are concerned about the outlook for stocks, and the economy, in 2006, particularly in the first half. And "slowing earnings growth" has become something of a mantra for many on Wall Street.

But none? Zero? Zip? It would be the first time in four years Wall Street's had to weather that.

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3:00 PM Consumer Credit Sep -
Briefing Forecast $3.0B
Market Expects $6.0B
Prior $4.9B

1997 was a very good year - and 2002 and SUCKED - this is how they will skew the numbers for the rest of everything that the reports are based on.

http://today.reuters.com/investing/financeArticle.aspx?type=bondsNews&storyID=2005-11-07T150314Z_01_N07517685_RTRIDST_0_ECONOMY-OUTPUT.XML

US Sept industrial output revised downward

WASHINGTON, Nov 7 (Reuters) - The drop in U.S. industrial output for September was bigger than previously estimated, while capacity use was slightly higher than first reported, according to annual revision data issued on Monday by the Federal Reserve.

Industrial production was down 1.5 percent in the month, revised from a decline of 1.3 percent as reported on October 14.

Industrial capacity in use was 79.0 percent in September, revised from 78.6 percent, the Fed said.

For August, the Fed revised industrial output upward to an increase of 0.4 percent from 0.2 percent and adjusted industrial capacity use upward to 80.3 percent from 79.8 percent.

The Fed said that beginning with this year's annual revisions, it has changed its base year to 2002 from 1997.

http://www.marketwatch.com/news/newsfinder/pulseone.asp?dateid=38663.6257543287-849321268&siteID=mktw&scid=0&doctype=806&

WASHINGTON (MarketWatch) -- Outstanding debt owed by U.S. consumers was essentially unchanged in September, the slowest growth in 10 months, the Federal Reserve reported Monday. The decline largely reflected a slump in auto sales in September. Revolving credit -- such as credit cards -- increased at an annual rate of $3.1 billion, or 4.7%, while nonrevolving credit -- such as auto loans -- fell $3.2 billion, or $2.8%. Credit backed by real estate is not included in the figures. Economists were expecting consumer credit to rise $5.3 billion after rising a revised $7.9 billion in August. For the third quarter, consumer credit increased at an annual rate of 3.3%.

3:00pm 11/07/05 U.S. SEPT. NONREVOLVING CREDIT FALLS 2.8%

3:00pm 11/07/05 U.S. SEPT. REVOLVING CREDIT UP 4.7%

3:00pm 11/07/05 U.S. SEPT. CONSUMER CREDIT FLAT VS. $5.3BLN EXPECTED

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

Last trade 91.27 Change +0.01 (+0.01%)

NFPs Hardly Please but Dollar Boom Rolls On

Non-Farm Payrolls - the marquee event of the week- did not produce ironclad evidence of strength that dollars bulls were looking for, but just like in horseshoes, close enough was good enough and after a few minutes of indecision on Friday the EUR/USD plummeted nearly hitting the 1.1800 figure for the first time in a year and half. The number itself was relatively weak printing 56K vs. 120K expected and as most analysts were quick to point out fully half of that gain came from construction, With housing inventories starting to bulge as a result of higher rates, this hardly bodes well for the rest of the economy unless some other sector can pick up the slack.

Greenback clearly has the momentum now and may well take the EUR/USD to 1.17000 level before the selling is finished. The primary driver for the move has much more to do with sentiment rather than reason. As we reported Friday, our SSI indicator flashed a massive mis-position by our order book, which indicated that the market was simply caught short too many dollars as we saw 3 euro longs for every dollar long. Next week, with the Trade Balance report likely to pour some rain on dollar bulls parade, we prefer to stand aside despite the clear momentum for the buck.

...more...

Currency: Dollar Breaks Majors On Employment Data

http://www.dailyfx.com/index.php?option=com_content&task=view&id=4651&Itemid=62

The US Dollar surged against the major currencies in the New York session after payroll data sparked rallies across the board. The EURUSD currency pair plunged to an 18-month low, stopping mere pips away from the highly fortified 1.1800 level. Against the yen, the dollar pushed nearly 1.0 percent higher to 118.35 and dollar bidding peaked the USDCHF pair out at 1.3087 for a 1.3 percent increase from yesterday’s close. The EURUSD was trading at 1.1834 while the USDCHF was quoted at 1.2043 at 15:51 GMT.

Today’s dollar strength stemmed from speculation that, despite disappointing employment figures, the economy is still poised for future interest rate hikes. The economy created 52,000 new jobs in the month of October, falling short of expectations for 125,000. Despite falling short of the consensus, the indicator suggests that the after effects of the gulf coast hurricanes are fading and the employment data is beginning to stabilize. Further adding to optimism was the revision of last month’s payroll read which was adjusted to 8,000 jobs lost compared to a net 35,000. Subsequently this month, the jobless rate dipped back to 5.0 percent bringing the measure closer to the four-year low 4.9 percent set in August. Officials are reporting that October’s disappointing change in payrolls was largely attributed by areas outside of the region damaged by the storms in September. Instead, improving employment numbers this month are partially being attributed to people leaving the labor force and new jobs for those that were displaced by the storm. Also supporting the barrage of employment data for the day was the change in hourly wages over the past month. Wages paid to employees rose 0.5 percent to $16.27, which may signal to the Fed that consumer spending will further fuel inflation and require appropriate hawkish monetary policy to contain price growth.

The equity benchmarks are trading lower on the disappointing employment data. The Dow Jones Industrials are trading lower by 0.27 percent, at 10,494. The S&P 500 is also lower, trading at 1,216, down 0.29 percent. Meanwhile, the NASDAQ, being buoyed by Oracle, is up slightly by 0.04 percent, trading at 2,161. Oracle Corp. announced, today, that its CFO, Greg Maffei, will be leaving the company. This is the second CFO that Oracle had lost this year. Oracle shares are currently up 2.38 percent, trading at 12.49. Also, shares of Apple Computer declined after Prudential downgraded the stock from Outperform to Neutral, citing that the stock is now perfectly priced. Apple shares are down 1.62 percent, at 60.85.

...more...

http://today.reuters.com/investing/financeArticle.aspx?type=bondsNews&storyID=2005-11-07T143354Z_01_N07343336_RTRIDST_0_MARKETS-FED-OPERATIONS.XML

NEW YORK, Nov 7 (Reuters) - The Federal Reserve said on Monday it was adding temporary reserves to the U.S. banking system through overnight system repurchase agreements.

The benchmark federal funds rate last traded at 4.00 percent, the Fed's target for the overnight lending rate.

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



The National Debt has continued to increase an average of
$3.48 billion per day since September 30, 2005

http://www.marketwatch.com/news/print_story.asp?print=1&guid={9CE43051-481E-4AD5-92F9-1CEF34FFF6E8}&siteid=mktw

CHICAGO (MarketWatch) - Treasurys recovered a portion of a four-day decline on Monday ahead of a trio of auctions this week that are seen drawing solid demand with attractive yields.

Worries about inflation and expectations for additional Federal Reserve interest-rate tightening have driven short-term yields to multimonth highs and pushed benchmark yields near the highs of the year.

In morning trading, the benchmark 10-year government note was up 10/32 at 97 2/32. That added more than $2.50 per each $1,000 of securities at face value.

Price gains dropped the note's yield ($TNX) , a reference for mortgage and corporate borrowing rates to 4.62% from 4.66% Friday.

The benchmark yield was as high as 4.68% in intraday trading on March 23, the high for the year.

Inflation eats up the fixed interest payments collected on bond investments and investors typically demand higher yields as insulation. Investors may view current yields as enough compensation for their risk, traders said.

...more...

http://msnbc.msn.com/id/9928590/

excerpt:

The lawyers are requesting documents about payments made to Phillip Bennett, Refco's ousted chief executive, and Tone Grant, his predecessor, after Thomas H Lee, a private equity firm, bought a majority stake in the brokerage last year.

<snip>

A committee of the unsecured creditors is seeking permission from a New York bankruptcy court to obtain the documents, and said in a filing: "All of the insider payments, which stripped of much of the cash raised in the IPO and before, are currently under investigation by the committee and may be subject to challenge."

<snip>

Lawyers for the committee are also investigating loan transactions involving Refco and Liberty Corner Capital Strategies, a hedge fund, that prosecutors allege were used by Mr Bennett to mask the debts he owed. He repaid the $430m last month.

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Dow 10,556.69 +25.93 (+0.25%)
Nasdaq 2,177.83 +8.40 (+0.39%)
S&P 500 1,222.48 +2.34 (+0.19%)
10-Yr Bond 4.635 -0.22 (-0.47%)

NYSE Volume 94,875,000
Nasdaq Volume 110,318,000

Mm, your love is lifting me higher
than I ever been lifted before.
Ooh, baby, keep it up, sweet baby.
Quench my desire,
and I'll be at your side forever more.
'Cause your love is liftin' me higher and higher.
Your love keeps on liftin' me, oh, higher, higher.

