STOCK MARKET WATCH, Thursday March 22

Source: DU

Thursday March 22, 2007

COUNTING THE DAYS
DAYS REMAINING IN THE * REGIME 669 LONG DAYS
DAYS SINCE DEMOCRACY DIED (12/12/00) 2278 DAYS
WHERE'S OSAMA BIN-LADEN? 1982 DAYS
DAYS SINCE ENRON COLLAPSE = 1942
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 21, 2007

Dow... 12,447.52 +159.42 (+1.30%)
Nasdaq... 2,455.92 +47.71 (+1.98%)
S&P 500... 1,435.04 +24.10 (+1.71%)
Gold future... 660.00 +1.00 (+0.15%)
30-Year Bond 4.70% -0.01 (-0.23%)
10-Yr Bond... 4.52% -0.03 (-0.64%)






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

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Read more: DU

Consumer Staples & Health Care Set to Have Their Day in the Sun Once Again
Period of Out-performance Dead Ahead
BY CHRIS PUPLAVA

Previous commentaries on the state of the consumer, housing, and the general economy have made clear that the economy is slowing as the consumer retrenches amidst a housing recession. As consumers reign in spending on discretionary items, the percentage of non-cyclical items such as food, health care, cosmetics and toiletries, total retail sales rises. This results as these items are inelastic goods making them non-cyclical as compared to plasma televisions, computers, jewelry and so forth, that are not as dependent on economic growth.

When non-cyclical relative retail sales rise during periods of economic slowing, the stocks of companies which produce these goods rise relative to the overall market (S&P 500), benefiting from sector rotation as money flows out of cyclical sectors and into non-cyclical sectors.

The converse occurs when the economy reaccelerates and money rotates out of the defensive non-cyclical sectors and into early cyclicals. Non-cyclical sector sales continue to rise with the expanding economy, just at a slower pace than cyclical sectors. With money flowing out of defensive sectors at the same time non-cyclical sales continue to rise leads to a compression in valuations. This continues until the point at which the economy slows and money flows back into defensive sectors and bids up prices at a faster pace than sales growth, leading to valuation expansion.

-cut-

The Markets

The Federal Reserve’s decision to keep rates steady as well as removing its tightening bias sent the markets soaring after they spent most of the day trading within a narrow range. The Federal Open Market Committee (FOMC) said in a statement today that “Future policy adjustments will depend on the evolution of the outlook for both inflation and economic growth.” The FOMC also commented that inflation remains the “predominant policy concern” and that recent economic indicators have been “mixed”' and the “adjustment in the housing sector is ongoing.”

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

8:30 AM Initial Claims 03/17
Briefing Forecast 320K
Market Expects 325K
Prior 318K

10:00 AM Leading Indicators Feb
Briefing Forecast -0.6%
Market Expects -0.3%
Prior 0.1%

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

10. U.S. continuing jobless claims fall 69,000 to 2.5 mln
8:30 AM ET, Mar 22, 2007 - 3 minutes ago

11. U.S. jobless claims fall to six-week low
8:30 AM ET, Mar 22, 2007 - 3 minutes ago

12. U.S. 4-wk avg. initial claims fall 3,750 to 326,000
8:30 AM ET, Mar 22, 2007 - 3 minutes ago

13. U.S. weekly initial jobless claims fall 4,000 to 316,000
8:30 AM ET, Mar 22, 2007 - 3 minutes ago

18. Leading indicators point to 'moderate but choppy' growth
10:00 AM ET, Mar 22, 2007 - 13 minutes ago

19. U.S. Jan. leading indicators revised -0.3% vs. +0.1%
10:00 AM ET, Mar 22, 2007 - 13 minutes ago

20. U.S. Feb. indicators fall more than 0.4% expected
10:00 AM ET, Mar 22, 2007 - 13 minutes ago

21. U.S. Feb. leading economic indicators fall 0.5%
10:00 AM ET, Mar 22, 2007 - 14 minutes ago

SINGAPORE - Oil prices climbed above $60 a barrel in Asian trading Thursday after the U.S. government reported a greater-than-expected drop in gasoline stockpiles.

Light, sweet crude for May delivery rose 47 cents to $60.08 a barrel in electronic trading on the New York Mercantile Exchange midday in Singapore.

Brent crude contract for May gained 47 cents to $61.24 a barrel on the ICE Futures exchange in London.

U.S. gasoline stocks declined by 3.4 million barrels to 210.5 million barrels in the week ended March 16, according to the U.S. Energy Information Administration's weekly report. The drop was larger than the 1.6 million barrel drop forecast by analysts surveyed by Dow Jones Newswires.

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

PERRY, Ga. - With gas prices climbing, the turnout at a motor-home convention in the heart of Georgia this week is much better than most outsiders would expect.

About 20,000 motor-home owners and industry representatives have gathered at the Family Motor Coach Association's 77th International Convention to kick the tires of more than 1,000 enticing new models — some costing more than $1 million and getting only 6 miles per gallon.

The recreational vehicle industry has been reporting record sales for the past five years, despite rising costs at the pump. Insiders credit a growing number of baby boomers who want the gas-guzzling vehicles for retirement and younger families opting for vacations closer to home for offsetting any potential losses because of soaring fuel costs.

-cut-

Winnebago Industries Inc., one of the nation's leading motor-home manufacturers, reported a 2.2 percent decline in net income and a 3.6 percent drop in revenues in its most recent quarter, saying rising fuel prices for shaking consumer confidence. But Kevin Broom, a spokesman for the Recreational Vehicle Industry Association, noted that Winnebago makes only motor homes and that its earnings report was not a reflection of the whole RV industry.

http://news.yahoo.com/s/ap/20070322/ap_on_bi_ge/motor_homes_gas_prices_1

Gee....I wonder.


:eyes:

Unavailable for comment.

and other jingoistic crap.

:donut: and lurkers. OK, so I guess I am qualified to talk on this subject too. I live in a very nice RV resort. Now this isn't scientific, but at least 1/2 of our folks are retired and well to do. They had nice union jobs up north or they were engineers, professors, etc and instead of a vacation home, they buy the RV they can afford. Many, about 1/8th, do their own businesses (self employed and do their business while traveling-thus deductible). We just had the rodeo here and I met many workers that travel the various circuits for a living. Some travel here for medical care (1/4th). They are treated as outpatients and using an RV is a cost effective way to get treatment. And then an 1/8 th of us are like hubby and I-if you don't travel much, it can be a fairly low cost way to live. When the price of gas goes up, folks tend to stay longer at the RV park.
Now, about the politics-most I have met are pretty much Democrats or libertarian. I can't say I was too surprised. And most are fairly well educated and of course-well traveled(which educates you too). There is much more tolerance of folks that are different. Of course we have some folks like you describe-but not so many as you might think. So my Indian musician hubby and his native American Nurse wife fit right in. And believe me, we are not nearly as wealthy as some of these folks.

Happy hunting and watch out for the bears.

But, looking at those who would buy a $1,000,000 (or even a $500,000) RV, I couldn't imagine they'd mostly park it at an RV resort. They'd probably treat it like a 50' yacht and follow their football team around or something.

we had some folks here for the Rice-KSU game now that I think about it. Those RV's that cost a mil are really sweet and come with all the bells and whistles like retracting plasma tvs, marble counters, italian stone tile, etc. Average new ones I see are about 100K-still too dear for me. But if your paid off home has appreciated, you need to downsize, and your children are scattered about the country and you want to check out the area you many retire in.....who am I to make a judgment. I am just cheap and wouldn't pay that much, that's all. The 3K we paid was a bargain for us and we will stay put for a while.

NEW YORK - U.S. stock futures hinted at a flat opening on Wall Street Thursday, a day after comments from the Federal Reserve set off a big rally.

Wall Street's perception that the Fed opened the way to a possible reduction in interest rates drove the Dow Jones industrials higher by about 159 points Wednesday and led the blue chip index to its best three-day performance since November 2004. Stocks in Asia and Europe followed suit Thursday, showing strong gains.

Dow futures expiring in June rose 1 point, or 0.01 percent, to 12,524. Standard & Poor's 500 index futures slipped 1.30, or 0.09 percent, to 1,443.70, while Nasdaq 100 index futures fell 2.00, or 0.11 percent, to 1,823.00.

http://news.yahoo.com/s/ap/20070322/ap_on_bi_st_ma_re/wall_street

The Nikkei climbed to a three-week high on Thursday, buoyed by renewed optimism about the US economy.

This sent export-focused and domestic sectors up across the board.

The Nikkei 225 was 1.5 per cent higher at 17,419.20. The broader Topix rose 1.4 per cent to 1,731.80.

The electrical machinery sector, which relies heavily on US and other overseas demand, gained 1.5 per cent. Sony (NYSE:SNE - news), the consumer electronics and entertainment giant, advanced 1.5 per cent to Y6,180.

But banking, which is heavily reliant on the home market, advanced at a similar pace. Mitsubishi UFJ Financial Group, the world's biggest bank by assets, rose 2.3 per cent to Y1,350,000.

http://news.yahoo.com/s/ft/20070322/bs_ft/fto032220070409329263

Borders Group Inc. (BGP) swung to a fourth-quarter loss and also announced plans to "reinvent itself" through a plan to roughly triple pretax profit margins.

The company's plan entails boosting inventory turnover by 25%, focusing on its domestic superstores, nearly cutting in half the size of the Waldenbooks chain, considering alternatives for most of its international stores, and in 2008 introducing a new e-commerce site.

This would end an alliance with Amazon.com Inc. (AMZN) that had been the core of Borders' online strategy. Borders transferred its online business to Amazon.com in 2001, shortly after the dot-com bust.

Waldenbooks - smaller stores operated mainly in malls - has been particularly affected by the downturn in the book market. As a result, Borders plans to close nearly half of its Waldenbooks outlets over the next 18 months. By the end of 2008, it expects to be operating only 300 Waldenbooks, down from 564 at the end of 2006.

http://money.cnn.com//news/newsfeeds/articles/djf500/200703220715DOWJONESDJONLINE000608_FORTUNE5.htm

Motorola Inc. said Wednesday that its already stumbling mobile-phone business has taken a big turn for the worse, and that senior management changes are in the works--including the sudden retirement of its chief financial officer.

Motorola also said it would bolster its stock repurchase program, seemingly a move to placate Carl Icahn, the controversial financier who's pushing for a massive buyback. But Motorola's planned buyback appears to fall short of what Icahn apparently wants, and the firm's deteriorating performance may well strengthen Icahn's hand, analysts said.

Schaumburg-based Motorola, just a few months ago still riding high on its hot-selling Razr model, said Thursday its mobile-phone division is now swimming in red ink. After one-time charges, the company expects to post a first-quarter net loss, its first quarterly loss in more than two years.

Wall Street analysts were forecasting a first-quarter profit of roughly 17 cents per share. Meanwhile, Motorola cut its quarterly revenue forecast by about 12 percent, estimating sales to be from $9.2 billion to $9.3 billion.

http://www.chicagotribune.com/business/chi-0703220236mar22,0,389479.story?coll=chi-business-hed

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

Last trade 82.90 Change +0.13 (+0.16%)

Federal Reserve Turns Slightly Dovish, Keeps Rates Unchanged At 5.25%

http://www.dailyfx.com/story/dailyfx_reports/daily_fundamentals/Federal_Reserve_Turns_Slightly_Dovish__1174512698977.html

US Dollar – No surprise, the Federal Reserve kept rates at the 5.25 percent benchmark in today’s widely anticipated decision. What has changed? The previous sentiment to higher inflationary pressures and further rate hikes seems to have dissipated as policy makers are potentially looking towards a more dovish outlook. Although US central bankers noted that inflationary pressures loom as the economy seems supported, they conceded to the fact that price growth is likely to moderate in the coming months. That simple change alerted markets to a plausible rate cut some time during the year and helped in softening the US dollar in New York session trading. Even less surprising was the fact that Chairman Ben Bernanke attempted to mix the sentiment by noting that the economy is expanding at a healthy rate and that further decisions will be broadly contingent on upcoming economic data. Realistically, today’s decision all but confirms what the overall consensus has been expecting and pricing in: that a rate cut is imminent as the world’s largest economy continues to drudge along at a relatively stable pace. Recent reports have showed that housing sector weakness is starting to creep into consumer spending patterns as manufacturing remains just shy of contractionary conditions. Ultimately, the sentiment is likely to keep weighted pressure on the dollar ahead of the weekend with little in the schedule to offer any short term reprieve. Focus will likely be placed on several speeches by Fed policy makers in the next two days, although they are not expected to offer significant clarity of today’s decision.

...more...

http://www.bloomberg.com/apps/news?pid=20601083&sid=aZtOgLQc5ISQ&refer=currency

March 22 (Bloomberg) -- The dollar rose from a two-year low against the euro and advanced versus the yen as traders speculated a day after the Federal Reserve revised its interest rate outlook that it won't lower borrowing costs soon.

The U.S. currency dropped yesterday after the central bank removed a previous reference in its statement to ``additional firming,'' signaling it's open to either lowering or raising interest rates. A government report today showed jobless claims unexpectedly dropped last week, indicating labor market strength. ``There are second thoughts about the statement,'' said Shaun Osborne, chief currency strategist in Toronto at TD Securities Inc. ``Talk about rate cuts is still way off. This gives the dollar some support in the short term.''

The U.S. currency rose to $1.3366 per euro at 10:05 a.m. in New York, from $1.3411 earlier, the weakest since March 2005, and from $1.3385 late yesterday. It also rebounded from 80.88 cents per Australian dollar, the weakest in 10 years, and a six-week low of $1.9727 per British pound. Sterling gained against the euro and the yen after a report showed sales at U.K. retailers rebounded more than expected last month, adding to speculation the Bank of England will keep raising interest rates from 5.25 percent this year. The yen weakened against the dollar, the pound and the New Zealand currency today after a global stock rally encouraged investors to return to the so-called carry trade by buying higher-yielding investments funded by yen-denominated loans. The Japanese currency fell to 117.72 per dollar from 117.54.

...

``What we'll need to see is the tone of comments from policy makers,'' said Jeremy Stretch, a senior currency strategist in London at Rabobank. ``The Fed has taken baby steps. It doesn't imply we're going to see a rate cut coming very soon.''

First-time claims for jobless benefits in the U.S. unexpectedly fell to 316,000 for the week that ended March 17 from a revised 320,000 the previous week, the Labor Department reported today. The median forecast of 39 economists surveyed by Bloomberg News was for a total of 323,000. The unemployment rate fell to 4.5 percent last month, approaching the five-year low 4.4 percent reached in October.

``The market reconsidered what the Fed really meant,'' said Michael Malpede, a senior currency analyst in Chicago at Man Global Research. ``The Fed didn't send any different signal. They still warned of the risk of inflation.''

...

Losses in the euro may be limited after European Central Bank President Jean-Claude Trichet yesterday said policy ``continues to be on the accommodative side,'' and inflation is ``subject to upside risks.'' ... ``They're likely to remain hawkish, suggesting at least one more rate hike,'' said Masashi Kurabe, a currency manager at Bank of Tokyo-Mitsubishi UFJ Ltd. in Tokyo. ``The euro is in an uptrend.'' The currency may advance to $1.3480, Kurabe said.

The yield premium investors get for holding benchmark U.S. two-year government bonds instead of similar-maturity German bunds is near the narrowest in 24 months. The 58-basis-point gap narrowed from 75 basis points at the start of the month. A basis point is 0.01 percentage point.

/...

http://yahoo.reuters.com/news/articlehybrid.aspx?storyID=urn:newsml:reuters.com:20070322:MTFH55803_2007-03-22_14-32-07_BLA248048&type=comktNews&rpc=44

TEHRAN, March 22 (Reuters) - Iran, embroiled in a nuclear row with Washington, is asking more clients to pay for oil in currencies other than the dollar and 60 percent or more of its crude income is in other units, an official said on Thursday.

Hojjatollah Ghanimifard, international affairs director of state-owned National Iranian Oil Company (NIOC), told Reuters almost all of Iran's European clients and some of its Asian customers had accepted making payments in non-dollar currencies.

He said Iran, which has pushed for payment in euros and other currencies since September when Washington slapped sanctions on a big Iranian bank, was concerned about the weak state of the greenback and not being prompted by politics.

"To the best of my knowledge, what we are doing at NIOC is purely something based on commercial reasons," he said. "Part (of this) has to do with the strength of the dollar."

Ghanimifard had said in December that about 57 percent of Iran's income from crude exports was in euros.

...

"We have asked our clients that whenever they are ready to exchange the dollar into any other currency, including the euro, we would be welcoming that. In Europe, almost -- I can say -- all have accepted, in Asian markets some," he said.

Asked how much of Iran's oil income was now being paid in currencies other than the dollar, he said: "It would be something close to 60 to 60 something percent."

But he said payments were still based on dollar pricing. "Pricing as you know is based on the quotations that we get from the international market and when the international market quotes anything for crude or for the products all of them are for the U.S. dollar," Ghanimifard said.

...

The central bank said the shift in payments had hastened the decline in the dollar portion of Iran's foreign reserves, which account for less than 30 percent.

Iran is expected to earn more than $50 billion from its energy exports in the Iranian year that ended on March 20.

/...

http://today.reuters.com/news/articleinvesting.aspx?type=hotStocksNews&storyID=2007-03-22T114336Z_01_L21450404_RTRUKOC_0_US-MARKETS-PRECIOUS.xml

LONDON (Reuters) - Gold rallied to a three-week high on Thursday on firmer oil prices and a weaker dollar, but pared gains as the U.S. currency subsequently steadied.

Other precious metals also gained, with silver rising to its highest level since March 2 and palladium matching its highest level in nearly three weeks.

Spot gold rose as high as $665.75 an ounce, its best since March 1, and was at $663.50/664.50 by 1106 GMT, higher than $660.90/661.90 late in New York on Wednesday.

"The market is just telling us how much gold is linked to the rest of the markets nowadays. It's not operating on its own," said Jeremy East, head of metals trading at Standard Chartered Bank.

He said the New York gold futures market was going through its rollover period as the front month comes up to expiry.

"It's interesting to see whether the funds - and there are still large long positions - are rolling those and it looks like they are. That is positive for the market."

/...

In my opinion, Sept. 11 and its Iraq aftermath is about manipulating oil prices through the roof which in turn manipulates interest rates and the markets. Two carrier groups are in the Persian Gulf for the purpose of closing the Straights of Hormuz. The bad guys want the investor behind them and the attack on Iran which will give them the hyper oil prices they want. Time is near because the weather is right, its fun to stop the heart around Easter time, and it is expensive cruising the Persian Gulf. Greenspan's mouth and loan mortgage defaults were timed news' plants to send the markets in a free fall. What will be the next financial bad news, derivatives ?, to send the markets down, get the investor mumbling, OK nuke Iran, clog the Straights with burning oil tankers?

going for them economically will do better....but most of the nation will be going through this. It is so sad. It is eating up the lower to mid middle classes.

14. Subprime problems haven't spilled over to bank safety: Cole
10:01 AM ET, Mar 22, 2007 - 12 minutes ago

15. No subprime spillover effects in regular mortgages: Cole
10:01 AM ET, Mar 22, 2007 - 12 minutes ago

16. More subprime borrowers may face challenges: Fed's Cole
10:01 AM ET, Mar 22, 2007 - 12 minutes ago

http://www.nytimes.com/2007/03/22/business/22fed.html?_r=2&adxnnl=1&oref=slogin&ref=business&adxnnlx=1174573387-+IYgAb5Dcgi6G95TNN7MFw

WASHINGTON, March 21 — The Federal Reserve, implicitly acknowledging hints of trouble in the economy, edged away Wednesday from previous signals that its next move on interest rates would be up.

To no one’s surprise, the central bank left the overnight Federal funds rate at 5.25 percent, a level unchanged since last June.

But for the first time since it stopped raising rates, the Fed omitted a signal of its bias toward raising rates rather than lowering them. Investors reacted with relief, only three weeks after global stock markets were embroiled in turmoil.

The Dow Jones industrial average jumped 159 points, or 1.3 percent, within minutes of the Fed announcement and stayed at the level, erasing nearly all of its losses for the year so far. Bond prices jumped and bond yields declined on hopes of lower interest rates.

But the reaction may have been overly exuberant. Even as the Fed hinted at a more open mind about future rate increases, it seemed bent on discouraging hopes of cheaper money anytime soon. Indeed, it injected a new note of urgency about rising prices, calling them the “predominant” concern and expressing worry that inflation might prove more intractable than policy makers thought.

more...

http://mwprices.ft.com/custom/ft2-com/html-ftalerts.asp?FTSite=FTCOM&q=&t=&s1=&s2=&extelID=&ticker=&company=NEW&ftep=&isin=&sedol=

FTSE Eurofirst 300 up 1.6% at 1,516.1 as bid speculation lifts banks and construction stocks 12:51 GMT
CAC 40 up 1.7% at 5,597.7 in mid-session Paris trade 13:41 CET
Xetra Dax 30 up 1.9% at 6,838.0 in mid-session Frankfurt trade 13:19 CET
FTSE 100, up 0.7% at 6,300.3, pares earlier gains in midday trade on fears of higher interest rates following strong UK retail sales data 12:01 GMT

http://yahoo.reuters.com/news/articlehybrid.aspx?type=comktNews&storyID=urn:newsml:reuters.com:20070322:MTFH62525_2007-03-22_18-22-01_L22326164&pageNumber=0&imageid=&cap=&sz=13&WTModLoc=HybArt-C1-ArticlePage2

LONDON, March 22 (Reuters) - European shares closed higher for a fourth day running on Thursday led by gains in financial stocks on talk of industry consolidation, while the possibility of the U.S. Federal Reserve cutting interest rates buoyed sentiment.

The FTSEurofirst 300 index of top European shares <.FTEU3> closed up 1.5 percent at 1,515.6 points, taking its gains in the past four days to 4 percent.

Banks and insurers were among the biggest gainers, with Dutch bank ING (ING.AS: Quote, Profile , Research) up 2.7 percent after it said it was looking at strategic options.

...

Across European exchanges, Germany's DAX <.GDAXI> closed 2.2 percent higher, France's CAC 40 <.FCHI> ended up 1.8 percent, but the UK's FTSE 100 index .FTSE rose nearly 1 percent.

"We were expecting a pullback, but we didn't expect it to be a 'blink and you'll miss it' correction", said Max King, investment strategist at Investec.

/...

http://www.bloomberg.com/apps/news?pid=20601039&refer=columnist_lynn&sid=aT1ExI7OWRTc

March 21 (Bloomberg) -- One by one, the big companies of the alternative investment industry are selling.

Blackstone Group LP, the leveraged buyout firm that has spent $160 billion taking companies private in the past two decades, has just announced its initial public offering. Fortress Investment Group LLC, which manages hedge and private- equity funds, listed its shares in February and the stock almost doubled on the first day it was traded.

In Europe, booming hedge funds are queuing up to go public. Polar Capital Holdings Plc did so last month, and Marshall Wace LLP raised 1.5 billion euros ($2 billion) through an IPO for one of its hedge funds late last year.

Yet if Blackstone, Fortress and other alternative- investment managers are selling their shares, should you be buying?

Probably not.

The managers of those firms are better at calling the top of the market than most of us. The rush of share sales suggests the boom in alternative investments may be ending.

more...

http://www.thestreet.com/_dm/funds/followmoney/10345737.html

When the subprime mortgage collapse gathered speed two weeks ago, Eric Sieracki at Countrywide Financial (CFC) sought to calm his investors' nerves.

"This is the pain phase of a healthy cycle," the CFO said at an investment conference in San Francisco. "We've been through these kinds of cycles before and we've seen another day. ... We're a top-conditioned athlete."

Doubtless that's why his fellow executives and directors are throwing stock overboard on a heroic scale.

Insiders at Countrywide, the nation's largest mortgage lender, have sold $314 million worth of shares in the company just since August. That's according to regulatory filings tracked by Interactive Data Corporation.

The sales include a staggering $94.5 million by chief executive Angelo Mozilo, and $17.5 million by mortgage division chief David Sambol.

Naturally insiders are perfectly entitled to sell shares, and in the case of Countrywide Financial, the stock price has, at least, held up -- sort of. It's only fallen a fifth from its peak to $35.22.

more...

http://www.bloomberg.com/apps/news?pid=20601082&sid=aWEkKs084ISM&refer=canada

March 22 (Bloomberg) -- Lingerie suddenly became very popular on the Toronto Stock Exchange in October.

Daily trading for La Senza Corp., Canada's biggest retailer of women's undergarments, more than doubled compared with its 12- month average, and the stock price arced toward a record high. On Nov. 15, Limited Brands Inc. announced it would buy Toronto-based La Senza and pay shareholders a 48 percent premium.

That unusual trading wasn't so unusual for the Canadian market. Aberrant trading patterns preceded 33 of the 52 Canadian mergers valued at more than C$200 million ($172.6 million) last year, says a study by Measuredmarkets Inc. for Bloomberg News. Those patterns could indicate insider trading.

``Insider trading goes on all the time,'' says Stephen Jarislowsky, 81, chief executive officer of Montreal-based Jarislowsky Fraser Ltd., which manages about C$63 billion. ``There's no real surveillance.''

The rate of unusual trading found in Canada -- 63 percent -- was higher than in the U.S., where a Measuredmarkets study last year flagged 41 percent of comparable mergers. The London- based Financial Services Authority said March 7 that insider trading may have preceded almost 25 percent of U.K. merger announcements in 2005.

more...

http://www.chicagotribune.com/business/chi-0703210609mar22,0,1634666.story?coll=chi-business-hed

Citadel Investment Group LLC, the hedge fund that bought bankrupt ResMae Mortgage Corp. two weeks ago, has taken a 4.5 percent stake in Accredited Home Lenders Holding Co., another subprime lender.

Chicago-based Citadel, which is run by Kenneth Griffin and oversees about $13.4 billion in assets, holds 1.13 million shares of San Diego-based Accredited, according to a regulatory filing Wednesday. The stake is worth about $13.5 million based on Accredited's closing price of $11.96 on the Nasdaq stock market.

Hedge funds are increasingly investing in assets of subprime lenders at depressed prices as investment banks demand more collateral to cover losses on mortgages that defaulted.

Tuesday, Farallon Capital Management LLC, a $26 billion fund specializing in real estate companies that face cash shortages, gave Accredited a $200 million loan to strengthen the company's hand as it negotiates for more financing or a sale.

"Many of the subprime lenders appear to be trading at a fraction of book value as investors are concerned about the underlying credit of their assets," said Steve Neimeth at AIG SunAmerica Asset Management in Jersey City. "It appears that hedge funds, based on their due diligence, believe that credit isn't as bad as the market is anticipating."

more...

Dow 12,417.24 30.28 (0.24%)
Nasdaq 2,443.73 12.19 (0.50%)
S&P 500 1,430.70 4.34 (0.30%)
10-yr Bond 4.5590% 0.0410
30-yr Bond 4.7550% 0.0590
NYSE Volume 1,042,691,000
Nasdaq Volume 601,124,000

11:00 am : Equities are still on the defensive as sellers remain in control of the action. One area catching a bid, though, is oil. However, the commodity's inflationary potential, especially after yesterday's policy statement noted there is still a risk that inflation will fail to moderate as expected, is acting as an offset to a 1.4% surge in the Energy sector.

Crude for May delivery is now up nearly 3% at $61.37/bbl as U.S. refiners are expected to increase operating rates to prepare for the crucial summer driving season. DJ30 -26.75 NASDAQ -12.22 SP500 -4.05 NASDAQ Dec/Adv/Vol 1558/1166/524 mln NYSE Dec/Adv/Vol 1610/1388/380 mln

10:30 am : Not much has changed as investors sift through some recent Fed commentary. Over the last 30 minutes, the Fed has affirmed that it is concerned about recent developments in mortgage markets and offered some reassurance saying it is not now seeing "spillover effects" from subprime market into general mortgage market.

The Fed has also said that housing credit deterioration is concentrated primarily in a relatively narrow subprime market, which represents fewer than one out of 10 outstanding mortgages. However, the Fed also said that some borrowers are clearly experiencing "significant financial and personal challenges" and that subprime sector consolidation "has likely not yet run its course."DJ30 -20.89 NASDAQ -9.04 SP500 -2.65 NASDAQ Dec/Adv/Vol 1342/1306/378 mln NYSE Dec/Adv/Vol 1395/1534/266 mln

10:00 am : The indices are extending their reach to the downside as seven out of 10 sectors are now trading lower. Technology pacing the way (-0.66%) and close to slipping back into negative territory for the year, due largely to Motorola's (MOT 17.84 -0.90) forecasted shortfall, remains the biggest obstacle for the bulls.

The absence of leadership in a Financials sector that has been a significant driver behind gains on all three major averages in five of the past six sessions is also acting as an early overhang. Industrials is another notable sector losing ground, as surging oil prices make transportation stocks less attractive. Analyst downgrades on Deere & Co (DE 113.66 -1.76) and Raytheon (RTN 53.11 -0.94) are also weighing on the sector. DJ30 -22.10 NASDAQ -9.02 SP500 -2.26 NASDAQ Dec/Adv/Vol 1130/1370/164 mln NYSE Dec/Adv/Vol 1007/1598/82 mln

09:40 am : Further analysis of a rally yesterday that we believe was overdone in response to an adjusted Fed policy statement that was modestly positive at best has stalled the momentum in a market that has been consistently overly confident about the possibility of a rate cut.

An earnings warning from Motorola (MOT 17.83 -0.91), coupled with crude oil prices surging 2.2% and flirting with $61/bbl, are also preventing the bulls from building on yesterday's sizable gains. DJ30 -6.68 NASDAQ -2.72 SP500 -0.19 NASDAQ Vol 86 mln NYSE Vol 42 mln

09:15 am : S&P futures vs fair value: +1.0. Nasdaq futures vs fair value: flat.

09:00 am : S&P futures vs fair value: +2.0. Nasdaq futures vs fair value: +0.5. Early sentiment continues to improve and, with both the S&P 500 and Nasdaq 100 futures inching above fair value within the last 15 minutes, it now looks as though stocks may open on a slightly upbeat note. However, the lack of specific news to account for the recent uptick also offers little conviction on the part of buyers, as the market is more likely to look at a round of Fed speak throughout the session to set a more definitive tone to trading.

08:32 am : S&P futures vs fair value: -1.2. Nasdaq futures vs fair value: -2.0. Even though future policy adjustments still depend on the evolution of the outlook for both inflation and economic growth, as implied by "incoming" data, today's initial claims report isn't affecting the Fed's recent shift in tone whatsoever. The Labor Dept. just reported that weekly jobless benefits fell just 4K to 316K (consensus 325K). The futures market has not budged and still languishes below fair value, suggesting stocks will take a breather following yesterday's huge run-up. Bonds have also held steady as the 10-year note is still down 4 ticks to yield 4.55%.

08:00 am : S&P futures vs fair value: -2.3. Nasdaq futures vs fair value: -2.0. Early indications are pointing to a slightly lower open for stocks as Wednesday's broad-based rally invites some early profit taking. After running up so much so fast yesterday, given a shift in the Fed's language from a tightening bias that still stopped well shy of suggesting a rate cut anytime soon, it's not surprising to the sustainability of such sizable gains come into question. Motorola (MOT) slashing its earnings outlook, a day after a blowout quarter from Oracle (ORCL) renewed confidence in the tech sector's growth prospects no less, is also contributing to the negative disposition.

06:17 am : S&P futures vs fair value: -3.0. Nasdaq futures vs fair value: -4.3.

http://yahoo.reuters.com/news/articlehybrid.aspx?type=comktNews&storyID=2007-03-22T151835Z_01_N22359488_RTRIDST_0_MARKETS-CANADA-STOCKS-UPDATE-1.XML

TORONTO, March 22 (Reuters) - Toronto stocks rose to a three-week high on Thursday as rallying commodity prices boosted shares of energy and mining companies, which make up nearly half of Canada's main bourse.

By late morning, the S&P/TSX composite index <.GSPTSE> was up 46.76 points, or 0.4 percent, at 13,202.31. Six of the TSX index's 10 main groups were higher, led by the energy group, which was up 1.4 percent.

Crude oil futures surged nearly 3 percent, or $1.71 a barrel, to $61.32 on Thursday on worries over tight gasoline supplies in the United States that signaled strong demand ahead of the summer driving season.

"The oil companies have been such dogs, everyone had them underweighted on their portfolios for the last little while, so they are playing catch-up now," said Robert Lauzon, executive director, head of trading at Middlefield Capital Corp. "We're going into the spring shoulder season, where we're not going to have heating or cooling, which is a bad time for oils, but it might actually be the best time to invest in the sector this year."

...

Shares of mining companies, part of the materials subindex, gained 0.9 percent. Inmet Mining (IMN.TO: Quote, Profile , Research) jumped C$2.15, or 3.6 percent, to C$62.14.

/...

http://yahoo.reuters.com/news/articlehybrid.aspx?type=comktNews&storyID=2007-03-22T200957Z_01_N22386181_RTRIDST_0_MARKETS-CANADA-STOCKS-URGENT.XML

TORONTO, March 22 (Reuters) - The Toronto Stock Exchange's main index reversed course and ended down on Thursday despite strength in energy and mining shares, retreating from a big rise on Wednesday.

The S&P/TSX composite index <.GSPTSE> unofficially closed down 13.96 points, or 0.1 percent, at 13,141.59.

Those red numbers don't look too good for those of us heavily invested in mutual fund retirement accounts!

Thanks, Marketeers, for all you do!!

:kick::kick::kick:

http://www.bloomberg.com/apps/news?pid=20601103&sid=a8ilcv.eOxMc&refer=us

March 22 (Bloomberg) -- The subprime credit crunch is beginning to ensnare even borrowers with better credit.

Lenders are increasingly refusing to lend to homebuyers who can't make a down payment of more than 5 percent, especially if they won't document their income. Until recently such borrowers qualified for so-called Alt A mortgages, which rank between prime and subprime in terms of risk. Last year the category accounted for about 20 percent of the $3 trillion of U.S. mortgages, about the same as subprime loans, according to Credit Suisse Group.

``It's going to be very difficult, if not impossible, to do a no-money-down loan at any credit score,'' said Alex Gemici, president of Parsippany, New Jersey-based mortgage bank Montgomery Mortgage Capital Corp. Companies that buy the loans ``are all saying if they haven't eliminated them yet, they'll eliminate them shortly.''

Tighter lending standards may slash subprime mortgage sales in half this year and Alt A mortgages by a quarter, according to Ivy Zelman, a Credit Suisse analyst in New York who covers homebuilders. The new requirements will force some prospective homebuyers to save more money for a down payment or risk being denied credit.

snip>

Limits Welcomed

Some lenders say it's high time that buyers are discouraged from buying real estate with no money down. :eyes:

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markets like California, with good credit but not making enough to save enough for a down payment. Folks like policemen, nurses, and teachers won't be able to afford the American Dream. Want to politically destabilize a country in a hurry-do away with the middle class.
I don't know if some of you are old enough to remember when the interest rates were 18%, but you had to save a down AND pay that rediculous rate. Folks refinanced like crazy when the rates went down. People walked away from their high mortages too, esp when jobs dried up.
The first ripple is the subprime folks, second are the builders, 3rd ripple is the sub or Alt A's, and so forth.
This is starting to look grim.

http://www.thetimeandmoneygroup.com/blog/2007/03/20/we-are-not-a-subprime-lender/

On March 15, IndyMac released a rather lengthy press release claiming that it had been inappropriately categorized by many media sources as a subprime lender. IndyMac stated that it is primarily a prime/Alt-A mortgage lender with minimal exposure to subprime. With the subprime lenders in melt-down mode, it is quite understandable why IndyMac would want to differentiate itself. However, in doing so it brought more attention to itself and was featured in an article by CNN Money called “Liar loans: Mortgage Woes Beyond Subprime.” Sometimes it pays just to be quiet.

What is Alt-A?

Lenders use the term Alt-A (Alternative-documentation) to categorize or differentiate between borrowers. Applicants for this type of loan often lack proof of income from traditional employment. Investors and self-employed borrowers are good candidates. Commissioned employees with inconsistent income also fall into this group. IndyMac is the king-pin of Alt-A loans. Trade publication Inside Mortgage Finance estimates it did $70.2 billion Alt-A loans in 2006, up 48 percent from a year earlier. This was nearly 80% of the company’s mortgage originations last year.

Alt-A loans are also known as “Stated Income” or “Liar Loans” since income is taken as fact. No further documentation is required. As long the automated property appraisal software is functioning, approval is only a few keystrokes away. These loans are tremendously profitable, since the underwriting costs are much lower and the rates are higher than a standard 30 year fixed mortgage.

IndyMac pointed-out in its press release that subprime mortgages generally include loans where the borrower’s FICO score is 620 or below and that their customer’s average score was 701 in 2006. This is an interesting data point, but a person’s FICO score is hardly the root cause of the escalating subprime defaults. The problem lies in the type of loans that have been originated.

snip>

Trader’s Paradise

Traders have had a field day literally shorting the subprime lenders into the ground. New Century, the second largest subprime lender in the U.S., was delisted from the NYSE and is down -93% year to date as of March 16. Others such as Accredited Home Lenders (LEND), Novastar Financials (NFI) and Freemont General (FMT) have been thoroughly beaten to the tune of -60%, -78%, and -45% respectively. Some traders will short these to oblivion, but the smarter ones are looking for their next prey with more downside. Hmm, I wonder which company fits that description?

The best time to short a wounded duck is after a bogus announcement is conjured up to pump up its stock price. New Century is a perfect example. On March 1, Bear Sterns upgraded New Century to a buy. Apparently the analyst was asleep at the switch when three weeks prior, New Century announced that it was restating their earnings for the first three quarters in 2006 and postponing to an undetermined future date their Q4 and full year earnings. The infamous upgrade provided a nice 3% bounce. The following day’s downside reversal completed the short set-up and the rest is history. Read more about this trade in my earlier article.

more...

if I decided to be an owner/builder.

NEW YORK (AP) -- An index meant to foreshadow the direction of the economy said Thursday that growth will advance modestly this year, but will be hobbled by sluggish manufacturing and weakness throughout the housing industry.

Industry research group The Conference Board said Thursday that its composite index of leading indicators, which is meant to project changes in the economy six to nine months in advance, slipped 0.5 percent to 137.3 in February after a revised 0.3 percent decline to 138 in January.

The drop in February, while expected, was the steepest since February 2006.

Meanwhile, the Labor Department said on Thursday that jobless claims dropped last week for the third consecutive time, signaling that the labor market is not seriously weakening although the overall economy is slowing.

more...
http://biz.yahoo.com/ap/070322/economy.html?.v=7

LOS ANGELES (AP) -- KB Home, one of the nation's largest homebuilders, said Thursday that first-quarter profit plunged as the company felt pressure from a slowing housing market and rising defaults of subprime mortgages.

KB warned it expects the sector's problems, most notably a glut of homes on the market and intense price competition, to continue at least through 2007, resulting in lower sales and profits for the year.

Still, management sounded upbeat, saying steps it has taken to reduce inventory and exposure to subprime loans will help it weather the housing downturn.

For the quarter ended Feb. 28, the company reported net income of $27.5 million, or 34 cents a share, down from $173.3 million, or $2.01 a share, a year ago.

more...
http://biz.yahoo.com/ap/070322/earns_kb_home.html?.v=8

DETROIT (AP) -- Book retailer Borders Group Inc. announced a fourth-quarter loss on Thursday as it disclosed plans to close nearly half of its Waldenbooks stores and the possible sale of most of its international businesses as part of a restructuring plan.

The Ann Arbor-based company said it plans to focus more of its efforts on its domestic Borders superstore business and better tailor those stores to local markets. It plans to develop a consolidated Borders.com e-commerce Web site and publish exclusive books by celebrities, first-time authors and others under the Borders name.

"We need to reinvent our business to exploit the rapid changes taking place in how consumers access information and entertainment," Borders Group Chief Executive George Jones said in a statement. "Our ultimate goal is to make Borders a vital community gathering place where people come together to see, touch, interact and learn -- online and in-store."

Borders.com currently takes shoppers to a site partnered with online bookseller Amazon.com, while a Web site for its stores allows shoppers to check inventories and reserve items. The company expects the new Borders.com, which has been under development since the fall, to launch early next year and be independently profitable in 2009.

more...
http://biz.yahoo.com/ap/070322/earns_borders.html?.v=8

NEW YORK (AP) -- Shares of railroad operators were mixed in Thursday's session after industry executives confirmed expectations for a soft first quarter and said again that freight demand should pick up in the second half of the year.

Shares of Union Pacific Corp., the nation's largest railroad, fell 68 cents to $100.62 in afternoon trading. Shares of western rival Burlington Northern Santa Fe Corp. gained 21 cents to $80.72. CSX Corp. gave up 14 cents to $39.92, while Norfolk Southern Corp. advanced 22 cents to $49.62. All trade on the New York Stock Exchange.

Union Pacific Chairman Jim Young told analysts at the JPMorgan Aviation & Transportation Conference in New York that his company expected a weak first quarter, but was surprised at the level of weakness in some pockets. For instance, Young said automotive volumes started the year down 15 percent before recovering to flat more recently.

Union Pacific controls 80 percent of the finished vehicle market in the West.

more...
http://biz.yahoo.com/ap/070322/railroads_sector_snap.html?.v=1

NEW YORK (AP) -- Shares of mining equipment maker Joy Global Inc. jumped Thursday after New York-based investment firm Atlantic Investment Management Inc. said it has purchased 5.7 million shares of the company's stock for $97.1 million.

In a filing with the Securities and Exchange Commission, the company said Atlantic Investment has accumulated the 5.2 percent stake in series of open market transactions this year.

Joy Global had 109.4 million shares outstanding as of Feb. 21, according to the filing.

Atlantic Investment said it acquired the stake for investment purposes, but will continue its "active discussions" with Joy Global management about ways in which the company can maximize shareholder value. The investment firm also said it may hold talks with other parties on the same issue.

more...
http://biz.yahoo.com/ap/070322/joy_global_filing.html?.v=1

NEW YORK (AP) -- Biotechnology shares on the Nasdaq Stock Market were mixed in afternoon trading Thursday, while the overall sector showed little change.

The Nasdaq's Biotechnology Index, which covers a wide range of small-to-large cap companies, rose 1.25 points to 776.75 in afternoon trading, while the American Stock Exchange Biotechnology Index, which covers the largest companies in the sector, gained 2.1 points to 752.73.

Shares of Imclone Systems Inc. jumped 96 cents, or 2.9 percent, to $33.59. The boost came after Friedman, Billings, Ramsey analyst Jim Reddoch upgraded the stock and boosted his price target by $15, citing anticipated positive data from a study on cancer drug Erbitux.

Reddoch said the drug, which is being compared with Roche Holding AG's Tarceva for pancreatic cancer, could become the standard of care.

more...
http://biz.yahoo.com/ap/070322/biotechnology_sector_snap.html?.v=1

NEW YORK (AP) -- Stocks that were moving substantially or trading heavily Wednesday on the New York Stock Exchange and Nasdaq Stock Market:

NYSE

Motorola Inc., down $1.24 at $17.50

The cell phone maker said it would post a loss for the first quarter and that it would make management changes.

Alcatel-Lucent, down 44 cents at $11.55

A European analyst downgraded the telecommunications equipment company due to near-term risks and falling revenue.

Barnes & Noble Inc., down $1.03 at $37.97

The nation's largest bookseller reported a slight rise in its fiscal fourth-quarter profit that missed analysts' expectations, and forecast a loss for the first quarter.

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http://biz.yahoo.com/ap/070322/wall_street_stocks.html?.v=2

NEW YORK (AP) -- A CIBC World Markets analyst initiated coverage on the shares of three companies that promote diet and exercise, saying all three are attractive stocks with long-term potential for growth.

Analyst Vivian Ma gave Weight Watchers International Inc. a "Sector Perform" rating with a price target of $47.32.

"We see Weight Watchers as a long-term player in an industry rife with fads," Ma said in a note to investors.

Ma said she sees opportunities in the next two to three years for a recovery in Weight Watchers meeting attendance rates and growth in online programs and licensing revenues, despite increasing competition.

more...
http://biz.yahoo.com/ap/070322/diet_stocks_sector_snap.html?.v=1

NEW YORK (AP) -- Airline stocks slipped Thursday, weighed by crude oil prices spiking by nearly $2 per barrel.

The European Union also approved an aviation deal that opens up restricted trans-Atlantic routes to new rivals in a so-called "open skies" pact. The deal would allow more carriers to fly from London's Heathrow, a coveted destination that attracts many corporate travelers.

The Amex Airline Index dropped 2.2 percent, with all 11 components declining.

the price of a barrel of oil jumped $1.73 to $61.34 on the New York Mercantile Exchange, jet fuel being one of the industry's biggest costs.

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http://biz.yahoo.com/ap/070322/airlines_sector_snap.html?.v=1

NEW YORK (AP) -- Investors shrugged of news Thursday that Google Inc.'s popular video sharing site YouTube may face competition, and sent shares of the online search leader up on a mixed day for Internet stocks.

NBC Universal and News Corp. on Thursday joined forces with Yahoo Inc., Time Warner Inc.'s AOL, Microsoft Corp.'s MSN and others to distribute video content, in an attempt to compete with YouTube and fight what they call unauthorized use of their programming.

YouTube and Google are facing a $1 billion lawsuit from Viacom, the parent of MTV and Comedy Central, which says the site is encouraging copyright infringement. YouTube says it is protected by law as long as it takes down any copyright-protected material upon request.

Google's shares gained $3.66 to $460.21 in afternoon trading on the Nasdaq Stock Market.

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http://biz.yahoo.com/ap/070322/internet_sector_snap.html?.v=1

http://yahoo.reuters.com/news/articlehybrid.aspx?storyID=urn:newsml:reuters.com:20070322:MTFH64224_2007-03-22_19-30-33_WEN5697&type=comktNews&rpc=44

NEW YORK, March 22 (Reuters) - News Corp. (NWSa.N: Quote, Profile , Research) said on Thursday it was in discussions with other media, advertisers and Internet companies about joining its online video venture with NBC.

Talks about the new venture have also been held with Google Inc. (GOOG.O: Quote, Profile , Research), whose YouTube is now a hugely popular online video site, NBC and News Corp executives said on a call to discuss their Internet partnership.

Peter Chernin, News Corp's President, said he expects the unnamed site to be "the biggest video destination" on the Internet.

He also said News Corp and NBC were in talks with other media companies about supplying content to the online video site. Discussions were also taking place with additional advertisers and Internet companies, which could distribute the video.

Already, Yahoo Inc. (YHOO.O: Quote, Profile , Research), Microsoft Corp. (MSFT.O: Quote, Profile , Research), Time Warner Inc.'s (TWX.N: Quote, Profile , Research) AOL and News Corp.'s MySpace have signed on as distributors. Current advertisers include Cadbury Schweppes Plc (CBRY.L: Quote, Profile , Research), Cisco Systems Inc. (CSCO.O: Quote, Profile , Research) and General Motors (GM.N: Quote, Profile , Research).

NEW YORK (AP) -- Rising oil prices on Thursday prompted a rally among the industry's major producers and refiners.

Shares of Exxon Mobil Corp., the world's largest publicly traded oil company, rose $1.32 to $74.55 in afternoon trading on the New York Stock Exchange.

The stock prices of its next-biggest U.S.-based rivals, Chevron Corp. and ConocoPhillips, respectively, also climbed. Chevron shares gained $1.57, or 2.2 percent, to $72.91 on the NYSE, where ConocoPhillips added $1.77, or 2.6 percent, to $68.94.

A barrel of oil gained $1.65 to $61.26 on the New York Mercantile Exchange, after earlier rising as high as $61.53. The jump came as traders weighed a government report showing increased refinery usage in the prior week -- a signal that refiners' demand for crude is on the rise.

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http://biz.yahoo.com/ap/070322/oil_sector_snap.html?.v=1

NEW YORK (AP) -- Shares of Scholastic Corp. tumbled Thursday as the publisher of the "Harry Potter" series and educational texts posted weaker-than-expected third-quarter results and cut its full-year earnings outlook.

The company, which in December predicted a fiscal 2007 profit between $1.55 and $1.85 per share, said it now anticipates profit between $1.40 and $1.60 per share because of an increase in bad debt expense and higher recorded promotion costs. The average Wall Street estimate is $1.74 per share, according to Thomson Financial.

Scholastic maintained its previous sales forecast for revenue of $2.1 billion to $2.2 billion.

During the company's third quarter, which ended Feb. 28, Scholastic narrowed its loss to $7.7 million, or 18 cents per share, from a loss of $15.5 million, or 37 cents per share, in the previous year. However, the results missed expectations, as analysts polled by Thomson Financial were looking for a loss of 8 cents per share.

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http://biz.yahoo.com/ap/070322/scholastic_mover.html?.v=1

March 22 (Bloomberg) -- Oracle Corp., the world's third- largest software company, sued competitor SAP AG claiming SAP illegally hacked into Oracle's Web sites and stole data to offer ``cut-rate'' support services for its products.

The complaint by Redwood City, California-based Oracle, filed today in U.S. District Court in San Francisco, accuses SAP of fraud and unfair competition, alleging the company stole thousands of Oracle's copyrighted software programs.

``This case is about corporate theft on a grand scale,'' Oracle said in the complaint, which is posted on its Web site. ``Oracle brings this lawsuit after discovering that SAP is engaged in systematic, illegal access to -- and taking from -- Oracle's computerized customer support systems.''

The Oracle lawsuit said SAP employees used login identities of multiple customers and phony users to ``gain access to Oracle's systems under false pretexts.''

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http://www.bloomberg.com/apps/news?pid=20601087&sid=aKFitYaFX3uc&refer=home

March 22 (Bloomberg) -- U.S. Treasuries fell, with yields on 30-year bonds touching the highest level in almost a month, on speculation the Federal Reserve may cut interest rates while inflation is a risk.

The central bank yesterday unexpectedly softened a reference to the need for higher borrowing costs. Traders added to wagers inflation may accelerate and erode the value of longer-term debt.

``Selling pressure on the long end is pressuring all maturities,'' said Brian Varga, co-head of Treasury trading in Calabasas, California, at Countrywide Securities Corp., one of the 21 primary government securities dealers that trade with the Fed. ``The Fed is rolling the dice that diminishing growth rates will naturally pull inflation into the target zone.''

The yield on the 30-year bond, the longest debt and most sensitive to inflation expectations, rose 6 basis points, or 0.06 percentage point, to 4.78 percent at 2:54 p.m. in New York, according to bond broker Cantor Fitzgerald LP. The price of the 4 3/4 percent security maturing in February 2037 declined 31/32, or $9.69 per $1,000 face amount, to 99 17/32. Bond yields move inversely to prices.

more...
http://www.bloomberg.com/apps/news?pid=20601009&sid=a_aJf1hi8.X8&refer=bond

Dow 12,461.14 Up 13.62 (0.11%)
Nasdaq 2,451.74 Down 4.18 (0.17%)
S&P 500 1,434.54 Down 0.50 (0.03%)
10-Yr Bond 4.589% Up 0.071
NYSE Volume 3,071,629,000
Nasdaq Volume 1,886,818,000

4:20 pm : The market took a breather Thursday as investors, looking a bit fatigued, lacked the data needed to support the best three-day percentage gain on the S&P 500 since April 2003. It also wasn't surprising to see the Nasdaq, fresh off its largest percentage gain (+2.0%) since last October, as becoming ripe for a pullback. The Dow finished to the upside, but its 0.22% gain was nothing to write home about and still left it shy of turning positive for the year.

Before the bulls could even find room to rationalize a rally fueled by a revised Fed policy statement that didn't indicate any imminent rate cut a day earlier, they were greeted with some negative news in a Tech sector whose earnings potential is already under the microscope. Last night, Motorola (MOT 17.52 -1.22) warned of a loss for this quarter and forecasted the company's first sales decline in four years. That news trumped a blowout quarter from Oracle (ORCL 18.51 +0.34) two days ago and questioned the sustainability of Technology's recent recovery.

The absence of leadership in a Financials sector that has been a significant driver behind gains on all three major averages in five of the prior six sessions acted as an even larger overhang on the market. Thrifts & Mortgage (-1.3%), already one of this year's biggest disappointments (-7.0%) amid overblown concerns about subprime mortgage woes spilling over into the broader economy, was the sector's weakest link today. As if a Fed official saying that some borrowers are clearly experiencing "significant financial and personal challenges" wasn't enough Countrywide Financial (CFC 36.36 -0.59) followed by saying its foreclosures on 2006 subprime mortgages may top 2000's 9.9%, becoming the worst year yet.

Also stalling follow-through momentum were soaring oil prices. Crude for May delivery surged 3.5% to $61.69/bbl, its biggest one-day gain in six weeks, amid growing concerns that gasoline supplies remain inadequate to meet upcoming summer driving demand. Fortunately for the bulls, the Energy sector tacking a 1.8% advance onto yesterday's strong 1.7% gain helped to offset some of the commodity's inflationary potential. Exxon Mobil (XOM 74.34 +1.11), the most heavily weighted constituent on the S&P 500, climbed 1.5% in response to oil's advance.

Fellow Dow component Procter & Gamble (PG 63.85 +0.89), the blue-chip index's second best performer, gained 1.4% after being upgraded at Bear Stearns on valuation. It's gain helped the Consumer Staples garner added attention from risk averse investors for its defensive characteristics. BTK +0.37% DJ30 +13.62 DJTA -0.04% DJUA +0.11% DOT -0.16% NASDAQ -4.18 NQ100 -0.37% R2K +0.03% SOX -1.26% SP400 +0.23% SP500 -0.50 XOI +1.59% NASDAQ Dec/Adv/Vol 1449/1578/1.89 bln NYSE Dec/Adv/Vol 1633/1619/1.50 bln

3:30 pm : Over just the first three days this week, the Dow, S&P 500 and Nasdaq were up a staggering 2.8%, 3.5% and 3.5%, respectively. However, since such outsized gains typically invite some profit-taking activity, it now looks like the major averages are at risk of having their recent streak snapped.

While yesterday's sentiment was unmistakably bullish and there was no sense fighting the tape, we still don't believe an adjusted Fed policy statement that was modestly positive news at best, since it doesn't indicate any imminent rate cut, should have been seen as a catalyst for a huge rally any more than the "Shanghai Surprise" was for a bear market. Therefore, we believe it is just as important not to get carried away by the upward move this week as the downward move three weeks ago. DJ30 -8.97 NASDAQ -7.07 SP500 -2.18 NASDAQ Dec/Adv/Vol 1541/1451/1.55 bln NYSE Dec/Adv/Vol 1645/1582/1.24 bln

3:00 pm : More of the same for stocks as split sector leadership continues to dictate today's uneventful trading session. The Energy sector (+2.2%), along with Telecom (+1.0%), continue to be the only sources of support for the market.

However, their combined weightings on the S&P 500 of 13.3% are no where near enough to offset consolidation throughout the Financials and Technology sectors, which account for more than the 37% of the influence on the broader market. DJ30 +15.26 NASDAQ -3.66 SP500 +0.73 NASDAQ Dec/Adv/Vol 1446/1531/1.42 bln NYSE Dec/Adv/Vol 1555/1665/1.13 bln

2:30 pm : Stocks continue to show signs of fatigue as both buyers and sellers stick to the sidelines. As reflected in the A/D line, it's almost not possible for advancers and decliners to mirror each other so evenly on both the NYSE and the Nasdaq.

The same can be said for the ratio of up to down volume, which paints a similarly neutral picture as stocks trade sideways after posting gains in five of the past six sessions.DJ30 +10.46 NASDAQ -4.30 SP500 +0.35 NASDAQ Dec/Adv/Vol 1485/1481/1.30 bln NYSE Dec/Adv/Vol 1590/1599/1.03 bln

2:00 pm : Not much has changed within the last hour, or all day for that matter, as the indices remain mired in relatively narrow trading ranges. The lack of follow-through momentum in the S&P 500's two most influential sectors -- Financials (-0.63%) and Technology (-0.67%), which also happen to be today's biggest disappointments, continue to weigh on market sentiment.

The fact that Energy is turning in the best performance (+1.9%), at the expense of oil's biggest one day advance this month (+2.7%) no less, further underscores the uphill battle the bulls have been trying to climb all day. DJ30 +3.72 NASDAQ -6.17 SP500 -0.68 NASDAQ Dec/Adv/Vol 1531/1418/1.22 bln NYSE Dec/Adv/Vol 1748/1445/960 mln

http://yahoo.reuters.com/news/articlehybrid.aspx?storyID=urn:newsml:reuters.com:20070322:MTFH62931_2007-03-22_18-38-33_N22376264&type=comktNews&rpc=44

NEW YORK, March 22 (Reuters) - A profit warning from Motorola Inc. (MOT.N: Quote, Profile , Research) knocked U.S. tech stocks lower on Thursday, stalling a global equities rally sparked by the Federal Reserve's signal that it was less inclined to raise interest rates.

Bonds also retreated from the previous session's gains as investors questioned how quickly the Fed's softening tone on inflation would result in rate cuts. A repositioning by bond investors was also under way as longer-dated issues fell the most on the view that rising chances of a reduction in interest rates would favor shorter-dated debt.

...

"I think the market overreacted to the FOMC yesterday. That's the main reason we're having a modest pullback," said Al Goldman, chief market strategist at A.G. Edwards in St. Louis, Missouri. "The Fed statement was modestly less hawkish than it was previously, but the market responded as if the Fed was going to imminently lower interest rates."

Meanwhile, the dollar rebounded on the perception that investors would become hungrier for risk. A drop in the yen was seen as evidence of rekindling interest in carry trades funded by borrowing money in the Japanese currency and buying better-yielding assets elsewhere.

For U.S. stocks, the session was dominated by renewed concern over the outlook for corporate profits on the heels of Motorala's profit warning, which drove its stock down more than 6 percent and weighed particularly on the technology sector.

...

The benchmark 10-year U.S. Treasury note <US10YT=RR> was down 14/32, with the yield at 4.595 percent. Two-year notes <US2YT=RR> slipped 3/32 with the yield at 4.596 percent.

Energy stocks were a bright spot in the market, with major producers like Exxon Mobil Corp. (XOM.N: Quote, Profile , Research) and Chevron Corp. (CVX.N: Quote, Profile , Research) each gaining about 2 percent, thanks to a 3 percent jump in U.S. crude oil prices. Oil rose above $61 a barrel on concern about tightening gasoline supplies.

U.S. light sweet crude <CLc1> for May delivery was up $2.09 at $61.70 a barrel in New York trading.

Gold <GCJ7> for April delivery rose $4.20 to settle at $664.20 an ounce in New York.

Before U.S. stocks paused, European and Asia equity markets had notched their own legs of the post-Fed rally, with most regional benchmark indexes rising between 1 percent and 2 percent.

/...

:applause: I needed to see those! :yourock:


:kick::kick::kick:

(I thought, I'd better post the US finals from here in Europe/Africa, in case nobody else over there does, or else loudsue will begin to complain loudly :evilgrin: ).

Stay tuned for Tokyo opening :smoke: .

:rofl: I really AM a pain in the ass!

:kick:

CHICAGO (AP) -- Motorola shares sank to a two-year low Thursday as analysts said there was no immediate end in sight for the cell phone maker's financial problems. Analysts rushed to downgrade the company's stock one day after Motorola Inc. shuffled its top management and announced its first-quarter sales would fall more than $1 billion short of earlier projections.

"We believe it will take Motorola more than one year to turn around its handset business," Davenport & Co. analyst F. Drake Johnstone wrote in a research note.

The world's No. 2 cell phone maker said slumping sales in its cell-phone unit, which accounts for more than two-thirds of its sales, are largely to blame for is shortfall.

Earlier this year, Chief Executive Ed Zander pledged the cell-phone unit would return to double-digit operating profitability in the second half of 2007.

more...
http://biz.yahoo.com/ap/070322/motorola_outlook.html?.v=12

NEW YORK (AP) -- A disappointing sales update from Intuit Inc. and a warning from Motorola Inc. pulled down the Standard & Poor's 500 Thursday.

The widely watched S&P 500 shed 0.5 points to close at 1,434.54.

Intuit declined $2.46, or 8.2 percent, to finish at $27.54 on the Nasdaq Stock Marker after the maker of TurboTax software reported disappointing sales of its lead product in an update.

Motorola gave up $1.24, or 6.6 percent, to $17.50 on the New York Stock Exchange after the cell phone maker said it expects first-quarter sales to miss previous projections by about $1 billion. Shares hit a 52-week low of $17.45 during the session.

more...
http://biz.yahoo.com/ap/070322/s_p_500_leaders_laggards.html?.v=1

NEW YORK (AP) -- A disappointing sales update from Intuit Inc. made the stock the biggest drag on the technology-heavy Nasdaq 100 Thursday.

The Nasdaq 100, which includes 100 of the largest nonfinancial securities traded on the Nasdaq Stock Market, gave up 6.6 points to end at 1,799.75. The Nasdaq composite lost 4.18 points to finish at 2,451.74.

Intuit Inc. declined $2.46, or 8.2 percent, to finish at $27.54 after the maker of TurboTax software reported disappointing sales of its lead product in an update.

Communications chipmaker Broadcom Corp. lost $1.29, or 3.9 percent, to $32.11, hurt by fallout from Motorola Inc.'s expectation of a more than $1 billion first-quarter sales shortfall.

more...
http://biz.yahoo.com/ap/070322/nasdaq_100_leaders_laggards.html?.v=1

NEW YORK (AP) -- Exxon Mobil Corp. helped boost the Dow Jones Industrial Average Thursday, after oil prices surged more than $2 a barrel.

The world's largest oil producer closed up $1.13 to $74.36 on the New York Stock Exchange.

The Dow advanced 13.62 points to finish at 12,461.14.

Consumer products maker Procter & Gamble Co. advanced 89 cents to close at $63.85 on the NYSE. A Bear Stearns analyst upgraded the stock to "Outperform" from "Peer Perform," predicting the share price will rise almost 13 percent in the next year.

more...
http://biz.yahoo.com/ap/070322/djia_leaders_laggards.html?.v=1

http://yahoo.reuters.com/news/articlehybrid.aspx?storyID=urn:newsml:reuters.com:20070323:MTFH69982_2007-03-23_00-06-41_T114981&type=comktNews&rpc=44

TOKYO, March 23 (Reuters) - The Nikkei share average rose 0.58 percent on Friday as investors picked up shares in exporters such as Kyocera Corp. (6971.T: Quote, NEWS , Research) encouraged by a softer yen.

The Nikkei <.N225> was up 100.31 points at 17,519.51 as of 0001 GMT. The broad TOPIX index <.TOPX> gained 0.59 percent to 1,742.06.

http://yahoo.reuters.com/news/articlehybrid.aspx?storyID=urn:newsml:reuters.com:20070322:MTFH69696_2007-03-22_23-49-12_T159089&type=comktNews&rpc=44

TOKYO, March 23 (Reuters) - Orders for Japanese stocks placed through 13 foreign securities houses before the start of trade on Friday showed an intention to sell a net 800,000 shares, market sources said.

There were sell orders for 34.5 million shares and buy orders for 33.7 million, the sources said.

http://yahoo.reuters.com/news/articlehybrid.aspx?storyID=urn:newsml:reuters.com:20070322:MTFH69823_2007-03-22_23-58-32_TKU002765&type=comktNews&rpc=44

TOKYO, March 23 (Reuters) - Finance Minister Koji Omi said on Friday that recent rises in Japan's land prices reflect a strengthening of the economic recovery.

"But it's not at the stage of a return to the bubble. It's in the process of normalisation," Omi told a news conference.

Japanese land prices rose for the first time in 16 years in 2006, a government survey showed on Thursday, offering further evidence that the nation is emerging from deflation with support from a steady economic recovery.

Asked about the Bank of Japan's policies, Omi said, "We want the BOJ to support a smooth economic recovery through monetary policy with stable prices."

But he said specific interest rate levels should be set by the BOJ.

March 23 (Bloomberg) -- Japanese stocks gained, paced by commodity-related shares such as Mitsubishi Corp. and Sumitomo Metal Mining Co. after prices of crude oil and metals climbed.

``Trading companies, miners and oil-related shares may lead today's gain after crude prices jumped above $61,'' said Soichiro Monji, who helps oversee about $47 billion at Daiwa SB Investments Ltd. in Tokyo.

Toyota Motor Corp. and Sony Corp. advanced after the yen dropped below 118 yen to the dollar in New York.

The Nikkei 225 Stock Average advanced 98.92, or 0.6 percent, to 17,518.12 as of 9:30 a.m. in Tokyo. The broader Topix index rose 12.34, or 0.7 percent, to 1744.14.

more...
http://www.bloomberg.com/apps/news?pid=20601087&sid=a1jGy_B0Sgr8&refer=home

http://home.kyodo.co.jp/modules/fstStory/index.php?storyid=305096

A criticality accident is likely to have happened at the No. 3 reactor of Tokyo Electric Power Co.'s Fukushima No. 1 nuclear plant nearly 30 years ago when five reactor control rods came off the reactor, an internal probe by the company and the reactor's manufacturer, Toshiba Corp., showed Thursday.

The self-sustaining nuclear chain reaction that apparently took place during a regular checkup may have lasted as long as seven and a half hours, but it posed no hazard to the reactor's surrounding environment, according to the investigation.

The accident in 1978 came to light after a handwritten memo describing the level of neutrons at the reactor's core was found at a Toshiba factory during the recently launched internal probe.

''If you think about it with an engineer's common sense, it could not have been anything other than criticality,'' said Akio Komori, a Tokyo Electric official in charge of nuclear power operation and control, at a news conference.

The Nuclear and Industrial Safety Agency, an arm of the Economy, Trade and Industry Ministry, said if it was indeed a criticality accident, the utility firm probably failed to report to the director general of the then Science and Technology Agency as required.

...

None of the cases was reported to the government, according to the nation's largest electric power firm.

On Tuesday, Tokyo Electric said two control rods had come off at its Fukushima No. 2 nuclear plant's No. 3 reactor in June 1993 and at the Kashiwazaki-Kariwa plant's No. 1 reactor in Niigata Prefecture in April 2000 during suspensions for regular checkups. Neither incident resulted in a self-sustaining nuclear chain reaction, known as criticality, according to the Tokyo-based utility.

The 1978 case in Fukushima came to light during the internal investigation after a memo describing the amounts of neutrons at the reactor's core was found at Toshiba, according to Tokyo Electric officials.

The memo said neutrons at the reactor core began increasing at around 3 a.m. on Nov. 2, 1978, and an excess level of neutrons continued to be registered until around 10:30 a.m. Workers were preparing to inspect the reactor's pressure enclosure at the time and were operating a valve in a system that controls water pressure to move reactor control rods.

The level of neutrons exceeded the maximum level that could be registered on the monitor, according to the memo.

...

Most of these cases have been attributed to the mishandling of a valve in a system that controls water pressure to move control rods.

/... :eyes:

http://yahoo.reuters.com/news/articlehybrid.aspx?type=comktNews&storyID=urn:newsml:reuters.com:20070323:MTFH70688_2007-03-23_00-51-55_HKG149371&pageNumber=0&imageid=&cap=&sz=13&WTModLoc=HybArt-C1-ArticlePage2

...

"The Nikkei may try for 17,500 early on, helped by the currency and high Chicago futures, but the market is the likely to take a breather, and the advance may be limited," said Kazuhiro Takahashi, a general manager in the equity marketing department at Daiwa Securities SMBC.

In South Korea, gains of 0.52 percent for market heavyweight Samsung Electronics and 0.69 percent for top lender Kookmin Bank helped drive the KOSPI up 0.34 percent.

But transport shares such as Korean Air slipped on worries about higher fuel costs.

"The surge in oil is going to pose a burden today," said Choo Hee-yeop, deputy general manager of asset management strategy at Korea Investment and Securities.

Australia's key S&P/ASX 200 index edged up 0.16 percent after reversing early losses, boosted by gains of 1.19 percent for shopping mall operator Westfield Group and 1.13 percent for dominant telco Telstra Corp.

Oil and gas producer Woodside Petroleum added 1.28 percent.

MSCI's measure of Asia Pacific shares excluding Japan was flat, taking a bit of a breather after six straight sessions of gains. The market gauge is now just 1.7 percent away from the record high set on Feb. 26.

/..

ed. G'night (01:24 GMT) :hi: