STOCK MARKET WATCH, Thursday October 18

Source: du

STOCK MARKET WATCH, Thursday October 18, 2007

COUNTING THE DAYS
DAYS REMAINING IN THE * REGIME 460 LONG DAYS
DAYS SINCE DEMOCRACY DIED (12/12/00) 2471 DAYS
WHERE'S OSAMA BIN-LADEN? 2189 DAYS
DAYS SINCE ENRON COLLAPSE = 2150
Number of Enron Execs in handcuffs = 19
ENRON EXECS CONVICTED = 10
Enron execs conveniently deceased = 3
Other Arrests of Execs = 54

---

U.S. FUTURES & MARKETS INDICATORS
NASDAQ FUTURES-----------------------------S&P FUTURES

---

AT THE CLOSING BELL WHEN BUSH TOOK OFFICE on January 22, 2001
Dow - 10,578.24
Nasdaq - 2,757.91
S&P 500 - 1,342.90
Oil - $27.69/bbl
Gold - $266.70/oz.

AT THE CLOSING BELL ON October 17, 2007

Dow... 13,892.54 -20.40 (-0.15%)
Nasdaq... 2,792.67 +28.76 (+1.04%)
S&P 500... 1,541.24 +2.71 (+0.18%)
Gold future... 762.50 +0.50 (+0.07%)
30-Year Bond 4.81% -0.10 (-2.10%)
10-Yr Bond... 4.55% -0.11 (-2.34%)






GOLD, EURO, YEN, Loonie and Silver

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PIEHOLE ALERT

Heads Up!
Preliminary info on appearances by Bush & Co. throughout the country. Details & links are added as they become available so check back. And if you know more, are organizing something, or would like to, contact actionpost@legitgov.org

For information on protests and other actions Citizens For Legitimate Government

---

Read more: du

More There Than Meets the Eye?
BY MICHAEL PANZNER

Analysts were quick to blame upheaval in credit markets for the record outflows from U.S. investments during August, detailed in yesterday’s Treasury Department report on monthly “TIC” flows. However, a chart of the running 12-month totals going back several years suggests foreigners had already reached some sort of threshold as far as their exposure to U.S. assets is concerned. Arguably, recent events may simply have been the last straw for some of them.

-chart-

There's been a lot of talk lately about problems in the financial sector. But if you dig below the surface and look at the relative performance of various constituents, it seems fairly clear that investors believe banks are at the center of the storm. The group’s shares have not only lost ground vs. the broad market, they've lagged behind other financials.

---

Today's Market

Stocks finished mostly higher in choppy trading, with strength in technology shares offsetting weakness in oils and financials. Housing starts in the U.S. dropped to their lowest level since 1993.

At the close, the Dow Jones Industrial Average fell 20.4, or 0.15%, to 13,892.54. The S&P 500 Index rose 2.71, or 0.18%, to 1,541.24, and the Nasdaq Composite Index jumped 28.76, or 1.04%, to 2,792.67.

The technology sector was buoyed by better-than-expected results from Intel (4.87%) and Yahoo (7.98%), as well as a positive holiday sales outlook from Research in Motion (3.76%). Financials were weighed down by a warning from home loan insurer MGIC Investment (-15.26%) and continued weakness in the shares of Citigroup (-0.29%), which partially recovered by the close.

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

8:30 AM Initial Claims 10/13
Briefing Forecast 315K
Market Expects 315K
Prior 308K

10:00 AM Leading Indicators Sep
Briefing Forecast 0.2%
Market Expects 0.3%
Prior -0.6%

12:00 PM Philadelphia Fed Oct
Briefing Forecast 7.0
Market Expects 7.0
Prior 10.9

http://biz.yahoo.com/c/e.html

43. U.S. initial jobless claims highest in seven weeks
8:30 AM ET, Oct 18, 2007 - 1 hour ago

44. U.S. weekly continuing claims rise 19,000 to 2.53 mln
8:30 AM ET, Oct 18, 2007 - 1 hour ago

45. U.S. 4-week avg. initial claims up 6,000 to 316,500
8:30 AM ET, Oct 18, 2007 - 1 hour ago

46. U.S. weekly initial jobless claims rise 28,000 to 337,000
8:30 AM ET, Oct 18, 2007 - 1 hour ago

13. U.S. Sept. leading indicators rise 0.3% vs 0.8% drop in Aug.
10:00 AM ET, Oct 18, 2007 - 1 hour ago

14. U.S. leading indicators point to slow growth ahead
10:00 AM ET, Oct 18, 2007 - 1 hour ago

BANGKOK, Thailand - Oil prices rose in Asia Thursday as futures were whipped around by inventory outlooks and worries over a possible attack by Turkey on Kurdish rebels in northern Iraq.


Light, sweet crude for November delivery rose 40 cents to $87.80 a barrel in Asian electronic trading on the New York Mercantile Exchange by late afternoon in Singapore.

The Nymex crude contract lost 21 cents to settle at $87.40 a barrel Wednesday in the U.S. after trading at a record $89 a barrel.

---

On Wednesday, though, unexpectedly large gains in U.S. crude oil and gasoline inventories won the day over news that Turkey's parliament approved a government plan to attack Kurdish rebels in northern Iraq.

The U.S. Energy Department's weekly inventory report also countered previous perceptions that oil supplies are falling and demand is growing, analysts said. Many argue that speculative investing is the real culprit behind oil's rally over the last week.

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

I, ozymandius, am in the camp of those who call out speculative investing for the rise in oil prices. Sure, a weak dollar is also a factor.

Can someone please give me a brief answer on the following?

How come the rise in the price of oil has not translated into an increase in the price of gasoline? With oil at almost $88/barrel, shouldn't gas prices be in the $4-$5 range by now?

I know it has something to do with the "type" of oil, but are they also "manipulating" the gasoline price in particular, to keep the public at bay?

I'm thinking that people would be getting more pissed off with higher gas prices, but for some reason, they're staying at about the same level as they've been, even as the price of crude continues towards $90 & $100.

Instead of gas continuing to drop, it's been holding steady although it jumped to $2.89 here the other day from a $2.69 or so leveling off point of late.

I've been noticing wholesale gas prices and it hit $2.20/gal a couple days ago but was down to $2.14 this morning. Gas seems to usually be about $0.60-0.75 above the wholesale price.

Perhaps demand is dropping due to most people being pinched across the board? I dunno...I still see bumper-to-bumper traffic every morning.

winter antipollution formulas! That always causes a shortage, like gas stations can't possibly use winter gas early, it's all got to be summer gas until some magic date passes on the calendar.

At least that's the excuse they've used before when prices have gone up at the end of the summer.

Demand is dropping, by the way. Station owners are getting pinched, too, and have to rely more and more on sales of burritos and Big Gulps.

If it is the type of oil that makes gasoline, then yes, we should be seeing a rise in motorcar fuel prices.

However, if it is fuel for diesel, that price is eventually passed along to transportation costs and, down the line, consumer goods.

If it is oil for diesel, the price of gas may stay constant but you might see a sharp increase in the price of non-local and imported goods. And from what little I understand, there is always more concern over rising cost of "transportation" fuel than there is for regular gasoline.

I think this is because it is assumed that Americans do a lot of unecessary driving and can and will cut back if they have to without much complaint. But let the cost of their food and goods go up sharply.......

Someone else will have more information on the type of oil that is being speculated on. But, if I am not mistaken, Light Sweet Crude is the type used to make gasoline.



My Favorite Master Artist: Karen Parker GhostWoman Studios

Basically what people are doing is offering to pay $90 a Barrel for oil TWO MONTHS FROM NOW. Thus the issue is NOT what is the pump price today, but what it will be two months from now.

Please note, this price increase may reflect the EXPECTED DROP IN THE VALUE OF THE DOLLAR more than any real increase in the price of oil. i.e. The Dollar will drop in terms of the Euro, while Oil holds in value in Euro terms while increases in terms of Dollars.

http://www.reuters.com/article/hotStocksNews/idUSSP10407020071018

NEW YORK (Reuters) - Oil prices extended a record rally to more than $89 a barrel on Thursday, supported by record weakness in the dollar, lingering geopolitical worries and tight inventories heading into winter.

Oil's climb of about 13 percent since last week has renewed concerns that soaring energy costs could hinder world economic growth and raised a red flag for OPEC, which may call an early formal meeting to discuss output.

U.S. crude oil futures gained $1.80 to $89.20 a barrel by 2:15 p.m. EDT, the fifth consecutive trading day oil has hit a record. London Brent crude rose $1.10 to $83.61 a barrel.

Though U.S. oil prices hit a nominal peak, they remain below the inflation-adjusted monthly average high of $101.70 hit in April 1980, a year after the Iranian revolution.

Dealers said Thursday's gains were tied to all-time weakness in the U.S. dollar -- a factor that has supported all dollar-denominated commodities -- alongside ongoing tensions between Turkey and Kurdish rebels in northern Iraq.

Although little oil is at risk from any military action by Turkey in northern Iraq -- Iraq's exports via its pipeline to Turkey have been sporadic since 2003 -- traders fear a conflict could endanger other supplies from the Middle East.

...more...

I, UpInArms, am in the Ozymandius camp - calling out speculative investing for the rise in oil prices. And that weak dollar is weakened further by the speculators that are calling for higher oil prices.

BILLINGS, Mont. - At least 16 coal-fired power plant proposals nationwide have been scrapped in recent months and more than three dozen have been delayed as utilities face increasing pressure due to concerns over global warming and rising construction costs.

The slow pace of new plant construction reflects a dramatic change in fortune for a fuel source that just a few years ago was poised for a major resurgence. Combined, the canceled and delayed projects represent enough electricity to power approximately 20 million homes.

The U.S. Department of Energy's latest tally of pending coal plants, released last week, shows eight projects totaling 7,000 megawatts have been canceled since May. That's besides the cancellation earlier this year of eight plants in Texas totaling 6,864 megawatts. Utilities have also pushed back construction on another 32,000 megawatts worth of projects, according to the Energy Department report.

-cut-

In the late 1990s, with natural gas prices rising, utilities eyed cheaper coal as the fuel of choice to meet the growing demand for electricity. Now it appears the resurgence of "King Coal" may have been overstated — or at least put in check.

As Congress considers restrictions on greenhouse gas emissions, analysts said utilities are suspending some projects while they wait to gauge the economic impact of future regulations.

Meanwhile, material costs and demand for skilled labor has prompted plant costs to spike 40 percent or more. Industry representatives blamed increased competition from China and other developing nations aggressively pursuing new coal plants.

http://news.yahoo.com/s/ap/20071018/ap_on_bi_ge/coal_power

WASHINGTON - The man who nearly 40 years ago co-founded what is now the nation's largest mortgage lender is being scrutinized by federal securities regulators as they examine his sales of the struggling company's stock.

The Securities and Exchange Commission's informal inquiry into Countrywide Financial Corp. Chief Executive Angelo R. Mozilo has been under way for a while, a person familiar with the matter said Wednesday. The person spoke on condition of anonymity because the probe has not been made public.

-cut-

Mozilo sold some $130 million in Countrywide stock in the first half of the year through a prearranged 10b5-1 trading plan. The plans, popular among corporate executives, allow a company insider to set up a program in advance for such transactions and proceed with them even if he or she comes into possession of significant nonpublic information.

The SEC has been casting a wide net in its scrutiny of Wall Street banks, investors, credit-rating agencies and others and the role they played in the subprime mortgage crisis.

http://news.yahoo.com/s/ap/20071018/ap_on_bi_ge/sec_countrywide_ceo

---

Countrywide shares have fallen more than 50 percent since January.

TOKYO (AFP) - Toyota Motor Corp. said Wednesday it was recalling more than 470,000 cars in Japan due to problems with the fuel and steering systems in the latest dent to the automaker's reputation for quality.

The Japanese auto giant will recall 277,074 passenger cars of eight models, including the Crown luxury sedan, produced in Japan between September 1999 and October 2004, the automaker said.

Toyota said the recall was aimed at exchanging parts used in the fuel control system and pipes, which may cause fuel leaks.

The company will also recall 120,406 cars of various models due to malfunction of fuel pumps, and 74,347 cars to change defective parts in the steering system.

http://news.yahoo.com/s/afp/20071017/bs_afp/japanautocompanyrecalltoyota

:donut: :donut: :donut:

Time to head out for the day. I'll be back after the close.

:hi:

Golly, who could have anticipated that the "subprime issue" wasn't really "contained" after all? That, in fact, home-building/remodeling/redecorating/refinancing/consume-consume-consume wasn't merely an economic sector, but one of the main drivers of today's entire economy?

Who could have foreseen that the credit "crunch" was in fact a true crisis? That it wasn't all tidied up with the Fed's rate cut?

Golly.

:shakes head in disbelief:

They immediately went with the...."WELL, LET'S LOOK AT THE POSITIVES!"

That's why this country is so utterly FUCKED.

THERE IS NO GOD DAMNED BRIGHT SIDE you Fuckers!!

Get your heads out of your ASSES, and QUIT BEING SO FUCKING SURPRISED!!!

For those of us in the "reality based" community, WE'RE NOT BEING SURPRISED. We can see this SHIT flying at us from a mile away.

That's why I think that only a complete and utter collapse, leading to Depression, is going to make these Fucks report the TRUTH. NOT SPIN, NOT "GOOD NEWS," BUT THE TRUTH!!

When the market drops 1,000 points over a few days, they'll still be saying...."WE NEVER COULD HAVE ANTICIPATED THIS KIND OF REACTION!!"

Yet, these guys are getting paid big bucks to tell me this BULLSHIT Live On TV, while I sit here earning pebbles. When is our society going to reward HONESTY, and TRUTH?? Guys like Peter Schiff saw this coming, yet to this day, they still get mocked and criticized for being negative.

Sometimes I wonder why I bother turning them on in the morning, although now that I know their little game, I understand that 90%+ of what they say is SPIN and MANIPULATION of the truth.

... from three to six months ago.

They are an excellent tool for back-testing theories!

things gonna' get uuugly out there...

second item is not OT, it pertains to peak oil/gas/coal etc. and impacts from decline of energy resources...big picture-relating back to current oil prices

item #1

http://www.informationclearinghouse.info/article18565.htm
latest article by Mike Whitney...

It's Time For The Banks To Face The Hangman
---
Officials in the Treasury Dept----working with their colleagues at Citigroup, J.P. Morgan and Bank of America---have concocted a scheme to rescue the banks from their massive losses in mortgage-backed securities. The group is planning to set up a $100 billion emergency fund which will purchase non-performing assets for short term debt. In truth, the fund is a bailout which provides the financial giants with an excuse for not reporting their enormous losses from bad bets.
---
That’s right; the Treasury Dept is directly involved in a scam that saves the banks while trying to “persuade” investors to “pour more money” into toxic mortgage-backed sludge. Treasury Dept officials clearly have a different idea of “moral hazard” than the rest of us.

The banks are presently holding hundreds of billions of dollars in mortgage-backed securities (MBSs) that they cannot sell—because there are no buyers ---and don’t want to take back on their balance sheets because they’ll be forced to increase their capital reserves. So they’ve decided to launch a public relations campaign to promote some goofy-sounding fund, called the “Master-Liquidity Enhancement Conduit” or M-LEC, which will allow the banks to place their unwanted bonds in Limbo until some future date when the public appetite for garbage CDOs improves.

---->more at url

item #2

http://www.paulchefurka.ca/WEAP/WEAP.html



---from conclusion...

All the research I have done for this paper has convinced me that the human race is now out of time. We are staring at hard limits on our activities and numbers, imposed by energy constraints and ecological damage. There is no time left to mitigate the situation, and no way to bargain or engineer our way out of it. It is what it is, and neither Mother Nature nor the Laws of Physics are open to negotiation.

We have come to this point so suddenly that most of us have not yet realized it. While it may take another twenty years for the full effects to sink in, the first impacts from oil depletion (the net oil export crisis) will be felt within five years. Given the size of our civilization and the extent to which we rely on energy in all its myriad forms, five years is far too short a time to accomplish any of the unraveling or re-engineering it would take to back away from the precipice. At this point we are committed to going over the edge into a major population reduction.

However, this does not mean that we should adopt a fatalistic stance and assume there is nothing to be done. In fact nothing could be further from the truth. The need for action is more urgent now than ever. Humanity is not going to go extinct. There are going to be massive and ever-growing numbers of people in dire need for the foreseeable future. We need to start now to put systems, structures and attitudes in place that will help them cope with the difficulties, find happiness where it exists and thrive as best they can. We need to develop new ways of seeing the world, new ways of seeing each other, new values and ethics. We need to do this with the aim of minimizing the misery and ensuring that as many healthy, happy people as possible emerge from this long trauma with the skills and knowledge needed to build the next cycle of civilization.

:donut: and lurkers. Hello Zen :hi:.

I remember that it was almost a year ago that I posted that I thought thing were going south and that we were headed to a bear market. I was, and still have more stocks overseas at the moment (but I am starting to think on that). In the summer of last year, I begged Mom to sell her Phoenix when she received a great unsolicited offer from a couple from CA. that was looking to retire in AZ. She's kicking herself in the pants and for 2 cents more she'd kick my step-dad for talking her out of it. They had been thinking about moving to a cheaper area of the country. They can still recoup what the paid plus a little bit, but they would have had a nice retirement cushion if they had sold as late as a year ago. When you're 73 and 78, you don't get that many chances to get a windfall. All I can do is pray that I continue to see the signs and make wise choices.

I figure that I might have missed a bit on the stock run up this year, but I sure haven't been loosing sleep over this. And as this crisis deepens and widens, you'll see more shocked 'business journalists' that will realize they bought into the scam. They have not been doing due diligence in investigating and asking the tough questions. The government figures have been a lie for some time now. They can keep lying about folks being employed and they can lie about how much we are making on average....but when the rubber meets the road-when the consumers cannot consume because they have no money-well then that is not a theory but an absolute (fact).

Happy hunting and watch out for the bears.

:hangover:

Thanks for your thoughts and insight, as always. :hi:

I for one am really sorry about the SCHIPS veto. It was a terrible blow to our future.

I've been kind of depressed lately. So, I'm calling this a depression. The recession part
of it started years ago.

Bush is penny wise and pound foolish. I hope the DEM's keep bringing it up and the GOP keeps vetoing it. This WILL affect those up for re election.

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

Last trade 77.550 Change -0.468 (-0.60%)

USDJPY Breaking Down; Next Big Bear Leg Underway?



Commentary: We were wrong yesterday in claiming that the correction higher had further to go. That obviously was not the case as the USDJPY has broken significantly lower. Wave 3 within the 5 wave bear cycle from 117.93 is underway. A short term bearish objective is at the 161.8% extension of 117.93-116.17/117.18 at 114.33. Longer term, we are very bearish and expect a drop below 111.59 in the next few weeks.

...more...

US Dollar: Volatility Rocks the Markets as Expectations for an October Cut Rises

http://www.dailyfx.com/story/bio1/US_Dollar__Volatility_Rocks_the_1192654891501.html

Sharp moves in US equities triggered widespread volatility across the financial markets. The US dollar has strengthened because it tends to benefit in environments of rising risk aversion where we see traders and investors move back to cash and into the safety of the US dollar. Market sentiment has also shifted over the course of a few trading days even though economic fundamentals have not. Fed fund futures have gone from pricing in a 32 percent chance of an interest rate cut at the end of the month to 45 percent, leaving many traders wondering what has changed. Consumer price growth this morning was tepid while housing starts and building permits were horrid. The housing market continues to struggle as starts and permits fall to the lowest level in 14 years. Although it can be argued that the CPI numbers gives the Federal Reserve more leeway to lower interest rates, traders cannot ignore the fact that oil prices is on its way to $90 a barrel. Refineries have shielded US consumers from the higher costs by taking a hit to margins; this type of trend is not expected to last. With gasoline prices well off their May highs, consumers will have to shoulder some of the burden eventually. At that time, higher inflation pressures will manifest themselves. With inflation risks skewed to the upside, the Fed will find it difficult to lower interest rates even though the latest Beige Book says that economic growth has slowed since August. Slower economic growth and faster inflation is the definition of stagflation, which was last seen in the 1970s. At the time, the Federal Reserve Chairman Volcker increased interest rates from 4.75 to 20 percent over the course 3 years to combat double digit inflation. Of course, we are far away from double digit inflation levels at the moment, but the risk of inflation rising should at least keep the Fed hawkish. Therefore we do not expect the Fed to ease.

Carry Trades Take Another Beating
Continued weakness in the Dow has led to continued weakness in the Japanese Yen crosses. Last night, the Nikkei tracked US equities lower driving carry trades to 10-day lows. These losses were recovered when the Dow opened up 60 points, but the sharp intraday reversal in US stocks triggered another wave of selling. Risk aversion is certainly part of the problem, but part of the move may also be due to the expectation that the G7 could institute tougher language towards the Japanese Yen and the Chinese Yuan. Recent comments from Eurozone and US officials seem to indicate that the Yen will become the scapegoat for dollar weakness and Euro strength. For the Europeans, getting the Yuan and Yen to strengthen would at least help to lower the value of EUR/JPY. In the meantime, it is important to remember that the weakness of the Japanese Yen will continue to bring benefits to Japan’s economy. The tertiary activity index was stronger than expected in the month of August.

Oil Hits Record Highs and then Reverses: What Does that Mean for CAD?
Canadian dollar traders cannot stop thinking about the possibility of $100 oil which is why the CAD remains strong despite weaker economic and an intraday reversal in oil prices. Oil prices hit record levels following news that Turkey will be making an incursion into Iraq. Prices however reversed shortly afterwards when inventories were stronger than expected. Although it is a fool’s game to try to pick a bottom in USD/CAD, a bottom is a growing possibility now that we are finally seeing evidence that oil prices may be topping and the Canadian economy maybe weakening. Wholesale sales tend to be a good leading indicator for retail sales which makes today’s surprise 2 percent drop worrisome. The Australian and New Zealand dollars have also seen great volatility – the end of day bounce in equities has helped both currencies recover.

...more...

http://www.finfacts.com/irelandbusinessnews/publish/article_1011533.shtml

The US dollar fell to a new record low against the euro on Thursday, on investor speculation that the US Federal Reserve will cut the federal funds rate at the end of this month from it current level of 4.75%.

The New York Board of Trade's Dollar Index, which measures the US currency against six component currencies: the euro, Japanese yen, British pound, Canadian dollar, Swedish kroner and Swiss franc, touched 77.5, the weakest since the index began in 1973.

The US housing slump is deepening, and businesses nationwide remain wary of it's impact on other sectors of the economy according to reports on economic activity supplied by the regional banks of the Federal Reserve System and published on Wednesday.

Bank of America, the second-biggest US bank by market capitalisation, reported today a 32% drop in third-quarter net income as the company booked $247 million in write-downs related to leveraged buyout loans, $607 million in trading losses and sharply higher credit-loss provisions.

http://news.yahoo.com/s/ft/20071018/bs_ft/fto101820071003019092;_ylt=AgU7D.PIgmehOvk72i1P6OD2ULEF

...

"Unduly rapid movements on foreign exchange markets are an increasing source of concern" the leaders of the German, French and Italian business federations and BusinessEurope, the European employers' association, wrote in an open letter to European politicians.

Their comments came as the euro rose above $1.43 for the first time and ahead of this weekend's meetings in Washington of the Group of Seven leading economies. The business leaders urged "clear commitments" from the G7 members on tackling the forces that are pushing the euro higher.

However, the impact of a stronger currency remains hard to discern from economic data. Exports from the 13-country eurozone increased by 4.9 per cent in August after a fall of almost 1 per cent in the previous month, according to data released by Eurostat, the European Union's statistical office.

Apart from exports to the US, which fell slightly, exports to the eurozone's main trading partners has been brisk so far this year, according to the latest data. Exports to China and Russia between January and July increased by 15 per cent and 28 per cent, the data showed. Exports to the UK - the eurozone's biggest export market - were up by 6 per cent.

The latest figures are likely to reinforce the view - prevalent in Germany and at the European Central Bank - that impact of the euro's appreciation against the dollar should not be exaggerated.

Germany's Bundesbank argued earlier this week that the pace of growth in foreign markets was the more decisive factor for German exports. It described as "only limited" the effect of the stronger euro on Germany's economy.

/...

ie. the loonie going up and the greenback going down, down, down.

The December Dollar closed sharply lower on Thursday and below September's low crossing at 77.58 thereby renewing this year's decline into uncharted territory.

...

The December Canadian Dollar closed higher on Thursday as it extends this week's trading range. The high-range close sets the stage for a steady to higher opening on Friday. Stochastics and the RSI are overbought, diverging and are neutral to bearish hinting that a short-term top might be in or is near. Closes below the 20-day moving average crossing at 1.0114 are needed to confirm that a short-term top has been posted. Upside targets are hard to project if December extends this fall's rally into new uncharted territory. First resistance is Monday's high crossing at 1.0290. First support is the 10-day moving average crossing at 1.0210 then the 20-day moving average crossing at crossing at 1.0114.

I certainly haven't seen a retail or wholesale slump at least where I am. Stores, parking lots and the beds of pickup trucks are jammed.

Keep IGNORING the price of Gold.

Do they spend more than 5 seconds at the top of the hour update, discussing the Dollar and Gold?

HOW ABOUT A FUCKING GOLD SEGMENT, at least once in awhile?

Up again today, and approaching $800. Perhaps when it reaches $1,000, they'll take notice. You know, another...."SURPRISE" moment, when they suddenly realize the $ is TANKING, and Gold is Skyrocketing.

Whoops....typo...it's approaching $800/ounce.

http://www.bloomberg.com/apps/news?pid=20601012&sid=a6JSJhWPj10M&refer=commodities

Oct. 18 (Bloomberg) -- Gold gained in London on speculation buyers in India, the biggest consumer of the metal, resumed purchases after the price fell yesterday for the first time in more than a week. Silver also advanced.

``There's a little bit more demand out of India than in the last week or so,'' said Jack Allen, chief gold trader in London at Natexis Commodity Markets, which acts on behalf of gold buyers in India. ``They bought on the dip.''

The October to December period is the busiest season for gold jewelry sales, spurred by holidays such as Diwali next month in India. Jewelry use rose 27 percent in the fourth quarter of last year, according to estimates from London-based researcher GFMS Ltd., pushing the price of gold up 6.4 percent.

Gold for immediate delivery climbed $5.08, or 0.7 percent, to $759.90 an ounce as of 12:56 p.m. in London. Prices yesterday fell $5.68, or 0.8 percent, the first drop since Oct. 8.

Gold has gained 19 percent this year, partly as a decline in the dollar versus the euro spurred investors to buy bullion as an alternative investment. Silver rose 7 cents to $13.706 an ounce.

Some investors are buying gold as a haven because of ``rising geopolitical tensions,'' London-based Barclays Capital wrote in a report today. Turkey's parliament yesterday authorized the use of military force against Kurds in Iraq.

``It wasn't the dollar that got people back in the market'' in recent days, said Michael Widmer, head of metals research at Calyon in London. ``Turkey may have been one factor.''

/...

Edit: NBC? My advice: Turn off your TV, for good. Don't throw it out the window, take it to be broken down and recycled. There are much better sources for real news, and DVDs can be watched perfectly well on your computer screen.

is galloping along in double digits and has been since Stupid started to print play money for all his stupid, wasteful projects.

http://www.marketwatch.com/news/story/gold-bugs-were-right/story.aspx?guid=%7B537BB029%2DB47F%2D46F0%2D8537%2DBD170ED0B224%7D&dist=TNMostRead

<snip>

The Gartman Letter, not at all a gold bug service but thought to reflect key hedge fund's rekindled interest in gold, sold half its holdings yesterday. But Gartman is a nervous trader. See May 7 column

Nevertheless, for the longer term, the gold bug faction lead by Bill Murphy's LeMetropole Cafe Website is cockahoop. It has long argued that the metal's price has been repressed by what it calls "The Gold Cartel " an alliance between the official sector (central banks, the U.S. Treasury) and chosen instruments (key investment banks and co-opted bullion dealers and others) to create a financial assets boom. See Website See Sept. 10 column

Reason for rejoicing: The discovery by James Turk of the Freemarket Gold & Money Report that, as Turk puts it: "the U.S. Treasury quietly made a subtle change to its weekly reports of the U.S. International Reserve Position, which includes the U.S. Gold Reserve. This change was first made May 14 ... It says the U.S. Gold Reserve is 261.499 million ounces and importantly, that the gold is now reported 'INCLUDING GOLD DEPOSITS AND, IF APPROPRIATE, GOLD SWAPPED' (emphasis added).

"This description provides clear evidence that the U.S. Gold Reserve is in play. Gold has been removed from U.S. Treasury vaults and placed on deposit, presumably in the couple of bullion banks the Treasury has selected to assist with its gold price-capping efforts. Gold placed on deposit gets loaned out by these bullion banks, and then sold into the spot market to try capping the gold price."

This is exactly what the LeMetropole Cafe gold bugs have long said was happening.

It may seem like an arcane point. But I remember when the idea that central banks were systematically selling gold at all was dismissed as crankishness. Yet it's now universally acknowledged.
And gold, by the way, has fought its way much higher just as the gold bugs said it would.

Turk's conclusion: "This new evidence provided in the U.S. Treasury report as well as the rising gold price itself suggest to me that we are now witnessing the last scramble by the gold cartel to cap the gold price. It is a vain attempt by them, acting under the instructions of the U.S. Treasury, to make the world think the dollar is worthy of being the world's reserve currency when in fact everyone knows that it is not. In short, the wheel has fallen off the truck. The dollar is heading for a train wreck. Use whatever metaphor you want, but the message is clear - the dollar is in serious trouble ...

/...

That'll last about 30 seconds. :lol:

http://www.thebusiness.co.uk/trading-floor/261957/so-what-is-a-superconduit.thtml

Well, at it's simplest it's an attempt to make all of this nasty about sub-prime mortgages go away. Details are here.

Basically, if we take all of that sub-prime debt and stick in one great big super duper box, then everyone will be happy to roll over the commercial paper that funds it because, well, because it'll be very big indeed. One problem with this idea is that even at $100 billion or so it's still a much smaller box than, say, Citigroup, and if people aren't willing to fund the larger, why would they the smaller? There's also the point from James Hamilton:

I am skeptical of any claims for a feel-good, this-will-solve-all-the-problems fix. The reality is that someone must absorb a huge capital loss. The question we should be asking from the point of view of public policy is, Who should that someone be?

My answer is: the shareholders of Citigroup.

Quite. They would have taken any upside so it is really part of our capitalist system that they take the down.

But I think a much more basic problem will scupper this idea. What is actually causing us these problems is that no one knows what these outstanding mortgages are worth. But if we go and pool them then we have to work out what they're worth in order to allocate ownership of the pool. Which means that to work this idea has to do what we already know we can't do: and if we could do it then we wouldn't be having this problem.

Which is, when you come to think of it, really a rather strange policy prescription.

edit: comment from that blog:
http://www.econbrowser.com/archives/2007/10/superconduit.html

I think the market is beginning to realize that there is something seriously wrong with this deal....and with Citibank.

The extent of the SIV exposure that Citibank holds is serious. Essentially it created structured investment vehicles, 'SIV's', that were set up off balance sheet to avoid Basel Capital rules so they could be leveraged at 10 to 15 times. The SIV's borrowed short term commercial paper...from Citi other banks and hedge funds and then invested those 'pomissory notes' in riskier, longer term paper, usually Asset Backed Securities..backed by mortgages, credit cards, student loans.

The commercial paper is generally 90 day paper and much of the paper is coming due in November. Previously the SIV would roll the paper over and trade its longer term ASB bonds as needed. Presently they can't roll over the paper, CP, and they can't sell the ASBs...so they are illiquid and depending on the quality of the ASB bonds, potentially insolvent.

Citi is the largest U.S. sponser of these vehicles in the U.S. but Barcleys and HSBC are up to their necks in these vehicles in Europe. One fear is that if these are not bailed out before Nov. they will race to dump ASB assets...as the first in will get the higher prices, even in a distress market, and as the others are forced to liquidate the ASB's they will get less and less. If Banks like Citi had to take these assets back on thier books in this sort of liquidation it would have to take losses of more than 80B on top of the 20B it already took. Total losses to banks on these SIV's would be more than 200B.

What makes matters worse is that these SIV's have been carried from the August freeze up to this point on the back of the Fed. Discount funds were made available and section 23A of the banking act was suspended to allow Citi and others to lend discount money out to the SIV's (Sec. 23A otherwise prohibits lending more than 10% of Bank capital to related non bank entities). By some reports banks have made loans approaching 35% of capital to such entitites.

The super fund deal is designed to move these troubled assets out in time and keep them off the market so the Banks do not have to take the losses and write down their capital reserves. Basic idea is to push this out till late next year and hope for the best.

Thanks Ghost Dog. :hi:

http://www.reuters.com/article/bondsNews/idUSN1829186120071018

Federal Reserve pumped a moderate amounts of liquidity into the banking system on Thursday, adding $28.25 billion in three repurchase operations.

The total was down from $35.5 billion last Thursday. Thursday has recently been the most active day of the week for repo operations, with the approaching weekend and reserve management issues at commercial banks often playing a role.

"Overall, the combined $28.25 billion is on the low side of our expectations," analysts at Wrightson ICAP said in a note to clients.

Federal funds last traded in the market at 4.75 percent, matching the Fed's target rate of 4.75 percent. Last Thursday also coincided with the start of a new two-week reserve maintenance period.

The latest operations included an addition of $6.0 billion in temporary reserves through 14-day repurchase agreements, $19.0 billion in seven-days and $3.25 billion in overnights.

...more...

Oh, and I just need a moderate $100,000 to go on down the road (hahahahaha!)

So,when they say "pumped" ,do they mean,they printed it up,and it materialized out of thin air?Is the M3 they no longer let us in on part of this mess? My word....

When Cuckoobananas took office the dollar was 10% higher.
Gold has nearly tripled.
Oil HAS tripled.
The debt ceiling just keeps getting raised.
All these together add up to scary stuff.

Thanks for this thread,marketeers.

http://www.bloomberg.com/apps/news?pid=20601080&sid=aK9QChot4eqw&refer=asia

Oct. 18 (Bloomberg) -- Asian stocks gained for the first time in three days, led by Japanese banks, after JPMorgan Chase & Co. reported profit that beat analyst estimates. BHP Billiton Ltd. climbed after the mining company said the outlook for metals ``remains positive.''

Mizuho Financial Group Inc. rose after a six-day slide and National Australia Bank Ltd. advanced from a two-week low on speculation banks can weather the worst U.S. housing slump since 1991. Hong Kong's Hang Seng Index touched 30,000 for the first time after Beijing regulators said they may allow arbitrage between shares on the mainland and in the city. China's CSI 300 Index lost 3.6 percent, the most in five weeks.

``While the problems in the U.S. housing market will probably linger, the worst is over for financial stocks,'' said Shane Oliver, who helps manage $83 billion at AMP Capital Investors in Sydney. ``While it remains to be seen how the Chinese government will implement this plan, it'll put upward pressure on Hong Kong stocks, especially those with dual listings.''

The Morgan Stanley Capital International Asia-Pacific Index added 1.2 percent to 167.42 at 4.01 p.m. in Tokyo, halting a two- day, 2.1 percent slide. Financial stocks were the biggest contributor to the advance.

Japan's Nikkei 225 Stock Average gained 0.9 percent to 17,106.09, after dropping yesterday to a two-week low. China, Singapore and New Zealand were the only markets to fall.

/...

http://yahoo.reuters.com/news/articlehybrid.aspx?type=comktNews&storyID=urn:newsml:reuters.com:20071018:MTFH58847_2007-10-18_05-32-39_PEK330686&pageNumber=0&imageid=&cap=&sz=13&WTModLoc=HybArt-C1-ArticlePage3

BEIJING/HONG KONG, Oct 18 (Reuters) - Beijing has floated the idea of allowing share swaps in firms listed in mainland China (A-shares) and in Hong Kong (H-shares), powering the Hang Seng Index to a record high, while the Shanghai market skidded.

By 0530 GMT, the Shanghai Composite Index <.SSEC> had fallen 2.8 percent to 5864.709, while the index of Chinese firms listed in Hong Kong <.HSCE> rose 1.3 percent, helping push up the benchmark Hang Seng <.HSI> to a record 30,025.07 points.

"The A-H swap reports helped spark a correction this morning as investors expect implementation of such a plan would depress the (mainland) stock prices of companies dual-listed in Shanghai and Hong Kong," said Orient Securities stock analyst Zhou Fengwu.

The Shanghai market is under heavy corrective pressure after the index repeatedly notched up record highs, finally breaching 6,000 points on Tuesday. The index has almost doubled this year, fuelled by cash thrown off by China's galloping economy and outpacing an 88 percent gain in H-shares.

A-shares are more expensive mainly because Chinese savers have few investment options beyond stocks, real estate and bank deposits. Capital controls mean they can't invest abroad, while, at home, financial markets are still underdeveloped and interest rate caps make other investment products unattractive.

With no derivative instruments enabling investors to short sell, mainland share prices have risen unimpeded by people betting against the herd.

/...

http://yahoo.reuters.com/news/articlehybrid.aspx?storyID=urn:newsml:reuters.com:20071018:MTFH61842_2007-10-18_08-07-24_HKF078633&type=comktNews&rpc=44

HONG KONG, Oct 18 (Reuters) - Hong Kong-listed China plays rose 1 percent amid reports that China was studying the idea of allowing share swaps in firms listed in Hong Kong and the mainland, effectively permitting arbitrage between shares traded in the more expensive domestic market and the cheaper Hong Kong market.

The benchmark Hang Seng Index <.HSI> ended up 0.6 percent at 29,465.05.

The China Enterprises index of H-shares <.HSCE>, or Hong Kong-listed shares in mainland companies, closed at 19,722.38.

http://yahoo.reuters.com/news/articlehybrid.aspx?storyID=urn:newsml:reuters.com:20071018:MTFH58694_2007-10-18_05-23-26_SHA335075&type=comktNews&rpc=44

SHANGHAI, Oct 18 (Reuters) - China's main stock index plunged more than 3 percent on Thursday in response to news that Beijing was soliciting views on a plan to permit the exchange of shares listed in both the domestic stock market and Hong Kong.

Such arbitrage could hurt the domestic market by shrinking the huge premiums of A shares over Hong Kong-listed H shares.

The scope of the plan is unclear, and any plan would probably take many months to implement. But the news suggests Chinese authorities are keen to cool the market, so its bull run could end for the short term at least, fund managers said.

The Shanghai Composite Index <.SSEC>, which ended the morning down 2.55 percent, was 3.15 percent lower at 5,846.077 points after 15 minutes of afternoon trade.

Dual-listed shares were hit hardest, with Industrial & Commercial Bank of China's A shares (601398.SS: Quote, Profile , Research) down 4.15 percent to 7.63 yuan while its H shares (1398.HK: Quote, Profile , Research) were flat.

http://money.guardian.co.uk/news_/story/0,,2193461,00.html

The Indian government's attempt to curb hot money flows into one of the world's fastest growing economies put shares on a rollercoaster yesterday. The main index plunged 9% before recovering to close 1.8% lower.

Trading in Mumbai's Sensitive index - or Sensex - was suspended for an hour after the markets opened. It had fallen 1,500 points in minutes, prompted by a proposal to limit the issue of participatory notes, which allow foreign funds to buy Indian shares anonymously. Investors had taken the announcement to mean a prohibition on such trades - leading to a stampede out of the market.

Investment through this route is more than 3,500bn rupees (£45bn) - compared with 319bn rupees in March 2004.

The sharp Sensex decline prompted the country's finance minister to reassure markets that authorities were only concerned with limiting the instrument. The Sensex closed at 18,716 points.

Officials have become increasingly worried by the Sensex, which rose 1,000 points in four days raising concerns that "hot capital flows" could harm the broader economy by fuelling inflation and bring more volatility to the financial system.

The Indian market's rise of 23% in the past month - the fastest in Asia - has been driven by foreign investors looking for a safe haven amid uncertainty in the west. The flows have pushed the rupee up 12.5% against the dollar, hurting exporters especially in the hi tech sector. The Indian economy expanded at an annualised rate of 9.3% over the three months to June.

/...

http://www.reuters.com/article/marketsNews/idUKN1833136520071018?rpc=44

NEW YORK, Oct 18 (Reuters) - U.S.-listed shares of overseas companies declined on Thursday after credit fears resurfaced, overshadowing better-than-expected results from cellphone maker Nokia.

Lingering credit concerns in the United States, sparked by disappointing results from Bank of America (BAC.N: Quote, Profile, Research), weighed on major indexes in Europe and Latin America.

Shares of big Chinese companies listed in New York plunged after the benchmark Hang Seng Index (.HSI: Quote, Profile, Research) briefly topped the key 30,000 mark before pulling back on Thursday.

The Bank of New York's index of leading American Depositary Receipts (ADRs) (.BKADR: Quote, Profile, Research) was down 0.30 percent, while the 30-share Dow Jones industrial average (.DJI: Quote, Profile, Research) was off 40.81 points or 0.29 percent, at 13,851.73 in early afternoon trading.

The Bank of New York's index of leading European ADRs (.BKEUR: Quote, Profile, Research) was down 0.09 percent, while its index of leading Latin American ADRs (.BKLA: Quote, Profile, Research) fell 0.45 percent.

The Bank of New York's index of leading Asian ADRs (.BKAS: Quote, Profile, Research) declined 0.44 percent.

Hong Kong-listed stocks hit records before paring gains as investors bid up mainland large caps after reports said that China was exploring the idea of allowing share swaps in firms listed in both the Hong Kong and mainland stock markets.

A spokesman from the China Securities Regulatory Commission denied there are such plans.

Hong Kong shares have rallied since August when China announced it planned to allow Chinese individuals to invest offshore in the former British colony. Continued...

/...

http://www.atimes.com/atimes/Global_Economy/IJ19Dj02.html

WASHINGTON, DC - The International Monetary Fund's latest assessment of the world economy might resonate with developing countries, critics of economic globalization, and proponents of tighter financial regulation alike.

China, India, Russia and other developing countries will propel the world economy in the year ahead, the IMF says in its latest World Economic Outlook report.

In contrast, advanced economies - hobbled by financial turmoil that originated in poorly regulated niches of their capital markets - will continue to lose steam.

China and India have emerged as the top two contributors to world production and, along with Russia, "accounted for one half of global growth over the past year", the IMF said. "Other emerging markets and developing countries have also maintained robust expansions," it added, thanks to buoyant commodity prices, strong domestic demand, stout currency reserves, and reduced debt.

Governments in developing countries have said their importance to the world economy merits a fundamental shift in the balance of power between rich and poor at the IMF and in other organs of global economic governance.

Additionally, the fund's assertion that lighter debt burdens have boosted economic performance likely will not be lost on debt-relief campaigners and the governments of heavily indebted poor countries, most of them in Africa.

The fund's acknowledgment that inequality rose alongside wealth and could imperil future progress also might chime with anti-poverty activists.

/...

http://money.cnn.com/2007/10/18/magazines/fortune/dubairedux.fortune/index.htm?postversion=2007101811

and everything's rosy except for that massive heart attack :eyes:

http://www.reuters.com/article/bondsNews/idUSWAT00830420071018

COLUMBUS, Ohio, Oct 18 (Reuters) - Cleveland Federal Reserve Bank President Sandra Pianalto said on Thursday that except for a weak housing sector the rest of the U.S. economy was performing relatively well.

"The housing sector has remained very weak, but output and employment in other sectors appears to be holding up," Pianalto told the Ohio Grantmakers Forum annual conference.

She also said that both inflation and inflation expectations "continue to be moderate and well anchored." The Fed focuses tightly on inflation in setting interest rates.

http://www.marketwatch.com/news/story/asset-backed-commercial-paper-falls-10th/story.aspx?guid=%7B6B008B0D%2D9F17%2D466E%2DBE7B%2DBA88A77E6E38%7D



hmmm...

http://www.reuters.com/article/bondsNews/idUSN1844238820071018

ST LOUIS (Reuters) - Federal Reserve policy-makers on Thursday said the economic outlook remained uncertain and adopting a simple policy rule could help them to communicate.

"The uncertainty around the outlook today is very high," Cleveland Federal Reserve President Sandra Pianalto told the Ohio Grantmakers Forum annual conference.

"It's not clear how the financial market disruptions that we've seen are going to affect economic growth ... so ... we are waiting and learning," she added.

The Fed cut interest rates by an unexpectedly bold half percentage point to 4.75 percent on September 18 to shield the U.S. economy from the slumping housing market and a global credit crunch.

The next Fed policy meeting is on Oct 30-31, and investors are pretty evenly split on whether the U.S. central bank will lower rates by a quarter percentage point, or hold their fire while waiting for more information on growth.

...more...

here's a simple rule for the Fed:

be honest - quit lying and quit propping up the market - it is stupid and is not going to work anyway.

:eyes:

http://www.democraticunderground.com/discuss/duboard.php?az=view_all&address=389x2077164

Thought this might be of interest to SMW readers. :)

http://www.leap2020.eu/GEAB-N-18-is-available!-Seven-sequences-of-the-impact-phase-of-the-global-systemic-crisis-2007-2009-_a999.html
GEAB N°18 is available! Seven sequences of the impact phase of the global systemic crisis (2007-2009)
Public announcement GEAB N°18 (October 16, 2007)


GEAB N°18 is available! Seven sequences of the impact phase of the global systemic crisis (2007-2009)
Since the existence of a global crisis has been generally acknowledged, the course of events of the impact phase of the global systemic crisis has become more accurately anticipable. The psychological factors involved as well as the possible types of actions and reactions, cast a lot of light on the upcoming processes.

Today, LEAP/E2020 researchers have come to the conclusion that the impact phase of the ongoing systemic crisis would be longer than they anticipated a year ago (cf. GEAB N°8). Indeed, the magnitude of the first banking financial shock felt last August indicated to our team of researchers that the impact will develop under the form of seven sequences or seven major shocks affecting sometimes specifically the world's main regions.

The phase of impact will spread over at least two years starting from April 2007 « tipping-point » (cf. GEAB N°12) until the end of 2009. Then will begin a so-called “settling” phase (cf. GEAB N°5) corresponding to the emergence of new sustainable global order equilibriums.

Until June 2007, previous issues of GEAB anticipated and described the system's sinking down and warned against upcoming collapses. From now on, our team will focus on anticipating the development of the seven sequences of the collapse.

In this month's issue of the GlobalEurope Anticipation Bulletin (N°18, October 16, 2007), these sequences are desbribed in nature and timing. This timeline has also been gathered in a synthetic chart.

This public announcement provides the full description of the first sequence in addition to the complete list of sequences.

Sequence 1 - US debts infect the financial planet: A century after the « Russian loans”, meet the “American debts”!

Sequence 2 - Stock market collapse, in Asia and the US mainly: between - 60% and -30% in two years according to the regions

Sequence 3 - Bursting of global housing bubbles: UK, Spain, France and emerging countries

Sequence 4 - Monetary storm: Volatility at the highest / USD at the lowest

Sequence 5 - Global economy in stagflation: Recessflation in the US, soft growth in Europe, recession

Sequence 6 - « Very Great Depression » in the US, social unrest and the militaries' growing influence on public affairs

Sequence 7 - Major acceleration in world's strategic rebuilding, attacks on Iran, Israel on the brink, Mid-eastern chaos, energy crisis

/more on Sequence 1 at link ...

http://www.bloomberg.com/apps/news?pid=20601085&sid=aXq3dOHIsAnw&refer=europe

Oct. 18 (Bloomberg) -- European stocks dropped, led by energy companies and banks, after analysts said shares of oil producers may lag behind the market and Bank of America Corp. of the U.S. reported that loan losses eroded earnings.

Royal Bank of Scotland Group Plc and ING Groep NV led financial shares lower. BG Group Plc of the U.K. declined after JPMorgan Chase & Co. downgraded the stock. SAP AG, the world's largest maker of business-management software, retreated after profit trailed analysts' estimates.

The Dow Jones Stoxx 600 Index slipped 0.8 percent to 383.37. The index has climbed 8.8 percent from a five-month low on Aug. 16 after the U.S. Federal Reserve cut borrowing costs and concerns eased that turmoil in credit markets would sap economic and profit growth.

``Earnings reports are lackluster,'' said Andrea Bailo, who helps manage the equivalent of $347 million at Banca MB SpA in Milan. ``An uncertain economic outlook and concerns that margins and revenue for financial companies may keep shrinking are weighing on the market.''

National benchmarks fell in all 18 western European markets except Finland, Portugal and Spain. The U.K.'s FTSE 100 slid 1 percent. Germany's DAX dropped 0.8 percent. France's CAC 40 lost 0.9 percent. The Stoxx 50 retreated 0.8 percent, while the Euro Stoxx 50, a measure for the euro region, sank 0.5 percent.

Royal Bank, Europe's second-largest bank, lost 1.6 percent to 523.5 pence. ING, the Netherlands' biggest financial-services firm, retreated 1.4 percent to 31.43 euros. Allianz SE, Europe's biggest insurer, sank 1.7 percent to 159.46 euros.

/...

Dow 13,888.96 3.58 (0.03%)
Nasdaq 2,799.31 6.64 (0.24%)
S&P 500 1,540.08 1.16 (0.08%)
10-Yr Bond 4.503% 0.043

NYSE Volume 3,242,973,000
Nasdaq Volume 2,071,486,000

4:30 pm : The stock market had another interesting day of trading on Thursday. The indices spent most of the day in negative territory following troublesome headlines out of the financial sector, but then staged a late day, and choppy, recovery effort that was led by large-cap tech stocks. Meanwhile, oil prices closed at new all-time highs.

The indices finished Thursday mixed, with the S&P and Dow slightly below the unchanged mark and the Nasdaq slightly above it.

Dominating the headlines, Bank of America (BAC 48.85, -1.18) reported earnings of $0.82 per share, which fell $0.24 short of the consensus estimate. Third quarter profits plunged 32%. The company experienced a 93%, or $1.33 billion, decline in earnings in its Global Corporate and Investment Banking segment due to the credit market turmoil.

Washington Mutual's (WM 30.52, -2.55) stock got clipped after it reported a 72% drop in third quarter net income to $210 million or $0.23 per diluted share. The company was downgraded to Sell at several brokerages, including Merrill Lynch and Punk Ziegel.

E*Trade (ETFC 11.47, -1.00) missing earnings estimates by a wide margin and press reports that the SEC has launched an informal investigation into the stock sales of Countrywide's (CFC) CEO also weighed on the sector.

Not all earnings news was negative today. eBay (EBAY 38.10, -2.50), Nokia (NOK 37.64, +1.11), Pfizer (PFE 25.54, -0.01) , McGraw-Hill (MHP 51.42, +0.50), UnitedHealth (UNH 48.10, -0.50), Textron (TXT 68.85, +2.72) and Parker-Hannifin (PH 75.76, +0.58) all beat their earnings estimates.

In light of the drag from Bank of America's poor showing, the financial sector (-1.1%) was the main laggard on Thursday. That was the overwhelming factor that prevented a better showing by the broader market.

The S&P 500 Retailing Index (-1.1%) was also a drag, as lingering concerns about the weakness in the housing market and the jump in oil prices sparked selling interest in the retailers.

The Materials sector (+1.2%) provided leadership following a better than expected earnings report from steelmaker Nucor (NUE 60.23, +3.08). The energy (+0.4%) and industrial (+0.4%) sectors also provided support.

Crude oil futures closed up $2.07 to a record high of $89.47. The weak dollar, along with continued fears of a Turkish invasion into Northern Iraq fueled the rally.

In currency trading, the Euro hit an all-time high today against the dollar. The US Dollar Index, which compares the U.S. dollar against major world currencies, fell 0.68%.

There were a few notable items on the economic front today, although they had a muted effect on the stock market. New claims for unemployment for the week ended October 13 rose to 337,000 from 309,000 the week before, but the overall trend still reflects a good labor market. The four-week average of 316,500 is still very low from an historical viewpoint.

Leading indicators for September rose 0.3%, which was in-line with economists' expectations. Meanwhile, the Philadelphia Fed Index for October, a regional manufacturing survey, came in at 6.8, which was slightly lower than the expected reading of 7.0.

Tomorrow, Dow components 3M (MMM 94.73, +0.47), Caterpillar (CAT 77.66, +0.89), Honeywell (HON 60.69, -0.01) and McDonald's (MCD 56.79, -0.17) are set to report their earnings. DJ30 -3.58 NASDAQ +6.64 SP500 -1.16 NASDAQ Dec/Adv/Vol 1511/1436/2.03 bln NYSE Dec/Adv/Vol 1628/1606/1.27 bln

3:30 pm : Since the last update, the indices are near their best levels of the session after making some slight gains.

After the close, Advanced Micro Devices (AMD 14.53, +0.42), Google (GOOG 637.53, +4.05 ) and Sandisk (SNDK 49.93, +0.86) and many others companies will be reporting their earnings.

There are no notable economic reports tomorrow.DJ30 -2.20 NASDAQ +6.28 SP500 -1.89 NASDAQ Dec/Adv/Vol 1580/1332/1.59 bln NYSE Dec/Adv/Vol 1737/1461/915 mln

3:00 pm : As oil prices rallied to record levels, the Dow and S&P were unable to hold their recent intraday gains. The Nasdaq has slipped close to the unchanged mark.

The Euro hit an all-time high today against the U.S. Dollar. The US Dollar Index, which compares the U.S. dollar against major world currencies, is down a considerable 0.67% this session. DJ30 -18.29 NASDAQ +1.20 SP500 -3.83 NASDAQ Dec/Adv/Vol 1559/1355/1.47 bln NYSE Dec/Adv/Vol 1668/1511/853 mln

2:30 pm : The S&P 500 is now trading slightly below the unchanged mark after briefly making it to positive territory. The indices are off their intraday highs, but are still trading near their best levels of the session.

Crude oil futures are trading at an all-time high of $89.56. Crude oil has had a bullish bias this session due to the weakening dollar. Oil prices have rallied the last few days due to fears of a Turkish incursion into northern Iraq. DJ30 +1.54 NASDAQ +3.19 SP500 -1.98 NASDAQ Dec/Adv/Vol 1534/1356/1.36 bln NYSE Dec/Adv/Vol 1598/1569/759 mln