STOCK MARKET WATCH, Wednesday 16 November

SUMMARY

The popular indices just concluded their fourth consecutive week of gains, while the McClellan Oscillators are at the top of their range, and they are in the process of completing double tops. In addition, the volatility indices and the put/call ratios are near the bottom of their most recent range. When you put it all together, the odds do favor a short-term pullback to be followed by another leg to the upside.

more...

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

That's why I nicked it and put it on the county party website. :D

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

Last trade 92.32 Change +0.23 (+0.25%)

HOW JAPAN INTERVENES

http://today.reuters.com/PrinterFriendlyPopup.aspx?type=bondsNews&storyID=uri:2005-11-16T081907Z_01_T339684_RTRIDST_0_MARKETS-JAPAN-INTERVENTION-FACTBOX.XML

- The Ministry of Finance (MOF) is authorised to intervene, and the Bank of Japan conducts operations on its behalf.

- Funds needed for intervention come from Japan's Foreign Exchange Fund Special Account (FEFSA).

- In the case of intervention in which a foreign currency is bought and yen sold, the MOF raises yen funds to be sold by issuing financing bills (FBs).

- In the case of yen-buying intervention, the BOJ sells foreign currencies from the FEFSA. Japan had foreign reserves of $841.792 billion as of the end of October, the largest in the world. The bulk of these holdings is believed to be in dollars.

- Foreign exchange intervention is usually conducted in the Tokyo market, but if it is seen necessary to intervene in U.S. or European trading hours the BOJ will either do so itself or MOF will ask foreign monetary authorities to intervene on its behalf.

...lots more...

Forex - Dollar remains firm vs yen in Asian trade but off overnight US highs

http://www.forextv.com/FT/AFX/ShowStory.jsp?seq=9774

SINGAPORE (AFX) - The US dollar remained firm against the yen in late trade here but it was off the 27-month high of 119.42 yen touched in the US last night, with some profit taking capping the topside, dealers said.

They noted that some players were pocketing profits ahead of tonight's release of the US Treasury International Capital Systems (TICS) September portfolio flows data.

The US unit remains supported on expectations for continued US rate hikes, aided by Federal Reserve Chair nominee Ben Bernanke's overnight remarks to a Senate Committee as well as some solid US economic data.

A call from Japanese Prime Minister Junichiro Koizumi on Monday for the Bank of Japan (BoJ) to continue its super loose monetary policy is also being taken as a cue that the interest rate differential between US and Japanese assets will remain wide for some time.

The dollar eased back from its New York high as some players adopted a wary stance ahead of the TICs release to ensure that the data shows that foreign demand for US assets remains sufficient to fund the mountainous US current account deficit.

...more...

Tomorrow's Economic Releases: Will TIC Data Hold Up After September's Hurricanes?

http://www.dailyfx.com/index.php?option=com_content&task=view&id=4869&Itemid=39

U.S. Consumer Price Index (OCT) (13:30 GMT, 8:30 EST)
Consensus: 0.0% (MoM); 4.1% (YoY)
Previous: 1.2% (MoM); 4.7% (YoY)

Outlook: Consumer prices in the US are expected to have remained unchanged in October. This estimation is based heavily on the fact that gasoline prices have seen a 25 percent drop from their all-time highs following Hurricanes Katrina and Rita. A mild winter this year may relieve the U.S. economy of the rapid inflation it has seen in recent months at the hands of soaring energy prices. Although energy prices may be in check for the time being, it is important to note that core inflation in October is expected to increase to a rate of 0.2 percent, which indicates that energy inflation may have already seeped through to other sectors. Large goods and service providers such as Deere farming equipment, FedEx shipping, and Carnival cruise lines have forecasted significant price increases for the coming year ranging from 4 to 16 percent. While people are experiencing relief at the pump on their energy bills, it is possible that consumers will continue to pay for previously high oil prices through other means. As heavy spending continues, this threat of core inflation is becoming more problematic and is likely to encourage the Federal Reserve to maintain its tight monetary policy.

Previous: In September, consumer prices in the United States increased at a rate of 1.2 percent from the previous month. Economists had expected the rate of price inflation to register at 0.9 percent. Instead, the CPI made its biggest jump since March 1980. Unsurprisingly, the jump in consumer prices resulted largely from a surge in energy prices following the Gulf Coast hurricanes, which crippled many critical refineries and pipelines, limiting the supply of refined crude oil. The limited energy supply forced consumers to pay 12 percent more for gasoline and other energy products. Core inflation, which excludes volatile energy and food costs, came in less than expected as it made a gain of only 0.1 percent. Much of the inflation in the core index resulted from higher prices in the service sector, which accounts for 60 percent of the total index. September’s energy-led inflation weighed in on consumer confidence as the University of Michigan’s confidence gauge fell to its lowest point in 13 years.

US Net Foreign Security Purchases (SEP) (14:00 GMT, 9:00 EST)
Consensus: $70.0B
Previous: $91.3B

Outlook: The latest Bloomberg median estimate for September’s TIC data is $70.0 billion. This figure would, again, be above the average of $66.3 billion in the 12 months up to August. Faith in the US economy has been strong with third quarter GDP growing at a rate of 3.8 percent. Meanwhile, the Fed’s overnight lending rate has been rising consecutively in the past twelve FOMC meetings and is forecast to surpass the Bank of England’s rate in the next few months. Furthermore, the US fiscal climate is also in good health as the government budget deficit fell to $318.6 billion in fiscal year 2005, ending in September, from$412.8 billion in fiscal year 2004. However, despite these positive figures, keep in mind that the transactions included in this report all occurred in September, at the height of uncertainty after the recent hurricanes. Interestingly enough, less than a month ago, some analysts had been claiming that net foreign security purchases would slow to around $50 billion in the coming months due to the extra risk from the hurricanes’ effects and higher energy prices.

...more...

http://www.321gold.com/editorials/fekete/fekete111605.html

Introduction

In 1999 The New York Times ran an obituary of the "barbarous relic" from the pen of Floyd Norris under the title "Greenspan Has Become the New American Gold Standard" (op-ed page, International Herald Tribune, May 5, 1999). It alleged that the process of removing the glitter from gold has been a gradual but inexorable one and the world was more than happy to accept the greenback backed by Greenspan (no pun intended), just as earlier it had accepted the yellowback backed by the precious yellow. The earmark of the new millennium is people's unshakeable faith in the dollar. My rejoinder suggesting that "rumors about the demise of gold were grossly exaggerated", written over six years ago, is reproduced below. It goes without saying that The New York Times refused to publish it. The occasion for publishing it now is the impending historic changeover from the Greenspan standard to the Bernanke standard.

Green cheese factory on the Potomac

There is nothing new about premature obituaries for the gold standard. In 1936 John Maynard Keynes noted in the book that has made his name world-famous (The General Theory of Employment, Interest, and Money; Macmillan, 1967, p 235) that people habitually scramble for gold, which is to say that they crave for the moon. But the government cannot let them have the moon. A good central banker, by definition, is one who can persuade people that green cheese (sic!) is practically the same thing, and will go on to parcel it up and dish it out for their delight and satisfaction. Nomen est omen: Greenspan was destined to be the first (and probably the last) green cheese monger on the Potomac. Mr.Greenspan certainly understands gold and the reasons why people habitually scramble for it. He also understands why the government wants people to take green cheese for gold. It is not my intention to ridicule the deep-rooted yearning in the human psyche for Santa Claus. But to me, instead of cutting a happy figure of Santa Claus, Mr.Greenspan cuts the sorry figure of the Sorcerer's Apprentice. He learned the magic word how to start green cheese production; his tragedy is that he has forgotten to learn the other magic word how to stop it when enough is enough. Apart from that, the problem is that too much green cheese is not good for you. It may cause diarrhea (inflation) and constipation (deflation), although it is impossible to say in which order.

Competition of gold to irredeemable promises is too telling for comfort

According to Norris, gold's reputation as a store of value has been eroded while its price fell by more than two-thirds from $873 in 1980 to $251 in 1999, in contrast with the Dow which at the same time increased more than 12-fold. This is not a new story either. Gold's reputation as a store of value had been eroded many times before, to wit, during such historical episodes as the Tulipomania, the South Seas Bubble, the Mississippi Bubble and, more recently, during the Roaring Twenties of the Twentieth Century.

Norris informs his readers that the IMF is to sell "surplus" gold, a move applauded (ordered?) by the U.S. Treasury, to help finance the laudable program to forgive debts owed by the very poor countries. He explains that money from gold sales is to be invested in U.S. Treasury securities and the income from the investment will pay off the loans. He concludes that "gold, which does not pay interest, is a lousy investment".

Here Norris betrays how badly misinformed he is. As every central banker and gold miner knows, gold can earn interest even in the Twenty-First Century, provided that you can find trustworthy borrowers. It is true that the interest rate on gold loans (euphemistically called the "lease rate") is but a small fraction of what the U.S. Treasury is forced to pay on its debt. Yet this does not make gold a lousy investment. Quite the contrary, it is this very fact that makes gold such a superb investment. Financial writers ought to know that yield varies inversely with quality. By Norris's logic a government bond is a lousy investment in comparison with a junk bond because the yield on it is lower. The reason why the U.S. government is so anxious to push gold out of the international monetary system is that the competition gold offers to irredeemable promises is too telling for comfort. The fact remains that when a central bank or the IMF sells gold, it is replacing the best kind of monetary asset, one that is nobody's liability, with the worst kind: the irredeemable promises of devaluation-happy governments. In selling gold central banks and the IMF make their balance sheet weaker, not stronger.

more...

be reading the same articles and reports as the rest of the world. Guess he hasn't bothered to pay atttention to the IMF or their latest idea of Asia securitizing their reserves.

Yep, real insightful when you take his official position into account.

http://www.house.gov/paul/tst/tst2005/tst111405.htm

snip>

Remember, this is a Congress that has increased spending by 33% since President Bush took office in 2001. And we're not talking about national defense or anti-terrorism spending. We're talking about a one-third increase in garden variety domestic spending. This is also a Congress that passed the 2003 Medicare prescription drug bill, the single largest increase in entitlement spending since the Great Society programs of the 1960s. So there's not much credibility to be found on Capitol Hill when it comes to reducing the federal budget.

snip>

The budget reconciliation bill reduces spending by a mere $5.6 billion in a 2006 budget of nearly $2.5 trillion. This represents just a fraction of one percent, a laughable amount. Does anyone seriously believe the federal budget cannot be trimmed more than this? Consider that the federal budget was only about $1 trillion in 1990, a mere 15 years ago- and government was far too large and too intrusive then. After all the talk about deficit spending, this is the best a Republican congress and Republican president can come up with? What a farce.

Projections of big savings beyond 2006 because of this bill are pure fiction. Congress has no authority to pass budgets or appropriate money beyond the next fiscal year. Future Congresses will not pay one whit of attention to this bill, and its hopeful predictions will be forgotten.

Furthermore, we need to get our budget cutting priorities in order. Why are we cutting domestic programs while we continue to spend billions on infrastructure in Iraq? In just the past two weeks Congress approved a $21 billion foreign aid bill and a $130 million scheme to provide water for developing nations. Why in the world aren't these boondoggles cut first?

The spending culture in Washington creates an attitude that government can solve every problem both at home and abroad simply by funding another program. But we've reached a tipping point, with $8 trillion in debt and looming Social Security and Medicare crises. Government spending has become a national security issue, because unless Congress stops the bleeding the resulting economic downturn will cause us more harm than any terrorist group could ever hope to cause. And we're doing it to ourselves, from within.


Why, that would be yet another win for OBL, wouldn't it? What were his goals and objectives again?

1) US forces outta Saudi Arabia ---check
2) Saddam outta power ---check
3) Create a Palestinian state ---check

4) US politically and economically reduced to a mere shadow of herself ---we're workin' on it.


Score to date:

3 for OBL
0, nada, nil, for IdiotSon.

He's a nut sometime....but he's OUR nut. A regular Tx pecan. For a libertarian, he sure has been in office a while. He looks after his constituents (probably one of the most helpful Congressmen I have ever come across).

