STOCK MARKET WATCH, Tuesday July 22

Source: du

STOCK MARKET WATCH, Tuesday July 22, 2008

COUNTING THE DAYS
DAYS REMAINING IN THE * REGIME 183
DAYS SINCE DEMOCRACY DIED (12/12/00) 2739 DAYS
WHERE'S OSAMA BIN-LADEN? 2464 DAYS
DAYS SINCE ENRON COLLAPSE = 2755
Number of Enron Execs in handcuffs = 19
ENRON EXECS CONVICTED = 10
Enron execs conveniently deceased = 3
Other Arrests of Execs = 54

---

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.
$1 USD = EUR 1.06678
$1 USD = JPY 116.6200

AT THE CLOSING BELL ON July 21, 2008

Dow... 11,467.34 -29.23 (-0.25%)
Nasdaq... 2,279.53 -3.25 (-0.14%)
S&P 500... 1,260.00 -0.68 (-0.05%)
Gold future... 963.70 +5.70 (+0.59%)
30-Year Bond 4.65% -0.01 (-0.30%)
10-Yr Bond... 4.07% -0.01 (-0.34%)






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

With transparency and truth in short supply, caution is warranted
BY TONY ALLISON

Investor Jim Rogers minced few words, as usual, when asked about the U.S. Treasury Department's plan to shore up Fannie Mae and Freddie Mac.



It’s a pity that Rogers doesn’t speak frankly. The problem of course is that he is one of the few that will speak the truth as he sees it. He admits he is short the banks. But he has been short for years, and with good reason it turns out.

.....

Credit Crisis- write-offs continue

The credit crisis effectively broke into the public consciousness last August. At the time, the total losses were estimated at $200 billion. As bank write-offs continued into the fall and winter of 2007, the estimates were revised to $400 billion. During this period Wall Street pundits repeatedly stated that “the worst was over” and the financial stocks were a significant “opportunity” at these levels. Unfortunately, the banks have continued to write-off losses well into 2008. Recently the IMF (International Monetary Fund) and others have estimated that bank write-offs will reach $1.6 trillion. Given that roughly $400 billion has been written-off worldwide, there is still a ways to go.

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

However, by that point the place will have long been a branch of Potter National Bank® in Potterville.

SINGAPORE - Oil prices held steady near $131 a barrel Tuesday in Asia on expectations Tropical Storm Dolly won't disrupt oil operations in the Gulf of Mexico.

Royal Dutch Shell, Europe's biggest oil company, said Monday it was evacuating workers from oil rigs in the western part of the Gulf but didn't expect its production to be affected by the storm.

"The market doesn't see Dolly as a real threat at this point," said Victor Shum, an energy analyst with consulting firm Purvin & Gertz Inc. in Singapore. "It doesn't look like it will have much of an impact."

Midafternoon in Singapore, light, sweet crude for August delivery was down 1 cent at $131.03 a barrel in electronic trading on the New York Mercantile Exchange. The contract rose $2.16 to settle at $131.04 a barrel overnight.

The August contract expires later in the day at the close of the floor session in New York. The September contract, which will become the new front month, was up 4 cents at $131.86 a barrel in electronic trade.

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

HOUSTON - As giant oil companies like Exxon Mobil and ConocoPhillips get set to report what will probably be another round of eye-popping quarterly profits, just where is all that money going?

The companies insist they're trying to find new oil that might help bring down gas prices, but the money they spend on exploration is nothing compared with what they spend on stock buybacks and dividends.

It's good news for shareholders, including mutual funds and retirement plans for millions of Americans, but no help to drivers already making drastic cutbacks to offset the high cost of fuel.

The five biggest international oil companies plowed about 55 percent of the cash they made from their businesses into stock buybacks and dividends last year, up from 30 percent in 2000 and just 1 percent in 1993, according to Rice University's James A. Baker III Institute for Public Policy.

The percentage they spend to find new deposits of fossil fuels has remained flat for years, in the mid-single digits.

http://news.yahoo.com/s/ap/20080722/ap_on_bi_ge/oil_profits_16

Funny how they note the 55% but obfuscate with words the 5%.

...
UnitedHealth Group Inc.'s net income fell to $337 million, or 27 cents per share, from $1.23 billion, or 93 cents per share, a year ago. Excluding charges for lawsuits and severance, the company earned 67 cents per share in the latest period.

Revenue rose 7 percent to $20.27 billion from $19 billion a year earlier.
...

http://news.yahoo.com/s/ap/20080722/ap_on_bi_ge/earns_unitedhealth

Popular sentiment rails against government intrusion into health care. The government will waste all our money on bureaucracy and we'll have no choice, or so the saying goes.

So instead we pay and pay, and health care providers pay in lower reimbursements, so the health care giants can make hundreds of millions of dollars, sometimes even a billion, in profit.

Sick.

Saying they could not have gone public today and expanded like they did given regulations on things like stock options.


But not in favor of bailing out mortgage/financial companies.

I feel the need to play some slow, sad dirge for these poor executives. :nopity:

Unfortunately, I can walk there. The nearest Lowes is 10 miles away.

Home Depot lost me when they got greedy and fired all the old construction guys whose brains you could pick and replaced them with cheap, apathetic twentysomethings who didn't know their thumbs from their bums.

At the same time, much of the stock disappeared as inventory was tightened to a ridiculous extent, meaning half the time I'd go out empty handed, not good.

The old guys are back but the inventory hasn't improved.

How to destroy a company in one easy lesson: get greedy and try to use it as your personal cash cow.

How to destroy a country in one easy lesson: get greedy and try to use it as your personal cash cow.


That's the way it works, isn't it?








Tansy Gold

There are others.

But, this is one of them.

Oh, there I go... Thinking in real world terms again. Where there are consequences for stupidity.

Used to be a 5min walk

Chemicals maker DuPont Co. said Tuesday agriculture sales and emerging markets helped fuel a rise in second-quarter profit, which was also boosted in part by a lawsuit settlement and a lower tax rate.

Wilmington, Del.-based DuPont earned $1.08 billion, or $1.18 per share, during the quarter ending June 30, compared with profit of $972 million, or $1.04 per share, during the previous year's quarter. Net sales rose to $8.83 billion from $7.88 billion a year earlier.

.....

DuPont raised its 2008 outlook slightly, now forecasting earnings of $3.45 to $3.55 per share. Analysts expect $3.50 per share.

http://news.yahoo.com/s/ap/20080722/ap_on_bi_ge/earns_dupont

NEW YORK - Wall Street looked to open sharply lower Tuesday after a dismal quarter from Wachovia Corp. heightened concerns about how corporate results will fare amid the ongoing credit crisis.

The nation's fourth-largest bank suffered more write-downs linked to its troubled mortgage business, and slashed its dividend for the second time this year. Wachovia, which is leaving the wholesale mortgage lending business, easily missed Wall Street projections.

Shares of the company plunged 11 percent in premarket trading, and added to an already jittery mood after disappointing results were released late Monday from blue chips American Express Co., Apple Inc. and Texas Instruments Inc.

