STOCK MARKET WATCH, Monday 19 December

THE DOW REPORT
More Non-Confirmations

Today we will apply the Dow theory concept of non-confirmation to a few more sectors. Understand that non-confirmations are warnings, not timing tools. Non-confirmations can exist briefly while one average hesitates temporarily before confirming the move of the other average. Or, the non-confirmation can remain, in which case it will ultimately mark a turning point. Although the great Dow theorist Robert Rhea did not put specific time limits on confirmations, he did explain that more authority is given to confirmations that occur sooner rather than later.

In the chart below we have the Dow Jones Industrial Average in the upper window and the Dow Jones Financial Index in the lower window. The intermediate-term top in February 2004 was marked with a non-confirmation between these two averages. Also, the March 2005 top was marked by a non-confirmation. Both of these non-confirmations are marked in blue.



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In the next chart below we have the Industrials vs. the Banking Index and here too, the story is the same.



more...

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

8:30AM: S&P futures vs fair value: +2.5. Nasdaq futures vs fair value: +6.0. Even in the absence of any notable economic data to set the direction for early action, upbeat corporate news continues to underpin a positive underlying tone for stocks. Bonds, however, are consolidating early on ahead of a PPI report tomorrow that could question the containment of inflation at the producer level. The 10-yr note is down 5 ticks to yield 4.45%.

8:00AM: S&P futures vs fair value: +2.9. Nasdaq futures vs fair value: +7.0. Futures market versus fair value suggesting a higher open for the cash market. Renewing investor enthusiasm following Friday's ho-hum performance has been a legal victory for Pfizer (PFE) tied to the exclusivity of its Lipitor patents. Confirmation that FPL Group (FPL) will acquire Constellation Energy (CEG) for $11 bln has also provided early buying support.

Stock futures point higher as investors look to strong start in next to last week of 2005. :eyes:
December 19, 2005: 6:38 AM EST

NEW YORK (CNNMoney.com) - Stocks look set for a solid start Monday as investors look for a resumption of the end-of-year rally on news of a couple of deals and a big court win for a Dow component.

Stockfutures rose, pointing to a higher open on Wall Street, as U.S. markets could get a lift from gains in overseas stocks, as Asia markets closed higher and European stocks were mixed in early trading.

Stocks in the U.S. ended mixed last week as the market has struggled to regain its footing after November's big rally.

The Dow Jones industrial average could get a lift from drugmaker Pfizer (Research), which late Friday won a court victory upholding the validity of two key U.S. patents on Lipitor, its cholesterol-lowering drug that is one of the world's biggest selling medicines..

The ruling is likely to delay plans by an Indian drugmaker to introduce a generic version of the medicine. Shares of Pfizer gained 10 percent in after-hours trading Friday.

more...

It always seems to peak at the end of year, gives the Mutual funds nice marketing material.

"In 05 we're up 25%!" but they don't tell ya by 2nd week in Jan they are upside down 10%.

WASHINGTON - America's deficit in the broadest measure of international trade showed a slight improvement in the July-September quarter although it was still at the third highest level in history.

The Commerce Department reported that the deficit in the U.S. current account totaled $195.8 billion in the third quarter. That was down 1 percent from the deficit in the April-June quarter of $197.8 billion, which had been a 0.4 percent improvement from the record deficit of $198.7 billion set in the first three months of the year.

The third quarter figure was below the $205 billion imbalance that had been forecast. Analysts said payments by foreign insurance firms to settle damage claims stemming from hurricanes Katrina and Rita accounted for most of the improvement.

more

At least there's the economy. That's what Republicans are saying as their poll numbers tank over deficits, corruption and the hard slogging in Iraq. America saw strong economic growth in the third quarter, they sing, and a good jobs number for November.

All true, but all temporary. And, by the way, the tax cuts had little to do with it.

President Bush was recently in North Carolina, urging factory workers to give thanks for the tax cuts. In folksy mode, Bush criticized "some of those people up in Washington" who doubted that the tax cuts would make the economy golden.

It happens that some of those folks up on Wall Street are also doubters. They think the economy is about to turn really crummy. And though they are genuinely grateful for the tax cuts on a personal level — after all, they're rich — on an economic level, they see them as a problem. Lower tax revenues and a spending spree have set off an explosion of federal borrowing, which pushes up interest rates.

more...

http://seattletimes.nwsource.com/html/opinion/2002684248_harrop15.html

LONDON - A legal victory for Pfizer Inc. looks set to boost the whole pharmaceutical sector higher and lift U.S. stock markets Monday, with an $11 billion energy deal and Google Inc.'s reported stake buy in Time Warner Inc. also a focus.

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t was news after the close Friday that looks set to have the biggest impact on U.S. markets Monday, when a federal judge upheld the exclusivity of two of Pfizer's patents related to its Lipitor cholesterol-lowering drug.