Now once I was down-hearted,
and disappointment was my closest friend.
But then you came,
and he soon departed.
And you know I never seen,
I haven't seen his face again!

Your love is liftin' me
higher, higher, higher, higher.
Your love is liftin' me
higher, higher, higher and higher.

Your love keeps liftin' me,
keeps on liftin' me.
Your love keeps liftin' me
higher, higher.

Your love keeps liftin' me,
keeps on liftin' me.
Your love keeps liftin' me
higher, higher.

9:38am 11/07/05 DEC GOLD CLIMBS 50C TO $458.40/OZ IN MORNING NY TRADE

Dow 10,526.84 -3.92 (-0.04%)
Nasdaq 2,166.54 -2.89 (-0.13%)
S&P 500 1,217.29 -2.85 (-0.23%)
10-Yr Bond 4.630 -0.27 (-0.58%)

NYSE Volume 358,503,000
Nasdaq Volume 349,316,000

Elton John's tune -

Love Lies Bleeding in the Sand comes to mind :eyes:

http://www.marketwatch.com/news/print_story.asp?print=1&guid={AB2DFB0B-1783-46A6-A272-AE4EEDD65C29}&siteid=mktw

BOSTON (MarketWatch) -- Guidant Corp. said Monday that sales in the third quarter of its medical devices dropped 14% from last year, due mostly to a string of product recalls issued in recent months.

For the quarter ended Sept. 30, Guidant (GDT) reported net income of $65 million, or 20 cents a share, compared with $161 million, or 50 cents a share, for the same quarter last year.

<snip>

Guidant has been forced to recall several of its products in recent months due to suspected defects.

...more...

:donut: And good mornin', Marketeers!! :hi:

I slept late this Monday a.m., so I'm just now opening my eyes. Looks like an interesting Monday, huh? Stocks were sleeping late, too, and couldn't decide which way to go at first.

:kick::kick::kick:

11:33
Dow 10,539.89 +9.13 (+0.09%)
Nasdaq 2,169.51 +0.08 (+0.00%)
S&P 500 1,218.96 -1.18 (-0.10%)
10-Yr Bond 46.35 -0.22 (-0.47%)
NYSE Volume 696,640,000
Nasdaq Volume 609,516,000

11:00AM: The indices have vacillated around the flat line since the prior update, and each has currently reassumed a positive stance. Crude has now fallen 1.5%, to $59.64 per barrel; aside from spurring the 1.3% decline in the Energy sector, its pullback has had a minimal effect upon the broader market. Only two of the S&P's energy issues (SLB and ASH) are trading on positive ground, with the other 27 helping to pare more of the sector's 27.0% year-to-date gain. Technology's 0.1% loss helps cap the Nasdaq's rise, and is similarly a result of wide-spread selling. A particular weak spot is Yahoo (YHOO 37.62 -0.25), trending lower as investors digest several news items involving the company. Among them: The stock was removed from JP Morgan's focus list; the company plans to buyout the shares of its European and Korean units; and Yahoo is set to launch new separate services with both TiVo (TIVO 5.45 +0.33) and Google (GOOG 396.53 +6.10). NYSE Adv/Dec 1446/1499, Nasdaq Adv/Dec 1407/1346

10:30AM: Dipping into the red, the Dow, S&P, and Nasdaq each relinquish early gains. Along with Energy (-1.7%), Materials (-0.2%), Technology (-0.2%), Consumer Staples (-0.1%) and Telecommunications Services (-0.3%), Healthcare (-0.3%) trends lower. Following Johnson & Johnson's (JNJ 60.63 -0.25) assertion that it may scrap the $25.4 bln merger to which it had previously agreed, Guidant (GDT 56.46 -2.46) has sued J&J and experienced a 4.2% plunge in its shares today. JNJ shares, as a result, have also swung lower. Losses amid most of Healthcare's pharmaceutical bellwethers and biotech issues present further challenge to the sector and overall market.NYSE Adv/Dec 1575/1262, Nasdaq Adv/Dec 1456/1197

Dow 10,545.97 +15.21 (+0.14%)
Nasdaq 2,171.44 +2.01 (+0.09%)
S&P 500 1,219.52 -0.62 (-0.05%)
10-Yr Bond 4.635 -0.22 (-0.47%)

NYSE Volume 717,968,000
Nasdaq Volume 630,201,000

11:30AM: Energy's 1.7% loss amid a lack of leadership pushes the major averages back into the red. The Treasury market, meanwhile, continues to maintain solid footing. Bonds hit 3-year lows on Friday, but have recovered somewhat this morning; the benchmark 10-year note is up six ticks and yielding 4.63%. The rate-sensitive financial sector extends a 0.2% gain today, to the partial credit of relative strength in banks. Separately, Allstate (ALL 55.55 +0.40) helps the sector's insurance segment, up 0.7% after Bear Stearns upgraded shares to Outperform from Peer Perform.NYSE Adv/Dec 1528/1486, Nasdaq Adv/Dec 1370/1446

Dow 10,566.86 +36.10 (+0.34%)
Nasdaq 2,175.46 +6.03 (+0.28%)
S&P 500 1,221.53 +1.39 (+0.11%)
10-Yr Bond 4.641 -0.16 (-0.34%)

NYSE Volume 882,812,000
Nasdaq Volume 756,916,000

12:00PM : Following two straight weekly gains and the biggest five-day rise since September, the market struggles to continue that trend today. Athough opening higher, the indices vacillate around the unchanged mark and currently stand in mixed fashion. A sharp pullback in the price of crude, alongside reports that gasoline declined $0.23 per gallon over the past two weeks - and $0.48 over the past four - encouraged early buyers, but the resulting 2.0% slide in the Energy sector weighs heavily upon the broader market. A disappointing third quarter report from El Paso (EP) further pressures the sector, and leaves refiners particularly weak. Overall, though, the earnings front is relatively uneventful, and a quiet economic calendar provides no trading catalyst today. Leadership has not emerged, and sector standing remains split. Accompanying Energy on the laggard list is Telecommunications Services (-0.5%), Utilities (-0.3%), and Healthcare (-0.2%). With respect to Utilities, TXU Corp. (TXU 98.84 +5.01) helps offset wide-spread selling; shares have surged after the company announced a $34 mln share repurchase program, a 43% dividend increase, a two-for-one stock split, and reaffirmed FY05 guidance. Healthcare is especially pressured by a 4.6% plunge in Guidant shares (GDT 56.36 -2.56), the extended result of Johnson & Johnson's (JNJ 60.47 -0.41) assertion that it intends to nix the $25.4 bln merger agreement to which it had previously agreed. The lawsuit Guidant announced today has sent JNJ shares lower. Regaining positive footing, the Technology sector extends a 0.2% gain on account of relative strength in semiconductors. Advanced Micro Devices (AMD 24.84 +0.21) is a particular bright spot, benefiting from Hewlett-Packard's (HPQ 28.70 +0.17) decision to use AMD chips in its new blade PCs. While there is a dearth of news today, investors have digested several reports regarding Yahoo (YHOO 37.78 -0.09) and have subsequently sent shares lower. The company was removed from JP Morgan's focus list, plans to buyout its European and Korean units, and is set to launch new services with both Google (GOOG 395.85 +5.42) and TiVo (TIVO 5.41 +0.29). The 0.4% gain levied by Financials serves as the market's strongest source of support, and can be largely credited to relative strength in banks and an upgrade-related rise in Allstate (ALL 55.59 +0.44) After the Treasury market hit three-year lows on Friday, bonds have recovered somewhat today and have, in turn, helped the rate-sensitive sector. The 10-year (+05/32) currently yields 4.64%. NYSE Adv/Dec 1526/1531, Nasdaq Adv/Dec 1448/1406

Dow 10,580.63 +49.87 (+0.47%)
Nasdaq 2,179.21 +9.78 (+0.45%)
S&P 500 1,223.13 +2.99 (+0.25%)
10-Yr Bond 4.643 -0.14 (-0.30%)

NYSE Volume 1,344,325,000
Nasdaq Volume 1,112,677,000

2:00PM: Little has changed over the past half an hour within either the stock or bond markets. One area faring especially well today is transportation, catching a bid from the sharp pullback in crude (-$1.20 $59.35/bbl). The Dow Jones Transportation Average (DJT) has risen 1.0%, with all but two of its issues contributing to the upside. Landstar System (LSTR 41.09 +1.24) leads the way higher, followed by JB Hunt (JBHT 21.33 +0.43) and AMR Corp. (AMR 14.63 +0.25). Airlines, however, demonstrate some relative weakness; Southwest (LUV 16.24 -0.06), the S&P's only airline stock, is off 0.4%, and the AMEX airlines index posts a matching loss. NYSE Adv/Dec 1691/1480, Nasdaq Adv/Dec 1552/1392

1:25PM: Returning to the red, the S&P leaves the Dow and Nasdaq on gaining ground. With respect to the blue chip average, about two-thirds of its constituents extend gains. Overall, though, gains are modest - and only six exceed 1.0%. Leading the way higher is Alcoa (AA 25.80 +0.63), followed by Intel (INTC 24.36 +0.37) and Caterpillar (CAT 54.23 +0.68). Of the laggards, Exxon Mobil (XOM 56.92 -0.98) posts the worst decline. Losses are similarly modest, with that issue the only one to have lost more than 1.0% at this juncture. NYSE Adv/Dec 1718/1435, Nasdaq Adv/Dec 1581/1347

homestate of CT, you can't get a mortgage without homeowner's insurance. Are the uninsured losses because people didn't have flood insurance or what?

many co will write a mortgage and flood ins isn't needed on a 100 yr flood plain. Ins co won't do flood (it is a separate policy) so that leaves the fed gov as the insurer that you go to. Even with the gov underwriting it is expensive and for what-flood ins. that you are not required to have on the mortgage for a flood that might happen once in 100 yrs. And then there are the ins co. Was the water wind driven by the hurricane (they might have to pay) or was surge (therefore flood and they are off the hook)? In the end, you are paying a lot of premiums and get nothing in exchange for your premiums.

corporate and municipal bonds vs property. :shrug:

Dow 10,586.23 +55.47 (+0.53%)
Nasdaq 2,178.24 +8.81 (+0.41%)
S&P 500 1,222.81 +2.67 (+0.22%)
10-Yr Bond 4.639 -0.18 (-0.39%)

NYSE Volume 1,961,376,000
Nasdaq Volume 1,621,193,000

The market managed to continue its streak, closing the major indices higher and beginning the third consecutive week of gains. Although trading was choppy and left the S&P vacillating around the flat line for most of the session, the 1.8% pullback in crude that accompanied reports that gasoline has dropped $0.48 per gallon over the past month ultimately helped ignite buying action. While the subsequent selling across the Energy complex capped overall advances, the sector's afternoon bounce from its worst levels of the day enabled the broader market to trek higher. Leadership was lackluster over the course of the session, but the solid stances of the Financials (+0.7%) and Technology (+0.5%) sectors served as the strongest sources of support. After hitting three-year lows last Friday, the Treasury market staged a recovery that left it on positive turf and took the 10-year up five ticks and down to a 4.64% yield. Rate-sensitive banks were a particular bright spot, with Citigroup (C 46.50+0.90) leading the way higher after a high-profile investor issued bullish comments on the Dow component's profit prospects. Allstate (ALL 55.77 +0.62) lent additional upside after Bear Stearns upgraded the stock. With respect to Tech, semiconductors' performance and a respectable rise in Microsoft (MSFT 27.01 +0.35) shares, upon reports that the company is the front-runner in the potential buyout of Time Warner's (TWX 17.63 +0.02) AOL, can be credited. Intel's (INTC 24.50 +0.51) jumped 2.0%, and Advanced Micro Devices (AMD 24.89 +0.26), benefiting from Hewlett-Packard's (HPQ 28.73 +0.20) decision to use its chips in new HP blade PCs, contributed further upside. While the corporate and economic fronts were quiet ones, reports of Qualcomm's $2.5 bln share buyback and Yahoo's (YHOO 37.90 +0.3) plans to launch new services with both Google (GOOG 395.03 +4.60) and TiVo (TIVO 5.30+0.18) directed some attention to the sector. Speaking of buybacks, Northrop & Grumman (NOC 55.24 +0.09) and TXU Corp. (TXU 101.74 +7.41) made similar announcements. TXU, for its part, also increased its divided by 43%, announced a 2-for-1 split, and reaffirmed FY05 guidance; soaring shares could not lift the Utilities sector (-0.2%), though, which joined Telecommunications Services (-0.7%) and Energy (-1.6%) in the red. Energy price action prompted further profit taking in the latter sector, and a disappointing Q3 report from pipeline company El Paso (EP 11.31 -0.70) did not help matters. Separately, other corporate news included Guidant's (GDT 57.52 -1.40) lawsuit against Johnson & Johnson (JNJ 61.43 +0.55). A plunge in Guidant shares, the extended result of Johnson & Johnson's assertion that it intends to rescind the $25.4 bln merger agreement to which it had previously agreed, weighed heavily upon the sector, but a reversal in JNJ shares and GDT's halved loss allowed the Healthcare sector to close 0.2% higher.NYSE Adv/Dec 1816/1417, Nasdaq Adv/Dec 1703/1335