8:30am 11/16/05 U.S. SEPT. INVENTORIES-SALES RATIO FALLS TO RECORD LOW 1.25

8:30am 11/16/05 U.S. SEPT. BUSINESS SALES UP 0.6%

8:30am 11/16/05 U.S. SEPT. RETAIL INVENTORIES UP 0.9%

8:30am 11/16/05 U.S. SEPT. BUSINESS INVENTORIES UP 0.5% VS 0.3% EXPECTED

8:30am 11/16/05 U.S. OCT. REAL WEEKLY WAGES UP 0.4%

8:30am 11/16/05 U.S. OCT. CPI HOUSING PRICES UP 0.9% ON HOTELS

8:30am 11/16/05 U.S. OCT. CPI NEW CAR PRICES UP 0.5%

8:30am 11/16/05 U.S. OCT. CPI MEDICAL PRICES UP 0.5%

8:30am 11/16/05 U.S. OCT. CPI ENERGY PRICES FALL 0.2%

8:30am 11/16/05 U.S. CORE CPI UP 2.1% IN PAST YEAR

8:30am 11/16/05 U.S. CPI UP 4.3% IN PAST YEAR

8:30am 11/16/05 U.S. OCT. CORE CPI UP 0.2% AS EXPECTED

8:30am 11/16/05 U.S. OCT. CONSUMER PRICE INDEX UP 0.2% VS. 0.1% EXPECTED

http://www.marketwatch.com/news/print_story.asp?print=1&guid={01098557-87FB-4C0F-845B-1DEA26FBFDA3}&siteid=mktw

excerpt:

In the October CPI, housing prices were main source of price pressure, rising 0.9%, the most since January 2001. Hotel and motel rates jumped 3.5%, while residential shelter costs increased 0.5%.

Housing prices would have risen even more, except for a statistical fluke stemming from the way the government calculates homeownership costs by using rents of comparable houses.

Because many houses are rented with utilities included, the rental portion of the monthly bill is deemed to fall when utility prices rise.

Medical care prices rose 0.5% in October, including a 0.8% rise in hospital services.

Food prices rose 0.3% on higher fruit and vegetable prices.

Apparel prices fell 0.4% and are now down 1.1% in the past year.

Transportation costs fell 1.3% on the drop in fuels. New car prices increased 0.5% as the new model year was introduced with fewer price incentives.

...more at link...

:eyes:

:donut: Oh, that explains the the couple of pennies that fell out of my pants pocket last night. Thank goodness I get coffee at work, I couldn't afford it on the 'surplus'. I can't believe what I am hearing in Congress (Senate)----have they finally noticed that big * deficit? The moderate GOP are slipping over the aisle and voting with DEM's. Hope these alliances hold and we can steer to the center at least.
They are really talking up the "early" Christmas season this year. Wal-Mart is doing better than Target. I saw a lot of Christmas stuff out but not many takers. I did see a big line in the Wal-Mart lay away departments though, which means they will do well this year. For those of you that don't live on the margins or use charge cards for Christmas, Wal-Mart is one of the few chain stores that have a reasonable lay away policy (no fee, put in in lay away now and don't need to get it out until 12/24). This convenience is why they have a strong base among the poor and lower middle class (aside for the lower prices). I also noticed they really must do heavy duty marketing research prior to building. In my neighborhood, we have a high percentage of West Africans, Hispanics, Blacks, Asians, Indians and Pakistanis with a smattering of Anglos. The new Wal-Mart here has the largest international food section I have ever seen in a Wal-Mart and one which our grocery stores cannot compete with. Everything from pre packaged Brianyi to wasabi peas. I was amazed.

Happy Hunting and watch out for the bears.

9:00am 11/16/05 CAPITAL FLOWS TO U.S. RISE TO RECORD $101.9 BLN IN SEPTEMBER

More from the Pirates of the Carribean?

adding link and blurb on edit:

http://www.marketwatch.com/news/newsfinder/pulseone.asp?dateid=38672.3752976389-850836294&siteID=mktw&scid=0&doctype=806&

WASHINGTON (MarketWatch) - Capital flows into the United States hit a record high of $101.9 billion in September as private investors bought large amounts of U.S. securities. The rise was unexpected. Some analysts were forecasting the number would drop after rising steadily for the past five months. Net foreign purchases of long-term domestic securities were $118.1 billion, $4.3 billion of which were net purchases by foreign official institutions and $113.8 billion of which were net purchases by private investors. U.S. residents, meanwhile, bought a net $16.2 billion in foreign-issued securities.

Looks like interest from foreign central banks is almost nil.

10:30am 11/16/05 U.S. CRUDE STKS DOWN 2.2 MLN BRLS LAST WK: ENERGY DEPT

10:30am 11/16/05 U.S. GASOLINE STKS DOWN 900,000 BRLS: ENERGY DEPT

10:30am 11/16/05 U.S. DISTILLATE STKS UP 2.6 MLN BRLS: ENERGY DEPT

"a brighter outlook for the world economy - particularly for the USA "

The US economy is getting worse by the minute, not brighter.

Glad to have you here and at the SMW! :hi:

:toast:

I'm glad you dropped by.

Ozymandius :hi:

VIENNA, Austria - Oil traded below $57 a barrel Wednesday after slipping to a four-month low in the previous session on expectations of growing U.S. oil inventories.

Analysts said that continued warm weather and a move into other markets by investors also was depressing prices.

But an OPEC report suggested demand would soon increase, possibly driving prices upward.