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Google is reportedly set to buy a 5 percent stake in Time Warner's AOL division for $1 billion - edging out Microsoft Corp. in the battle to arrange a partnership with the media giant's Internet division.

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NEW YORK - The New York Stock Exchange will soon launch a trading-surveillance program in which the activities of some of the traders and brokers on the NYSE will be videotaped, Big Board officials said Wednesday.

The program is a consequence of the Securities and Exchange Commission's censure of the NYSE earlier this year over the exchange's failure to police its "specialist" stock traders. Last year, the NYSE and the SEC took action against all seven specialist firms that work at the exchange, levying a combined $247 million in financial and disgorgement penalties against the companies for alleged trading abuses. Individual traders were punished later.

The videotaping is expected to be launched as a pilot program in next year's second quarter, NYSE officials said Wednesday. Plans are for about 20 locations on the floor to be taped. The pilot program is expected to run for 18 months, but it may be extended.

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In a separate development, the NYSE may launch as early as this week an early version of its "hybrid market," an upgrade of the NYSE's trading that aims to bring more automation to the exchange. This limited pilot version won't have all of the hybrid market's planned bells and whistles, which are expected to be added later as the system is fully launched.

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VIENNA, Austria - Oil futures prices rose Monday, recouping some of a nearly $2 a barrel loss in the previous session that was partly based on expectations of declining winter fuel demand in the United States.

Analysts forecast little major market movement over the next few weeks, traditionally a quiet trading period.

Light, sweet crude for January delivery on the New York Mercantile Exchange rose 30 cents to $58.36 a barrel by afternoon in Europe. The contract had fallen $1.93 to settle at $58.06 Friday, its lowest close since Nov. 30. The January contract will expire Tuesday.

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Friday's decline in Nymex crude prices came as temperatures rose in New York and throughout the U.S. Northeast, the world's largest market for heating oil. But the milder weather was expected to be short-lived, forecasters said.

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SAN FRANCISCO (MarketWatch) -- FPL Group Inc. and Constellation Energy said Monday they signed a definitive merger agreement valued at $11 billion.

Terms of the deal call for each common outstanding share of Juno Beach, Fla.-based FPL Group (FPL: 42.95, +0.41, +1.0%) to be converted into one share of Constellation Energy at the time of the merger, with the conversion rate on Constellation Energy's stock pegged at 1.444 common shares of Constellation Energy for each share outstanding.

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Combining the two companies would forge one of the nation's biggest power generators, as manifested by facilities capable of generating 46,432 megawatts -- enough to supply about 40 million homes and businesses.

It would also combine FPL's giant regulated utility business in Florida with the extensive business Constellation has built up in the non-regulated merchant energy industry. In addition, the combined company would rank as third-largest U.S. operator of nuclear-power plants, owning and running seven stations with eleven units.

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10:01am 12/19/05 JAN CRUDE CLIMBS 29C TO $58.35/BRL IN EARLY NY TRADING

10:01am 12/19/05 JAN NATURAL GAS RISES 19.7C, OR 1.5%, TO $13.83/MLN BTUS

:donut: I was just going to comment on gas prices. We are up at least 6 cents at el cheapo service station, even more at the multinational stations in just 1 1/2 weeks. I am wondering if we will be hit harder here because of the rigs and refineries. Sales seemed to be off even though there were discounts to be had. I just have a few odds and ends to purchase and cards and letters to write. It will not be a big Christmas. We may have to buy a car. We will NOT be buying new but paying cash for a dependable used. I was hoping to stretch it out a bit longer, but when the repairs have been running more than the car is worth, well it is time to cut the losses. Thank goodness we have a great mechanic. You need a good mechanic, lawyer, CPA, and Doc to make through life if you don't have tonnes of money.
Wonder if those bonus checks are cut yet? Happy hunting and watch out for the bears.

11:07am 12/19/05 JAN CRUDE TOUCHES $57.15/BRL, ITS LOWEST SINCE DEC 1

11:07am 12/19/05 JAN CRUDE LAST DOWN 56C AT $57.50/BRL IN NY

11:07am 12/19/05 JAN NATURAL GAS TAPS $13.38/MLN BTUS, ITS LOWEST SINCE DEC 6

11:07am 12/19/05 JAN NATURAL GAS LAST DOWN 13.3C AT $13.50/MLN BTUS

3:14pm 12/19/05 JAN NATURAL GAS CLOSES AT THREE-SESSION HIGH

3:14pm 12/19/05 JAN NATURAL GAS UP 41C, OR 3%, TO END AT $14.043/MLN BTUS

2:59pm 12/19/05 JAN UNLEADED GASOLINE ENDS AT $1.5269/GAL, DOWN 2.7%

2:59pm 12/19/05 JAN CRUDE CLOSES AT LOWEST LEVEL SINCE NOV. 30

2:59pm 12/19/05 JAN CRUDE FALLS 73C, OR 1.3%, TO END AT $57.33/BRL

2:59pm 12/19/05 JAN HEATING OIL CLOSES AT $1.7033/GAL, DOWN 1.7%

(ino.com is currently offline - will give numbers if it comes back up)

Implied Positive Dollar Positioning Falls By 70%

http://www.dailyfx.com/story/charting_center/futures_positioning__cot_report/5590_implied_positive_dollar_positioning_falls_by.html

US Dollar Index: The NYBOT traded contract saw the commercials decreased their short positions following another week of sharp sell-off in the dollar index. Volume remains high as index tumbled below the psychologically important 90.00 handle, with the On Balance Volume indicator signaling an increase of the downside volume. Speculative positions reduced their net long exposure with 17,383 net long contracts, while commercials decreased their net short position to 17,907 net short contracts. Open interest rose by additional 4,432 contracts added to 35,108 contracts outstanding.

<snip>

EUR: Euro speculative traders significantly reduced their bets against the single currency as speculative short positioning fell sharply to 1,063 contracts, while overall open interest rose by 13,039 contracts from the previous week to 192,392 contracts outstanding as single currency headed toward the psychologically important 1.2000 handle. Commercial traders reduced their net long positions to 3,321 contracts as Euro once again failed to hold the psychologically important 1.2000 handle.

<snip>

JPY: Japanese Yen speculative positions remained net short as pair broke below the 120.00 handle, with speculative traders increasing their exposure to 72,063 net short contracts outstanding. Commercials maintained their net long positions with 75,678 net long commercial contracts outstanding. Open interest rose by 23,286 contracts to 243,599 contracts outstanding.

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Because I really wanna know why the hell he believes he is above the law!

to destroy the Constitution - if this cabal believes that it does not have to abide by the Constitution, which specifically spells out Presidential duties, and goes around the Constitution, this is the most impeachable offense.

If one does not believe that there are Constitutional limits and one's position is only afforded by the Constitution, then one does not have the legal right to be in a position that is created by the Constitution.

It is time to throw these people out of our nation's capital and into prison.

it in his face.

Pretzelnetin' is hard work, he's been working too hard. He wants to make it easier on himself and go for that dick-tater-ship he's always dreamed about.

"You don't get everything you want. A dictatorship would be a lot easier." Describing what it's like to be governor of Texas.
(Governing Magazine 7/98)

"I told all four that there are going to be some times where we don't agree with each other, but that's OK. If this were a dictatorship, it would be a heck of a lot easier, just so long as I'm the dictator," Bush joked.

-- CNN.com, December 18, 2000

"A dictatorship would be a heck of a lot easier, there's no question about it, " said.

-- Business Week, July 30, 2001

interrupted by questions.

On the other hand, some have suggested that a "press conference" this early in the news cycle likely means he has "good news."

I'm betting they thawed OBL, they were saving his remains for the perfect time and this is it. The Patriot Act and that ugly illegal spying may have necessitated proof that Chimp's on top of things.

is why in the hell they sat on the story for over a year. If that had gotten out...would that have swung more votes in the election(even though I am convinced that Gore and Kerry won). The press has lost the privilege to call themselves the 4th estate. Unless these reporters get with the program, those bobble heads will lose their jobs to the internet bloggers.

rush and media blitz)

http://www.atimes.com/atimes/Middle_East/GL17Ak02.html

WASHINGTON - While US President George W Bush continued to claim a strategy for "victory" in Iraq in recent speeches, his administration has quietly renounced the goal of defeating the non-al-Qaeda, Sunni-armed organizations there.

The administration is evidently preparing for serious negotiations with the Sunni insurgents, whom it has started referring to as "nationalists", emphasizing their opposition to al-Qaeda's objectives.

The new policy has thus far gone unnoticed in the media, partly because it has only been articulated by US Ambassador ZalmayKhalilzad and the spokesman for the US command in Baghdad.

The White House clearly recognizes that the shift could cause serious political problems if and when it becomes widely understood. The Republican Party has just unveiled a new television ad attacking Democratic Party chair Howard Dean for suggesting that the war in Iraq cannot be won.

Renouncing victory over the Sunni insurgents therefore undercuts the president's political strategy of portraying his policy as one of "staying the course" and attacking the Democrats for "cutting and running".

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(updating as lines are posted)

10:33am 12/19/05 BUSH ASKS FOR PATIENCE AS IRAQ POLITICAL PROCESS UNFOLDS

10:36am 12/19/05 BUSH DEFENDS SECRET SURVEILLANCE PROGRAM

(there is no defense for illegal activity - this sack has broken the law - put him on trial (impeach) and throw him in prison!)

10:40am 12/19/05 BUSH SAYS U.S. ECONOMY IS STRONG AND 'GETTING STRONGER'



10:50am 12/19/05 BUSH: 'VERY OPTIMISTIC ON WAY FORWARD FOR IRAQI PEOPLE'

with some of this spying. I also have some Quaker friends that are on the 'list' of terrorist. Quakers mind you. No threat, just pacifists. Another friend of ours was arrested at a peace rally and while questioning him, they presented him with a file and there were quite a few photos of him at various rallies over the last 3 yrs. Our most vocal and active friend (anglo American and a darn fine tabla player) has experienced 'drive by photo shootings'. I was skeptical of this until we were saying good bye to them after and evening of tea and conversation and caught a car slowing down snapping pictures of us and his car. We just flipped the photographer the bird. We joke, half seriously, that they may drag him out of his house late one night and it will take months to find him. We have had a foreign born friend die under what I consider mysterious circumstances. He was one of the original group rounded up after 9/11. His wife went to identify his body and couldn't, she said he had lost a great amount of weight. I didn't know about it until too late, otherwise I would have advised an autopsy. And that point I told hubby that if he ever came up missing or death, I would go to the ends of the earth to get justice. It is always in the back of my mind that when hubby steps out of the house, he may not come back. He is just too dark and not native born American (forget that he started out Hindu and leans more toward Christianity now).
I am so thrilled this has come to light as I was all but called a liar by conservative friends and family! I hope he gets nailed for it. It is as bad as you think, if not worse!

11:22am 12/19/05 BUSH: SENATE REFUSAL TO EXTEND PATRIOT ACT 'INEXCUSABLE'

UIA find illegal activity of *Co 'inexcusable' :argh:

http://today.reuters.com/investing/financeArticle.aspx?type=bondsNews&storyID=2005-12-19T163053Z_01_N19229646_RTRIDST_0_BUSH-UPDATE-2-PICTURE.XML

excerpt:

The spying program, under which the National Security Agency was given the authority to intercept the communications without court approval, was first disclosed by the New York Times last Friday. A 1978 law, the Foreign Intelligence Surveillance Act, makes it illegal to spy on U.S. citizens in the United States without court approval.

http://www.law.cornell.edu/uscode/html/uscode50/usc_sup_01_50_10_36.html

TITLE 50 > CHAPTER 36

CHAPTER 36—FOREIGN INTELLIGENCE SURVEILLANCE
Release date: 2005-03-17
SUBCHAPTER I—ELECTRONIC SURVEILLANCE
SUBCHAPTER II—PHYSICAL SEARCHES
SUBCHAPTER III—PEN REGISTERS AND TRAP AND TRACE DEVICES FOR FOREIGN INTELLIGENCE PURPOSES
SUBCHAPTER IV—ACCESS TO CERTAIN BUSINESS RECORDS FOR FOREIGN INTELLIGENCE PURPOSES

...links embedded at www.law.cornell.edu ...

http://today.reuters.com/investing/financeArticle.aspx?type=bondsNews&storyID=2005-12-19T163053Z_01_N19229646_RTRIDST_0_BUSH-UPDATE-2-PICTURE.XML

excerpt:

On Iraq, Bush pointed to the country's election last Thursday as a sign of progress in the war, which is costing taxpayers $6 billion a month and in which more than 2,100 U.S. troops have died.

I guess only US deaths matter to this particular stenographer :eyes:

and while perusing the aisles, came across a flag display box out of place in the furniture section. Most people passed it by. My eyes welled up with tears, knowing what it meant and knowing that there is enough of a demand for them to now be sold in WalMart....I can only pray that there is a very special place in hell reserved for these murderers.

That may start happening more & more as the winter progresses.

:kick:

:spray: they will continue to do that until gas to go to the mall gets too expensive.(I am visualizing a tatter mob-circa Victorian England roaming the malls and begging for change in the food court)

Zero-percent-financing makes for a happy holiday for bankers, not consumers.

http://money.cnn.com/2005/12/16/commentary/pluggedin_2_fortune/

NEW YORK (FORTUNE) - With retail sales proving more sluggish than expected -- and concerns that home heating bills will crimp sales even further -- many retailers are finding the need to be more creative this holiday season.

One approach that's proving popular is offers of zero percent financing for 12 or 24 months when shoppers buy big-ticket items like plasma televisions and washing machines. Even though such deals can lead to write offs -- the customers drawn to them often have less discretionary income and are more likely to default -- retailers like Sears and Circuit City feel they can live with the delinquencies, because they're not as margin-killing as having to mark down merchandise by 50 percent closer to Christmas.

snip>

But dig a bit deeper, and you get to the real reason. Over the past five years, retailers -- most notably Sears -- have sold off their proprietary credit card operations to financial giants like Citigroup, GE Consumer Finance and HSBC. In 1999, 55 percent of store credit card balances were held in accounts operated in-house by retailers, according to The Nilson Report, a newsletter that tracks the payment card industry. By 2004, that figure had plummeted to 15 percent.

Big banks not only have deeper pockets than retailers, but they are able to borrow money at cheaper rates. A retailer whose store cards are brought to you by a bank is able to get more creative with its promotions. Thus, we see more "0% interest for 12 months" type of deals.

snip>

It gets better. The banks, thanks to their experience with balance transfer offers and teaser rates, have a pretty good idea of how many shoppers will take them up on such an offer and then fail to pay off the balance in the allotted time. At that point, the poor sap is nailed with an exorbitant interest rate that can range from 18 percent to 24 percent. Such a customer "becomes very profitable very quickly," says David Robertson, publisher of The Nilson Report.

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9:38
Dow 10,887.11 +11.52 (+0.11%)
Nasdaq 2,248.75 -3.73 (-0.17%)
S&P 500 1,268.63 +1.31 (+0.10%)
10-Yr Bond 44.60 +0.12 (+0.27%)
NYSE Volume 118,418,000
Nasdaq Volume 99,715,000

http://today.reuters.com/investing/financeArticle.aspx?type=bondsNews&storyID=2005-12-19T160215Z_01_WAT004613_RTRIDST_0_ECONOMY-BILLS-ANNOUNCEMENT-URGENT.XML

WASHINGTON, Dec 19 (Reuters) - The U.S. Treasury Department on Monday said it will sell $11 billion of four-week bills on Tuesday, Dec. 20.

The four-week bills will be issued on Dec. 22.

The bills mature Jan. 19. Treasury said the net long position reporting threshold is $3.85 billion.

Noncompetitive bids must be received before noon EST (1700 GMT) and competitive bids by 1:00 p.m. EST (1800 GMT).

...more...


The estimated population of the United States is 298,017,206
so each citizen's share of this debt is $27,378.18.

The National Debt has continued to increase an average of
$2.83 billion per day since September 30, 2005

http://www.usatoday.com/money/companies/2005-12-18-buyouts-usat_x.htm

Buyout firms are wrapping up one of their busiest years ever, shaking up the managements of hundreds of companies and setting up 2006 as a year for many companies to be restructured, fixed up and sold.
Private-equity firms, consortiums and investors have bought 1,119 companies this year for $135.7 billion, says Dealogic. That's the busiest year for such deals since at least 1990, says Thomson Financial.

Many targets have been household names such as Hertz, Toys R Us, Neiman Marcus, La Quinta and Dunkin' Brands, the owner of Dunkin' Donuts.

The targets keep getting bigger as more pension funds, institutions and wealthy individuals hand money to private-equity firms. The Wall Street Journal reported Friday that grocer Albertson's may be bought by a team of investors, including private-equity firm Cerberus Capital, for $9.6 billion.

"So much money needs to be put to work," says Allen Stern, managing director at Imperial Capital. Private-equity investors "rather than give the money back, they must look for deals."

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9:43am 12/19/05 FEB GOLD CLIMBS $5.80 TO $511.60/OZ IN MORNING NY TRADING

9:43am 12/19/05 MARCH SILVER UP 10.5C, OR 1.2%, AT $8.705/OZ

http://www.msnbc.msn.com/id/10497843/

NEW YORK - The scene said everything about the year in white-collar crime: Bernard Ebbers, the jocular, folksy former boss of WorldCom Inc., hunched forward in a courtroom chair, quietly crying.

He had just been sentenced to 25 years in prison for orchestrating the record $11 billion accounting fraud at the toppled telecom — essentially a life term for a man 63 years old and with a history of heart trouble.

It was a startling punishment, but far from extraordinary in 2005: In the cavalcade of recent corporate scandals, this was the year the hammer finally fell on top executives. Hard. And the trend toward harsher sentencings for corporate crooks comes just as the curtain goes up on what's expected to be the most complex of the white-collar cases to date, the fraud trial of Enron founder Kenneth Lay and two other former officials.

snip>

For judges considering the staggering harm done to investors and employees of these scandal-scarred companies, the sentences were not close calls, said Eric Chaffin, a securities lawyer at Seeger Weiss LLP and a former white-collar prosecutor in New York.

"The judges, when they really see the real victims and see that there's really strong fraud in these companies, they're going to make somebody pay the price," he said.

more...

(thanks to Thom Little and this DU thread

http://www.democraticunderground.com/discuss/duboard.php?az=show_mesg&forum=102&topic_id=1995288&mesg_id=1995288)

http://moneycentral.msn.com/content/Banking/bankruptcyguide/P135860.asp

Credit card issuers and other lenders spent a small fortune to get bankruptcy reform legislation passed. Now the new law is costing them even more.

An unprecedented spike in filings before reform took effect in fall 2005 is chewing into lenders' bottom lines, and the subsequent lull is showing signs of being short-lived. Bankruptcy attorneys say their caseloads are starting to pick up, and credit counseling agencies -- which provide now-mandatory sessions for consumers who want to file -- say they're seeing significantly more people than they initially predicted.

All this is raising questions about whether lenders will profit as much from the new bill as they hoped.

It wasn't supposed to be this way. The new law contains a “means test” that was supposed to steer higher-income filers toward repayment plans. Lenders expected a rush of consumers trying to beat the bankruptcy deadline, but nothing like the surge that actually occurred. More than 500,000 bankruptcy cases were filed in the two weeks before the law took effect, compared with a normal weekly volume of 30,000 to 35,000. So far this year more than 2 million cases have been filed, 49% more than the same period last year and eclipsing all previous records.

<snip>

J.P. Morgan Chase & Co., the nation's largest credit card issuer, said its charge-off volume would rise 44% in the fourth quarter to $2.3 billion from $1.6 billion for the same period a year ago.

Capital One warned its charge-off rate could rise up to 1 percentage point from the year's previous range of 4.05% to 4.14%.

Discover said it expected the bankruptcy surge to add $250 million to its costs.

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Dow 10,906.81 +31.22 (+0.29%)
Nasdaq 2,248.88 -3.60 (-0.16%)
S&P 500 1,269.61 +2.29 (+0.18%)
10-Yr Bond 4.452 +0.04 (+0.09%)

NYSE Volume 458,112,000
Nasdaq Volume 366,349,000

10:00AM: Major averages still trade in split fashion as sector leadership remains mixed. Health Care remains the biggest standout as a 3.3% surge in the drug group, following Pfizer's (PFE 24.87 +2.29) legal victory and an analyst upgrade on Merck (MRK 31.80 +1.79), offset profit-taking in HMOs and biotech. Energy has also posted a strong gain, as the sector pares some of last week's drubbing amid a rebound in oil prices. Financial, however, has been an influential leader to the downside as an analyst downgrade on Banc of America (BAC 46.64 -0.33) spurs profit-taking in banks while losses in semiconductor, software and networking weigh on Technology. NYSE Adv/Dec 1060/1598, Nasdaq Adv/Dec 962/1546

9:40AM: The fourth-quarter rally tries to get back on track as upbeat news in the drug space and M&A activity improves underlying sentiment following Friday's weak showing. Shares of Pfizer (PFE 25.04 +2.46) -- the S&P 500's sixth most influential component -- has soared 11% after a federal court upheld the validity of its Lipitor patents. Confirmation that FPL Group (FPL 43.50 +0.55) will acquire Constellation Energy (CEG 60.02 -1.60) for $11 bln has provided additional confidence, underpinning the healthy nature of corporate balance sheets.

Dow 10,894.39 +18.80 (+0.17%)
Nasdaq 2,246.03 -6.45 (-0.29%)
S&P 500 1,267.57 +0.25 (+0.02%)
10-Yr Bond 4.450 +0.02 (+0.04%)

NYSE Volume 596,723,000
Nasdaq Volume 469,603,000

10:30AM: Market gains more upside momentum as improvements in some key sectors help blue chips extend early gains. Turnarounds in Dow components Citigroup (C 49.61 +0.24) and JP Morgan (JPM 39.86 +0.07) have helped Financial inch into the green while Altria (MO 77.41 +0.09) and Walt Disney (DIS 24.73 +0.03) turning positive within the last 30 minutes have lift the Staples and Discretionary sectors into the green. NYSE Adv/Dec 1213/1715, Nasdaq Adv/Dec 996/1701

http://www.fool.com/news/commentary/2005/commentary05121605.htm?logvisit=y&source=estmarhln001999&npu=y&bounce=y&bounce2=y

excerpt:

One way that GAAP distorts reality -- and it's the point I want to address today -- is that it tries too hard to show what's really going on at a company. I'm referring to depreciation and amortization -- processes that take one-time, major cash outlays, break them down into bite-size chunks, and subtract them from earnings over a period of time.

Let's look at an example. "Joe Fool" earns a comfortable, $48,000-a-year salary somewhere in middle America. He owns a modest home, complete with a $1,000-a-month mortgage payment, and a fancy car, for which he has a $500-a-month payment. If Joe viewed his world according to GAAP (a tip of the Fool's cap to John Irving), this is how he might spend his earnings.

Like most Americans, Joe would spend at least as much as he earns every year. He'd figure out how much his expenses run him over the course of a year, divide by 12, and dole out $4,000 every month: $1,000 to the tax man, $1,000 to the bank, $500 to the car company, and $1,500 on things such as utilities, food, and medical insurance. He'd do quite well 10 months of the year, but twice a year, he might be in for a surprise.

Waiter, there's a lump in my expenses

The problem is that twice a year, there's a lump in Joe's expenses: his car insurance bill. Every six months, his insurance company sends him a bill for $600 to cover the annual $1,200 premium. Under GAAP, this shouldn't happen. Under GAAP, the $1,200 annual insurance premium would be amortized into equal $100 increments over the course of the year. The two lump-sum payments would be flattened into a smooth, continual drain on Joe's "earnings."

This is where GAAP ceases to imitate real life. In real life, spending $4,000 every month subjects Joes to a twice-a-year dilemma: the $600 car-insurance bill. Unless Joe has carefully tucked away $100 per month in anticipation of his lump-sum cash outlays, he could be in for a nasty surprise. In months six and 12, he might have to cut back on his discretionary spending, and the extra expense might even threaten his ability to pay the mortgage on time.

...more...

What happens when all those utilities soar?

in addition to having Bob Cratchett working on Christmas Day, he would be given a pink slip at the end of the day. Don't expect these CEO's to be suddenly filled with the Christmas spirit upon reading A Christmas Carol...you have to have a heart first, and this crop seems to be void of that muscle (it has obviously atrophied from lack of use).

http://today.reuters.com/investing/financeArticle.aspx?type=bondsNews&storyID=2005-12-19T170717Z_01_WAT004615_RTRIDST_0_FINANCIAL-SEC-STERN-URGENT.XML

WASHINGTON, Dec 19 (Reuters) - U.S. regulators said on Monday that they charged two individuals with insider trading ahead of news in 2004 that radio shock jock Howard Stern was moving to Sirius Satellite Radio Inc. (SIRI.O: Quote, Profile, Research).

The U.S. Securities and Exchange Commission said accountant Gary Herwitz and former Sirius executive Tracey Stanyer "illegally profited from advance knowledge of radio personality Howard Stern's $500 million contract with Sirius."

Both executives settled with the commission without admitting wrongdoing and agreed to pay fines and to disgorge ill-gotten gains, the SEC said.

...short blurb...

"Executives" are definitely becoming a much sleazier bunch of criminals than in the past.

How much junkier can our automotive industry become?

http://today.reuters.com/investing/financeArticle.aspx?type=bondsNews&storyID=2005-12-19T171202Z_01_WNA6882_RTRIDST_0_AUTOS-FORD-FITCH-URGENT.XML

NEW YORK, Dec 19 (Reuters) - Fitch Ratings on Monday cut its ratings on Ford Motor Co. (F.N: Quote, Profile, Research) to junk status, becoming the third of the three major rating agencies to strip the automaker of its investment-grade ratings.

The downgrade reflects continuing market share losses, slumping sales of sport utility vehicles and competition at Ford's core North American auto operations, Fitch said.

Fitch also cut to junk the ratings on Ford's Ford Motor Credit finance arm, where most of Ford's $142 billion of consolidated debt is issued. The downgrade will eject Ford Credit from the widely followed Lehman Brothers credit index, limiting the investors who can buy its bonds and raising borrowing costs.

...more...

http://today.reuters.com/investing/financeArticle.aspx?type=bondsNews&storyID=2005-12-19T174306Z_01_N19230189_RTRIDST_0_AIRLINES-NORTHWEST.XML

NEW YORK, Dec 19 (Reuters) - Bankrupt Northwest Airlines Corp. (NWACQ.PK: Quote, Profile, Research) is seeking to cut medical benefits for its retired workers, a move that would save the No. 4 U.S. carrier $18 million a year, according to court documents filed on Friday.

The airline, which says it offers three different health plans and two different dental plans, proposes to replace those with a single medical and dental plan for employees and retirees under the age of 65.

Under its new plan, current employees would pay 25 percent of the costs, while retirees under the ages of 65 will be expected to shoulder 50 percent of the monthly premium.

Retirees over the age of 65, who are eligible for Medicare, are not included.

Northwest, which has been battered along with other major airlines by soaring fuel costs and low-cost competition, filed for bankruptcy in September to restructure into a leaner operation with lower labor costs.

...more...

Battered by fuel costs, seeks to cut employee benefits. What a world :eyes:

Dow 10,897.44 +21.85 (+0.20%)
Nasdaq 2,242.64 -9.84 (-0.44%)
S&P 500 1,267.17 -0.15 (-0.01%)
10-Yr Bond 44.31 -0.17 (-0.38%)
NYSE Volume 1,238,434,000
Nasdaq Volume 957,334,000

1:00PM: Stocks still mired in relatively tight trading ranges, showing little reaction to continued deterioration in oil prices. While evidence of a warm-up following the Christmas weekend has helped shave more than 5% off the price of crude over the last four sessions, such forecasts are still too far away to get overly excited about as most of the weakness across the energy complex is being attributed to a rollover into the Feb. contract; the Jan. contract expires tomorrow. NYSE Adv/Dec 1221/1992, Nasdaq Adv/Dec 1111/1853

12:30PM: No change to the prevailing trend as the afternoon session gets underway. Consumer Discretionary, however, is now unchanged on the day following reports that Fitch Ratings cut its ratings on Ford Motor (F 8.25 -0.05) to junk status. Coupled with a 1.3% decline in General Motors (GM 21.60 -0.29), autos - the year's worst performing S&P industry group (-44.3% YTD) - is now one of today's worst performing industry groups.NYSE Adv/Dec 1245/1947, Nasdaq Adv/Dec 1122/1803

Dow 10,871.43 -4.16 (-0.04%)
Nasdaq 2,235.43 -17.05 (-0.76%)
S&P 500 1,264.10 -3.22 (-0.25%)
10-Yr Bond 4.429 -0.19 (-0.43%)

NYSE Volume 1,314,160,000
Nasdaq Volume 1,022,494,000

1:30PM: Market edges to session lows within the last 30 minutes after the NAHB home builders index checked in at a worse-than-expected 57, below an expected read of 61 and prior read of 60, the lowest in nearly 3 years. While the seldom watched NAHB report normally does not move the market, perhaps a lack of any notable economic data before tomorrow's release of Nov. housing starts and building permits has acted as an impetus to consolidate recent market gains, in particular, some of the homebuilding group's 12.8% year-to-date advance.NYSE Adv/Dec 1148/2092, Nasdaq Adv/Dec 1067/1910

Dow 10,831.00 -44.59 (-0.41%)
Nasdaq 2,227.23 -25.25 (-1.12%)
S&P 500 1,260.24 -7.08 (-0.56%)
10-Yr Bond 4.439 -0.09 (-0.20%)

NYSE Volume 1,711,328,000
Nasdaq Volume 1,346,899,000

3:00PM: Stocks bounce off their worst levels but market internals still indicate a bearish bias. As reflected in the A/D line, decliners on both the NYSE and Nasdaq still hold a more than 2-to-1 edge over advancers. Adding to today's struggles have been the indices' inability to find initial support near key technical levels of 10860, 1264 and 2240 on the Dow, S&P and Nasdaq, respectively.NYSE Adv/Dec 987/2293, Nasdaq Adv/Dec 937/2088

2:30PM: Market extends its reach into negative territory as the bears sideline what few bulls have shown up to take part in the second to last week of 2005. Nine of ten economic sectors now trade in negative territory and the Nasdaq (-0.9%) has hit its worst levels of the month as biotech hitting session lows only adds to tech's weakness. Turning in an even worse intraday performance, however, has been the Russell 2000 (-1.4%), as investors lock in some of the gains that helped the small-cap index hit a historic high on Dec. 14th.NYSE Adv/Dec 1019/2254, Nasdaq Adv/Dec 966/2055

3:18
Dow 10,831.48 -44.11 (-0.41%)
Nasdaq 2,227.60 -24.88 (-1.10%)
S&P 500 1,260.27 -7.05 (-0.56%)
10-Yr Bond 44.41 -0.07 (-0.16%)
NYSE Volume 1,746,915,000
Nasdaq Volume 1,379,135,000

Maybe people do not want to hold stock over the holidays.


Dow 10,836.53 -39.06 (-0.36%)
Nasdaq 2,222.74 -29.74 (-1.32%)
S&P 500 1,259.92 -7.40 (-0.58%)
10-Yr Bond 44.42 -0.06 (-0.13%)
NYSE Volume 2,205,708,000
Nasdaq Volume 1,713,625,000

4:20PM: The market finished the day near session lows as broad-based consolidation closed nine of ten economic sectors in negative territory. While the market showed potential at the onset to get back on the buying track, inspired primarily by a crucial court victory for Pfizer (PFE 24.28 +1.70) and M&A activity, a lack of notable economic data and worries the Q4 rally may be overdone weighed on sentiment into the close. Utilities was in focus following confirmation that FPL Group (FPL 42.81 -0.14) will acquire Constellation Energy (CEG 59.00 -2.62) for $11 bln, however, unmet expectations of a larger take-out premium prompted investors to consolidate some of the sector's impressive 16% year-to-date advance. Nonetheless, Technology - the S&P 500's second most influential sector - provided the biggest drag on equities, contributing significantly to the Nasdaq's 1.3% drubbing. Chip stocks were weak across the board following several analyst downgrades while software, hardware and networking also succumbed to profit-taking. Google (GOOG 424.91 -5.24), which was added to the Nasdaq 100 today and hit an all-time high early on failed to hold onto its gains. While a strong Q3 report from Circuit City (CC 22.52 +1.27) and an analyst upgrade on Nordstrom (JWN 37.04 +0.66) initially helped Consumer Discretionary, weakness in autos coupled with consolidation in retail and homebuilding weighed on the sector. Fitch cut their rating on Ford Motor (F 8.25 -0.05) to junk status while a typically ignored NAHB home builders index, which checked in at a worse-than-expected 57, garnered extra attention, perhaps as a precursor to disappointments from tomorrow's release of Nov. housing starts and building permits.