STOCK MARKET WATCH, Wednesday 14 December

SUMMARY

Last week we said, "Taking into consideration the current technical readings and price pattern, two most likely scenarios for next week would be either a minor pullback and another push upwards, or a continuation of the advance that started on Thursday--assuming oil/bond prices continue to behave. The odds favor slightly the first scenario due to the triple top in the McClellan Oscillators.."

We gave you two scenarios last week for the next 5-10 trading days, assuming that oil/bond prices continued to behave. As it stands right now, scenario #1 is halfway unfolded. We got the pullback, and the technical indicators held above the zero line. Unless higher interest rates/oil prices hold the market down, we ought to see higher prices as scenario #1 comes to its full completion.



more...


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

NEW YORK - Natural-gas prices surged to an all-time high Tuesday, as cold weather in the United States and ongoing disrupted production in the Gulf of Mexico caused traders to worry that supplies of home-heating fuels will be tight this winter.

Nymex natural gas for January rose as high as $15.78 per 1,000 cubic feet then settled at $15.378, up 53.7 cents from Monday's settlement. The previous record close was $14.994 on Dec. 8.

"The last thing consumers needed to have happen is a cold snap early in the season," said John Kilduff, analyst at Fimat USA, noting that temperatures have been well below normal in many parts of the country. "With a quarter of natural gas off-line in the Gulf, it's just stoking the winter supply fears."

By Wednesday, a storm will bring snow to the upper Midwest, while an ice storm will move up the east coast by Thursday, according to Accuweather forecasters. December has been colder than usual so far, and many forecasters are saying below-average temperatures will persist throughout the winter.

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10:00am 12/14/05 CRUDE OPENS 7 CENTS LOWER AT $61.30 A BARREL

10:00am 12/14/05 NATURAL GAS OPENS 3% LOWER AT $14.90

WASHINGTON (Reuters) - U.S. retail sales rose a smaller-than-expected 0.3 percent in November but fell when excluding a surge in auto purchases, setting the stage for what could be a disappointing holiday shopping season, government data showed on Tuesday.

While sales were not as strong as some had hoped, much of the weakness was due to a 5.9 percent drop in sales at gasoline stations in November -- a direct result of the decline in gas prices last month and hardly bad news for consumers.

"While the drop in gasoline prices makes these sales figures look bad, it is of course good news for spending in real terms, which is what really counts," said Paul Ashworth, senior international economist at Capital Economics.

-cut-

When the drop in sales at gasoline stations is excluded, retail sales rose 1.0 percent in November.

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Retail sales in the US have risen, but details in the data leave doubt about the strength of consumer confidence.

Commerce Department figures showed a rise in sales of 0.3% in November - but without motor vehicle sales, the number changed to a fall of 0.1%.

-cut-

Early reports from US retailers last weekend indicated that, with less than two weeks left before Christmas, stores were having to increase discounts to pull in shoppers.

more...

http://news.bbc.co.uk/2/hi/business/4526006.stm

Maybe it's time for another tax cut for the rich, to jump start those lazy shoppers.

:donut: Fastense, when did YOU start receiving GOP talking points! Just when are these folks going to realize that they are killing off the middle class, and without us folks stoking the engine, it just won't hum. Middle class is in hock up to their gills and can't do more without good paying jobs.

The sad part is that the repukes believe it would work.

Richard Daughty -- World News Trust
email: scgcjs@gte.net

Things are getting so weird that even my extreme Mogambo paranoia (EMP) seems oddly inadequate. For example, gold is going bananas! Several people asked me what this could possibly mean, but, as usual, I have no idea. It's like when people ask why my wife, who is such a nice, pretty person, would marry a disgusting creep like me or why she hasn't at least have killed me long ago; it is weird, but that is all I know. But I DO know that there are a hell of a lot of people sitting on some big, big, big positions on the short side of gold (and mining shares), and these hapless chumps are getting crushed, I mean freaking crushed, with gold is soaring like this. The statistic that keeps pounding, pounding, pounding, in my tiny little Mogambo brain (TLMB) is that there is, reportedly, a short position in gold, measured in umpteen jillions of ounces, that is 78 times as big as all the gold in the whole damned world! That means that one guy has some gold, and 78 guys THINK that they own some gold, but they don't. All they have is a slip of paper that says, "I owe you gold," and signed by somebody. Somebody who does not, obviously, have any gold to give!

