STOCK MARKET WATCH, Wednesday April 18

Source: DU

Wednesday April 18, 2007

COUNTING THE DAYS
DAYS REMAINING IN THE * REGIME 642 LONG DAYS
DAYS SINCE DEMOCRACY DIED (12/12/00) 2299 DAYS
WHERE'S OSAMA BIN-LADEN? 2009 DAYS
DAYS SINCE ENRON COLLAPSE = 1969
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 April 17, 2007

Dow... 12,773.04 +52.58 (+0.41%)
Nasdaq... 2,516.95 -1.38 (-0.05%)
S&P 500... 1,471.48 +3.01 (+0.20%)
Gold future... 692.50 -2.00 (-0.29%)
30-Year Bond 4.83% -0.02 (-0.35%)
10-Yr Bond... 4.67% -0.02 (-0.43%)






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

---

Read more: DU

"An Orangey Sky"
BY FRANK BARBERA, CMT

“Substitution-Mass Confusion, Clouds inside your head, -- I can’t feel this way much longer, expecting to survive,---With all these hidden innuendoes, just waiting to arrive” go some of the psychedelic lyrics from the song Bye – Bye Love off the self titled 1978 hit album by The Cars. Well, for anyone looking at the stock market in 2007, it has been a case of “Substitution-Mass Confusion” as yesterday’s trading saw the S&P 500, Russell 2000, and NASDAQ Composite either recording or flirting with new multi-year highs.

Gone are the fears of Sub-Prime defaults, Evaporated the concerns of a slowing Housing market, Transmutated any worries about slowing consumer spending. Substituted instead are ‘happy’ thoughts of a Fed easing and lower interest rates leading to another round of (you guessed it…) Fed credit creation.

As the song continues, “It's such a wavy midnight, and you slip into insane.” Are you feeling confused? Are you feeling bedazzled? Do you know which way is up? Such is the nature of a major market engaged in a primary trend ‘topping process.' The idea is to create confusion and to keep investors off balance. For the large cap institutional monies that are exiting long positions and raising cash, the distribution process is an example of the classic merchandising exercise of creating panic, picking up stock on the cheap, and then selling it out into strength later on. Odds are high that we are in a Distribution Top, meaning the latest round of new highs simply provides enough psychological confidence to create the right backdrop for retail investors ‘to feel good’ about buying back in, in the process facilitating a repositioning of investment portfolios for larger institutional investors. Ah, the poor unsuspecting and confused ‘retail investor’ always trying to find the peanut under the wrong shell.

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

as the numbers went higher and higher and the CNBC cheerleaders maintained their shit-eating grins.


Images of soup kitchens and blocks-long lines leading to unemployment offices kept creeping into my mind.

Woe to the buyers at the end of the line.

musical chairs myself. I actually think we are seeing an end game of pure capitalism. Just like Russia experienced in their bid to go with pure communism.

I worked in my new Army reserve unit's budget office once upon a time and I remember them talking about how the Russian economy was unsustainable (this was before the collapse). Their worlds and rational are what I see now in OUR country. I hope we don't go further in the direction they have chosen.

I watch the Wall Street Weekly Journal, and even Maria is starting to ask some hard question when the cheerleaders start to rah rah. It is so painfully obvious to anyone that has a brain cell between their ears.

After the dot-com bubble burst, the gov't needed to do something to rekindle investments. Interest rates started coming down. Then after 9/11 we started seeing massive increases in Fed debt-buying (and money printing). Then the housing bubble came in and all of a sudden there was a huge new influx of available capital (although it was really intangible capital; more accurately it was more debt).

This shell game cannot last forever, esp. with what David Walker is trying to get across to everyone in that in about 33 years there is only enough money coming in from revenues to pay for Medicare/SS/interest on the debt. Our gov't is about to collapse in less than two generations.

Even in the game of musical chairs somebody's got to pay for the music!

Have you heard back from Rep Paul's office on the true inflation rate? My guess 1.2% would be a bit on the low side.

Roland99, I agree. I get the feeling sometimes that I am in another dimension, sort of like the twilight zone. I guess all a person can do is be prepared for any scenario.

Something happened last evening that I found strange. A couple of my regulars came in for milk replacer for their calves (I work in a gas station/feed store). One gal was upset over the recent cost increase and we talked how in this "booming economy" how it is getting harder for farmers to make ends meet. The other, a guy came in and when we talked about the price going up he said "Yeah, and on the radio, they just told me that there is no inflation".

Maybe the bloom is finally off the rose and people are seeing the numbers are not credible.

For me to truly believe that I'd have to have been doped up and put in a straightjacket.


"They're coming to take me away. Ho ho he he ha ha!"

thus the moniker burf....:spray:.
I have the utmost respect for farm and ranchers. I get my ranch news on my infrequent trips (I call more often)to visit. You will have to give us a feed and ranch story when you can. Like how are the prices of feed and fuel. Are the ranchers selling off? Planting more or less? I wouldn't give a plug nickle for what they say on the radio, but I'd perk my ears when farmers and ranchers come in for coffee and chat.
Hey, I could use more :donut:-is it still fresh. :hi: Welcome to SWT.

Edited to add, Roland, there is extra room in my spider hole. Those guys with the nets are working OT these days :hide:

10:30 AM Crude Inventories 04/13
Briefing Forecast NA
Market Expects NA
Prior 678K

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

VIENNA, Austria - Oil prices fell Wednesday despite expectations that weekly U.S. petroleum inventory figures will show the 10th straight weekly decline in U.S. gasoline stocks, with traders focusing instead on the likelihood that they will also reveal builds in crude supplies. A number of U.S. refinery restarts also eased upward pressure on prices.

Light, sweet crude for May delivery fell 51 cents to $62.59 a barrel on the New York Mercantile Exchange by noon in Europe.

Trading was slow ahead of the May contract's expiration Friday, with many in the market refraining from big bets before the inventory data would be released later Wednesday. Gasoline stockpiles are expected to fall by an average of 1.45 million barrels for the week ended April 13, a Dow Jones Newswires survey of analysts showed.

-cut-

While crude oil stockpiles are seen growing by 500,000 barrels, supplies of distillates, which include heating oil and diesel fuel, are seen falling by 400,000 barrels. Refinery utilization is expected to increase by about 0.4 percent.

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

BAGHDAD, Iraq - Iraq's hotly debated draft oil law is to be sent to parliament "within the coming few days if everything goes well," the Oil Ministry spokesman said on Wednesday.

"The draft is with the State Shura Council now to be put in a legal form after being written in technical language," Assem Jihad told The Associated Press in a phone interview. He gave no date for the bill's introduction.

-cut-

The Iraqi oil legislation, which was endorsed by the cabinet last February, will open the door for the government to sign contracts for exploration and production of the country's vast untapped reserves.

It was designed to create a fair distribution of oil profits to all Iraqis and it is perhaps the most important piece of legislation for Iraq's American patrons.

http://news.yahoo.com/s/ap/20070418/ap_on_re_mi_ea/iraq_oil_law_2

http://www.bloomberg.com/apps/news?pid=20601085&sid=a0bsMii8oKXw&refer=europe

April 18 (Bloomberg) -- Russia plans to build the world's longest tunnel, a transport and pipeline link under the Bering Strait to Alaska, as part of a $65 billion project to supply the U.S. with oil, natural gas and electricity from Siberia.

The project, which Russia is coordinating with the U.S. and Canada, would take 10 to 15 years to complete, Viktor Razbegin, deputy head of industrial research at the Russian Economy Ministry, told reporters in Moscow today. State organizations and private companies in partnership would build and control the route, known as TKM-World Link, he said.

A 6,000-kilometer (3,700-mile) transport corridor from Siberia into the U.S. will feed into the tunnel, which at 64 miles will be more than twice as long as the underwater section of the Channel Tunnel between the U.K. and France, according to the plan. The tunnel would run in three sections to link the two islands in the Bering Strait between Russia and the U.S.

``This will be a business project, not a political one,'' Maxim Bystrov, deputy head of Russia's agency for special economic zones, said at the media briefing. Russian officials will formally present the plan to the U.S. and Canadian governments next week, Razbegin said.

The Bering Strait tunnel will cost $10 billion to $12 billion and the rest of the investment will be spent on the entire transport corridor, the plan projects.

Siberian Commodities

The tunnel would contain a high-speed railway, highway and pipelines, as well as power and fiber-optic cables, according to TKM-World Link. Investors in the so-called public-private partnership include OAO Russian Railways, national utility OAO Unified Energy System and pipeline operator OAO Transneft.

/...

:tinfoilhat:



:rofl:

the Nigerian presidential elections may be this weekend. If they are watch the gas prices. Be sure to fill up during the early part of the weekend just in case.

Edited to add they are scheduled for the 21st but they are trying to get them postponed. It is chaos there.

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

Last trade 81.642 Change -0.197 (-0.24%)

Dollar Plunges Deeper Into Declines As Inflation Slows

http://www.dailyfx.com/story/currency/eur_news/Dollar_Plunges_Deeper_Into_Declines_1176829265327.html

The dollar took another beating Tuesday as the key US economic releases for the session failed to generate the same bullish sentiment surrounding economies like the Euro Zone and UK. Now the greenback is left in a precarious position with no critical data scheduled for the rest of the week while the majors are making fresh anti-dollar multi-year highs.

For fundamental and technical traders Tuesday, the top mover was obviously GBPUSD which broke the psychological 2.0000 level for the first time in 15 years on a near 200 point rally from overnight lows. Initially, the early dollar losses against the pound were isolated to the individual pair; but weak data from the US coffers quickly helped the other majors to play catch up. From an overnight a 30-point overnight range, EURUSD broke higher to put in a new high just below 1.3000. On the other hand, USDCHF was working on declines from the Asian session that totaled 90 points and challenged Friday’s low with a spike at 1.2065. Finally, USDJPY was working with the same anti-dollar momentum on a turn off of a 119.90 high that has sufficiently cleared out a number of technical levels.

Fundamentals continue to shape a stabilizing US economy; and under normal circumstances, a settling of economic volatility is encouraging. However, with the currencies like the British pound, euro and Japanese yen looking to benefit from rate hikes in the near future; the greenback is starting to loose its appeal in the global market. Today’s Consumer Price Index played a pivotal role in this developing outlook by tempering inflation pressures and dimming spotty speculation that the Fed may pursue another rate hike in the future. From the numerous calculations the Labor Department makes on the data, the core number shone brightest by cooling to a 2.5 percent annual pace in March from 2.7 percent the month before. The slowest pace in ten months, the deceleration clearly supports the Fed’s beliefs that inflation will continue to normalize at current rates. At the same time, the headline numbers may help to keep the Board of Governors’ hands tied on rate cuts for now. Headline inflation heated up to a 2.8 percent pace last month from 2.4 percent, in line with expectations. The key component of the pick up was clearly the 10 percent jump in gasoline prices for the period that has the duel effect of diverting income from discretionary spending.

Aside from the inflation indicators, the remainder of the day’s releases focused on growth. Ironically, the other indicators put the spot light on two of the economy’s biggest trouble areas: housing and manufacturing. The housing numbers managed to best expectations and support speculation that a bottom in the sector is in place after the biggest contractions in 15 years. Both housing starts and permits last month rose 0.8 percent to 1.518 million and 1.544 million respectively. At the same time, economists and traders are not turning to full-blown optimism on the news. The March numbers where heavily influenced by the warmer temperatures over the period. At the same time, mortgage defaults and repercussions, through regulation following the sub-prime crunch, will likely weigh on homes in the future. On the other hand, the industrial production figure for the same month is once again raising a bearish flag on the manufacturing sector. Following the dip in the ISM factor number, the 0.2 percent contraction in today’s activity indicator has lowered the bar on rebound expectations. Looking ahead, the calendar grows cold and only a few key Fed speeches will dot the landscape.

...more...

Euro Inching Towards Record Highs as US Data Disappoints

http://www.dailyfx.com/story/dailyfx_reports/daily_fundamentals/Euro_Inching_Towards_Record_Highs_1176844533151.html

US Dollar- Strong data hasn’t helped the US dollar and today, weak data has actually hurt it. Headline consumer prices accelerated in the month of March, but core prices grew less than expected. The one tenth of a percentage point disappointment was enough for bears to pounce on the dollar once again. Combine that with the drop in industrial production in the month of March and it is hardly surprising that the US dollar reversed all of yesterday’s gains against the Japanese Yen and extended its losses against the Euro, British pound, Australian, New Zealand and Canadian dollars. Furthermore the market completely shrugged off the stronger housing market data and the continued rally in the Dow Jones Industrial Average, which exceeded its all-time closing high. In the past, USD/JPY and the Dow have moved in lockstep with the currency pair often acting as a leading indicator for the movements in the stock market. Therefore today’s exhaustion in nearly all of the Yen pairs including USD/JPY could actually be signaling a potential exhaustion in the Dow. Meanwhile with no more significant US data due on the calendar this week, there is nothing standing in the way of further losses. Whether this happens or not will be dependent upon how much momentum there is left in the Euro and British pound rally and whether carry trades are just pausing today or preparing for a turn. The US dollar and the health of the US economy are secondary at the moment as the stance of the Federal Reserve is crystal clear. They have zero flexibility to raise rates to combat inflation or to lower rates to spur growth. For the time being, we have no reason to believe that the demand for carry trades has hit their peak, but tonight we have New Zealand consumer prices which could be the key to determining whether these trades continue. As one of the most sought after currencies in the latest carry trade wave, the consumer price release will either confirm or deny the Reserve Bank of New Zealand’s need to raise interest rates.

...more...

http://www.khaleejtimes.com/DisplayArticleNew.asp?xfile=data/business/2007/April/business_April445.xml§ion=business&col=

LONDON (Reuters) - The dollar fell to a 26-year low against sterling and neared an all-time trough versus the euro on Wednesday as expectations of US rate cuts contrasted with prospects for monetary tightening in other countries.

The greenback was down across the board, hitting a 22-year low versus the New Zealand dollar on Wednesday and holding near Tuesday’s 17-year low against the Australian dollar.

The fall in the dollar was exacerbated by below-forecast US core consumer prices for March released on Tuesday.

The US data contrasted sharply with a jump in UK consumer prices that stoked expectations for a rate hike, driving sterling above $2 for the first time since 1992 when Britain was forced to exit the Exchange Rate Mechanism, and then higher still to levels last seen in 1981.

“The focus is on the importance of yield and the anti-inflationary stance of some economies, which has led investors to seek out high yielding currencies like the pound,” said Simon Derrick, head of FX research at Bank of New York.

The euro is also closing in on historic highs versus the dollar, rising above $1.3600 for the first time in two years and coming within 60 ticks of record peaks set in December 2004.

”I think we will see the euro moving beyond $1.37, its all time high,” said Michael Klawitter, currency strategist at Dresdner Kleinwort in Frankfurt.

”Rate differentials between the dollar and the euro on a longer and shorter term basis are continuing to favour a stronger euro.” he added.

By 1141 GMT, the euro was at $1.3600, slightly down from its peak of $1.3616, but up around 0.2 percent on the day and within sight of record peaks around $1.3670.

/...

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

April 18 (Bloomberg) -- The Swiss franc gained for a second day as a drop in European stock markets discouraged purchases of riskier assets funded by currencies with low interest rates.

The franc fell 1.8 percent to a record low versus the euro in the past month as investors used it to fund so-called carry trades. The currency rebounded April 16 after central bank President Jean-Pierre Roth said its drop didn't reflect the strength of Switzerland's economy.

``It's to do with global risk appetite,'' said Marcus Hettinger, a currency strategist at Credit Suisse Group in Zurich. ``When equity markets are falling, there's profit-taking on the carry trade and that strengthens the franc.''

Against the euro, the franc gained to as high as 1.6361 and was at 1.6362 by 1:50 p.m. in Zurich, from 1.6397 late yesterday. It fell to a record low 1.6465 against Europe's common currency April 16. The franc gained 0.4 percent versus the dollar to recently trade at 1.2038.

...

The Swiss National Bank last month raised its main lending rate to 2.25 percent from 2 percent and said it will ``probably'' have to raise it further. The rate is the lowest among major economies behind Japan, which last week held borrowing costs at 0.5 percent.

/...

http://www.bloomberg.com/apps/news?pid=20601083&sid=aJej7p62I5HU&refer=currency

April 18 (Bloomberg) -- The yen advanced versus the dollar and euro on speculation inflation may accelerate in Japan, encouraging traders to exit bets on the currency's decline.

Japan's currency gained against all of the most active currencies after Reuters, citing Bank of Japan sources, reported the central bank is likely to say in an April 27 report that core consumer prices will rise at a faster pace. Japan's interest rates, the lowest among major economies, have encouraged investors to buy higher-yielding assets funded by loans in the yen, a practice known as the carry trade.

``The perception is that if we start to see signs of inflation, the BOJ will be pushed to raise rates,'' said Michael Malpede, a senior currency analyst in Chicago at Man Global Research. ``The risks of carry trade are increasing in the short term. People are covering short yen positions.'' A short is a bet on a currency's decline.

The Japanese currency rose 0.44 percent to 118.39 per dollar at 9 a.m. in New York and advanced 0.35 percent to 160.76 per euro, rebounding from a seven-week low of 119.87 per dollar and a record low of 162.43 per euro set April 16.

/..

The US dollar and the health of the US economy are secondary at the moment as the stance of the Federal Reserve is crystal clear. They have zero flexibility to raise rates to combat inflation or to lower rates to spur growth.

Down to the one-trick pony --- lie about the stats. Hmmmm....:freak:

Been flirtin with disaster,
Y'all know what I mean.

And the way we run our lives,
It makes no sense to me.

I dont know about yourself or,
What you want to be - yeah.

When we gamble with our time,
We choose our destiny.

54anickle (love the artwork). Roland what is that from...on the tip of my tongue

:)


Flirting with Disaster

:headbang:

NEW YORK - Stocks pointed to a lower opening Wednesday, as a mixed batch of earnings reports prompted some traders to take profits after two weeks of gains in the Dow Jones industrials.

Wall Street will likely be focusing on the technology sector Wednesday, after Yahoo Inc. (Nasdaq:YHOO - news) disappointed investors late Tuesday by posting a surprising 11 percent drop in its first-quarter profit. Also causing investors to shudder, International Business Machines Corp. indicated late Tuesday in its earnings report that U.S. sales are poor, and Motorola Inc. on Wednesday reported a loss in the first quarter, hurt by lower-than-expected mobile phone sales and charges.

Not all news was bad on the technology front: chip maker Intel Corp.'s profit surpassed expectations late Tuesday.

Also, the Dow components — 13 of which report earnings this week — have been mostly beating the Street's predictions. On Wednesday, JPMorgan Chase & Co. reported a 55 percent jump in profits that far surpassed Wall Street's expectations, while United Technologies Corp. also reported a profit rise that beat forecasts.

http://news.yahoo.com/s/ap/20070418/ap_on_bi_st_ma_re/wall_street

SAN FRANCISCO - A flood of last-minute tax filers swamped the servers of the company that makes the popular TurboTax and ProSeries tax software Tuesday, forcing taxpayers to wait hours for confirmation that their electronic returns had been submitted successfully.

A record number of returns from both individual taxpayers and accountants started causing delays in Intuit Inc.'s e-filing system early Tuesday, and the problem got worse as the midnight deadline for getting forms to the
Internal Revenue Service approached, said Harry Pforzheimer, a company spokesman.

"The amount of filing that has been done today has been absolutely amazing, and we are doing everything we possibly can to expand capabilities of servers," Pforzheimer said. During times of peak of demand, Intuit was processing 50 to 60 returns per second, he said.

http://news.yahoo.com/s/ap/20070418/ap_on_bi_ge/turbotax_trouble

;)

:donut: and lurkers. I have some problems so I had to go through a CPA. I went to him on Monday and we filed an extension. Poor guy looked exhausted. He is a sweetie. I asked him how his health was. He said it was ok. I told him he couldn't die until we go this mess with the IRS settled. I then offered to get him a healthy snack. Folks in his office are a hoot.

Speaking of criminal activity (and the IRS is organized crime), we had some terrifying moments at a busy freeway and street intersection during the noon hour. Seems some coyotes (illegal immigrant smugglers) tried to kidnap another coyotes. It resulted in lots of bullets flying and folks ducking in their cars and hitting the pavement. I am afraid with the advent of more gangs, we will be seeing more of this. That is the area that hubby and I moved from after we were robbed for the second time at gunpoint. We are seeing an increase all through south Texas. I think kidnappings and death squads are not to far behind.

Freeway gun battle ends in death
One killed, two hurt when human smugglers clash

Police worked into the evening in an attempt to sort out what happened at the "chaotic" scene, which also ensnared an innocent bystander, left at least one other person critically injured and tied up traffic for hours.

It was hardly the city's first smuggling-related violence. For decades, Houston has been considered a major distribution hub for human traffickers, who sometimes hold immigrants in "stash houses" while family members try to raise thousands of dollars for their release.

Last April 24, one man was wounded in a shootout at a house in northwest Houston in what federal authorities described as an apparent battle between rival smugglers over control of the immigrants. Police found 10 Mexicans, three Hondurans and two Guatemalans in a locked closet inside.

A month earlier, gunfire erupted at a southwest Houston neighborhood, and two men were wounded in an apparent turf war between rival smugglers. Twenty-one immigrants were arrested at that house.



http://www.chron.com/disp/story.mpl/metropolitan/4724950.html




Happy hunting and watch out for the bears.

http://www.bloomberg.com/apps/news?pid=20601080&sid=a65Oi3haiERw&refer=asia

...

The Morgan Stanley Capital International Asia-Pacific Index added 0.9 percent to 149.07 as of 4:16 p.m. in Tokyo, erasing all its losses from a global sell-off that began Feb. 27. Melbourne-based Orica, the world's largest maker of explosives, was the top gainer among the benchmark's 1,067 members.

The S&P/ASX 200 Index rose 0.8 percent to 6236.90, an all- time high, in Australia, while China's CSI 300 Index gained 0.7 percent. Japan's Nikkei 225 Stock Average added 0.8 percent. Malaysia, the Philippines and Thailand were the only markets to fall in the region. Singapore was little changed.

Toyota Motor Corp. and Taiwan Semiconductor Manufacturing Co. led exporters higher after U.S. reports showing a slowdown in inflation and an unexpected pickup in housing starts eased concern growth in the world's largest economy is faltering.

/...

http://www.bloomberg.com/apps/news?pid=20601080&sid=aA2xXBOYFtGk&refer=asia

April 18 (Bloomberg) -- Shares of Advanced Semiconductor Engineering Inc. rose after U.S. buyout firm Carlyle Group withdrew a bid to buy the world's largest chip-packager and tester because the Taiwan company said the offer was too low.

The stock climbed 3.2 percent to NT$42.30 at the end of trading in Taipei, after rising by the daily 7 percent limit. The benchmark Taiex index added 0.6 percent. The purchase plans were canceled after an Advanced Semiconductor evaluation committee said the offer of NT$39.50 ($1.19) a share undervalued the company.

Carlyle, based in Washington, said last week it plans to buy chip companies in Japan because the nation's industry ``offers a favorable environment.'' Kaohsiung, Taiwan-based Advanced Semiconductor's shares have risen 16 percent since its Chairman Jason Chang and Carlyle announced on Nov. 24 they intended to jointly buy the company.

``The takeover bid was too low, so it's been like a cap on ASE's share prices,'' said Eric Chou, a fund manager at Jih Sun Securities Investment Trust Co. in Taipei, which oversees $1.8 billion in assets including Advanced Semiconductor shares. ``The withdrawal will allow the market to determine ASE's value.''

/...

http://www.bloomberg.com/apps/news?pid=20601085&sid=a4pNhlkcKZM4&refer=europe

April 18 (Bloomberg) -- European stocks fell for the first time in four days after earnings from U.S. companies including Yahoo! Inc. and International Business Machines Corp. disappointed investors.

...

The Dow Jones Stoxx 600 Index dropped 0.6 percent to 385.62 at 2:34 p.m. in London, falling from its highest since October 2000. The Stoxx 50 slipped 0.4 percent and the Euro Stoxx 50, a measure for the 13 nations sharing the euro, lost 0.7 percent.

...

``There comes a time when the market has to take into account profits and reality,'' said Jean Borjeix, an adviser to Oddo et Cie. in Paris, which oversees more than $16 billion.

National benchmarks declined in 14 of the 18 western European markets. The U.K.'s FTSE fell 0.7 percent. France's CAC 40 lost 0.4 percent and Germany's DAX slid 1.2 percent.

/...

(edit to highlight :evilgrin:
'Bye for now... I hope everyone here's noticed this thread, BTW: http://www.democraticunderground.com/discuss/duboard.php?az=view_all&address=389x678886#683508 )

thanks for the juicy thread. I skimmed over and bookmarked it for later.:hi:

http://mwprices.ft.com/custom/ft2-com/html-story.asp?pulse=true&siteid=ft&dist=ft&guid=%7Badf40606%2D2dbe%2D43b6%2D8e4b%2D707f6889c637%7D

European equities were lower on Wednesday as interest rate concerns dominated, while falling energy stocks, overshadowed the latest bid talk from the banking sector. The FTSE Eurofirst 300 closed down 0.5 per cent at 1,565.3, Frankfurt’s Xetra Dax shed 0.9 per cent to 7,282.3, the CAC 40 in Paris lost 0.4 per cent to 5,835.9 and London’s FTSE 100 slid 0.7 per cent to 6,449.4. French bank Societe Generale rose 4 per cent to €144.96 on rumours that UniCredit, the Italian lender, was preparing a takeover. UniCredit shares fell 0.9 per cent to €7.35. US crude oil prices fell back below $63 a barrel and hit oil companies. France’s Total lost 0.6 per cent to €54, Norway’s Statoil was 1.2 per cent lower at NKr166.25, and Austria’s OMV fell 1.9 per cent to €46.50. ASML, the Dutch maker of chip manufacturing equipment, rose 5.1 per cent to €20.10 after reporting a fall in first-quarter net profit that was less severe than expectations. Roche, the Swiss drugmaker, rose 3.1 per cent to SFr229.90 after its 16 per cent rise in first-quarter sales, thanks to robust growth in cancer and flu treatments, prompted the company to raise its full-year outlook

http://www.ocregister.com/ocregister/money/subprime/article_1653527.php

Last year, as Brad Morrice prepared to become chief executive of New Century Financial Corp., his message to shareholders was unintentionally prophetic when he explained what typically causes lenders to fail.

"The history of the mortgage business generally suggests that companies that run into big trouble and, in some cases go out of business, don't do that because they run out of customers," he said at the company's annual meeting last May. "They do it because they run out of money."

Not quite a year later, Morrice fought back tears on the morning of April 2 as he told employees that the company he co-founded and helped build into the nation's second-largest subprime lender had run out of money.

more at link...

http://www.whiskeyandgunpowder.com/Archives/2007/20070416.html

Although I read and collect information and ideas every day, whenever the day comes each month when I actually have to start writing this report, the words of Gene Fowler (an extremely successful screenplay, sports, and humorous writer) come to mind: "Writing is easy. All you do is stare at a blank sheet of paper until drops of blood form on your forehead."

On these occasions, I then usually turn to works of science, politics, history, or philosophy in the hope of calming down and finding some inspiration. Since so many investors look to investment advisers such as myself, whom they often call "gurus", for guidance on the future of the markets, I think it is appropriate to remind my readers of these words of Lao Tzu (the sixth-century Chinese sage): "Those who have knowledge, don't predict. Those who predict, don't have knowledge."

snip...

As an investor looking for guidance from newsletters, blogs, financial publications, and conferences, I would also be mindful of Ralph Waldo Emerson's words: "Do not go where the path may lead; go instead where there is no path and leave a trail." Unfortunately, in today's high-liquidity driven global investment environment, I find it hard to identify an asset class "where there is no path". There are far too many smart - and not so smart - treasure hunters who have bid up every imaginable investment class right around the world. It is only in the most unusual places that I can find true value (often, however, in assets that are difficult to invest in), as opposed to relative values, which certainly do exist. The problem for investors is that, as the German theologian Dietrich Bonhoeffer wrote, "If you board the wrong train, it is no use running along the corridor in the other direction." (Bonhoeffer opposed Nazism and was executed in prison for his involvement in a plot to overthrow Hitler.)

more at link...

a treasure trove of quotes. And some intriguing advice. These get bookmarked for further study too. I am so slow at understanding these things but I really think that is a blessing. I don't believe things at first blush and keep after it til I do understand. I'll chew on these bones this weekend. Thanks Mojave

NEW YORK (AP) -- JPMorgan Chase & Co. reported a 55 percent surge in first-quarter profit, reflecting strength across most of its primary businesses lines, especially investment banking.

Still, the report on Wednesday from the nation's third-largest bank showed some softness in its retail banking and credit card divisions. The bank also said it increased reserves to offset subprime mortgage losses -- a step several other major financial institutions have taken.

The results were well ahead of Wall Street expectations, and JPMorgan Chase's shares rose $2.10, or more than 4 percent, to $52.28 in midday trading on the New York Stock Exchange. That surpassed the previous 52-week trading high of $51.95.

The New York-based bank said net income totaled $4.8 billion, or $1.34 a share, in the January-March period, up from $3.1 billion, or 86 cents a share, a year earlier. The results were boosted by an 11 cent accounting change.

more...
http://biz.yahoo.com/ap/070418/earns_banks.html?.v=3

CHICAGO (AP) -- Motorola Inc. posted its first quarterly loss since 2004 on Wednesday as dismal sales continued to vex the struggling cell phone maker.

Worse still, the company said its misfortunes would continue through the second quarter.

Blaming disappointing sales of mobile phones, as well as expenses to cover a legal settlement, restructuring efforts and an acquisition, the telecommunications equipment maker said it lost $181 million, or 8 cents per share, in the first three months of 2007. That compares with a profit of $686 million, or 27 cents per share, during the same period a year earlier.

Those results met Wall Street's drastically lowered expectations, which followed a warning last month that sales at the world's No. 2 cell phone maker would fall more than $1 billion short of previous projections.

more...
http://biz.yahoo.com/ap/070418/earns_motorola.html?.v=16

NEW YORK (AP) -- Apparel retailers' stocks closed mostly lower on Wednesday, though positive analyst comments helped lift teen apparel retailer Hot Topic Inc. and women's clothier Coldwater Creek Inc.

Hot Topic shares gained 41 cents, or 3.7 percent, to end at $11.54 on the Nasdaq Stock Market, after A.G. Edwards & Sons analyst Robert F. Buchanan said the company's inventory control was improving and upgraded the stock to "Hold" from "Sell."

Meanwhile, Coldwater Creek shares rose 56 cents, or 2.6 percent, to close at $22.31 on the Nasdaq, as CIBC World Markets Corp. analyst Roxanne Meyer said she expects the company to gain traction in 2007 on the strength of new merchandise and an improved customer experience. She raised her price target to $27 from $25.

Shares declined in much of the rest of the sector. Here is how some New York Stock Exchange-listed apparel retailers finished Wednesday:

Gap Stores Inc. shares fell 7 cents to $18.64,

more...
http://biz.yahoo.com/ap/070418/sector_glance_apparel_sellers.html?.v=1

NEW YORK (AP) -- Major Internet stocks traded mostly lower on Wednesday, as disappointing quarterly results from Yahoo Inc. caused some analyst apprehension and pulled the sector down.

Yahoo shares dropped $3.78, or 11.8 percent, to close at $28.31 on the Nasdaq Stock Market Wednesday. During the past year, the stock has traded between $22.65 and $34.09

On Wednesday, several analysts kept their ratings but expressed concerns ranging from Yahoo's need to spend to keep up with rivals, to its ability to profit from new partnerships and management changes.

Here's how the key Internet stocks did Wednesday:

Amazon.com Inc., down 8 cents to $44.99

more...
http://biz.yahoo.com/ap/070418/sector_glance_internet.html?.v=1

NEW YORK (AP) -- Chemical producer stocks ended mixed Wednesday, after Dow Chemical Co. said it will form a joint venture in Libya to operate and expand a petrochemical complex.

Libya is trying to attract foreign investment to its economy, and Dow said it's the first global chemical company to participate in such development of its petrochemical industry.

Celanese Corp., meanwhile, said a subsidiary is forming a joint venture in China to make neodecanoic acid, which is used to make a range of applications, such as coatings and adhesives.

Here is how some chemical companies finished in New York Stock Exchange trading:

Dow Chemical, slipped 22 cents to end at $45.30.

more...
http://biz.yahoo.com/ap/070418/chemicals_sector_glance.html?.v=1

NEW YORK (AP) -- Shares of telecom companies were mixed Wednesday after Motorola Inc. reported its first quarterly loss since 2004 due to lower mobile phone sales and a slew of charges.

Motorola already had preannounced a disappointing quarter. The company's revenue exceeded Wall Street's expectations, which have been lowered significantly since the company issued its warning in March.

Chairman and CEO Ed Zander once again called the performance of Motorola's mobile device business "unacceptable." Nonetheless, investors pushed the company's shares higher.

Elsewhere in the sector, shares of Vonage Holdings Corp. continued their decline a day after the troubled Internet telephone company said its legal battle with Verizon could block it from offering its services and possibly lead to bankruptcy or its liquidation.

Here is how some key telecom stocks

AT&T Inc., down 22 cents to $38.97

more...
http://biz.yahoo.com/ap/070418/sector_glance_telecom.html?.v=1

NEW YORK (AP) -- Shares of mixed-signal analog processor makers jumped Wednesday after Linear Technology Corp. announced an aggressive stock buyback plan.

The $3 billion buyback sent shares of Linear rocketing in Wednesday's session, even though the company also posted an 11 percent decline in third-quarter earnings.

Friedman Billings Ramsey analyst Chris Caso, who has a "Market Perform" rating on the stock, thinks the repurchase program will significantly improve the company's capital structure.

At least one analyst speculated that some of Linear's peers, such as Analog Devices Inc., Intersil Corp., Maxim Integrated Products Inc., and National Semiconductor, could follow suit.

more...
http://biz.yahoo.com/ap/070418/sector_glance_semicondcutors.html?.v=1

NEW YORK (AP) -- Shares of alcohol companies were mixed Wednesday after Goldman Sachs analyst Marc Kandel released his 2007 beverage industry trends report. In the research sent to investors, Kandel said although beer remains the most popular and fastest growing alcoholic segment in the world, the spirits industry is gaining market share. The demand for beer remains far higher on a global level than in the U.S., where demand is growing at less than 1 percent a year.

Here is how some key alcohol stocks did on Wednesday:

Anheuser-Busch Cos., down 35 cents to $52.14

Molson Coors Brewing Co., up $1.36 to $97.12

more...
http://biz.yahoo.com/ap/070418/sector_glance_alcohol.html?.v=1

NEW YORK (AP) -- Shares of hotel companies were mostly lower Wednesday even as private real estate investor the Lightstone Group said it will buy Extended Stay Hotels from the Blackstone private equity group for $8 billion.

Extended Stay Hotels -- the biggest owner of mid-priced extended-stay hotels -- owns 683 properties with 76,000 rooms in 44 states across the U.S. and in Canada.

The transaction is expected to close in about two months.

Separately, a report from Smith Travel Research said revenue per available room, a key measure of lodging performance, rose 14.2 percent in the past week, getting a boost from the timing of the Easter holiday.

more...
http://biz.yahoo.com/ap/070418/sector_glance_hotels.html?.v=1

NEW YORK (AP) -- Shares in many of the nation's big-format stores, including department stores and discounters, fell slightly, giving back some gains from earlier in the week.

Wal-Mart Stores Inc., the worlds largest retailer, said it would tout its environmentally friendly products such as light bulbs and organic cotton pajamas, a day after home-improvement retailer Home Depot Inc. said it would put labels on such products in its U.S. stores. Both retailers' share movements were muted.

Here is how some key big-format stores fared Wednesday:

Wal-Mart Stores Inc., down 20 cents to $47.97

more...
http://biz.yahoo.com/ap/070418/sector_glance_big_stores.html?.v=1

CHICAGO (AP) -- Soybean futures declined and grains finished mixed Wednesday on the Chicago Board of Trade.

Wheat for May delivery fell 3 cents to $4.74 1/2 a bushel; May corn rose 10 1/4 cents to $3.63 1/2 a bushel; May oats rose 1 1/4 cent to $2.68 1/4 a bushel; May soybeans fell 8 1/2 cents to $7.15 1/2 a bushel.

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

June live cattle fell .45 cent to 92.82 cents a pound; May feeder cattle fell 1.05 cent to $1.0830 a pound; May lean hogs fell .60 cent to 75.80 cents a pound; May pork bellies rose .05 cent to $1.0320 a pound.

more...
http://biz.yahoo.com/ap/070418/board_of_trade.html?.v=3

NEW YORK (AP) -- Linear Technology Corp.'s $3 billion stock buyback program lifted the Standard & Poor's 500 Index Wednesday while integrated circuit makers rallied.

Linear plans to buy back $3 billion of its stock, representing almost a third of the company's $9.6 billion market value. The company also posted inline quarterly results that boosted the sector.

Linear Technology's stock surged $3.92, or 12 percent, to end at $36.04 on the Nasdaq Stock Market.

The S&P 500 Index ended up 1.02 to 1,472.50.

more...
http://biz.yahoo.com/ap/070418/s_p_500_laggards.html?.v=1

NEW YORK (AP) -- Aerospace company Boeing Co. reached an all-time high and was the largest gainer Wednesday on the Dow Jones industrial average.

The Seattle Post-Intelligencer reported that an unnamed buyer ordered 30 787 Dreamliner aircraft worth $5.4 billion at list prices, and Dow Jones reported Air Arabia will choose Boeing or Airbus SAS to fill an order of at least 34 aircraft.

The stock rose $3.43, or 3.8 percent, to end at $93.88 on the New York Stock Exchange, and peaked at an all-time high of $94.17 during the session.

The 30-stock index closed up 30.80, at 12,803.84, the first time the index has closed above 12,800. The index hit a trading record of 12,838.46 during the trading day.

more...
http://biz.yahoo.com/ap/070418/djia_laggards.html?.v=1

NEW YORK (AP) -- The Nasdaq 100 declined Wednesday, as Yahoo Inc.'s disappointing first-quarter report weighed on results.

The Nasdaq 100, which includes 100 of the largest nonfinancial securities traded on the Nasdaq Stock Market, fell 2.52 points to 1,832.39. The broader Nasdaq composite gave up 6.45 points to 2,510.50.

Yahoo was the index's top decliner, giving up $3.78, or 11.8 percent, to $28.31. The Internet search engine operator posted first-quarter earnings and sales that fell below analyst expectations.

Travel reservations Web site operator Expedia Inc. dropped 56 cents, or 2.3 percent, to $23.64, as other Internet companies moved lower on Yahoo's report.

more...
http://biz.yahoo.com/ap/070418/nasdaq_100_laggards.html?.v=1

Dow 12,803.84 Up 30.80 (0.24%)
Nasdaq 2,510.50 Down 6.45 (0.26%)
S&P 500 1,472.50 Up 1.02 (0.07%)
10-Yr Bond 4.654% Down 0.034
NYSE Volume 2,973,713,000
Nasdaq Volume 2,122,164,000

4:20 pm : The indices finished mixed for a second straight day and, in similar fashion to Tuesday's performance, the bulk of buying interest was dictated by gains in just a handful of blue chips. The Dow closed at an historic high, but all three major averages finished the day well off their best levels of the session.

A day after a tame read on consumer inflation and solid earnings from two Dow components helped the index briefly eclipse its all-time closing high of 12,786.64, the absence of any potentially troubling economic data and two more of the Dow 30 announcing upbeat quarterly results, alongside some other upbeat blue-chip news, helped power the Dow to its best finish ever.

As evidenced by the 1.0% rally in Financials, a nearly 4% surge in shares of Dow component JPMorgan Chase (JPM 52.07 +1.89) was the biggest story of the day. The financial services giant soared to a six-year high after handily beating analysts' expectations with record results, authorizing a $10 bln buyback, and raising its dividend for the first time in six years. Its report helped renew enthusiasm throughout the recently beaten-down and heavily-weighted Financials sector.

The only other influential sector attracting buyers, and telling the rest of the story behind today's move into uncharted territory for the Dow, was Industrials.

Boeing (BA 93.88 +3.43) surged almost 4% to an all-time high following reports it is the sole bidder for a $2.5 bln South Korean fighter contract. Fellow Dow component Caterpillar (CAT 69.48 +1.82) climbed almost 3% on the back of an analyst upgrade two days before it reports earnings. Boeing's gain alone accounted for almost the entire gain on the Dow.

Technology was also in focus after Dow component Intel (INTC 21.37 +0.39) kicked things off last night with its Q1 report. Intel, a suggested holding in the Briefing.com Active Portfolio, posted an in-line report and revenues were a bit light; but management raising gross margin guidance for the full year helped restore investor confidence in its leadership position. Also helping Semiconductors turn in one of the day's best performances was Linear Technology (LLTC 36.05 +3.93), which soared 12% as shareholders applauded its $3 bln stock buyback program.

However, given such high expectations being priced into Yahoo! (YHOO 28.31 -3.78) shares of late, first quarter results falling short of forecasts on both the top and bottom lines revived worries that estimates for the tech sector are still overly optimistic. IBM (IBM 94.82 -2.30) was another tech blemish after an in-line report. Its CFO saying the U.S. market showed signs of weakness prompted multiple analyst downgrades. The 2.4% decline on the Dow's highest priced stock offset what was shaping up to be an even stronger record performance for the price-weighted index. DJ30 +30.80 NASDAQ -6.45 SP500 +1.02 NASDAQ Dec/Adv/Vol 1797/1228/2.10 bln NYSE Dec/Adv/Vol 1850/1414/1.58 bln

http://www.bloggingstocks.com/2007/04/18/jp-morgan-who-needs-consumer-banking/

The mortgage business may be doing poorly and credit card default rates may rise since people can no longer tap home equity, but JPMorgan Chase & Co. (NYSE: JPM) does not appear to care. Nor should it.

Revenue at the big bank rose 25% to $18.97 billion in the first quarter. Net income was up about 55% to $4.8 billion.

The improvement came in the investment banking and private equity areas. Growth from retail banking was lackluster and credit card revenue was down.

Investment banking revenue rose to $6.8 billion from $4.8 billion and net income for the group was up 81% to $1.5 billion. The engines for the increase were private equity transactions and debt and equity underwriting.

The company now trades at a 52-week high of $51.95.

The risk to JPMorgan is that demand for investment banking will slow. The shares have already had a good run, gaining 45% over the past two years, compared with a 16% increase at Bank of America Corp. (NYSE: BAC) and a 15% jump at Citigroup Inc. (NYSE: C).

If the private equity environment and underwriting businesses soften due to a falling stock market or higher interest rates, JPMorgan's stock could go down as fast as it went up. It happened in 2002, and it was bloody.

Sooooo, just in case they're doing a buy back? That's gonna make the P/E ratio and the return on assets/equity numbers still look pretty sweet should the proverbial shit hit the fan. Wonder what the timing for the buyback looks like? :shrug: :freak: