STOCK MARKET WATCH, Wednesday 21 December

It looks to be slow news week as people settle down for the holidays.

SINGAPORE - The price of crude was flat Wednesday, ahead of the market-moving U.S. petroleum data snapshot that is likely to show dips in heating fuel-related stocks from cold weather.

Crude prices were also slightly buoyed after news that unknown assailants had blown up a Royal Dutch Shell PLC pipeline in Nigeria Tuesday, killing at least eight and knocking 170,000 barrels of crude offline.

In Singapore Wednesday, February light, sweet crude on the New York Mercantile Exchange rose 5 cents to $58.14 a barrel on its first trading day as the front-month contract. In New York, January Nymex crude rose 64 cents to settle at $57.98, its first upward settlement in four days.

Trading was subdued, with many awaiting the release of commercially available petroleum stocks in the United States, the world's largest energy consumer.

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10:00am 12/21/05 FEB CRUDE UP 26C AT $58.35 A BARREL

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

Last trade 90.76 Change 0 (0.00%)

Dollar Rallies on Thin Trading

http://www.dailyfx.com/story/dailyfx_reports/daily_fundamentals/5644_dollar_rallies_on_thin.html

US Dollar

There has been a rather impressive rally in the dollar today against all of the majors. A plethora of rationales have spurted up with none being any more convincing than the next. Some of the reasons that we have been hearing include yield spreads being positive in favor of the dollar, the stock market rallying, early holiday position squaring and the transit strike in NY taking away some of the market's resistance. The most logical reason for the move was best said by Jamie Coleman of IFR, who indicated that "year end illiquidity combine with staff-shortages in New York today make for untypical dealing conditions." If that is case, then it may seem that US traders have far less conviction in their own currency than their European and Asian counterparts. As expected, the market completely shrugged off the weaker PPI report. Producer prices fell 0.7 percent in the month of November with core prices up only 0.1 percent. Both gasoline and car prices went down 10.7 percent and 0.8 percent respectively. After the big drop in consumer prices reported last week, the market had already discounted falling headline inflation and the possibility of a contraction in PPI. Meanwhile, housing starts rose by the most in seven months. This certainly undermines our warning of a housing market downturn, but then again, just because builders continue to break ground on new homes, doesn't mean consumers are buying them. New home sales are expected later this week. After hitting a high in October, home sales are expected to have retraced last month. Tomorrow, we are expecting the final release of Q3 GDP and personal consumption. Neither of which is expected to be market moving since they are suppose to only confirm previous figures, but if the transit strike continues, the illiquidity in the markets could certainly deliver another bout of volatility.

...more...

Insomnia lets me enter your rarefied space...and I am so glad to see that my dollar has not disintegrated any further today than yesterday.
:hi:

:hi:

You are definitely up and around early! :wow:

Guess the transit strike kept the traders from getting to their desks to sell those dollars :eyes:

occur during strikes...and I guess this is one!
:hug:

http://www.marketwatch.com/news/newsfinder/pulseone.asp?dateid=38707.3543921875-855179907&siteID=mktw&scid=0&doctype=806&

WASHINGTON (MarketWatch) - Third quarter U.S. growth increased at a 4.1% rate, slightly lower than previous estimates of a 4.3% growth rate, the Commerce Department said Wednesday. The downward revision was unexpected by Wall Street economists, who had forecast Q3 GDP to be unrevised at a 4.3% rate. The second revision to real gross domestic product in the July-September quarter found a downward revision to consumer spending. Inflation measures were revised slightly higher; the core personal consumption expenditure price index increased at a revised 1.4% annual rate, up from the previous estimate of a 1.2% increase. Corporate profits were revised lower.

8:30am 12/21/05 U.S. Q3 CORPORATE PROFITS DOWN REV. 4.0% VS 3.4% PREV. EST.

8:30am 12/21/05 U.S. Q3 DOWNWARD REVISION DUE TO LOWER CONSUMER SPENDING

8:30am 12/21/05 U.S. Q3 GDP BELOW RISE 4.3% FORECAST

8:30am 12/21/05 U.S. Q3 GDP UP REV 4.1% VS 4.3% PREV EST.

WASHINGTON (Reuters) - The U.S. economy grew a bit less robustly in the third quarter than previously thought and prices picked up, the government said on Wednesday, though the pace of growth remained the strongest since the beginning of 2004.

Gross domestic product, or total output within U.S. borders, expanded at a 4.1 percent annual rate in the July-September quarter, the Commerce Department said in its final estimate of growth for the period.

The rate was below the 4.3 percent the department had estimated a month ago, partly because new-car sales were slower than thought. Wall Street analysts had forecast no revision in the third-quarter growth rate.

-cut-

Corporate profits suffered during the third quarter, falling 4.3 percent after taxes in part because insurance companies were hit with big payouts after hurricanes Katrina and Rita. Profits in the second quarter rose at a 5.3 percent rate.

more...

10:30am 12/21/05 CRUDE SUPPLIES UP 1.3M BBLS IN LATEST WEEK: DOE

10:30am 12/21/05 GASOLINE SUPPLIES DOWN 300K BBLS IN LATEST WEEK: DOE

10:31am 12/21/05 DISTILLATE SUPPLIES DOWN 2.8M BBLS IN LATEST WEEK: DOE

NEW YORK (Reuters) - U.S. mortgage applications fell to an 11-month low last week, dragged down by a decline in home purchasing even as interest rates dipped, an industry trade group said on Wednesday.


The Mortgage Bankers Association said its seasonally adjusted index of mortgage application activity for the week ended December 16 decreased 4.0 percent to 594.6 from the previous week's 619.3. Volume was at its lowest since the week ended January 7, when the index reached 587.8.

Borrowing costs on 30-year fixed-rate mortgages, excluding fees, averaged 6.22 percent, down 0.06 percentage point from the previous week's 6.28 percent.

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

The MBA's seasonally adjusted purchase mortgage index fell 5.2 percent to 453.1 from the previous week's 477.9. The index is considered a timely gauge of U.S. home sales.

The group's seasonally adjusted index of refinancing applications dropped 1.6 percent to 1,418.1 compared with 1,441.8 the previous week. Volume was at its lowest level since the week ended June 25, 2004, when the index reached 1,386.9.

Fixed 15-year mortgage rates averaged 5.76 percent, down from 5.83 percent the previous week. Rates on one-year adjustable-rate mortgages (ARMs) decreased to 5.41 percent from 5.50 percent.


http://biz.yahoo.com/rb/051221/economy_mortgages.html?.v=1

Hope everyone is going to have a great next couple of weeks. :hi:
Happy holidays to all...

energy companies can't make money? No wonder they used to be heavily regulated...they are supposed to make money, they are supposed to provide energy and break even. Or at least that was what I was taught in school...oh so long ago we actually thought this was a government by and for the people, not the corporations.

of the GOPpiggies.

their money. I see. :evilgrin:

this is about the cheeriest thread I've ever seen! :sarcasm:

http://today.reuters.com/investing/financeArticle.aspx?type=bondsNews&storyID=2005-12-21T131710Z_01_L20712125_RTRIDST_0_FINANCIAL-HEDGE-RETURNS.XML

LONDON, Dec 21 (Reuters) - Hedge fund returns next year could be up on 2005 as volatility picks up, but investors looking for stellar double-digit returns should steer clear of the industry, analysts said.

However, for those aiming to diversify their portfolios to spread risks hedge funds are still a viable prospect because most of their investment strategies have a low correlation with traditional investment assets such as stocks and bonds.

Analysts think hedge funds will return on average around 7 percent this year, the lowest since 2002.

However, in that year hedge funds returned around 3 percent and helped investors preserve capital as the MSCI index of world stocks collapsed nearly 20 percent.

"There is potential for more volatility next year ... Hedge funds could return up to 10 percent," said John Godden, European managing director at HFR Asset Management.

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Reading the tea leaves?

http://www.marketwatch.com/news/newsfinder/pulseone.asp?dateid=38707.3465248148-855178827&siteID=mktw&scid=0&doctype=806&property=symb&value=&categories=&

NEW YORK (MarketWatch) -- Jack Abramoff, a former lobbyist, is reportedly negotiating a possible deal with the Justice Department that would call for him to plead guilty and cooperate in a wide-ranging political corruption investigation, according to The Washington Post. Abramoff is facing fraud charges, and the article states the sides are discussing a deal that would require him to provide testimony about numerous members of Congress and their staffs.

Looks like it might be getting interesting :eyes:

revelations that a trial would produce. I feel deprived. I hope that some really juicy news (repuke indictments) will make up for the deprivation of 24 hour coverage on all channels.

:donut: :donut: :donut:

8:32AM: S&P futures vs fair value: +4.4. Nasdaq futures vs fair value: +5.0. The indices remain headed for a higher open. Recently released GDP data showed that the economy grew at a 4.1% annual rate, down slightly from the 4.3% preliminary read but higher than the 3.3% growth in Q2. The chain deflator checked in at 3.3% (consensus 3.0%). Separately, a flurry of merger and acquisition activity contributes to the early bullish sentiment. Seagate Technology (STX) agreed to purchase Maxtor (MXO) for $1.9 billion in stock -- a move that joins two of the largest disk-drive makers, while Pharmaceutical Allergen (AGN) sealed a deal to buy Inamed (IMDC) for more than $3 billion. General Electric (GE) and unidentified partners, meanwhile, are reported to be nearing a deal for REIT Arden Realty (ARI).

8:00AM: S&P futures vs fair value: +4.1. Nasdaq futures vs fair value: +3.5. Futures trade suggests a higher open for the cash market, as buyers leave the sidelines after four days of declines. Perhaps helping to fuel the early sentiment are reports that Citigroup (C) is leading a $2.7 billion bid for state-owned Chinese lender Guangdong Bank State. The Dow component, one of three bidders, is offering to buy between 40 and 45% of the bank. Separately, today's first piece of economic data -- the final read on Q3 GDP -- is due out at the bottom of the hour.

9:00AM: S&P futures vs fair value: +4.3. Nasdaq futures vs fair value: +4.0. Stocks remain set to start the session higher. Strength in overseas markets, led by a five-year high hit by Japan's Nikkei, and positive earnings news team with a busy M&A front in spurring early buying action. Following yesterday's close, Nike (NKE) and Palm (PALM) beat analysts' EPS projections, while ATI Technology (ATYT), FedEx (FDX), CarMax (KMX), and Family Dollar (FDO) are amongst this morning's upside reporters.

WASHINGTON - The U.S. economy turned in a remarkably strong performance in the summer despite surging energy prices and the battering the Gulf Coast states took from hurricanes, although business growth was slightly lower than the government previously estimated.

The Commerce Department reported Wednesday that the gross domestic product, the nation's total output of goods and services, rose at an annual rate of 4.1 percent in the July-September quarter. It was the fastest pace of growth in 1 1/2 years.

While down slightly from the 4.3 percent GDP estimate made a month ago, the new figure demonstrated that the economy kept expanding at a strong pace during the summer, led by solid increases in consumer demand, especially for autos, and business investment.

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Chapter 11 I get wiped out, so I didn't do it.

n/t

here at home with our own democracy these days. BeelzeBush and Co. sure do have the world on it's head these days. Up is down, black is white, spying is good for you, and the Constitution is "just a d-damned piece of paper".

Where are we going and whadahell are we doin' in this handbasket?

It seems as though areas that suffered under American dominance for better than a century (like South America) are using an unstable American government to shake that yoke. I predict that after another three years - the world's political alliances will resemble little of what they were in 2000.

As for us Americans - we have a huge opportunity to inject populism in politics at home if we can thwart our federal government's imperialistic ambitions toward its own population.

http://today.reuters.com/news/NewsArticle.aspx?type=reutersEdge&storyID=uri:2005-12-20T185305Z_01_FOR058652_RTRUKOC_0_US-ECONOMY-GLOBAL.xml&pageNumber=0&summit=

WASHINGTON (Reuters) - Don't hold your breath waiting for the stormy end feared for global economic imbalances in 2006, but don't lose sight of them either.

That is the ambiguous message from economists who, after three years of constant debate, are no closer to consensus on the threat posed by record U.S. international deficits and the counterbalancing stockpile of Asian foreign currency reserves.

This year only muddied the water for many.

A year ago, most agreed that further dollar weakness was a likely result of a U.S. current account shortfall closing in on $800 billion -- or more than 6 percent of national output.

With the United States needing to attract nearly $3 billion of new net foreign investment every working day just to balance its books, they reckoned a lower dollar would be needed keep U.S. assets cheap enough to be tempting.

But currency markets contrived to ignore the script.

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:hi: Gotta run some errands before heading out to make a couple of bucks for the day. Have a great day watchin - Santa Rally or early January White Sale?

http://www.kitco.com/ind/Daughty/dec212005.html

snip>

But things will continue to get weird, as Puru Saxena at DailyReckoning.com answers that age-old question "How much debt qualifies for the use of the term 'ridiculous' "? Well, Mr. Saxena figures "The total American debt is roughly US$40 trillion whereas the size of its economy is around US$11 trillion. So, the debt to GDP ratio is over 350%!"

And I will note, for the record, that the debt-to-GDP ratio at the top of the stock market in 1929 was "merely" 260% of GDP, which was, until today, America's worst example of rampant financial stupidity. But we stupid Baby Boomers and our grubby, mutant children have set a whole new world record in financial stupidity and insanity.

And, in keeping with that level of ignorance and mental illness, we now have Ben Bernanke as the new head of the Federal Reserve, who actually thinks that he can engineer (in "cooperation" with the Congress, I suppose) a permanent prosperity based upon constantly-rising asset valuations? Hahahaha! I can hardly believe that we Americans, who think that we are so smart and so educated and so sophisticated, could possibly believe that such a thing was even possible! Hahaha! Buy stocks and they will always rise? Buy bonds and they will always rise? Buy houses and they will always rise? Hahaha! But my charming and mirthful Mogambo ways (CAMMW) are suddenly silenced. A look of cold, dead seriousness gleams from my blue steel Mogambo eyes (BSME) and you wonder to yourself "My goodness! What has happened to The Mogambo?" What has happened to The Mogambo is that he has remembered what happened in all the rest of the history when some idiot country tried that inflation crap (and they all did); it did not work then, and the result was catastrophe. And it will not work now, and the result will be a bigger catastrophe.

I had planned to use this space for another official Mogambo rant of outrage (OMROO), about, you know, the Federal Reserve and Congress, and how they are murdering our money, and, by extension, us. And, by further extension, everybody else, too. But then I would get all worked up, angrier and angrier, more and more, finally escalating into senseless, mindless, gratuitous use of childish, gutter profanities at high-decibel volumes. And nobody wants that, especially little kindergarten children who, it turns out, get REALLY freaked out by it, and there's suddenly a lot of screaming and crying and pooping in one's pants, and it's a real ugly mess, and then the children start screaming and crying and pooping in their pants, too. So instead, I think to myself, "Perhaps young grasshoppers would be better instructed by a genteel and refined approach!" Always willing to take the easy way out, I graciously turn today's lesson over to Robert Blumen on LewRockwell.com, and his essay entitled "Bernankeism: Fraud or Menace?"

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Ahh, We really can't get too much Mogambo, can we?

Dow 10,868.47 +62.92 (+0.58%)
Nasdaq 2,233.81 +11.39 (+0.51%)
S&P 500 1,265.99 +6.37 (+0.51%)
10-Yr Bond 4.492 +0.26 (+0.58%)

NYSE Volume 305,870,000
Nasdaq Volume 231,833,000

9:40AM: As futures trade had presaged, the stock market started the session well above the unchanged mark. Strong economic growth, as reflected in the 4.1% read on Q3 GDP, and a bullish corporate front have helped catalyze early buying interest. A host of M&A deals include Google's (GOOG) $1 billion 5% stake in Time Warner's (TWX) AOL; Seagate Technology (STX) 1.9 billion bid for Maxtor (MXO); GE's reported offer for Arden Realty (ARI); and Allergen's (AGN) approximate $3 billion takeover of Inamed (IMDC). The earnings calendar is a bright one, with FedEx (FDX), ATI Technology (ATYT), CarMax (KMX), and Family Dollar (FDO) amongst the upside reporters; last night, Nike (NKE) beat EPS expectations, but disappointed with decelerated future orders. Other news on the bearish side of the aisle includes reports that Kirk Kerkorian's Tracinda has sold about 20% of its stake in GM.

Richard Daughty, the angriest guy in economics
email: scgcjs@gte.net

In case you didn't see the news item and accompanying photo in your local newspaper, my mouth was hanging open in stunned disbelief and my eyes had this glassy, distant look as the police were jamming me into the backseat of a police squad car. The reason for their rudeness was that things are getting so weird in the world of economics that The Mogambo had one of his "spells" of Mogambo outrage (SOMO), and there was an unfortunate "incident," and the police thought that maybe some mental-health professionals could help me, but I'm screaming at them, "They are destroying your money, you idiot fascist bastards! And you think that some head-shrinking quack is going to change THAT inescapable fact, you dimwit Gestapo morons?"

I am not sure what it was, specifically, that set me off, but for one thing, the trade deficit goes up to a new record, yet the stock market goes up! Weird! How about that the Federal Reserve raises the Fed Funds rate by the 13th consecutive quarter-point, and yet the stock market goes up! Weird AND weird! Hell, even more bizarrely, the bond market goes up, too! Weird weird WEIRD! Meanwhile, back at the ranch, the dollar is rolling over while interest rates are being raised by the central bank, and yet some knucklehead foreign bozos are increasing their demand for U.S. bonds, thus driving price up and the imputed yield down? And then they get hit with an additional whack from the fall in the value of the dollar? And yet they keep on buying U.S. debt? This is now totally beyond weird! This is spooky!

And how about the 2-year T-note yielding a quarter-point above Fed Funds rate? This is insane! The 10-year T-bond is yielding almost the same? This is insane, too! The yield on the 10-year bond is less than the freaking Discount Rate, which is the rate the banks themselves pay to borrow money from the Fed! I shake my head in disbelief, and my ears comically go flappa-flapp-flappa as they slap against my head.

These are the kinds of crazy things that makes a guy go, "I gotta get gold and get away from this insanity! And get away from my wife and kids, too, now that I think about it!" And then as you are packing your bags you get rattled further when you see that the action in gold is getting really weird, too! And the lease rates for gold! Maybe it's just me, but the way I figure it is that since I am the suspicious and distrustful type, which comes at the end of a long life (which is, in itself, just a long series of being screwed over by hucksters, crooks and liars), my sensitive Mogambo weirdness sense (SMWS) is highly attuned to things that are the least bit weird, and right now loud alarm bells from the Mogambo Weird-O-Meter (MWOM) are clanging and clanging and clanging.

more

http://worldnewstrust.org/modules/AMS/article.php?storyid=1918

falling off the highs...

1:40
Dow 10,862.62 +57.07 (+0.53%)
Nasdaq 2,230.92 +8.50 (+0.38%)
S&P 500 1,264.26 +4.64 (+0.37%)
10-Yr Bond 44.90 +0.24 (+0.54%)
NYSE Volume 1,272,549,000
Nasdaq Volume 1,029,967,000

1:30PM: The indices slip from their latest highs but remain at the top of today's narrow range. Despite the rise in crude oil futures -- they've remained above $58 per barrel all day -- and although the gasoline and distillates portions of today's energy inventory report were bearish, retailers remain a pocket of relative strength. Family Dollar (FDO 25.41 +1.33) shines brightest, surging after delivering a slightly better than expected fiscal first quarter earnings report. The retailer narrowed its same-store sales forecast for the current month, but steady streams of updates from Wal-Mart and Target have perhaps helped investors focus on the fact that holiday sales remain solid within the industry at large.NYSE Adv/Dec 2237/965, Nasdaq Adv/Dec 1908/1047

1:00PM: Back on a northbound track, the indices hit a new set of session highs. The Financial sector's rise, now resulting in a 1.0% gain, serves as the strongest muscle behind the broader market's advance. Within the sector, which accounts for more than a fifth of the S&P, only four of its 84 issues trend lower today. Of them, Synovus Financial (SNV 26.36 +1.71) lags. The regional bank's decline comes upon reports that Bank of America (BAC 46.81 +0.12) has terminated a credit card payment processing agreement with Total System Services (TSS 18.18 +3.15) -- a contract that generated a substantial amount of the latter company's revenue; Synovus owns 80% of Total System Services. SNV's relative weakness, though, has little effect on the sector's climb.NYSE Adv/Dec 2282/894, Nasdaq Adv/Dec 1969/969

Seems that someone let the air out of the balloon today. Just when I thought I have the market movement down, what makes it go up and down, it starts acting weird like this. Seasons Greetings everyone!

Dow 10,829.08 +23.53 (+0.22%)
Nasdaq 2,227.91 +5.49 (+0.25%)
S&P 500 1,261.48 +1.86 (+0.15%)
10-Yr Bond 4.486 +0.20 (+0.45%)

NYSE Volume 1,694,411,000
Nasdaq Volume 1,376,325,000

3:00PM: The indices fade further and fall out of today's range. The Discretionary sector has relinquished its gain, and now hovers just below the flat line. During the past four sessions, the market started higher but slid to losses with which they closed. While today's gains are well-pared, the indices still -- at this point -- are managing to remain on positive footing. With respect to the above-mentioned sector, Nike (NKE) and General Motors (GM 19.34 -0.51) have served as its darkest patches today, but Comcast (CMCSA 26.12 -0.44) has emerged as an additional sore spot. Retailers, particularly home improvement retail ahead of Bed Bath and Beyond's (BBBY 41.00 +0.18) earnings report, still trend higher; crude's 0.8% run to a closing price of $58.56 per barrel has incited some selling action, though, and that industry's gain has been halved.NYSE Adv/Dec 2073/1171, Nasdaq Adv/Dec 1843/1165

2:30PM: Swinging back to an upward path, the indices stand in the midst of today's narrow trading range. While eight of ten sectors lend gains, the market continues to be led by the Materials sector (+1.7%). The steel industry, up 2.8%, still serves as the sector's best support, but strength persists across the board. To name a few, metal and glass (BLL, PTV) post a 2.3% gain, specialty chemicals (ECL, IFF, ROH, SIAL) have risen 1.9%, and diversified chemicals (DOW, DD, EMN, EC, HPC, PPG) are up 1.5%. With respect to steel, the sub sect is the currently the S&P's second-best performer today. NYSE Adv/Dec 2025/1189, Nasdaq Adv/Dec 1849/1156

3:30PM: Standing still over the past half an hour, the market's majors maintain positive stances as the closing bell approaches. Although gains have been well-pared during the last hour, a look at the advance-decline line reveals that a bullish bias still dominates. Presently, advancing issues on the NYSE have a 19-to-14 edge; the Nasdaq's advancers, meanwhile, enjoy a 17-to-14 lead over declining counterparts. The market's breadth also reveals the extent to which it's lost steam, though. The indices hit session highs at noon, at which point advancers led by 23-to-9 on the NYSE and 2-to-1 on the Nasdaq. NYSE Adv/Dec 1887/1374, Nasdaq Adv/Dec 1661/1350

Dow 10,833.73 +28.18 (+0.26%)
Nasdaq 2,231.66 +9.24 (+0.42%)
S&P 500 1,262.79 +3.17 (+0.25%)
10-Yr Bond 44.86 +0.20 (+0.45%)
NYSE Volume 2,065,173,000
Nasdaq Volume 1,666,055,000

Today marked the fifth consecutive day of a higher start that fizzled. The difference today, though, was that the market's majors clung to modest gains and finished the session on positive turf. A plethora of M&A activity, some strong reports on the earnings front, and good third quarter GDP data collectively catalyzed an bullish air that dominated, but faded, during the session's final hour. Wide-spread buying across the Materials sector (+1.6%) allowed it to occupy the driver's seat for the duration of trading. The soaring steel industry, following positive analyst comments on Nucor (NUE 67.84 +2.29), served as one of the broader market's best sources of support. Seven other sectors contributed upside. Mirroring the overall market, the influential Financial sector finished with well-pared 0.4%. While support came from several corners, multi-line insurers fared especially well as American International Group (AIG 66.44 +1.02) enjoyed extended buying following yesterday's report that it will purchase $3.5 billion worth of property in Japan. In spite of the Treasury market's submerged status, the sector held higher all day; Utilities, the other rate-sensitive sector, did not perform as well, though. Broad-based selling took that sector to a market-dragging -1.1%. As was the case with Financial, the Technology sector (+0.2%) erased much of its intra-day gain and thereby revoked some leadership. Today's host of merger activity mainly occurred within the Tech sector, and included Seagate Technology's (STX 20.20 +0.60) $1.9 billion bid for Maxtor (MXO 6.80 +2.28) - a move that will unite two of the largest disk-drive makers. Google (GOOG 426.25 -3.49), meanwhile, announced that it will pay $1 billion for a 5% stake in Time Warner's (TWX 17.62 -0.12) AOL, while IBM (IBM 83.12 +0.64) has proposed a purchase of Micromuse (MUSE 9.93 +2.72). With respect to the earnings front, ATI Technologies (ATYT 16.47 -0.03) beat analysts' profit expectations, and Blackberry-competitor Palm (PALM 31.93 +1.03) issued upside profit guidance for its fiscal Q2. However, relative weakness in semiconductors and declines in several tech bellwethers largely offset the gains that corporate news fostered. FedEx (FDX) topped the list of upside earners. The company's much better than expected report, and upped fiscal 2006 forecast, lifted Industrials (+0.5%) while also sparking wide-spread buying that's sent the Dow Jones Transportation Average 2.3% higher. Consumer Staples (+0.3%) also held steady today, but the Consumer Discretionary sector (+0.1%) wavered. Following reports that Kirk Kerkorian's Tracida sold more that 20% of its stake in General Motors (GM 19.10 -0.75) this month, the automaker again dragged the sector and the Dow. Nike (NKE 85.75 -2.73), despite beating earnings expectations, was another weak link due to the disappointing future orders it reported. Earnings-driven strength in Family Dollar (FDO 24.40 +1.32) and optimism ahead of Bed Bath & Beyond's (BBBY 41.26 +0.44) earnings report helped retailers counter the decliners; that industry demonstrated resilience in the face of crude futures' 0.9% rise. Conversely, that uptick was to the Energy sector's (+0.1%) benefit, and followed data that showed greater than expected drawdowns in gasoline and distillates (i.e., heating oil) last week. On the other hand, an unexpected build in crude supply paired with relative weakness in oil storage and transport in stifling the sector. With respect to the final Q3 GDP report, the data was marginally revised to reflect a 4.1% annual rate of increase - the strongest gain in a year and a half and the tenth consecutive quarter of economic growth above 3.0%. The inflation-gauging chain deflator, meanwhile, was revised slightly upward to 3.3%. While the reflection of solid growth alongside the chain deflator's rise somewhat disturbs inflation-flustered bond traders, the data was essentially "old news" that has be followed by more recent indications that growth remains solid amid contained inflation. As such, neither the bond nor stock markets overly reacted to the data. NYSE Adv/Dec 2068/1214, Nasdaq Adv/Dec 1842/1177

WOW! And you damned liberals said we Conservatives couldn't do anything right?

At that rate, faith in the economy will only die slowly.

http://www.tomdispatch.com/index.mhtml?pid=43459

snip>

Imagine, then, pushing that pause button just after the damage was done but before the "response" could begin; then look -- with as cool an eye as you can -- at the damage, wildly outsized compared to the group initiating it, but limited and not world-ending in the least (certainly not in a week in which our President estimated that 30,000 Iraqis, "more or less," had already died in the war he launched). As with the most successful terror attacks, the truly outsized thing was the response provoked. After all, a Serbian nationalist with a pistol was quite capable of assassinating an archduke of the Austro-Hungarian Empire, but not of causing World War I. Only major powers could have done that.

Most Americans responded not to al-Qaeda, but to a terrifying vision of world's end and to headlines that indicated another Pearl Harbor had occurred, that we had been attacked by a new Evil Empire. Unfortunately, that vision and the feeling that our very Greatness had been assaulted fit all too comfortably with the apocalyptic religious and political visions -- world dominating and world-ending -- that lay close to the hearts, minds, and long-range plans of the tiny group then running an adrift administration for the Earth's only superpower. In the endless rites that would follow as the President launched his "Global War on Terror," we would seek a variety of roles expansive enough to suit a wounded but globe-bestriding colossus. We would become the planet's Greatest Victim, Greatest Survivor, and Greatest Dominator, leaving only the role of Greatest Evildoer up for grabs.

In the process, the horrific but actual scale of the damage would disappear. It no longer mattered that the attacking group had been relatively small, limited in its means (hence, four years without an al-Qaeda-inspired terrorist incident in the U.S.), and massive only in its luck and daring -- abetted by the fact that the Bush administration was looking for nothing like such an attack, despite that CIA briefing handed to George on a lazy Crawford August day -- "Bin Laden determined to strike in US" -- and so many other clues.

Over four years later, a question of costs naturally arises from Gitmo-ized, Patriot-Act-ified, Homeland-Security-ificated America, from the country of more than two thousand dead and more than sixteen thousand wounded, from the perspective of a war of choice that has taken at least $250- 281 billion in chump change through fiscal year 2005. Our world has been damaged in so many ways, many still not fully apparent, and one question is: Who made us pay the price? What did they do to us and what did we do to ourselves? Or put another way, how much of the costs of 9/11 were costs of choice?

The Costs of an Imperial Presidency

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