What I am confessing is that that people who sent money to The Mogambo Gold Depository (actually a shoebox in the back of my closet) and think that they have some gold, just because I promised that I would store gold for them, are screwed. I always MEANT to go out and get some gold like I said I would, but one thing led to another, and then there was that drunken brawl at Paula's Passion Pit of Prancing Princesses that I take full responsibility for, and am still paying for all the damages, so don't get me wrong. But the gold you thought I was storing for you? Sorry. Bummer, huh?

Fortunately, I have taken the wise precaution of wording the deposit contract to mimic the Comex rules, and now, since I am on the hook to lose a lot of money, I can merely cancel their stupid contracts and give them their original money back! Without interest! Hell, I might just keep the money for myself to make up for MY looming losses from the lawsuits that will soon be filed. It's the American Way! But the point is that people who erroneously think they have gold safely stored away someplace, and who have not seen the 60 Minutes show where they expose this dirty little Mogambo scam of mine, are all out dancing in the streets, thinking they are rich rich rich, and they're buying drinks for everybody, and they're all laughing and having fun. And every time gold goes up by another few bucks, everybody is even happier and they start having even MORE fun!

So, in a strange yin-yang thing, you can bet that this rise in gold has lots and lots of other people (namely the people who are short all that gold, and the central banks who lent all that gold to bullion banks, who sold it long ago at prices far below this, and are now net short in gold) are in a real panic. Now all those shorts are rushing about in desperation and panic, including elected officials, banks, bullion banks, central banks and especially the Federal Reserve, which is ALSO nervous about all that gold belonging to the United States that has been lent out to guys who can't pay it back! Yow!

more

http://worldnewstrust.org/modules/AMS/article.php?storyid=1858

http://www.gata.org/JPMFailsToReport.html

JP Morgan Fails to Report $45 Billion in Gold Derivatives to the SEC

http://www.gata.org/JPMFailsToReport.html

The following three current documents indicate that JP Morgan Chase has reported to the Office of the Comptroller of the Currency $45,234 Million in total gold derivatives as assets under the control and use of JP Morgan Chase however they have not accounted for these gold derivative assets in either their SEC form 10Q March, 31, 2002 or their 2001 Annual Report. This finding implies that JPM shareholders have far greater risk than previously disclosed by the company.

I. Office of the Comptroller of the Currency, March 31, 2002 - Derivatives Report http://www.occ.treas.gov/ftp/deriv/dq102.pdf

<snip>

II. SEC (Form 10-Q) March 31, 2002
J.P. MORGAN CHASE & CO
CONSOLIDATED BALANCE SHEET (in millions, except share data)


jpmc/ir/financial/10Q_3Q01.pdf


A word search of the SEC 10-Q March 2002 Quarterly report (above) shows that JPM has neglected to report their gold derivatives as such since a word search of the document revealed no occurrences of the word “gold”. In the Table excerpted below, from page 9, there is no book entry sufficiently large enough to account for the OCC gold derivatives either as an asset or a liability. The “Debt, Equity, Commodity and Other Contracts” $15,799 <*> entry is certainly not large enough nor is the same category liability of $11,865 <**>listed further below.

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http://www.prudentbear.com/archive_comm_article.asp?category=Guest+Commentary&content_idx=49492

snip>

To the world-improver set, confident they can push the right buttons and pull the right levers, the gold standard is nothing more than a straitjacket. To those who see gold’s charms, that is precisely its chief merit. You see, the gold standard checks the creation of new money.

If every dollar must be backed by a certain amount of gold, then you cannot create money out of thin air. The gold standard says you must have the gold first. Governments find it harder to wage war, dole out entitlements and build public works with a gold standard tying them down. Banks can’t lend as much money; hence they can’t make as much money. This is why the banking interests of this country backed the creation of the Federal Reserve. They appreciated the value of a good cartel.

It’s a bit like a cash-only bar. People with little money who like to drink tend not like cash bars.

The problem, Mr. Sameulson, is not that there was not enough gold. The problem was too many dollars. When Roosevelt ordered Americans to surrender their gold coins in the spring of ’33, he was not saving capitalism. He was burying it.

Capitalism - or free markets - depends on contracts. Contracts are nothing but promises. When contracts cannot be enforced, then you join the world of banana republics and post-Soviet style looting. The system breaks down. So it was whenever the country reneged on its promise to back its own currency with gold.

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

Last trade 89.88 Change -0.50 (-0.55%)

Tomorrow's Economic Releases: US Trade Deficit Expected To Shrink On Lower Energy Prices

http://www.dailyfx.com/story/calendar/key_events/5475_tomorrows_economic_releases_us_trade_deficit_expected_to.html

US Trade Balance (OCT) (13:30 GMT, 8:30 EST)
Consensus: -$62.8B
Previous: -$66.1B

Outlook: October’s US trade deficit is expected to contract from September’s $66.1 billion. Although historic crude oil imports show that volume generally ticks up after receding in September, prices have also receded in October of this year, which means that the overall impact on the trade balance could remain relatively unchanged from last month. In addition, the end of the Boeing strike on September 30th probably indicates that civilian aircraft exports were back up in October as the plane manufacturer worked off the backlogs that accumulated during the four-week strike. The recent dollar rally also took a pause in October after the greenback had gained about 5% against the other majors in September. In total, these factors should bring October’s trade balance within close proximity of the $62.8 billion median economist expectation.

Previous: The US trade deficit rose by more than expected to a record $66.1 billion in September as imports rose by 2.4 percent while exports dropped by 2.6 percent in the month. The surge in imports was, understandably, from energy products. What is slightly surprising is that crude oil imports actually dropped in the month. Although the average price of imported crude oil rose by 8.9 percent, the volume imported actually dropped by 14.5 percent, which created an overall fall. The main driver of import growth in the month was actually natural gas. Meanwhile, the dramatic drop in exports, which was the largest seen in four years, was almost entirely due to the $2.4 billion decrease in civilian aircraft exports caused by the Boeing strike. This left the goods deficit at $71.1 billion, up from $64.1 billion in August. Although this surprise did end up being a negative effect on third quarter GDP revisions, the growth rate was till revised up to 4.3 percent based on positive revisions in other areas such as private investments and inventories.

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Fed Dovishness Causes Dollar Weakness

http://www.dailyfx.com/story/dailyfx_reports/daily_brief/5477_fed_dovishness_causes_dollar.html

The yen gained more than 100 points on the dollar in Asia trade on Wednesday, as a dovish FOMC statement triggered carry trade liquidation sales from spec and real money accounts alike. On Tuesday in New York, the Federal Reserve Bank of New York raised rates to 4.25% as expected, but in the accompanying statement, US monetary officials noted that further tightening is “likely to be needed” but is not assured leaving open the possibility that Fed may pause after one last rate hike in January. With currency markets having priced in 4.5% US short term interest rates, many participants chose to lock in profits on their long USD/JPY positions which have proven to be extremely lucrative in the past three months.

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8:30am 12/14/05 U.S. OCT. TRADE GAP WITH CHINA RECORD $20.5 BLN

8:30am 12/14/05 U.S. OCT. TRADE GAP WELL ABOVE CONSENSUS OF $62.9 BLN

8:30am 12/14/05 U.S. OCT. TRADE GAP WIDENS 4.4% TO RECORD $68.9 BLN

8:30am 12/14/05 U.S. NOV. PETROLEUM IMPORTS FALL 8%

8:30am 12/14/05 U.S. NOV. IMPORT PRICES LARGEST DROP SINCE APRIL 2003

8:30am 12/14/05 U.S. IMPORT PRICES FALL 1.7% IN NOVEMBER

I have the feeling that some wealthy folk are going to loose some big bucks before this is all over with.