In its monthly oil report, the Organization of Petroleum Exporting Countries said the world's appetite for crude would grow next year to 84.8 million barrels a day — a slight increase over previous forecasts.

more

10:06am 11/16/05 DEC CRUDE FALLS 8C TO $56.90/BRL AHEAD OF SUPPLY DATA

10:06am 11/16/05 DEC NATURAL GAS UP 28.7C, OR 2.5%, AT $11.85/MLN BTUS

10:01am 11/16/05 U.S. OCT OIL-PRODUCT DELIVERIES DOWN 8% VS. YR AGO: API

10:01am 11/16/05 HIGH OIL PRICES PROMPTS OCT CUTS IN OIL-PRODUCT DEMAND: API

10:01am 11/16/05 OCT REFINERY UTILIZATION AT 79.7%, LOWEST SINCE 1987: API

10:01am 11/16/05 OCT GASOLINE IMPORTS AT RECORD 1.3 MLN BRLS/DAY: API

10:31am 11/16/05 DEC CRUDE CLIMBS 32C TO $57.30/BRL ON FALL IN U.S. SUPPLY

11:38am 11/16/05 DEC CRUDE UP 52C, OR 0.9%, AT $57.50/BRL IN NY

11:38am 11/16/05 DEC HEATING OIL UP 2.1% AT $1.7175/GAL

11:38am 11/16/05 DEC NATURAL GAS CLIMBS 33.7C, OR 2.9%, TO $11.90/MLN BTUS

12:31pm 11/16/05 DEC NATURAL GAS UP 58.7C AT OVER 2-WK HIGH OF $12.15/MLN BTU

1:42pm 11/16/05 DEC CRUDE CLIMBS TO SESSION HIGH, UP $1.22 AT $58.20/BRL

1:42pm 11/16/05 DEC NATURAL GAS TO 2-WK HIGH OF $12.24/MLN BTUS, UP 5.7%

3:00pm 11/16/05 DEC NATURAL GAS UP 6.6%, ENDS AT 2-WK HIGH OF $12.33/MLN BTU

http://www.marketwatch.com/news/newsfinder/pulseone.asp?dateid=38672.6286490394-850896109&siteID=mktw&scid=0&doctype=806&

SAN FRANCISCO (MarketWatch) -- December crude closed at $57.88 a barrel in New York, up 90 cents at its highest level in a week, supported by the first fall in U.S. crude supplies in six weeks. December heating oil added 2.9% to close at $1.7292 a gallon and December unleaded gas tacked on 1.8% to end at $1.483 a gallon. December natural gas rallied 6.6% to close at a more than two-week high of $12.329 per million British thermal units.

Pershing is just number crunching, which, I'm totally convinced, is part of what has been driving the economic mess the country has been pursuing for the past 25 years.

Ever since the Reagan era, MBA's have been taught, in the "best and brightest" institutions, how to improve the "bottom line". The problem is, the "bottom line" is something that happens on PAPER. On the ground, in the real world, there are consequences in the long run that don't jive with what is also HEALTHY for a business. Number crunchers think that, as long as the "owners" (stockholders) go away with their pockets full of cash, the "business" has done well. However, any entrepreneur will tell you that FOR A REAL, SUCCESSFUL BUSINESS, sometimes the "owner" is the one that works the hardest, longest hours, and is the last one to get paid. At least, ALL the successful, entrepreneurial business owners I've ever known have seen this as the case.

That's the difference between growing a BUSINESS, and growing a cash windfall. These days, companies don't give a damn about the actual BUSINESS. They only appear to care about the BUSINESS they're in for the benefit of the slaves that work for them and the commercials they can write to sell their products/services. It's ONLY about money, and how to grow money by jotting down figures on paper. The BUSINESS behind that money is nothing but a cheap whore to the owners, and a way of getting what they want.

It's that old "Greed is Good" meme that republicans have (successfully) pushed so hard, and that leaves nothing of substance behind them.

:kick::kick::kick:

On one hand, we are told buy and hold for the longterm and yet, all these managers and investors sell off if a stock has a bad quarter (even for good reasons). Or worse yet, instead of competing, these large incompetent companies go into debt to buy up competition or worse, diversify into an area in which they have no expertise. The numskulls on WS sit around cheer this nonsense. This is why I think our economy is so screwed. We produce nothing but profit on paper.

Nov. 16 (Bloomberg) -- China's government said it will sell another $80 million of copper next week to damp price gains amid speculation one of its traders made losing bets on the commodity.

The country's stockpiling agency has already sold more than $240 million of copper this month to ease a domestic shortage. The agency may also be selling metal to help push down the international market and cover the trader's wrong-way bets, say analysts including Angus MacMillan from Bache Financial in London.


snip..

Stockpiled Metal

Consumers have turned to stockpiled metal to fill this year's deficit. Inventory tracked by commodity exchanges in London, New York and Shanghai has plunged 83 percent in the past two years to 142,352 tons, equal to three days' global usage.

The Chinese government may not deliver enough metal to cool copper prices, some analysts said, prompting traders to believe prices will rise further as the state reserve bureau buys copper to cover its short positions. A short position occurs when a trader or investor borrows a security or commodity to sell it on the expectation the price will decline, hoping to buy it back later at a cheaper price. A long position is the inverse.

``In the past, sales haven't been publicized,'' said Robin Bhar, an analyst in London at UBS AG, in a Nov. 15 interview. ``They are trying to talk the market down.''



http://www.bloomberg.com/apps/news?pid=10000086&sid=au4iJBdW.uuo&refer=latin_america

District home prices have risen so rapidly that more than 80 percent of the properties for sale last year were financially out of reach for the average city household, according to a report by Urban Institute researchers released yesterday.

Soaring prices since the late 1990s have reshaped the profile of the typical home buyer, who is increasingly likely to be white and well off in a market where the average home sold for $450,000 last year, the report said. The cost of ownership rose in every part of the city, the report said, with sharper increases in modest neighborhoods such as Anacostia than wealthier ones such as Cleveland Park.

snip..

Though home sales have slowed in recent weeks, the report said it is unlikely that home prices will drop enough to enable many more lower- or moderate-income families to buy. More likely, it said, would be a stagnation that would soften high-end real estate prices for a while

snip..

But the report also said the rise in prices is a warning sign that less-affluent people are being pushed out and is one more indication of a growing gap between the city's haves and have-nots.

Six in 10 city home buyers had incomes of $75,000 or more in 2003, the report said. In 2000, just under half did. At the other end of the income scale, about one in four buyers had incomes of $50,000 or less in 2000. By 2003, one in six did.

The share of loans made to racial and ethnic minority buyers also declined in the majority-black city. Minority purchasers made up 37 percent of D.C. home buyers in 2003, compared with 43 percent in 2000, the report said, citing home mortgage data.


more..



http://www.washingtonpost.com/wp-dyn/content/article/2005/11/15/AR2005111500835.html


The homes aren't out off reach.... just take out a 1 year arm, interest only.

:sarcasm:

8:36am 11/16/05 DEC GOLD UP $6 AT $475 AN OUNCE

9:43am 11/16/05 DEC GOLD AT 3-WK HIGH, UP $6.10 AT $475.10/OZ IN NY

9:43am 11/16/05 DEC SILVER UP 10.8C AT $7.895/OZ, HIGHEST SINCE OCT. 17

9:43am 11/16/05 JAN PLATINUM AT FRESH 26-YR HIGH, UP $9.60 AT $984.50/OZ

http://www.marketwatch.com/news/story.asp?siteid=bigcharts&dist=news&guid=%7B0151C9AE%2D32E6%2D4DDB%2D9882%2D321F65D3EB07%7D

SAN FRANCISCO (MarketWatch) -- Gold futures climbed over 1% Wednesday to top $476 an ounce for the first time in three weeks, silver price tapped to a one-month high at $8 an ounce and platinum futures rallied to a fresh 26-year high.

"Gold is up on foreign currency weakness," said John Person, president of National Futures Advisory Service.

"European buying has been strong as doubts are increasing over economic stability, inflation expectations are mounting," he said, pointing out that Bundesbank President Alex Webber believes "inflation in Germany has a potential to exceed expectations," he said.

Tom Hartmann, an analyst at Altavest Worldwide Trading said the metals likely found support from statements made by a few central banks, particularly South Africa and Russia.

"They hinted rather explicitly about scooping up more gold reserves," he said. "Early 2005 was filled with reports of central banks selling gold, but we've seen bank reserves in gold fall to about 9%, while historically its been as high as 15%, meaning there's some room for buying."

more...

11:00am 11/16/05 DEC GOLD TAPS HIGH OF $479/OZ, HIGHEST SINCE OCT. 12

11:00am 11/16/05 DEC GOLD LAST AT $477.60/OZ, UP $8.60, OR 1.8%

11:00am 11/16/05 DEC SILVER TOPS $8/OZ FOR FIRST TIME SINCE DEC 2004

1:49pm 11/16/05 DEC GOLD UP $10.10 TO CLOSE AT ONE-MONTH HIGH OF $479.10/OZ

1:43pm 11/16/05 DEC SILVER UP 21.5C TO END AT 11-MO HIGH OF $8.002/OZ

snip

-- A lot has been made of the cryptic Federal Reserve press release that simply read, "On March 23, 2006, the Board of Governors of the Federal Reserve System will cease publication of the M3 monetary aggregate. The Board will also cease publishing the following components: large-denomination time deposits, repurchase agreements (RPs), and Eurodollars. The Board will continue to publish institutional money market mutual funds as a memorandum item in this release."

I am not, as you would expect, all that upset. For one thing, they are still going to report the components of M3 money supply in the quarterly Z1 report (so they say). And for another, the stuff that make M3 out of M2 is the addition of very large time-deposits and other things that are, in reality, very illiquid. So, I can understand them making the argument that something so illiquid is NOT part of the money supply. It is, instead, an asset, not money. So not reporting M3 is, arguably, a non-event, since they are still reporting M1 and M2.

But, then again, the essential paranoid Mogambo (EPM) asks, "Why now?" And I SURE don't like the non-reporting of repurchase agreements, which ARE money by the very fact that they are repos! That is the whole freaking point of repos! So maybe I was wrong, because now I really AM starting to get steamed up about this non-reporting crap!

Robert McHugh is not amused at my naiveté, and says, "Why? It's simple, really. So that the Plunge Protection Team can hide its market manipulative, equity buying activities. You see, one of the key differences between M-2 (which it appears they will report) and M-3, is repurchase agreements."

more

http://worldnewstrust.org/modules/AMS/article.php?storyid=1674

am glad to see the Mogambo understanding the M3 and the reporting of the RPs that comprise the Printing Press Report -

Have I said how much I hate this secretive mal-administration lately?

(edited cuz ah kant spull)

He, and the group of analysts he follows, have helped me gain an understanding of what's going on with our economy.

9:05AM: S&P futures vs fair value: +3.0. Nasdaq futures vs fair value: +4.5. The cash market is now poised to open higher this morning, as traders digest the recently released total CPI read that showed prices paid by U.S. consumers in October rose at the slowest pace in four months. Crude oil continues to trend lower today, off about 0.3% and keeping below $57 per barrel. Some positive news on the corporate front also lends some bullishness: DR Horton (DHI), Tyco (TYC), Talbots (TLB), and Big Lots (BLI) are amongst the upside earnings reporters; Murphy Oil (MUR) and Agilent (A) received analyst upgrades; and Labor Ready (LRW) - one of Briefing.com's portfolio picks - issued reassuring Q4, FY05, and FY06 guidance.

8:34AM: S&P futures vs fair value: +1.1. Nasdaq futures vs fair value: +3.0. Recently crossing the wires was the October CPI report. The total rate checked in at 0.2%, slightly above the flat forecast but well below the 1.2% rise in September. Matching expectations, the core rate rose 0.2% versus the 0.1% prior read. The reaction within the equity market has been muted; futures trade still suggests a flat to slightly higher start for stocks. Treasuries, meanwhile, have slightly improved - the 10-year is now up five ticks and down to a 4.54% yield.

Hiya Ozy!

:hi:

10:03
Dow 10,699.25 +12.81 (+0.12%)
Nasdaq 2,185.91 -0.83 (-0.04%)
S&P 500 1,230.07 +1.06 (+0.09%)
10-Yr Bond 45.18 -0.39 (-0.86%)
NYSE Volume 263,927,000
Nasdaq Volume 244,051,000

9:40AM: As presaged by futures trade, the stock market started the session on positive turf. While the 0.2% rise in core CPI (Oct.) was slightly above the +0.1% registered over the prior five months, it was in-line with economists' forecast and accompanied the +0.2% total CPI rate (consensus +0.2%) that reflected prices paid by consumers rose at the slowest pace in four months. Briefing.com believes that the core rate will continue to trend below a 2% annual rate, and that declining energy prices will flow into the Nov. and Dec. data. To that end, crude is holding below $57 per barrel this morning, ahead of the latest stats on crude inventory from the EIA. Positive news on the corporate front contributes to early optimism, as DR Horton (DHI), Tyco (TYC), and Talbot (TLB) each beat earnings estimates.

Dow 10,683.80 -2.64 (-0.02%)
Nasdaq 2,182.71 -4.03 (-0.18%)
S&P 500 1,228.40 -0.61 (-0.05%)
10-Yr Bond 4.523 -0.34 (-0.75%)

NYSE Volume 485,031,000
Nasdaq Volume 435,545,000

11:06am 11/16/05 CAPITAL ONE COMPLETES $4.9B ACQUISITION OF HIBERNIA

Capital One completes $4.9B acquisition of Hibernia

http://www.marketwatch.com/news/newsfinder/pulseone.asp?dateid=38672.4671787847-850857229&siteID=mktw&scid=0&doctype=806&

SAN FRANCISCO (MarketWatch) -- Capital One Financial (COF) on Wednesday completed its $4.9 billion cash-and-stock acquisition of Hibernia Corp. (HIB) . Hibernia National Bank has subsequently become a subsidiary of Capital One.

Dow 10,670.36 -16.08 (-0.15%)
Nasdaq 2,177.34 -9.40 (-0.43%)
S&P 500 1,227.87 -1.14 (-0.09%)
10-Yr Bond 4.518 -0.39 (-0.86%)

NYSE Volume 659,536,000
Nasdaq Volume 575,912,000

11:00AM: Blue chips reach above the unchanged mark while the Nasdaq sinks lower. Blue Coat Systems (BCSI) serves as one of the Composite's top 25 laggards, extending a 16% decline following soft revenues for its fiscal Q2 reported last night, and upon downside sales guidance for the current quarter. While the Tech sector maintains a modest +0.2%, declines in Oracle and Intel further cap the Nasdaq. With respect to Oracle, the company reportedly bought Thor Technologies and OctetString, but has not disclosed the terms of the deals. NYSE Adv/Dec 1208/1777, Nasdaq Adv/Dec 937/1753

10:35AM: Giving up opening gains, the major averages have plunged into the red. The EIA recently released the latest energy inventory data; unexpected drawdowns in crude and gasoline supply overshadow the effect of a better than expected build in distillates. Crude futures have reversed course, rising 0.7% and hurdling the $57 per barrel mark. At the same time, the Energy sector (+0.8%) has caught a bid and now leads the session. NYSE Adv/Dec 1172/1752, Nasdaq Adv/Dec 956/1659

Dow 10,682.68 -3.76 (-0.04%)
Nasdaq 2,185.04 -1.70 (-0.08%)
S&P 500 1,230.12 +1.11 (+0.09%)
10-Yr Bond 4.492 -0.65 (-1.43%)

NYSE Volume 1,045,165,000
Nasdaq Volume 857,751,000

12:00PM : Sent south by unexpected drawdowns in crude oil and gasoline supply, the market headed lower after American Express (AXP 49.44 -1.49) asserted that Wall Street's Q4 earnings expectations are "far too high." Subsequent to the EIA's latest report, crude futures rebounded and have directed buyers back to the Energy sector; its 1.4% gain leads the session, and has helped pull the Dow and S&P back to higher ground. Currently having the greatest effect upon the broader market, however, is widespread selling within Financials (-0.7%). Along with the AXP effect and despite a strong Treasury market, the sector has sunk as traders are perhaps locking in some of the 10.8% gain the rate-sensitive sector has registered over recent weeks. With respect to bonds, interpretation of the morning's CPI report and better than expected net foreign purchases has sent the benchmark 10-year up 17 ticks and knocked its yield to 4.49%. While core CPI rose 0.2% in October, above the expected flat read and breaking the six month trend of benign 0.1% increases, the market perhaps acknowledges that the slight uptick is not cause for concern at this juncture. Total CPI similarly rose 0.2%, in-line with economists' estimates and reflecting the slowest rise in consumer prices in four months. Joining Financials in the red are Consumer Discretionary (-0.1%), Materials (-0.03%), and Healthcare (-0.3%). Abbot Labs (ABT 39.91 -1.56), which has fallen nearly 4% after disclosing results of a study that did not meet its primary endpoint, is the latter sector's sorest spot, but selling there is similarly broad based. Standing solid with Energy, meanwhile, are Industrials (+0.6%), Telecom (+0.3%), Utilities (+0.8%), and Technology (0.4%). Yahoo (YHOO 39.37 +1.72) has surged about 5% after the Wall Street Journal discussed solid advertising sales, and price increases, at Yahoo, AOL, and MSN. Its rise, though, is not enough to lift the Nasdaq above the flat line. NYSE Adv/Dec 1324/1800, Nasdaq Adv/Dec 993/1809

11:30AM : Following American Express' (AXP 48.85 -2.08) announcement that Wall Street's expectations for 25% EPS growth in Q4 are "far too high," the stock has dropped over 4% and pushes both the Dow and Financial sector further south. Also exerting particular pressure within the market's most influential sector are banks and brokers, but selling is wide spread and leaves almost 90% of the S&P's financial issues posting losses. Aside from the AXP warning, profit-taking is perhaps to blame, as the sector has jumped over 10% in recent weeks. Briefing.com has maintained a Market Weight rating on Financials since April of 2004, but acknowledges that pockets of strength can be found in REITs and insurers. To that end, Aon (AOC 36.93 +1.16) stands as the sector's brightest spot today, enjoying follow through buying interest after asserting yesterday that it's considering a sale of its warranty, credit and property & casualty businesses.NYSE Adv/Dec 1177/1875, Nasdaq Adv/Dec 842/1929

and do right by their workers, I have a slightly used lottery ticket I'll sell you. I can't believe they fell for that......oh wait, these are the same knuckle heads that believed Bush's linking SH to al Quida and the WMD.:eyes: :tinfoilhat:

Mental note to self....check price on cat food co stocks...good growth potential. Also cardboard box manufacturer.

Dow 10,666.92 -19.52 (-0.18%)
Nasdaq 2,181.90 -4.84 (-0.22%)
S&P 500 1,228.25 -0.76 (-0.06%)
10-Yr Bond 4.494 -0.63 (-1.38%)

NYSE Volume 1,132,936,000
Nasdaq Volume 927,864,000

12:30PM: A halving of Financials' loss has allowed the indices to inch upwards. The 0.4% decline it still extends, however, pairs with a matching loss in Healthcare to stunt an overall advance. Conversely, a 1.6% rise in the price of crude ($58.00 per barrel) is Energy's (+1.7%) gain. Exxon Mobil (XOM 57.08 +0.65) trails only Caterpillar (CAT 57.21 +1.31) in leading the Dow, but extended selling in General Motors (GM 21.60 -1.01), along with the losses levied by 12 other components, keep the average in the red.NYSE Adv/Dec 1476/1672, Nasdaq Adv/Dec 1071/1774

Dow 10,666.05 -20.39 (-0.19%)
Nasdaq 2,181.69 -5.05 (-0.23%)
S&P 500 1,228.35 -0.66 (-0.05%)
10-Yr Bond 44.90 -0.67 (-1.47%)
NYSE Volume 1,198,012,000
Nasdaq Volume 979,179,000

1:00PM: Flat line vacillation persists, leaving the Dow and Nasdaq trending lower and the S&P hanging on to a small gain. Treasuries continue to demonstrate strength today, building upon yesterday's performance and sending the benchmark 10-year note to its lowest yield this month. Particularly helping that market was a better than expected net foreign purchases report that showed foreign demand for U.S. assets remains robust. Specifically, foreign purchases rose $101.9 billion versus the expected $91.3 billion increase in September. Presently, the 10-year has notched 16 ticks and yields 4.49%. At the long end of the curve, 30-years (+31/32) offer 4.69%. NYSE Adv/Dec 1498/1695, Nasdaq Adv/Dec 1077/1804

2:22pm 11/16/05 GENERAL MOTORS SHARES PLUNGE TO 18-YEAR LOW AT $20.90

Ya think?



http://today.reuters.com/PrinterFriendlyPopup.aspx?type=bondsNews&storyID=uri:2005-11-16T204658Z_01_N1670796_RTRIDST_0_AUTOS-GM.XML

DETROIT, Nov 16 (Reuters) - As General Motors Corp. <GM.N> prepares to turn its ailing business around by cutting jobs, plants and payrolls, the pressure on its chief executive is mounting amid concerns that nothing short of a change at the top will help the world's largest automaker.

Investors and analysts are losing confidence in GM's Chairman and Chief Executive Richard Wagoner, who took the helm of the the world's largest auto maker in 2000 and took control of daily operations at its struggling North American unit in April 2005.

This year alone, the car maker has lost almost $4 billion, shocked investors with earnings restatements, seen its stock plunge to new lows, come under investigation by federal regulators and lost significant U.S. market share to foreign rivals.

"When Wagoner took over for GM North America, he essentially implied that it was all on his shoulders now," T. Rowe Price analyst Brian Ropp said. "By taking on that role, he took full responsibility for North America, where the key issues are. And things have only gotten worse."

<snip>

Independent analyst Maryann Keller said Wagoner needs to communicate to everybody that there is a crisis in the company.

"It seems like the rest of the world has figured it out. When are they going to figure it out? When are they going to declare a crisis and start running a company as though it is in a crisis?" Keller said.

...more...

I hope they go out of business.

:kick:

Nothing.

http://www.marketwatch.com/news/story.asp?guid=%7BC7C25B20%2D0F50%2D4BEF%2D8BA2%2DC5B3A952FC3F%7D&siteid=mktw

SAN FRANCISCO (MarketWatch) -- Safety problems related to fuel tanks on three models are prompting Ford Motor Co. to recall some of its popular new vehicles.

The models -- the Ford Freestyle crossover and Ford Five Hundred and Mercury Montego sedans -- are among the most important of Ford's new product lineup. Ford's total sales in October fell 26%, marked by a big decline in trucks, but sales of the Freestyle, Five Hundred and Montego all rose last month.

There are about 123,206 of these 2005-model vehicles affected by the recall, according to announcements on the National Highway Traffic Safety Administration's Web site.

Straps used to hold the vehicles' fuel tanks could break, according to Ford (F). Posing a fire risk, the fuel tank and heat shield that protects the tank could fall on the driveshaft or exhaust system, depending on if the vehicle has front-wheel or all-wheel drive.

Recall notices will go out Dec. 1, with the straps to be replaced by Ford dealers.

...more...

Dec 1!!!!!!!

:wtf:

How about if something happens to people between now and Dec 1?????

:banghead:

How about just making good vehicles at a reasonable price?

http://today.reuters.com/investing/financeArticle.aspx?type=bondsNews&storyID=2005-11-16T182159Z_01_N16609640_RTRIDST_0_AUTOS-FORD-INCENTIVES-URGENT.XML

DETROIT, Nov 16 (Reuters) - Ford Motor Co. (F.N: Quote, Profile, Research) on Wednesday said it will offer a new incentive program that cuts thousands of dollars off most of its new cars and trucks.

The new incentives follow crosstown rival General Motors Corp.'s (GM.N: Quote, Profile, Research) "Red Tag" sale, which allows anyone in the United States to buy vehicles at the same price employees of GM's auto parts suppliers pay. GM, which announced the deal on Monday, has led Detroit's profit-draining price war for four years.

Ford's program, called the "Keep It Simple" plan, will be available through Jan. 3. It comes after Ford and GM suffered a 23-percent decline in U.S. October sales and lost market share to Japanese rivals.

The sale includes all 2005 and 2006 models, except the Ford Fusion, Lincoln Zephyr, Mercury Milan, Ford Mustang and Ford GT.

...short blurb...

Something big is going to happen.

is this it?

http://www.marketwatch.com/news/story.asp?guid=%7BB2C4EFF8%2DB4CD%2D4D54%2D88B5%2D52016804AD5F%7D&siteid=mktw

NEW YORK (MarketWatch) -- U.S. pharmaceutical and biotechnology stocks were mostly lower Wednesday with Gilead Science a standout after settling a dispute about the drug Tamiflu with Roche Holdings.

The Amex Pharmaceutical Index ($DRG) was last down 0.7% at 309.68, while the Amex Biotech Index ($BTK) was down 0.4% at 664.61.

Gilead (GILD) shares added 6% to $54.74 after reaching an agreement with Roche, which licensed Tamiflu from Gilead in 1996.

Under the terms of the agreement, Roche will make back payments of $62.5 million and allow Gilead to keep a disputed $18.2 million royalty payment. The company will also waive cost of goods adjustments from all future royalty calculations and Gilead's royalties will range between 14% to 22% depending on Tamiflu volumes.

Tamiflu, which is used to treat and prevent influenza A and B, has been stockpiled around the world since the drug was discovered to be effective against the H5N1 avian flu strain.

...more...

And welcome to DU and the SMW Rambozo Eradicator!

:hi:

3:18
Dow 10,666.12 -20.32 (-0.19%)
Nasdaq 2,184.14 -2.60 (-0.12%)
S&P 500 1,229.91 +0.90 (+0.07%)
10-Yr Bond 44.90 -0.67 (-1.47%)
NYSE Volume 1,701,203,000
Nasdaq Volume 1,373,963,000

2:30PM: Little has changed within the equity market, and the major averages continue to hover within the session's narrow trading range. Tomorrow's economic front is another heavy one; here's a look at what is featured...

Investors await last week's initial claims report, for which analysts expect a 322K rise, and October housing starts and building permits data - economists estimate respective reads of 2060K and 2170K - are each due out at 8:30 ET. Industrial production (consensus 1.0%) and capacity utilization (consensus 79.6%) data for October will be released 45 minutes later, followed by the November Philadelphia Fed Index at noon. For the regional manufacturing report, the consensus is pegged at 15.0. NYSE Adv/Dec 1400/1846, Nasdaq Adv/Dec 1036/1941

Dow 10674.76 -11.68 (-0.11%)
Nasdaq 2187.93 +1.19 (+0.05%)
S&P 500 1231.21 +2.20 (+0.18%)
10-Yr Bond 4.484% -0.73

NYSE Volume 2,121,580,000
Nasdaq Volume 1,722,019,000



Close Dow:
Spending the day within a narrow trading range that kept the indices surrounding the flat line, the market's majors were troubled by unexpected drawdowns in crude and gasoline supply and stunted by a pair of Dow components. Although the market opened on the upside and was seemingly unfazed by a slight uptick in core CPI, American Express' (AXP 5.09 -0.84) assertion that Wall Street's expectation for 25% earnings growth in Q4 is "far too high" catalyzed a bearish air that General Motors' (GM 21.28 -1.33) 18-year low exacerbated. AXP's announcement perhaps provided investors reason to secure some of the Financial sector's recent 10.8% run, and widespread selling thus spurred a session-dragging 0.5% loss. Despite a second consecutive day of strength within the Treasury market, which took the 10-year (+20/32) down to a 4.48% yield, the spread between 2 and 10-year notes remains at its narrowest since 2001, a factor that may have contributed to banks' relative weakness. With respect to bonds, better than expected net foreign purchases in September, which reflected robust demand for U.S. assets, boosted that market. Healthcare's 0.4% decline also weighed heavily; the sector was especially affected by tumbles in Abbott Labs (ABT 40.59 -0.88) - which released results of an unsuccessful study - and Pfizer (PFE 21.35 -0.54) - which the Wall Street Journal discussed in terms of the looming generic drug challenges it faces. Largely due to GM, the Discretionary sector (-0.2%) spent the day in the red, but an upbeat earnings report and accompanying guidance from homebuilder DR Horton and relative strength in retailers limited the sector's slide. A 1.7% rise in crude ($57.75 per barrel), which the EIA's latest inventory stats spurred, led to a session-leading 2.1% gain in the Energy sector. At the same time, the market at large demonstrated resilience to the energy price action, perhaps due to the fact that crude remains near four-month lows and especially revealed by the retail rise and relative strength in the Dow Jones Transportation Average. Utilities lent a 0.8% gain, while a better than expected headline read of Tyco's (TYC 28.55 +1.15) fiscal Q4 earnings report helped Industrials notch 0.4%. Matching that gain was Technology, best supported by Apple (AAPL 65.06 +2.78), following reports that the company may raise iTune prices, and by Yahoo (YHOO 40.03 +2.38). For their part, YHOO sthares soared after the Wall Street Journal article reported that Yahoo, AOL, and MSN are selling out on advertising months in advance - and that surging demand is allowing hefty rate increases. With respect to the October CPI report, the core rate checked in at +0.2% - in-line with the read economists had expected but breaking the six-month trend of benign 0.1% increases. It's Briefing.com's view that the slight uptick is not cause for concern at this juncture, and the market appeared to similarly interpret the data. Total CPI similarly rose 0.2% (consensus 0.0%), and reflected the slowest rise in consumer prices in four months.NYSE Adv/Dec 1599/1718, Nasdaq Adv/Dec 1226/1800

3:30PM : A slight rise in the Tech sector (+0.4%) briefly boosted the Nasdaq onto positive turf, but the Composite has not yet managed to sustain a gain. The Dow and S&P, meanwhile, have inched higher, though the former continues to trend negative. It's essentially more of the same for stocks as today's session nears its end. Treasuries have similarly held pretty static today, but on the other end of the spectrum; the 10-year is presently up 19 ticks and offering 4.48%. With respect to the equity market, the day-long bearish bias is evidenced by the market's internals. Although, in the early going, advancers on both the NYSE and Nasdaq outpaced decliners, their edge was relinquished an hour into trading. At this point, declining issues on the NYSE have a 5-to-6 lead over advancing counterparts, while decliners on the Nasdaq outnumber advancers 11-to-19. NYSE Adv/Dec 1467/1820, Nasdaq Adv/Dec 1085/1922


Have a great night marketers :hi: