STOCK MARKET WATCH, Thursday 23 September

http://quotes.ino.com/chart/?s=NYBOT_DXY0

Last trade 88.20 Change -0.31 (-0.35%)

http://futures.fxstreet.com/Futures/news/afx/singleNew.asp?menu=economicnews&pv_noticia=MTFH17032_2004-09-23_10-44-23_KEM336473

GLOBAL MARKETS-Shares slip after Dow rout but bonds on a high

LONDON, Sept 23 (Reuters) - European shares fell, the yen came under pressure and government bond yields were depressed on Thursday as high oil prices continued to cast a pall over financial markets.

The fall in European equities came after U.S. blue chips posted their biggest one-day fall in seven weeks.

The price of U.S. crude ticked down on hopes the U.S. government might tap its strategic reserves, but was less than $1.50 below its record high of $49.40/ barrel as news came through of another attempted sabotage of Iraqi supplies.

The FTSE Eurotop 300 <.FTEU3> index of leading European shares fell 0.8 percent, with the German Dax and French Cac-40 <.FCHI> dropping by around 0.9 percent and Britain's FTSE 100 <.FTSE> outperforming with a 0.6 percent loss.

That was after run of gains had lifted the Eurotop 300 to a 12-week high on Wednesday.

The yen fell to a five-week low versus the euro and dollar, as dealers took advantage of a holiday in Japan to sell the currency of a country heavily dependent on energy imports.

"Oil prices are again on the minds of analysts and at such moments the yen tends to come in a negative spotlight," said Ian Gunner, head of foreign exchange research at Mellon Bank.

The dollar eased slightly versus the euro, having edged into the weakest half of its four-month trading range in the run-up to Tuesday's FOMC meeting, where any hopes for a pause in the U.S. rate cycle were dashed.

...more...

http://quote.bloomberg.com/apps/news?pid=10000086&sid=aQ7Mk612O.qk&refer=news_index

Crude Falls on Speculation U.S. May Loan Refiners Strategic Oil

Sept. 23 (Bloomberg) -- Crude oil fell from a record high in London on speculation the U.S. may use oil from its emergency stockpiles to keep refineries running after Hurricane Ivan curtailed supplies from the Gulf of Mexico.

Refiners asked to borrow crude from the Strategic Petroleum Reserve to recover losses related to the storm, Dow Jones Newswires reported, citing a person familiar with the matter. Traders who watch price charts said Brent crude, which gained 11 percent in the past week, was ``overbought'' based on a nine-day relative strength index of almost 70 yesterday.

``A loan of crude oil to refiners from the Strategic Petroleum Reserve is very different from a full- blooded decision to release oil from it,'' said Kevin Norrish, an energy analyst at Barclays Capital in London. ``I wouldn't be too carried away with today's drop. It's mainly a technical move.''

<snip>

The U.S. held 670 million barrels of oil in caverns in Texas and Louisiana as of yesterday. President George W. Bush, who has said the stockpiles should only be used in the event of an energy emergency, plans to fill the deposits to their capacity of more than 700 million barrels.

<snip>

U.S. crude oil supplies fell by 9.1 million barrels last week to 269.5 million barrels as companies shut rigs and platforms in the path of Hurricane Ivan. The decline left U.S. supplies at their lowest since Feb. 6 and only 5.8 million barrels higher than the week ended Jan. 23, which was the lowest since September 1975. It was the first time since 1988 that inventories had dropped for eight straight weeks.

...more...

http://www.reuters.com/financeNewsArticle.jhtml?type=bondsNews&storyID=6308601

U.S. says G7 to discuss forex flexibility with China

WASHINGTON, Sept 22 (Reuters) - A meeting of finance ministers and central bankers from the world's wealthy nations with Chinese counterparts on Oct. 1 will be a key opportunity to discuss currency and other economic issues, a senior U.S. Treasury official said on Wednesday.

"They will be discussing the global economy, the role of the G7 and China in the global economy," Treasury Under Secretary John Taylor said, emphasizing that the Washington meeting will be the first such gathering in recognition of China's growing clout.

"The engagement is very important," Taylor told reporters. "China is a large and growing economy and all of the countries in the G7 have indicated in statements previously how the importance of flexible exchange rates is one that they want to stress."

"So there'll be an opportunity to discuss monetary policy, fiscal policy and exchange-rate policy with the Chinese and the G7," Taylor added. "This is an historic first engagement with this kind of a grouping."

<snip>

China's yuan has been pegged at 8.3 to the U.S. dollar since 1995, a fact that U.S. manufacturing interests bitterly complain about because they say it gives Chinese imports a price advantage and swells America's huge trade deficit.

In response to questions, Taylor said China was taking necessary steps to move toward a flexible, market- driven system for its currency including allowing a larger foreign role in its banking sector and relaxing some capital controls.

...more...

http://www.reuters.com/financeNewsArticle.jhtml?type=bondsNews&storyID=6309399

Fannie Mae accounting errors 'pervasive,' US says

WASHINGTON, Sept 22 (Reuters) - U.S. mortgage finance giant Fannie Mae's (FNM.N: Quote, Profile, Research) misapplication of accounting principles was pervasive and reinforced by management, the company's regulator said in a highly critical report released on Wednesday.

"Desire by management to minimize earnings volatility was a central organizing principle in the development of key accounting principles," the Office of Federal Housing Enterprise Oversight said in a report on its examination of Fannie Mae's accounting.

...very short newsblurb...

reports due today:

Sep 23 8:30 AM
Initial Claims 09/18
report -
briefing.com anticipates 335K
market anticipates 338K
last report 333K
revised -

Sep 23 10:00 AM
Leading Indicators Aug
report -
briefing.com anticipates -0.3%
market anticipates -0.2%
last report -0.3%
revised -

It's MaeveDay!

Have a Great Day Marketeers!

8:29am 09/23/04 U.S. WEEKLY INITIAL JOBLESS CLAIMS UP 14,000 TO 350,000

8:30am 09/23/04 U.S. 4-WEEK AVG. INITIAL CLAIMS UP 2,000 TO 341,000

8:30am 09/23/04 U.S. CONTINUING JOBLESS CLAIMS RISE 5,000 TO 2.88MLN

http://cbs.marketwatch.com/news/newsfinder/pulseone.asp?dateid=38253.3543287037-821422820&siteID=mktw&scid=0&doctype=806&property=symb&value=&categories=&

U.S. initial jobless claims rise 14,000 due to Ivan

WASHINGTON (CBS.MW) - Initial claims for state unemployment benefits rose by 14,000 to 350,000 last week, largely because of a powerful hurricane that walloped the Gulf Coast, the Labor Department reported Thursday. A Labor Department spokesman said the increase in first-time claims in the week ending Sept. 18 was "mostly" due to the effects of Hurricane Ivan. The more-reliable four-week moving average of first-time claims edged higher to 341,000 from 339,000 in the latest week. Meanwhile, the number of former workers receiving unemployment benefit checks increased by 5,000 to 2.883 million in the week ending Sept. 11.

Sort of like the rest of the economy....:eyes:

Well, I have a better excuse for not being in this thread much anymore...I used to call it "being followed by a ghost" but in honor of the Yusuf Islam deportation, I'm going to call it "being followed by a moonshadow."

:hi:

Glad to see you and your shadow dropping in and sharing your knowledge and perspective on the UE numbers.

Are you sure that it wasn't Ivan the terrible?

Or are we just living with Attila the Hun? :evilgrin:

...somehow the BLS will inexplicably find a way to drop the UE rate another 0.1% for the month.

http://www.financegates.com/Items/finsec_2309-2004-up.html

Financial stocks fell on Wednesday on Morgan Stanley and Bear Stearns shares.

Morgan Stanley, the second-biggest U.S. securities firm, on Wednesday reported lower-than-expected third-quarter profit on lower fees from trading stocks and bonds. Net income fell to $837 million, or 76 cents a share, from $1.27 billion, or $1.15, a year ago. The bank was expected to earn 96 cents per share, according to a survey of analysts by Thomson First Call. Revenue rose 3% to $5.4 billion. "Reduced trading revenues resulted in lower quarterly earnings for the firm," the company said in a statement.

Also Morgan Stanley said today it has agreed to pay $19 million to settle charges by the New York Stock Exchange that it failed to meet prospectus delivery requirements and to settle claims against former broker Carlos Soto.

Bear Stearns Cos., the sixth-largest U.S. securities firm, said on Wednesday its fiscal third-quarter net income fell to $283.3 million, or $2.09 per share from $313.4 million, or $2.30 a year ago. The firm was expected to earn $277 million, or $1.98 a share, according to Thomson Financial. This is the first decline in more than a year, as investment banking revenue fell.

...more...

Did the finance sector actually "crash"? That headline seems a bit loud :shrug:

read... Did they give to the Dems or something? Someone trying to blame them for a bad market today? :shrug:

I can imagine that Steven Roach at Morgan Stanley is not very popular since he's been sounding a warning cry about our economy, but I don't get Bear Stearns. That's Kudlow's old company....

I'm just paranoid here...excuse my ravings...:silly:

Financial Sense Online has problems. No updates for awhile.

Do you think there might be a few more creeps under that rock?

:evilgrin:

like Craddick, DeLay, Santorum? Maybe some of Santorum's dogs and turtles?

:D

http://www.fxstreet.com/nou/noticies/afx/noticia.asp?font=Reuters&pv_noticia=MTFH17229_2004-09-23_10-55-35_L23535731

LONDON, Sept 23 (Reuters) - Gold edged up in Europe on Thursday morning, locked onto a firmer euro and indirect support from strong oil prices, with dealers looking for a possible test of resistance at $410 later in the day.

snip>

But comments that both inflation and inflation expectations had eased, led many to believe borrowing costs in the United States will rise more slowly in the coming months -- making an investment in gold more attractive.

Stronger oil prices were also leading some analysts to cast doubt on a further rise in U.S. interest rates in November.

"We are quite well underpinned by dollar weakness and the oil price rally," one gold dealer said.

snip>

more...

Huh? Sheesh, THAT didn't take long! Tune sure has changed since yesterday.

http://quote.bloomberg.com/apps/news?pid=10000103&sid=aupwFqf35ebw&refer=us

Sept. 23 (Bloomberg) -- Crude oil futures fell for the first time in six days as concern eased about disruptions at Russia's biggest oil exporter and hurricane damage in the Gulf of Mexico.

A cut in supply to China from OAO Yukos Oil Co., which is trying to settle a $7.5 billion tax dispute with the Russian government, will have only a marginal effect on the company's total exports, Chief Executive Steven Theede said yesterday. Concern about Russian supply and falling U.S. inventories after Hurricane Ivan pushed prices up 3.4 percent yesterday.

``As progress is made in clearing up these disruptions, the market may see some retracement,'' said James Cordier, president of Liberty Trading Group in St. Petersburg, Florida, in an e- mail. ``For next week, we'll look for lower prices.''

snip>

``We probably saw some selling come in after hitting $48,'' said Daniel Hynes, a resources analyst with Australia & New Zealand Banking Group Ltd. in Melbourne, who expects prices to remain near $48 in the coming week. ``There seems to be no absence of buyers at $45.''

more...

NEW YORK (Reuters) - U.S. stock futures pointed to a lower open on Wall Street on Thursday, extending the previous session's sharp fall, with rising energy prices feeding investor concerns about corporate profits and slower growth.

Despite oil prices near record levels, Deutsche Bank cut its recommendation on the global oil sector to "neutral" from "overweight,," reducing its ratings on Exxon Mobil (NYSE:XOM - news) and Royal Dutch/Shell (SHEL.L)(RD.AS) to "hold" from "buy."

-cut-

S&P 500 futures were down 0.80 point, below fair value accounting for dividends, interest rates and time to expiration on the contract, indicating the market would open slightly lower.

Dow Jones industrial index futures fell 17 points, while Nasdaq 100 futures dipped 2 points.

story

Stocks moving on Thursday: EXXON MOBIL, ROYAL DUTCH PETROLEUM CO.

a tossin' and turnin'
turnin' and tossin'
tossin' and turnin' all night!

http://www.nytimes.com/2004/09/23/business/23income.html

America's largest and most profitable companies paid less in corporate income taxes in the last three years, even as they increased profits, according to a study released yesterday.

Companies have always used write-offs, depreciation, deductions and loopholes to lower their taxes, but the study, by Citizens for Tax Justice and its affiliate, the Institute on Taxation and Economic Policy, suggested that tax breaks and subsidies enacted during the Bush administration had accelerated the decline in tax payments.

The study also cited the proliferation of abusive tax shelters and increasingly aggressive corporate lobbying as fueling the decline in tax payments by corporations.

snip>

The study, Corporate Income Taxes in the Bush Years, surveyed public filings by 275 of the nation's largest and most profitable companies, based on revenue from the Fortune 500 list of 2004. The 275 companies reported pretax profits from operations in the United States of $1.1 trillion from 2001 through 2003, the study said, yet reported to the Internal Revenue Service and paid taxes on half that amount.

Robert S. McIntyre, the lead author of the study, wrote, "The fact that America's companies were allowed to report less than half of their actual U.S. profits to the I.R.S., while ordinary wage earners have to report every penny of their earnings, has to undermine public respect for the tax system."

more...

http://www.lsj.com/apps/pbcs.dll/article?AID=/20040923/NEWS03/409230336/1001/news

Support available if layoffs happen
Groups address Federal-Mogul's possible closing

The 470 Federal-Mogul Corp. employees in St. Johns concerned about losing their jobs will have community resources available if the Southfield-based engine component manufacturer shuts down its plant.

Several community groups are looking at ways to help laid-off employees should they need financial assistance or new jobs.

The company said last week that it might close its St. Johns plant because hourly workers there overwhelmingly voted down wage concessions.

Clinton County Federal Credit Union will offer free workshops Oct. 21 on budget counseling and debt management.

...more...

sounds like extortion to me

http://quote.bloomberg.com/apps/news?pid=10000039&refer=columnist_gilbert&sid=agu_KDN4xDLQ

snip>

Twelve months ago, the U.S. Federal Reserve proclaimed that ``the risks to its outlook for inflation over the next several quarters are weighted toward the downside,'' and that monetary policy was likely to be on hold for a ``considerable period.'' Ten- year Treasuries yielded a bit more than 4 percent.

This week, the Fed accompanied its third rate increase in as many months by repeating August's statement that ``with underlying inflation expected to be relatively low, the committee believes that policy accommodation can be removed at a pace that is likely to be measured.'' Ten-year Treasuries yield, well, a bit more than 4 percent.

What's wrong with this picture? If Treasuries at about 4 percent are justified when the Fed is concerned about deflation, surely bonds have to offer an additional risk premium when the U.S. central bank is tightening monetary conditions and has removed the deflation word from its lexicon?

snip>

Betting on Weakness

Investors may be anticipating a ``hard landing'' for the Chinese economy as the government there tries to tame growth by curbing lending. The alleged ``soft patch'' in the U.S. may persist, making a mockery of growth forecasts in the world's largest economy.

And with cheap money doing most of the work of bolstering growth, central banks have little scope to push interest rates much higher, especially with the labor market still failing to create new jobs, Riches-Flores wrote. ``The constraints this situation places on monetary policy are an effective safeguard against a bond market meltdown.''

more...

There's that memory of mom & dad again - "Come on kids, time to go, the bus is leaving - with or without ya"

http://story.news.yahoo.com/news?tmpl=story&cid=1518&ncid=1518&e=13&u=/afp/20040922/bs_afp/un_economy_trade_040922181323

GENEVA (AFP) - China overtook the United States as a top global destination for foreign direct investment (FDI) in 2003 while the Asia-Pacific region attracted more investment than any other developing region, a UN report said.

China's strong manufacturing industry helped the country attract FDI last year worth 53.5 billion dollars, compared with 52.7 billion in 2002, the United Nations (news - web sites) Conference on Trade and Development (UNCTAD) said in its annual report on investment flows.

Meanwhile, foreign investment in the United States, traditionally the largest recipient of such money, plunged by 53 percent last year to reach 30 billion dollars, the lowest level in 12 years, according to data from UNCTAD's World Investment Report 2004.

snip>

"According to our analysis, FDI in China has not peaked although their economic growth rates have fallen," UNCTAD economist James Zhan told journalists.

more...

briefing.com

09:20 ET S&P futures vs fair value: -0.8. Nasdaq futures vs fair value: -0.5. Similar action in the futures market, which is to say there hasn't been much action... Leading Indicators report is due at 10:00 ET; consensus estimate is -0.2%... although most components within that report are known ahead of time, a negative print could still bother participants nonetheless as it would be the third consecutive monthly decline... with sentiment concerns mounting about the meaning behind a flattening yield curve, a third consecutive decline will contribute to concerns about the pace of economic growth

8:58AM: S&P futures vs fair value: -1.7. Nasdaq futures vs fair value: -2.0.

8:38AM: S&P futures vs fair value: - 1.9. Nasdaq futures vs fair value: -2.0. Futures market not that stirred up by the initial claims report, which was a bit worse than expected at 350K (consensus 338K)... Accordingly, expectations remain intact for a relatively flat start with an eye toward a slightly negative bias... Not much news of note this morning on either the research or corporate front, and thus, there doesn't appear to be much sense of conviction in the futures market

8:10AM: S&P futures vs fair value: -1.1. Nasdaq futures vs fair value: -1.5. A fairly calm futures market this morning with current indications pointing to a relatively flat start for the cash market... Initial Claims are at 08:30 ET; consensus estimate is 338K

ino.com

The December NASDAQ 100 was lower overnight as it extended Wednesday's decline, which led to a breakout below the 10-day moving average crossing at 1425.85 signaling that the rebound off August's low has come to an end. Stochastics and the RSI are overbought, diverging and turned bearish with Wednesday's decline signaling that a short-term top has likely been posted. If December extends Wednesday's decline, the 38% retracement level of the August-September rally crossing at 1393.45 is the next downside target. If December resumes its rally off August's low, the 75% retracement level of the June-August decline crossing at 1476.54 is the next upside target. The December NASDAQ 100 was down 1.00 pt. at 1410 as of 5:56 AM ET. Overnight action sets the stage for a steady to weaker opening by the NASDAQ composite index later this morning.

The December S&P 500 index was slightly higher overnight due to light short covering as it consolidates some of Wednesday's decline but remains below the 20-day moving average crossing at 1117.55 and the 25% retracement level of the August-September rally crossing at 1115.59. If December extends Wednesday's decline, the 38% retracement level crossing at 1105.25 is December's next downside target. Stochastics and the RSI are overbought and are turning bearish signaling that sideways to lower prices are possible near-term. Overnight action sets the stage for a steady to firmer opening when the day session begins later this morning.

http://www.usatoday.com/money/industries/banking/2004-09-23-fannie-fears_x.htm

snip>

"Now is the time for urgent action to establish the strongest possible regulator with all the authority and resources necessary to hold these enterprises to account," says Rep. Richard Baker, R-La., who chairs a House subcommittee that oversees Fannie Mae.

snip>

"It's a solid right hook that clearly gives them a black eye," says Ryan Batchelor, an analyst who follows Fannie Mae for the Morningstar investment research firm in Chicago. "The complexities of derivatives accounting are difficult for anyone to figure out."

snip>

Criticism of Fannie Mae, the second-largest financial firm in the nation after Citigroup, comes a year after an accounting scandal at Freddie Mac, its sister mortgage-finance company.

snip>

Federal Reserve Chairman Alan Greenspan has warned that the companies are now so big they represent a big financial risk to the economy and the government if they get into trouble.

snip>

Policymakers and Congress are debating whether a new agency is needed to police Fannie Mae and Freddie Mac, or whether OFHEO should step up its oversight of the companies.

:eyes: They're debating? How long has this been floating around in the news - well over a year! Greenspin was wishy-washy in his warnings - being careful NOT to tie in his precious derivatives. His only warnings were "They are not too big to fail" and the misconception by the public due to the GSE designation.

didn't it say that most of the crooked accounting was in derivatives and hedge funds?

Meanspin would never want those looked into. :grr:

Fannie Mae Financial Reports Questioned

http://www.forbes.com/business/feeds/ap/2004/09/22/ap1555429.html

Home mortgage lender Fannie Mae on Wednesday said the Office of Federal Housing Enterprise Oversight uncovered accounting inaccuracies that raise doubts about the company's previous financial reports.

Fannie Mae said the office, which started its review of Fannie Mae's bookkeeping more than a year ago, is questioning the company's use of a "cookie jar" reserve - delaying the recognition of revenue to smooth quarterly profits.

The office also said Fannie Mae did not comply with accounting rules in recording derivatives transactions and hedging activities, and in at least one instance deferred expenses to reach bonus compensation targets.

...more...

http://www.democraticunderground.com/discuss/duboard.php?az=view_all&address=102x845078#846026

UpInArms (1000+ posts) Wed Sep-22-04 01:00 PM
Response to Original message

46. did Snow-job just slip from the party line

Fannie Mae woes show strong regulator needed-Snow

http://www.reuters.com/financeNewsArticle.jhtml?type=bo...

MECHANICSBURG, Pa., Sept 22 (Reuters) - U.S. Treasury Secretary John Snow on Wednesday said a government review that found Fannie Mae (FNM.N: Quote, Profile, Research) used inappropriate accounting to iron out earnings volatility reinforced the need for a stronger watchdog for government-sponsored enterprises.

"These reports ... if they're credible, they underscore the importance of a strong safety and soundness regulator," Snow told reporters following a roundtable discussion with businessmen here.

Earlier on Wednesday, Fannie Mae's board said a government review charged that the country's No. 1 mortgage finance company had used improper "cookie jar" accounting to smooth earnings, and called into question past financial results.

"It's important to have a strong GSE regulator ... GSEs are a very important component of our national housing market, national mortgage market, and because they are such large entities they are also an important part of our total financial system," Snow said.

...more...

Isn't that against the deregulation mantra of no governmental intervention for the free markets?

were released in a press release a couple of days ago.

OFHEO describes its findings that "Fannie Mae

(1) applied accounting methods and practices that do not comply
with GAAP in accounting for the enterprise's derivatives ransactions and hedging activities,

(2) employed an improper 'cookie jar' reserve in accounting for amortization of deferred price adjustments under GAAP,

(3)tolerated related internal control deficiencies,

(4) in at least one instance deferred expenses apparently to achieve bonus compensation targets, and

(5) maintained a corporate culture that emphasized stable earnings at the expense of accurate financial disclosures."

OFHEO's report to the Board states that "the matters detailed in this report are serious and raise doubts concerning the validity of previously reported financial results, the adequacy of regulatory capital, the quality of management supervision, and the overall
safety and soundness of the Enterprise."

http://www.prnewswire.com/cgi-bin/stories.pl?ACCT=109&STORY=/www/story/09-22-2004/0002256462&EDATE=

here's some on Freddie:

http://quote.bloomberg.com/apps/news?pid=10000103&sid=aioRqJH8uldA&refer=us

Freddie Mac Says 2003 Net Income Declined 52 Percent (Update5)

June 30 (Bloomberg) -- Freddie Mac, the second- biggest U.S. mortgage buyer, said net income fell 52 percent in 2003, as it recorded fewer gains on financial contracts used to protect against swings in interest rates.

Net income decreased to $4.9 billion, or $6.79 a share, from $10.1 billion in 2002, or $14.18, according to Michael Cosgrove, a spokesman for the McLean, Virginia-based company. The fair market value of its assets surged 20 percent, or $4.5 billion.

Freddie Mac has delayed the results amid an overhaul of its financial reporting after an investigation found the company understated net income by $5 billion from 2000 through 2002. New Chief Executive Richard Syron, the former head of the American Stock Exchange who was hired in December, has won back investors as the company moves closer to fixing its accounting.

``It's another step on the way to regaining full, timely reporting capability,'' said Kenneth Posner, an analyst in New York at Morgan Stanley, the third-biggest underwriter of the debt of Freddie Mac and Fannie Mae. Posner, who spoke before the release, rates Freddie Mac ``overweight/attractive.''

Freddie Mac said it expects to release its 2003 annual report in September, followed in November by its shareholder meeting. The ``current objective'' is to announce 2004 earnings by March 31, though it didn't say when it would begin quarterly reports on a regular basis.

...more...

http://www.azcentral.com/arizonarepublic/business/articles/0923cdrates23.html

The Fed's series of gradual rate increases, which began in June, has prompted a surge in interest in certificates of deposit and other savings vehicles.

To capitalize on the increased demand, many lenders are introducing new types of CDs.

These include "bump-up CDs," "step-up CDs" and "index-linked CDs," all of which are designed to share some of the upside of rising rates or an improving stock market.

snip>

With more rate increases likely, financial advisers say some investors might be better off in a money-market deposit account, which allows investors to tap their funds quickly without penalty and carries rates that will adjust within weeks or months of a rate increase.

more...

Many profitable firms in past 3 years were able to skip paying

Some of the United States' biggest, most profitable corporations saw their federal income tax rates decline over the last three years, thanks to recent tax cuts, according to a liberal think tank in Washington.

The 68-page report issued Wednesday by Citizens for Tax Justice arrived at its conclusions by gleaning the annual reports of 275 companies on the Fortune 500 list that shared one characteristic: All reported profits in 2001, 2003 and 2003.

Among the study's findings:

-- Eighty-two of the companies, which collectively reported $102 billion in pretax U.S. profits, paid no income tax in at least one of the years; together these 82 firms collected $12.6 billion in tax rebates over the three- year period.

-- Although the nominal corporate tax rate is 35 percent, a variety of tax breaks helped the entire group of 275 firms to reduce their effective tax rate to 17.2 percent in 2003 from 21.4 percent in 2001.

<snip>

Separately, Internal Revenue Service figures show that total corporate income tax receipts fell to $128.8 billion in 2003, down 13.4 percent from 2001, when the comparable figure was $148.7 billion.

...more...

also see the chart at:

http://www.sfgate.com/cgi-bin/article.cgi?f=/c/a/2004/09/23/BUGSH8T2G51.DTL&type=chart

organizations. Yet rarely do you see such qualifiers from the more "conservative" think tanks and corporate tied organizations.:eyes:

that the AEI (American Enterprise Institute), The Heritage Foundation and the Olin Foundation have!

They are only interested in "facts"!

You are going to have to sign in at the nearest re-education camp, my friend :evilgrin:

Dow 10,080.94 -28.24 (-0.28%)
Nasdaq 1,885.07 -0.64 (-0.03%)
S&P 500 1,111.37 -2.19 (-0.20%)
10-Yr Bond 3.975% -0.014

9:40AM: Indices open mixed and near unchanged...not quite as bad as futures indications suggested...early action is very stable...news is light so far...A.G. Edwards (AGE 34.37 -0.10) reported earnings below expectations...equity brokerage businesses have been down...FedEx (FDX 84.71 -0.50) was downgraded by Lehman...Merrill Lynch upgraded Dollar General (DG ) to "buy"...the 10-year yield has held below 4%...

Did someone get a sneak preview of the Leading Indicators report?

http://www.nypost.com/business/19602.htm

snip>

Why Friday or Monday?

Because many professional traders have to close out their books three days before the last day of the quarter.

Monday is the third day before Sept. 30, which is Thursday. Buying stocks tomorrow will get traders a little in front of the Monday crowd. There's this natural tendency for pros to — how can I say this nicely? — cheat by pushing stocks higher and then proudly reporting their results to clients.

"It's called gaming," says Bill King, an excellent market strategist with M. Ramsey King Securities Inc., Burr Ridge, Ill. "They do it every month and it's even more important at the end of the quarter."

This rally will be temporary. The September jobs figures come from the government next Friday, so not too many of these cagey pros are going to get heroic in front of that number.

So, this is what it has come down to: With corporate earnings disappointing, the economy weakening, the Fed hallucinating and the presidential election distracting, anyone thinking of putting money in the stock market had better pick the precisely right hour of the right day.

more...

can bonds go lower when inflation is higher? How can mortgage rates go down when the Fed is upticking interest rates....:crazy:

More desperation to keep folks doing the re-fi's and buying houses?

Something just doesn't add up here, and since bonds have always mystified me maybe I'm missing something.

edit to add: JMHO, of course. :-)

They foresee a time when the Fed will have to pause, or possibly even take a step back on the rate increases due to the "reality" of our economic situation.

With the corporate earning warnings, rising oil and Ozy's point that Oct is usually a bummer month for the stock market anyway, there could very well be a "bailing out". That flight to quality and safe-haven of bonds.

I'm thinking the market is on the brink, especially as folks look at the reality of high oil (and other commodities)prices will have on growth and profits.

Why else would Shrub be contemplating tapping the strategic oil reserve that, until now, has been considered off limits?

10:00am 09/23/04 U.S. AUG. LEADING ECONOMIC INDICATORS DOWN 0.3 PCT

10:00am 09/23/04 U.S. AUG. LEADING INDEX FALLS FOR THIRD STRAIGHT MONTH

10:00am 09/23/04 WEAKNESS IN LEADING INDICATORS MORE WIDESPREAD IN AUG.

U.S. leading indicators off 0.3% in August

http://cbs.marketwatch.com/news/newsfinder/pulseone.asp?dateid=38253.4169444444-821429791&siteID=mktw&scid=0&doctype=806&

WASHINGTON (CBS.MW) -- The U.S. index of leading economic indicators fell 0.3 percent in August, the Conference Board said Thursday. This is the third straight monthly decline, the longest string since early 2003. The fall was slightly larger than the consensus forecast of Wall Street economists, who had expected a 0.2 percent fall. The coincident index rose 0.2 percent, while the lagging index fell 0.1 percent.

Dow 10,064.79 -44.39 (-0.44%)
Nasdaq 1,885.06 -0.65 (-0.03%)
S&P 500 1,110.09 -3.47 (-0.31%)
10-Yr Bond 3.970% -0.019

10:00AM: Stable trade with bias to the down side...S&P is now down about 1 point on the year, trading just below its closing level of 1111.92 on December 31, 2003...Nasdaq holds near unchanged even though SOX semiconductor index is down 0.5%...volume remains light as advancers are about even with declining issues...NYSE Adv/Dec 1192/ 1029, Nasdaq Adv/Dec 1012/1192

Wow! The S&P is only down 1 point for the year! Hurray!

"We've been through a recession. That means we're going backwards."

Yep, we are going backwards alright! In more ways than one.
Source: http://www.whitehouse.gov/news/releases/2004/08/20040830-4.html

http://www.cfo.com/article.cfm/3219966/c_3220119?f=home_todayinfinance

The telecom erases health coverage for 7,400 dependents of retired managers.

Stephen Taub, CFO.com
September 23, 2004

Lucent Technologies Inc. has cut the benefits of its retirees for the second time in a year, according to published reports.

The embattled telecom company informed employees by letter that it would no longer provide free health insurance for dependents of management workers earning salaries of $65,000 or more who retired on or after March 1, 1990, according to the Associated Press. From now on, those dependents must pay their own premiums.

snip>

Last September, Lucent announced the same exact cuts for managers who had retired during the same period but had a base salary of at least $87,000, according to the wire service. That change, which took effect on Jan. 1, affected about 9,000 dependents of 7,300 retirees.

"We're astounded that the Lucent executives would continue to take benefits away from dependents of retirees, since many retired based on Lucent's promise to provide health care benefits for them and their dependents," Ed Beltram, spokesman for the Lucent Retirees Organization, told the AP.

more...

http://www.washingtonpost.com/wp-dyn/articles/A43278-2004Sep22.html

Congressional negotiators beat back efforts yesterday to expand and preserve tax refunds for poor families, even as they added $13 billion in corporate tax breaks to a package of middle-class tax cuts that could come to a vote in the Senate today.

The House-Senate negotiations concluded last night with the approval of a five-year $146 billion tax cut, the fourth tax cut in as many years. By the end of this week, Republican leaders expect to pass extensions of three tax cuts primarily aimed at middle-income taxpayers -- a $1,000-per-child tax credit, tax breaks for married couples and a 10 percent income-tax bracket that was expanded last year.

But the fight over the child tax refunds during the negotiations revealed a split among GOP tax writers.

Senate Finance Committee Chairman Charles E. Grassley (R-Iowa) sided with Democratic leaders in pushing for changes in the child tax credit to ensure that millions of poor families would not see their credits shrink or disappear next year.

House Majority Leader Tom DeLay (R- Tex.) and House Ways and Means Chairman Bill Thomas (R-Calif.) opposed the move, as did Sens. Don Nickles (R-Okla.) and Trent Lott (R- Miss.). That effectively scuttled changes to existing law.

...more...

This is the first article I've seen that makes that statement! There's another thread here that I looked at earlier and the replies were saying that this keeps the "good" cuts while eliminating the corporate welfare.

I've got to go find that thread and read the article more closely!

http://southflorida.bizjournals.com/southflorida/stories/2004/09/20/daily35.html

A federal jury, following a five-week trial, has convicted the former comptroller of Americable International and other affiliated cable television companies on 72 counts of various frauds and money laundering.


The jury found Alice Pirchesky guilty after her trial before U.S. District Court Judge Patricia A. Seitz. The indictment had charged Pirchesky with offenses arising from what the government described as schemes to defraud the Internal Revenue Service, the Department of Defense and numerous cable television networks, then to launder the proceeds of the fraud.

The charges against Pirchesky arose from an investigation that focused on frauds conducted in the course of the operations of Americable and affiliated cable television companies controlled by co-defendant Charles Hermanowski.

On Jan. 30, 2002, the government arrested Hermanowski in Australia, where he remains in custody pending extradition proceedings.

The specific charges on which the jury convicted Pirchesky are: one count of conspiring to defraud the DOD, nine counts of submitting false claims to the DOD, nine counts of making false statements to the DOD, one count of conspiring to commit mail fraud by defrauding cable television networks, 12 counts of committing mail fraud by defrauding cable television networks, one count of conspiring to launder proceeds of a mail fraud scheme, 12 counts of laundering the proceeds of mail fraud, 12 counts of conducting financial transactions in excess of $10,000 with the proceeds of mail fraud, one count of conspiring to defraud the IRS and 14 counts of aiding and assisting the preparation of false tax returns.

...more...

Dow 10,055.79 -53.39 (-0.53%)
Nasdaq 1,887.37 +1.66 (+0.09%)
S&P 500 1,110.65 -2.91 (-0.26%)
10-Yr Bond 3.986% -0.003

10:30AM: Nasdaq bounces as SOX semiconductor index climbs into plus territory at +0.1%...Andrew Corp. (ANDW 11.60 +0.38) is up despite an earnings warnings, suggesting resilience in beaten- up tech sectors...oil is off 35 cents...action overall remains fairly stable...NYSE Adv/Dec 1257/1489, Nasdaq Adv/Dec 1107/1397

I'm thinking it might be his "crash/panic" scenario..in which case he says the Chimp goes down...

At least that is my prediction. Doesn't seem to want to go there.

http://quote.bloomberg.com/apps/news?pid=10000103&sid=aPuiYB55.8jw&refer=news_index

Sept. 23 (Bloomberg) -- Halliburton Co. said it may sell its KBR unit, which is being investigated for possible overcharges on a U.S. Army contract in Iraq and alleged bribery at a Nigerian venture, to boost its share price.

The unit would be sold or spun off to shareholders if Halliburton's stock remains undervalued relative to those of rivals in the oilfield-services business, Chief Executive David J. Lesar told analysts and investors at a meeting in Houston. He said KBR could be shed through a sale of shares to the public.

Lesar, 51, said the sale could take place once Halliburton gets final approval of a $4.2 billion asbestos settlement for KBR and another unit that was in bankruptcy reorganization. KBR has lower profit margins than Halliburton's oilfield business.

``With the problems they've had with KBR, it's not surprising'' Halliburton would seek to sell the business, said Barry Borak, director of energy research at Foresight Research Solutions LLC in New York. KBR ``is more of a construction unit, and people are not willing to pay as much as for a pure oil- services play.'' Borak doesn't own or rate Halliburton shares.

<snip>

KBR's Iraq contracts, which last year helped Halliburton surpass Schlumberger Ltd. as the world's largest oilfield- services company by sales, have become fodder for Democrats in criticizing the Bush administration. U.S. Vice President Dick Cheney preceded Lesar as chief executive at Halliburton.

Presidential candidate John Kerry on Sept. 17 accused the company of profiting in Iraq ``at the expense of American troops'' and questioned deferred compensation payments to Cheney.

...more...

Dow 10,064.86 -44.32 (-0.44%)
Nasdaq 1,889.01 +3.30 (+0.17%)
S&P 500 1,110.75 -2.81 (-0.25%)
10-yr Bond 3.986% -0.003
30-yr Bond 4.776% -0.001
NYSE Volume 504,268,000
Nasdaq Volume 573,662,000

11:00AM: Noteworthy on the actives list this morning are Fannie Mae (FNM 68.00 -2.69) which is undergoing an SEC investigation and was downgraded this morning by Wachovia, and Cyberonics (CYBX 23.57 +1.07), a medical devices firm which received conditional FDA approval for device to treat depression...otherwise, the list of actives shows many of the regulars for that list...retail and tobacco sectors are doing well today, while consumer financial and air services (FDX) are down...NYSE Adv/Dec 1500/1404, Nasdaq Adv/Dec 1371/1274

Advances & Declines
NYSE Nasdaq
Advances 1488 (46%) 1390 (46%)
Declines 1538 (47%) 1371 (46%)
Unchanged 198 (6%) 212 (7%)

--------------------------------------------------------------------------------

Up Vol* 183 (40%) 334 (62%)
Down Vol* 256 (56%) 179 (33%)
Unch. Vol* 15 (3%) 24 (4%)

--------------------------------------------------------------------------------

New Hi's 44 26
New Lo's 17 41

http://biz.yahoo.com/cbsm-top/040923/bd92c24c9890f17dea4e78c437271f77_1.html

snip>

"Oil's a story and it's going to remain a story until it drops probably 15-20 percent," said Barry Hyman, equity market strategist at Ehrenkrantz King Nussbaum.

snip>

By sector, oil services, integrated oil, natural gas, airlines and banks were the biggest losers. Gold, Internet and health care were among the gainers.

snip>

"When you see the price at these levels, even if you have a slightly down day the absolute number is a horrific number for the market because it plays into the scenario of expecting slower economic numbers and slower earnings going forward," Hyman said.

Evidence, he said, can be found in the pre-announcements seen so far, which have indicated that commodity prices and raw material costs are hurting the bottom line.

"That's something different from what we've seen in previous quarters. That tells you earnings are decelerating, the economy is still decelerating and the longer world commodity prices stay up here -- including energy -- it's a drag on growth."

The White House said the Bush administration is considering temporarily releasing crude oil from the Strategic Petroleum Reserve to Gulf Coast refiners that were hit by Hurriane Ivan earlier this month.

Smilodon diary:

Using Hurricane Ivan as an excuse (where have you heard this before?), the administration is openly considering tapping into the Strategic Petroleum Reserve in a bid to boost a flighty stock market in the days before the election. The SPR is an emergency reserve of petroleum meant to assist the country in case of a national emergency -- like a war or terroist attack. The SPR, now at more than 95% of capacity, is equivalent to about two months of US petroleum imports.

The Strategic Petroleum Reserve was in the news this spring when airline CEOs and Democratic politicians blamed the administration for artificially raising petroleum prices by buying oil for the SPR when supplies were tight. The administration has added 120 million barrels to the reserve since September 11 2001. It is now within 30 million barrels of its 700 million barrel capacity. President Bush's response was:


<snip>

The releases being contemplated from the SPR are token -- but the willingness of the administration to think about such releases may have a significant calming effect on commodity and stock markets.

Petroleum prices are back at a record high and stock brokers are now familiar with the effects on profit margins for airlines, transportion companies, and much of the rest of our economy. The upper limit on petroleum prices in a tight market is a big unknown. Rising interest rates make other investments a little more palatable and uncertainty about the election and the war in Iraq may encourage people to get out of the market for the short term.

The last thing the Bush administration wants in the days before the election is for our attention to fall back upon the economy. I know the stock maket does not equal the economy -- but does the media?

http://www.dailykos.com/story/2004/9/23/81831/3853

scheming from behind the curtain.

http://www.thestreet.com/pf/funds/jubak/10183854.html

While Delta Air Lines (DAL:NYSE) appears headed for a corporate nose dive, its pilots have opted to pull the financial ripcord.

Faced with a management that has decided to use the threat of bankruptcy as a negotiating weapon, senior pilots have been filing for early retirement by the hundreds and then taking their pension in a lump-sum payout.

Every retiring pilot takes a haircut: A senior pilot at Delta gets a one-time payment of about $300,000, only half of what he or she would receive in monthly pension checks over the lifetime of the pension. But the Delta pilots know that pilots at US Airways stand to receive only about 25 cents on each dollar of their promised retirement benefits as a result of that company's repeated bankruptcy filings.

Welcome to the bankruptcy economy, where companies and governments walk away from long-standing promises to workers, and where workers scramble to collect as much as they can now in fear that even less will be available tomorrow.

more...

His suggestion of moving out of the city and carrying a handgun are pretty friggen unrealistic, but consider the source.

http://www.lewrockwell.com/grichar/grichar48.html

snip>

In one of my bureaucratic lives, I worked at the Federal Emergency Management Agency (FEMA), one of the predecessors to the Homeland Security Department, and I knew and sometimes dealt with two of the six co-authors. Both Jane Bullock and George Haddow (refer to the link to the textbook to get their biographies) – were former senior FEMA employees, working closely with the Clinton Administration’s FEMA Director James Lee Witt. Bullock – a career government worker – apparently had enough political connections to be chosen as Witt’s Chief of Staff, and Haddow was sent over from the White House to work with her and Witt.

What is especially hilarious and ironic about their co-authoring this book is that Bullock and Haddow, along with Witt, did their utmost to squelch the use of taxpayer funds for anything resembling anti-terrorist preparedness measures while they were in FEMA’s "head shed." Most money was reprogrammed into various federal disaster relief accounts and used for such critical priorities as paying for municipal snow removal in places like North Carolina and Alabama. (Check out Jim Bovard’s Feeling Your Pain for more on FEMA’s wasteful spending during the Clinton-Gore years. Like the Clinton Administration, the current Bush policy is to have FEMA shoveling out tons of money to buy the votes of disaster victims.)

When the Congress, during the latter years of the Clinton Administration, started to funnel money to various federal departments and agencies for enhancing the nation’s preparedness against terrorist acts, Bullock and Haddow – who generally had their hands on virtually everything that went on at FEMA – were at the forefront in allowing employees to go on government-paid travel to talk about what types of anti-terrorist preparedness measures might be needed. Little, if anything, came of these boondoggle trips to meet with other federal, state, and local bureaucrats. And that was the way Bullock, Haddow and their political patrons wanted it. Activity abounded, but nothing substantive was done. And that was evident when 9/11 hit, with most bureaucrats (unsurprisingly) in the "sucking their thumb" mode, as the Bush Administration had done little to reorient government activities from Clinton Administration priorities.

snip>

Sadly, the federal end of the homeland security racket will continue as long as the money is appropriated by Congress. And folks like Bullock and Haddow, both of whom may have ambitions to get high-ranking posts in a Kerry Administration Homeland Security Department, will continue to milk the system for all it's worth. Guess which textbook on homeland security would be used for "in-house" training at the Homeland Security Department? Real homeland security for the populace resulting from current or future federal spending will definitely be extremely costly for whatever benefits might be obtained.

Given that the risks of being killed or injured in a terrorist attack in the U.S. are already quite low (despite the drumbeat of fear coming out of the Bush Administration), there are only a few ways you can really provide additional protection for yourself, your family and your property. The good news is that none of these measures are dependent upon the whims of homeland security bureaucrats, and you will not have to get milked further in the homeland security scam by spending $69.95 on a book to find out what measures you can take. I’ll suggest a few for free.

more... Just don't flame me for posting it. :evilgrin:

apart....

Fannie Mae probe ongoing, U.S. regulator says (FNM)
WASHINGTON (CBS.MW) -- A federal investigation into accounting of Fannie Mae (FNM) is ongoing, the federal agency that oversees the mortgage finance giant said Thursday. One day after the Office of Federal Housing Enterprise Oversight issued a critical report of Fannie's accounting practices, agency officials would not comment on whether Fannie Mae had overstated or understated its earnings.

And hi ozymandius, nice thread!

Dow 10,039.06 -70.12 (-0.69%)
Nasdaq 1,885.69 -0.02 N/A
S&P 500 1,108.87 -4.69 (-0.42%)
10-yr Bond 3.986% -0.003
30-yr Bond 4.778% +0.001
NYSE Volume 722,369,000
Nasdaq Volume 794,139,000

1:00PM: Oil prices have reversed and are now slightly higher, perhaps pressuring stocks, as the indices are dipping to their lows of the day amidst little sign of any solid support...NYSE Adv/Dec 1532/1619, Nasdaq Adv/Dec 1363/1490
12:30PM: Indices remain extremely stable...there are no major earnings releases after the close today, and none tomorrow morning at all...the economic calendar shows the August Durable Goods release and Existing Home Sales due tomorrow morning...durables has the potential to move the market, but more important will be the degree of any earnings warnings...NYSE Adv/Dec 1510/1601, Nasdaq Adv/Dec 1363/1470

Advances & Declines
NYSE Nasdaq
Advances 1436 (42%) 1303 (42%)
Declines 1729 (51%) 1597 (51%)
Unchanged 186 (5%) 197 (6%)

--------------------------------------------------------------------------------

Up Vol* 217 (32%) 340 (44%)
Down Vol* 443 (65%) 404 (52%)
Unch. Vol* 15 (2%) 19 (2%)

--------------------------------------------------------------------------------

New Hi's 61 31
New Lo's 21 47

http://www.321gold.com/fed/temp_bank_res.html

The Desk has entered the market announcing: O/N RP $5.750 billion
The Desk has entered the market announcing: 14-day RP $10.00 billion
Fed's Daily Securities Lending Thu 09/23/04

What's with the pattern of big 14 day repos on Thursdays lately?

:wtf: is a repo?

aka repo

http://www.treasuryinstitute.org/investments/products.asp

A repurchase agreement (repo) is a collateralized transaction between a bank or nonbank dealer and an investor. Structurally, a repurchase agreement is the sale of a security with a commitment by the seller to buy back the security from the purchaser at a specified price and on a specified date in the future.

The bulk of repo financing is done on an overnight basis and is called an overnight repo. However, a repo transaction can be set up for longer periods as well. One-week, one-month, and longer term financing positions are called term repos. These longer maturity financing positions should allow for a repricing of the underlying collateral as well as collateral substitution. The seller of a security in a repo agreement continues to receive all the coupon interest income, but will also be impacted by the changes in principal value on the security. The purchaser of a repo transaction receives a set rate of interest on the short-term investment. Repos are viewed as very safe investments because of the direct collateral lending link as well as the creditworthiness of the entity with whom the repo transaction is undertaken. Nonetheless, given the movement in market prices, many purchasers of repos ask for an over-collateralization of the transaction that equates to 102 percent or 103 percent of the face value of the securities that are on loan. The underlying securities in a term repo position should be repriced on a daily basis, with daily adjustments to collateral positions based on the change in the market’s price for the underlying security.

If used properly, repo positions offer investors the opportunity to keep surplus working capital cash invested without facing liquidity, credit, or price risk. However, maintaining an active repo book can be time consuming and can require a variety of safekeeping and security repricing capabilities. Moreover, the interest income derived from repo transactions is usually below other investment alternatives.

The Federal Reserve uses the repo market to implement monetary policy by purchasing or selling collateral (a reverse repo) with its primary dealers. If the Fed opts to buy collateral, it is in effect injecting funds reserves into the financial markets. If the Fed conducts a “matched sale” (a reverse repo), it is selling securities for its own account to drain liquidity from the financial markets. Accordingly, aggressive reserve shifts by the Fed could impact the supply and demand relationship of the repo market, which, in turn, could have an impact on short-term interest rates.

Didn't mean to post something as confusing as those damned repos without hanging out to answer any questions that might come up.

Sorry about that.

http://www.reuters.com/financeNewsArticle.jhtml?type=bondsNews&storyID=6318746

WASHINGTON, Sept 23 (Reuters) - Federal Reserve officials in August thought the period of late summer U.S. economic softness was likely to be "short-lived," easing the decision to raise interest rates, minutes released on Thursday show.

"Although the pace of economic growth had moderated in the second quarter, the Committee believed that the softness would prove short-lived and that the economy was poised to resume a stronger rate of expansion going forward," according to the minutes of the Aug. 10 Federal Open Market Committee meeting.

The Fed raised its key federal funds rate by a quarter-percentage point at the meeting, with the members noting that, given the rate's low level when judged against inflation, "significant cumulative policy tightening likely would be needed" to meet the Fed's goals of price stability and economic growth.

...very short newsblurb...

Guess they thought that by making this "short and sweet" (as in sacharinely diabetic) we would forget that for the past 3 years we have been: right on the cusp, turning the corner, any day now, in the next quarter ... going to be a really booming ... :puke: :puke:

oops! couldn't hold that artificial sweetener in my mouth any more - the gold-i-locks dreaming of tinkerbell has finally rotted my brain :crazy:

http://money.cnn.com/2004/09/23/news/economy/gao_outsourcing/

GAO report says impact on economy and job market from shift of jobs overseas difficult to measure.
September 23, 2004: 10:34 AM EDT


NEW YORK (CNN/Money) - Outsourcing of services overseas by

businesses has seen a significant percentage increase since 1997, but the impact of the job shift on the U.S. economy is still relatively small and difficult to measure, according to a new government report.

The report from the General Accounting Office, the bipartisan congressional agency that conducts research, found that U.S. imports of business, professional and technical services grew about 77 percent between 1997 and 2002 to reach $37.5 billion. During the same period U.S. exports of those same types of services grew 48 percent.

The study also found that the U.S. investment in low-wage countries such as India and the Philippines, that get much of the attention for outsourcing of jobs, particularly tech jobs, represented about 4 percent or less of total investments by U.S. businesses overseas.

As to the impact on the U.S. job market, the report referred to an earlier Labor Department report that found only a small fraction of significant layoffs by large employers can be directly attributed to overseas outsourcing of work. But it said there were gaps in that report, and it acknowledged that experts have different views about the effects of overseas outsourcing on U.S. workers.

"Some predict that offshoring may eliminate 100,000 to 500,000 IT jobs within the next few years," it said. "However some also predict economic benefits from offshoring, including lower prices, productivity improvements, job creation in sectors using offshored services and overall higher growth for the U.S. economy."

<snip>

"U.S. government data provide some insight into the trends in offshoring of services by the private sector, but they do not provide a complete picture of the business transactions that the term offshoring can encompass," said the report. "In particularly, they do not identify U.S. imports of services previously produced by U.S. employees."

The report does not make any recommendations on changes in policy that would limit offshoring of jobs or limit its impact on the economy. It basically takes a neutral position on the controversial subject, which has been one of the hot issues in this year's election.

...more...

But do not use the term Class Warfare because the haves and the have-mores need to keep it under wraps or it won't work.

http://www.napanews.com/templates/index.cfm?template=story_full&id=9A4D9D60-34ED-49F1-AEC0-54EAB8E0953D

One subject the Robert Mondavi Corporation is not ready to discuss in detail is layoffs.

One analyst predicted that as many as a third of the company's approximately 1,100 workers would be laid off as the divestiture goes forward.

Dennis Joyce, chief operating officer for lifestyle brands at Mondavi, said it was too early to talk about the exact number or nature of the layoffs.

"We're working things out right now," said Joyce, who added the moves would likely be made within a month.

"Needless to say," Joyce pointed out, "It's the employees that make the company so great. We're trying to work through those issues as quickly as possible."

In a news release last week, the company said layoffs would strike in both the "luxury and lifestyle" sides of the company.

...more...

http://www.angelfire.com/ab/trogl/looniewatch.html

Highlights.



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

2004-08-23 Monday, August 23 0.765404 USD
2004-08-24 Tuesday, August 24 0.766401 USD
2004-08-25 Wednesday, August 25 0.76646 USD
2004-08-26 Thursday, August 26 0.762021 USD
2004-08-27 Friday, August 27 0.763126 USD
2004-08-30 Monday, August 30 0.759071 USD
2004-08-31 Tuesday, August 31 0.759532 USD
2004-09-01 Wednesday, September 1 0.765052 USD
2004-09-02 Thursday, September 2 0.769527 USD
2004-09-03 Friday, September 3 0.768935 USD
2004-09-07 Tuesday, September 7 0.776277 USD
2004-09-08 Wednesday, September 8 0.774893 USD
2004-09-09 Thursday, September 9 0.776518 USD
2004-09-10 Friday, September 10 0.776398 USD
2004-09-13 Monday, September 13 0.769231 USD
2004-09-14 Tuesday, September 14 0.773994 USD
2004-09-15 Wednesday, September 15 0.770001 USD
2004-09-16 Thursday, September 16 0.774353 USD
2004-09-17 Friday, September 17 0.769112 USD
2004-09-20 Monday, September 20 0.772559 USD
2004-09-21 Tuesday, September 21 0.776036 USD
2004-09-22 Wednesday, September 22 0.780275 USD
2004-09-23 Thursday, September 23 0.78235 USD


The loonie broke through the psychological barrier of 78 cents. People are going to start whining about the high loonie affecting exports. Basically, no news is good news.

The only thing it lost ground against was the Aussie.

and congratulations on the passing of that barrier (from one who wishes your currency were hers)

:thumbsup:

http://www.reuters.com/financeNewsArticle.jhtml?type=bondsNews&storyID=6319165

CHICAGO, Sept 23 (Reuters) - The New York Stock Exchange has suspended trading in the common stock of Interstate Bakeries Corp. (IBC.N: Quote, Profile, Research) due to bankruptcy filing by the maker of Twinkies snack cakes and Wonder Bread, the exchange said on Thursday.

"The NYSE noted the overall uncertainty surrounding the bankruptcy process, as well as the current delay in filing of the company's audited financial statements for fiscal year 2004 due to previously announced restatement, financial reporting, and other issues," the exchange said in a news release.

...a bit more...

My mother is addicted to Twinkies. I refuse to have anything on my table other than Wonder Bread. They're both commodoties.

Damn these healthy eaters.

Dow 10,038.90 -70.28 (-0.70%)
Nasdaq 1,886.43 +0.72 (+0.04%)
S&P 500 1,108.36 -5.20 (-0.47%)
10-Yr Bond 4.028% +0.039

briefing.com

Close: For the most part, it was an uneventful session on Thursday as the major indices held to relatively narrow ranges and traded in mixed fashion following some uninspiring economic data... To that end, initial claims for the week ended Sept. 18 rose 14K to 350K (consensus 338K) while the Leading Indicators report for August showed a 0.3% decline (consensus -0.2%), marking the third consecutive month in which that report contained a negative reading...

The latter understanding, along with misgivings about the meaning behind the flattening yield curve, contributed to concerns about the pace of economic activity that kept buyers disinterested for most of the day... Oil prices proved to be another deterrent... Before the start of trading, it looked as if there might be some relief on the pricing front as reports circulated that the U.S. was going to release supplies from the Strategic Petroleum Reserve... However, when it was subsequently reported that any release would involve only a small quantity, supply concerns quickly revved up again and crude futures hit new contract highs at $49.00/bbl before settling the day up $0.11 at $48.46...

Strikingly, integrated oil stocks didn't benefit from the bump in prices as a Deutsche Bank downgrade of the oil sector to Neutral from Overweight, and a related downgrade of ExxonMobil (XOM 47.76, -1.10) to Hold from Buy, prompted some profit taking activity... The weakness in the energy sector weighed on the S&P, which also encountered resistance from pockets of weakness in the basic materials, industrial, financial, and consumer discretionary sectors - all of which fits with the underlying concerns regarding the pace of economic growth...

ino.com

GENERAL STOCK MARKET COMMENT: The stock indexes closed weaker today in quiet trading on some earnings disappointments this week and crude oil prices nearing $50.00 per barrel. Look for choppier trading in the indexes heading into the November U.S. presidential election.