Doesn't make any sense, must be the tangled web of lies day after day, month after month, report after report, may have finally caught up with them. Wonder how many report revisions we'll be seeing in the near future.

my conservative friends are going to hate you for teaching me the Laffer curve. I intend to thow it in their face everytime these reports come out :spank: :evilgrin:
Rest assured there will be many more 'surprised' economist. Thank GOd for this thread.

The truth hurts sometimes, but does far less damage than perpetuating a lie.

To be honest, most conservatives who still claim the virtues of supply-side economics don't even understand what it's based on (Laffer's curve) and confuse it with "free-trade", "free- markets", "survival of the fittest", "kill the beast", "social Darwinism" and the rest of that conservative BS.

Gotta run for the day to "supply some labor". Maybe I'll submit today's bill on a cocktail napkin. :hi:

that martini......kill and drag home a big bear...

10:31am 12/14/05 DOE: GASOLINE STOCKS UP 1.8 MILLION BARRELS IN THE LAST WEEK

10:32am 12/14/05 DOE: DISTILLATE STOCKS DOWN 100,000 BARRELS LAST WEEK

10:31am 12/14/05 DOE: CRUDE INVENTORIES UP 900,000 BARRELS LAST WEEK

10:38am 12/14/05 API: GASOLINE SUPPLIES UP 412,000 BARRELS

10:37am 12/14/05 API: DISTILLATE SUPPLIES DOWN 3.54 MILLION BARRELS

10:38am 12/14/05 API: CRUDE OIL STOCKS DOWN 1.94 MILLION BARRELS

http://today.reuters.com/investing/financeArticle.aspx?type=bondsNews&storyID=2005-12-14T120100Z_01_NAT001917_RTRIDST_0_ECONOMY-MORTGAGES-URGENT.XML

NEW YORK, Dec 14 (Reuters) - U.S. mortgage applications decreased last week, dragged down by a sharp decline in home refinancings to a 17-month low, as interest rates held near the highest levels of the year, industry trade group figures showed on Wednesday.

The Mortgage Bankers Association said its seasonally adjusted index of mortgage application activity for the week ended Dec. 9 decreased 5.7 percent to 619.3 from the previous week's 656.7 reading.

Borrowing costs on 30-year fixed-rate mortgages, excluding fees, averaged 6.28 percent, down 0.04 percentage point from the previous week's 6.32 percent.

The group's seasonally adjusted index of refinancing applications dropped 9.7 percent to 1,441.8 compared with 1,596.4 the previous week. Volume was at its lowest level since the week ended June 25, 2004, when the index reached 1,386.9.

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and the updated report:

UPDATE 1-US home loan applications fall as refinancing slumps

http://today.reuters.com/investing/financeArticle.aspx?type=bondsNews&storyID=2005-12-14T120708Z_01_N08670765_RTRIDST_0_ECONOMY-MORTGAGES-UPDATE-1.XML

NEW YORK, Dec 14 (Reuters) - U.S. mortgage applications decreased last week, dragged down by sharp decline in home refinancings to a 17-month low as interest rates held near the highest levels of the year, an industry trade group said on Wednesday.

The Mortgage Bankers Association said its seasonally adjusted index of mortgage application activity for the week ended Dec. 9 decreased 5.7 percent to 619.3 from the previous week's 656.7.

Borrowing costs on 30-year fixed-rate mortgages, excluding fees, averaged 6.28 percent, down 0.04 percentage point from the previous week's 6.32 percent.

The 30-year fixed-rate mortgage, the industry benchmark, is substantially above its 2005 low of 5.47 percent in late June and close to its high of 6.33 percent in the week of Nov. 11.

The group's seasonally adjusted index of refinancing applications dropped 9.7 percent to 1,441.8 compared with 1,596.4 the previous week. Volume was at its lowest level since the week ended June 25, 2004, when the index reached 1,386.9.

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feel his pain. One guy was close to retirement and had a great nest egg. he now has bumpkis. Imagine being 58 and having zero retirement savings. The only consolation is that his wages were high and he will get a nice SS check, if the GOP don't dismember it. Oh, BTW, he is a born again DEM.

http://today.reuters.com/investing/financeArticle.aspx?type=bondsNews&storyID=2005-12-14T140020Z_01_WAT004577_RTRIDST_0_ECONOMY-SNOW-URGENT.XML

WASHINGTON, Dec 14 (Reuters) - U.S. Treasury Secretary John Snow said on Wednesday that U.S. inflation is in check, that Federal Reserve policies are effective, and that workers' wages are likely to begin rising.

"Inflation is well in check, the course the Fed is on is the right one," he said in an interview on CNBC television.

"We're at a tipping point, it seems to me, on wages, where we're going to see labor share of national income rise," he added.

The "tipping point" my ass! We are "tipping" into the abyss :banghead:

even when gas, fuel oil, electricity and other necessities rise 40%/yr.

As the gap between rent and income grows, low-wage earners are increasingly at risk of falling into homelessness

http://www.kansascity.com/mld/kansascity/13401663.htm

WASHINGTON –– The gap between rent and income has gotten so bad that low-income workers in Kansas City and across the country are teetering on the edge of homelessness, housing advocates say.

Nowhere in the country can a minimum-wage worker afford a one-bedroom apartment at fair market rent, the National Low Income Housing Coalition said in a report released Tuesday.

“The disparity between what people earn and what even modest rental housing costs grows larger each year,” said Sheila Crowley, coalition president. “This is the housing market in which millions of low-wage workers and elderly or disabled people must try to find safe and decent homes.”

Rising fuel and utility costs add to the problem of a dwindling supply of affordable housing. And nationally, the problem has been exacerbated by the displacement of so many low-income families after Hurricane Katrina.

“Minimum-wage earners are truly on the verge of homelessness,” said Helen Bryant, a Kansas City real estate agent who works with other agents to help nonprofit agencies market low-income housing.

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And yet the most important thing to our crap-ass government is to push through an extension for the top 1%.

:nuke:

and I would like to learn more, and I really do not like to lurk. So I thought I would jump in and see what you all talk about on a daily basis.

I have a few questions if people do not mind me asking.

Does anyone here trade on any of the markets?

If so what is your area of expertise, or what do you trade?


thank you from the Chairman:

Glad you have dropped in - stay around and feel free to add anything that you see or think about :hi:

This thread is not an advisory for investing - it is more of a daily compendium of things that are going on financially in regard to the market and the fiscal policies, with lots of individual corporation information that gets little notice in the MSM.

any accurate information is good information no matter what one does with it.

Thanks again for welcoming me aboard.


Cheers!

Feel free to ask anything you wish. We are primarily an educational enterprise around here. There is one caveat though: it is against house rules to give investment advice. Participants here freely offer insights into what has performed well and what has not. But either a peer-to-peer or advisement basis is not allowed. Individuals are encouraged to seek investment advice from a CFP. Your own research is welcome here too.

For the record: participating Marketeers proudly proclaim their interests: long on gold, bonds, etc. From a discussion standpoint, there is plenty to learn from these good folks who are willing to put their money where their mouths are.

Ozy :hi:

Just being able to read what is doing what in the headlines on a daily basis is good way to get a feel for the markets. Thank you for the work that you all do to provide the links and summaries and what not.

The poster here have so much expertise in a variety of fields, many which have nothing to do the stock market. This is a thread strong point. You also get good unfiltered stories that help you think and make better informed choices. So much of the stock market gives the MSM bias and they bury the stories that are reflective of the market (on going corruption etc). If you have read this thread for any length of time, you'll notice we have a running joke about 'surprised' economist. If they had been watching closely and reading between the lines-they would not be surprised so often. I have learned so much in a short time by way of this thread. This is a friendly and helpful group.

I am looking forward to being able to feel the ebb and flow of the market and I feel that this daily thread will be a big help in determining that.

:rofl: "Just a boy and his dog". Both are true.

:kick:

:hi:

Diebold

http://www.marketwatch.com/news/story.asp?guid=%7BA3D5D596%2DE72F%2D4A33%2DBCFF%2DE7F91E2418A5%7D&symbol=

ROME (MarketWatch) -- Italian business leaders Wednesday expressed dismay at the lack of ethics within the country's business community, following thearrest of Banca Popolare Italiana SCARL's (BPI.MI) former chief executive.

"In the last year we've seen links between politics and business grow as never before," that have led to "a general level of ethics (which is) not acceptable," said Employers' Association President Luca Cordero di Montezemolo, who is also president of carmaker Fiat SpA (F.MI).

Former BPI Chief Executive Gianpiero Fiorani and several associates were arrested late Tuesday by Milan prosecutors in connection with a criminal investigation into a failed takeover bid for Banca Antonveneta SpA (NTV.MI).

Wednesday was "surely a black day" for the country and its financial system said Corrado Passera, chief executive at Banca Intesa SpA (BIN.MI), Italy's second-largest bank by market capitalization.

A front-page editorial in Italy's leading financial daily, Il Sole-24 Ore, said the "black day" compares with "Tangentopoli", or "Bribesville", the term used to describe the kickbacks that underpinned Italy's crony capitalism in the 1990s. The prosecutors allege that Fiorani skirted laws to build up a secret stake in the Padua-based bank and provided false information to the market and to regulators.

...more...

It certainly appears that there are a rash of "ethics" problems in the banking, corporate and political areas around the world.

:idea:

Dow 10,862.22 +38.50 (+0.36%)
Nasdaq 2,261.49 -3.51 (-0.15%)
S&P 500 1,270.58 +3.15 (+0.25%)
10-Yr Bond 4.476 -0.59 (-1.30%)

NYSE Volume 377,394,000
Nasdaq Volume 352,844,000

10:00AM: Boosted by gains in seven of the ten economic sectors, each of the market's major averages have headed north. Utilites' 1.2% rise leads the way higher, driven by surging Contellation Energy (CEG 60.94 +4.67) shares after the New York Times reported that the parent of Florida Power and Light (FPL 43.11 +0.24) may acquire the company for more than $11 billion. The Nasdaq has managed to clear the flat line, but the Technology sector's flat line status (-0.01%) challenges its advance. Apple (AAPL 72.75 -2.23) serves as the heaviest weight, plunging 3% following two analysts' downgrades. Bank of America cut AAPL to Neutral from Buy, citing valuation and saying that the stock's recent run of over 50% in the last six weeks leaves it less comfortable recommending the commitment of new money. Also citing valuation concerns, Bear Stearns reduced its rating on AAPL to Peer Perform from Outperform. NYSE Adv/Dec 1651/1054, Nasdaq Adv/Dec 1494/994

9:40AM: The indices started the session in mixed fashion. Investors continue to digest the FOMC's policy statement, which accompanied yesterday's 25 basis point rate increase to 4.25%, analyzing the wording change for indication of an upcoming end to monetary tightening. We believe that the next few months' inflation data will set the tone for the Fed's action, and the market thus awaits tomorrow's CPI report (Nov.). Anticipation of today's energy inventory stats, due out at 10:30 ET, may give traders further reason to keep early buying action in check. While corporate news is light, a trio of Dow components helps support blue chips and the broader market. General Electric's (GE) CEO delivered an optimistic state-of-the-company address; Boeing (BA) won a large contract from Quantas Airways over Airbus; and Wal-Mart (WMT) has acquired Brazilian retailer Sonae. Downgraded AAPL and ERTS shares contribute to the Nasdaq's downside open.

CT's $220 MM given by John the Con Rowland's crony to Enron? Poof---Enron is belly up and $$$ nowhere to be seen.

I think Kenny's lawyer is recipient now.

http://news.ft.com/cms/s/1ed16fae-6b96-11da-bb53-0000779e2340.html

China is poised to announce its economy is significantly larger than the government’s official measure following a national economic census which found a large underestimation of the country’s thriving and largely private services sector.

The revision is also expected to show the economy is less reliant on investment and more driven by consumption than previously projected, two trends that Chinese leaders have been trying to encourage.

A spokesman for the National Bureau of Statistics said Tuesday it would announce the findings of the census and its impact on the calculation on GDP at a press conference in Beijing next week.

The NBS refused to say by how much it would revise the GDP figures, but it is expected that the new measure could show the economy was larger by about 20 per cent.

more....

Setting up for another "surprise" rise in the Yuan, or enticing speculators in the currency markets to think that? The Forex markets could get interesting as this develops :popcorn:

can anyone give me some advice and a starting point. I travel with hubby and we have played forex on a small scale. Any pros and cons appreciated. What are good websites that are accurate. You see those late night commercials hawking a data base. I am curious about this subject.

Auto workers, Republican leaders reach agreement :wtf: Strange bedfellows!

http://www.chron.com/disp/story.mpl/business/3523063.html

WASHINGTON - Two House Republican leaders said Tuesday they had reached an agreement with the United Auto Workers on major pension legislation, clearing the way for the House to vote before it adjourns for the year.

Rep. John Boehner, chairman of the Education and the Workforce Committee, and Ways and Means Committee Chairman Bill Thomas said they had secured the UAW's active support for the legislation.

Acting House Majority Leader Roy Blunt, R-Mo., said separately at a news conference that with that development the House was ready to vote this week on the pensions bill, aimed at ensuring the survival of the financially troubled employer-based pension system.

A week ago Blunt announced there was "really no likelihood" that the House would take up the pensions bill this year because of Democrats' unwillingness to support the legislation.

more...

http://www.cfo.com/article.cfm/5300474/c_5300495?f=home_todayinfinance

PricewaterhouseCoopers, Ernst & Young, Deloitte & Touche, and KPMG are trying to minimize their exposure to liability lawsuits by requiring companies they audit to limit their right to sue, reported Bloomberg.

According to the wire service, waivers of punitive damages and jury-trial rights are quietly finding their way into Big Four audit contracts — and attracting criticism from watchdogs who feel that liability caps will make accountants less vigilant. As a result, Bloomberg pointed out, five U.S. banking agencies are preparing to bar large banks from agreeing to these clauses.

The wire service noted that auditor-independence rules of the Securities and Exchange Commission, though they prohibit companies from indemnifying their auditors in civil suits, do not specifically address waivers.

"If there are liability caps on corporations, why shouldn't there be liability caps on shareholders?" said Lynn Turner, former chief accountant for the Securities and Exchange Commission and currently managing director of research for proxy advisory firm Glass Lewis, according to the report. "That will be next."

Indeed, Herbert Milstein, a securities lawyer at Cohen, Milstein, Hausfeld & Toll, told Bloomberg that the contract waivers also apply to derivative suits filed by shareholders, as well as to trustees who take over a company in bankruptcy.

more...

http://www.forbes.com/2005/12/14/time-layoffs-parsons-cx_gl_1214autofacescan07.html?partner=alerts

NEW YORK - The trickle-down effect isn't always good for the lower echelons.

Witness Time Inc., which issued a most un-Christmas-like announcement Tuesday.

Time is of course a unit of Time Warner (nyse: TWX - news - people ), the entertainment and media colossus led by Chief Executive Richard Parsons. The CEO and his management team have been pressured by dissident investor Carl Icahn to spin off or sell various TW assets, in order to--hopefully--boost shareholder value. That pressure then became a crushing two-sided vise, as the billionaire takeover king later warned he'd hold the board personally responsible if TW sold off America Online for "bad reasons."

<snip>

Now the trickling. Time announced Tuesday that it will lay off 105 employees, including a handful of senior publishing execs. According to media reports, the division's legendary magazines have been losing ad pages to industry erosion; Fortune and Sports Illustrated have lost some 20% of their ad pages over the past year.

But don't ascribe the layoffs simply to the vaunted death of print: The firm's Warner Brothers movie and TV arm slashed its staff by some 300 people in the last month, as TW deals with slack DVD sales--and examines ways to harness the rise of digital entertainment.

...more...

Ahhhh... The grand effects of the "piss on me" theory. :eyes:

think of the marketing potential...I voted for the Trickle Down Economy and all I got was this wet t-shirt. We'll be rich I tell you, rich!

Dow 10,883.51 +59.79 (+0.55%)
Nasdaq 2,262.59 -2.41 (-0.11%)
S&P 500 1,272.74 +5.31 (+0.42%)
10-Yr Bond 44.50 -0.85 (-1.87%)
NYSE Volume 2,145,116,000
Nasdaq Volume 1,733,380,000

The bullish cue that traders took yesterday from the Fed's modified policy statement extended into today's session. A dose of upbeat corporate news underpinned that sentiment, and kept the blue chip averages comfortably ahead of the flat line. At the same time, relative weakness in the Technology sector stunted the Nasdaq and left it vacillating in and out of the red. Gains were lent by eight of ten economic sectors; rising despite crude's 1% drop, the Energy sector (+1.1%) led. A mixed inventory report from the EIA, which included an unexpected drawdown in distillate (i.e., heating oil) supply, catalyzed some choppy crude trading. But crude inventory unexpectedly rose, and the eventually-sustained downturn in crude futures paired with running Nike (NKE 91.48 +3.56) shares in sending the Discretionary sector 0.5% higher. Utilities enjoyed broad-based buying, but Constellation Energy (CEG 61.13+4.86) provided a particular boost following reports that the parent of Florida Power and Light (FPL 42.98 +0.11) is considering an $11 billion buyout. Driven by a trio of Dow components, the Industrials sector (+0.5%) stood strong. Specifically, Boeing (BA 71.43 +0.84) trumped rival Airbus and won a large contract from Australia's Quantas Airways; in his optimistic annual state-of-the-company address to investors, General Electric (GE 35.75+0.28) CEO J. Immelt reaffirmed FY06 EPS growth expectations of 12-17%; and Honeywell (HON 37.49 +1.61) forecasted 20-30% EPS growth for its fiscal 2006. News from the Industrial bellwethers reflects the Overweight rating Briefing.com maintains on the sector, and lent muscle to the broader market's advance. Separately, defense contractor General Dynamics (GD 111.80 -0.29) agreed to purchase Anteon International (ANT 54.03 +13.26) for about $2.2 billion. The influential Financial sector's (+0.4%) afternoon advance effectively uncapped the blue chip indices and allowed them to climb higher. Rate-sensitive banks were a pocket of relative strength, mirroring the market's hope that the Fed is nearing the end of its current monetary tightening cycle. Action within the Treasury market further evidenced that optimism. Traders pushed the 10-year note up 19 ticks and down to a session-long 4.44% yield - the benchmark bond's best level of the month. Treasury Secretary Snow's early statement that "inflation is in well in check" lent further credence to participants' speculation that the Fed's rate hikes may soon pause. At the same time, ambiguity over the statement's language and a realization that it's ultimately the data that will determine the Fed's course of action may have tempered buying efforts. In particular, the market awaits tomorrow's closely-watched and inflation-gauging CPI report. Of the three declining sectors, Technology had the most influential effect. Plunging Apple (AAPL 72.01 -2.97) shares, a result of two analysts' downgrades, plagued the sector. Both Bear Stearns and Bank of America cited valuation concerns for their rating reduction; as a side note, the latter firm pointed out that the stock has jumped 50% over the past six weeks - a reason for which it hesitates to suggest the commitment of new money. Downgraded Electronic Arts (ERTS 53.74 -1.40) served as a secondary sore spot, but relative strength in Symantec (SYMC 17.75 +0.40), which received a new antivirus technology patent, offered some offsetting upside. Separately, October's trade deficit widened to a worse than expected record $68.9 billion. Overall, though, neither the stock nor bond markets paid much attention. NYSE Adv/Dec 2014/1294, Nasdaq Adv/Dec 1482/1558