Dow Jones industrial average futures fell 118, or 0.67 percent, to 11,347.

S&P 500 index futures fell 13.60, or 1.08 percent, to 1,248.00. Nasdaq 100 index futures shed 36.25, or 1.98 percent, to 1,791.25.

AmEx, one of the world's largest credit card lenders, said late Monday its second-quarter results fell 38 percent due to the weakening economy. The company, which missed projections, caters to more established borrowers with excellent credit.

http://news.yahoo.com/s/ap/20080722/ap_on_bi_st_ma_re/wall_street

....
The nation's fourth-largest bank by assets says it lost the equivalent of $4.20 per share in the April-June period. In the same timeframe last year, the bank earned $2.34 billion, or $1.22 per share.

Thomson Financial says analysts had predicted a loss of 78 cents per share on revenue of almost $8.4 billion.
....

http://news.yahoo.com/s/ap/20080722/ap_on_bi_ge/earns_wachovia

http://www.reuters.com/article/bondsNews/idUSN2234346820080722?sp=true

NEW YORK, July 22 (Reuters) - Wachovia Corp (WB.N: Quote, Profile, Research, Stock Buzz) on Tuesday posted an $8.86 billion second-quarter loss, slashed its dividend and announced 6,350 job cuts after losses tied to mortgages soared.

Its shares fell $1.67, or 12.7 percent, to $11.51 in premarket trading.

The net loss attributable to common stockholders equaled $4.20 per share and compared with a profit of $2.34 billion, or $1.22, a year earlier.

<snip>

Wachovia on July 9 had projected a $2.6 billion to $2.8 billion quarterly loss, equal to $1.23 to $1.33 per share, excluding goodwill items.

The same day, it named former Treasury Undersecretary Robert Steel as chief executive, replacing Ken Thompson, whom it ousted a month earlier.

...more...

well, well, well - projects on July 9 a $2.6 - $2.8 billion loss - announces on July 22 an $8.9 billion loss - hmmm.... that's like... umm oh :think: 3 times what they said!

but - it's all hunky dory now, 'cuz they got themselves one of them smart connected Treasury people at the top!

$6 billion is a hell of a lot of "goodwill".

KeyCorp today said it lost $1.13 billion, or $2.70 per common share in the second quarter - worse than analysts expected. That compares to profits of $334 million, or 84 cents per common share in the second quarter of 2007.

Analysts had estimated Key would report a per-share loss of $2.58.

For the first half of 2008, the loss totals $908 million, or $2.23 per common share, compared with profits of $684 million, or $1.71 per share for the first half of last year

Key's loss comes on a day overflowing with bad bank news from Wachovia, Fifth Third and American Express.

Key blamed a tax issue it disclosed last month and an increase in reserves for future loan losses. It increased its reserves to 1.87 percent of loans because of "current economic conditions," Key said in a statement. That's up from 1.7 percent in the first quarter and up from 1.42 percent a year ago.

http://blog.cleveland.com/business/2008/07/keys_loss_worse_than_expected.html

____________________________________________________

(Reuters) - Bank examiners from the U.S. Federal Reserve and the Comptroller of the Currency are inspecting the books of mortgage finance companies, Fannie Mae (FNM.N) and Freddie Mac (FRE.N), The New York Times reported on Tuesday.

The Fed and the comptroller's office began combing the books of the two largest U.S. home loan companies after their declining stock prices caused widespread anxiety in the market, the paper said, quoting Treasury Secretary Henry Paulson.

.....

The financial condition of the two companies is being followed closely by members of Congress, some of whom have expressed concern about approving a plan without a clearer understanding of the value of the possible losses from mortgage-related securities owned or guaranteed by them.

http://news.yahoo.com/s/nm/20080722/bs_nm/freddiemac_fanniemae_regulators_dc

July 22 (Bloomberg) -- Fannie Mae and Freddie Mac may need to record more writedowns after they expanded their purchases of non-guaranteed subprime and Alt-A mortgage securities just as other investors fled to safer investments, their regulator said.

The value of $217 billion of the so-called non-agency securities is falling as other financial firms write down their holdings, the Office of Federal Housing Enterprise Oversight said in its annual mortgage market report. Privately issued securities backed by subprime mortgages made up 9.2 percent of the companies' combined portfolio, while Alt-A represented about 5.8 percent, Ofheo said.

.....

Freddie Mac is Worse

Freddie Mac has as much as $24 billion of potential losses related to privately issued subprime and Alt-A mortgage securities that it now calls ``temporary'' as the company is assuming it can recover its investment when the debt matures, Credit Suisse analyst Moshe Orenbuch wrote in a July 16 research note.

Non-agency, or private-label, mortgage securities, once the most profitable home-loan debt for Wall Street, lack guarantees from Fannie Mae and Freddie Mac or U.S. agency Ginnie Mae.

http://www.bloomberg.com/apps/news?pid=20601084&sid=ajmUanw85QRc&refer=stocks

or maybe a frantic search for an out? Or a scapegoat? or a coverup?

You never know if what you see is what you're getting anymore.

Then Paulson will have a clear idea how much he needs to beg from Congress. But before that happens, a message must be crafted in order for the American public to feel good about being bribed with their own money - again.

it's justified because these institutions are TOOOOO BIG to fail

rhetorical questions....

- has it occurred to them that having so much money controlled by a few BIG institutions may be a bad idea?

- has it occurred to them if they had helped those on the bottom that those on top may not be in trouble now?

Typical: an arbitrary deadline set; confusing doublespeak by our money stewards; shrill insistence on passage despite assurance that 'all is well'.

If Paulson were trying to sell me a car - I'd turn around a walk away without a word.

Welcome to the club!

There are three simple reasons why this supposed review is certain to be a sham.

First, do you think that it would be acceptable for the examiners to come back and say the GSEs were in trouble, or merely undercapitalized? Never. So the outcome of this exercise is predetermined. The most we might see is some recommendations for improvement and/or mention of some minor problem area, nothing threatening. to make the process look legitimate.

Indeed, Paulson's own comments confirm that this is a PR effort:



That comment presupposes a clean bill of health.

Second, the manpower is certain to be insufficient. When Citigroup was in serious trouble in the early 1990s, it took 160 examiners to go over their portfolio. And the troubled loans were junior/senior debt deals, where Citi was holding junior debt on what turned out to be see-through office buildings in Texas and the Southwest. That meant it was a specific number of deals (I have no idea how many, but exactly how many bad commercial RE deals could a large bank do?) that were inspected intensely.

Now this is a completely different sort of exercise, but I strongly suspect it would take more than 160 people per GSE to perform this review in enough depth to make most readers happy, and it's a pretty safe bet there are not that many people dedicated to this task.

Third, not even remotely enough time. Paulson wants the rescue package approved by Congress this week and wants the inspection to bolster confidence:



http://www.nakedcapitalism.com/2008/07/fed-comptroller-of-currency-due.html

---

See? It's all good. These dogs and ponies parading in little circles are necessary before all is declared well.

01. Freddie Mac down 18% in early trades
9:38 AM ET, Jul 22, 2008

04. CBO says good chance U.S. won't use Fannie, Freddie aid plan
9:35 AM ET, Jul 22, 2008

06. U.S. Fannie, Freddie aid plan would cost $25 billion: CBO
9:34 AM ET, Jul 22, 2008

LIARS

Maybe during the first hour of bailout. But they mean total? What a load of shit!

Can you imagine some relative bailing you out of a bad situation that you mostly created yourself, and not putting conditions on the money handed to you?

Apparently, that's what BushCo's doing with these bailouts. Meanwhile our deficit is nearly $10 trillion. :scared:

A few comments from the American Express conference call:



.....

And AmEx expects the economy to worsen:



http://calculatedrisk.blogspot.com/2008/07/amex-super-prime-problems.html

---

The Amex slide show is here.

July 22 (Bloomberg) -- American Express Co., the biggest U.S. credit card company by purchases, dropped 12 percent in early trading after second-quarter earnings missed analysts' estimates and the lender withdrew its 2008 forecast.

Chief Executive Officer Kenneth Chenault said yesterday in a conference call that the business climate was ``much weaker'' than earlier this year and American Express was hurt by rising U.S. unemployment and falling house prices. Profit from continuing operations dropped 37 percent to $655 million, or 56 cents a share, falling short of the 82 cent average estimate of 17 analysts surveyed by Bloomberg.

.....

The U.S. economic slowdown worsened in June, affecting even American Express's wealthier cardholders with high credit scores, Chenault, 57, said in the call. Late and uncollectible loans were higher than expectations in the quarter and will rise as the year progresses, Chenault said. The U.S. lost 62,000 jobs in June, the sixth straight period of shrinking payrolls.

http://www.bloomberg.com/apps/news?pid=20601087&sid=a43Cft2fXPH8&refer=home

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

Last trade 71.805 Change -0.013 (-0.02%)

Majors Reflect Continued Uncertainty in Dollar Outlook

http://www.dailyfx.com/story/topheadline/Majors_See_Continued_Uncertainty_in_1216705006837.html

Last week proved moderately fruitful, hitting our target on the Swiss Franc to yield 160 pips and advancing our New Zealand Dollar trade 96 pips in the right direction. This time around, choppy trading around oil prices and risk sentiment has made for substantial uncertainty in the major pairs. With the majority of significant US earnings reports over by Friday, this week may prove to be a defining moment in the dollar’s fate.



...more...

US Dollar: The One Correlation that Hasn’t Faded (Yet)

http://www.dailyfx.com/story/bio1/US_Dollar__The_One_Correlation_1216673873025.html

The sell-off in the Dow, the rebound in oil prices and weaker economic data drove the US dollar lower against every major currency except for the New Zealand dollar. Leading indicators dropped for the second month in a row, as stock prices plunge and unemployment rises. Even though Bank of America reported better than expected earnings today, the rally in the stock market is running out of gas. US Treasury Secretary Paulson and Fed President Plosser are scheduled to speak about the economy tomorrow and it may difficult for them to avoid acknowledging the deteriorating outlook for the US economy. Whether or not the dollar will continue to slide will be largely dependent upon the moves in equities and oil since the US economic calendar is devoid of any significantly market moving data. Meanwhile, for currency traders, the most interesting article in today’s Wall Street Journal is the one about volatility in the financial markets causing trading relationships to be in flux. This article examines some of the correlations that we talk about regularly, between USD/JPY and stocks or the EUR/USD and oil. The premise of this article is that these correlations may be fading, even though USD/JPY has traded in sync with the Dow today while the positive correlation between the EUR/USD and oil prices remain intact. Correlations run hot and cold and even though the Wall Street Journal Article may have a point, there will always be times when correlations are strong and weak. The one correlation that has remained intact so far is between USD/JPY and the December Fed Fund futures contract. Since March, the correlation between these two assets has been more than 90 percent. This tells us that the US dollar has been trading almost entirely based upon the market’s expectations for the Federal Reserve moves this year. Back in March, USD/JPY plummeted below 100 when Fed fund futures priced in steeper rate cuts. By June, the greenback recovered impressively against the Yen as oil prices surged forcing Fed fund futures to price in the possibility of rate hike before the end of the year. Interestingly enough, the correlation between the December Fed fund futures contract and the EUR/USD has been approximately zero between March and July. The reason why the correlation is strong for USD/JPY but nonexistent for the EUR/USD is simple; everyone knows that Japan can not alter interest rates despite their economic conditions while the outlook for Eurozone rates remains uncertain. In contrast, weaker conditions in Japan have already been priced into the market, but no one knows for sure if the Eurozone will skirt a recession or whether the European Central Bank will deliver another rate hike this year.

...more...

The geometry of these maneuvers boggles my mind. But I say it comes down to this: no one wants to make a decision for fear of making a bad decision. That's a dumb way to operate. It also undermines credibility within the individuals and institutions themselves which cannot be honest about their current positions. Where are their strengths? How weak are the weaknesses? How do the two categories correlate? Reasonable decisions should be made based on that answer.

Therefore it will be a bad decision by definition.

If they wanted a good decision, they'd quit and turn themselves in for white collar crime.

CHARLOTTE, N.C. -- Wachovia Corp. said today it lost $8.86 billion in the second quarter, slashed its dividend and announced 6,350 job cuts after losses tied to mortgages soared.

Even excluding one-time items, the results substantially missed Wall Street estimates, and shares sank to mid-1991 levels in premarket trading.

"These bottom-line results are disappointing and unacceptable," Chairman Lanty Smith said in a statement. "While to some degree they reflect industry headwinds and weaker macroeconomic conditions, they also reflect performance for which we at Wachovia accept responsibility."

The nation's fourth-largest bank by assets says it lost the equivalent of $4.20 per share in the April-June period. In the same timeframe last year, the bank earned $2.34 billion, or $1.22 per share.

http://www.inrich.com/cva/ric/news.apx.-content-articles-RTD-2008-07-22-0174.html

The Bigger They Are The Harder They Fall. (TBTHTF)

Guessing we won't be hearing that one... Ever.

Which is a damned depressing theme for today--but I've got others all lined up for the next shooting of the rapids....

I never thought they'd work this hard to get the market back up. No August vacations this year--except for the Shrub, whose absence will make the job that much easier for the peons.

I was sweating it last week when the pool limits were so near, but I'm glad I kept my September Date. For tradition's sake though, I should have picked a Tuesday in October. I just didn't think they could keep this balloon up in the air that long.

July 22 (Bloomberg) -- United Airlines parent UAL Corp. posted a second-quarter net loss of $2.73 billion, or $21.47 a share, and said its job cuts would reach 7,000 by the end of next year.

The loss compared with year-earlier net income of $274 million, or $1.83 a share, the Chicago-based company said today in a statement distributed by PR Newswire. The workforce reduction includes 1,500 salaried positions announced earlier.

http://www.bloomberg.com/apps/news?pid=20601087&sid=a.5F_6_3P7jE&refer=home

SUGAR LAND, TX, Jul 22, 2008 (MARKET WIRE via COMTEX) -- Reported by Annette Kreuger, Industrial Info Resources (Sugar Land, Texas) -- Despite the fact that millions of people consume prescription drug products on a daily basis, a tsunami of job cuts continues to roll across the Pharmaceuticals Industry. A recent analysis of Industrial Info Resources' Pharmaceutical Tracker - Online Database reveals 26 North American plants and research facilities currently targeted for closure. Pharma giant Pfizer (PFE:
JNJ 67.32, +0.21, +0.3%) (New Brunswick) are both expected to shed jobs in New Jersey.

http://www.marketwatch.com/news/story/big-pharma-layoffs-mounting---/story.aspx?guid={5F2DF0F6-1895-4FAF-ACC8-24799EFA0D6F}&dist=hppr

As for higher-end discretionary spending, Royal Caribbean reported a narrower quarterly profit due to a doubling of fuel costs, and laid out a plan to save $125 million a year.

"Too much of our profitability is being eroded by the increase in fuel prices. This is unacceptable and we are evaluating everything we do to find ways to do it more efficiently and effectively," said Richard Fain, chairman and chief executive of the world's number-two cruise operator.

Royal Caribbean said net income was $84.7 million, or 40 cents per share, down from $128.7 million, or 60 cents, for the comparable year-ago period. Its fuel prices rose 55 percent.

As part of its cost-cutting, the company said it would eliminate about 400 shore-side positions.

oh, goody! lookie here! they are still profitable and the reason for the less stellar number is OIL and so they cut jobs which will weaken the "consumer" further and the dominoes continue to fall.

:grr:

While I agree that interest rate hikes would be a positive move for the national savings rate (provided there's anything to save) there's not much positive here. As is typical - more empty platitudes abound. If a nickel fell into my pocket every time Paulson said "on the right track"....

Meanwhile our government goes deeper into debt with inflation-indexed securities. I wonder how many suckers will buy a security indexed to the level of officially reported, benign inflation?

8:30
S&P futures vs fair value: -10.0. Nasdaq futures vs fair value: -31.0. Futures continue to point to a sharply lower open, with significant weakness in tech stocks. GE (GE) is partnering with Mubadala on initiatives including commercial finance, clean energy research and development, aviation, industry and corporate learning. The two companies will each provide $4 billion in capital over the next three years. In earnings news, Supervalu (SVU) and US Airways (LCC) topped expectations.

8:05
S&P futures vs fair value: -9.5. Nasdaq futures vs fair value: -31.5. Futures point to a sharply lower open after several widely held names reported disappointing earnings. American Express (AXP), SanDisk (SNDK), Texas Instruments (TXN) and Wachovia (WB) all reported earnings that missed Wall Street's expectation. The latter company also cut its dividend to $0.050 from $0.375 and is exiting the general bank wholesale mortgagee origination channel. Apple (AAPL) topped its earnings estimate, but issued an earnings guidance that fell short of estimates, sending shares tumbling 10% in premarket trading. Caterpillar (CAT) topped its earnings estimates, but had some cautious comments regarding the economy.

July 22 (Bloomberg) -- European stocks fell for the first time in five days and U.S. index futures dropped after Vodafone Group Plc and Apple Inc. reduced revenue forecasts, while Ericsson AB and American Express Co. posted lower profits.

Vodafone, the world's largest mobile-phone company, tumbled 14 percent as the economic slowdown hurts sales prospects. Ericsson sank the most in eight months. American Express, the biggest U.S. credit-card company by purchases, slumped 11 percent after saying consumer defaults rose. Wachovia Corp. slipped as the bank posted a record quarterly loss.

``What we are seeing today is the product of the global economy rolling over and the second round effects from the credit crunch'' on earnings, said Kevin Lilley, a London-based fund manager at Royal London Asset Management which oversees about $63 billion. ``We are now seeing the impact that has had on consumer and business spending.''

Europe's Dow Jones Stoxx 600 Index lost 1.7 percent to 277.51 at 1:48 p.m. in London. Futures on the Standard & Poor's 500 Index fell 0.8percent, and Nasdaq-100 Index futures sank 1.7 percent. The MSCI Asia Pacific Index rose 1.6 percent, gaining for a second day.

...

Analysts estimate earnings for companies in the Stoxx 600 will drop 2.4 percent in 2008, Bloomberg data show. That's down from 11 percent growth predicted at the start of the year.

Profit at S&P 500 companies fell 16 percent in the second quarter, the fourth straight decline, according to analysts' estimates. That would be the longest streak in six years, Bloomberg data show.

National benchmark indexes retreated in all 18 western European markets. The U.K.'s FTSE 100 lost 1.7 percent. France's CAC 40 slid 1 percent, and Germany's DAX slipped 1.1 percent.

Vodafone dropped 14 percent to 128.05 pence. The company scaled back its sales forecast after slowing economic growth hurt revenue from phone calls. Full-year sales are now predicted to be ``around the bottom'' of the targeted 39.8 billion pounds ($79.7 billion) to 40.7 billion pounds outlook range.''

`Big Problem'

Telefonica SA, Europe's second-largest telephone company, tumbled 7.1 percent to 16.06 euros.

``The economic slowdown is starting to happen,'' said Andy Lynch, a London-based fund manager at Schroder Investment Management, which has about $10 billion. ``Now we've got a really big problem. We're not just talking about it. We're seeing it in the numbers'' in Vodafone.

Ericsson, the world's biggest maker of wireless networks, sank 9.5 percent to 68 kronor. Second-quarter profit fell 70 percent to 1.9 billion kronor ($320 million). Analysts surveyed by Bloomberg had estimated profit of 2.82 billion kronor and revenue of 48.1 billion kronor.

Apple, the maker of iPhones, dropped 10 percent to $149.73 in German trading. The company said fourth-quarter profit and sales will fall short of projections.

Texas Instruments shares slid 9.9 percent to $25.70 in Germany. Third-quarter profit will be as little as 41 cents a share on sales of at least $3.26 billion, the company said yesterday. Analysts in a Bloomberg survey had estimated earnings of 51 cents a share on sales of $3.56 billion.

STMicroelectronics

STMicroelectronics fell 6.2 percent to 6.76 euros. Infineon, Europe's second-biggest maker of semiconductors, retreated 9.5 percent to 4.74 euros.

American Express lost $4.29 to $36.01. The credit-card company withdrew its 2008 earnings forecast after second-quarter profit declined 37 percent on worse-than-expected consumer defaults.

American Express, Capital One Financial Corp. and Discover Financial Services shares have dropped by more than a third in the past year amid concern the lenders underestimated the depth of the U.S. slowdown.

Wachovia, Fannie

Wachovia, the U.S. bank that hired Treasury Undersecretary Robert Steel as chief executive officer two weeks ago, fell 7.4 percent to $12.20 in pre-market trading. The bank reported a quarterly loss of $8.9 billion and cut the dividend by 87 percent.

Fannie Mae retreated 8.4 percent to $12.95 in Germany, while Freddie Mac lost 5.6 percent to $8.26.

...

Dexia SA, the world's largest lender to local governments, plunged 12 percent to 8.39 euros, the steepest decline since at least 1996. Moody's Investors Service said the company's U.S. bond-insurance unit may lose its top credit rating.

Second-quarter profits at financial companies in the S&P 500 may fall 75 percent from a year earlier, the biggest drop among 10 industries, according to analysts' estimates compiled by Bloomberg last week.

/... http://www.bloomberg.com/apps/news?pid=20601085&sid=acY.J6y02JNc&refer=europe

It is an indispensable piece of eloquent drivel that must be read to understand the utter self-immolating stupidity that led us to this sorry state.

Mind if I post this piece in General Discussion?

:hi:

"great principles of leaders like Friedman and Reagan" :rofl:


That's what one gets for buying into a pure 'Faith Based' ideology. There's no research or science behind any of this
horse-crap. It's all 'gut feelings' and 'divine justification'.

I'm not a total fan of Keynesian Economics either, but, at least it's empirically based. (That means there's at
least a little bit of study backing it up.)

http://en.wikipedia.org/wiki/Keynesian

Cognitive Dissonance is not the inability to see past narrow ideologies. That is Myopia or a Myopic viewpoint.

Cognitive Dissonance is a physical and psychological tension caused by holding two conflicting ideas/thoughts in the conscious mind at the same time.

For example: Smokers can suffer from cognitive dissonance when they start considering what the cigarette they are smoking is doing to their bodies. They desire the cigarette, but they fear the consequences of smoking it. Cigarette Bad/Cigarette Good

In the visual arts it is referred to as Attraction/Repulsion. Some artists strive to achieve that effect.

In music it might be an infectious earwig (insert pop ditty here).

So, while one might agree with the author, one wishes that solid arguments were not prone to being undercut by obvious gaps in understanding basic principals.

So you aren't nit-picking. It's just that there isn't enough time in the world to fix something that fundamentally flawed.

9:41
Dow 11,406.68 Down 60.66 (0.53%)
Nasdaq 2,254.42 Down 25.11 (1.10%)
S&P 500 1,249.82 Down 10.18 (0.81%)
10-Yr Bond 4.069% Up 0.002
NYSE Volume 150,142,703.125
Nasdaq Volume 131,921,109.375

9:47
Dow 11,388.04 Down 79.30 (0.69%)
Nasdaq 2,253.14 Down 26.39 (1.16%)
S&P 500 1,249.07 Down 10.93 (0.87%)
10-Yr Bond 4.077% Up 0.01
NYSE Volume 258,942,359.375
Nasdaq Volume 210,354,312.5

09:45 am : The stock market opens on a low note after a large number of widely held firms reported disappointing earnings.

Apple (AAPL 150.00, -16.30), American Express (AXP 36.81, -4.10), Texas Instruments (TXN 24.10, -4.42) and Wachovia (WB 11.85, -1.34) all reported disappointing earnings or outlook. The latter company slashed its dividend to $0.040 from $0.375, and is exiting its general bank wholesale mortgage origination channel.

Not all earnings were negative. Caterpillar (CAT 74.86, +1.63) reported a 40% increase in earnings per share, topping estimates. DuPont's (DD 44.65, +0.67) result also came out ahead of expectations.DJ30 -58.05 NASDAQ -23.60 SP500 -9.88

Ricciardi and Gerstner have quite a history together. Gerstner is chairman of the Carlyle Group.


http://financialweek.com/apps/pbcs.dll/article?AID=/20080721/REG/237099671


Previous post on Carlyle
http://www.democraticunderground.com/discuss/duboard.php?az=show_mesg&forum=389&topic_id=3564305&mesg_id=3564580

United Parcel Service Inc. (UPS) posted a 21% decline in second-quarter net income as the company further cut its full-year earnings projections.

.....

The world's largest package-delivery company reported net income of $873 million, or 85 cents a share, down from $1.1 billion, or $1.04 a share, a year ago. In June, UPS lowered its earnings expectations to 83 cents to 88 cents a share, citing an "anemic" U.S. economy and an "unprecedented" surge in fuel costs.

Revenue rose 6.7% to $13 billion.

The latest mean estimates of analysts polled by Thomson Reuters were for earnings of 85 cents a share on revenue of $12.81 billion.

http://money.cnn.com/news/newsfeeds/articles/djf500/200807220827DOWJONESDJONLINE000346_FORTUNE5.htm

Highlights

Current:



30-day and 90-day vs.greenback:



30-day vs. Euro, Yen, UK Pound and Swiss Franc




Currency Comparison: http://members.shaw.ca/trogl/looniewatch.html

Detailed analysis: http://quotes.ino.com/exchanges/?r=CME_CD

Up-to-the-minute graph: http://quotes.ino.com/chart/?s=CME_CD.Y%24%24&v=s&w=5&t=l&a=1

Historical values http://www.x-rates.com/d/USD/CAD/data30.html

2008-04-08 Tuesday, April 8 0.985125 USD
2008-04-09 Wednesday, April 9 0.981162 USD
2008-04-10 Thursday, April 10 0.982511 USD
2008-04-11 Friday, April 11 0.978857 USD
2008-04-14 Monday, April 14 0.97972 USD
2008-04-15 Tuesday, April 15 0.982222 USD
2008-04-16 Wednesday, April 16 0.997904 USD
2008-04-17 Thursday, April 17 0.989413 USD
2008-04-18 Friday, April 18 0.99167 USD
2008-04-21 Monday, April 21 0.993443 USD
2008-04-22 Tuesday, April 22 0.996711 USD
2008-04-23 Wednesday, April 23 0.980969 USD
2008-04-24 Thursday, April 24 0.987069 USD
2008-04-25 Friday, April 25 0.983961 USD
2008-04-28 Monday, April 28 0.984446 USD
2008-04-29 Tuesday, April 29 0.987362 USD
2008-04-30 Wednesday, April 30 0.990884 USD
2008-05-01 Thursday, May 1 0.981643 USD
2008-05-02 Friday, May 2 0.982125 USD
2008-05-05 Monday, May 5 0.987654 USD
2008-05-06 Tuesday, May 6 0.996413 USD
2008-05-07 Wednesday, May 7 0.998004 USD
2008-05-08 Thursday, May 8 0.985319 USD
2008-05-09 Friday, May 9 0.993838 USD
2008-05-12 Monday, May 12 0.996314 USD
2008-05-13 Tuesday, May 13 1.0004 USD
2008-05-14 Wednesday, May 14 0.998203 USD
2008-05-15 Thursday, May 15 1.0004 USD
2008-05-16 Friday, May 16 1.00341 USD
2008-05-19 Monday, May 19 1.00867 USD


Current values

http://quotes.ino.com/exchanges/?r=CME_CD)

Market            Open   High    Low   Last  Change    Pct 
CD.Y$$ Cash     0.9988 0.9988 0.9935 0.9935 -0.0053 -0.53% 
CD.U08 Sep 2008 0.9975 0.9975 0.9920 0.9920 -0.0062 -0.62% 
CD.Z08 Dec 2008 0.9991 0.9991 0.9991 0.9976 +0.0052 +0.52% 
CD.H09 Mar 2009 0.9757 0.9757        0.9971 +0.0052 +0.52% 
CD.M09 Jun 2009 0.9880 0.9880 0.9880 0.9969 +0.0054 +0.54% 
CD.U09 Sep 2009 0.9865 0.9865 0.9865 0.9967 +0.0055 +0.55% 
CD.Z09 Dec 2009 0.9845 0.9845 0.9845 0.9965 +0.0056 +0.56%  

Other combinations: (http://quotes.ino.com/exchanges/?c=currencies)

Market          Open    High    Low     Last    Change   Pct 
AUSTRALIAN $/CANADIAN $ (CME:ACD)
ACD.U08 Sep 2008 0.9702 0.9702 0.9702 0.9702 +0.0002 +0.02%   
EURO/BRITISH POUND (NYBOT:GB)
GB.U08.E Sep 2008 (E) 0.7952 0.7952 0.7952 0.7965 +0.0022 +0.28%    
EURO/JAPANESE YEN (NYBOT:EJ)
EJ.U08.E Sep 2008 (E) 168.600 168.600 168.230 168.410 -0.175 -0.10%     
EURO/US$ (SMALL) (NYBOT:EO)
EO.U08.E Sep 2008 (E) 1.58750 1.58750 1.57980 1.58050 -0.00405 -0.26%    

Blather (from http://quotes.ino.com/exchanges/?r=CME_CD)

The September Canadian Dollar was higher overnight as it consolidates above the 62% retracement level of the May-June decline crossing at 99.80. Stochastics and the RSI are turning neutral to bullish hinting that sideways to higher prices are possible near-term. If September extends this summer's rally, the 75% retracement level crossing at 100.44 is the next upside target. Closes below the 20-day moving average crossing at 98.84 are needed to confirm that a short-term top has been posted. First resistance is the overnight high crossing at 99.98. Second resistance is the 75% retracement level crossing at 100.45. First support is the 10-day moving average crossing at 99.39. Second support is the 20-day moving average crossing at 98.84.


Analysis

Looks like this is actually going to be a greenback watch given the graphs on the TLP. Everything took a dip (rise on the graphs) about an hour ago.

On another note you may remember last week I was waxing rhaspodic on the Spanish banking system - how they had survived relatively unscathed. Turns out my optimism may have been based on window-dressing. No link, but if you're into this sort of thing, better take another look.

http://biz.yahoo.com/ap/080722/earns_halliburton.html

HOUSTON (AP) -- Halliburton's second-quarter profit fell about 67 percent from a year ago, when it recorded a nearly $1 billion gain from its split with former subsidiary KBR, but the oilfield services provider posted record revenue and said prospects look good for the remainder of 2008.


Income from continuing operations met Wall Street forecasts, and the company said it continued to expand its business globally.

Halliburton Co., which has corporate offices in Houston and Dubai, said earnings for the April-June period were $507 million, or 55 cents a share. That compares with year-ago profit of $1.53 billion, or $1.62 a share, which included a $933 million gain from the KBR Inc. separation.

snip:
Revenue rose to a record $4.48 billion from $3.73 billion a year ago, beating Wall Street's $4.25 billion average estimate.

//

headline spelling error


no comment

I was going to use "I'm Alright" by Kenny Loggins as my Theme today, but, now I can't.

Edit to add: Weren't they about broke back in 2002? Going to be 'de-listed'? Hmm... Could be part of my
'mental recession' I've been telediagnosed with. But, I seem to remember that.

Off to the Archives!

Ah, here it is... Jan 11, 2002 $5.45/share. Queue the Monty Python... "I'm feeling much better now."

:rofl:

'The economist John Kenneth Galbraith noted that "trickle-down economics" had been tried before in the United States in the 1890s under the name "horse and sparrow theory": "if you feed enough oats to the horse, some will pass through to feed the sparrows."'

http://en.wikipedia.org/wiki/Trickle-down_economics#Criticisms

"Let them eat shit"!

But my favorite riff on the movie:

http://www.truveo.com/Its-a-Wonderful-Life-Lost-Ending/id/723478644

:P

The president of the Federal Reserve Bank of Philadelphia today called for an interest rate hike to combat rising inflation, which he expects to get “uncomfortably high.”

“More attention should now be paid to measures of headline inflation in setting monetary policy,” a move that would necessitate an increase in interest rates, said Charles I. Plosser, a voting member of the Federal Reserve’s Federal Open Market Committee.

He spoke at the Philadelphia Business Journal Book of Lists Power Breakfast in King of Prussia, Pa.

Mr. Plosser also said that he expects that the economy will “grow this year, but at a slow pace, and the unemployment rate is likely to get worse before it gets better.”

http://www.investmentnews.com/apps/pbcs.dll/article?AID=/20080722/REG/245114035/-1/RSS02&rssfeed=RSS02

NEW YORK, July 22 (Reuters) - The dollar rallied sharply on Tuesday, boosted by a steep drop in oil prices and comments from a Federal Reserve official suggesting that U.S. interest rates may have to rise even before financial markets recover.

Remarks by U.S. Treasury Secretary Henry Paulson reiterating that a strong dollar was in the interest of the country also supported the greenback.

"U.S. officials are out in force this morning talking up the dollar and attempting to restore some stability in the financial markets," said Kathy Lien, chief strategist, at DailyFX.com.

"With U.S. Treasury Secretary Paulson saying 'a strong dollar is really very important' and Fed President Plosser calling for a rate hike before the economy turns around, it is not surprising to see the euro below $1.59," she added.

/... http://www.reuters.com/article/marketsNews/idINN2229655720080722?rpc=44

Housing prices are going down, stock prices are, too. Food and building materials held steady until gasoline went sky high.

How will increasing interest rates help unemployment, or help the economy grow? :shrug: I don't see his logic.

Seems to me if you want to stem the tide of inflation, keep the price of oil low. We can only do that as a nation by getting our green economy up and running with renewable resource energy, conservation and recycling.

:donut: and lurkers. First thing I heard this morning was frantic discussions about Hurricane Dolly in the Gulf and possibly hitting South Texas. Let me reassure you folks-we are not worried about it here in Texas. I didn't even buy an extra loaf of bread. Of course folks in south Texas are having to batten down the hatches, but no major evacuations and such. If you listened and believed those blathering talking heads-we should all be in church praying to God to spare us. Unless it stays for a while in the Gulf and strengthen, the only thing it will bring is cooler temps and some much needed rain. As far as off shore oil rigs, most are located off shore from Beaumont/Port Arthur Texas to Mississippi. There is no reason to blame this hurricane for gas price increases.

I have been getting Dr's appointment and reams of paperwork done for my daughter in preparation for her going off to college. Hubby invited her to dinner at our fav Chinese place. She came but said she wasn't hungry. I ask her why she came if she wasn't hungry. She was so sweet, she said she came because she wanted to spend some time with us. She has not been hungry and food hasn't been agreeing with her lately. I remember that I lost my appetite before I went to college. I wasn't scared or stressed out. I just wasn't hungry. It was the skinniest I has ever been in my life. My daughter told me it was preparation for the Freshman 15. I don't know, but she felt a little better when I mentioned my experiences.

And speaking of sending your child out into the world......She had us laughing out butts off last week. She went out to register voters (for Barack Obama) at a big Van's Band s tour of America. She got a free pass, but the lady took a shine to her and gave her a back stage pass. After a few hours of registering folks, she decided to go back stage. She was talking to the stage hand and musicians (that is her thing). SHe finish up and was walking off the stage when she noticed the mosh pit was moving toward her. She got off the stage hoping to get out of the way before it came to her. There was this guy on the edges that was trying to make it bigger. This guy that was over a foo taller and at least 120 lbs heavier than her came up to my daughter, called her a bitch and punched her in the eye. She asked him why did he do that. She said he really started cussing her. I asked her what she did then. She said she got angry when he kept cussing her so she hauled of and hit him in the eye......but she just didn't hit him....she cold cocked him. He hit the floor like the dumb bag of rocks he was. My daughter looked down to make sure he was breathing. She said the crowd was cheering but she said that she heard one guy say 'that's why none of my girl friends are from Texas'. She beat a retreat when the guy looked like he was coming too. She ended up with a black eye and a great story. I told her the only solace that I could give her was that that bozo probably felt worse and he damn sure wouldn't dare tell the truth as to how he got his black eye. Her Dad's neighbors laughed so had at the story and gave her a celebratory beer. Her guy friends have refused to go out with her because everyone gives THEM dirty looks when they see her eye. And me.... I feel better knowing that my little baby opened her first can of whoop ass and know how to use it (and I have the picture to prove it).

Happy hunting and watch out for the bears.....

WASHINGTON, July 22 (Reuters) - The euro is now overvalued, while the U.S. dollar's decline has brought it closer to its medium-term equilibrium in a decade, a top official at the International Monetary Fund said on Tuesday.

The IMF had previously said the euro was on the "strong side" of its fundamentals. Last week, the euro nudged above $1.60 <EUR=>, putting more pressure on European exporters who complain the currency's steep rise is bad for business, especially when global economic growth is slowing.

"In our view, the euro is now overvalued relative to medium-term fundamentals, while the currencies of many current account surplus countries, including China, remain substantially undervalued, despite a small appreciation in real effective terms," John Lipsky, the IMF's deputy managing director, said in a speech at the Brookings Institution.

"Following the post-2002 decline (in the dollar's value), we assess that the U.S. currency today is the closest to its medium-term equilibrium value in a decade," he added.

Lipsky noted that the decline in the value of the dollar was helping bring down the U.S. current account deficit, but that may be offset by record-high energy prices that were driving up surpluses in oil-exporting countries.

As a result, "new misalignments may be emerging and risks may be shifting," he said.

...

"Notwithstanding the dramatic claims by some, there is no doubt that the dollar will retain the central role, even though it may gradually share the stage with other currencies to a greater degree than at present," Lipsky said.

While the dollar will not be replaced as the dominant international currency, it is quite likely that eventually it will begin to share this role with the euro, he added.

He said the Chinese currency's <CNY=> importance could also increase as China's economy grows in size, but this would require full currency convertibility, a more open capital account and a track record of low and stable inflation.

In the first quarter of 2008, the dollar made up nearly two-thirds of central bank international holdings. Emerging economies, which have amassed trillions of dollars in reserves, have an average dollar share of around 60 percent, roughly unchanged since 2004.

"In the longer run, the demand for dollar assets and dollar reserves will depend on global developments," Lipsky said.

...

Also, more assertive policy tightening will be necessary in emerging economies where underlying inflation is picking up. In industrial economies, a timely adjustment will be needed as economies recover, Lipsky added.

/... http://www.reuters.com/article/marketsNews/idINN2229436320080722?rpc=44&sp=true

That would be the "recovery" slated to happen just when, Mr. Lipsky?

Index Last Change % change
• DJIA 11491.77 +24.43 +0.21%
• NASDAQ 2273.76 -5.77 -0.25%
• S&P 500 1259.09 -0.91 -0.07%

Before you ask, in this case (ASL = Artificial Support Level) and not (ASL = Age, Sex, Location) as found in
numerous chat rooms throughout the known Virtual Universe.

It seems when 1 set goes up, the other goes down. Thanks and thanks for doing this stock market thing every day.

This hasn't always been the case historically, but it has been recently.

there is also a gold to oil ratio that has seemed to fly out the window too.

For example, if they have noticed an inverse correlation between, say Procter and Gamble and GM, they will short GM on upward moves in P&G. The same applies for the move in gold versus the dollar. Just seven years ago I noticed no such correlation. Throughout the '90s you would also struggle to find these correlations consistently. These models have begun to break down because there is growing disagreement about the direction of these assets.

Index Last Change % change
• DJIA 11563.42 +96.08 +0.84%
• NASDAQ 2294.30 +14.77 +0.65%
• S&P 500 1272.06 +12.06 +0.96%


Looks like the "boost" set to recover anticipated fall this morning went off even though the expected losses this morning didn't materialize. Stagnant all day then up ~100 pts in the last 15 minutes of trading. (Like clock work) Still looks artificial.

There's not even a semblance of democracy or free markets remaining, it's official public policy that all fraudulent banks will be bought by the FED and shorting limits will be enforced.

The worst part of it all is that most Americans are so dumbed-down they aren't even aware of it. The greed monster public just asks the same question over and over: "Where can I safely put my money?" which is answered by the same propaganda masters who are robbing them blind, "Everything is safe, we're in control, don't worry about anything".

Americans live in a propagandized system of fascism where corporations rule the gov't and media and until Americans are willing to learn that, nothing will change.

Just what was the reason for this "irrational exuberance" in the last hour of the day?

The claim is Investors were "snatching up undervalued financials".

Wachovia is one... After claiming a HUGH LOSS!!! and job cuts only this morning.

But, from what I can see Air Carriers made up most of the gain. Understandable, I suppose.

If you ask me they're grasping at straws to make huge leaps based on a $3.00/bbl decline.

Also, financials were in trouble LAST August when oil was much cheaper. I guess they don't remember that.

panel and wind generator manufacturing, and turning invasive plants into biofuels for getting the economy really going?

I do know that the markets are manipulated by people that only care about making money themselves or making money on their image, aka cronies. I don't know where the markets are going either as propaganda is rapidly losing its effectiveness and actual reality will have to start creeping into people's consciousness.

for a week or two now?

Easy, easy money for nothin'
And your chicks for free.


Dire Straits (paraphrased...forgive)

Now look at them yo-yos thats the way you do it
You play the ponies on easy street
That aint workin thats the way you do it
Money for nothin and chicks for free
Now that aint workin thats the way you do it
Lemme tell ya them guys aint dumb
Maybe get a blister on your little finger
Maybe get a blister on your thumb

We gotta install microwave ovens
Custom kitchen deliveries
We gotta move these refrigerators
We gotta move these colour tvs

See the little faggot with the silk tie and the bluetooth
Yeah buddy thats his own hair
That little faggot got his own jet airplane
That little faggot hes a millionaire

We gotta install microwave ovesns
Custom kitchens deliveries
We gotta move these refrigerators
We gotta move these colour tvs

I shoulda learned to play the market
I shoulda learned to throw them dice
Look at that mama, she got it stickin in the camera
Man we could have some fun
And hes up there, whats that? hawaiian noises?
Bangin on computers like a chimpanzee
That aint workin thats the way you do it
Get your money for nothin get your chicks for free

We gotta install microwave ovens
Custom kitchen deliveries
We gotta move these refrigerators
We gotta move these colour tvs, lord

Now that aint workin thats the way you do it
You play the market on th' Wall Street beat
That aint workin thats the way you do it
Money for nothin and your chicks for free
Money for nothin and chicks for free

But I'll say, specimenfred, that this rally is the most daft waste of money I've seen in awhile.

and the failure of IndyMac really loosened so purse strings in addition to some sphincter muscles on Wall Street and DC. I think this whole rally is an effort to soothe some jangled nerves and lull folks into a false sense of security...just my $0.02.

Wachovia posts an 8.9 Billion dollar loss, layoffs of about 6500, and the Stock soars 28%, and the rest of the Financials are throwing a Meth Party.

And now we are told by a clueless, and ever evidently CRIMINAL Congress that the FNM/FRE Bailout is going to cost the Taxpayers no more than 25 Billion.

Yes, America, they DO think you are THAT Stupid.

If the true number was 25 Billion, FNM and FRE could PAY THEIR OWN WAY out of this mess.

Just more "Hide The Meltdown" nonsense, especially after the abysmal earnings that came out yesterday.

The Manipulated, Obnoxious CASINO our Markets have become is disgusting.

They are pushing on a string, and they know it.

It's becoming pretty clear to me that The Powers That Be are not focused on actually managing or solving the systemic problems that threaten the entire economic and finanical system of our country, but rather they are focused on managing the PERCEPTION of the American Public toward those problems.

And unfortunately, for the most part, it seems to be working like a charm.

Welcome to The United States Of Pleasantville.

Stock Up 7.8% After Hours.

Just Think, if an Asteroid hit the Planet, the Financials would be up 7000%!

Pass The Bong!

http://biz.yahoo.com/bw/080722/20080722006359.html?.v=1

The financials last week made some sense because most of them reported news that made the amount of difficulty they were facing more clear. JP Morgan, PNC, and Wells Fargo all had pretty decent numbers considering the fear that existed out there.

It lost nearly 9 BILLION FUCKING DOLLARS!!!

And it closed UP 27 FUCKING PERCENT!!!!!

Are people fucking nuts? Yes.

There are automated buying programs that will snatch up shares if the price falls below a certain threshold. It's a brainless act. Then there's the other brainless act: short buying/selling on bad news. Brainless, bloodsucking idiots who participated in this buying orgy deserve to lose their shirts.

:rofl: :spray:

get (s)elected come November...

Dow 11,602.50 Up 135.16 (1.18%)
Nasdaq 2,303.96 Up 24.43 (1.07%)
S&P 500 1,277.00 Up 17.00 (1.35%)
10-Yr Bond 4.0970% Up 0.0300
NYSE Volume 6,228,605,000
Nasdaq Volume 2,579,835,500

4:30 pm : The stock market posted a solid gain on Tuesday, after a late-day surge led by the financial sector helped investors shrug off worse-than-expected earnings reports from major tech and financial firms. A drop in crude prices, thanks to the easing of a tropical storm threat, also helped bring buyers to the table.

Tuesday looked like it was going to be an ugly session, as stocks opened 0.9% lower. But investors took the opportunity to buy the dip, encouraged by a drop in crude prices and a turnaround in financial stocks. The stock market ended the session with a gain of 1.4%, with six of the ten sectors posting a gain.

Smaller-cap names played a large role in the broader market's strength, especially within the tech sector -- the tech-heavy Nasdaq Composite rose 1.1%, compared to the 0.1% rise of the large-cap Nasdaq 100. The Russell 2000 spiked 2.8%, benefiting from a 22% surge in airline stocks, thanks to a handful of better-than-expected reports and the drop in crude prices.

Financials were at the center of the opening losses and the subsequent late-session rally. The sector fell 3.8% at the open after Wachovia (WB 16.80, +3.62) reported a larger-than-expected loss of $8.9 billion and American Express (AXP 38.12, -2.78) disappointed with its earnings and outlook.

Wachovia recovered from a loss of 11.6% after investors were encouraged that the company plans to raise $5 billion in capital using organic measures, instead of a dilutive capital raise. Wachovia enjoyed an added boost, settling with a gain of 27%, after a Deutsche Bank analyst indicated this may mark the bottom for Wachovia. The financial sector followed suit, surging to a gain of 6.6%, with notable strength in diversified banks (+13.6%). Exchange operators also posted a solid advance after CME Group (CME 366.77, +41.24) topped its earnings estimates.



The financial sector is now up 31.5% in the last week.

The industrial sector (+2.2%) also outperformed.

General Electric (GE 28.51, +0.82) announced that it is partnering with Mubadala, an Abu Dhabi firm, on initiatives including commercial finance, and clean energy research and development. Each company will provide $4 billion in equity over the next three years.

Strong emerging-market demand helped Caterpillar (CAT 75.00, +1.77) increase earnings per share 40% year-over-year, topping estimates.

UPS (UPS 62.11, +2.65) reported in-line earnings, relieving investors. The company called the economy "bleak," but kept its full year earnings forecast in-line with expectations.

Overall, earnings results were mostly better than expected, including beats by Biogen Idec (BIIB 71.29, +4.44), Baker Hughes (BHI 86.17, +1.81), DuPont (DD 45.22, +1.17), Lockheed Martin (LMT 103.72, +2.13) and UnitedHealth (UNH 26.18, +2.35). Merck (MRK 31.33, -4.00) reported better-than-expected results for its latest quarter, but continued concerns over its cholesterol drug Vytorin sent shares tumbling.

Large-cap tech was a pocket of weakness, with Apple (AAPL 162.02, -4.27) and Texas Instruments (TXN 24.44, -4.08) slipping on their respective earnings/outlooks. Memory chip maker SanDisk (SNDK 13.62, -4.31) fell 24% on its earnings report. The tech sector underperformed with a loss of 0.1%, although this is a substantial improvement from its session low when it was down 2.0%.

The energy sector (-2.2%) was a laggard, falling in conjunction with crude prices. DJ30 +135.16 NASDAQ +24.13 NQ100 +0.1% R2K +2.8% SP400 +1.4% SP500 +17.00 NASDAQ Adv/Vol/Dec 1912/2.56 bln/926 NYSE Adv/Vol/Dec 2227/1.57 bln/926

stupid...recovery.....ever. Let's see who has the balls to hold their positions over the weekend.

:smoke: