STOCK MARKET WATCH, Wednesday 30 November

SUMMARY

We do not believe people ought to make much out of yesterday's decline. Notice that the Oscillators are not too far from the zero line, and price is not too far from channel support. We expect to hold, and if they do, the SP will make a run towards the 1285-1290 zone, and that will be the area to look for a sharp move. "Seasonality" still favors equities, and there are many in the industry who stand ready to defend their year-end bonuses by throwing their clients' money in support of the market. Unless there is an exogenous event that forces money managers to change their posture for right, there is one reason behind the market's behavior, and it is directly linked to the interests of the "financial industry" and can be summed up like this: "We have got to support prices so we can get our bonuses at the end of the year; we have got to pay for that new HUMMER, and the vacation in London to please the wife; we'll worry about aligning our positions with reality later!" All the rest is just conversation and academic garbage.

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

"hang tough" for a few more weeks with "other people's money" so they can get theirs. :eyes:

As pointed out yesterday, once the extra petro stops flowing from EU we'll be back to a world of hurt. Then there's always the unknown and known unknowns, scandals, indictments, the war, and the usual risk when there's an idiot in charge.

(Yeah, I know it's early for me - bad cold and woke up with a coughing spell.)

We need a reminder to pat ourselves on the back from time to time. We lay-economists at the SMW are rarely "surprised".

and good morning... :hi:

:donut:

I wish you a swift recovery, 54anickel.

I'm on the tail end of it. Hubby came down with it 1st. Then old dog got it (that was scary - thought it was time to put him down). Then I got it and now younger dog seems to be coming down with it.

The worse part of it is the 2-3 days of sore throat, swollen glands and trouble swallowing.

Didn't realize dogs could catch similar bugs from people, so when old dog (16 years) stopped eating and drinking and got real lethargic, I thought the worse. He's coming around pretty good now. Still a picky eater, but that's my fault for spoiling him with all the good stuff while he was sick. ;-)

I am on the last stretch of my cold. How do I know? I start sounding like Elvis...a good thing I guess if I were a guy.....

Your trouble swallowing and swollen glands sound more like strep throat though. Might want to get it checked. Too bad I can't have a looksee. If you notice white spots on your tonsils, they appear very red, and you have a nasty taste in your mouth-it is most likely strep. It is important to get it checked as it can get into the blood stream and cause serious problems (kidney failure for starters).

damned bad one day. But, no fever and each day gets better instead of worse. Just checked again and no white spots that I can tell.

I had minor surgery the week before I came down with this. First time ever in a hospital or put under. Think it might have made me a bit more vulnerable - I usually don't catch stuff that's going around. Then again could just be age catching up with me. ;-)

but no temp. Another common symptom is a stomach ache or a rash. The getting better is good, but the other symptoms are classic strep. Oh, it can go down to the heart too....

:donut: Thanks Ozy...the bears are in their caves until the bonus checks are cut. What a scam. Say, when DO they cut the bonus checks? Who would have thought that Denial river flowed through Wall St.:eyes: I heard on tv this am that more people have been putting their money in international mutual funds. Boy if that isn't a ringing endorsement for Wall St.
I have been teaching personal finance to a group of 3-5th graders...what a blast. They learned to write checks, fill out deposit slips, and do their check register (balancing it of course). My credit union had some speakers come out and they said it was one of the groups they taught (they usually have adults). I encourage you all to volunteer at your local school. We really need mentors and speakers and there are a number of groups (Junior Achivement etc.)that are in schools. I esp want to encourage our black and hispanic DU'rs to get involved. Kids need real role models and your success can spur them on.
Happy hunting and tread lightly around the bears....

SINGAPORE - Oil prices briefly slipped below $56 a barrel on Wednesday, the lowest level in 5 1/2 months, as warm weather persisted throughout the U.S. Northeast amid expectations that U.S. oil reserves are sufficient for increased demand this winter.

Light, sweet crude for January delivery dropped 13 cents to $56.37 a barrel on the New York Mercantile Exchange in Asian electronic trading, late afternoon in Singapore. Earlier, prices touched a low of $55.72 — a level not seen for a front-month contract since June 13.

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Heating oil rose marginally to $1.61 a gallon while gasoline was flat at $1.3951 a gallon.

But while analysts forecast expanding supplies of petroleum products used to heat homes and fuel vehicles, estimates for diminishing natural gas inventories and the harsh Midwest weather sent natural gas futures climbing.

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12:13pm 11/30/05 JAN CRUDE FALLS 15C TO $56.35/BRL IN AFTERNOON NY TRADE

12:13pm 11/30/05 JAN NATURAL GAS UP 19.4C, OR 1.7%, AT $11.93/MLN BTUS

12:13pm 11/30/05 DEC HEATING OIL FALLS 1.4%; DEC UNLEADED GAS DOWN 0.5%

12:13pm 11/30/05 JAN HEATING OIL DOWN 0.9%; JAN UNLEADED GAS UP 0.1%

1:15pm 11/30/05 JAN CRUDE FALLS 10C TO $56.40/BRL IN NY

1:15pm 11/30/05 JAN CRUDE TRADES BELOW WEEK-AGO AND MONTH-AGO LEVELS

1:15pm 11/30/05 JAN NATURAL GAS CLIMBS 2.6% TO $12.04/MLN BTUS

1:15pm 11/30/05 JAN NATURAL GAS TRADES BELOW MONTH-AGO CLOSE

2:09pm 11/30/05 JAN CRUDE TRADES OFF LOWS, UP 55C AT $57.05/BRL IN NY

2:09pm 11/30/05 JAN NATURAL GAS NEAR 2-WK HIGH, UP 5.8% AT $12.42/MLN BTUS

NEW YORK - The outlook for the holiday shopping season brightened Tuesday with news that consumer confidence soared in November in response to a drop in gasoline prices and a pickup in the job market.

The surge in the Conference Board's Consumer Confidence Index raised hopes that Americans will be shopping enthusiastically by the end of the holidays despite this past weekend's mixed start to the season. Separate reports Tuesday of record home sales and a jump in durable goods orders provided more signs of an improving economy that's likely to boost shoppers' spirits.

"It looks like consumers will be in a more giving mood," said Gary Thayer, chief economist at A.G. Edwards & Sons in St. Louis. But he added, "I don't think they will spend with abandon. There are still some tight financial problems for many people. We probably will see active shopping for bargains."

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Sales for the combined Friday and Saturday period slipped 0.5 percent to $13.4 billion from the year-ago period, according to ShopperTrak RCT Corp.

The nation's retailers had a modest start to the holiday shopping season as consumers jammed stores for bargains in the early morning hours Friday but seemed to lose interest as the weekend wore on.

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According to ShopperTrak RCT Corp., which monitors sales at more than 45,000 retail outlets, sales for the combined Friday and Saturday period slipped 0.5 percent to $13.4 billion from the year-ago period.

Analysts said there was heavy shopper traffic for the day after Thanksgiving, but consumers apparently lost their enthusiasm once those early-bird specials were over.

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8:30 AM Chain Deflator-Prel. for Q3
Briefing Forecast 3.1%
Market Expects 3.1%
Prior 3.1% -

8:30 AM GDP-Prel. for Q3
Briefing Forecast 4.0%
Market Expects 4.0%
Prior 3.8%

10:00 AM Chicago PMI for Nov
Briefing Forecast 60.0
Market Expects 60.0
Prior 62.9

10:30 AM Crude Inventories for 11/25

2:00 PM Fed's Beige Book

8:30am 11/30/05 U.S. 3Q GDP REVISION TO 4.3% BETTER THAN THE 4% EXPECTED

8:30am 11/30/05 U.S. GDP UP 3.7% YEAR-ON-YEAR

8:30am 11/30/05 U.S. 3Q BUSINESS INVESTMENT UP 8.8% VS. 6.2%

8:30am 11/30/05 U.S. 3Q CONSUMER SPENDING UP 4.2% VS. 3.9%

8:30am 11/30/05 U.S. 2Q REAL DISPOSABLE INCOME REVISED LOWER TO 0.2% VS 1.5%

8:30am 11/30/05 U.S. 3Q GDP REVISED ON HIGHER SPENDING, INVESTMENT

8:30am 11/30/05 U.S. 3Q PCE CORE PRICE INDEX UP 1.2% VS. 1.3%

8:30am 11/30/05 U.S. 3Q PROFITS FALL 3.4% ON HURRICANES IMPACT

8:30am 11/30/05 U.S. 3Q GDP REVISED TO 4.3% ANNUALIZED VS. 3.8%

Annuitized, this is a 4.8% inflation rate on expenses that are less than essential. Whereas, our household can only expect a 3% increase in pay over the previous year. This reflects that standard cost of living increase.

Thank goodness food and energy are free. Otherwise our standard of living would really suffer. :eyes:

http://money.cnn.com/2005/11/30/news/economy/gdp/

NEW YORK (CNNMoney.com) - The economy shook off Hurricane Katrina and just about every other obstacle in the third quarter, growing at the fastest rate in a year and a half and topping even the most optimistic forecasts, a government report showed Wednesday.

The growth came without any troubling signs of rising inflation -- news that's good for workers on Main Street and investors on Wall Street.

<snip>

The growth came despite two major hurricanes that slowed economic activity in the quarter, energy price shocks, higher interest rates and a record trade deficit in September, which subtracts from GDP.

<snip>

"It's about as perfect a GDP report as you can get," said John Silvia, chief economist for Wachovia Securities. "We had thought the economy was doing OK, but we didn't think it was doing this well."

<snip>

"The most important thing as we look at the economic data, we are really at a point where we need Goldilocks," said Art Hogan, chief market analyst at Jefferies & Co., referring to a so-called Goldilocks economy that's not too cold or too hot.

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I certainly hope those report writers get their bonuses!

http://www.marketwatch.com/news/newsfinder/pulseone.asp?dateid=38686.4197059491-852730487&siteID=mktw&scid=0&doctype=806&property=symb&value=&categories=&

CHICAGO (MarketWatch) -- A measure of Chicago-area business showed expansion at a slightly reduced pace over a month earlier. Still, the result topped most expectations. The Chicago purchasing managers index was at 61.7% in November, from 62.9% a month earlier. The average of a MarketWatch survey called for 59.9%. Readings over 50% for this diffusion index mean more companies reported steady or improved activity than the number reporting a slowdown.

10:00am 11/30/05 NOV. CHICAGO PMI AT 61.7 VS. 62.9 IN OCT., 59.9 EXPECTED

http://www.marketwatch.com/news/newsfinder/pulseone.asp?dateid=38686.4414014583-852735035&siteID=mktw&scid=0&doctype=806&

SAN FRANCISCO (MarketWatch) -- The Energy Department said crude inventories fell 4.2 million barrels for the week ended Nov. 25 to total 317.6 million. That's still 10.3% above the year-ago level. Distillate supplies rose 3.4 million barrels to 127.9 million. Motor gasoline stocks were down 500,000 barrels at 199.9 million barrels. January crude was down 25 cents at $56.25 a barrel after an earlier rise to $56.80. December unleaded gas added 0.59 cent to $1.401 a gallon. December heating oil lost 0.22 cent to $1.6075 a gallon.

10:30am 11/30/05 U.S. CRUDE STKS DOWN 4.2 MLN BRLS LAST WK: ENERGY DEPT

10:30am 11/30/05 U.S. GASOLINE STKS DOWN 500,000 BRLS: ENERGY DEPT

10:30am 11/30/05 U.S. DISTILLATE STKS UP 3.4 MLN BRLS: ENERGY DEPT

2:00pm 11/30/05 HOUSING MARKET COOLING OFF IN SEVERAL AREAS: BEIGE BOOK

2:00pm 11/30/05 SOME SIGNS OF INCREASED HIRING: BEIGE BOOK

2:00pm 11/30/05 CONSUMER PRICES FLAT OR UP ONLY MODESTLY: BEIGE BOOK

2:00pm 11/30/05 BUSINESSES REPORT RISING INPUT PRICES: BEIGE BOOK

2:00pm 11/30/05 RETAILERS GENERALLY OPTIMISTIC ABOUT HOLIDAYS: BEIGE BOOK

2:00pm 11/30/05 FACTORY SECTOR A STAR OF AUTUMN ECONOMY: BEIGE BOOK

2:00pm 11/30/05 ECONOMY IMPROVING BUT AT UNEVEN PACE: FED BEIGE BOOK

http://www.marketwatch.com/news/newsfinder/pulseone.asp?dateid=38686.583795706-852759620&siteID=mktw&scid=0&doctype=806&

WASHINGTON (MarketWatch) -- The U.S. economy continues to expand, but at remarkably different rates across the country, the Federal Reserve said Wednesday. In the Beige Book account of current economic conditions, the pace of growth was described as generally slow in the East, gradual in the Midwest and solid west of the Mississippi. In such mixed conditions, there were little overall trends except a robust factory sector and many reports of a cooling residential housing market. The best news was perhaps that hiring activity has improved in many Fed districts. Price reports were mixed, with consumer price pressures flat or up modestly but also talk of "persistent input price pressures" as businesses passed along higher energy prices.

LONDON (Reuters) - U.S. equity futures pointed to a lower start on Wall Street on Wednesday with markets closely watching economic data due later for further signs of economic strength that would heighten fears of more interest rate hikes.

The corporate news schedule was thin with jewelry retailer Tiffany & Co (NYSE:TIF - news) and data storage equipment maker McDATA Corp (MCDT.OQ), which earlier this month lowered its profit estimates, among the few firms reporting results.

An oil price heading down toward $56 a barrel as mild weather curbed demand in parts of the U.S. may support share prices, easing worries about the effect of higher energy costs on companies' margins. Meanwhile, the dollar held steady against the euro ahead of the U.S. data.

Third-quarter gross domestic product data at 1330 GMT and the Federal Reserve's Beige Book of regional economic conditions at 1900 GMT will be watched for how the U.S. economy is faring.

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NEW YORK - During each of the past four years, Wall Street has celebrated the year's end with a big rally that bolstered returns and burnished the reputations of investors and money managers who might otherwise found themselves with poor showings.

Once again, the market appears to be turning a year of negative returns into something worth bragging about. If this week's important slate of economic reports continue to encourage Wall Street, this year's rally could give 2005 better returns than anyone thought were possible just a few weeks ago.

When the rally started in November, it seemed more of a psychological phenomenon — enough investors believed in the so-called "Santa Claus" rally to start buying stocks, and when enough people buy stocks, you have a rally.

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Listen to Ike Iossif in today's WrapUp. This is all about year end bonuses. Oh yes -- expect to hear from more "suprised" economists when the bonus incentive goes missing in January.

http://www.prudentbear.com/archive_comm_article.asp?category=Guest+Commentary&content_idx=49063

Herein, we’ll argue why we believe that Dr. Ben Bernanke is ill-suited for the Chairmanship of the Federal Reserve System; especially for residential property and other investor’s, homeowners, the general public, both domestic and international markets; and, sadly, for his own historical legacy. By all accounts Dr. Bernanke is a “nice” guy, and some wonder why he would have placed himself in the position of coming on stage following the Maestro. We believe that as events unravel, as the true history of the unprecedented Credit Bubble is exposed, Mr. Greenspan will be appropriately discredited.

Why would Dr. Bernanke place himself in harm’s way? Hubris comes to mind. (Webster’s Online: Hubris: : 'hyü-bris, noun: exaggerated pride or self-confidence.)

Quotable:

"AG: ‘Ben, Ben, you have so much to learn. That transparency stuff is fine for academic research. In the real world, never giving the market too much information means never having to say you're sorry. Or that you were wrong.’ "
- Caroline Baum, Bloomberg. November, 2005. (We infer that Ms. Baum’s reference to “AG” may have been to Chairman Al “Departing Maestro” Greenspan.)

"Liquidate labor, liquidate stocks, liquidate the farmers, liquidate real estate. It will purge the rottenness out of the system. High costs of living and high living will come down. People will work harder, live a more moral life. Values will be adjusted, and enterprising people will pick up from less competent people.”
- Andrew W. Mellon, Secretary of the Treasury, circa 1932.

"Bulls of 1929 - like their 1990s counterparts - had their eyes glued on improving profits and stock valuations. Not a thought was given to the fact that the rising tide of money deluging the stock market came from financial leverage and not from savings."
- Dr. Kurt Richebächer. Circa, recent.

The final quote from a good doctor is one that we highly agree with. Substitute the word, housing, for the word, stock, and you’ll be up-to-date. Then loosely substitute the words, Bull Ben, for the words Bulls of 1929, and you’ll see our position at the outset. Actually we agree with all three quotes, and while we’re not nearly as severely austere as the former Secretary of the Treasury, Andrew W. Mellon, he does make a point. A planned debacle, an all hand’s-on-board public winding down, would be less painful to the investing public and all Americans than if it comes out of nowhere. However, a well-thought-through program would be communist-like central planning that will never and should never fly in a Capitalist Society. Unless of course the Federal Reserve System does it in secret, like so much of what they actually do. Could they be planning it now?!?!?!

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Last entry in last week's Credit Bubble Bulletin -

http://www.prudentbear.com/creditbubblebulletin.asp

snip>

In summary, the M’s no longer reflect either system Credit growth or system liquidity, and are prone to give erroneous signals at critical junctures (when Marketplace Risk Embracement is modulating). I have watched repeatedly over the past few years as analysts have pounced on any slowdown in the M’s as an indicator of waning Credit growth and liquidity. This year, it was the stagnation of MZM that captured analysts’ attention, notwithstanding that this development was largely related to continued disintermediation from the money fund complex and the shift to higher-yielding term deposits; Credit growth remained on record pace, and the Bubble economy carried on. Moreover, M3 is clearly not capturing the historic expansion in the securities-financing repurchase agreement (“repo”) marketplace. While primary dealer “repo” positions have expanded $975 billion over the past two years, the M3 component bank net “repo” liability position has increased $27 billion. And while some “repo” positions are being captured in Money Funds holdings, there are enormous perceived “money” assets held in the ballooning securities financing arena outside the purview of the M’s.

If the Fed endeavored to shroud the extent of current monetary inflation, I suggest they stick with publishing M3. And it is inconceivable at this point to expect the Fed – or the economic community – to embrace a broad-based measure of monetary instruments that would include Wall Street marketable securities and “repos.” Anyway, contemporary “money” is a moving target that changes at the whim of marketplace perceptions. And while I question the premise that the Fed has much to gain by eliminating M3, this nonetheless misses the much more salient point: The Fed has lost control of our nation’s “money” and Credit creation processes. The Greenspan/Bernanke Fed can now only administer feeble attempts to remove accommodation, hoping that over time baby-steps makes some headway but without ever attempting to impede, interrupt or discipline Wall Street Monetary Processes.

The market today believes that a slowing real estate market is in the process of restraining system Credit growth. I am skeptical. It is my view that after the past year’s boom in energy and commodities prices, along with booming exports and a strong inflationary bias throughout much of the economy, it will now take considerably more restraint in mortgage Credit to meaningfully moderate total system Credit growth. And the greater U.S. and global stocks and bonds rally, the more likely the Credit Bubble refuses to miss a beat.

The late 1920s saw the Benjamin Strong Fed acquiesce to the demands of the broker call market after it had evolved into a commanding source of monetary inflation and system liquidity. Today’s securities finance Bubble – certainly including the massive “repo” market – is at a scope unlike any in history. And once a substantial component of a nation’s (world’s) “money” supply is wrapped up in financing market Bubbles – well, you have one hell of a predicament. On the one hand, such powerful Bubbles are (as we have witnessed) strongly self-sustaining. On the other, the consequences of popping the Bubble ensure policymaker timidity and ongoing accommodation. Dr. Bernanke certainly has no intention of administering any meaningful restraint. Yet, inevitably, financial Bubbles do burst and the downside of boom-time Perceived Moneyness and Marketplace Risk Embracement manifest in financial dislocation and a crisis of confidence.

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http://www.house.gov/paul/tst/tst2005/tst112805.htm

Benjamin Bernanke, a former member of the Board of Governors at the Federal Reserve, is all but certain to be confirmed by the Senate as the next Chairman of that institution. He may find that the adulation given to Mr. Greenspan does not carry over into his tenure so easily, especially if he continues to help Congress run up huge deficits.

Mr. Bernanke is a consummate Fed insider, widely seen by the financial press as the logical heir to Alan Greenspan. In fact, judging by his public statements he may be more like Greenspan than Greenspan himself.

What I mean is that Mr. Bernanke appears to have embraced the idea that the Federal Reserve can create prosperity more than Mr. Greenspan ever did. Like his predecessor, Mr. Bernanke views our system of fiat currency as a tool for creating wealth out of thin air by producing more dollars, whether paper or electronic. But he seems to take things further than Greenspan by refusing even to consider the destructive consequences of monetary expansion. In fact, he earned dubious notoriety for this quote in a 2002 speech discussing the supposed threat of deflation in the American economy: "The U.S. government has a technology, called a printing press, that allows it to produce as many dollars as it wishes at essentially no cost."

But there is a cost, and it's a heavy one. It's called monetary inflation, which destroys the value of the dollar and punishes those who save and invest. The money supply, as measured by the Fed's own M3 figure, has increased about 5 times since 1980. Yet for years officials at the Fed have insisted that inflation is firmly in check.

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Gotta agree with his call for people to learn more about how the Federal reserve system operates. IMHO it's a huge scam that has now lost control of our economy - it sure doesn't seem to be working out as well as planned any way.

you missed the best quote from Baron Rothchild...'buy when the streets are red with blood'...wiiicked.

http://www.marketwatch.com/news/story.asp?guid=%7BFFDEA816%2DE11F%2D47A8%2DA66D%2DBDA8E32812DD%7D&siteid=mktw&dist=

snip>

While most of these minutes was a boiler-plate discussion of the economy and the need to remain vigilant against the threat of inflation, these heavily edited minutes contained a phrase suggesting that some members of the committee were becoming worried about raising interest rates too much.

The press and the pundits might have overlooked this phrase - or, at least, taken it with a grain of salt - had it not been for another interesting development.

On Nov. 10, the central bank issued a tersely worded statement that it was planning to discontinue publishing its widely followed M3 money supply data. Read the statement. This really set the conspiracy theorists buzzing.

Aside from its importance as a gauge of Fed policy, M3 has been expanding at an increasing pace. It's currently growing at a 7.5% annual rate, up from 5.6% at the end of last year. On the other hand, the growth rate of M2 money has slackened, from 5.6% last year to only 4% today.

To some, this smacks of setting the stage for faster money growth. Me, I'm reminded of 1967, or thereabouts, when the government stopped publishing statistics on defense spending, ostensibly to hide the scope of the buildup in Vietnam.

Put these two items in the context of the yield curve, which is almost flat (see my previous column), and the fact that the real (inflation-adjusted) funds rate is now only a half-point away from its long-term average of 2.5% - meaning that policy is rapidly approaching neutral - and you can see why the buzz of an early end to Fed tightening is getting louder and louder.

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Asian central banks seen piling up gold reserves to avert risk of US$ slide

http://business-times.asia1.com.sg/sub/news/story/0,4574,178183,00.html?

(SINGAPORE) Hedge funds, after pushing gold prices to 22-year highs, are looking to China and other Asian central banks as the next big drivers of the metal.

This month Russia, Argentina and South Africa decided to increase the amount of gold in their reserves, reversing a six-year trend of central bank sales, mainly from Europe. That helped push gold prices above US$500 an ounce yesterday, the highest price since 1987 and double the levels seen in 2001.

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Hedge fund manager Juerg Kiener said it was now only a matter of time before Asian central banks diversify more of their US$2.6 trillion in foreign reserves holdings into gold to hedge against what he sees as an inevitable decline in the US dollar.

snip>

'Basically it is all about protecting your purchasing power,' Mr Kiener, who heads hedge fund Swiss Asia Capital, told Reuters. With record budget deficits in several G-7 countries, central banks are 'printing money' and devaluing the purchasing power of their currencies.

'Gold is the only monetary asset class which will protect investors,' Singapore-based Mr Kiener said, adding that the world is entering a phase of high inflation and low growth - or 'stagflation'.

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http://seattletimes.nwsource.com/html/businesstechnology/2002654604_goldprices30.html

TOKYO — Gold prices broke through the critical threshold of $500 an ounce in Asian trading Tuesday for the first time since late 1987, driven by investor demand for the metal as a diversifying asset. Prices retreated in later trading.

A fourth consecutive day of strong Japanese buying sent gold above the milestone, traders said, bringing the metal's gains to 10 percent in less than four weeks.

snip>

Gold's appeal as a hedge against currency weakness, inflation and financial instabilities in general has driven the recent rise in prices, traders said.

Japanese buyers are apparently being encouraged by strong technical trends and possibly concerns about further yen weakness, Barclays Capital said in a report.

Recent reports that Russia wants to buy more gold in a bid to diversify its foreign reserves also helped push gold higher, Tokyo traders said.

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Growth in international fund inflows pegged at 40%

http://www.marketwatch.com/news/yhoo/story.asp?source=blq/yhoo&siteid=yhoo&dist=yhoo&guid=%7BC1187B6F%2DBAB3%2D405E%2D989C%2DC1EEA1E35330%7D

BOSTON (MarketWatch) -- Investors continued to pile money into mutual funds that concentrate on international companies last month while avoiding U.S.-stock portfolios, according to the latest data from the Investment Company Institute released Tuesday.

Funds that primarily invest overseas gathered $9.39 billion in October, holding virtually steady with the $9.11 billion they raked in during September.

Investors have been shoveling money into outperforming foreign-equity funds this year, with those geared toward emerging markets leading the way.

At the same time, portfolios that hold U.S. stocks posted net October outflows of $2.93 billion, a month after they lost $1.18 billion, the main trade group for the fund industry reported.

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:wtf: "Person says"? I had to post this just for that stupid headline!

http://www.bloomberg.com/apps/news?pid=10000085&sid=aVMqWUr74DfE&refer=europe

Nov. 30 (Bloomberg) -- The European Central Bank raised its 2006 inflation and economic growth forecasts for the 12 countries sharing the euro, a person familiar with the matter said. The bank has signaled it's preparing to increase interest rates as early as tomorrow to keep inflation under control.

The central bank now expects inflation to average 2.1 percent in 2006 and 2007, said the person, who declined to be identified because the forecasts are yet to be released by the ECB. The bank expects the economy to expand 1.9 percent next year and 2 percent in 2007. That compares with the bank's Sept. 1 forecasts for inflation of 1.9 percent in 2006 and growth of 1.8 percent.

``A more favorable growth outlook and upside risks to inflation are going to be the justifications for higher interest rates,'' said Guillaume Menuet, senior economist at Moody's Investors Service in London. ``For the first time we have 2006 and 2007 inflation forecast above the ECB's limit.''

Surging oil prices have kept euro-region inflation at or above the ECB's 2 percent limit for ten months this year, prompting ECB President Jean-Claude Trichet to say the central bank is now ready to ``moderately augment'' borrowing costs. The Frankfurt-based bank has held its benchmark interest rate at a six-decade low of 2 percent since June 2003 and last raised rates in October 2000.

The price of a barrel of oil reached a record $70.85 on Aug. 30 and was at $56.39 today, still 30 percent higher than at the start of the year.

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Sounds like a transfer of wealth to me :scary: :shrug:

http://today.reuters.com/news/newsArticle.aspx?type=reutersEdge&storyID=2005-11-30T102920Z_01_HO037742_RTRUKOC_0_US-FINANCIAL-HEDGEFUNDS-WEALTH.xml

ZURICH (Reuters) - The world's super-rich will soon become marginal financiers in the hedge fund industry as the business they invented is increasingly dominated by large institutional investors, fund managers say.

Billionaires and other individuals rich enough to spend most of their time nurturing their bank accounts are still pouring more money into the industry, which uses sophisticated financial strategies to aim for high and sustained returns.

But inflows from pension funds, endowments and companies are rising faster, reducing private investors to a minority now that the industry, at an estimated $1 trillion of assets, has become sizeable enough to swallow institutional investments.

snip>

If we go forward to the year 2010, it's estimated that 80 percent of the assets under management in the hedge fund will be from institutions. So it's a big switch that's happening", she said. Tribeca manages $1.5 billion for Citigroup (C.N: Quote, Profile, Research).

more...

http://today.reuters.com/news/newsArticle.aspx?type=businessNews&storyID=2005-11-29T230719Z_01_ARM977847_RTRUKOC_0_US-FINANCIAL-GOLDMANSACHS-HQ.xml&archived=False

NEW YORK (Reuters) - Goldman Sachs Group Inc. on Tuesday broke ground on a new $2.4 billion headquarters tower in lower Manhattan, an important step toward reviving the neighborhood's fortunes and bolstering New York's claim as financial capital of the world.

"Today we affirm our commitment to lower Manhattan and the City of the New York, the financial capital of the world," Goldman Chairman and Chief Executive Henry Paulson said at a groundbreaking ceremony in Manhattan's Battery Park City section.

The building, steps away from the destroyed World Trade Center site, is scheduled to be occupied in 2009.

snip>

In exchange for promises to maintain 9,000 jobs in the city and eventually to add 4,000 more, Goldman secured $1.65 billion in low-cost Liberty Bonds to finance the project plus a raft of other city and state incentives, as well as changes to development plans for the surrounding areas.

Paulson declined to comment on the incentive package, which comes as Wall Street analysts expect the firm's earnings per share to surge 24 percent to a record high. Goldman is also expected to dole out an estimated $11 billion in bonuses.

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I missed that.

On Monday, there was a partial inversion in the yield curve for the first time in more than four years. Fears of an inverted curve, historically an omen for recession, have weighed on brokerage stocks this week.


It got some coverage, but doesn't look like it got any headlines.
http://news.google.com/news?hl=en&ned=us&q=Inverted+yield+curve&ie=UTF-8&sa=N&start=0

http://www.washingtonpost.com/wp-dyn/content/article/2005/11/29/AR2005112901575.html

Since he was sworn in as chairman of the Securities and Exchange Commission Aug. 3, former representative Christopher Cox has moved cautiously and mostly behind the scenes at an agency that had been active but acrimonious under its previous leadership.

Yesterday, the SEC voted unanimously to propose allowing companies to issue proxy statements on the Internet -- not a blockbuster, but a move that blended two of the new chairman's central interests.

Nearly four months into his term, the Republican onetime congressman from Orange County, Calif., reserves some of his most passionate remarks for the subject of how computers can help shareholders access information quicker and more cheaply.

But investor advocates and business groups say they are far more interested in how Cox will grapple with management challenges in the months ahead. Chief among them: filling high-level vacancies in the agency's key divisions and at the Public Company Accounting Oversight Board, which reviews the work of audit firms.

The board stands at the center of vocal complaints from industry groups over a measure requiring companies to assess the effectiveness of their financial controls. Small businesses in particular complain that the rule is cumbersome and expensive. At Cox's first public meeting as the agency's chairman in September, the SEC voted to grant small companies a delay in following the control rule. More action is likely next year, after the SEC receives fresh recommendations from an advisory group.

more...

http://www.freep.com/apps/pbcs.dll/article?AID=/20051130/BUSINESS01/511300315/1014/BUSINESS

snip>

Workers nationwide staged informational pickets to challenge Delphi's request that a bankruptcy judge approve a severance pay package for 600 executives valued at $400 million. Workers called the proposal unfair.

snip>

Delphi originally was scheduled to defend its compensation plan in bankruptcy court Tuesday, but the company asked to delay the hearing until Jan. 5 so it could consider objections from the UAW and others. UAW spokesman Paul Krell said local unions decided to go ahead with their protests.

snip>

Art Reyes, a 15-year hourly Delphi East Flint employee, called Delphi's compensation packages obscene. Moreover, he referred to the $12.50 average hourly wage the company has proposed for its hourly workers as draconian. Hourly workers on average now make $27 an hour.

snip>

For instance, Delphi President and Chief Operating Officer Rodney O'Neal, 51, with an average annual salary of $1.2 million, would receive $2.8 million; vice chairman David B. Wohleen, 54, with an average annual salary of $890,000, would receive $2.2 million; chief financial officer Robert J. Dellinger, 44, with a $750,000 average annual salary, would receive $2 million. In all, 486 executives would receive $87.9 million.

The UAW and other unions aren't alone in protesting Delphi's compensation plan. Last week, a group of investors including public pension funds in Oklahoma and Mississippi filed an objection to the plan in bankruptcy court. The Pension Benefit Guaranty Corp., the federal corporation that insures pension plans, also has filed an objection.

more...

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

Last trade 91.68 Change +0.06 (+0.07%)

Tomorrow's Economics Releases: US GDP Growth Expected To Have Exceeded 4 Percent In Q3

http://www.dailyfx.com/index.php?option=com_content&task=view&id=5151&Itemid=39

U.S. Gross Domestic Product (3Q P) (13:30GMT, 8:30EST)
Consensus: 4.1%
Previous: 3.8%

Outlook: The advanced GDP estimates for the US will likely be adjusted upward, according to a Bloomberg survey of 66 economists. Third quarter GDP price index figures will likely show a 4.1 percent increase over third quarter 2004. However, Economists who predicted a 3.6 percent fourth quarter growth just over a month ago now predict fourth quarter growth of 3.2 percent. Though the economy was presumable even stronger than expected in the third quarter, the real concern is the waning prognosis for the rest of the year as inflationary estimates sit at 3.9 percent compared to a 2.4 percent estimate last quarter. The Fed has been trying to keep inflation at bay by raising rates to keep higher energy prices from spilling over into goods and services prices. However, in light of cost pressures on corporations, economists have cut their job creation forecasts to 89,000 jobs a month in the fourth quarter compared to last month’s estimate of 190,300 a month. Meanwhile, rising consumer inflation has kept consumers’ spending power down with real average hourly earnings only achieving one increase in the past four months up to and including October.

Previous: Second quarter GDP grew at a strong 3.3 percent fueled by consumer spending and homebuilding, which increased at 3.4 percent and 10.8 percent respectively. The nine quarters leading up to the second quarter 2005 mark the longest streak of the economy growing at an annual rate of over three percent since March 1986, when the economy accomplished a 13-quarter streak. The Commerce Department’s initial estimate for third quarter GDP growth released on October 28th showed the economy grew by 3.8 percent in the third quarter, beating consensus estimates of 3.6 percent as the economy overcame Hurricane Katrina the higher energy costs that it brought. Surprisingly, initial inflation estimates suggest that overall prices actually rose at their slowest pace since second quarter 2003 and wage gains, up 2.3 percent on a year-over-year basis, were their smallest since 1981.

...more...

Last trade 91.47 Change -0.15 (-0.16%)

Settle 91.62 Settle Time 23:38

Open 91.71 Previous Close 91.62

High 91.83 Low 91.46

Last tick: 2005-11-30 10:47:28 ET
30-min delayed quote.

http://today.reuters.com/investing/financeArticle.aspx?type=bondsNews&storyID=2005-11-30T164039Z_01_N30224735_RTRIDST_0_ECONOMY-WRAPUP-2.XML

excerpt:

Trade in the dollar was choppy, with the currency bolstered by the GDP growth data but somewhat shackled as the inflation number was seen as lessening the need for more rate rises.

9:01AM: S&P futures vs fair value: +0.4. Nasdaq futures vs fair value: -1.0.

Futures trade received a slight boost from the better than expected GDP data, and now points toward a flattish open for the indices. An analyst downgrade on Yahoo (YHOO) shares - the second this week - may be serving as some offsetting pressure; UBS lowered the stock's rating to Neutral from Buy. The earnings front, meanwhile, is mixed. Of the four reporters, JBX and MCDTA beat expectations, SFD missed them, and TIF reported in-line.

8:33AM: S&P futures vs fair value: -0.5. Nasdaq futures vs fair value: -2.5.

The stock market continues to head towards a slightly lower start, with investors sticking to the sidelines as the morning's economic data begins to hit the wires. The Q3 GDP revision was recently announced - last quarter, the economy grew 4.3%, stronger than both the 4.0% rise economists had anticipated and the 3.8% preliminary reading.

9:30
Dow 10,889.43 +1.27 (+0.01%)
Nasdaq 2,233.00 +0.29 (+0.01%)
S&P 500 1,257.59 +0.11 (+0.01%)
10-Yr Bond 44.59 -0.23 (-0.51%)
NYSE Volume 9,383,000
Nasdaq Volume 29,153,000

http://www.marketwatch.com/news/story.asp?guid=%7BCD2ECA86-ED54-4221-B046-98529AF88D67%7D&siteid=google

SAN FRANCISCO (MarketWatch) -- US Airways Group will go ahead with its plans to buy 20 of Airbus' next new plane, becoming the first U.S. airline to order the A350.

The delivery of the planes will start in 2011 and run through 2014, according to Airbus, which is 80% owned by European Aeronautic Defence and Space Co. (FR:005730: news, chart, profile) and 20% owned by BAE Systems (UK:BA: news, chart, profile) .

US Airways merged with America West and emerged from bankruptcy in September. Airbus played a key role in financing the merger and the exit from Chapter 11 with a $250 million loan. At the time, US Airways and Airbus also agreed on the A350 deal. See full story.

Both America West and US Airways had Airbus planes already in their fleets. Pilots who fly one of the nine A330 jets will be able to pilot the A350 without the need for more training, Airbus said. The rest of the Airbus aircraft in the combined US Airways fleet are smaller single-aisle jets.

An A350-800 has a list price of $162 million, according to an Airbus spokeswoman. It will be able carry about 253 passengers if the plane is set up with three classes of seating. The current US Airways mainline fleet has 387 aircraft, the carrier said.

more...

http://www.prospect.org/web/page.ww?section=root&name=ViewWeb&articleId=10667

The big question is, “Why is Michael Scanlon smiling?”

There was something uncomfortably incongruous about having a man who had just pleaded guilty to a count of what amounts to public corruption come out of the courthouse smiling as if he had just switched his car insurance to Geico. And it is even harder to imagine when you consider that he is facing five years in jail and will have to part with $19 million in restitution for his crimes. Still, the former press aide to then-Majority whip Tom DeLay was smiling as if he had just won the lottery. And maybe he did, because the plea agreement makes clear that Scanlon, who has been described as a juvenile delinquent by one GOP member of Congress, has apparently made a deal to save himself and sink his party.

Scanlon, of course, is the 35-year-old Hill aide-turned-public relations executive-turned-con man, who teamed up with one-time über-lobbyist Jack Abramoff to shake down unsuspecting Indian tribes for millions of dollars. Abramoff has been indicted and Scanlon has cut a deal. But what sounds like a run-of-the-mill Washington tale of abuse of power in the pursuit of money will turn out to be a story about the moral collapse of a political movement. The Scanlon deal is really the death knell for the Republican Revolution of 1994.

A trial, whether involving Abramoff or whoever else may fall into the abyss created by Scanlon’s cooperation, will present a conga line of superstars from the days of the revolution: DeLay, of course; Ralph Reed; and Grover Norquist, among others. This will not happen just because these people knew each other, did business together, or were friends; it will be because they were central to an enterprise that came to see itself as immune to the usual rules of the game. It is hubris writ large. And that, ultimately, is the basic problem afflicting the GOP today.

snip>

“I don’t really understand some Republicans running around depressed …This is the greatest opportunity we’ve had in our lives,” DeLay said in the aftermath of the very close 2000 election.

“You asked if I feel free? Let me put it this way. I earned capital in the campaign, political capital, and now I intend to spend it,” said George W. Bush said after his re-election victory in 2004. “It is my style.”

more...

:hi: Thanks for the great, uplifting news, 54anickel!!! :hi:

:kick::kick::kick:

Dow 10,910.49 +22.33 (+0.21%)
Nasdaq 2,238.32 +5.61 (+0.25%)
S&P 500 1,259.28 +1.80 (+0.14%)
10-Yr Bond 4.472 -0.10 (-0.22%)

NYSE Volume 457,446,000
Nasdaq Volume 400,760,000

10:00AM: Inching higher, the market's major averages maintain their solid stances and are supported by gains in nine of ten economic sectors. Early leadership rests within the Energy sector, which has risen 0.8% despite the continued pullback in energy prices. Crude has currently given up 0.2% and sports a $56.40 per barrel pricetag, but traders may be looking towards the EIA's latest inventory report - due at 10:30 - before increasing selling efforts. Challenged by relative weakness in some bank issues, Financials is the only sector sitting in the red. Separately, the November Chicago PMI report checked in at 61.7, higher than the 60.0 economists had expected and versus last month's 62.9.NYSE Adv/Dec 1624/906, Nasdaq Adv/Dec 1422/899

9:40AM: The stock market started the session on positive turf, as investors continue to digest the day's first dose of economic data. Better than expected Q3 GDP growth - revised to 4.3% (consensus 4.0%) versus the 3.8% preliminary reading - alongside a slightly lowered price deflator is bullish in that the inflation number was lowered while growth trends were raised. Business investment, housing, and consumer spending numbers were all revised higher, and the report, though dated, reveals strong economic momentum across the board. The Treasury market similarly took a bullish cue and sent the 10-year (+01/32) down to a 4.47% yield. On the other side of the aisle, Yahoo's (YHOO) second downgrade of the week and Novellus' (NVLS) slightly lowered forcast for the current quarter may present some offsetting pressure today.

http://www.321gold.com/editorials/daughty/daughty113005.html

- Being in a particularly bad mood, I was hoping that the Federal Reserve had increased Total Fed Credit again this week so that I would have an excuse to go up there and stand on the sidewalk outside their offices and yell "You bastards are killing our money by constantly creating more credit, which becomes more debt!" I had planned to dare Alan Greenspan to come out here and get a punch in the nose from me, and then maybe this new guy, Ben Bernanke, will look out the window and see me knocking the hell out of Greenspan, and maybe he would say to himself "Wow! I better start acting like I got some smarts, or that Mogambo idiot is liable to hit ME in the old bazoo, too!" But, alas, the Fed reduced Total Fed Credit by $2.3 billion last week, which I will call "piddly", just to add a little sardonic ugliness to the whole thing.

On the other hand, the Treasury, bagman for the (being as disrespectful as I can manage) fascist morons in Congress, took fiscal insanity to a new level of, ummm, insanity, and exploded the national debt by a cool $21 billion. In one week! That works out to an extra $210 dollars in debt for every person in this whole country that has a non-government job! In one week! But let ME go out and put my little nuclear family unit into $210 more debt in a whole MONTH, much less a lousy week, and suddenly my wife gets all weird on me and is yelling at me about how we don't NEED another layer of razor-wire in the backyard (yes we do) or we don't NEED to be entertaining my hoodlum friends at Harry's Hothouse of Hooch and Hootchie Cootchie (yes we do) and wanting to know if there is something wrong with my stupid little brain that I cannot comprehend that no matter how much she yells at me (yes there is).

But this is not about how I never have any fun or have nice things, but about how Congress increased the national debt by $80 billion in just the first 25 days of this month ($3.2 billion per day) and how America is only about $100 billion from reaching the limit on the national debt, again, which means that the jackasses of Congress will simply raise the limit again so that their insane spendthrift ruination of the United States can continue unabated. But let me miss a few payments on my credit card, and the credit card company gets real testy about raising my credit limit a lousy few hundred bucks!

I don't know if you remember, but they raised the limit on the national debt, from $7.384 trillion to $8.184 trillion, less than a year ago! When George Bush took over, the national debt was about $5.7 trillion. So in five years he and the Congress borrowed and spent $2.6 trillion, which comes out to $26,000 for every non-government worker in the whole freaking country! In terms of the proverbial "every man, woman and child", $2.6 trillion it is a more manageable $8,950 each. But this is not TOTAL debt, but how much MORE debt!

And anyway, I do not like the term "every man, woman and child" because, for one thing there are very few kids who make any money at all, and if you try to, you know, subcontract the damn kids out to some Asian sweat-shop for a little piece-work income, they and the busybody mother and their snotty teachers are all calling up the police, like it is some big emergency or something, and now it's ME that's in trouble, like I did something wrong in trying to turn the expense of having kids into a profit center! "It's the American way!" I tell them! It falls on deaf ears.

more...

didn't they do this last month and weren't they all "surprised"?

http://today.reuters.com/investing/financeArticle.aspx?type=bondsNews&storyID=2005-11-30T145432Z_01_N30339305_RTRIDST_0_ECONOMY-PAYROLLS-DERIVATIVES.XML

NEW YORK, Nov 30 (Reuters) - Derivatives auction participants on Wednesday predicted November U.S. nonfarm payrolls will exceed the overall expectation of economists.

The auction produced an "implied market forecast" of a seasonally adjusted gain of 223,000 nonfarm jobs in November.

The median forecast of 30 economists polled by Reuters on Nov. 23 predicted November payrolls rose 210,000 after a gain of 56,000 in October. October's figure will likely be revised.

The U.S. Labor Department is scheduled to release the November jobs report on Friday at 8:30 a.m. EST (1330 GMT).

Investors hedging other positions and traders betting on the outcome of the jobs report participate in the auction.

...more...

10:39am 11/30/05 MATSUSHITA: 727 EMPLOYEES WORK AT TROY, OHIO FACILITY

10:38am 11/30/05 MATSUSHITA TO DISCONTINUE PICTURE DISPLAY OPS IN TROY, OHIO

10:36am 11/30/05 MATSUSHITA: NO REVISION OF FINANCIAL FORECASTS FOR FY06

10:36am 11/30/05 MATSUSHITA: OPS CLOSURE PART OF SHIFT TO ASIAN, CHINA MRKTS

Let us not reverse a Custer Decision!

http://www.marketwatch.com/news/story.asp?guid=%7B1807F424%2D286F%2D4BE2%2D88DC%2DDB5CB4BD40B0%7D&siteid=mktw

WASHINGTON (MarketWatch) - President Bush on Wednesday defended the administration's war strategy, rejecting calls to set a timetable to begin withdrawing troops amid growing public unease over Iraq.

"We will never back down, we will never give in, and we will never accept anything less than complete victory," Bush said in a speech at the U.S. Naval Academy in Annapolis, Md.

Ahead of the speech, the White House released a 35-page document entitled "National Strategy for Victory in Iraq." The document asserts that the strategy is working, but that victory will take time.

Recent polls show Bush's popularity at the lowest level of his tenure amid ongoing violence in Iraq and a mounting death toll for U.S. troops.

Bush rejected arguments that the war in Iraq has proven a distraction from more imminent terrorist threats.

...more...

document explaining their strategy for failure? I'm sure the first couple of pages are filled with patriotic BS to fire up support, since they know damn well most people won't read much beyond that. Who the hell has time? We're all working OT and/or multiple jobs to make ends meet.

Dow 10,885.83 -2.33 (-0.02%)
Nasdaq 2,237.25 +4.54 (+0.20%)
S&P 500 1,256.51 -0.97 (-0.08%)
10-Yr Bond 44.88 +0.06 (+0.13%)
NYSE Volume 818,549,000
Nasdaq Volume 686,911,000

11:30AM: Bouncing back to their opening levels, the indices have taken back their early gains. Sector standing has similarly improved, and buyers have sent each but Financials (-0.3%) and Utilities (-0.5%) back north. Within the Dow, about two-thirds of constituents are on the rise. Leading the way higher is McDonald's (MCD 34.70 +0.77), up 2.3% and trailed by Honeywell's (HON 37.26 +0.48) gain. As for the lagging minority, General Motors (GM 22.36 -0.64) and Walt Disney (DIS 24.92 -0.16) have emerged as some of the average's sorest spots. With respect to the latter, there are reports today that the company has narrowed its list of candidates regarding a potential divesture of its underperforming radio assets. Briefing.com recommends DIS as a holding for active investors, and we view the impending sale - which may come by year-end - as a positive for the stock.NYSE Adv/Dec 1921/1126, Nasdaq Adv/Dec 1761/1013

11:00AM: Paring some of their early gains, the equity market's majors have headed south following the mixed-bag of energy inventory data. Crude futures have rebounded, but the uptick in price is modest and still leaves the commodity well off of its August high. Flat-line status maintained by five of the ten sectors helps to stunt the broader market's advance; a 0.7% rise in Energy serves as the only crutch, and is challenged by the influential Financial sector's 0.4% decline. The banking industry's matching loss has taken the sector lower, with the bond market's return to the red not helping matters. NYSE Adv/Dec 1871/1095, Nasdaq Adv/Dec 1657/1043

The popular idea that America is one step smarter and more sophisticated than its rivals is a dangerous myth, and a threat to the global economy.

http://www.msnbc.msn.com/id/10206250/site/newsweek/

Issues 2006 - For most of the last 50 years, globalization has been a win-win proposition, making America richer while lifting hundreds of millions in the developing world out of poverty and despair. Recently, however, it has begun to operate differently, undermining U.S. welfare while creating imbalances likely to end in a global economic crisis.

In this new mode, globalization is tilting the world like a giant sliding board game on which the "flattening" of old barriers is accelerating the transfer of the supply side of the U.S. economy to the rest of the world, especially Asia. Take Boeing as an example. Long America's leading exporter, it symbolizes the kind of high-tech leadership on which the future of the U.S. economy is widely said to depend. After

losing market share to the European Airbus in recent years, Boeing responded by developing the new 787 Dreamliner, which is gathering record orders. Yet these sales may not add a lot to the U.S. economy because much of the work—including production of the critical carbon-fiber wings that Boeing always insisted would be kept at home—will be done in Japan.

Even more telling is the example of the semiconductor king, Intel. When economists and political leaders say American industry should concentrate on producing very-high-technology products where it has a clear comparative advantage, Intel's chips are what they have in mind. Yet company executives recently told a presidential advisory panel that under present circumstances they must consider building more of their new factories abroad. Over the next 10 years, they explained, the cost of running a semiconductor factory in the United States could be $1 billion more than that of running it abroad.

That there is something odd here is not yet widely acknowledged. Indeed, most business, academic, media and political leaders continue to insist that globalization is proceeding smoothly, making the world rich, more democratic and more peaceful. President Bill Clinton called globalization America's strategy, and President George W. Bush describes the American economy as the "envy of the world." Nor is this view entirely unjustified. U.S. GDP and productivity growth are the highest in the developed economies, while inflation, unemployment and interest rates are among the lowest.

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paid well.

and welcome :hi: AX10.

I work well within the "Capitalist System" and I know for a fact it is only the wealthiest who are doing well at this time.

The "bottom 90%" has either not gained, or lost since 2001.

and brokerage firms are getting their bonuses. It doesn't care if you starve to death.

That is capitalism at its harshest.

Dow 10,879.19 -8.97 (-0.08%)
Nasdaq 2,236.55 +3.84 (+0.17%)
S&P 500 1,256.21 -1.27 (-0.10%)
10-Yr Bond 4.488 +0.06 (+0.13%)

NYSE Volume 827,270,000
Nasdaq Volume 694,823,000

11:30AM: Bouncing back to their opening levels, the indices have taken back their early gains. Sector standing has similarly improved, and buyers have sent each but Financials (-0.3%) and Utilities (-0.5%) back north. Within the Dow, about two-thirds of constituents are on the rise. Leading the way higher is McDonald's (MCD 34.70 +0.77), up 2.3% and trailed by Honeywell's (HON 37.26 +0.48) gain. As for the lagging minority, General Motors (GM 22.36 -0.64) and Walt Disney (DIS 24.92 -0.16) have emerged as some of the average's sorest spots. With respect to the latter, there are reports today that the company has narrowed its list of candidates regarding a potential divesture of its underperforming radio assets. Briefing.com recommends DIS as a holding for active investors, and we view the impending sale - which may come by year-end - as a positive for the stock.NYSE Adv/Dec 1921/1126, Nasdaq Adv/Dec 1761/1013

11:00AM: Paring some of their early gains, the equity market's majors have headed south following the mixed-bag of energy inventory data. Crude futures have rebounded, but the uptick in price is modest and still leaves the commodity well off of its August high. Flat-line status maintained by five of the ten sectors helps to stunt the broader market's advance; a 0.7% rise in Energy serves as the only crutch, and is challenged by the influential Financial sector's 0.4% decline. The banking industry's matching loss has taken the sector lower, with the bond market's return to the red not helping matters. NYSE Adv/Dec 1871/1095, Nasdaq Adv/Dec 1657/1043

(pay no attention to the man behind the curtain)

http://www.marketwatch.com/news/newsfinder/pulseone.asp?dateid=38686.4853170023-852742553&siteID=mktw&scid=0&doctype=806&property=symb&value=&categories=&

NEW YORK (MarketWatch) -- Shares of Chiquita Brands (CQB) slid almost 3% to $21 on Wednesday after the Cincinnati-based company said it expects to record a charge of between $13 million and $18 million in the fourth quarter related to flood damage to its banana farms in Honduras from Tropical Storm Gamma. The company expects the affected acreage in Honduras to be out of production for a minimum of several months, and it said the problems have already created product shortages in North America through the first quarter of 2006.

Dow 10,865.75 -22.41 (-0.21%)
Nasdaq 2,235.40 +2.69 (+0.12%)
S&P 500 1,255.75 -1.73 (-0.14%)
10-Yr Bond 4.498 +0.16 (+0.36%)

NYSE Volume 958,078,000
Nasdaq Volume 798,421,000

12:05PM: Heading into the lunch hour, the equity market's major averages have fallen out of the narrow trading range that had confined them this morning. A better than expected revision to Q3 GDP, alongside a slight downward revision to the price deflator, helped catalyze some modest bullishness, but consolidation of the market's five week run and a mixed report from the EIA has tapered buying action. Leadership is lackluster, with sector standing split down the middle and Energy's 0.6% serving as the strongest support. Losses, similarly kept in check, are led by the influential Financial sector's 0.6% decline. Banks pose the weightiest challenge, off about 1% alongside a declining Treasury market. Following the GDP report, bonds took a bullish cue - but returned to the red after the prices paid component in the November Chicago PMI spiked 18% and the headline number (61.7 versus the 60.0 consensus) remained relatively strong. Utilities, the other rate-sensitive sector, have dipped 0.6%. Down six ticks, the 10-year presently yields 4.50%. While there is a dearth of corporate news today, the Technology sector has gotten some attention. Yahoo (YHOO 40.29 +0.10) shares were downgraded for the second time this week, Citigroup raised its FY06-07 estimates on Apple (AAPL 67.79 -0.31), and Novellus (NVLS 24.58 +0.50) issued a warning for the current quarter. Aside from the news having little effect on respective shares, some broad-based buying and relative strength in semiconductors has pushed the sector 0.3% higher. Languishing auto issues, led by Ford (F 8.25 -0.28) and ahead of November auto sales data scheduled for today, pressure the Discretionary sector. Despite reports of strong holiday sales delivered this week, retailers remain red and present further downside. Regarding Ford, Standard & Poor's Ratings Services said Tuesday it could lower the auto maker's credit rating by more than one notch, below its current "junk status," following Q4 results. Fellow Dow component and discretionary issue Disney (DIS 24.84 -0.24) also trends lower today. There are reports out that indicate the company has narrowed its list of candidates for its potential divesture of underperforming radio assets. Briefing.com continues to recommend DIS as a holding for active investors, and we view the impending sale - which may come by year-end - as a positive for the stock. Relative strength in restaurants, casinos, and apparel helps limit the sector's slide, though. NYSE Adv/Dec 1780/1314, Nasdaq Adv/Dec 1686/1146

GM junkiest?

Gotta run for the day. Have a good one UIA and all!

12:12pm 11/30/05 DEC GOLD FALLS $3 TO $496.10/OZ IN AFTERNOON DEALINGS

12:12pm 11/30/05 DEC COPPER UP 1.2% AT $2.065/LB AFTER A RECORD $2.075

1:06pm 11/30/05 DEC GOLD DOWN $4.60 AT $494.50/OZ IN LAST HALF HR OF TRADING

1:06pm 11/30/05 DEC GOLD SET TO CLOSE UP OVER $2 ON WK, UP OVER $27 ON MONTH

1:52pm 11/30/05 DEC GOLD CLOSES AT $494.60/OZ, DOWN $4.50 FOR THE DAY

1:52pm 11/30/05 DEC GOLD ENDS UP 0.5% ON WK, UP 5.9% ON MONTH

1:42pm 11/30/05 DEC SILVER FALLS 1.6C TO CLOSE AT $8.28/OZ

1:42pm 11/30/05 DEC SILVER ENDS UP 1.8% ON WK, UP 9.2% ON MONTH

1:39pm 11/30/05 JAN PLATINUM CLOSES AT $980.40, DOWN $22.80, OR 2.3%

1:39pm 11/30/05 JAN PLATINUM ENDS DOWN 0.4% ON WK, UP 3.9% ON MONTH

1:39pm 11/30/05 DEC COPPER CLOSES AT $2.075/LB, UP 1.7% ON DAY

1:39pm 11/30/05 DEC COPPER ENDS UP 5.4% ON WEEK, UP 14.6% ON MONTH

http://today.reuters.com/investing/financeArticle.aspx?type=bondsNews&storyID=2005-11-30T174406Z_01_N30255115_RTRIDST_0_ECONOMY-CITIES.XML

excerpting past the spin:

The New Orleans-Metrairie-Kenner, Louisiana, area saw its non-seasonally adjusted October unemployment rate fall to 15.5 percent from 16.5 percent in September. The jobless rate was 5.8 percent in August.

Hurricane Katrina struck the area on August 29.

According to a separate survey, the number of employed persons in the New Orleans area rose by 10,600 to 408,900. However, this was still 33.8 percent, or 208,700 jobs, below October 2004 employment levels.

The Baton Rouge, Louisiana, area's October unemployment rate fall to 9.7 percent from 11.2 percent in September. It was 6.0 percent in August. In the Houma-Bayou Cane-Thibodaux area of Louisiana, the October unemployment rate fell to 9.9 percent from 10.8 percent in September 2004 after it was 4.8 percent in August.

But the Lake Charles, Louisiana, area, one of the communities in the path of Hurricane Rita, saw its October unemployment rate spike to 16.2 percent from 7.6 percent in September and 5.7 percent in August.

...more...

1pm
Dow 10,878.95 -9.21 (-0.08%)
Nasdaq 2,240.29 +7.58 (+0.34%)
S&P 500 1,256.47 -1.01 (-0.08%)
10-Yr Bond 44.96 +0.14 (+0.31%)
NYSE Volume 1,111,693,000
Nasdaq Volume 930,310,000

12:30PM: Exacerbated weakness in the Financials sector, which has now lost nearly 1%, coupled with a lack of spirited leadership leaves the market lower. Blue chips still sit below the unchanged mark, but the tech-heavy Nasdaq hangs on to a modest gain as the Technology sector (+0.3%) similarly holds steady. Biotech issues also lend some support to the Composite, but the group's rise isn't enough to counter selling pressure within the Healthcare sector. Within it, the healthcare services industry (CMX, ESRX, and RX are the weakest links) fares worst. Year-to-date, the group has been the sector's second-best performer and one of the market's brightest spots - and registers a 30.1% gain.NYSE Adv/Dec 1726/1394, Nasdaq Adv/Dec 1685/1170

(yesterday it was a plant in California)

http://today.reuters.com/investing/financeArticle.aspx?type=bondsNews&storyID=2005-11-30T175505Z_01_WEN5265_RTRIDST_0_MINERALS-ALCAN-URGENT.XML

NEW YORK, Nov 30 (Reuters) - Canadian aluminum producer Alcan Inc. (AL.TO: Quote, Profile, Research) plans to close its plastic packaging operation in Centralia, Illinois, as part of an broader realignment of its pharmaceutical packaging segment.

The Centralia operation, which produces packaging for the pharmaceutical and personal care markets, will close by March 1, 2006. Its production will transfer to other Alcan Packaging plastics plants in North America, the company said.

The closure will affect all 221 employees at the plant, the company said.

Dow 10,852.70 -35.46 (-0.33%)
Nasdaq 2,232.67 -0.04 (-0.00%)
S&P 500 1,253.03 -4.45 (-0.35%)
10-Yr Bond 4.508 +0.26 (+0.58%)

NYSE Volume 1,330,743,000
Nasdaq Volume 1,145,615,000

1:30PM: Little has changed within the equity market, which continues to leave the indices trading in mixed fashion and encircling the flat line. While the bond market still trends lower, it's improved somewhat. The benchmark 10-year note (-04/32) presently yields 4.49%. At the back end of the curve, the 30-year (-07/32) offers 4.70%, while, at the front end, the 5-year (-04/32) yields 4.42%. As a reminder, the Fed's Beige Book is slated for release at the top of the hour, and is apt to be scrutinized for comments regarding inflation.NYSE Adv/Dec 1826/1354, Nasdaq Adv/Dec 1789/1131

1:00PM: The Nasdaq edges higher while its counterparts approach the flat line. The Materials sector has slid lower, sporting a 0.5% decline for which aluminum (AA 27.37 -0.50) and gold (NEM 46.52 -0.80) can be largely attributed. It's the 0.8% loss in Financials, though, that continues to cap the overall market's rise. Fannie Mae (FNM 48.27 -1.16) demonstrates the greatest degree of relative weakness, but selling pressure is widespread and leaves nearly the entire sector submerged. Of the S&P's 13 financial industries, only specialized financial services (i.e., MCO) remains on gaining ground. Of 84 individual issues, only a fifth trend higher and just two - ET and FII - have booked more than 1% today. NYSE Adv/Dec 1653/1478, Nasdaq Adv/Dec 1681/1223

Dow 10,867.66 -20.50 (-0.19%)
Nasdaq 2,236.69 +3.98 (+0.18%)
S&P 500 1,254.95 -2.53 (-0.20%)
10-Yr Bond 4.510 +0.28 (+0.62%)

NYSE Volume 1,412,179,000
Nasdaq Volume 1,210,388,000

2:00PM: Fading further, the Dow hits its worst level of the session. Two-thirds of its members now levy losses - the greatest of which is imposed by General Motors (GM 22.73 -0.77). Alcoa (AA 27.37 -0.50) and JP Morgan (JPM 38.45 -0.51) have also fallen more than one percent, and help drag their respective sectors - Materials (-0.5%) and Financials (-1.0%). McDonald's (MCD 34.17 +0.24) and Honeywell (HON 37.10 +0.32) still stand as the brightest spots, but their relative strength is not enough to offset broad-based selling pressure. NYSE Adv/Dec 1738/1457, Nasdaq Adv/Dec 1737/1207

Dow 10,844.93 -43.23 (-0.40%)
Nasdaq 2,235.07 +2.36 (+0.11%)
S&P 500 1,252.94 -4.54 (-0.36%)
10-Yr Bond 45.04 +0.22 (+0.49%)
NYSE Volume 1,724,347,000
Nasdaq Volume 1,459,398,000

3:00PM: Selling efforts increase; the S&P and Dow each dig new lows for the day. The Nasdaq still outperforms, but hovers just above the unchanged mark as the Tech sector gives back nearly all of the gain it had registered today. The loss of that, Financial's continued decline, and the negative standing of every other sector besides Energy (+0.8%) has enabled the market's slide. At the same time, though, losses remain relatively well in check: Financial's is the only loss to have exceeded 1.0%. Bonds, meanwhile, have stood static. The 10-year, down five ticks, still yields 4.50%. NYSE Adv/Dec 1687/1555, Nasdaq Adv/Dec 1651/1340

3:33
Dow 10,839.89 -48.27 (-0.44%)
Nasdaq 2,234.86 +2.15 (+0.10%)
S&P 500 1,252.68 -4.80 (-0.38%)
10-Yr Bond 45.00 +0.18 (+0.40%)
NYSE Volume 1,850,434,000
Nasdaq Volume 1,549,799,000

3:25PM: As the market moves into the final half hour of trading, it slides further south. While the blue chip averages and seven of ten sectors are booking losses, the market's breadth does not similarly reveal a bearish bias. On the NYSE, advancing issues hold a 17-to-15 edge of declining counterparts; on the Nasdaq, advancers outpace decliners by a 17-to-13 margin. NYSE Adv/Dec 1726/1531, Nasdaq Adv/Dec 1684/1332

preliminary closing numbers:

Dow 10,805.55 -82.61 (-0.76%)
Nasdaq 2,232.70 -0.01 (-0.00%)
S&P 500 1,249.51 -7.97 (-0.63%)
10-Yr Bond 4.500 +0.18 (+0.40%)

NYSE Volume 2,132,617,000
Nasdaq Volume 1,869,701,000

Whoopsie!

They might have to put off buying that Dummer H3 until next year.

http://www.marketwatch.com/news/story.asp?guid=%7B60C630A4%2D4C0B%2D4615%2D8571%2DBC5D241EB1B5%7D

MEXICO CITY (MarketWatch) -- The Mexican government has suspended the local unit of German engineering concern Siemens AG (SI) from bidding on public projects for three years and nine months, saying the company used false information and documents in a dispute over a hospital maintenance contract.

The Ministry of Public Functions, formerly called the comptroller general's office, said it fined Siemens $90,000 in addition to the ban.

Siemens officials weren't immediate available to comment Wednesday on the decision.

The ministry said in a press release Tuesday that Siemens falsely declared it was up-to-date in its tax obligations when it signed a 2002 contract awarded by the Health Ministry for hospital equipment maintenance.

In June of this year, the government slapped Siemens with a 90-day suspension and $6,000 fine, but the company appealed, presenting a document to show it had complied with its tax filings.

A Mexico City tax official then denied having issued or signed the document presented by the company as proof of compliance, and the Public Function Ministry imposed the harsher penalty.

...more...

4:10pm 11/30/05 MITTAL STEEL USA: 800 EMPLOYEES WORK AT WEIRTON FACILITY

4:08pm 11/30/05 MITTAL STEEL USA DOESN'T PLAN WEIRTON, W. VA. PLANT RESTART

4:09pm 11/30/05 MITTAL STEEL USA: WEIRTON, W.VA. PLANT IDLED SINCE JUNE

Dow 10,805.87 -82.29 (-0.76%)
Nasdaq 2,232.82 +0.11 (+0.00%)
S&P 500 1,249.48 -8.00 (-0.64%)
10-Yr Bond 45.00 +0.18 (+0.40%)
NYSE Volume 2,364,724,000
Nasdaq Volume 1,876,398,000

blather to come...

The indices finished the session in mixed fashion, with blue chips in the red and at their worst levels. The Nasdaq, meanwhile, closed just on top of the flat line. In the early going, a better than expected revision to Q3 GDP growth (+4.3% versus the 3.8% prelim) and a downward revision to the price deflator reflected lowered inflation coupled with increased growth trends. Buyers took a bullish cue, but sellers stepped in as consolidation efforts took root. The November Chicago PMI report revealed that manufacturing trends remain strong, but the market perhaps focused upon the price-paid portion, which rose 18% and to its highest level in over 25 years. The data is regional, though, and preceded tomorrow's ISM report that will provide a glimpse at manufacturing on the national level. A lack of leadership and another dismal day for General Motors (GM 21.89 -1.10) sent the market further south. By the close, the Energy sector (+0.1%) gave back nearly all of its session-leading gain. The EIA's latest energy inventory stats were mixed, and showed a less than expected drawdown in crude, an unanticipated drop in gasoline, and a better than expected build in distillates supply. Prices across the energy complex jumped - though they remain well off of their highs - but the Energy sector was not immune to the wide-spread selling effort that left every other sector lower. Financials stood as the session's laggard, levying a heavy 1.4% loss largely on account of profit-locking and languishing banks. Action within the bond market did not bode well for rate-sensitive areas; Utilities (-0.9%) also suffered today. That market appeared to have taken a bearish cue from the round of economic data, sending the benchmark 10-year note down five ticks and to a 4.49% yield. The influential Technology sector relinquished its gain this afternoon, and with that went the tech-heavy Nasdaq. Semiconductors provided some support, but were unable to keep the sector on solid ground. Although there was not much corporate news, there was some within the sector. Yahoo (YHOO 40.23 +0.04) shares were downgraded for the second time this week, Citigroup raised its FY06-07 estimates on Apple (AAPL 67.82 -0.28), and Novellus (NVLS 24.67 +0.59) issued a warning for the current quarter. The news had little to no effect on the respective stocks, though. GM's plunge and a drop in Ford (F 8.13 -0.40) shares, following Standard & Poor's assertion that it may cut the auto maker's credit rating below its current "junk status," took the Consumer Discretionary sector south. Despite reports of strong holiday sales reports this week, and ahead of November same-store sales reports that will stream in tomorrow, retailers contributed further downside. Fellow Dow component and discretionary issue Disney (DIS 24.93 -0.15) also slipped today, accompanying nearly all of the average's constituents on losing ground and upon news that the company has narrowed its list of candidates for a potential divesture of its underperforming ABC radio division. As a side note, Briefing.com continues to recommend DIS as a holding for active investors, and we view the impending sale - which may come by year-end - as a positive for the stock. Separately, the Fed released its beige Book today. Content, overall, did not reveal much that was not already understood by the market. NYSE Adv/Dec 1581/1726, Nasdaq Adv/Dec 1770/1292

a feather, not eighty-some stinkin' points in one day! Still within the channel, but easily a single days worth of a drop away. What, something like only some 50 points to play with on the DOW?

Still plenty of time for that year end rally and the big bonus!