STOCK MARKET WATCH, Thursday 27 April

BOOMING GLOBAL ECONOMY, DOLLAR TROUBLES AND CHINA

Stellar economic reports this morning sent stock prices higher and bonds lower as interest rates continue their rise to cool down the red-hot global economy. Metals prices continue their relentless march higher as global demand outstrips available supply and the finger pointing blame game continues to rage over oil and gasoline prices. The durable goods report came out before the opening bell for stocks and put traders in a frenzy by increasing more than three times higher than expectations followed by new home sales reported with the biggest increase in thirteen years. Today’s unexpectedly strong economic data comes on the heels of better than expected existing home sales and a four-year high in consumer confidence. Bonds and the dollar have been trashed recently as the global rush for tangible goods continues unabated.

Durable goods orders were expected to show an increase of 1.8%, but instead rose by 6.1%; excluding transportation items (call that Boeing) orders were higher by 2.8%. At the announcement, stock futures sold-off because the market is pricing-in more rate increases by the Federal Reserve, but by the opening bell stock futures reversed to push stock prices higher at the open. The U.S. dollar opened higher, flip-flopped around the neutral level, and now continues to sink lower as the day progresses.

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The Real Deal

It could well be that some American companies are spending to increase production, but that is not the main driver of the explosion in durable goods orders. Two weeks ago I put two and two together when I read about the huge entourage that was here from China on a buying binge. They wanted to give U.S. business a good “warm and fuzzy” as a precursor to the visit by Chinese President Hu Jintao. On the surface it looks like China is putting their best foot forward to improve the balance of trade with the U.S., but this is a precursor to some much bigger problems down the road.

The Chinese realize that excessive U.S. consumption cannot continue forever. They are working feverishly behind the scenes to develop their own consumer base and also develop a consumer base aside from the USA. Bill Murphy has made a strong point recently about China working to stockpile commodities such as copper, silver, lumber, steel, and everything else they will need to continue as the global leader in manufacturing. They are stockpiling commodities and at the same time continuing their build of infrastructure. The big increase in durable goods orders is all about items that are going to China. We cut them off on the purchase of Unocal, so they are answering by buying everything else they can. Not only are they buying the metals, they are also buying soft commodities such as cotton and soybeans.

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

I believe firmly that we live in an era of managed markets…the financial system depends on it

He has an insightful take on the grand relationship between the fiat currency, silver, gold and derivatives.

http://www.prudentbear.com/archive_comm_article.asp?category=Guest+Commentary&content_idx=53883

Let’s look at the money and the mouth to see where the money is headed and where the mouth is loudest. Congress and pundit pronouncements center on the strength of the US economy and the sunshiny future for America. But investment flows, public, private and international, suggest something very different. No example is clearer than the two recently unveiled massive preemptive actions undertaken ahead of the coming wave of insolvency. This is an issue of global importance as monetary expansion slows in the US, Australia, Europe and Japan –thus, globally. As the cheap money tide recedes you will be shocked to see many have been swimming without bathing suits. On the eve of our 16th quarter point Fed hike it is hard to argue the direction of rate change. Less cash for rolling over debt and higher carry costs portend trouble. The responses?

WASHINGTON, April 21(2006) - The World Bank announced today that the Multilateral Debt Relief Initiative has been approved, clearing the way for cancellation of International Development Association (IDA) debt to some of the world’s poorest countries. Starting on July 1, 2006, IDA is expected to provide more than US$37 billion in debt relief over 40 years. Voting on the initiative remains open until April 28.<1>

snip>

In the view of Nancy Rapoport, dean of the University of Houston Law Center and a bankruptcy expert…. "Fewer people are going to be able to get out of debt under this new bankruptcy law," she says.<2>

snip>

I would argue that there is symbolic value in these two decisions. Taken as rational and cut from the same cloth - easily argued but not without possible merit - these laws represent global economic shifts rather nicely. As S&P500 profits de-link from US macroeconomic performance, and offshore revenue and profit rise toward and above US revenue and profit, changes are in the offing. Different needs and strategies for the US and the rest of the world emerge and are passed into law and policy.

The passages of the World Bank Multilateral Debt Forgiveness Initiative and the Bankruptcy Abuse Prevention Act of 2005 signal divergence between the directions of money and the running of mouths. The future for American consumers involves the quest to repay debt. The future for offshore areas may involve the extension of debt to facilitate spending. The inevitable, approaching and long overdue reduction in US debt-fueled consumption will be a huge challenge to the global economy. The extension of debt to other areas will be an essential component of weathering the storm. Producers the world over will face decline, default and trouble in their top market. Credit provision to other buyers will be essential. Meanwhile, collecting on the old debt granted to American households will become paramount. This low road is well traveled by less developed countries. It may well be clogged with refugees from over leveraged American consumers.

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8:30 AM Initial Claims 04/22
Briefing Forecast 305K
Market Expects 305K
Prior 303K

10:00 AM Help-Wanted Index Mar
Briefing Forecast 39
Market Expects 39
Prior 39

8:29 AM ET 4/27/06 U.S. CONTINUING CLAIMS 4-WEEK AVERAGE FALLS TO 5-YEAR LOW

8:29 AM ET 4/27/06 U.S. CONTINUING JOBLESS CLAIMS UP 22,000 TO 2.5 MILLION

8:29 AM ET 4/27/06 U.S. INITIAL CLAIMS 4-WEEK AVERAGE UP 2,750 TO 308,500

8:29 AM ET 4/27/06 U.S. WEEKLY INITIAL JOBLESS CLAIMS UP 11,000 TO 315,000

http://www.marketwatch.com/News/Story/Story.aspx?dist=newsfinder&siteid=mktw&guid=%7BAA32AF09-FB5A-4486-8E27-ED5DF09DB68D%7D&symbol=

WASHINGTON (MarketWatch) -- First-time applications for state unemployment benefits rose by 11,000 last week to a seasonally adjusted 315,000, the Labor Department said Thursday.

Initial claims have been in a tight band between 300,000 and 320,000 for the past nine weeks.

The four-week average of new claims - which smoothes out weekly fluctuations due to one-time events such as weather or holidays - rose by 2,750 to 308,500.

Meanwhile, the number of people receiving jobless benefit checks rose by 22,000 to a seasonally adjusted 2.5 million in the week ending April 15, the week corresponding to the monthly survey for the jobs report.

The four-week average of continuing claims fell by 3,250 to a five-year low of 2.43 million.

The insured unemployment rate - the percentage of those eligible for benefits who are receiving them -- stayed at 1.9%.

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Not too worried about her but this will affect my daughters, too.

Those envelope stuffer jobs must be paying well!

http://today.reuters.com/investing/financeArticle.aspx?type=bondsNews&storyID=2006-04-27T140106Z_01_NAT002074_RTRIDST_0_ECONOMY-HELPWANTED-URGENT.XML

NEW YORK, April 27 (Reuters) - The number of help-wanted postings in major U.S. newspapers dipped in March but online want ads soared, a private research group said on Thursday.

The Conference Board said its measure of help-wanted advertising volume fell one point to 38 last month from a reading of 39 in February. The measure was at 39 one year ago.

In contrast, The Conference Board said online want-ad volume rose sharply last month to 2.401 million, a 21 percent increase from February, or 1.986 million ads.

"If the economy cools a little, the labor market may also cool," said Ken Goldstein, a labor economist at the Conference Board. "Even if energy prices were not going through the roof, the biggest road block would still be the cost of a new hire."

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10:18 AM ET 4/27/06 U.S. MARCH HELP-WANTED INDEX FALLS TO 38 VS. 39

LONDON (Reuters) - Oil fell below $72 on Thursday, deepening losses from the previous session, as worries over U.S. gasoline supplies eased slightly ahead of the summer driving season.

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U.S. gasoline stocks fell 1.9 million barrels last week, marking the eighth consecutive weekly decline, government data showed on Wednesday (). Analysts had expected a fall of 2.6 million barrels.

"The drop in gasoline stocks was smaller than expected. And given that refiners are cranking up runs, the market could not hope for a significantly large gasoline draw in the future," said Keith Sano, the manager at the commodity business unit of Sumitomo Corp. in Tokyo.

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"In the next one or two years, unless there is a very big surprise, we don't expect oil prices to fall from current levels," said International Energy Agency Chief Economist Fatih Birol in a speech on Wednesday in Istanbul.

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WASHINGTON - A Senate committee Wednesday announced an investigation into taxes paid by major oil companies and asked the Internal Revenue Service for the companies' tax returns.

The Senate Finance Committee promised "a comprehensive review of the federal taxes paid" by the 15 largest oil and gas companies. The committee said it wanted to inspect their tax returns for the last five years.

Sen. Charles Grassley (news, bio, voting record), R-Iowa, the committee's chairman, said the panel was concerned about high profits and executive compensation at oil companies.

"I want to make sure the oil companies aren't taking a speed pass by the tax man," said Grassley in a statement.

more

DALLAS - ConocoPhillips, the nation's third-largest oil and gas producer, said Wednesday profit rose 13 percent as stronger exploration and production results yielded the best first-quarter earnings since Phillips Petroleum Co. and Conoco Inc. combined in 2002.

Net income jumped to $3.29 billion, or $2.34 per share for the January-March period, from $2.91 billion, or $2.05 per share, in the year-earlier period. Those results were in line with analysts' expectations, according to Thomson Financial.

ConocoPhillips is the first of the three largest U.S. oil companies to report earnings this week. Exxon Mobil Corp. reports Thursday and Chevron Corp. on Friday. The three were expected this week to report a total of more than $16 billion in first-quarter profits.

Also on Wednesday, New York-based oil and gas producer Amerada Hess Corp. said first-quarter profit surged on sharply higher prices for crude oil and natural gas.

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10:10 AM ET 4/27/06 JUNE CRUDE FALLS 73C, OR 1%, TO $71.20/BRL

10:10 AM ET 4/27/06 JUNE NATURAL GAS DOWN 30.1C TO TWO-WEEK LOW OF $6.97/MLN BTU

10:34 AM ET 4/27/06 U.S. NATURAL GAS SUPPLY UP 80 BLN CUBIC FT: ENERGY DEPT

10:34 AM ET 4/27/06 JUNE NATURAL GAS DOWN 33.1C, OR 4.4%, AT $6.95/MLN BTUS

1:15 PM ET 4/27/06 JUNE CRUDE DOWN 93C AT $71/BRL AFTER 2-WEEK LOW OF $70.75

1:15 PM ET 4/27/06 JUNE NATURAL GAS DOWN 4.4% AT $6.93/MLN BTUS

1:15 PM ET 4/27/06 MAY UNLEADED GAS DOWN 5.6C AT $2.0775/GAL

2:53 PM ET 4/27/06 JUNE CRUDE CLOSES UNDER $71/BRL FOR 1ST TIME IN TWO WEEKS

2:53 PM ET 4/27/06 JUNE CRUDE FALLS 96C, OR 1.3%, TO CLOSE AT $70.97/BRL

WASHINGTON (Reuters) - Sales of new U.S. homes rose a much larger-than-expected 13.8 percent in March, the biggest one-month gain since April 1993, but prices fell sharply, a government report showed on Wednesday.

The pace of new home sales rose to a seasonally adjusted 1.213 million unit annual rate from a downwardly revised 1.066 million unit rate in February, the Commerce Department said.

Analysts polled by Reuters were expecting home sales to rise to a 1.1 million unit pace in March.

Despite gains, the new home sales report showed signs the housing market has slowed from peak levels. The median home price slipped 2.2 percent from a year earlier to $224,200, the first year-over-year decline since December 2003, the Commerce Department said.

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Single-family home sales and prices in Massachusetts fell 1.5 percent in March, capping a first quarter in which sales slowed dramatically from the previous year, according to a housing report released yesterday.

''Inventory is at record highs, so buyers are taking their time," said David Wluka, president of the Massachusetts Association of Realtors. ''They can pick among several houses so they don't feel the pressure."

The slowdown in Massachusetts' housing market ran counter to a surprising pick-up in March in nationwide sales of homes, condominiums, and townhouses. Analysts had predicted that strong February sales, perhaps because of unusually warm weather across the country, could not be sustained.

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The housing market in Massachusetts ''simply isn't as strong as it is in other states," said Patrick Newport, an economist for Lexington research firm Global Insight.

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Massachusetts has been one of the hottest housing markets in recent years - particularly in the Boston area.

Investors who sought quick profits buying and selling real estate in the Washington region are in full retreat, dampening demand for homes, most notably for condos.

What is becoming apparent, market watchers say, is how big a part speculators played in the region's real estate boom of the past few years. Not just condominiums, but also townhouses and single-family houses, were snapped up by investors using no-money-down financing and non-traditional loans. They helped send prices soaring at unprecedented rates. And now many are trying to sell, or rent at a loss. Some may eventually dump properties at low prices to get rid of them. That could weigh down values for everyone.

Sales of new condos fell 43 percent in the first quarter of the year, compared with the first quarter of 2005, according to one report, and there are almost four times as many existing condos for sale than last year.

"We think the softness of the market is largely due to the pulling out of investors," said Gopal Ahluwalia, staff vice president for research at the National Association of Home Builders. "They have not only pulled back, they are canceling purchases."

http://www.washingtonpost.com/wp-dyn/content/article/2006/04/21/AR2006042101720.html

http://www.elliottwave.com/features/default.aspx?cat=mw

Here’s an item that will stun you: Most media reports today told less than half of the story about the latest new home sales.

Yes, those sales in March were higher than in the previous month. And of course this produced the usual connect-the-dots rubbish -- "Strong Data Good for Stocks" -- even though the major indexes saw their biggest gains of the session in the 30 minutes before the Commerce Department released its home sales data at 10:00am.

But let's not digress. Most of the increase in new home sales came in the West, with marginal gains in the South, Midwest and Northeast. Yet the real reason March sales were "higher than expected" was because February's sales were so dismal. As usual, points like this are best illustrated visually:



This brings us to the most glaring blunder in how the media reported today's data, namely burying (when included at all) the precipitous plunge in median new home prices. The chart says it all.



bit more...

Exactly the sort of thing you won't see in the corporate media coverage of the financial world.

Good find 54. :toast:

Julie

11:18 AM ET 4/27/06 FREDDIE MAC: 15-YEAR MORTGAGE AVERAGES 6.21% VS. 6.17%

11:19 AM ET 4/27/06 FREDDIE MAC: 1-YEAR ARM AVERAGES 5.68% VS. 5.63%

11:17 AM ET 4/27/06 FREDDIE MAC: 30-YEAR MORTGAGE AVERAGES 6.58% VS. 6.53%

WARNING! WARNING! This goomer sounds like he misses the free-for-all that gave us a 5,000 Nasdaq before the dot-com bust.

MEXICO CITY (Reuters) - A top official at the Nasdaq stock market said on Wednesday that financial regulations on companies listed in the United States were too tough and risked making the market less competitive.

Nasdaq (Nasdaq:NDAQ - news) Vice President Edward Knight told a news conference in Mexico City that even though "good regulation is good business," some of the rules were difficult for small and foreign firms to comply with.

Knight, along with a chorus of business figures, has frequently voiced concern about the impact of the Sarbanes-Oxley corporate reform law on small companies and has proposed changes to ease the compliance burden.

"There is continued sensitivity in the United States to make sure our laws are not harming the ability of non-U.S. companies to access (our) capital markets," he said.

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look down, gold is down and someone is propping the buck. Wonder if that's a little more of that Asian currency intervention or just the Fed at work.

That toon would be a dream come true!

http://www.motherjones.com/commentary/columns/2006/05/predator_state.html

snip>

For in a predatory regime, nothing is done for public reasons. Indeed, the men in charge do not recognize that “public purposes” exist. They have friends, and enemies, and as for the rest—we’re the prey. Hurricane Katrina illustrated this perfectly, as Halliburton scooped up contracts and Bush hamstrung Kathleen Blanco, the Democratic governor of Louisiana. The population of New Orleans was, at best, an afterthought; once dispersed, it was quickly forgotten.

The predator-prey model explains some things that other models cannot: in particular, cycles of prosperity and depression. Growth among the prey stimulates predation. The two populations grow together at first, but when the balance of power shifts toward the predators (through rising interest rates, utility rates, oil prices, or embezzlement), both can crash abruptly. When they do, it takes a long time for either to recover.

The predatory model can also help us understand why many rich people have come to hate the Bush administration. For predation is the enemy of honest business. In a world where the winners are all connected, it’s not only the prey who lose out. It’s everyone who hasn’t licked the appropriate boots. Predatory regimes are like protection rackets: powerful and feared, but neither loved nor respected. They do not enjoy a broad political base.

In a predatory economy, the rules imagined by the law and economics crowd don’t apply. There’s no market discipline. Predators compete not by following the rules but by breaking them. They take the business-school view of law: Rules are not designed to guide behavior but laid down to define the limits of unpunished conduct. Once one gets close to the line, stepping over it is easy. A predatory economy is criminogenic: It fosters and rewards criminal behavior.

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:donut: and lurkers. I was listening to Randi Rhodes yesterday. She began talking about devaluing the dollar by printing more of it and then she tied it into the current geopolitical aims and the economic policies of the Bush admin. I swear by the time she finished, you could see our future. We really do seem to be going the way of pre WWII Germany. And of course from that point, it is a slippery slope into fascism. For my summer reading, I intend to re-read Rise and Fall of the Third Reich for some in site. I hope we get some positive news after Nov elections. I still have trouble believing our 200+ yo democratic republic could be brought to it's knees in 6 years. Make me loath these folks even more.

Kenny Boy had a rough day on the stand right at the onset of cross examination. If he doesn't contain that temper, he will certainly damage his case.

Happy hunting and watch out for the bears.

http://quote.bloomberg.com/apps/news?pid=10000039&refer=columnist_pauly&sid=auhHFoMo20Sg

April 27 (Bloomberg) -- Inflation in the U.S. remains under control in large part because competition prevents American companies from raising prices. There are exceptions, of course.

One of them is a stunner: railroads, whose revenue historically has been at the mercy of the economy.

Demand was so great in the first quarter that Union Pacific Corp., the biggest U.S. railroad, was able to raise its rates by 13 percent as shipments rose 4 percent.

snip>

Was the U.S. government was too permissive in allowing the big carriers to combine. Perhaps, but the combinations haven't been unalloyed joy. ``With each merger, something always seems to go wrong,'' Nicholls says. Union Pacific experienced major traffic snarls after acquiring Southern Pacific Rail Corp. in 1996. Norfolk Southern and Jacksonville, Florida-based CSX Corp. subjected shippers to less onerous delays after they divided the old Conrail Inc. between them in 1999.

The benefits from reduced labor costs and deregulation may have reached their limits. Railroad prospects from here on might depend more on economic cycles and management ingenuity. For one year at least, this much was certain: Norfolk Southern's pretax profit margin for 2005 was 25 percent of revenue. In fiscal 2005, Hewlett-Packard Co., the Silicon Valley-based computer and printer manufacturer, had a pretax margin of 5.7 percent.

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

Last trade 87.41 Change +0.17 (+0.19%)

US Dollar Looking For Relief

http://www.dailyfx.com/story/dailyfx_reports/daily_technicals/US_Dollar_Looking_For_Relief_1146132624498.html

EUR/USD – EUR/USD gained for the ninth time in ten days. The 4/24 and 4/25 highs were rejected by the long term trendline that begins at the 1.3666 high on 12/30/2004. However, the pair closed a hair above (or right at) the downward sloping line yesterday, depending upon the thickness of your line. This is certainly disconcerting to shorts, but still, the proximity of the line certainly skews risk to the downside. The dealer chart shows massive negative divergence with RSI. Further support for a dollar value play here is the upward sloping channel that begins at the 3/10 low of 1.1859. The upward sloping resistance line is at the current price but caution is warranted as the pair ultimately trades in an uptrend. A break above yesterday’s high challenges the 8/12 high at 1.2485.

<snip>

USD/JPY – Recent Yen strength continues to consolidate between the 23.6% fibo of 118.87-114.24 at 115.33 and the 114.23 low on 4/24. Momentum to the downside has stalled as evidenced by an RSI reading of 46 on the hourly. Resistance sits just above at the 23.6% fibo of 118.82-114.23 at 115.31 with the 200 day SMA at 115.50. A daily close below the 4/24 low at 114.24 is required to confirm a continuation of weakness towards the 1/12 low at 113.41.

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Last trade 87.03 Change -0.21 (-0.24%)

Settle Time 15:06 Open 87.23

Previous Close 87.24 High 87.52

Low 87.02 2006-04-27 10:06:58, 30 min delay

Last trade 86.93 Change -0.31 (-0.36%)

Settle Time 15:06 Open 87.23

Previous Close 87.24 High 87.52

Low 86.93 2006-04-27 10:09:28, 30 min delay

Last trade 86.71 Change -0.53 (-0.61%)

Settle Time 15:06 Open 87.23

Previous Close 87.24 High 87.52

Low 86.71 2006-04-27 10:30:22, 30 min delay

Hmmm... 14 years ago.... Why! That would have been Dimson's Poppy! Once again reminding me of that 2000 campaign promise:

"Ah'm gonna pick up whar ma daddy lef' off"

TORONTO, April 27 (Reuters) - The Canadian dollar set a new
14-year high against the U.S. dollar on Thursday as currency
traders were encouraged by the Bank of Canada's outlook on the
economy and the potential for further interest rate hikes.

At 2:15 p.m. (1815 GMT), the Canadian dollar was at
C$1.1230 to the U.S. dollar, or 89.05 U.S. cents, up from
C$1.1286 to the U.S. dollar, or 88.61 U.S. cents, at
Wednesday's session close.

Since the Bank of Canada raised its key overnight rate by a
quarter point to 4 percent on Tuesday, the Canadian dollar has
shot higher on hopes of further rate increases this year.

The loonie reached a high of C$1.1218 to the U.S. dollar,
or 89.14 U.S. cents, on Thursday, according to Reuters data,
surpassing Wednesday's high at C$1.1252, or 88.87 U.S. cents.

It is up more than 40 percent over four years against the
U.S. dollar.

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http://www.tompaine.com/articles/2006/04/26/iraq_mo_money_mo_problems.php

When George W. Bush casually let slip last month that the level of U.S. forces in Iraq would be decided “by future presidents and future governments of Iraq," he dispelled any illusions of presidential accountability for the ongoing management of the war. Before the Senate debates spending another $70 billion for the Iraq War this week, they should check in with the U.S. public to see if they support another three years of war without a plan for bringing the troops home.

Late last year, the president had defined some limits, explaining that, “When our commanders on the ground tell me that Iraqi forces can defend their freedom, our troops will come home with the honor they have earned.”

But not surprisingly, the U.S. military is preparing for a much longer presence. Gen. John Abizaid, the commander of U.S. troops in the Middle East, testified in Congress earlier this year that he couldn't rule out the possibility of permanent bases in Iraq.

Abizaid chose his words carefully for good reason. When Bush submitted the spending request to Congress, he included more than $300 million for construction of permanent bases. The request—the sixth "emergency supplemental" to date for the Iraq War—also funds the current troop levels of 133,000, a clear indication that the U.S. has no aim to reduce forces any time soon. If approved, it would bring the total bill for the war to $315 billion .

As the Senate begins consideration of this request this week, they should use the moment to vote "no" on future funding of the war given the lack of a plan, no clear benchmarks for success, and the rising human and economic costs. If they refuse to do so, they should at least demand that Bush provide an estimate for the cost of three more years of war, along with a plan to pay the bill. These numbers would give both Congress and the public a good reality check on just how big of an economic hit we’re likely to take over the coming years.

Instead, conservative Republicans on the Hill are poised to use the debate around the spending bill to rally against pet projects, like relocating a railroad , which their colleagues have slipped into the bill. Such pork should be trimmed, but the real focus should be asking the White House for a plan to “offset” the cost of this unpopular war—not by stripping social programs for society’s weakest, but perhaps by rolling back some of those tax cuts for society’s wealthiest.

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hike has little to do with it...just wanna get on record. :evilgrin:

when you get back, tell us why you call BS....:hi:

9:48 AM ET 4/27/06 JUNE GOLD FALLS $4.50 TO $637.50/OZ IN MORNING DEALINGS

9:48 AM ET 4/27/06 JULY SILVER FALLS 15.9C, OR 1.2%, TO $12.78/OZ

9:48 AM ET 4/27/06 JULY COPPER DOWN 2.9C AT $3.285/LB IN NY

10:13 AM ET 4/27/06 JUNE GOLD TURNS HIGHER, TRADES UP $2 AT $644/OZ

http://www.marketwatch.com/News/Story/Story.aspx?guid=%7BCE94DB5F%2DBEA9%2D4A1C%2D87D9%2D0CE12BC443A1%7D&dist=newsfinder&symbol=&siteid=mktw

BOSTON (MarketWatch) -- A registration statement for a highly anticipated silver exchange-traded fund from Barclays Global Investors was declared effective at 10 a.m. Eastern time Thursday by the Securities and Exchange Commission, clearing the way for the ETF's launch, an SEC spokesman said. Earlier this week in a filing, Barclays said 1.5 million ounces of silver had been deposited in the trust. Barclays could not immediately be reached for comment.

11:09 AM ET 4/27/06 BARCLAYS SAYS SILVER ETF LAUNCHING FRIDAY ON AMEX

11:09 AM ET 4/27/06 SILVER ETF TICKER WILL BE SLV

1:45 PM ET 4/27/06 JUNE GOLD CLOSES AT $636.30/OZ, DOWN $5.70, OR 0.9%

Dow 11,297.74 -56.75 (-0.50%)
Nasdaq 2,320.70 -12.93 (-0.55%)
S&P 500 1,299.87 -5.54 (-0.42%)
10-Yr Bond 5.119 +0.14 (+0.27%)

NYSE Volume 45,029,000
Nasdaq Volume 66,428,000

09:15 am : S&P futures vs fair value: -7.5. Nasdaq futures vs fair value: -9.0.

09:00 am : S&P futures vs fair value: -7.8. Nasdaq futures vs fair value: -10.0. Futures indications continue to suggest the market will open on a downbeat note. An analyst downgrade on Honeywell (HON) and an unexpected earnings miss from Exxon Mobil (XOM), which trumps a plethora of strong earnings reports, will likely knock the Dow from its six-year high, and renew concerns that stocks are overbought on a short-term basis, especially against a backdrop of rising commodity prices and higher interest rates.

08:32 am : S&P futures vs fair value: -8.3. Nasdaq futures vs fair value: -10.8. Still shaping up for the cash market to open sharply lower as futures indications continue to trade well below fair value. Weakening sentiment since the last update has been further deterioration in the Treasury market, which has lifted the yield on the 10-yr note (-07/32) to 5.13%, as Bernanke is likely to be prodded about the recent batch of stronger than expected data. Separately, initial claims rose 11K to 315K (consensus 305K), but since last week's claims report was for the period in which the April employment survey was conducted, today's claims have not had a pronounced impact on trading.

08:00 am : Futures versus fair value are signaling a negative start for stocks as another batch of strong earnings reports take a back seat to more interest rate uncertainty. Investors are showing a sense of reserve following an unexpected rate hike by China's central bank which creates concerns about slower, global economic growth. Upcoming testimony by Fed Chairman Bernanke at 10:00 ET, which could shed some light on prospects for monetary policy, is also underpinning some early hesitancy on the part of buyers.

10:00 AM ET 4/27/06 BERNANKE: REASONABLE TO EXPECT ECONOMY TO MODERATE THIS YEAR

10:00 AM ET 4/27/06 BERNANKE SEES RISKS HOUSING COULD BE BIGGER DRAG ON GROWTH

10:00 AM ET 4/27/06 BERNANKE EXPECTS GRADUAL COOLING IN HOUSING

10:00 AM ET 4/27/06 BERNANKE: U.S. GROWTH AHEAD MAY BE CHOPPY

10:00 AM ET 4/27/06 BERNANKE: PROSPECTS FOR SOLID GROWTH APPEAR 'GOOD'

10:00 AM ET 4/27/06 BERNANKE: RISING ENERGY PRICES REMAIN A CONCERN

10:00 AM ET 4/27/06 BERNANKE SEES 'REASONABLY FAVORABLE' OUTLOOK ON INFLATION

10:00 AM ET 4/27/06 BERNANKE: FOMC WILL REMAIN VIGILANT ON INFLATION

10:00 AM ET 4/27/06 BERNANKE: FED COULD PAUSE EVEN IF INFLATION RISKS REMAIN

10:00 AM ET 4/27/06 BERNANKE: PAUSE IN RATE HIKES WOULDN'T SIGNAL THE END

10:00 AM ET 4/27/06 BERNANKE: DATA SINCE MARCH HAS NOT CHANGED FED RATE VIEW

10:43 AM ET 4/27/06 BERNANKE: HIGHER REAL WAGES NEED NOT BE INFLATIONARY

10:44 AM ET 4/27/06 BERNANKE: HIGHER REAL WAGES WOULD BE WELCOME

Did I call that one, or what?

http://today.reuters.com/investing/financeArticle.aspx?type=bondsNews&storyID=2006-04-27T152742Z_01_WAT005445_RTRIDST_0_ECONOMY-BERNANKE-INEQUALITY-URGENT.XML

WASHINGTON, April 27 (Reuters) - Federal Reserve Chairman Ben Bernanke said on Thursday that widening wage inequality in the United States was a potential social problem and the only lasting remedy was a long-term commitment to boosting skills.

"This trend is a disturbing one and has unfortunate consequences for our political economy," he told the Joint Economic Committee of the U.S. Congress.

"My main explanation for this phenomenon is the higher return to education, the higher return to skills. What can we do about it? First of all, the Federal Reserve will do what it can, which is primarily to try to maintain strong and stable employment growth," he said.

"More broadly, the only really sustainable response to this problem is to alleviate the skills deficit," he added.

Gee, I guess we haven't learned how to say "Would you like fries with that?" :mad:

10:58 AM ET 4/27/06 BERNANKE: AS GENERAL RULE, TAX CUTS DON'T PAY FOR THEMSELVES

10:58 AM ET 4/27/06 BERNANKE REFUSES TO COMMENT ON CAPITAL GAINS TAXES

but SpecimenFred says that whenever the FedHeads Spew words, funds seem to appear magically into the markets.

:hi:

is all those Computer programmers that can't find work now and if they DO find work it is at a fraction of what it was. Or how about Nursing. The difference between a Bachelors and an Associates degree is $0.50 per hour. I'd be afraid to be earning THAT much more-I couldn't handle the pressure.:sarcasm::eyes:

http://www.marketwatch.com/News/Story/Story.aspx?guid=%7B4337B7DC%2DB005%2D4C82%2D8070%2DD477F519909E%7D&dist=newsfinder&symbol=&siteid=mktw

WASHINGTON (MarketWatch) - The Federal Reserve expects robust business investment to underpin the economic expansion this year, but remains confused about why capital spending has been so "sluggish" in the past five years, Fed Gov. Donald Kohn said Thursday. The conundrum about capital spending leaves the Fed less certain about the medium-term outlook for both growth and inflation, he said. Without strong capital spending, further productivity gains are less likely. Kohn made no comments on current monetary policy in his prepared remarks to the Forecasters Club of New York. A copy of his remarks was made available in Washington.

Their lousy policies and inept economic theories just are so much garbage. They make me want to :puke:

http://today.reuters.com/investing/financeArticle.aspx?type=bondsNews&storyID=2006-04-27T171655Z_01_NYH000194_RTRIDST_0_ECONOMY-FED-KOHN-URGENT.XML

NEW YORK, April 27 (Reuters) - Solid business investment should prevent U.S. economic growth from easing too abruptly as the housing sector slows, Federal Reserve Board Governor Donald Kohn said on Thursday.

"The latest reads on business spending and intentions point to continued solid growth in capital spending," Kohn told a group of forecasters in New York.

If the expected easing in home purchases and values proves more severe, however, it could threaten the oultook for investment, Kohn said.

By the same token, a return to historical patterns could boost business spending beyond current forecasts, he said.

:rofl:

Dow 11,336.40 -18.09 (-0.16%)
Nasdaq 2,335.74 +2.11 (+0.09%)
S&P 500 1,303.03 -2.38 (-0.18%)
10-Yr Bond 5.126 +0.21 (+0.41%)

NYSE Volume 425,292,000
Nasdaq Volume 436,008,000

Dow 11,323.92 -30.57 (-0.27%)
Nasdaq 2,331.62 -2.01 (-0.09%)
S&P 500 1,301.97 -3.44 (-0.26%)
10-Yr Bond 5.082 -0.23 (-0.45%)

NYSE Volume 711,214,000
Nasdaq Volume 692,236,000

10:30 am : Indices spike higher following more conciliatory comments from Fed Chairman Bernanke than many anticipated, sparking a relief rally in stocks, erasing most of the morning's losses and turning the bulk of industry leadership positive. Six of ten sectors are now trading higher. While Bernanke reiterated that monetary policy remains "increasingly data driven" and that inflation "vigilance" is key to the economy, saying that the Fed may "pause even if risks aren't balanced" has been the primary catalyst behind the market's recent recovery.DJ30 -14.57 NASDAQ +1.55 SP500 +0.44 NASDAQ Dec/Adv/Vol 1310/1340/630 mln NYSE Dec/Adv/Vol 1577/1258/464 mln

10:00 am : Equities are still on the defensive as all ten economic sectors are trading lower. Energy is pacing the way to the downside (-2.2%) following earnings misses from ExxonMobil (XOM 61.77 -1.33) and Marathon Oil (MRO 79.18 -2.71) as well as 1.1% pullback in the price of crude to $71 a barrel. The Materials sector is also consolidating some of its impressive year-to-date performance (+12%) as investors lock in huge gains enjoyed by steel -- the year's best performing industry group (+59%). Industrials has also been weak after JP Morgan downgraded Honeywell (HON 42.86 -1.21) citing environmental uncertainty. Rockwell Automation (ROK 71.22 -4.22) beat estimates and raised its full-year guidance, which plays into our Overweight rating on Industrials; but with the stock hitting a historic high three days ago ahead of its report has incited investors to lock to consolidate recent gains.DJ30 -61.39 NASDAQ -11.09 SP500 -8.16 XOI -2.0% NASDAQ Dec/Adv/Vol 1918/575/316 mln NYSE Dec/Adv/Vol 2003/601/236 mln

09:40 am : Market opens sharply lower as growing interest rate uncertainty offsets another batch of strong earnings reports, prompting broad-based consolidation. Underpinning hesitancy on the part of buyers has been the first rate hike by China's central bank in 12 years, to 5.85% from 5.58%. Not only was the move widely unexpected but it creates concerns that global economic growth may be slowing. Investors are also preoccupied with upcoming testimony by Fed Chairman Bernanke at 10:00 ET, which could shed some light on prospects for monetary policy, especially since stronger than expected economic data of late have raised concerns that the Fed may go too far with its tightening efforts to stave off inflationary pressures.

updated blather on edit

Dow 11,340.56 -13.93 (0.12%)
Nasdaq 2,332.73 -0.90 (0.04%)
S&P 500 1,304.34 -1.07 (0.08%)
10-Yr Bond 5.105% 0.00

I wonder which way we're headin'? :shrug:

Julie

Dow 11,367.14 +12.65 (+0.11%)
Nasdaq 2,341.21 +7.58 (+0.32%)
S&P 500 1,309.05 +3.64 (+0.28%)
10-Yr Bond 5.079 -0.26 (-0.51%)

NYSE Volume 971,610,000
Nasdaq Volume 936,446,000

11:00 am : Major averages continue to vacillate around the unchanged mark as investors listen to the Q&A portion of Bernanke's testimony before the Joint Economic Committee. The inability for the market to move more aggressively higher from currently flat levels underscores our belief that the market may have gotten a bit too excited about a possible "pause" in monetary tightening which does not mean the Fed will stop tightening, leaving the door open for a subsequent rate hike at some point after a widely anticipated 1/4% increase to 5.00% at the next FOMC meeting on May 10th.DJ30 -13.69 NASDAQ +1.14 SP500 +0.53 NASDAQ Dec/Adv/Vol 1852/904/854 mln NYSE Dec/Adv/Vol 1864/1074/644 mln

http://ap.theindependent.com/pstories/state/ne/20060427/3820444.shtml

LINCOLN, Neb. — Plans by pharmaceutical giant Pfizer Inc. to pay its chief operating officer as much as $83 million in compensation when he retires drew protesters to the company's annual shareholders meeting here Thursday.

"We feel he should give back half of that; it's pay for failure," said Dan Pedrotty, of the AFL-CIO. "There's a huge element of hypocrisy here."

Hank McKinnell, Pfizer's chairman and chief executive, will qualify to collect the pension if he retires in 2008 at age 65, according to the company's most recent proxy statement.

His annual pension benefit would be $6.5 million, but McKinnell could opt for a lump-sum payment of more than $83 million.

<snip>

Opponents of McKinnell's pension payout complain that Pfizer's stock has fallen 44 percent since McKinnell took over in 2001.

Since then, McKinnell has received more than $28 million in salary and bonuses. He also has been given stock options worth more than $55 million, according to proxy advisers Glass Lewis & Co.

...more...

http://www.topix.net/content/trb/4190869489402630719338068870602428364968

BankAtlantic Bancorp Inc. said Wednesday it had agreed to pay a $10 million fine to avoid federal criminal charges that the bank allowed drug money to be laundered through accounts at one of its branches.

The Fort Lauderdale-based bank reached a deal with the Justice Department that defers prosecution for a year. If BankAtlantic complies with anti-money laundering requirements, the prosecution will be dropped.

'BankAtlantic willfully and knowingly ignored its obligations under the Bank Secrecy Act and anti-money laundering requirements for years,' said Alice Fisher, assistant U.S. attorney general.

Bryan Sierra, a Justice Department spokesman, said the bank 'turned a blind eye toward money laundering.'

<snip>

The charges stemmed from a Drug Enforcement Administration investigation of U.S. and South American money launderers in which undercover DEA agents posed as professional money launderers. The investigation found that more than $10 million in suspected drug proceeds went through the bank without detection.

...more at link...

where's the punishment. If it were you or I, just the suspicion would get our assets yanked and funds impounded. And with all their assets, 10 mill is pocket change.
Boy that ought to scare them straight.

http://today.reuters.com/investing/financeArticle.aspx?type=bondsNews&storyID=2006-04-27T185123Z_01_N27176365_RTRIDST_0_FINANCIAL-SALOMONGREY-NASD.XML

NEW YORK, April 27 (Reuters) - The NASD said on Thursday it expelled the brokerage Salomon Grey Financial Corp., and permanently barred its owner from the securities industry, for what it termed an unusual case involving "widespread" rule violations.

First registered in 1998, the Dallas-based brokerage once operated 14 branch offices, with concentrations in California, New York and Florida, but went out of business in February.

<snip>

The NASD accused Salomon Grey of "extensive supervisory failures, anti-money laundering violations, e-mail retention violations, customer complaint reporting violations," and unauthorized searches of an NASD database.

"Any one of these violations is serious and would pose a substantial risk to the firm's customers, and anti-money laundering rule violations could compromise our national interest," NASD enforcement chief James Shorris said.

"In this unusual case, the occurrence of all of these violations in a single firm calls for the most severe sanction," he added.

...more...

Dow 11,399.40 +44.91 (+0.40%)
Nasdaq 2,351.44 +17.81 (+0.76%)
S&P 500 1,312.21 +6.80 (+0.52%)
10-Yr Bond 5.084 -0.21 (-0.41%)

NYSE Volume 2,415,302,000
Nasdaq Volume 2,228,196,000

3:00 pm : Market showing no signs of slowing as a renewed wave of buying inches the Dow closer to its best levels since January 19, 2000. JP Morgan Chase (JPM 43.97 +1.31) hitting a 52-week high has been the best performer; 20 of the Dow's 30 components are trading higher. Providing even further conviction behind today's move to the upside has been above average volume, with the number of shares on the NYSE poised to eclipse 2.0 bln shares, a feat already accomplished by the Nasdaq.DJ30 +58.19 NASDAQ +23.93 SP500 +8.35 NASDAQ Dec/Adv/Vol 1556/1439/2.09 bln NYSE Dec/Adv/Vol 1582/1622/1.65 bln

2:30 pm : Not much has changed since the last update as buying remains widespread across most areas. Industrials, though, has recently inched into negative territory, as Boeing (BA 83.76 -1.15) retraces earlier lows. After hitting a historic high three days ago, investors continue to lock in some profits. Other notable components weighing on the sector include HON (-2.1%), CAT (-1.2%), BNI (-4.4%), UNP (-1.7%) and ROK (-3.6%); blue chips providing some leadership include GE (+1.0%), RTN (+1.4%) and WMI (+1.5%), with the latter two attracting buyers after posting strong Q1 earnings.DJ30 +27.54 NASDAQ +15.40 SP500 +4.72 NASDAQ Dec/Adv/Vol 1469/1519/1.93 bln NYSE Dec/Adv/Vol 1490/1703/1.49 bln

Even when the indices rise healthily, the broad Adv/Dec lines aren't much beyond, say, 60/40 or 55/45.

Dow 11,382.51 +28.02 (+0.25%)
Nasdaq 2,344.95 +11.32 (+0.49%)
S&P 500 1,309.72 +4.31 (+0.33%)
10-Yr Bond 5.084 -0.21 (-0.41%)

NYSE Volume 2,879,156,000
Nasdaq Volume 2,679,479,000

What first appeared to be a dismal day on Wall Street ended up being quite a relief, as investors applauded conciliatory testimony from Fed Chairman Bernanke and revisited the reality that earnings continue to check in better than expected.

Before the market opened, investors exhibited caution following the first rate hike by China's central bank since October 2004, to 5.85% from 5.58%. Not only was the move widely unexpected but it created concerns that global economic growth may be slowing. Investors were also preoccupied with upcoming testimony from Fed Chairman Bernanke at 10:00 ET, which was expected to shed some light on prospects for monetary policy, especially since stronger than expected economic data of late raised worries that the Fed may have further to go with its tightening activity than previously expected.

Within an hour after the opening bell, Bernanke again made it clear that it will be the incoming data that will set monetary policy and that "vigilance" with regard to inflation is essential. However, once he gave his strongest signal to date that the Fed may "pause" in its tightening cycle, the indices erased their morning losses and turned the majority of industries positive.

Among the six economic sectors that posted gains, Financial provided the bulk of market leadership. The influential sector got a huge lift following Bernanke's commentary, as a steepening yield curve provided some much needed relief for banks across the board. JP Morgan Chase (JPM 43.95 +1.29), which hit a 52-week high, was a top performer while better than expected earnings and encouraging guidance from Countrywide Financial (CFC 39.30 +1.35) provided another source of sector support.

The rate-sensitive Utilities also took notice of the improvement in Treasuries as falling bond yields improved the appeal of owning income-oriented utility stocks. The yield on the 10-yr note fell to 5.07%. That was an improvement after hitting 5.12% in early trading, but still near four-year highs which is contributing to our Neutral market view. Although a possible "pause" in monetary tightening appears reassuring, it leaves the door open for a subsequent rate hike "at some point." To wit, the Fed might pause after a May 10 rate hike, but there is still no clear end in sight to the uptrend in interest rates.

Technology was a more influential leader to the upside, benefiting largely from a rebound in semiconductor and renewed buying interest in the software space. Mentor Graphics (MENT 13.14 +1.79) soared 15% after topping forecasts; Microsoft (MSFT 27.45 +0.35) attracted buyers ahead of its earnings report after the bell; and Oracle Corp (ORCL 14.93 +0.21) hit a 52-week high. Consumer Discretionary may not have turned in the day's biggest gain, but the sector accounted for three of the day's top four best performing S&P industry groups. Education services was the day's leader following an analyst upgrade on Apollo Group (APOL 56.02 +3.07) while a 50% increase in Q1 profits at Newell-Rubbermaid (NWL 27.72 +2.11), a suggested holding in our Active Portfolio, helped Housewares surge 3.6%. Broadcasting & Cable TV (+3.1%) was also strong after Comcast Corp (CMCSA 30.45 +1.25) more than tripled Q1 profits on record subscriptions.

Despite the dollar falling for a fifth straight session against the euro and to a three-month low versus the yen, weakness that typically makes dollar-denominated commodities like gold and oil more attractive, the Materials sector turned in the day's worst performance. Aside from Weyerhaeuser (WY 70.36 -2.93) swinging to a loss and Ball Corp (BLL 39.10 -4.59) missing expectations, widespread consolidation also weighed heavily on the S&P 500's second best performing sector. Energy, the year's best performing sector continued to pare some of its 14% year-to-date gain amid a 1.0% pullback in crude oil to below $71 a barrel and an unexpected earnings miss from ExxonMobil (XOM 62.53 -0.57).

Industrials was another laggard, as an analyst downgrade on Honeywell (43.13 -0.94) and further consolidation in railroad stocks offset strong earnings reports from Raytheon (RTN 46.02 +0.84) and Waste Management (WMI 38.04 +0.72). Health Care also lost ground, as a rebound in biotech and strength in drug, following solid reports from AstraZeneca (AZN 55.01 +1.21) and GlaxoSmithKline (GSK 55.45 +2.38), was overshadowed by weakness in managed health. Aetna (AET 37.00 -9.43) beat estimates by a penny and raised its FY06 outlook, but the stock lost 20% of its value following disappointment over its medical cost ratio.

As an aside, the total volume was well above average, providing some added conviction behind a move led largely by large-cap names. The Russell 2000 Small Cap Index fell 0.5% as investors consolidated some of the index's leading 13.7% year-to-date gain and bog back into blue chips.BTK +2.3% DJ30 +28.02 DJTA -0.7% DJUA +1.2% DOT +0.8% NASDAQ +11.32 NQ100 +0.9% R2K -0.5% SOX +1.3% SP400 +0.03% SP500 +4.31 XOI -0.7% NASDAQ Dec/Adv/Vol 1638/1381/2.61 bln NYSE Dec/Adv/Vol 1627/1597/2.08 bln