STOCK MARKET WATCH, Tuesday April 24

Source: DU

Tuesday April 24, 2007

COUNTING THE DAYS
DAYS REMAINING IN THE * REGIME 636 LONG DAYS
DAYS SINCE DEMOCRACY DIED (12/12/00) 2305 DAYS
WHERE'S OSAMA BIN-LADEN? 2015 DAYS
DAYS SINCE ENRON COLLAPSE = 1975
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

---

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 23, 2007

Dow... 12,919.40 -42.58 (-0.33%)
Nasdaq... 2,523.67 -2.72 (-0.11%)
S&P 500... 1,480.93 -3.42 (-0.23%)
Gold future... 694.20 -1.60 (-0.23%)
30-Year Bond 4.83% -0.02 (-0.35%)
10-Yr Bond... 4.65% -0.02 (-0.47%)






GOLD, EURO, YEN, Loonie and Silver

---

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

Blind, Blinder or Blind-Sided?
BY ROB KIRBY

We should have seen this coming – I’m speaking of the continuing assault on the North American middle class – except it’s got a slightly different ring to it this time around.

At risk now are 40 MILLION service jobs.

Don’t believe it? See for yourself – here. In an April 17 editorial by Froma Harrop – which I caught flying under the radar in the Seattle Times – Harrop cites the recent work and assessment of Alan S. Blinder, noted Princeton Economist and former Vice Chairman of the Board of Governors of the Federal Reserve:

“The master plan, it seems, is to move perhaps 40 million high-skill American jobs to other countries. U.S. workers have not been consulted.

Princeton economist Alan Blinder predicts that these choice jobs could be lost in a mere decade or two. We speak of computer programming, bookkeeping, graphic design and other careers once thought firmly planted in American soil. For perspective, 40 million is more than twice the total number of people now employed in manufacturing.”

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

10:00 AM Consumer Confidence Apr
Briefing Forecast 105.0
Market Expects 105.0
Prior 107.2

10:00 AM Existing Home Sales Mar
Briefing Forecast 6.40M
Market Expects 6.45M
Prior 6.69M

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

Apr 24 10:00 AM Consumer Confidence Apr
Actual 104.0
Expected 105.0
Briefing 105.0
Prior 108.2
Revised from 107.2

Apr 24 10:00 AM Existing Home Sales Mar
Actual 6.12M
Expected 6.40M
Briefing 6.45M
Prior 6.69M

http://www.marketwatch.com/news/story/existing-home-sales-plunge-84-march/story.aspx?guid=%7B5037AF34%2D6384%2D4BDB%2D9111%2D13710B2FC4AB%7D



Suuuuurrre.

n/t

:donut: and lurkers. One of the posts from yesterday stuck with me. It was the one that said folks over 50 should have $169,300 in their 401K by now for their retirement. It went on to say that American's average $49,000 in their 401k. I had several thoughts.

The first thought was...what is the median amount saved?

I have worked very hard and have only been able to save $45,000. I know many folks that don't have ANY 401K or 403B's. I am lucky to have a pension so I haven't been particularly aggressive, but I always have saved something. I know too many folks that can't save, they just don't earn enough.

What is this making it mandatory for companies to take money and put it into an employers 401K and what happened to matching?

Companies save a sh*tload of money by not having to contribute to a pension plan. So how much did you save they were matching. The hospital I work for makes a damn site more off my labour and not providing a pension greater than 6% saves them so much. That is what they match-6%. Some places are a bit more some are a bit less. I somehow think they save more than 6% by not having to fund a pension. I also remember when they first tried to lure us away from out pensions, they always matched more. That dries up as soon as folks switched over. They get a tax break by matching a certain amount....and they don't give a penny more in most cases.

How do they set up your 401K/403B?

Your benefits people allow some companies in and some companies not. I wonder if the gate keeper is bribed, and what knowledge do they have to make the right choice. The student loan scandal has proved that these folks are not above cutting deals and bribing folks to get a piece of this lucrative pie. Once in they sell you crappy, expensive products that have excessive fees that drain off more of your hard earned money and the interest it earned. If they had your interest at heart, why is it so hard to get some investment. You might want some money in Mutual Funds, but what about Roth's, Municipal bonds, etc. No, all I ever see are sharks in suits selling Insurance CO. Mutual Funds.

Why all of this fear mongering and rushing to make it 401K AND 403B'S mandatory?

If these folks pushed for Social Security as much as they did for 401's we wouldn't have this problem. I can tell you why they don't push-they can't get their hands on the SS nest egg and this is the next best thing. We could do a few adjustment to SS and be solvent for the Boomer's throughout their lives and beyond. And if we did universal coverage, just what is charged by the insurance middle men could fund it. Of Course the Ins Co would not make the buck like they do now-and that's the real reason for the pushing of 401's

I am a saver, always have been. Overall I have made money, but not enough to build a retirement on. I watched the dot com crash take 1/4 of my portion of stock investment and I hardly call this a recovery. I am watching the RE bubble pop and I thank GOD I did not get sucked into that overpriced sink hole.

Well I am sure everyone is eating cake and ice cream and enjoying the pony ride at the party, but I've been to the puppet show and I have seen the strings-thanks but no thanks.

Happy hunting and watch out for the bears.

SINGAPORE - Oil prices dropped slightly in Asian trading Tuesday as traders were reluctant to lift prices after the previous day's jump.

For further direction, traders were awaiting the weekly U.S. petroleum inventory data released Wednesday to see if more refineries have come back on line ahead of the summer driving season, when gasoline demand peaks.

Light, sweet crude for June delivery lost 19 cents to $65.70 a barrel in electronic trading on the New York Mercantile Exchange, midmorning in Singapore. The contract on Monday surged $1.78 to settle at $65.89 a barrel.

-cut-

The midweek U.S. petroleum supply report is expected to show crude oil inventories fell by 1.2 million barrels on average, according to a Dow Jones Newswires survey of analysts' estimates.

Gasoline stockpiles will likely increase by about 200,000 barrels and distillate stockpiles, which include heating oil and diesel fuel, are seen to grow by 400,000 barrels, the survey showed.

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

Nigeria don't amount to much...for now.

TOKYO (Reuters) - Japan's Toyota Motor Corp. (7203.T) outsold General Motors Corp. (NYSE:GM - news) by around 90,000 vehicles in the first quarter, moving a step closer to unseating its U.S. rival as the world's biggest automaker.

Toyota has been widely expected to challenge 99-year-old GM this year for the top spot in global sales -- a position the Detroit behemoth has held for 76 years -- but the milestone came surprisingly early, industry watchers said.

Both companies reported record sales for January-March, but Japan's top carmaker inched past GM as it ate into the U.S. group's market share on its home turf.

Toyota, maker of the Camry sedan -- the United States' most popular car -- said on Tuesday its global vehicle sales rose 9 percent to 2.35 million units in the quarter.

http://news.yahoo.com/s/nm/20070424/bs_nm/toyota_gm_sales_dc

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

Last trade 81.713 Change -0.027 (-0.03%)

US Dollar Weakness: Who Wins, Who Loses

http://www.dailyfx.com/story/special_report/special_reports/US_Dollar_Weakness__Who_Wins__1177364080030.html

With the Euro hovering near its record highs and the British pound having breached the psychologically important 2.000 level, the extent of the US dollar’s weakness has finally been recognized. As we have seen in the past few months, the value of the US dollar is important not only for currency traders, but also for equity traders. It is hardly a coincidence that the US stock market hit an all time high around the same time that the US dollar reached multi decade lows against currencies like the British pound, New Zealand dollar and the Euro. The strength of those currencies has made US stocks attractive values for foreign investors and looking ahead, the value of the US dollar can be a useful tool for equity traders, especially those who are looking to buy or sell the shares of big US importers and exporters.

US Dollar and the Impact of Its Value on Stocks

In order to assess the impact of the US dollar on stocks, we compare the performance of the Dollar Index with the stocks of Wal-Mart (a big importer) and Boeing (a big exporter). The chart below clearly indicates that a drop in the US dollar leads to the underperformance of Wal-Mart over Boeing. In fact, the correlation between the two components has been a whopping 74 percent over the past few months with the Dollar Index (blue line) often leading the movement of the Wal-Mart / Boeing ratio (red line). The rationale for the correlation is simple. When the US dollar weakens, importers have less purchasing power so they are faced with one of two options, which is either to increase prices or take a hit to profits. Exporters on their hand find their goods automatically more competitively priced in the global market place, which only adds to earnings. Equity traders may find it useful to keep this information in mind when picking which companies to buy or sell.



A Deeper Look Into Who Wins

When we compare Boeing to Airbus – the US and French based companies competing to sell two of the biggest passenger planes in the world, the importance of the value of dollar can be understood further. Sales of Boeing’s Dreamliner have far outpaced those of Airbus’s A380, which has been plagued by delays and production problems. Furthermore, Boeing’s profitability prospects are far greater than that of Airbus, as the Dreamliner is priced in US dollars whereas Airbus’s products are priced in Euros. Given this pricing advantage, Airbus has gone so far as to cut the price of their mid-size A350 in half in order to draw more demand. Nevertheless, a quick look at the share prices of these respective companies gives an even clearer picture: over the course of the past year, shares of EADS (producer of Airbus) have fallen nearly 22 percent while shares of Boeing have climbed 11 percent. The markets have spoken.

Other American exporters have gained from the weaker dollar as well. IBM saw stronger-than-expected quarterly profit growth on the back of a 13 percent jump in revenue from the Middle East, Europe, and Africa while US markets only saw a 1 percent gain. Meanwhile American firms like Al-jon Manufacturing LLC in Iowa have benefited from a jump in demand from Asia for scrap steel with a lengthy waiting list until the end of the year.

...more...

US Dollar: Is a Bottom Near?

http://www.dailyfx.com/story/dailyfx_reports/daily_fundamentals/US_Dollar__Is_a_Bottom_1177363677033.html

US Dollar- Could the US dollar set a near term bottom this week? Quite possibly. Over the past two months, traders have ignored the upside surprises in US data to focus exclusively on the strength of UK, Canadian, Australian, and New Zealand data. This dynamic is based on the market’s overall belief that the Federal Reserve has their hands tied and their only possible response to stronger US data is to keep interest rates unchanged at 5.25 percent for a longer period of time. On the other hand, they believe that countries like the UK, Canada, Australia and New Zealand have more flexibility to lift interest rates if their economies continue to grow and if inflation remains a problem. Upside surprises in UK and Canadian inflation data last week put greed in the eyes of carry traders by spurring speculation that all four of these countries could raise interest rates within the next month. This week however could prove to be a reality check for these traders as they begin to realize that these central banks may not be in as much of a rush to raise rates as they expect. Australian producer prices have already surprised to the downside while the Reserve Bank of New Zealand and the Bank of Canada is expected keep interest rates unchanged this week. This should serve as a reminder to those anticipating higher yield that they will need to wait. The US dollar however could bounce if US data surprises to the upside. Consumer confidence and existing home sales are due for release tomorrow. The market is looking for both numbers to disappoint, but the recent strength of the stock market, increase in corporate profitability and the stability of the labor market could lead to stronger rather than softer numbers. We are also expecting the Beige Book report and Durable Goods later this week. Inflation pressures should keep the Federal Reserve hawkish while the weaker dollar could boost sales of Boeing aircrafts and other items made to last for more than 3 years. The data releases tomorrow will determine whether today’s dollar recovery continues.

...more...

n/t

http://www.marketwatch.com/news/story/dollar-drops-existing-home-sales-consumer/story.aspx?guid=%7BCDA8D2F0%2D7D4C%2D4EF3%2D98A3%2D6FC2730895E2%7D
Australian dollar declines on soft consumer inflation report

NEW YORK (MarketWatch) -- The dollar approached an all-time low against the euro Tuesday after reports showed sales of existing homes plunged at the fastest pace in 18 years last month while consumer confidence dropped more than forecast in April, fueling worries that the U.S. economy is decelerating.

The disappointing news on the housing and consumer sectors reinforced market expectations that U.S. interest rates have peaked at their current level of 5.25%. The dollar has come under heavy pressure, hitting multiyear lows last week on the prospect of the Fed remaining sidelined or cutting rates, even as central banks elsewhere continue to lift borrowing costs.

"To the surprise of the market, this morning's U.S. data was extremely ugly," said Kathy Lien, chief strategist at DailyFX. "Today's reports only reinforce the Federal Reserve's need to keep interest rates unchanged. The problems that the U.S. economy is facing are not going away, and today's numbers provide a harsh reality check," she said.

In New York trading, the euro stood at $1.3617, compared with $1.3571 late Monday. In intraday trading, the euro had climbed to a high of $1.3635 -- just a third of a cent below its all-time high of $1.3666.

The dollar was last quoted at 118.54 yen, compared with 118.59 yen.

The British pound traded at $2.0009 vs. $2.0006. The pound had climbed as high as $2.0133 last Wednesday -- sterling's loftiest level since 1981. The dollar changed hands at 1.2032 Swiss francs, compared with 1.2095 francs.

The euro fetched 161.44 yen, compared with 160.96 yen. See live currency rates.
Losses in the dollar were limited as traders await a report on orders for durable goods for March, due out Wednesday at 8:30 a.m. Eastern time, said Gareth Sylvester, currency strategist at HIFX. Economists polled by MarketWatch are looking for orders to rebound to 2.5% in March from 1.7% in February.

/...

http://www.dailyfx.com/story/currency/eur_news/Dollar_Loses_Ground_As_Housing_1177439203972.html?engine=rss&keyword=article

Tuesday’s economic calendar stirred things up in the majors. Two housing indicators, a consumer confidence survey and regional manufacturing report all hammered the dollar when traders realized that not one of the indicators met or beat its market consensus.

With the heavy-hitting data crossing the wires in bears’ favor, it didn’t take long for the market to bring the dollar back to the brink of support. Already moving higher in the early morning hours, EURUSD surged to 1.3635 – just five points shy of the two-year high – after the disappointing data flow. In the same boat, USDCHF added to its declines to chalk up a 100-point and a double bottom on support seen around 1.2000/10. Though the dollar sell off was seen in GBPUSD, the pair held up its slowly descending trend channel with a reversal on 2.0045 resistance. Finally, the USDJPY’s 118.25-119 range has proven itself quite resilient after a test on resistance in the London session, turned into a move on support in US liquidity.

Dollar bulls had no luck this morning. From a stacked docket, every single indicator that crossed the tapes in the early New York session managed to disappointment its respective consensus.

/analysis...

http://www.nasdaq.com/aspxcontent/NewsStory.aspx?cpath=20070424\ACQRTT200704241412RTTRADERUSEQUITY_1198.htm
&selected=9999&selecteddisplaysymbol=9999&StoryTargetFrame=_top&mkt=WORLD
&chk=unchecked&lang=&link=&headlinereturnpage=http://www.international.nasd

(RTTNews) - The euro was strong in trading against its major counterparts on Tuesday. The currency moved as the Euro-Zone reported on Industrial New Orders.

The euro was strong against the dollar in trading on Tuesday. The advance brought the currency to a mark of 1.3621 in the early afternoon. On the whole, the euro is at a weekly high.

In trading with the sterling, the euro saw strength on Tuesday. By the afternoon, the European currency had risen to a mark of 0.6809 against the cable. Overall, the euro is at a week and a half high.

The euro saw strength against the yen on Tuesday during trading. The euro rose to a mark of 161.60 in the afternoon. In general, the euro is week and a half high against the currency.

(European) Industrial new orders index fell 0.7% on month in February versus revised 0.1% decline last month. The number for January was revised from 0.2% drop estimated earlier. Economists were looking for an increase of 1.0% on month.

http://uk.reuters.com/article/goldMktRpt/idUKL2462251720070424

NEW YORK/LONDON, April 24 (Reuters) - Selling related to options expirations and a lower oil market sent gold lower by afternoon in New York on Tuesday, and strong resistance on technical charts kept prices from inching closer to $700 an ounce. Analysts said that the precious metal would need new sparks to test the psychological $700 level in the coming weeks.

The platinum group metals also ended lower as investors locked in profits after solid gains from last week because of proposals for physically backed exchange-traded funds.

Gold (XAU=: Quote, Profile, Research) was quoted at $684.10/684.60 by 3:23 p.m. EDT (1923 GMT) after falling to $681.40 earlier, compared with a late quote of $688.90/689.40 in New York on Monday, when it matched its 11-month high. Most-active gold for June delivery (GCM7: Quote, Profile, Research) on the COMEX division of the New York Mercantile Exchange settled down $6.50 at $687.70 an ounce, traded from $684.30 to $695.70.

Carlos Perez-Santalla at Hudson River Futures said from the COMEX floor that Wednesday's expirations of COMEX May silver and gold options kept the market in check.

/...

NEW YORK (Reuters) - Google Inc. (Nasdaq:GOOG - news) has knocked Microsoft Corp. (Nasdaq:MSFT - news) from its perch as the world's top-ranked brand, according to findings released on Monday.

The rankings, compiled by market research firm Millward Brown, also put Google ahead of well-established brands like General Electric Co. (NYSE:GE - news), No. 2; Coca-Cola Co. (NYSE:KO - news), No. 4; Wal-Mart Stores (NYSE:WMT - news), No. 7; and IBM (NYSE:IBM - news), No. 9.

Some key factors seen this year in building brand recognition ranged from corporate responsibility to serving customers in emerging markets like Brazil and India, according to the study

http://news.yahoo.com/s/nm/20070423/bs_nm/advertising_rankings_dc

NEW YORK (CNNMoney.com) -- Stocks appeared poised to take another run at the 13,000 mark for the Dow Tuesday as investors await the latest earnings and reading on the battered real estate market.

Stock futures were mixed, but a comparison to fair value, which predicts the direction of stocks at the start of trading, pointed to a slightly higher open.

U.S. Stocks closed slightly lower Monday, ending a streak of three straight record highs for the Dow and six-year highs for other major indexes. But the decline still left the blue chip measure just over 80 points away from crossing the 13,000 mark for the first time.

At 10 a.m. ET the National Association of Realtors is due to report on existing home sales in March and economists are forecasting the pace of sales fell to an annual rate of 6.5 million from 6.7 million. The latest consumer confidence survey from the Conference Board is also due at 10 a.m.

http://money.cnn.com/2007/04/24/markets/stockswatch/index.htm?postversion=2007042406

NEW YORK (CNNMoney.com) -- Key leaders in the House and Senate have agreed to a package of tax-breaks for small business that should ease the passage of the minimum wage bill.

Senate Finance Committee Chairman Max Baucus (D-Mont.) and House Ways and Means Committee Chairman Charles Rangel (D-N.Y.) announced Friday that they had come to an agreement on tax breaks for small business totaling about $4.8 billion.

The Senate Finance Committee had originally proposed tax breaks of $12 billion while the House approved a smaller $1.3 billion package. The difference had been a stumbling block between the House and Senate, stopping them from sending a minimum wage increase to the president for his signature.

-cut-

The wage and tax package has been added to a $100 billion Iraq war funding bill that President Bush has threatened to veto because it contains language calling for withdrawal of most U.S. troops from Iraq by next March.

http://money.cnn.com/2007/04/23/news/economy/minimum_wage/index.htm?postversion=2007042315

SHANGHAI, China - China will pass the United States as the world's biggest source of greenhouse gasses this year, an official with the International Energy Agency was quoted as saying.

China had been forecast to surpass the U.S. in 2010, but its sizzling economic growth has pushed the date forward, the IEA's chief economist, Fatih Birol, was quoted as saying in an interview appearing in Tuesday's Wall Street Journal newspaper.

"In the past couple of months, economic growth and related coal consumption has grown at such an unexpected rate," Birol was quoted as saying. China's rising emissions will effectively cancel out attempts by other countries to reduce their own, he said.

http://news.yahoo.com/s/ap/20070424/ap_on_re_as/china_greenhouse_gasses_1

:eyes:

"China sucks too so why should we do anything?" (or something like that)

With such skilled foresight and leadership we might have won World War Two.

Oh wait...
















:sarcasm:

http://www.marketwatch.com/news/story/home-prices-fall-fastest-rate/story.aspx?guid=%7B9859C039%2DF005%2D42EB%2DAEAC%2DD8A4F0AB14E1%7D&siteid=yhoof

WASHINGTON (MarketWatch) -- U.S. home prices continued to fall in February, with 17 of 20 major metro areas seeing lower prices in February compared with January, according to the S&P/Case-Shiller home price index released Tuesday.
Prices are down 1.5% in 10 major cities in the past year, the fastest decline in 13 years.
In 20 major cities, prices are down 1% in the past year.
The biggest declines over the past year were in Detroit, Boston and Washington. Seattle, Portland and Charlotte have seen the biggest increases in the past year.
"Declines in home prices are showing no signs of turnaround," S&P said in a release.
A year ago, prices were rising 14%.
The report comes amid heightened concerns about the housing market.
Falling home prices will exacerbate credit problems, because many borrowers will not be able to refinance their loan or sell their house because they owe more than it's worth.
The 10-city Case-Shiller index turned negative in mid-1990 and remained negative for much of the next three years. Prices did not return to the peak seen in October 1989 until January 1998.
The Case-Shiller index is considered to be a superior gauge of home prices compared with the median sales-price data released by the Commerce Department or National Association of Realtors, because it tracks multiple sales on the same property and is therefore not influenced by a different mix of homes sold in a period.

end...

Minneapolis owners losing homes at record pace
Foreclosure sales in Minneapolis from January to March more than doubled compared to this time a year ago.

http://www.startribune.com/462/story/1139927.html


But the Dow is closing in on 13K !!!!:eyes:

http://www.latimes.com/business/la-fi-forclose17apr17,1,5994887.story?coll=la-headlines-business&ctrack=2&cset=true

Forclosures UP 806% from the lows in 2006 (When EVERYONE was buying and selling...)


The number of Californians losing their homes to foreclosure rose in the first three months of the year to the highest level in a decade, a real estate information service said today, providing grim evidence that the shake-out in real estate is nowhere near over.

Foreclosures totaled 11,033, up 802% from the placid levels of early 2006, according to DataQuick Information Services in La Jolla. Foreclosures peaked at 15,418 in third-quarter 1996, at the tail end of the last big slowdown in the state. They bottomed out at 637 in the second quarter of 2005, as the most recent boom was cresting.

Tens of thousands of homeowners are being warned that they too are at risk. Notices of default, sent by lenders after about five months of missed payments, reached 46,760 in the first quarter, DataQuick said.

more at link...



-mojavekid

Carumba. Sad thing is, that story is being repeated in every nook and cranny of this country.

But happily it will have no effect on the "broader" economy, so we won't really feel a thing:sarcasm:

-mojavekid

http://www.321gold.com/editorials/saxena/saxena042407.html

INFLATION/DEFLATION - Analysts and economists seem to be divided over this issue. According to some market observers (including me), we are living in a highly inflationary environment. After all, money supply growth is extremely strong in most countries (Figure 1) and this represents inflation.


The other camp argues that since prices of certain consumer goods are either stable or in decline, we are indeed witnessing genuine deflation. In my view, these "deflationists" seem to miss the point that falling consumer prices (due to improvements in technology or the relocation of manufacturing to relatively inexpensive developing nations) have nothing to do with deflation and everything to do with economic progress. In fact, I would argue that in the current economic environment; due to technological advances, rising productivity, free trade and cheap labour, prices SHOULD be declining. After all, this is the whole point of genuine economic development!

In an ideal world with a stable monetary base (zero monetary inflation), prices of almost everything (with a few exceptions) would be in decline. That would be a sign of real economic progress as people's savings would buy them more goods with every passing year. In our far from ideal world however, the factor preventing this from occurring IS monetary inflation. Due to central-bank sponsored inflation, prices of assets (whose supply is relatively limited when compared to money) are going through the roof! As a result of the ongoing inflation, even basic commodities which are critical for human survival (land, energy and food) have become very expensive, hence scarce for the average person. So, next time when someone tells you that we are witnessing deflation, tell them to look no further than the escalating cost of housing, energy, food, education and medical care.

Finally, if we were indeed witnessing genuine deflation (contraction in the money-supply), all asset-prices would be declining rather than flirting with multi-year highs!

PRECIOUS METALS - We are in a primary bull-market which is currently undergoing a healthy medium-term correction - everything else is "noise". Such corrections are normal and serve the purpose of shaking out the latecomers and the "weak hands". More importantly, such periods of weakness give us the ideal opportunity to increase our positions. I am not sure about you, but I always prefer to buy assets when the sentiment is negative and there is widespread fear amongst the investing public. Furthermore, I never purchase anything after a big rally. This is the reason why despite the brutal sell-off in commodities over the past several months, our managed accounts have held up reasonably well.

more at link with nifty annual money supply growth chart....

http://www.cfo.com/article.cfm/9064450/c_9061536?f=home_todayinfinance

Question: What can you buy with $20 billion?

Answer: Probably just about anything you want.

The buying power of private equity investors reached new heights Monday as Goldman Sachs Group Inc. announced it has closed a new $20 billion fund, the largest leveraged buyout fund ever to be created, according to Reuters.

The fund, called GS Capital Partners VI, includes $11 billion from qualified institutional and high net worth clients and $9 billion from the firm and its employees. Goldman said its sixth global fund will invest across a broad range of industries in a variety of situations, including leveraged buyouts, recapitalizations, and growth investments to fund acquisitions or expansion.

Goldman Sachs' Principal Investment Area has grown to over 125 investment professionals in New York, London, Hong Kong, Tokyo and San Francisco. Goldman's previous investments include Aramark Corp., Burger King Holdings, Polo Ralph Lauren, SunGard Data Systems and Western Wireless.

Previously, the largest buyout fund to officially close in the last year was TPG, raising $14 billion, according to Reuters.

Last year, Blackstone Group closed a $15.6 billion fund, according to the wire service. The fund was subsequently reopened to more commitments this year.

Reuters also noted that Kohlberg Kravis Roberts & Co. is expected to close on a roughly $16 billion fund.

end...and wow.

http://www.bloomberg.com/apps/news?pid=20601085&sid=avbraeybmBV4&refer=europe

April 24 (Bloomberg) -- Spanish real-estate and bank stocks tumbled on concern the country's property boom is imploding.

Inmobiliaria Colonial SA dropped as much as 22 percent and Grupo Inmocaral SA fell as much as 19 percent in Madrid, leading the slump by developers of homes and offices. Banco Bilbao Vizcaya Argentaria SA, the country's second-biggest bank, declined as much as 3.2 percent on speculation bad loans will rise.

``This is the burst of the Spanish real-estate bubble,'' said Alberto Espelosin, a strategist at Zaragoza, Spain-based Ibercaja Gestion, which manages about $7 billion. ``Banks are exposed and have risk.''

Spanish property stocks have surged amid a rally in home prices, fueled by foreign buyers of vacation houses and an influx of immigrants. Home prices in the country climbed at an average annual rate of 15 percent between 1999 and 2005. In the 12 months through March, the increase was 7.2 percent, the smallest since 1998, according to a government report last week.

Spanish companies are the top performers in the Bloomberg Europe Real Estate Index during the current four-year stock market rally. Inmocaral's shares have jumped more than 14 times in value during the period. Metrovacesa SA has paced the advance in property shares, climbing more than fivefold, while Inmobiliaria Colonial SA almost quadrupled. The Bloomberg measure more than tripled.

Inmocaral, Montebalito

Inmocaral's shares fell 11 percent to 4.34 euros today. Montebalito SA, a real-estate company based in Spain's Canary Islands, plummeted 12 percent to 22 euros.

Astroc Mediterraneo SA dropped 8.6 percent to 16.10 euros, bringing the decline for the past week to 65 percent. Developments in Valencia may be put at risk by stricter urban planning rules which came into force last year, Astroc said in its latest annual report.

``There have been no new developments whatsoever to justify the drop in the stock in recent days,'' said Eva Zaragoza, an investment relations officer for Astroc. The company is due to hold a briefing in Madrid today at 4 p.m. local time.

/...

http://mwprices.ft.com/custom/ft2-com/html-story.asp?pulse=true&siteid=ft&dist=ft&guid=%7B5f3f9934%2D0014%2D4409%2D8da4%2D0b3cede74d8f%7D

European equities were sharply lower on Tuesday (morning), led by Spain’s Ibex index, as growing fears over the financial stability of real estate company Astroc led to sharp falls in the property and construction sectors. In mid-session trade, the FTSE Eurofirst 300 was off 0.8 per cent at 1,565.24, with Spain’s benchmark Ibex down 2.4 per cent at 14,628.5. In Paris, the CAC 40 fell 0.6 per cent to 5,878.52, Frankfurt’s Xetra Dax lost 0.9 per cent to 7,268.35 and London’s FTSE 100 shed 0.7 per cent to 6,437.1. Fears that the Spanish property bubble, which drove companies like Metrovacesa and Sacyr Vallehermoso more than 100 per cent higher last year, was in danger of bursting was highlighted by Monday’s 41 per cent fall for Astroc Mediterraneo. Astroc shares fell 13.3 per cent to €15.28, having lost around 60 per cent in the previous three sessions on rumours some of its major shareholders were about to sell. Elsewhere in the sector, Inmocaral fell 10.2 per cent to €4.39, while Metrovacesa shed 4.4 per cent to €85.05. Among the construction groups, Sacyr Vallehermoso was down 8.3 per cent to €40.75, FCC lost 4.6 per cent to €71.95, Acciona slid 4.2 per cent to €165.20 and ACS slipped 3.8 per cent to €46.09. There was a knock on for Spanish lenders. Banco Popular, one of the country’s biggest mortgage lenders, fell 3.3 per cent to €15.14, while Banco de Sabadell shed 3.8 per cent to €33.67 and Banesto shed 2.2 per cent to €18.30. Among the large caps, Santander was off 2.7 per cent to €13.41 and BBVA fell 2.3 per cent to €18.20.

http://mwprices.ft.com/custom/ft2-com/html-story.asp?pulse=true&siteid=ft&dist=ft&guid=%7B2aa43d6f%2D3577%2D4c02%2D9d5e%2D65d31169cd52%7D

...

By the end of the trading day, the FTSE Eurofirst 300 was off 0.9 per cent at 1,564.60, with Spain’s benchmark Ibex down 2.7 per cent at 1,4578.7. In Paris, the CAC 40 fell 0.5 per cent to 5,886.03, Frankfurt’s Xetra Dax lost 0.9 per cent to 7,270.32 and London’s FTSE 100 shed 0.8 per cent to 6,429.5.

http://mwprices.ft.com/custom/ft2-com/html-story.asp?pulse=true&siteid=ft&dist=ft&guid=%7B4dbb62dc%2Dff7c%2D4c0c%2Db326%2Dc544ce9efd34%7D

London equities closed sharply lower on Tuesday as the FTSE 100 index was hit by worries about the real estate sector in Spain. Madrid’s Ibex index tumbled 2.7 per cent at 1,4578.7, triggered by worries over property company Astroc, whose shares have plummeted over the last week due to doubts over its financial strength. And news that US housing and consumer confidence data was softer than expected only added to concerns. The news knocked sentiment towards UK real estate stocks, with Hammerson down 2.4 per cent to £15.32 and housebuilder Persimmon 1 per cent lower at £13.92. By the close, the FTSE 100 lost 50.2 points to 6,429.5 while the FTSE 250 shed 107.4 points to 11,816.9.

http://www.bloomberg.com/apps/news?pid=20601080&sid=aDGk5ssresfE&refer=asia

April 24 (Bloomberg) -- India's central bank left its benchmark overnight lending rate unchanged to support slowing economic growth, judging that five increases in the past year are enough to tame inflation.

Governor Yaga Venugopal Reddy kept the repurchase rate at a five-year high of 7.75 percent, the Reserve Bank of India said in a statement in Mumbai today. The reserve requirement for commercial banks was also maintained at 6.5 percent as Reddy forecast Asia's fourth-largest economy to expand ``around'' 8.5 percent this year from 9.2 percent in the previous year.

/...

http://www.bloomberg.com/apps/news?pid=20601080&sid=albz44.wshtU&refer=asia

April 24 (Bloomberg) -- Asian stocks were little changed as concern higher oil prices will curb demand for exports countered better-than-expected earnings from Inpex Holdings Inc., Samsung Heavy Industries Co. and Compal Electronics Inc.

Toyota Motor Corp. and Hynix Semiconductor Inc. fell on concern the jump in oil prices will boost costs and hurt sales. Inpex gained after the company reported earnings that topped its own forecast, while Samsung Heavy led South Korean shipbuilders higher after reporting a record profit increase. Compal, the world's second-largest maker of laptops, advanced after net income increased for the first time in a year.

``Rising oil prices will corrode manufacturers' earnings,'' said Sam Hsieh, who helps oversee $275 million as head of research at Fuh-Hwa Investment Trust Co. in Taiwan. ``Companies that can deliver solid corporate earnings will attract investors' attention, especially when the market is directionless.''

The Morgan Stanley Capital International Asia-Pacific Index, which last week reached a record, was steady after two days of gains. China Life Insurance Co. led China's CSI 300 Index to a high after the company said it posted a first-quarter profit of $1.2 billion and the Hong Kong Economic Journal newspaper reported it may sell a stake to Citigroup Inc.

Benchmarks also advanced in India, Pakistan, South Korea, Taiwan and Thailand. Hong Kong and Japan were little changed, while elsewhere markets fell.

The MSCI index was up 0.06 at 147.73 as of 4:08 p.m. in Tokyo. A measure of energy stocks gained 1.2 percent, the biggest advance among 10 industry groups. Japan's Nikkei 225 Stock Average closed down less than 0.1 percent to 17,451.77, after earlier climbing as much as 0.3 percent.

/...

Though your head turns purple and your cranium cracks,
At least you'll know your CFP's a hack,
Like Greenspan and Snow and Cheney and Shrub
This ship of fools is just four men in a tub.

:crazy:

BILLY PRESTON lyrics - "Will It Go Round In Circles"

I've got a song, I ain't got no melody
I'ma gonna sing it to my friends
I've got a song, I ain't got no melody
I' ma gonna sing it to my friends

Will it go round in circles
Will it fly high like a bird up in the sky
Will it go round in circles
Will it fly high like a bird up in the sky

I've got a story, ain't got no moral
Let the bad guy win every once in a while
I've got a story, ain't got no moral
Let the bad guy win every once in a while

<snip>
I've got a dance, I ain't got no steps, no
I'm gonna let the music move me around
I've got a dance, I ain't got no steps
I'm gonna let the music move me around




www.OldieLyrics.com

Now I have my head bobbing and my fingers snapping. We miss your rhythms Billy.

http://www.kitcocasey.com/displayArticle.php?id=1345

Good day... The dollar continued to gain back some of its losses in what turned out to be a rather slow trading day to start the week. With no data to impact the markets, traders continued to take some profits off the table after last week's rapid rise by the euro, pound sterling, Aussie and New Zealand dollars. This morning we will see two measures of Consumer Confidence, which are expected to show slight decreases in April, and Existing Home Sales, which is expected to show a rather large 4.3% drop.

The National Association of Realtors will report home resales for March, which probably fell to the lowest point in three months. As always, some will say the fall was simply weather related, but with subprime mortgage defaults rising, the housing market is nowhere near bottom. Buyers continue to sit on the sidelines, and sellers have been reluctant to reduce prices. But with all of the mortgage resets that are expected over the next few months, sellers will likely be forced into reducing prices. The question now is just how low home prices will need to go before the bargain hunters start buying back into the market. Again, I don't think this month's expected 4.3% drop is the bottom, and the falling housing market will have a major drag on the U.S. economy.

None of the data due out this morning will be dollar positive, so we will likely see the two-day rally by the US$ come to a screeching halt. I think this morning's prices will look like good bargains next week.

more at link...

1:46
Dow 12,953.85 Up 34.45 (0.27%)
Nasdaq 2,524.82 Up 1.15 (0.05%)
S&P 500 1,479.96 Down 0.97 (0.07%)
10-Yr Bond 4.624% Down 0.026
NYSE Volume 1,960,813,000
Nasdaq Volume 1,481,336,000

:hi: And thanks to all the Marketeers! It's almost Happy Hour! :toast::beer:

Have one on me!!

:kick::kick::kick:

:toast: :beer:loudsue. Don't mind if I do. Ghost, are you in Spain now. What's the feeling there. Have one on me:beer:. I'll spot the next round.

and, in local terms, mostly happy to see the motly corrupt construction companies and cronies beginning to get their comeuppance; hoping that the bubble in home prices will deflate not too far for those forced to buy and take out mortgages at these pries and in these conditions; but also, very many (especially younger people) on lower (not-so guaranteed) incomes will be hoping rents will also go down and they may at last actually be able to afford a home of their own.

Otherwise, European markets generally still appear quite solid, for now... The rising Euro may hit exports, but also cheapens imports...

Source: Associated Press

SEC charges 2 former Apple executives

By MAY WONG, Associated Press Writer
47 minutes ago

SAN JOSE, Calif. - The Securities and Exchange Commission
filed civil charges Tuesday against two former Apple Inc.
officers over their alleged roles in backdating stock options.
The agency immediately announced a settlement with one
of them.

Former Chief Financial Officer Fred Anderson agreed to pay
about $3.5 million in fines and penalties to settle the case,
the SEC said.

The case against former general counsel Nancy Heinen will
proceed. Her attorneys have vowed to fight the charges.


http://news.yahoo.com/s/ap/20070424/ap_on_bi_ge/apple_stock_options

http://metalsplace.com/metalsnews/?a=11572

Bearish U.S. housing data triggered a flurry of speculative liquidation in copper and the rest of the base metals late Tuesday, with further falls expected overnight, market participants said.

LME copper reversed earlier gains to fall sharply as the markets digested bearish U.S. housing and economic data, traders said.

...

In other bearish news, the International Copper Study Group said Tuesday that the global refined copper market was in surplus to the tune of about 40,000 metric tons in January, thereby adding to greater copper price pressure.

...

The rest of the base metals and precious metals markets took their cue from copper.

After touching a fresh record high of $50,200/ton earlier Tuesday, speculative liquidation was triggered in nickel as investors took flight from risk, sending prices sharply lower, said the LME broker. Nickel's 10-day moving average of $47,557/ton is seen as the next support, analysts said.

Zinc too fell in line with the general LME complex but held up generally due to declining LME inventories. In addition, reports that China is considering adopting measures to reduce tax rebates on exports of zinc provided earlier market support. This will help to eliminate the enormous amount of Chinese zinc exports weighing on the international market, analysts said. China's unwrought zinc exports during January to March increased by 400% on the year to 125,777 tons, according to recent government data, and has been a major cap to upside price potential, some market players said.

In other metals, LME tin held in positive territory around $13,800/ton, although down sharply from earlier highs. Another drawdown in LME inventories Tuesday added to already tight stocks. LME tin stocks have fallen some 10% since the start of April.

/...

http://baltimore.bizjournals.com/baltimore/stories/2007/04/23/daily17.html?jst=b_ln_hl

What's on the minds of America's richest people?

This year, national and global economic worries are weighing on the minds of the affluent more than personal concerns such as the next generation's financial future.

In wealth management firm U.S. Trust's annual survey of affluent Americans, 74 percent said they were worried about the long-term effects of the nation's budget deficit and the same percentage were worried about America's ability to compete in a global economy.

Of the survey respondents, 73 percent said they were worried that the next generation will have a harder time financially. More than two-thirds of those surveyed were also worried about government spending on environmental issues and rising taxes.

Despite the worries about the future, most of the wealthy seem to feel they are doing well in the present. Of those surveyed, 85 percent said the performance of their investment portfolios met or exceeded their expectations over the past year. Just over half -- 51 percent -- felt the U.S. stock market is becoming riskier.

Like many other financial firms, wealth management company U.S. Trust is increasingly turning its attention to the wealthiest of the wealthy. Previous surveys factored in participants' home and income in determining eligibility, but this year's survey polled only Americans with more than $5 million in total investable assets.

/...

the rest of Americains worry how they can pay the bills, put food on the table and pray their sons and daughters are safe and their health holds out.

:mad:

Scale of needs my friend.

3:24
Dow 12,969.21 Up 49.81 (0.39%)
Nasdaq 2,526.03 Up 2.36 (0.09%)
S&P 500 1,481.65 Up 0.72 (0.05%)
10-Yr Bond 4.622% Down 0.028
NYSE Volume 2,604,120,000
Nasdaq Volume 1,908,188,000

3:00 pm : The indices are holding steady in positive territory going into the final hour of trading. Oil prices recently closing down about 2% near $64.50/bbl and a 1.0% rally in Tech continue to provide a floor of market support.

Unfortunately for the bulls, more evidence that it may take longer than anticipated for the housing correction to subside weighing on consumer confidence is keeping buyers honest and market gains modest in scope. DJ30 +52.34 NASDAQ +2.18 SP500 +0.64 NASDAQ Dec/Adv/Vol 1576/1422/1.77 bln NYSE Dec/Adv/Vol 1763/1439/1.21 bln

http://www.leap2020.eu/GEAB-N-14-is-available!-A-Chronicle-of-America-s-Very-Great-Depression-Two-growing-trends-A-historical-reversal-of_a570.html
- Public announcement GEAB N°14 (April 16, 2007) -

GEAB N° 14 is available! A Chronicle of America's Very Great Depression – Two growing trends: A historical reversal of global financial balances / An implosion of the US society

America's 2007 Very Great Depression has indeed begun; and represents the US dimension of the phase of impact of the global systemic crisis LEAP/E2020 anticipated early 2006, knowing that the US are the central pillar of the global order created after 1945. The structural weakening of the US is therefore both the cause and consequence of the global systemic crisis, international trends directly influencing the US domestic situation. At this stage, LEAP/E2020 researchers identify that two aspects of this « very great depression » are now established and emerge clearly from the current statistical, economic, financial and strategic chaos:


I- A historical reversal of global financial balances: For the first time since 1913, the US lost their status of world's largest financial centre

II- An implosion of the US society: The middle class is sacrificed between the endless collapse of housing prices and a revenue disparity ratio now above that of 1928.
...

The global systemic crisis initiated in 2006, one extensively detailed by LEAP/E2020 along the GEAB's various issues, and which entered its phase of impact in 2007, is hitting the US full stride, with two trends of high historical velocity now appearing: on the one hand, a fast change in the US relative position on the global scale; and on the other hand, a radical reorganisation of US society's internal balances that prevailed since 1940/1950.

I- A historical reversal of global financial balances: For the first time since 1913, the US lost their status of world's largest financial centre
LEAP/E2020 already described many of the trends at work in the decreasing role of the US in the field of international trade or in the field of wealth production. For instance, GEAB N°6 detailed the now dominant place of the EU (1) in the external trade of oil-producing countries: « One just needs to know that in 2005 the EU represented more than 50% of Russian foreign trade, 65% of Algerian foreign trade, 31% of Iranian foreign trade (followed by Japan with 12%), 78% of Norwegian foreign trade, more than 55% of the foreign trade of Gabon, more than 40% of Nigerian foreign trade, more than 50% of the Congo foreign trade, 20% of Saudi Arabian foreign trade (against 16% only in the United States), nearly 30% of the foreign trade of Kuwait (against 11% only in the United States) and more than 20% of the foreign trade of the United Arab Emirates (against only 6% in the United States) ». In the decades following 1945, the US held this first place by far; and not only with regards to oil-producing countries.

This example, as well as the fact that China has now surpassed the US as first importer in the EU (2), illustrates clearly a historical trend of which another facet was recently identified by the British consultants Absolute Strategy Research (ASR): according to the findings of Thomson Financial, at the end of March 2007, European financial markets surpassed in value their US counterparts. Such a change constitutes a major systemic break, putting an end to a century-long tendency initiated during the first World War. According to Ian Harnett (managing director of ASR and former UBS-Warburg's Head of European Strategy) who identified this change, it is indeed a « seismic tremor » for the global financial markets as it shows a displacement in the centre of gravity of the global financial sphere out of the US and towards the Old Continent. For instance, at the end of March 2007, European markets (including Russia) totalled up €11,819 billion against €11,760 billion only for US markets. In the past few years, they grew by 160% while US markets only grew by 70%. Of course the US dollar's depreciation contributed to strengthen this trend (3).

According to the LEAP/E2020 team, the trends at work in this disruption of global financial markets' hierarchy are profound and sustainable: relentless and durable decline of the US currency, decreasing share of the US in international trade and the production of global wealth, geographic remoteness of the US compared to the « Old Continent's » Eurasian economic centres, impoverishment of the US consumer, collapsing competitiveness related to collapsing quality of education, … Due to these reasons, the trend identified by Absolute Strategy Research will amplify throughout the year 2007 and the whole decade. The consequences for financial and stock players are considerable, as they turn upside down all reflex actions acquired for nearly a century.
...

II- An implosion of the US society: The middle class is sacrificed between the endless collapse of housing prices and a revenue disparity ratio now above that of 1928

A remarkable work conducted by Thomas Piketty and Emmanuel Saez on the evolution of high revenues in the US (4), shows that the revenue disparity ratio is now comparable to what it was on the eve of the Great Depression at the end of the 20s. According to this work, the revenue ratio between the richest 0.01% richest and the poorest 90% lingered around 170/180 all along the years 1950 to 1980, and lept to 880 in 2005, i.e. about the same level (891) as in 1928. The chart below clearly illustrates the return of the US society to the level of income disparity that prevailed during the pre-1929 period.

According to LEAP/E2020, beyond the mere economic analyses, such a situation corroborates the idea that 2007 will signal the entry of the US into the « Very Great Depression » because it conveys tremendous social and political tensions, already illustrated by the amount of foreclosure evictions (5) that the economic recession will multiply even further. The US society is being split into two groups, one poor and the other very rich, with the middle class about to fall in the poor group.
...

In GEAB N°14, LEAP/E2020 will describe four other trends that will preside over the coming quarter:

1. On-going explosive contagion of the subprime crisis to other types of home loans and other sectors of the economy

2. The return of stagflation: Towards a US growth falling beneath 1 percent by this summer

3. Sharp increase in US public deficit by mid-2007

4. Intensification of the geopolitical oil crisis in May 2007 – Iran and Venezuela on the frontline: Oil on the rise (100 USD) and Dollar on the fall (1,50) by summer 2007


GEAB N°14 (on subscription)

Dow 12,953.94 34.54 (0.27%)
Nasdaq 2,524.54 0.87 (0.03%)
S&P 500 1,480.41 0.52 (0.04%)
10-Yr Bond 4.622% 0.028

NYSE Volume 3,192,368,000
Nasdaq Volume 2,339,467,000

The major averages finished mixed Tuesday as participants juggled encouraging developments in tech, plunging oil prices and more evidence that it may take longer than anticipated for the housing correction to subside.

With Technology (+0.8%) expected to be a significant contributor to earnings growth on the S&P 500 this year, a solid Q1 report and upbeat Q2 guidance from Texas Instruments (TXN 34.92 +2.51) last night renewed confidence about the tech sector's growth prospects. Altera (ALTR 22.97 +1.65) also soared more than 7% after beating analysts' expectations and saying it sees improved chip industry conditions in the second quarter.

However, the most influential tech mover Tuesday was IBM (IBM 98.51 +3.30), which authorized $15 bln in additional funds for stock buybacks. As has been the case over the last couple of weeks, the Dow's performance was again dictated primarily by sizable gains from a couple of large-cap names. A 3.5% surge in the price-weighted index's most expensive component -- IBM -- was the biggest reason behind the Dow coming within 11 points of hitting the psychologically significant 13,000 milestone. IBM's gain accounted for 27 Dow points.

Utilities (+0.6%) turned in the next bst performance while Consumer Staples and Health Care, which are also attractive investments for their defensive characteristics, were the only other areas posting gains. A double dose of good news within Household Appliances (+7.7%) earmarked it as the day's best performing S&P industry group. Whirlpool (WHR 102.85 +12.50) soared 14% to all-time highs after handily topping Wall Street expectations while Snap-on (SNA 56.20 +7.41) turned in an even stronger performance after posting a 77% jump in Q1 profits.

Oil prices erasing most of yesterday's 2.6% rise was also noteworthy. Crude for June delivery fell 2.0% to $64.58/bbl amid reports that oil shipments from Nigeria have been unaffected by post-election violence. However, the failure of transportation stocks to take notice, and subsequent weakness in the Energy sector, removed notable leadership.

The absence of key leadership stalled the market's attempts to turn in a more convincing recovery following yesterday's pullback. Telecom was the day's worst performer, led by a 1.7% decline in AT&T (T 39.08 -0.69). The Dow component said Q1 net income nearly doubled, but shares hitting a five-year high Monday in anticipation of its report prompted a sell-the-news response.

Discretionary was another weak spot as consumer confidence weakening for a third straight month further echoed investors' sentiment. As if things couldn't get any worse for the homebuilders, existing home sales plunged 8.4% in March, the biggest drop in more than 18 years, leaving investors questioning whether the housing market has finally found a bottom. Target (TGT 60.29 -1.14), meanwhile, cast a shadow over the retail sector after warning April same-store sales growth will be "much weaker" than expected.

SEATTLE (AP) -- Web retailer Amazon.com Inc. said Tuesday its first-quarter profit more than doubled, sending shares up more than 12 percent in after-hours trading. The company also raised its revenue outlook for the year.

Earnings for the first three months of the year rose to $111 million, or 26 cents per share, from $51 million, or 12 cents per share, during the same period last year.

Analysts polled by Thomson Financial had forecast a profit of 15 cents per share.

A $12 million reduction in Amazon's tax bite helped nudge results higher, as did a weak dollar against foreign currencies, which added about $5 million to the bottom line, the company's chief financial officer told reporters in a conference call.

Revenue rose 32 percent to $3.02 billion, surpassing Wall Street's expectation of $2.92 billion in sales.

more...
http://biz.yahoo.com/ap/070424/earns_amazon_com.html?.v=11

CALABASAS HILLS, Calif. (AP) -- Casual dining chain Cheesecake Factory Inc. said Tuesday its first-quarter profit fell nearly 5 percent from higher costs, but still met analyst expectations.

For the quarter ended April 4, net income dropped to $18.4 million, or 24 cents per share, from $19.3 million, or 24 cents per share in the prior year quarter. The company had an average 77 million shares outstanding in the recent quarter, versus 78.9 million in the comparable period of 2006.

Analysts polled by Thomson Financial projected income of 24 cents per share.

Revenue rose 16 percent to $356.6 million from $306.7 million. Analysts expected revenue of $359.7 million.

more...
http://biz.yahoo.com/ap/070424/earns_cheesecake_factory.html?.v=1

Their food is overpriced and lousy.

BERLIN (AP) -- Siemens AG's profit rose 36 percent in the second quarter, the German engineering and technology firm said Tuesday. The disclosure came in advance of the scheduled release of the results and amid a report the company's supervisory board may be seeking to replace CEO Klaus Kleinfeld.

The Munich-based company earned 1.26 billion euros ($1.71 billion) in the second quarter compared with 923 million euros in the same period a year earlier, according to the surprise announcement on a day after its shares tumbled 2.9 percent to close at 89.20 euros ($121.15).

That was better than the 1.13 billion euros ($1.53 billion) analysts polled by Dow Jones Newswires had forecast.

Sales rose 10 percent to 20.63 billion euros ($28.02 billion) from 18.82 billion euros in same period the previous year, beating the 19.93 billion euros ($27.07 billion) forecast by analysts.

Siemens said it will publish its full quarterly report Thursday.

more...
http://biz.yahoo.com/ap/070424/earns_germany_siemens.html?.v=1

NEW YORK (AP) -- Staffing companies were mixed on Tuesday, after Kelly Services Inc. warned that profit for the second quarter and 2007 would come in below Wall Street expectations.

The company forecast second-quarter and full-year profit below Wall Street expectations, and said its Americas segment won't see revenue growth until the second half of the year. Kelly also reported first-quarter results that missed Wall Street estimates.

Here's how the key staffing stocks did Tuesday:

Kelly lost $3.91, or 11.6 percent, to $29.67;

Robert Half International Inc. rose 7 cents to $33.24;

more...
http://biz.yahoo.com/ap/070424/sector_glance_staffing.html?.v=1

NEW YORK (AP) -- Chemical producers ended Tuesday up slightly, as DuPont Co. reported a 61 percent jump in first-quarter profit.

DuPont credited a strong performance from its agricultural unit, which helped offset weakness in the domestic housing and auto markets.

The overall S&P Chemicals index rose 0.84 to end at 274.38.

DuPont, rose 67 cents to $49.86.

more...
http://biz.yahoo.com/ap/070424/sector_glance_chemicals.html?.v=1

NEW YORK (AP) -- Shares of apparel retailers declined Tuesday, after discount retailer Target Corp. warned that April sales were weaker than expected, causing investor worries about a consumer spend slowdown.

One exception was Limited Brands Inc., whose shares rose on a report the retailer might be close to selling two of its apparel brands.

Here is how some apparel retailers closed on Tuesday:

Aeropostale Inc., down 89 cents to $42.57

more...
http://biz.yahoo.com/ap/070424/sector_glance_apparel_retailers.html?.v=1

NEW YORK (AP) -- Shares of major Internet stocks traded mixed Tuesday, as shares of online retailer Amazon.com Inc. dipped slightly as investors anticipated the company's quarterly report, which was scheduled for after the market's close.

During the quarter, Amazon.com expanded and improved its online TV and digital film download service Amazon Unbox, and learned Wal-Mart Stores Inc. inked a partnership with major movie studios to sell downloadable films and TV shows on its site.

Amnazon.com has forecast revenue of $2.85 billion to $3 billion for the quarter. Analysts polled by Thomson Financial expect the company to record $2.92 billion in sales with earnings of 15 cents per share.

Here is how the key Internet stocks fared Tuesday:

Amazon.com Inc., down 2 cents to $44.75

more...
http://biz.yahoo.com/ap/070424/sector_glance_internet.html?.v=1

NEW YORK (AP) -- On an eventful Tuesday for telecom stocks, embattled Internet phone company Vonage Holdings Corp. saw its stock soar after gaining relief from a court order that could have meant the death of its business.

A federal appeals court granted a stay of a trial judge's injunction that would have barred Vonage from signing up new customers. Vonage is trying to overturn a verdict that it infringed on Verizon Communications Inc.'s patents.

Shares of AT&T Inc., meanwhile, slipped after the company posted a profit of $2.85 billion, double its earnings in the year-ago period, in its first full quarter since buying BellSouth.

While the earnings beat analyst expectations, the company's net wireless customer additions fell short of Wall Street's consensus, noted Stifel Nicolaus analyst Christopher King. He called the quarter a mixed bag, "with continued margin traction being offset by tepid top-line growth."

more...
http://biz.yahoo.com/ap/070424/sector_glance_telecom.html?.v=1

NEW YORK (AP) -- Shares of newspaper publishers were mixed Tuesday after McClatchy Co.'s first-quarter profit slid on a loss from the sale of the Minneapolis Star Tribune and a rise in the number of shares outstanding.

Net income dropped to $9 million, or 11 cents per share, from $27.7 million, or 59 cents per share, in the year-ago period. Analysts polled by Thomson Financial were looking for a profit of 27 cents per share.

The current quarter included a $5.5 million, or 7 cents per share, loss related to results of the sale of the Minneapolis Star Tribune. McClatchy also said the current quarter was hurt by an increase in the number of shares outstanding. The acquisition of Knight Ridder last year resulted in the issuance of 35 million Class A shares, the company said.

Here's how some newspaper publishers performed Tuesday:

McClatchy fell 95 cents, or 3 percent, to close at $30.55;

more...
http://biz.yahoo.com/ap/070424/sector_glance_newspapers.html?.v=1

NEW YORK (AP) -- Shares of most railroad stocks finished lower on Tuesday, as additional earnings reports revealed more pricing gains but weakened freight demand.

In earnings news before the markets opened, Burlington Northern Santa Fe Corp. said its first-quarter profit fell 15 percent, due mostly to a hefty charge and higher fuel costs, while Canadian Pacific Railway Ltd. said its profit rose 18 percent, despite service interruptions due to bad weather and a strike at rival Canadian National Railway Co.

Canadian National said after the markets closed on Monday that its quarterly earnings fell 11 percent, due to bad weather and the work stoppage. All three railroads, however, said prices remained firm despite weaker freight volumes.

Also on Tuesday, John G. Larkin at Stifel Nicolaus & Co. downgraded Burlington Northern to "Hold" from "Buy," saying a recent run-up in the stock removed most of its upside potential.

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NEW YORK (AP) -- Paccar Inc. helped boost the Nasdaq 100 Tuesday after the truck maker reported a 7 percent rise in first-quarter profit.

Paccar's results came in well ahead of Wall Street estimates, and the company boosted its dividend for the quarter. Paccar shares added $7.77, or 9.9 percent, to end at $86.56, and hit an all-time high of $90.70 during the session.

The Nasdaq 100, which includes 100 of the largest nonfinancial securities traded on the Nasdaq Stock Market, advanced 8.69 points to 1858.87. The broader Nasdaq composite inched up 0.87 points to 2,524.54.

Also gaining were shares of Express Scripts Inc., after the pharmacy benefits manager reported a 49 percent jump in first-quarter profit. Shares were up $8.08, or 9 percent, to $96.98, and hit an all-time high of $97.82 during the session.

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NEW YORK (AP) -- International Business Machines Corp. raised its quarterly dividend and increased its stock buyback plan Tuesday, and the stock posted the largest gain on the Dow Jones industrial average.

The 30-stock index rose 34.54, to 12,953.94, and hit another intraday high of 12989.86, flirting with another psychological peak of 13,000.

IBM increased its dividend to 40 cents from 30, and also authorized an additional $15 billion for its stock buyback program.

Shares advanced $3.28, or 3.5 percent, to end at $98.49 on the New York Stock Exchange.

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NEW YORK (AP) -- Lexmark International Inc., a printer maker, was among the stocks weighing on the Standard & Poor's 500 Index Tuesday.

The S&P 500 fell 0.52 to finish at 1,480.41.

Lexington, Ky.-based Lexmark forecast second-quarter profit below Wall Street's expectations, sending shares down $5.57, or 9 percent, to close at $56.44 on the New York Stock Exchange.

Also lagging on the S&P 500 was Coach Inc., which fell $3.09, or 5.8 percent, to end at $50.26 on the Big Board.

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Dow 12,953.94 Up 34.54 (0.27%)
Nasdaq 2,524.54 Up 0.87 (0.03%)
S&P 500 1,480.41 Down 0.52 (0.04%)
10-Yr Bond 4.622% Down 0.028
NYSE Volume 3,200,051,000
Nasdaq Volume 2,339,467,000

closing blather not available