STOCK MARKET WATCH, Friday March 23

Source: DU

Friday March 23, 2007

COUNTING THE DAYS
DAYS REMAINING IN THE * REGIME 668 LONG DAYS
DAYS SINCE DEMOCRACY DIED (12/12/00) 2279 DAYS
WHERE'S OSAMA BIN-LADEN? 1983 DAYS
DAYS SINCE ENRON COLLAPSE = 1943
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 22, 2007

Dow... 12,461.14 +13.62 (+0.11%)
Nasdaq... 2,451.74 -4.18 (-0.17%)
S&P 500... 1,434.54 -0.50 (-0.03%)
Gold future... 664.20 +4.20 (+0.63%)
30-Year Bond 4.78% +0.09 (+1.83%)
10-Yr Bond... 4.59% +0.07 (+1.57%)






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

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Read more: DU

IBD Follow Through Day Moves Market Into "Confirmed Rally"
BY MARTIN GOLDBERG, CMT

Wednesday’s rally brought about an Investors Business Daily (IBD) follow through day thereby putting the market in “confirmed rally” mode. IBD’s word on the stock market as of Tuesday evening was, “market in correction.” But with Wednesday’s action, the benefit of the doubt moves from the bears to the bulls all within a single day. In recent years, the IBD method has been as good as any in predicting the intermediate term position of the stock market. Also relevant is the fact that what they consider to be leading stocks are acting well. While a cynic can throw several rationales at the recent action of the stock market, one trades against IBD’s method at their own significant risk. With regard to IBD, when you find a hot guru, it pays to follow his advice. Trading against the methodology of the hot guru can be both demeaning and expensive.

Below you see the daily chart of the Nasdaq composite. Last Wednesday’s mid-day turnaround which put the market up well off of its lows of the day was considered to be the initial rally. It is relevant that when the Nasdaq composite broke below 2,340 mid day last Wednesday, that was an apparent new low. The quick turnaround flashed a signal that the market’s character had not changed and bears were in for a rapid and tradable rally against their position. Once again, it was a losing proposition to sell into apparent weakness and once again, it was a winning proposition to buy an apparent break of technical support. Over the five days ending on Tuesday, it appeared suspect to the bullish case that the market was advancing, but on anemic trading volume. But when 2,410 was broken and then successfully tested this Wednesday morning, and the Fed said what the market wanted it to say, an IBD follow through day was produced. (The trading volume on Wednesday was only average, and would have been less than average except for the relatively high trading volume in the Nasdaq 100 ETF.)

-cut-

Today’s Market

The market action was fairly constructive to bulls as today was spent digesting yesterday’s gains. Very little of yesterday’s rally was given back. Google continued to approach 466. Apple traded quietly. Motorola appeared to have decisively broken below its support at about 18, finishing at 17.5, but this is far from a decisive break. It hung around the 17.5 level all day and this is a level where a popular big time private investor (example: Carl Ichan or Kirk Kirkorian) could announce a major steak in the company. Other bullish possibilities include a Wall Street analyst upgrade, and expansion of a stock buyback, or rumors of a hedge fund takeover. There were 190,343,829 shares of Motorola sold today; but as we know, there were precisely the same amount of shares bought and the buyers could easily have included those folks mentioned above. Selling into weakness has been a losing proposition and such a trend must be given the full benefit of the doubt. Such a rally in this lackluster company could be sharp and damaging to bears.

-cut-

Important from a longer term perspective is the fact that in spite a lot of news of economic slowing over the last few weeks which should have been bullish for the bond market, bonds have been selling off. So while the stock market took the Fed statement to mean lower interest rates are likely in the future, the bond market reacted to the possibility that the Fed may fight inflation with higher rates.

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

10:00 AM Existing Home Sales Feb
Briefing Forecast 6.30M
Market Expects 6.30M
Prior 6.46M

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

third straight month of increases.

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

Last trade 83.13 Change +0.05 (+0.06%)

US Dollar Rallies Despite Dismal Leading Indicators

http://www.dailyfx.com/story/dailyfx_reports/daily_fundamentals/US_Dollar_Rallies_Despite_Dismal_1174598822725.html

US Dollar – The US dollar was higher against the majors today, retracing some losses on yesterday run up to the Federal Reserve announcement. Subsequently, the thin schedule lent little for further greenback strength, with the market simply referring to the week’s initial jobless claims and the leading indicators report. For the month, the leading index dropped 0.5 compared to consensus estimates of a 0.4 drop. Surprisingly pessimistic, the index also printed a revised 0.3 percent lower mark for the previous month. Notably choppy activity riddled the report, which showed jobless claims and consumer expectations dip alongside building permits. However, with the consumer goods orders component lending some support, one can claim that consumer spending continues to remain a pillar of stability for the world’s largest economy. Initial jobless claims actually improved on the week, helping to stabilize the rather overlooked index survey. With nothing but existing home sales scheduled for tomorrow, dollar proponents will be looking forward to next week’s testimony by Federal Reserve Chairman Ben Bernanke. Aside from what is scheduled, including durable goods and consumer sentiment, the testimony should shake dollar markets up as it comes just a week after the Federal Open Market Committee meeting. According to the Joint Economic Committee Chairman Sen. Charles Schumer, the Federal Reserve policy maker will answer questions regarding the subprime mortgage market and growth/inflation.

...more...

Dollar Free Fall Stalls Though New Lows Already In Place

http://www.dailyfx.com/story/currency/eur_news/Dollar_Free_Fall_Stalls_Though_1174584965445.html

Since the Fed announced its neutral lean yesterday afternoon, the greenback has put in new multi-month lows and subsequently rebound in a few short hours. Still a little shaken, dollar bulls will have time to gather their wits on Thursday’s fundamentally quiet session before the existing home sales report shakes up the currency market one last time before the weekend.

For price action, the pullback in EURUSD epitomized the mixture of caution and profit-taking seen across the majors. In the Asian session, the pair made a last-gasp spike to 1.3410 before gradually pulling back to 1.3350. At the same time, USDCHF formed a 1.2080 base before slowly working its way back above 1.21. The pound delayed its move against the dollar until the London session when GBPUSD rallied to 1.9730 before settling back to the range low round 1.9660. Finally, the previous 24 hours of action in USDJPY hasn’t amounted to any serious breaches of technical protocol. A low around 117.25 and return to 117.95 has kept a three-week long range intact.

The battered dollar was looking forward to a day of rest on Thursday. After a number of market-moving events in the past three days, traders had only jobless claims and the Leading Indicators index listed on the docket. The aggregate Leading gauge was undoubtedly the most influential report of the two. Already expected to slow, the Conference Board’s report surprised the market with a greater than predicted 0.5 percent contraction in its February print – the biggest drop in a year. Adding to the disappointment, January’s initial modest rise was revised down to a 0.3 percent decline. From the breakdown of the forward-looking indicator, half of the components reported declines for the month. The employment, factory activity and consumer sentiment components all contributed to the poor showing with individual declines of their own. Overall, this often over-looked indicator was perhaps saying more to traders than usual following the cooled rhetoric from the FOMC on Wednesday concerning inflation. Also hitting the wires, the jobless claims numbers reversed some of the pessimistic sentiment with the Leading index. First time filings for unemployment benefits fell to 316,000 in week through March 17th, the slowest pace since the opening week of February. However, the bullish convictions these numbers can rouse is limited considering the less volatile four-week average is still well above typical levels of previous months.

Looking ahead to Friday’s New York session, traders will be back on their guard. The National Association of Realtors February existing homes sales report will draw fundamentalists back to the struggling housing sector. So far this week, the housing numbers have been relatively mixed with a tangible downward bias. Leading indicators like the NAHB industry sentiment survey and building permits are promising weak sales and construction activity in the forthcoming numbers. Alternatively, the pick up in housing starts and a slightly dovish Fed offers a tentative basis for optimism. The former is a lagging indicator that is still caught up in weather related fluctuations. At the same time, the Fed’s slightly altered policy statement is far from a guarantee that a rate cut is on the way. Where will existing home sales fit into the equation? If the indicator prints lower as expected, it would support the disappointing leading reports and leverage speculation behind a deeper housing market slump.

...more...

http://yahoo.reuters.com/news/articlehybrid.aspx?storyID=urn:newsml:reuters.com:20070323:MTFH78868_2007-03-23_09-55-33_HKG176059&type=comktNews&rpc=44

HONG KONG, March 23 (Reuters) - Hong Kong leader Donald Tsang said on Friday he hoped Chinese yuan bonds will debut in the territory by the middle of the year, and downplayed any long-term threat to Hong Kong's status as Asia's financial hub.

Tsang, poised to win another five years in office when a 795-member pro-Beijing election committee votes on Sunday, said the Chinese territory hoped to keep hosting other yuan instruments or reforms in its role as a laboratory for freeing up a rigid yuan <CNY=CFXS> regime.

Analysts estimate there are billions of dollars of yuan circulating in Hong Kong, one reason why Beijing has granted lenders there increasing freedom to pursue yuan-denominated financial services in past years, such as allowing them to take yuan deposits in 2003.

This year, the government granted approval for Chinese institutions to issue yuan bonds in Hong Kong as part of a string of reforms to be tested in the former British colony.

...

Hong Kong's currency <HKD=> is fully convertible and pegged to the U.S. dollar at about 7.8, while the yuan <CNY=CFXS> is not, and its exchange rate versus the dollar is painstakingly managed by Beijing.

The city's financial strength has come partly from Chinese firms seeking to list shares on its stock market -- now ranked among the top three global fund-raising destinations.

/...

http://yahoo.reuters.com/news/articlehybrid.aspx?storyID=urn:newsml:reuters.com:20070323:MTFH78285_2007-03-23_09-27-59_L23118818&type=comktNews&rpc=44
Fri Mar 23, 2007 5:28am ET

LONDON, March 23 (Reuters) - The yen rose across the board on Friday, reversing earlier losses as investors took profit on carry trades financed by the Japanese currency ahead of the weekend.

In Asian trading the yen was slightly weaker as the dollar firmed on expectations the Federal Reserve would leave interest rates on hold for some time.

But investors started buying back the yen in Europe against European currencies and the dollar ahead of the weekend.

"Sterling/yen in particular is one of the trades you've been seeing when risk appetite has improved and things have rallied -- maybe now we're seeing a bit of profit-taking," said Jeremy Stretch, market strategist at Rabobank. By 0926 GMT the euro was down 0.5 percent at 156.68 yen <EURJPY=>. The dollar was down a third of a percent at 117.69 yen <JPY=>. Losses against the yen dragged the euro down against the dollar to $1.3312 <EUR=>.

Sterling was also down against the yen at 231.10 after hitting a three-week high earlier <GBPJPY=R>.

/.

http://mwprices.ft.com/custom/ft2-com/html-story.asp?pulse=true&siteid=ft&dist=ft&guid=%7B2028cfcf%2D6622%2D4718%2Dbc67%2Db5462e674673%7D
Last Update: 3/23/2007 10:26:48 AM (EST, I think)

The dollar clawed back some ground on Friday following sharp losses in the wake of Wednesday’s Federal Reserve meeting, when the US central bank struck a more dovish tone than in recent rate-setting meetings. Moving towards a more ”neutral” monetary policy, the Fed, by omitting the reference to ”additional firming” raised expectations that the next move would be an interest rate cut. Strategists downplayed the significance of this however. David Jones, chief market analyst at CMC Markets, said: ”Despite the Fed’s dovish tone on Wednesday evening, there’s clearly some doubt as to just how quickly we’ll see any rate cut come through.” The euro slipped 0.2 per cent against the dollar to $1.3306, while sterling eased fractionally to $1.9635. The yen however, rose as investors took profits from this week’s resurgence in the carry trade. With risk appetite on the way to recovery following a strong performance from global equity markets, fears eased over the unwinding of the carry trade, where the purchase of riskier higher-yielding assets are funded by selling low-yielding currencies like the yen. Japan’s currency rallied 0.4 per cent against the dollar to Y117.62 and 0.5 per cent against the euro to Y156.70.

SINGAPORE - Oil prices rose Friday as Asian traders reacted to signs that U.S. refineries have begun to increase production and other positive market signs.

Light, sweet crude for May delivery increased 8 cents to $61.77 in midafternoon Asian electronic trading on the New York Mercantile Exchange. This followed a surge of more than $2 a barrel the day before after the U.S. government reported more robust refinery usage for the first time in weeks.

Traders also appeared to interpret a decision by the U.S. Federal Reserve to leave its benchmark interest rate unchanged as positive for the market.

-cut-

The U.S. inventory report released Wednesday indicated that refineries are beginning to emerge from their seasonal maintenance period, after weeks of declining utilization, and will soon start demanding more crude oil ahead of the U.S. driving season. The Energy Information Administration reported refineries operated at 86.3 percent capacity last week, up 0.7 percent from the prior week.

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

NEW DELHI (AFP) - US Energy Secretary Samuel Bodman has called for the planned
Iran-Pakistan-India gas pipeline to be abandoned, saying it could help Iran build nuclear weapons, according to a report on Friday.

"There have been talks among Iran, India and other countries about finding ways of developing Iran's oil and gas assets," Bodman was quoted by the Hindu newspaper as saying.

"If that is allowed to go forward, in our judgment, this will contribute to the development of nuclear weapons," Bodman told reporters, the Hindu said.

-cut-

Iran plans to lay a pipeline from the giant South Pars gas field to carry 90 million standard cubic meters per day of gas. One third will be used by Iran while Pakistan and India will get another third each.

http://news.yahoo.com/s/afp/20070323/wl_sthasia_afp/indiapakistanirannuclearpoliticspipelinegasenergy_070323103411

Here we go... :eyes:

:eyes:

:donut: and lurkers......

:wtf: was I sleeping in my organic chem class? Was I out picking daisies in physics? Do they no longer teach science in schools anymore, oh wait, they teach science, it just has to be sanctioned......:eyes:

Or is this the New World Order Math...X+X=Y instead of 2X. Talk about non sequiter. Well that is at least the new GOP logic....if you give a starving child a free meal, they'll grow up thinking that they are entitled to a free meal and worse yet...they'll B-R-E-E-D.:sarcasm:

They are desperate to see their neocon apocolyptic wet dream realized and the plug needs to be pull. Will we continue to have problems in the Mid East...Yes. Will we have to fight in that region...Probably. But we need to pick our battles and use negotiation as our first and primary tactic.

What a bunch of numbnuts.

Happy hunting and watch out for the bears.

http://www.presstv.ir/detail.aspx?id=3538§ionid=351020103

Iran's efforts to switch from U.S. dollar to other currencies in crude oil deals appear to be progressing.

An official with Iran's oil ministry says 60% of payments are now made in non-dollar currencies.

The U.S. has been trying to prevent overseas banks doing dollar deals with Iran, a move which Washington leaders think could undermine the Iranian economy.

However, Tehran has proved those efforts ineffective by introducing a currency shift in crude deals.

Iran has succeeded in ensuring that almost all European and some Asian clients have agreed to pay in currencies other than U.S. dollars, a senior oil official said on Thursday.

more...

http://yahoo.reuters.com/news/articlehybrid.aspx?storyID=urn:newsml:reuters.com:20070323:MTFH78070_2007-03-23_09-18-08_PEK4385&type=comktNews&rpc=44

BEIJING, March 23 (Reuters) - Chinese President Hu Jintao goes to Moscow on Monday, confidently offering trade deals with an economy roaring back home, but urgently seeking oil, gas and assurance as the two countries eye each other's resurgent power.

Hu's three-day state visit to Russia will be his third as president, showing how seriously Beijing is courting its neighbour and President Vladimir Putin. Above all, Russia has the energy supplies China needs to fuel its growth.

"At present, Chinese-Russian relations are developing vigorously and have reached unprecedented levels," Hu told Russian journalists ahead of his visit. He is expected to unveil business deals worth over $4 billion, Chinese officials said.

China is the world's number two oil consumer, and Russia the second-largest exporter. But their potential partnership has been hobbled by both nations' desire to keep a grip on the strategic energy sector and maximise their oil majors' profits.

Previous plans for key crude and gas pipelines have languished after initial agreements were trumpeted by both sides, underscoring the brittleness of the two countries' friendship.

/...

The Federal Reserve chairman's weird affection for adjustable-rate mortgages.

Posted Friday, Feb. 27, 2004, at 4:47 PM ET

Democrats frothed and Republicans shuddered this week when Alan Greenspan suggested that Congress slash Social Security benefits. The frenzy was a shame, because it overshadowed an even more controversial statement the Fed chairman made earlier in the week. On Monday, the 78-year-old banker seemed momentarily to morph into peppy-personal finance maven Jean Chtatzky. As the headliner at the Credit Union National Association's meeting—although I'm sure the bankers were also eager to see "David Landis performing as the U.S. Sen. George Norris, original signer of the 1934 Federal Credit Union Act"—Greenspan explained why consumers might be better off considering adjustable-rate mortgages, or ARMs, instead of standard fixed-rate mortgages. While fixed-rate mortgages have their benefits, he noted that:

Calculations by market analysts of the "option-adjusted spread" on mortgages suggest that the cost of these benefits conferred by fixed-rate mortgages can range from 0.5 percent to 1.2 percent, raising homeowners' annual after-tax mortgage payments by several thousand dollars. Indeed, recent research within the Federal Reserve suggests that many homeowners might have saved tens of thousands of dollars had they held adjustable-rate mortgages rather than fixed-rate mortgages during the past decade, though this would not have been the case, of course, had interest rates trended sharply upward.

Well, duh.

<snip>

Greenspan also presumes that Americans would be effective market-timers, which recent experience tells us they are most certainly not. In 1993, which would have been an optimal time to purchase an ARM, about 20 percent of mortgage origination volume consisted of ARMs, according to the Mortgage Bankers Association. The figure has bounced around for much of the past decade. In 1998 and 2001, ARMs garnered just 12 percent of mortgage origination volume. The proportion rose sharply to 19 percent in 2003. In other words, just as people rushed out to buy stocks after they moved up dramatically, people frequently rush out to take out ARMs after interest rates fall sharply.

Buying an ARM when long-term interest rates are in long-term decline makes sense. But if you buy one in a period when the general trend of interest rates is higher, then you could be just another American Sucker. And that's why Greenspan's comments seem oddly timed.

If ever there were a moment when an ARM didn't seem to a good buy, surely it is now. Interest rates are at historic lows. Can rates drift a little lower? Sure. Can they go significantly lower? Most likely not. The balance of risks, as Greenspan might put it, certainly weighs in favor of interest rates remaining stable or rising over the next several years, not falling. As Greenspan noted in his Social Security comments, there exists in Washington "a dynamic in which large deficits result in ever-growing interest payments that augment deficits in future years." These persistent, massive deficits will certainly place upward pressure on interest rates. And does anybody think the inept band of borrowers and spenders in Washington is going to address the structural imbalances they've created before a crisis sets in and before interest rates start to spike?

...more...

to part the poor and middle class from their money.
Edited to add...I'd follow the Oracle of Omaha over the Wiz of Washington any day of the week.

Ya don't say (at the right time, at the right price), Cap'n obvious. You wanna sign a contract, later they decide how much you pay?

Bung.

Actually, in my memory, used to be normal in UK (times have surely changed). But quite difficult to obtain here in the bureaucracy-loving index-linked Spanish-speaking mediterranean world: a minority taste, so.

:donut: :donut: :donut:

I will be scarce again today. Family has flown into town. If you can spare the time, please help maintain the festive mood around here. :party:

I'll check back when all is said-n-done.

Ozy :hi:

:hi:

It will be an in and out day for me - but I'll attempt to do my part to keep the party goin' :D

Have a great day with the fam!

:hangover:

I'm thinking this is where the action is for the foreseeable future. This is going to
effect more Americans than anything I can think of...

1. The return of high oil prices.
2. The fact many are totally topped out on both their credit and home equity to finance
the last round of high oil profits while simultaneously facing a fall in income and
energy price driven inflation.
3. The beginning of the decay of the lending industry.
4. Speculators dumping real estate causing wide supply/demand gaps with falling prices.
5. The saber rattling in the mid-east is hitting a crescendo.

Can everyone say, Predatory?

Anyway, I'll be over here in the corner lurking. Waiting for the train wreck.

:hi:

:hi: pretty good observation and summery. Welcome to the party.:party: The cake and ice cream is over there and here's your pony....:kick:

It's good to know there's a health care professional here when I start staggering around
clutching at my chest yelling... "It's the big one, I'm coming, It's the big one!" in a
very Fred Sandfordesque manner. :)

:hi:

when I have heard that phrase.....it didn't refer to a cardiac event.:evilgrin::spray::rofl:

I'm very concerned for many people.

:D

been reading up on Asia Times online, and articles on the economy by Mike Whitney...was raised by grandparents who survived the (1st) Depression, and remember their comments...time for that Victory garden, folks...times gonna' get worse before they get better...

:scared:

08:30 am : S&P futures vs fair value: +0.4. Nasdaq futures vs fair value: -2.0. The S&P 500 and Nasdaq 100 futures have weakened since the last update, taking a bearish cue from a turnaround in oil prices amid renewed geopolitical tensions. Crude for May delivery was consolidating some of yesterday’s 3.5% surge but has since spiked higher and turned positive ($62.44/bbl +1.2%) after the British Ministry of Defense confirmed that 15 Naval personnel were seized by Iran.

08:00 am : S&P futures vs fair value: +1.2. Nasdaq futures vs fair value: +0.3. Early indications are pointing to a relatively sluggish start for stocks as investors still lack overwhelming data to justify the market's huge run-up so far this week. With no earnings reports of note, outside of Nike (NKE) following up better than expected Q3 results with soft gross margin guidance, and the Fed recently saying in its policy directive that "the adjustment in the housing sector is ongoing," investors may be waiting for today's Existing Home Sales (10:00 ET) report to set a more definitive tone.

06:22 am : S&P futures vs fair value: -0.5. Nasdaq futures vs fair value: -1.5.

06:21 am : FTSE...6323.60...+5.60...+0.1%. DAX...6853.23...-3.73...-0.1%.

06:21 am : Nikkei...17480.61...+61.41...+0.3%. Hang Seng...19692.64...+2.39...+0.0%.

:hi:

I found it quite telling that right after I read the story about Iran capturing British soldiers, I come to SMW and see the futures higher. I guess Gen Smedley Butler was right after all! There's some serious money to be made in this war business. On the other hand it may mean nothing at all. Have a great day everyone and a fabulous spring weekend.

but instead it is falling. I just don't understand how this all works.

I've been waiting for Gold to get above $700 for the past year. Manipulation is my guess, but then again, I don't understand most of what passes for financial reality these days. Conflicts too much with what I learned in Economics during college.

:hi: Don't worry too much: the British have plenty of experience in crossing lines, perhaps by mistake, especially at sea. Modus vivendi is an operative phrase/concept.

I like to think that, in such circumstances, we still know how to sit down, drink tea, talk about it, apologise and even kow-tow if necessary (without ever losing eye-contact, losing respect) and, essentially, avoid uneccesary stupìd conflict.

Weird though it may seem, I calculate that the British Foreign Office (though I'm rather worried about the Ministry of Defence, and just don't mention the Home Office (interior)) is still far stronger, when push comes to shove, than any Prime Minister of the day.

In other words, I sincerely hope and expect that, if you're loooking for a "Tonkin Gulf Incident" (or another highly profitable Pearl Harbor), this poodle is not for you.

:finger: :-(

isn't that illegal. Hope he has enough to pay for his legal bills. Of course this only confirms what I have come to believe about ANY WS show and spoksman.

http://asia.news.yahoo.com/070323/ap/d8o1phv00.html
Friday March 23, 5:07 PM (GMT+8)

Japanese stocks rose Friday for a fourth straight session, climbing to their highest in nearly a month, led by autos, banking and oil issues.

The benchmark Nikkei 225 index added 61.41 points, or 0.35 percent, to finish at 17,480.61 points on the Tokyo Stock Exchange _ its highest since Feb. 28. The index now has risen 4.4 percent over the past four trading sessions, including a 1.5 percent gain Thursday.

Traders said exporters like autos moved higher amid relative stability in dollar-yen trading, while commodity-related stocks like oils advanced after a rise in oil prices.

Gainers included Toyota Motor Corp., which rose 0.51 percent to 7,840 yen ($66.44) and Nippon Oil Corp., which posted a 1.17 percent to 948 yen ($8.03). Banks also advanced, with Mizuho Financial Group Inc. rising 1.30 percent to 782,000 yen ($6,627.12).

Oil prices continued to rise Friday as Asian traders reacted to signs that U.S. refineries have begun to increase production and other positive market signs.

The broader Topix index, which includes all shares on the exchange's first section, rose 10.14 points, or 0.59 percent, to 1,741.94. The Topix rose 1.38 percent, the previous day.

In currency dealings, the U.S. dollar was trading at 118.14 yen at 2:50 p.m. Friday, down from 118.15 yen late Thursday in New York. The euro fell to $1.3330 from $1.33834.

/.

http://asia.news.yahoo.com/070323/kyodo/d8o1o8p02.html

(Kyodo) _ Nonresident investors remained net sellers of Japanese stocks last week for the third consecutive week at the Tokyo, Osaka and Nagoya bourses, the Tokyo Stock Exchange said Friday.

Nonresident investors sold a net 86.88 billion yen worth of stocks from March 12 to 16, down from 390.04 billion yen the preceding week.

Individual investors remained net stock buyers for the third straight week, purchasing a net 422.34 billion yen worth, down from the preceding week's net buying of 590.26 billion yen.

Banks with nationwide branch networks, regional banks and Internet banks remained net sellers for the 10th week running, unloading a net 6.55 billion yen, down from a net 8.16 billion yen the previous week.

Life and nonlife insurers remained net buyers for the third consecutive week, buying a net 3.06 billion yen, down from a net 13.46 billion yen.

Trust banks, which manage public pension funds, remained net sellers for the 10th straight week. They sold a net 23.84 billion yen, down from a net 171.92 billion yen.

/.

http://yahoo.reuters.com/news/articlehybrid.aspx?storyID=urn:newsml:reuters.com:20070323:MTFH79001_2007-03-23_10-02-52_T159880&type=comktNews&rpc=44

TOKYO, March 23 (Reuters) - Japan said on Friday that it has no plans to divert its foreign currency reserves -- the world's second largest -- out of U.S. dollars and that it will not sell its foreign assets to help redeem Japanese government bonds.

It now also expects a higher funding cost for its external reserves due to recent rate hikes by the Bank of Japan after years of enjoying virtually zero costs while earning much higher returns from its mainly dollar-denominated reserve assets.

The currency breakdown of Japan's external reserves is a state secret, but historical data on the country's currency intervention, which has mostly taken the form of dollar buying, suggests most of Tokyo's hefty reserves are in U.S. dollars.

"We do not comment on the composition of currencies in foreign reserves as it may have an unexpected impact on markets, but we have no plan to substantially change the composition," Finance Minister Koji Omi told a parliamentary committee.

Acknowledging that most of Japan's official reserves, which reached a record $905.048 billion in February, are in dollars, Omi also stressed Japan's policy that its reserve portfolio management will focus on ensuring the stability and liquidity of assets while pursuing their profitability under those constraints.

Over the past few years, Japan has diversified the types of dollar-denominated assets in its foreign exchange reserves, shifting to a more active management approach from its traditional buy-and-hold policy.

/...

http://yahoo.reuters.com/news/articlehybrid.aspx?storyID=urn:newsml:reuters.com:20070323:MTFH76521_2007-03-23_08-06-30_HFB078081&type=comktNews&rpc=44

HONG KONG, March 23 (Reuters) - Hong Kong blue chips paused on Friday following a four-day gaining streak, while PetroChina Co. Ltd. (0857.HK: Quote, Profile , Research) and other resource plays gained on higher commodity prices, lifting China plays up 0.8 percent.

The benchmark Hang Seng Index <.HSI> ended at 19,692.64.

The China Enterprises index of H-shares <.HSCE>, or Hong Kong-listed shares in mainland companies, rose 73.81 points to end at 9,487.51, marking its seventh straight gaining session.

/.

http://yahoo.reuters.com/news/articlehybrid.aspx?storyID=urn:newsml:reuters.com:20070323:MTFH77653_2007-03-23_09-00-36_SYD53947&type=comktNews&rpc=44

SYDNEY, March 23 (Reuters) - Chinese groups are scouring the outback in search of Australian mining companies willing to swap equity for millions of dollars in cash to fund exploration and development.

Unlike the popular "memorandum of understanding" pacts between deep-pocket investors and cash-hungry prospectors that merely promise: if you build it we will buy what you dig, China is increasingly taking a ground-floor role in mine development.

"If anyone has a resource that appears to have long-term potential, whether it is something that can be developed next year or in the next decade, the Chinese are prepared to put the their toe in the water and take a piece of equity and get first in the queue," Grant Craighead, an analyst at Stock Resource in Sydney, said.

In the latest example, Chinese aluminium group Chalco (2600.HK: Quote, Profile , Research) has agreed to develop the vast Aurukun bauxite deposit in eastern Australia forfeited by a rival Alcan Inc. (AL.TO: Quote, Profile , Research) as part of an aluminium-making project in Australian costing around A$3 billion ($2.4 billion). Australia's Queensland state last year picked Chalco -- Aluminum Corp. of China Ltd. -- from a field of 10 to submit a final proposal to develop the deposit in eastern Australia.

Analysts say parallels to China's push into Australia can be drawn from the 1980s when Japan, hungry for coal, funded exploration of the rich deposits of eastern Australia. -- in exchange for part ownership.

The Chinese, facing years of double-digit industrial growth, are digging around for a variety of minerals already -- or soon to be -- in short supply at home.

/...

http://investing.reuters.co.uk/news/articleinvesting.aspx?type=eurMktRpt&storyID=2007-03-23T140919Z_01_L2374739_RTRIDST_0_MARKETS-EUROPE-STOCKS-URGENT.XML
Fri Mar 23, 2007 2:09 PM GMT

LONDON, March 23 (Reuters) - European shares extended gains on Friday after the pace of U.S. existing home sales rose an unexpected 3.9 percent in February to a 6.69 million-unit annual rate.

Economists polled by Reuters were expecting existing U.S. home sales to slide to a 6.31 million rate. It was the biggest rise since a matching increase in March 2004.

At 1405 GMT, the FTSEurofirst 300 <.FTEU3> index of top European shares was up 0.39 percent at 1,521.46 points.

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Cooño, as we say, surprised, in Spain. :eyes:

in this part of Texas, except we usually aren't suprised when we do.:smoke:

Of course, the (sometimes soft, sometimes abrupt) expression (epithet?) can/does carry layers upon layers of diverse meanings... :hug:

the joys of subjective meanings in communication. Have a good weekend-in whatever language you prefer. :hugs:

http://investing.reuters.co.uk/news/articleinvesting.aspx?type=eurMktRpt&storyID=2007-03-23T175120Z_01_L23287410_RTRIDST_0_MARKETS-EUROPE-STOCKS-UPDATE-3.XML

FRANKFURT, March 23 (Reuters) - European shares closed higher on Friday amid merger and acquisition (M&A) talk and as a higher oil price lifted heavyweight energy stocks.

Strategists said lively M&A activity and healthy corporate profits looked set to go on supporting European stock markets.

The FTSEurofirst 300 <.FTEU3> index of top European shares closed 0.54 percent higher at 1,523.75 points, having hit a four-week high of 1,524.59 points in intraday trading.

For the week, the benchmark index rose over 4.5 percent.

"It was a good week, and the possibility that we have seen the lows has increased," said Giuseppe-Guido Amato, equity strategist at German brokerage Lang & Schwarz.

"For the mid-term, rumours of M&A are a very important point ...If one of the deals goes through ... then that will be fuel in the fire for good sentiment," he said.

Carmaker DaimlerChrysler (DCXGn.DE: Quote, Profile , Research) rose 6.2 percent to 62 euros, its highest since August 2000, amid speculation it may sell its troubled Chrysler unit soon. Continued...

/...

http://www.postfinance.ch/pf/content/en/topics/etrade/news/stockreportchev.html

The Swiss blue chip index closed Friday's session slightly higher, tracking opening gains on Wall Street. Trading activity remained light ahead of the weekend, traders said.

The Swiss Market Index closed 15.6 points or 0.17% higher at 9,089.85 with 13 gainers, 9 decliners and 3 stocks unchanged. The broader Swiss Performance Index inched up 12.32 points or 0.17% to 7,259.77.

Roche down on Tamiflu concerns

Roche closed 1.31% lower at CHF 219.30 after Japan's government on Friday said it will investigate claims of abnormal behaviour linked to Roche's bird flu drug Tamiflu to determine whether using it provoked severe neuro-psychiatric side effects. However, European experts said the benefits of Tamiflu outweighed the risks, but that it would closely oberve reports of safety concerns in Japan. Novartis, meanwhile, added 0.36% to CHF 69.60.

UBS to acquire banking licence in India

UBS ended the week 0.55% higher at CHF 73.35 amid media reports that the group is acquiring a banking license in India to strenghten the bank's wealth-management business in the region. Sector peer Credit Suisse rose 1% to CHF 91.10 and food and beverage group Nestle firmed 0.42% to CHF 478.25.

Insurers were among the SMI's top performers: while Swiss Re jumped 1.38% to CHF 110.50, Swiss Life Holding advanced 0.65% to CHF 311.00 and Baloise climbed 0.39% to CHF 128.50. At the other end of the spectrum, Holcim dropped 1.05% to CHF 122.20, Ciba fell 0.63% to CHF 79.20 and Lonza slipped 0.69% to CHF 114.40, hit by rising oil prices.

/...

http://mwprices.ft.com/custom/ft2-com/html-story.asp?pulse=true&siteid=ft&dist=ft&guid=%7Bf8d9c78c%2Dac6b%2D4365%2Db497%2Da11f9d12e130%7D

European equities ended a strong week by turning around opening losses on Friday as takeover activity kept the market buoyant. By the close, the FTSE Eurofirst 300 was up 0.51 per cent to 1,523.34, Frankfurt’s Xetra Dax climbed 0.61 per cent to 6,899.06, the CAC 40 in Paris gained 0.65 per cent to 5,634.75, and London’s FTSE 100 rose 0.34 per cent to 6,339.4.

Dow 12,476.76 Up 15.62 (0.13%)
Nasdaq 2,448.70 Down 3.04 (0.12%)
S&P 500 1,434.91 Up 0.37 (0.03%)
10-Yr Bond 4.6070% Up 0.0180
NYSE Volume 1,533,689,000
Nasdaq Volume 972,063,000

... What a sailor would call, not doldrums, but, more like weak, ill-defined (¡!) zephyrs ... compás de espera (trad: (music): silence that lasts as long as it takes); waiting time.

1:00 pm : The market's latest attempts by the bulls to more aggressively argue that stocks remain undervalued at current levels have been met with some resistance. While the pullback on all three major indices is modest in scope, the lack of conviction on the part of buyers further underscores the market's cautious near-term approach in an environment where modest prospects for earnings growth limit the upside potential for the stock market.

As a reminder, forecasts for operating earnings on the S&P 500 in aggregate have been coming down over the past two months. Earnings estimates for the first quarter have drifted down from 8% two months ago, to 6% last month, to 5% or less currently. DJ30 +20.67 NASDAQ -1.58 SP500 +1.56 NASDAQ Dec/Adv/Vol 1418/1502/908 mln NYSE Dec/Adv/Vol 1293/1795/690 mln

12:30 pm : The market kicks off the afternoon session trading at improved levels; but the rebound has not been nearly enough to make a significant change in the standings. The bulk of recent buying activity has been centered on a turnaround in Technology, paced by strength in semiconductors and computer storage.

The latter, which ranks as today's fourth best performing S&P industry group (+2.1%), is getting a lift from a 3.6% surge in SanDisk (SNDK 45.08 +1.58) and an analyst upgrade on Network Appliance (NTAP 38.58 +0.93); both have helped the Nasdaq inch into positive territory. The sector is also getting some help from Motorola (MOT 17.90 +0.40), which is recouping some of yesterday's 6.6% sell-off following reports that billionaire investor Carl Icahn has increased his holdings in MOT to 2.7%. DJ30 +34.93 NASDAQ +1.33 SOX +1.3% SP500 +3.39 NASDAQ Dec/Adv/Vol 1372/1513/820 mln NYSE Dec/Adv/Vol 1235/1844/620 mln

12:00 pm : Given the scope of this week's rally and a lack of overwhelming data this morning to justify such sizable gains, it's not overly surprising to see stocks trading with little conviction midday.

With the Fed recently saying in its policy directive that "the adjustment in the housing sector is ongoing," today's existing home sales report at 10:00 ET was anticipated to set a more definitive tone. While an unexpected increase of 3.9% in February sales to an annual rate of 6.69 mln, up from 6.44 mln in January, alleviated some of the overblown fears of a housing crisis leading to recession, the report also greatly reduced the rationale for any Fed easing. That reality check, in turn, prompted a reversal in bonds and took some steam out of equities.

There have also been only a couple of earnings reports. Nike (NKE 106.82 -1.78) posted better than expected Q3 earnings but then issued soft gross margin guidance. Freddie Mac (FRE 62.82 +0.58) posted of $480 mln loss in Q4 but said it plans to buyback an additional $1 bln shares.

Throw in a 1.2% surge in oil prices, which are now back above $62/bbl, and Energy's gains can only provide so much leadership to offset weakness in more influential sectors like Health Care and Technology. Crude for May delivery is adding to yesterday's 3.5% rally amid renewed geopolitical tensions after the British Ministry of Defense confirmed that 15 Naval personnel were seized by Iran. Such worries are contributing to a cautionary tone going into the weekend. DJ30 +21.42 NASDAQ -1.20 SP500 +2.40 NASDAQ Dec/Adv/Vol 1405/1454/726 mln NYSE Dec/Adv/Vol 1288/1748/550 mln

11:30 am : More of the same for stocks as the blue-chip indices and Nasdaq continue to trade in opposing directions. Helping the Dow turn positive for the year, stay on pace for its best weekly performance since July 2006 and potentially log a complete week of gains has been General Motors (GM 31.43 +1.11), which is up 3.7%.

Shareholders are applauding news that GM will pay stock bonuses to top executives for the first time since 2003, which further reflects the ongoing success of GM's turnaround efforts. Autos have also been in focus after a KeyBanc Capital Markets analyst said Magna International (MGA 75.51 +0.50) has teamed up with a private equity partner to pay between $4.6 bln and $4.7 bln for Chrysler Group (DCX 81.40 +3.80).DJ30 +22.56 NASDAQ -0.60 SP500 +2.22 NASDAQ Dec/Adv/Vol 1355/1448/600 mln NYSE Dec/Adv/Vol 1246/1735/450 mln

DETROIT (AP) -- Shares of DaimlerChrysler AG pushed to a new 52-week high on Friday as speculation swirled that a Canadian auto supplier and a private equity partner would bid for Chrysler, the German company's ailing U.S. arm.

KeyBanc Capital Markets analyst Brett Hoselton said in a note to investors that his sources, whom he did not identify or describe, tell him that Canadian auto supplier Magna International Inc. and a private equity partner have written a joint letter offering to buy Chrysler for $4.6 billion to $4.7 billion.

The talk comes as investors, markets, employees and suppliers have been itching to find out who will buy Chrysler. There have been constant rumors that a suitor will soon make a multibillion-dollar bid.

A company official said, however, that no sale is imminent and no action is expected at the company's annual shareholders' meeting on April 4.

more...
http://biz.yahoo.com/ap/070323/chrysler.html?.v=4

WASHINGTON (AP) -- Mortgage finance giant Freddie Mac, emerging from an accounting scandal, reported Friday it lost $480 million in the fourth quarter as a result of moves in interest rates that hurt its business of guaranteeing home loans.

The fourth-quarter loss by the government-sponsored company, which is the second-largest buyer and guarantor of home mortgages in the country, compared to profit of $684 million in the October-December period of 2005.

For all of 2006, Freddie Mac's earnings edged up to $2.2 billion from $2.1 billion in 2005 as income grew in the loan guarantee business. Earnings per share rose to $2.84 from $2.75 in 2005.

McLean, Va.-based Freddie Mac had previously said it expected a loss for the fourth quarter, with the company's financial results remaining volatile from quarter to quarter.

more...
http://biz.yahoo.com/ap/070323/earns_freddie_mac.html?.v=7

TOKYO (AP) -- General Electric Co. plans to launch a tender offer next week worth up to $1.14 billion for all shares of the financial unit of Japanese electronics maker Sanyo Electric Co., the diversified U.S. industrial, financial services and media conglomerate said Friday.

The acquisition would help GE expand its corporate leasing business in Asia while assisting the troubled Japanese company in its restructuring efforts.

STV Partners, a wholly-owned unit of GE, will offer 3,250 yen ($27.53) for each Sanyo Electric Credit Co. share, GE said in a statement. The tender will begin Monday and be open through May 9.

The board of Sanyo Electric Credit supports the tender offer, it said.

more...
http://biz.yahoo.com/ap/070323/japan_ge_sanyo_electric.html?.v=7

Dow 12,481.01 Up 19.87 (0.16%)
Nasdaq 2,456.18 Up 4.44 (0.18%)
S&P 500 1,436.11 Up 1.57 (0.11%)
10-Yr Bond 4.6130% Up 0.0240
NYSE Volume 2,558,942,000
Nasdaq Volume 1,688,101,000

4:20 pm : For a second straight day, stocks looked rather lethargic as investors again lacked significant data needed to more convincingly support a week of sizable gains.

For the week, the S&P 500 surged 3.5%, logging its best performance in four years, while the Nasdaq turned in a similar performance. However, their minimal gains Friday suggests the sustainability of such a rally, predicated largely on revised Fed language that didn't indicate any imminent rate cut no less, will come in question next week as the first quarter comes to a close and fund managers rebalance their portfolios.

The Dow also closed slightly higher, posting just enough of an advance to turn positive for the year and extend its winning streak to five days; but that was largely due to a 5.5% surge in General Motors (GM 31.99 +1.67) which accounted for 13 of the Dow's 19 point gain. Shareholders applauded news that GM will pay stock bonuses to top executives for the first time since 2003 while autos were also in focus following reports that Magna International (MGA 75.42 +0.41) teamed up with a private equity partner to pay between $4.6 bln and $4.7 bln for Chrysler Group (DCX 82.36 +4.76).

With the Fed recently saying in its policy directive that "the adjustment in the housing sector is ongoing," today's housing data at 10:00 ET was anticipated to set a more definitive tone. Initially, the bulls got what they were hoping for as existing home sales unexpectedly rising 3.9% in February to 6.69 mln, the fastest pace in three years, eased some of the overblown fears of a housing crisis leading to recession. However, the report also greatly reducing the rationale behind the Fed cutting rates anytime soon prompted a reversal in bonds that also took some steam out of equities.

Oil prices climbing back above $62/bbl didn't help matters much either. Fortunately for the bulls, oil closed off its best levels yet offered enough of an incentive for the Energy sector to provide some notable leadership. Crude for May delivery surged amid renewed geopolitical tensions after the British Ministry of Defense confirmed that 15 Naval personnel were seized by Iran. Such worries contributed to a cautionary tone going into the weekend. DJ30 +19.87 NASDAQ +4.44 SP500 +1.57 NASDAQ Dec/Adv/Vol 1431/1593/1.65 bln NYSE Dec/Adv/Vol 1368/1853/1.28 bln

3:30 pm : The Dow and S&P 500 are extending their reach to the upside going into the close, but gains are still modest at best. Sure, the Dow's winning streak remains intact, but a 32-point gain offers little to get overly excited about during what has been a rather quiet day of trading.

It is also worth noting that below average volume offers even less confidence about today's gains carrying over into next week as participation on behalf of buyers today has been limited. The NYSE did not surpass 1.0 bln shares until 20 minutes ago. DJ30 +32.05 NASDAQ +0.92 SP500 +3.01 NASDAQ Dec/Adv/Vol 1395/1601/1.35 bln NYSE Dec/Adv/Vol 1364/1828/1.06 bln

3:00 pm : Investors head into the final hour of trading trying to gain enough momentum to keep sellers from getting in the last word during what has been an impressive performance for the equity markets.

The Dow is up about 3.1% and the Nasdaq is up about 3.5%. The S&P 500, though, is up an even stronger 3.6% for its best weekly performance since March 2003, further underscoring the broad-based nature of this week's rally. DJ30 +27.64 NASDAQ +6.03 SP500 +2.01 NASDAQ Dec/Adv/Vol 1418/1553/1.26 bln NYSE Dec/Adv/Vol 1378/1782/990 mln

2:30 pm : Split industry leadership continues to dictate today's lackluster performance as equities still trade sideways for the most part. Of the five sectors trading higher, Energy (+0.5%) is back in the lead but that's also in sympathy with a safe-haven bid in oil prices going into the close of trading on the NYMEX.

Crude for May delivery look like they'll settle up 1.0% near $62.30/bbl as traders don't want to be short the commodity over the weekend barring a potential conflict with Iran; gasoline futures have hit $2 a gallon (+2.2%), their highest level since Aug 21, 2006. Industrials (+0.3%) now ranks second with the other three sectors trading higher merely struggling to hold onto gains. DJ30 +9.70 NASDAQ +2.53 SP500 +0.11 NASDAQ Dec/Adv/Vol 1485/1495/1.17 bln NYSE Dec/Adv/Vol 1435/1724/912 mln

2:00 pm : Directionless trading still plagues all three indices as stocks remain stuck a relatively narrow range. Mixed market internals further underscore the lack of certainty on both the bullish and bearish side of the aisle.

As reflected in the A/D line, advancers on the NYSE hold a 17-to-14 edge over decliners while advancing and declining issues on the Nasdaq are now evenly matched. The ratio of up to down volume also paints a neutral picture on both the Big Board and the Composite. DJ30 +16.75 NASDAQ -2.28 SP500 +1.30 NASDAQ Dec/Adv/Vol 1494/1453/1.08 bln NYSE Dec/Adv/Vol 1440/1696/836 mln

1:30 pm : The indices continue to languish around the unchanged mark as stocks fail to take advantage of oil slipping to its lowest levels of the session. Crude for May delivery has slipped back below $62/bbl and is retracing morning lows. While that provides some relief for consumers going into the weekend, Energy (+0.2%) subsequently relinquishing most of its intraday gains removes some notable leadership from one of the broader market's only areas of support throughout today's session. The sector was up 1.0% earlier.

Fortunately, oil's pullback is helping a transportation group already benefiting from strength in Railroads, today's best performing S&P industry group (+3.0%). CSX Corp. (CSX 41.28 +1.40) is surging 3.5% after its CEO said he expects a stronger second half in 2007. Union Pacific (UNP 103.88 +3.51) is up 3.5% amid renewed speculation of a takeover. The Industrials sector (+0.4%) now paces the way among the five sectors trading higher. DJ30 +15.35 DJTA +1.4% NASDAQ -3.00 SP500 +0.48 NASDAQ Dec/Adv/Vol 1506/1428/1.00 bln NYSE Dec/Adv/Vol 1364/1751/760 mln

Hmmmm.