STOCK MARKET WATCH, Tuesday March 20

Source: DU

Tuesday March 20, 2007

COUNTING THE DAYS
DAYS REMAINING IN THE * REGIME 671 LONG DAYS
DAYS SINCE DEMOCRACY DIED (12/12/00) 2276 DAYS
WHERE'S OSAMA BIN-LADEN? 1980 DAYS
DAYS SINCE ENRON COLLAPSE = 1940
Number of Enron Execs in handcuffs = 19
ENRON EXECS CONVICTED = 9
Enron execs conveniently deceased = 3
Other Arrests of Execs = 54

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

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AT THE CLOSING BELL WHEN BUSH TOOK OFFICE on January 22, 2001
Dow - 10,578.24
Nasdaq - 2,757.91
S&P 500 - 1,342.90
Oil - $27.69/bbl
Gold - $266.70/oz.

AT THE CLOSING BELL ON March 19, 2007

Dow... 12,226.17 +115.76 (+0.96%)
Nasdaq... 2,394.41 +21.75 (+0.92%)
S&P 500... 1,402.06 +15.11 (+1.09%)
Gold future... 654.30 +0.40 (+0.06%)
30-Year Bond 4.72% +0.02 (+0.47%)
10-Yr Bond... 4.57% +0.03 (+0.57%)






GOLD, EURO, YEN, Loonie and Silver

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PIEHOLE ALERT

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

For information on protests and other actions Citizens For Legitimate Government

---

No link yet.

The Retirement Trap
A fixed income retirement may lead to a real fix: "Un-retirement"
BY TONY ALLISON

Walking into the Sunset

Wall Street continuously reminds us “Everything is Wonderful.” As long as you keep buying its “investment products,” you too can retire to a beautiful lake, just like those handsome senior citizen couples in the financial services commercials, walking hand-in-hand into the sunset. But in reality, storms are brewing over the horizon. Millions of Baby Boomers, even those who have saved hundreds of thousands of dollars, are likely to face a retirement of dwindling choices and lowered expectations. Ultimately, the stark reality is many, many retired Americans will face “Un-retirement,” looking for work in their 60’s and 70’s to make ends meet.

The pitfalls of retirement are a subject you have likely read about, perhaps ad nauseum. But for most Americans, this subject cannot be discussed often enough, or emphasized loudly enough. The obvious approach is to start saving and investing, as much as you can. But for many it is easier said than done. Many Boomers have children at home and elderly parents they must look after. That is one of the demographic challenges facing this generation; having children later than earlier generations and seeing the costs of child rearing skyrocket, along with medical care costs for their own parents. There are also cultural factors at work. Baby Boomers, un-chastened by the Depression that defined the lives of their parents and grandparents, have pretty much lived for the moment. And they have been encouraged to do so every step of the way by Madison Avenue and the televised popular culture.

-cut-

Soaring Trillions

My purpose is not to scare you or annoy you, but to encourage critical thinking of your own situation, and to ultimately take action. The government, despite what many Baby Boomers might think, is not likely to provide cradle-to-grave services and protection. By its own admission, the Federal government has unfunded liabilities for Medicare and Social Security over $50 trillion, destined to rise much higher with inflation. Fifty trillion in unfunded liabilities. A number most cannot fathom, but one they will one day have to face. The government has no money set aside or squirreled away. Far from it, as our current Federal debt of $9+ trillion continues to grow every year (not even counting those pesky “off budget” items such as the War in Iraq). As our population continues to age, the government will have even more difficulty expanding its tax base to pull in the necessary revenue to feed the explosive debt obligations.

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

So many people these days think the worst will hit long after they've left this earth. I think not. I'm in my forties and I believe many in my age bracket are going to see serious reckonings within our lifetimes.

It's going to be the rudest of awakenings for this soft, self-indulged demographic.

Julie

:donut: and lurkers. Julie, ITA. I am 53 now and soon to be 54 in September. I have had a few incredibly hard times in my life. I bitched and moaned about them while they were going on, but I sucked it up and dealt with it. I have always been thankful that my daughter was not around then-but now I wonder if she missed out on some great life lessons. For instance-I know how to make a chicken last a whole week, how to make tomato packet soup and lemonade from packets. I can tell you what plants in my area are edible, how to judge a water source, etc. Although I am not a mormon, I practice their belief in having a well stocked pantry (at least a year's worth) and the last time I was unemployed-actually used down my pantry. I am rusty but I can hunt and fish and also clean what I kill. I have lanterns and can use then and know the wonders of a dutch oven. I know the basics about spinning and weaving, but would be more inclined to tan and wear hides.
What I often wonder is, how many of the folks today in these much higher brackets would survive a melt down. I remember that movie with Tom Hanks (I think it was Castaway). I remember the scene when he was at his welcome back party. Folks had left and he was looking at all the uneaten food and playing with the lighter. You just knew what was going through his mind. Everyone makes out like Wall Street is a jungle and it is dog eat dog, but there is survival and then there is SURVIVAL. Just because you are good at one doesn't mean you are good at the other. I am a transitional person. I don't have the body of knowledge that my grandparents had, but I know enough to cushion me while I relearn. I have tried to teach these skills to my daughter but she has absolutely no interest. What some folks pay hundreds of dollars to learn in a wilderness get away and she isn't interested. Oh well-hope she never needs the info:eyes:

Happy hunting and watch out for the bears (remember-stay down wind and never touch the cute little cubs).

Agreed, there's "survival" and then there's "SURVIVAL". I have had to do both at various times so, like you, the coming changes will not be as big a shock to my system as to others'. I fear for some of them actually.


*sigh* I can't help but harbor hope that some adults may actually get in charge in the near future and help us to avert at least the worst of it. Hope springs eternal I guess, even in us cynics. ;-)

Julie

expect the best but prepare for the worst. It seems like common sense, but as I get older, I discover that common sense is less common than I first thought. Guess that is the cynic in me too. ;)

For anyone who caught last night's Daily Show. It was hilarious.

Julie

heading for 48, raised by Depression-era grandparents.

no retirement, no savings (can't have assets or will lose healthcare), caregiver for Hubby, living on his SSDI... been through the melt-down of WorldCom (where Hubby worked), sold house in SF Bay Area and went to the country, been through Ch. 7, not much left to lose. Got to find skill to support myself after Hubby dies (teaching music lessons out in a rural area won't cut it).

But...I can spin, knit, raise vegetables, fix things myself (thanks, Papa for teaching me), have my own woodshop, have sewing machines and extra fabric, etc.

Wall Street is meaningless to me. Big picture economics, however, hits us all. Speaking of which- why is gas $3.30+ when oil prices are down?

from the article

Beware the “Conservative” Portfolio

I frequently mention to clients nearing or in retirement that they can’t enter their golden years relying solely on the purchasing power of a fixed amount of US dollars, looking forward to a 20 to 30 year retirement. The two-headed monster of a future currency devaluation and future inflation make fixed income assets questionable at best. The only way the US government is going to meet even a portion of its trillions in unfunded liabilities is to print vast, unimaginable sums of currency. Financially, those liabilities cannot be paid without massive tax hikes and severe budget cuts. Politically, that will be impossible to implement. But the currency will be printed. The currency’s purchasing power will be another matter.

Millions of Baby Boomers, as well as older retirees today, will rely on fixed annuities and long term bond portfolios to survive. Unfortunately, this fixed stream of US dollars will be at a growing risk of currency debasement and inflation. Over long retirements, 20 years and more, Boomers will face the horror of eroding purchasing power, and by extension, an eroding quality of life. The “conservative approach” may have worked in the days when our nation produced more than it consumed. But those days are gone. We as a nation have consumed the wealth created by our forefathers.

This is the reason I believe a fixed-income “conservative” portfolio, denominated solely in US dollar assets at retirement is not conservative at all. It’s a gamble that the US dollar will not lose its purchasing power at an accelerating rate. That is a gamble most retirees cannot afford to take.

permanent link...
http://www.financialsense.com/Market/allison/2007/0319.html

Yikes, the stock market scares the heck out of me, and now the fixed-income portfolio may not be the answer either. What's a person to do to preserve their nest egg?

8:30 AM Housing Starts Feb
Briefing Forecast 1475K
Market Expects 1445K
Prior 1408K

8:30 AM Building Permits Feb
Briefing Forecast 1530K
Market Expects 1550K
Prior 1571K

http://biz.yahoo.com/c/e.html

01. U.S. Feb. housing completions fall 9.4% to 1.66 mln
8:30 AM ET, Mar 20, 2007 - 57 seconds ago

02. U.S. housing starts down 28.5% year-on-year
8:30 AM ET, Mar 20, 2007 - 57 seconds ago

03. U.S. Feb. housing starts beat 1.46 mln expected
8:30 AM ET, Mar 20, 2007 - 57 seconds ago

04. U.S. Feb. single-family starts up 10.3% to 1.220 mln
8:30 AM ET, Mar 20, 2007 - 57 seconds ago

05. U.S. Feb. building permits down 2.5% to 1.532mln
8:30 AM ET, Mar 20, 2007 - 57 seconds ago

06. U.S. Feb. housing starts up 9% to 1.525 mln
8:30 AM ET, Mar 20, 2007 - 57 seconds ago

:eyes:

SINGAPORE - Oil prices rose to hover just under $57 a barrel Tuesday as traders responded to a drop the day before and looked for market drivers.

-cut-

Prices for future contracts were also rising as traders anticipated an increase in gasoline demand in the approaching U.S. summer driving season. U.S. refineries are expected to boost their crude oil runs by 1.5 million barrels per day to 16.1 million barrels daily by June to meet summer driving demand.

Following that trend, gasoline futures also jumped Monday to $1.9581 a gallon after trading as high as $1.97 — their highest level since last September.

An international energy group warned of a sharp spike in oil prices if the Organization of Petroleum Exporting Countries does not increase output.

http://news.yahoo.com/s/ap/oil_prices

DUBAI, United Arab Emirates - Gulf governments are planning oil pipelines that would bypass the world's most vulnerable energy choke point, the Strait of Hormuz, aiming to avoid possible Iranian threats to global oil shipments.

If built, two pipelines could ferry as much as 6.5 million barrels of oil a day around the strait, an amount equal to nearly 40 percent of the daily exports currently shipped through the narrow channel at the entrance of the Gulf.

Construction of the first, smaller line is forecast to begin this year, the Dubai branch of Britain's Standard Chartered Bank reported this week.

A second, more ambitious line carrying some 5 million barrels a day is still under discussion and could take a decade to build.

http://news.yahoo.com/s/ap/20070320/ap_on_re_mi_ea/gulf_oil_pipeline_2

Probably wouldn't have been prior to the Frat Boy's invasion of Iraq.

Gas here went up $0.23 yesterday to a citywide $2.55.

SAN ANTONIO — Years of cost-cutting, operator mistakes and a corporate culture that didn't make safety a top priority contributed to the deadly March 2005 accident at BP's Texas City refinery, a top federal investigator said Monday.

The "ineffective or nonexistent" oversight of safety by the British oil company's board of directors also played a direct role, said Carolyn Merritt, chairwoman and CEO of the U.S. Chemical Safety Board.

<snip>
Among its findings: BP failed to investigate repeated warnings of trouble at the facility, slashed costs without taking into account the impact on safety and did not adequately train workers or communicate safety expectations and procedures, Merritt said.

The themes in the report, which is the product of nearly two years of work, closely hew to those found in a January report by an independent panel headed by former Secretary of State James A. Baker III. That panel was assembled at the Chemical Safety Board's urging.

<snip>
The speech comes at a time when the petroleum industry is trying to fend off attempts by lawmakers in Washington to increase regulation or roll back favorable provisions in the 2005 Energy Act.

....and more.

http://www.chron.com/disp/story.mpl/business/4645084.html


Have you notice how you have to read further down the article to find the real kernels of truth anymore. And it helps if you know the players too (Baker). Seems like folks are fighting for the blanket while trying to cover their butts.

MEXICO CITY — Mexico's state oil monopoly is in critical condition and needs to boost exploration and seek outside expertise to replenish oil reserves that are expected to last less than a decade, energy officials said this week.

President Felipe Calderon, however, said during a Sunday ceremony marking the 69th anniversary of the nation's oil nationalization that there are no plans to privatize the industry and that Petróleos Mexicanos, or Pemex, "will always continue to belong to all Mexicans."

Pemex's proven reserves have fallen to the equivalent of 9.3 years of production from 9.7 years in 2005, and daily output declined last year by 2.3 percent to about 3.2 million barrels, officials said at the ceremony in the Gulf coast state of Veracruz.

"The situation of Petróleos Mexicanos is critical and merits immediate attention," Pemex Chief Executive Jesus Reyes Heroles said.


http://www.chron.com/disp/story.mpl/business/4644856.html

....FYI they are one of our biggest suppliers.

NEW YORK — Gasoline prices rose for the seventh straight week to an average of about $2.58 a gallon nationwide, according to a government report released Monday.

The U.S. Energy Information Administration reported that drivers paid an average of $2.577 a gallon for regular gasoline in the week that ended March 19, up from $2.559 of the prior week.

Retail gasoline prices are 7 cents higher than they were a year ago at this time.

The pump price rose most drastically in the Rocky Mountain region, where average prices jumped 9 cents from the prior week to $2.502 a gallon. Drivers on the West Coast paid the highest average price, however, of $2.946 a gallon, up from $2.92 a week earlier.

<snip>
U.S. refineries are expected to boost their crude oil runs by 1.5 million barrels per day to 16.1 million barrels daily by June to meet summer driving demand, Evans said. Refinery demand for crude is weaker right now then it will be in a couple of months.

That's why "you've got that contrast between relatively weak initial demand for crude oil and farther out strength," Evans said. A gallon of heating oil closed roughly flat at $1.6884. Natural gas prices fell 7.7 cents to settle at $6.847 per million British thermal units.

http://www.chron.com/disp/story.mpl/business/4645105.html

Thank God it won't have to drive in the summer like I do now. I filled my car up at the start of spring break and only used 1/4 for all my prn work during the break. I am close to everything I need and could even use a bike if needed. Gas prices are going to be hellish this year-the first time a hurricane hits the Gulf.

NEW YORK (AP) -- Crude oil prices ended higher Tuesday in light trading ahead of the weekly inventory report. Gasoline futures briefly jumped to a more than six-month high on expectations of summer driving demand and refinery disruptions, but later gave back its gains.

On the New York Mercantile Exchange, light, sweet crude for April delivery rose 14 cents to settle at $56.60 a barrel on the contract's last day of trading. However, prices for futures contracts ended lower. The May contract fell 45 cents to $59.25 a barrel, while the June contract lost 42 cents at $60.63.

Prices flip-flopped all day in light volume trade amid little news, with "the bulls getting a little something and the bears getting a little something," said Phil Flynn, an analyst Alaron Trading Corp. in Chicago.

"Now that May has taken over, it will interesting to see if prices rise in the near term," Flynn said.

more...
http://biz.yahoo.com/ap/070320/oil_prices.html?.v=16

Barclays PLC is in exclusive talks to buy LaSalle Bank parent ABN Amro Holding NV in what would be the world's largest financial-services acquisition.

Barclays, the third-biggest U.K. bank, and ABN Amro, the biggest Dutch bank, are holding ''preliminary discussions,'' they said in separate statements Monday. ABN Amro's stock rose 9.7 percent to 29.96 euros in Amsterdam, valuing the company at 57 billion euros ($76 billion), after speculation the two banks were in negotiations.

Acquiring ABN Amro, which has branches in 53 countries and owns LaSalle Bank in Chicago, would help Barclays to extend retail banking outside the U.K. to Italy and the United States and build up its securities, asset- and wealth-management arms.

The companies are aiming to create ''a highly complementary partnership,'' Barclays and ABN Amro said after the close of trading in Europe. ''The talks are at an early and exploratory stage, and there can be no certainty that they will lead to a transaction.''

http://www.suntimes.com/business/303932,CST-FIN-lasalle20.article

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

Last trade 83.32 Change -0.04 (-0.05%)

US Markets Prepare For Fed And A Wave Of Housing Market Data

http://www.dailyfx.com/story/dailyfx_reports/cross_markets_data_reaction/US_Markets_Prepare_For_Fed_1174087807299.html

How Will The Markets React?

Last week was an interesting one for US assets. While treasuries and equities markets settled down from sizable drafts of volatility, the US dollar built up momentum for a final hour break in many of its major pairings. The divergence in behavior likely stemmed from shifting priorities between the major investment vehicles. For FX, the fracas in the US depressed mortgage market didn’t immediately affect the bottom line for traders, as they instead focused on economic indicators like retail sales, consumer price inflation and the Empire Manufacturing survey. Conversely, the very real plunge in the banking, financial and mortgage sectors in the major stock indices was difficult to ignore for equity traders and interest-rate sensitive debt markets. As time wore on though, the sub-prime companies saw some level of rebound; while dollar traders, disappointed by a mixed bag of economic indicators, finally responded to the possible effects of a credit crunch on exchange flows and the Federal Open Market Committee’s rate decision next week. Looking ahead to gathering of policy makers on Wednesday, predictions are firmly set behind a pass on the decision of changing the Fed Fund rate and a largely untouched communiqué. There will be some interest in how the Fed responds to the modest acceleration the major inflation gauges and if they believe there will be any considerable damage done by the defaults and credit runs on sub-prime lenders. Also, there is a chance that the Board of Governors alters their outlook for the two underperforming sectors of the economy: manufacturing and housing. In past statements, the members have said the slump in factory activity is passing while the housing correction may be seeing a bottom. Housing will be of particular importance as three indicators will weigh in on the health of the sector.

...more...

Dollar Moves Higher Despite Homebuilder Pessimism

http://www.dailyfx.com/story/dailyfx_reports/daily_fundamentals/Dollar_Moves_Higher_Despite_Homebuilder_1174344648195.html

US Dollar – The greenback gained on the Euro, Yen and Canadian dollar but dropped against the British pound on hawkish undertones in the UK. Nonetheless, dollar strength was present and widely countered the results according to the NAHB housing market index. According to the survey, sentiment fell in the month of March, lower than expected, as subprime concerns permeated the sector. Homebuilders, once running high on continuous demand for new residential houses, were struggling to recover from the decline in overall sales. Even worse, speculation continues that further lending will be crimped on a rising number of subprime defaults, leaving a drag on the overall sector. For the record, the NAHB Wells Fargo sentiment index dipped to 36 from a previous 39. Continued declines through 50 reflect respondents remain negative on overall conditions. Incidentally, the lower than expected results, combined with recent commentary involving words like ‘recession’ and ‘subprime spillover’ are beginning to put pressure on near term Federal Reserve expectations. Although policy makers are not likely to shift their risk assessment in this week’s decision, the market is now beginning to price in a rate cut by the end of the year. Extreme forecasts are pitting 2 rate cuts by December with futures and options contracts pricing in a whopping 3 rate decisions to the downside. One thing seems to be in common, however, and that is the general consensus is estimating one 25 basis point rate cut before the end of the third quarter. The increase in speculation will support rising scrutiny over this week’s post-decision rhetoric, ultimately dictating the dollar’s near term future.

...more...

NEW YORK (CNNMoney.com) -- Subprime mortgages have been generating a lot of attention, and worry, among investors, economists and regulators, but those loans may be only part of the threat posed to the housing market by risky lending.

Some experts in the field are now concerned about the so-called Alt. A mortgage loan market, which has grown even faster than the market for subprime mortgage loans to borrowers with less than top credit.

Alt. A refers to people with better credit scores (A-rated) who borrow with little or no verification of income, or so-called alternative documentation. But some people in the industry call them "stated income" loans, or worse, "liar loans." And they were an important part of the record real estate boom of 2004 and 2005 that has recently shown signs of turning into a bust.

Standard & Poor's estimates that the Alt. A market has gone from less than $20 billion in loans in the fourth quarter of 2003 to more than $100 billion in each of the last three quarters. Overall, new Alt. A loans totaled $386 billion in 2006, according S&P's estimates - up 28 percent from 2005.

http://money.cnn.com/2007/03/19/news/economy/next_subprime/index.htm?postversion=2007031917

New Century says cut off by Fannie Mae

39 minutes ago

NEW YORK (Reuters) - New Century Financial Corp. (Other OTC:NEWC - news),
a struggling mortgage lender to people with poor credit histories, said on
Tuesday it can no longer sell mortgage loans to Fannie Mae (NYSE:FNM - news)
or act as the mortgage financier's primary servicer of mortgage loans.

In a filing with the U.S. Securities and Exchange Commission, New Century
said Fannie Mae terminated "for cause" a mortgage selling and servicing
contract with its New Century Mortgage Corp., citing alleged breaches of
that contract and others. New Century said it received notice on March 14.

Fannie Mae was not immediately available for comment.

Separately, Irvine, California-based New Century said California issued an
order barring it from taking loan applications, and that it entered similar
consent agreements with Florida and Washington state regulators. At least
13 states have required it to halt lending.

-snip-

http://news.yahoo.com/s/nm/20070320/bs_nm/usa_subprime_newcentury_dc

NEW YORK (CNNMoney.com) -- Investors were looking for direction early Tuesday as they awaited the latest reading on the battered home building market and Wednesday's statement from the Federal Reserve.

Stock futures dipped in early trading, although a comparison to fair value, which predicts the direction of stocks at the open, pointed to a flat to modestly higher start for Wall Street.

-cut-

Economists surveyed by Briefing.com forecast starts edged up to a seasonally adjusted annual rate of 1.45 million in February from a nine-year low in January. Building permits, which are seen as a measure of builder confidence, are seen slipping again to 1.55 million from a 1.57 million pace in January. A survey of builder confidence by the National Association of Home Builders released Monday showed confidence fell in March for the first time since September.

http://money.cnn.com/2007/03/20/markets/stockswatch2/index.htm?postversion=2007032006

And the bloody bastards want people to have access
to their Social Security to invest in the market...
He tells exactly how it is done...how he did it...
ye gotta watch this...
even though we all have known forever.
F**$#ing admits everything...

http://www.youtube.com/watch?v=708wDFX28lc

It's all over the MSM now...
On Huffpo also...
He was bragging about it...
Bastard

http://www.nypost.com/seven/03202007/business/cramer_reveals_a_bit_too_much_business_roddy_boyd.htm


:hi:

People's Choice Home Loan files for Chapter 11

By Jonathan Stempel

51 minutes ago

NEW YORK (Reuters) - People's Choice Home Loan Inc., a California-based
mortgage lender to people with poor credit histories, filed for Chapter 11
bankruptcy protection on Tuesday, according to court papers.

The Irvine, California-based unit of People's Choice Financial Corp., a real
estate investment trust, became at least the fourth large U.S. subprime
lender to seek protection from creditors in the last three months.

It listed more than $100 million of both assets and debts in its filing with
the U.S. Bankruptcy Court for the Central District of California.

-snip-

Read more: http://news.yahoo.com/s/nm/20070320/bs_nm/usa_subprime_peopleschoice_dc

SAN ANTONIO (AP) -- The chairman and chief executive of Blockbuster Inc. will leave by the end of the year, ending a high-profile salary squabble with the movie-rental company's board, it announced Tuesday.

John Antioco, who has led the company since 1997, has repeatedly clashed in the past two years with billionaire investor Carl Icahn, who is on the board and holds about 10 percent of Blockbuster's stock. In the most recent dispute, Icahn and the rest of the board tried to withhold a chunk of Antioco's 2006 bonus.

At the end of last year, the Dallas-based company reported strong growth in the number of Total Access subscribers, its new program that merges online rental service with its retail stores in an effort to fight off competition from Netflix Inc. But launch costs were higher than expected, and cost-cutting and declining earnings at the company's retail stores have pounded the company's stock price in the past few years.

Under the revised employment contract announced Tuesday, Antioco will receive a bonus of $3.1 million for 2006. The board had previously offered him $2.3 million, but he argued he was entitled to $7.7 million under his previous agreement.

more...
http://biz.yahoo.com/ap/070320/blockbuster_ceo.html?.v=8

AMSTERDAM, Netherlands (AP) -- Shares in ABN Amro Holding NV and Barclays PLC rose Tuesday, as investors applauded the idea of a potential combination of the two banks -- or bet that their talks will falter and each may eventually be bought by someone else.

If a deal does take place, it would be one of the largest cross-border combinations in European banking history. Britain's Barclays has a market capitalization of about $86 billion while ABN, the Netherlands' largest bank, is valued at around $76 billion.

Both companies confirmed late Monday that they were in "exclusive" merger talks. On Tuesday, Barclays, the presumptive senior partner in the deal, added that a combined company would be incorporated in Britain, with Dutch headquarters, a Dutch-nominated chairman and a British chief executive.

But analysts said the logic for a combination wasn't great.

more...
http://biz.yahoo.com/ap/070320/netherlands_abn_amro.html?.v=11

HOUSTON (AP) -- Oil services firm Halliburton Co. on Tuesday said it expects first-quarter earnings below Wall Street estimates as its energy services group struggles with decreased drilling and completion activities in Canada and the northern United States.

Halliburton expects a quarterly per-share profit of between 49 cents and 54 cents, excluding any potential additional losses from select overseas projects associated with KBR Inc., the engineering, construction and government-services arm that the company is spinning off.

Analysts polled by Thomson Financial, on average, expect a first-quarter profit of 59 cents per share.

Shares of Halliburton, which was once led by Vice President Dick Cheney, fell $1.47 to $30.93 in afternoon trading on the New York Stock Exchange.

http://biz.yahoo.com/ap/070320/halliburton_outlook.html?.v=2

NEW YORK (AP) -- Shares of department store chain Gottschalks Inc. surged to their highest level in 12 years Tuesday after an analyst upgraded the company, saying earnings will rise and the company is a prime takeover target.

C.L. King & Associates analyst Mark Montagna bumped the stock to "Strong Buy" from "Accumulate," and raised his target price to $20 from $14.

In a client note, Montagna said the company is still a good buyout target, but is now posting better earnings-per-share growth, and results at its home department will begin to improve later in 2007.

"We continue to believe Gottschalks is highly likely to be taken over," he said. "We believe that likelihood has increased as a result of earlier-than-planned meaningful earnings achievement."

more...
http://biz.yahoo.com/ap/070320/gottschalks_mover.html?.v=1

NEW YORK (AP) -- Chip maker Advanced Micro Devices Inc. slipped Tuesday after an analyst suggested it may have lost market share to rival Intel Corp. in the first quarter. Meanwhile, the sector as a whole rose.

HSBC analyst Rohit Pandey thinks that Intel and AMD aggressively discounted processors during the quarter, but suspects Intel had a price advantage as of the beginning of March.

"We believe pricing has worsened slightly in the first quarter, and Intel entered March with a price advantage in most categories other than mid-tier dual core desktop microprocessors," Pandey wrote in a note to investors. "While early January price parity in the desktop and laptop markets has proved fleeting, we believe fundamentals are in place for price competition to abate, as AMD does not have the financial muscle to sustain a price-cutting strategy."

AMD shares were down 29 cents, or 2.1 percent, at $13.45 on the New York Stock Exchange. Intel shares were down 7 cents at $19.03 on the Nasdaq Stock Market.

more...
http://biz.yahoo.com/ap/070320/sector_snap_semiconductors.html?.v=1

NEW YORK (AP) -- Shares of online retailers were mixed Tuesday, with eBay Inc. edging down slightly and Overstock.com Inc. seeing modest gains.

Caris & Co. analyst Tim Boyd said in a Tuesday client note that a count of eBay's core listings 11 weeks into the quarter showed they are tracking in line with his estimates, and reiterated his "Above Average" rating on the stock.

Boyd said the online auctioneer's core listings count, which excludes listings from stores, is down 1 percent sequentially so far this quarter, compared with his estimate of up 1 percent. EBay's store listings count is down 4 percent quarter-over-quarter, below his model estimate of up 16 percent.

The count, according to Boyd, indicates core listings make up 86 percent of total listings, and store listings the remaining 14 percent, which is the same as last quarter's mix.

more...
http://biz.yahoo.com/ap/070320/sector_snap_internet_retailers.html?.v=1

NEW YORK (AP) -- Shares of oil and gas services tumbled Tuesday after Halliburton Co. said its first-quarter earnings will not reach analysts' predictions.

Houston-based Halliburton now expects a profit of 49 cents per share to 54 cents per share for the quarter, citing decreased drilling and completion activity in Canada and the northern United States. Analysts polled by Thomson Financial expected an average of 59 cents per share for the quarter.

The new estimate does not include potential losses for KBR Inc., which Halliburton is spinning off. Halliburton included a project in Nigeria and a joint venture in Algeria as items that could result in losses for KBR.

Halliburton shares dropped $1.97, or 6.1 percent, to $30.43 on the New York Stock Exchange. KBR stock was down 78 cents, or 3.6 percent, to $20.77 on the NYSE, and briefly dipped to a new low of $20.45.

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LONDON (AP) -- European shares turned higher Tuesday, helped by positive sentiment on Wall Street and as gains from banks such as ABN Amro offset poorly received earnings from Deutsche Post and Friends Provident.

The U.K. FTSE 100 index closed up 0.5 percent at 6,220.30, the German DAX Xetra index gained 0.4 percent to 6,700.29 and the French CAC-40 index added 0.8 percent to 5,503.27.

Earlier in the day European stocks traded lower.

"I think that there is caution and hesitation in the market as the naturally long players await a clearer indication on market direction," said Manus Cranny at Cantor Index, noting that the result of Wednesday's Federal Reserve interest rate meeting will be important.

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NEW YORK (AP) -- The number of Internet users in the world's most populous country is skyrocketing, but this hasn't always meant a smooth ride for China's Internet companies, especially with last month's market selloff in Asia.

U.S.-traded shares of Baidu.com Inc. are down more than 14 percent since Feb. 26, the day before a nearly 9 percent drop in the benchmark Shanghai Composite index rippled through markets around the world.

And the parent company of Tom Online Inc., a Chinese Web portal and wireless service provider, has decided to take it private, citing a deterioration in the unit's performance.

Still, analysts are seeing the pause in some of China's Net stocks as a buying opportunity, and they are predicting robust growth as businesses spend more and more on online ads.

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March 20 (Bloomberg) -- Housing starts rebounded in February from a nine-year low, easing concern that the U.S. real-estate slump will worsen and threaten the economic expansion.

Builders broke ground on new homes at an annual rate of 1.525 million last month, up 9 percent from the prior month and more than economists forecast, the Commerce Department said today in Washington. Building permits fell 2.5 percent.

The numbers eased speculation that climbing defaults on subprime mortgages would put additional homes on the market, leading builders to halt more projects and fire workers. At the same time, swings in the monthly figures don't convey the stability desired by Federal Reserve policy makers, who meet today and tomorrow to set interest rates.

``We aren't getting any worse, but we aren't getting much better either,'' said Brian Jones, an economist at Citigroup Global Markets Inc. in New York. ``The quicker we get the inventory problem behind us, that sets a platform for an improvement in the latter half of the year.''

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March 20 (Bloomberg) -- People's Choice Home Loan Inc., a mortgage lender for people with credit problems, filed for bankruptcy protection.

The Chapter 11 filing today in U.S. Bankruptcy Court in Santa Ana, California, comes as delinquency rates on so-called subprime home mortgages hit a four-year high. Subprime lenders specialize in loans to customers with bad credit or heavy debt.

People's Choice, based in Irvine, California, is the fourth subprime lender to file for bankruptcy since December, joining Ownit Mortgage Solutions LLC, Mortgage Lenders Network USA Inc. and ResMae Mortgage Corp.

In the past year, shares of three other subprime lenders -- Fremont General Corp., New Century Financial Corp. and NovaStar Financial Inc. -- have lost at least half their market value.

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March 20 (Bloomberg) -- U.S. Treasuries rose after a government report showed building permits, a sign of future construction, declined more than economists forecast in February.

Ten-year yields have held near a three-month low reached in early March on speculation a cooling property market and rising mortgage defaults will feed through and slow the broader economy. The Federal Open Market Committee is forecast to keep interest rates on hold tomorrow for a sixth time.

``The market is looking to some wording from the FOMC about housing,'' said Raymond Remy, head of fixed income in New York at Daiwa Securities America Inc., one of the 21 primary dealers that trade directly with the Federal Reserve. ``If they note housing as a problem, then bonds will go higher.''

The yield on the benchmark 10-year note declined 3 basis points, or 0.03 percentage point, to 4.54 percent at 2 p.m. in New York, according to bond broker Cantor Fitzgerald LP. The price of the 4 5/8 percent security maturing in February 2017 rose 6/32, or $1.88 per $1,000 face amount, to 100 21/32.

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March 20 (Bloomberg) -- Gold in New York rose to the highest in more than two weeks as the weakening U.S. dollar increased the metal's appeal as an alternative investment.

Gold generally moves in the opposite direction of the U.S. currency, which weakened today on speculation that a slowing economy may force the U.S. Federal Reserve to cut interest rates this year while the U.K. and Europe raise rates to contain inflation. Gold is up 3.3 percent this year while the dollar has fallen 0.7 percent against a basket of six major currencies.

``Rates have been easing higher overseas and that should weaken the dollar and support gold,'' said Marty McNeill, a trader at R.F. Lafferty Inc. in New York.

Gold futures for April delivery rose $4.70, or 0.7 percent, to $659 an ounce on the Comex division of the New York Mercantile Exchange, the highest closing price for a most-active contract since March 1.

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March 20 (Bloomberg) -- Natural gas rose from a two-month low in New York on concern that a surplus of gas in storage may be reduced as late season cold leads utilities to pull more gas from reserves.

Frigid weather last month and spells of cold this month have cut into the surplus versus the five-year average, which stood at almost 500 billion cubic feet, or 20 percent, as of Jan. 12, government data showed. It shrank to 158 billion cubic feet, or 12 percent, in the week ended March 9.

``The combination of cold weather in February and March has knocked down storage inventories more than we had anticipated,'' said Kenneth Yeasting, an analyst with Cambridge Energy Research Associates in Detroit. ``We anticipate that prices are going to firm up a bit'' once companies begin buying gas for placement in storage, he said.

Gas for April delivery rose 6.4 cents, or 0.9 percent, to $6.911 per million British thermal units at the 2:30 p.m. close of floor trading on the New York Mercantile Exchange. The price yesterday reached $6.812, the lowest since Jan. 19. Benchmark futures have gained 9.7 percent this year.

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March 20 (Bloomberg) -- The Standard & Poor's 500 Index posted its best two-day gain since September, led by technology companies and steelmakers, on prospects demand for computer chips will grow and steel prices will increase.

SanDisk Corp., the world's largest maker of flash-memory cards, and Juniper Networks Inc., which makes equipment for directing Internet traffic, climbed after analysts upgraded the shares. The Nasdaq Composite Index headed for its highest close this month, while the Dow Jones Industrial Average advanced for a second day.

Earnings at technology companies are set to increase 14 percent this year and 17 percent in 2008, the fastest among 10 industries, according to analyst estimates compiled by Bloomberg. The shares have the third-worst performance as a group this year after financials and energy companies, slipping 1.4 percent.

``Businesses have a lot of cash on their balance sheets, and one of the thing they're doing is trying to make themselves more efficient through the use of technology,'' said Tom Wirth, who helps oversee $1.4 billion at Chemung Canal Trust Co. in Elmira, New York. ``You see quarter after quarter of progress being made with these companies.''

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DENVER (AP) -- Former Qwest Communications chief Joe Nacchio deceived investors and the public when he secretly sold $101 million in Qwest stock before its share price plummeted, a federal prosecutor declared as opening statements began Tuesday in Nacchio's insider trading trial.

"This is a case about cheating," Assistant U.S. Attorney James Hearty told jurors. "He sold $100 million worth of Qwest stock when he knew about problems at Qwest -- problems that people outside Qwest did not know."

Defense attorneys were to make their opening statement later. They say Nacchio was optimistic about the company's future because he expected Qwest to win lucrative contracts from clandestine government agencies.

Nacchio's case, Hearty said, "is based on a very simple principle -- fairness. Corporate insiders are in a position to take advantage of information people outside don't know."

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NEW YORK (AP) -- Adobe Systems Inc., a San Jose, Calif.-based business software maker, is set to post fiscal first-quarter earnings after the closing bell Tuesday.

Analysts polled by Thomson Financial forecast earnings of 29 cents per share on flat revenue of $656 million. In December, Adobe Systems forecast earnings of 28 cents to 30 cents per share on revenue ranging between $640 million and $670 million.

Shares of Adobe Systems rose 49 cents to $40.73 on the Nasdaq Stock Market.

Orlando, Fla.-based Darden Restaurants Inc., which operates the Olive Garden and Red Lobster chains, will report fiscal third-quarter earnings after the bell. Wall Street expects earnings of 70 cents per share, with sales forecast to rise 6 percent to $1.56 billion.

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CHICAGO (AP) -- Soybean and grain futures finished higher Tuesday on the Chicago Board of Trade.

Wheat for May delivery rose 7 3/4 cents to $4.62 3/4 a bushel; May corn rose 7 1/4 cents to $4.05 1/4 a bushel; May oats rose 6 1/2 cents to $2.83 1/2 a bushel; May soybeans rose 5 1/4 cents to $7.64 3/4 a bushel.

Beef futures ended lower while pork was mixed on the Chicago Mercantile Exchange.

April live cattle fell .20 cent to 97.60 cents a pound; April feeder cattle fell .97 cent to $1.0555 a pound; April lean hogs fell .30 cent to 64.07 cents a pound; May pork bellies rose .35 cent to $1.0355 a pound.

http://biz.yahoo.com/ap/070320/board_of_trade.html?.v=3

NEW YORK (AP) -- Copper prices reached a three-month high Tuesday on improved U.S. housing data and tight global supplies, but the move did little to stir copper miner shares.

"Copper prices jumped on the expectations for rising demand and very low inventory levels throughout the marketplace, which now stand at less than four days of global consumption," according to a report by MKS Finance SA in Geneva.

Fresh U.S. housing data also offered some measure of support.

The Commerce Department reported that construction of new homes and apartments rose 9 percent in February, which some took as a bullish indicator that demand in the residential housing market will recover. However, the report also showed a drop in the number of building permits applications.

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NEW YORK (AP) -- A $5.93 billion takeover offer for Affiliated Computer Services Inc. lifted the stock and the S&P 500 Tuesday.

Dallas-based ACS, which was the benchmark index's biggest riser, climbed $8.66, or 16.9 percent, to close at $59.95 on the New York Stock Exchange.

The S&P 500 rose 8.88 points to 1,410.94.

Two Nasdaq-traded stocks also contributed to a higher trading day for the index, following analyst upgrades.

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NEW YORK (AP) -- The Nasdaq 100 enjoyed trading gains Tuesday, as some of the index's stocks were boosted by analyst upgrades.

The Nasdaq 100, which includes 100 of the largest nonfinancial stocks traded on the Nasdaq Stock Market, jumped 9.02 points to 1,767.25. The Nasdaq composite advanced 13.8 points to 2,408.21.

Milpitas, Calif.-based SanDisk Corp. rose $1.92, or 4.8 percent, to finish at $41.91 after CIBC analyst Daniel M. Gelbtuch upgraded the stock, saying he expects flash memory prices to stabilize.

Networking equipment maker Juniper Networks Inc. surged 78 cents, or 4.3 percent, to close at $18.75 on heavy volume. Morgan Stanley analyst Scott Coleman upgraded the Sunnyvale, Calif.-based telecommunications company to "Overweight".

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NEW YORK (AP) -- The 30-stock Dow Jones Industrial Average on Tuesday saw boosts for some of its components from higher oil prices and a positive analyst note.

The Dow rose 61.93 points to wind up at 12,288.10.

Wal-Mart Stores Inc., the world's largest retailer, rose 71 cents to $47.30, ending its fourth straight higher trading day.

A rise in crude oil prices helped buoy shares of Exxon Mobil Corp., the world's largest oil producer. Shares advanced 90 cents to close at $72.

Citigroup Inc. climbed 58 cents to finish at $50.64, after an A.G. Edwards analyst began coverage on the financial services company with a "Buy" rating and a $58 target price.

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Dow 12,288.10 61.93 (0.51%)
Nasdaq 2,408.21 13.80 (0.58%)
S&P 500 1,410.94 8.88 (0.63%)
10-Yr Bond 4.547% 0.024

NYSE Volume 2,795,937,000
Nasdaq Volume 1,787,836,000

4:20 pm : Evidently buyers were still hungry to own stocks Tuesday as investors built on a broad-based rally a day earlier that was predicated in part on hopes that tomorrow's Fed statement will reflect a more accommodative policy stance.

Investors also embraced an added sense of stability in overseas markets, as the Bank of Japan leaving rates unchanged at 0.5% eased concerns tied to the unwinding of the carry trade.

Good overall housing data, more M&A news, and relief in the troubled subprime mortgage space also helped the bulls extend Monday's sizable gains.

After plunging 14% to a 10-year low in January, housing starts rebounded in February with a 9% rise to a 1.525 mln annual rate. Building permits, a sign of future construction, fell for the 12th time in 13 months, which investors felt will help with the housing inventory glut. It is worth noting, though, that while the volatile data overall eased the worst of fears about a housing market crash, the lack of a clear sign of a bottom didn't exactly provide overwhelming conviction that the Fed's impending statement will reflect the more balanced policy stance investors began pricing into the market yesterday.

As evidenced by the S&P 500 turning in a better performance than the Dow and Nasdaq, it's not surprising to see just how big of an impact more bargain-hunting interest throughout the beaten-down Financials sector had on the day's action. Another round of M&A activity helped the brokerage group build on yesterday's 1.6% advance. Citigroup (C 50.64 +0.58), whose Global Markets unit is funding the $8.2 bln buyout of Affiliated Computer Services (ACS 59.97 +8.68), rose 1.2%.

Accredited Home Lenders (LEND 10.77 +1.82) receiving a commitment for a $200 mln term loan from Farallon Capital helped silence concerns about the subprime mortgage misfortunes potentially spilling over into the broader economy. Insurance companies got a lift after Bear Stearns upgraded the group on valuation.

Of the other nine sectors trading higher, Utilities actually turned in the best performance as its defensive characteristics became attractive as a hedge against tomorrow's Fed directive possibly piquing concerns about the pace of economic growth. DJ30 +61.93 NASDAQ +13.80 SP500 +8.88 NASDAQ Dec/Adv/Vol 1078/1937/1.67 bln NYSE Dec/Adv/Vol 957/2321/1.33 bln

3:30 pm : Stocks are extending their reach to the upside going into the close as sellers begin to run for cover. Technology bouncing off its afternoon lows, as Application Software (+1.3%) breaks into today's top ten performing industry groups on the S&P 500, is giving the market a noticeable lift.

However, it is worth noting that Utilities (+1.1%) and Consumer Staples (+0.8%) are now the best performing sectors today. The absence of specific news to account for their outperformance leads one to believe that their defensive characteristics are attracting buyers as investors hedge their bets ahead of the Fed possibly piquing concerns about the pace of economic growth.

DJ30 +55.04 NASDAQ +12.65 SP500 +7.64 NASDAQ Dec/Adv/Vol 1149/1845/1.41 bln NYSE Dec/Adv/Vol 1043/2203/1.11 bln

3:00 pm : More of the same for stocks as the indices remain mired in relatively tight trading ranges heading into the final of trading. As evidenced by modest market gains, it's increasingly evident investors are expecting a friendlier Fed policy statement tomorrow that weighs the economic risks as being equal to the risks of inflation.

However, a change in the policy statement would have to present a bias towards easing to provide a real boost to the stock market. We expect at best a balanced statement that doesn't provide the fuel for a sustainable rally since any change to the directive's wording is now partly priced into the market. DJ30 +43.50 NASDAQ +9.43 SP500 +6.27 NASDAQ Dec/Adv/Vol 1191/1773/1.28 bln NYSE Dec/Adv/Vol 1088/2127/1.00 bln

tho the buck be sad

Last trade 83.07 Change -0.29 (-0.35%)