NYSE Dow Jones finished today at:

[bigdog]

The NYSE DOW closed LOWER by 30 points on Tuesday August 21:

however Nasdaq 2,521.30 Up 12.71 (0.51%) and S&P 500 1,447.12 Up 1.57

Stocks End Erratic Session Mostly Higher

Sym Last....... ........Change..........
Dow 13,090.86 Down 30.49 (0.23%)
Nasdaq 2,521.30 Up 12.71 (0.51%)
S&P 500 1,447.12 Up 1.57 (0.11%)
10-Yr Bond 4.5900% Down 0.0440
NYSE Volume 3,069,256,000
Nasdaq Volume 1,729,207,000

Overseas, Britain's FTSE 100 rose 0.12 percent, Germany's DAX index rose 0.23 percent, and France's CAC-40 rose 0.36 percent.

In Asia, Japan's Nikkei stock average rose 1.07 percent. Hong Kong's Hang Seng Index rose 0.62 percent.

China's central bank said Tuesday it would raise its benchmark lending and deposit rates to curb inflation. The often-volatile Shanghai Composite Exchange rose 1.03 percent, to its highest-ever close.


http://biz.yahoo.com/ap/070821/wall_street.html?.v=60
Stocks End Erratic Session Mostly Higher
Tuesday August 21, 7:09 pm ET
By Joe Bel Bruno, AP Business Writer
Stocks End Erratic Session Mostly Higher As Investors Look for Fed to Cut Rates Further

NEW YORK (AP) -- Wall Street ended another erratic session mostly higher Tuesday as investors, waiting for the Federal Reserve's next move to steady the markets, made few big commitments to stocks.

Comments from policymakers and government officials tugged at a market looking for any evidence the Fed will cut rates to help contain the credit crisis that began with the failure of subprime loans.

The Fed has taken a number of steps to prop up the nation's financial institutions ahead of its scheduled Sept. 18 meeting, including injecting more liquidity into the banking industry and cutting the discount rate. But many on Wall Street want the Fed to do more, including lowering the more important federal funds rate, and to do it before next month's meeting.

Traders reacted positively to comments from Senate Banking Committee Chairman Christopher Dodd who said Fed Chairman Ben Bernanke isn't satisfied with Wall Street's response to his efforts to stabilize markets torn by anxiety about shrinking credit. Dodd, after a meeting with Bernanke and Treasury Secretary Henry Paulson, said policymakers plan to use "all tools available" to complete its mission.

But that bullishness cooled after Richmond Fed President Jeffrey Lacker said the central bank's policy must be guided by fundamentals, rather than market swings -- indicating that a cut in the fed funds rate cut might not be among the tools the Fed plans to use.

"There are two camps out there, one that thinks we need a rate cut and the other doesn't feel the economy has slowed enough to warrant one," said Janna Sampson, director of portfolio management at Oakbrook Investments. "I think which camp leads on each day, or even each hour, is what is leading to all this volatility. There's just too much uncertainty."

The 30-stock Dow Jones industrial average fell 30.49, or 0.23 percent, to 13,090.86 after moving in and out of positive territory throughout the day.

Broader market indexes were slightly higher. The Standard & Poor's 500 index rose 1.57, or 0.11 percent, to 1,447.12, and the Nasdaq composite index rose 12.71, or 0.51 percent, to 2,521.30. The Russell 2000 index of smaller companies added 0.93, or 0.12 percent, to 788.38.

Advancing issues outnumbered decliners by about 3-to-2 on the New York Stock Exchange, where consolidated volume came to 2.95 billion shares, compared with 3.3 billion shares traded Monday.

Bonds continued to rally as more investors moved money from stocks to the safer haven of the Treasury market. The yield on the benchmark 10-year Treasury note fell to 4.59 percent from 4.63 percent late Monday. Bond prices move opposite their yields.

The day's trading session echoed the erratic pattern seen Monday, when the Dow changed course several times and swung in a 200-point range before closing only slightly higher. But Tuesday's volatility was much more mild, free from triple-digit swings, as investors took a more cautious tone.

"The lack of volatility usually means markets are complacent and vulnerable," said A.C. Moore, chief investment strategist for Dunvegan Associates. "Volatility isn't a bad thing, and usually is positive after an initial down swing like we had. It means cash reserves are being raised and employed."

Trading also reflected speculation that the global credit crunch is nowhere near over. Countrywide Financial Corp. was said to be a takeover target due to losses linked to distressed subprime mortgages. And, investors expected more layoffs after Capital One Financial Corp. said it was shuttering its GreenPoint Mortgage unit and slashing 1,900 jobs.

Capital One shares rose $1.75, or 2.6 percent, to $68.47; Countrywide spiked $1.98, or 10 percent, to $21.79.

With no major economic reports scheduled, investors pored over a number of earnings reports from retailers to gauge the health of consumer spending. However, the reports failed to give the market direction.

BJ's Wholesale Club Inc. reported second-quarter profit rose 37 percent to surpass projections, and its shares rose 92 cents, or 3 percent, to $31.71.

Meanwhile, Target Corp. rose $1.01 to $60.10 after it reported profit grew 13 percent. The discount retailer said profits rose almost 13 percent, but was cautious on the rest of the year.

Staples Inc., the largest U.S. office supplies retailer, reported a higher quarterly profit on Tuesday, matching Wall Street projections. However, it issued a cautious forecast for the rest of the year. The stock fell 1 cent to $23.30.

Overseas, Britain's FTSE 100 rose 0.12 percent, Germany's DAX index rose 0.23 percent, and France's CAC-40 rose 0.36 percent. In Asia, Japan's Nikkei stock average rose 1.07 percent. Hong Kong's Hang Seng Index rose 0.62 percent.

China's central bank said Tuesday it would raise its benchmark lending and deposit rates to curb inflation. The often-volatile Shanghai Composite Exchange rose 1.03 percent, to its highest-ever close.

New York Stock Exchange: http://www.nyse.com

Nasdaq Stock Market: http://www.nasdaq.com

 

[bigdog]

The NYSE DOW closed HIGHER by 145 points on Wednesday August 22:

Sym Last....... ........Change..........
Dow 13,236.13 Up 145.27 (1.11%)
Nasdaq 2,552.80 Up 31.50 (1.25%)
S&P 500 1,464.07 Up 16.95 (1.17%)
10-Yr Bond 4.62% Up 0.03
NYSE Volume 3,309,129,000
Nasdaq Volume 1,879,202,000

Overseas
Japan's Nikkei stock average fell less than 0.01 percent. Britain's FTSE 100 rose 1.81 percent, Germany's DAX index gained 1.02 percent, and France's CAC-40 added 1.83 percent.

Bank Borrowing and Bond Sales Boost Bulls
http://biz.yahoo.com/ap/070822/wall_street.html?.v=49
Stocks Rise As Risk Appetite Returns
Wednesday August 22, 6:07 pm ET
By Madlen Read, AP Business Writer
Wall Street Advances As Investors Sell Safe Government Bonds, Banks Borrow From Fed

NEW YORK (AP) -- Wall Street showed nascent confidence in the credit markets Wednesday, surging higher in response to a pullback in Treasurys and an increase in borrowing by banks. Investors saw both trends as signs that the Federal Reserve's efforts to loosen up the credit market might be working.

The Dow Jones industrial average soared more than 140 points as the 3-month Treasury bill, which earlier in the week drew massive buying as investors sought the safety of short-term government assets, fell Wednesday. The selling boosted its yield to 3.66 percent, up from 3.59 percent late Tuesday and Monday's low of 2.51 percent -- an indication that stocks are no longer seen as risky as they were just a few days ago.

"It gives the market a little comfort that it's not all about buying risk-free securities," said Scott Wren, equity strategist for A.G. Edwards & Sons. "There's less of a flight to quality. ... In my mind, the pullback in the stock market is entirely due to what's going on in the credit market. The fundamentals have been good. Valuations are reasonable. It's just the fear of the unknown in terms of the credit market."

Wall Street, which has been angling for the Fed to help ease the credit crunch by cutting the benchmark federal funds rate, was knocked down several rungs in recent weeks by worries about lending troubles crimping economic and corporate growth.

Wednesday's advance was Wall Street's first substantial move higher after the Fed lowered its discount rate Friday, trying to calm investors and avert damage to the economy from the stock market turmoil. Although stocks rose Friday, the advance was seen as an attempt by investors to square their positions rather than a fundamental shift in sentiment. And trading Monday and Tuesday was clearly shaky.

However, market watchers cautioned that trading volumes were lower than normal Wednesday and that any troubling headline in the lending industry could still trigger credit fears and more selling.

Giving some investors reason to believe the steps the Fed has already taken may be enough, the nation's four biggest banks -- Citigroup Inc., JPMorgan Chase & Co., Bank of America Corp. and Wachovia Corp. -- said they each borrowed $500 million from the Federal Reserve's discount window.

Investors were also heartened that dealmaking is persisting despite credit jitters. An affiliate of Dubai's government said it was investing $5.1 billion in casino operator MGM Mirage; Nymex Holdings Inc.'s chairman said the commodities exchange has been meeting with suitors; and Rio Tinto PLC said it was able to close the loan syndication to fund its $38.1 billion buy of Canadian miner Alcan Inc.

The Dow rose 145.27, or 1.11 percent, to 13,236.13.

Broader stock indicators jumped as well. The Standard & Poor's 500 index rose 16.93, or 1.17 percent, to 1,464.05, while the Nasdaq composite index gained 31.50, or 1.25 percent, to 2,552.80.

As short-term government security prices fell, so did their longer-term counterparts. The 10-year Treasury note's yield climbed to 4.65 percent from 4.59 percent late Tuesday.

Also calming investors, the Fed made a relatively small repurchase of $2 billion, in which it buys that amount in collateral from dealers, who then deposit the money into commercial banks.

The fed funds rate, the rate banks charge each other for loans, fell to 4.25 percent after opening at 5.125 percent. But traders who bet on the Fed's next move were still pricing in an interest rate cut at its next meeting on Sept. 18. Some speculate the central bank will lower rates before then.

Wall Street's sentiment could turn if it doesn't get that rate cut -- which is a distinct possibility, Wren said.

"I don't want the stock market betting on, counting on, needing the Fed to cut rates in September," Wren said. "There's a lot of reasons why the Fed wouldn't cut rates. They've been talking about inflation for forever."

For now, though, investors appeared satisfied that the Fed's move Friday to lower the discount rate is helping to keep the markets liquid.

It's a positive signal that banks are using the discount window as the Fed encouraged them to, said Michelle Girard, senior economist at fixed income firm RBS Greenwich Capital. On the other hand, she said, the four institutions that did so aren't ones that have had difficulty tapping funds elsewhere.

"I still think everybody's in a watchful, waiting mode," Girard said. "Certainly, things today looked more stable ... but it's way to soon to breathe a big sigh of relief and say the turmoil has past."

Money Fund Report, a service of iMoneyNet, said that in the week ended Tuesday, $75.49 billion flowed into government institutional and government retail money funds, while $15.26, or 1.5 percent, flowed out of prime institutional money funds. But prime retail money fund assets grew by $6.80 billion, or 1.0 percent.

Prime funds hold a significant amount of commercial paper, the report said. Wall Street has worried that commercial paper, bonds that companies issue to get cash quickly, have become harder to sell.

The Russell 2000 index of smaller companies rose 10.18, or 1.29 percent, to 798.56.

Advancing issues outnumbered decliners by about 4 to 1 on the New York Stock Exchange. Consolidated volume came to 3.29 billion shares, up from 2.95 billion Tuesday but below last week's levels.

Nymex Holdings Inc. rose $7.28, or 6.1 percent, to $126.06. A Deutsche Bank analyst raised his price target on Nymex, saying even if the exchange is not bought, it can cut costs and raise prices.

MGM Mirage rose $6.62, or 8.9 percent, to $80.94 on its deal with Dubai World.

Rio Tinto rose $14.87, or 6.1 percent, to $259.40 after closing its loan syndication, and Alcan rose 99 cents to $97.11.

The housing sector still appears far from recovery, even in the high-end market. Luxury homebuilder Toll Brothers Inc. reported that its third-quarter profit tumbled, but the results were not as bad as Wall Street had anticipated. Toll Brothers rose $1.06, or 5 percent, to $22.15.

The dollar was mixed against other major currencies. Gold rose.

Crude oil fell 31 cents to $69.26 a barrel on the New York Mercantile Exchange.

Overseas, Japan's Nikkei stock average fell less than 0.01 percent. Britain's FTSE 100 rose 1.81 percent, Germany's DAX index gained 1.02 percent, and France's CAC-40 added 1.83 percent.

New York Stock Exchange: http://www.nyse.com

Nasdaq Stock Market: http://www.nasdaq.com

 

[bigdog]

The NYSE DOW closed LOWER by 0.25 points on Thursday August 23:

Sym Last....... ........Change..........
Dow 13,235.88 Down 0.25 (0.00%)
Nasdaq 2,541.70 Down 11.10 (0.43%)
S&P 500 1,462.50 Down 1.57 (0.11%)
10-Yr Bond 4.62% Down 0.00
NYSE Volume 3,109,151,000
Nasdaq Volume 1,660,963,000

Britain's FTSE 100 rose 0.01 percent, Germany's DAX index rose 0.15 percent, and France's CAC-40 rose 0.09 percent. In Asia, Japan's Nikkei stock average closed up 2.61 percent, and Hong Kong's Hang Seng Index rose 2.77 percent.

Stocks Dip As Credit Worries Persist
http://biz.yahoo.com/ap/070823/wall_street.html?.v=47
Thursday August 23, 6:46 pm ET
By Joe Bel Bruno, AP Business Writer
Wall Street Slightly Lower As Credit Worries Linger Despite Countrywide Investment

NEW YORK (AP) -- Wall Street ended a mildly erratic day slightly lower Thursday after anxiety about widening credit problems offset investor optimism about a $2 billion capital infusion into troubled mortgage lender Countrywide Financial Corp.

The market gave up a moderate early gain, but fluctuations were to be expected given the amount of uncertainty about the credit markets, and the fact that stocks posted big gains Wednesday, pushing the Dow Jones industrials up 145 points.

Bank of America Corp. announced late Wednesday it will invest the money into the nation's largest mortgage lender to help it better weather problems with defaulting subprime loans. The investment was seen as a way to not only prop up Countrywide, but also prevent any further losses at the mortgage lender from hurting the underlying economy. Countrywide's CEO Angelo Mozilo expressed his optimism about the deal in an interview on CNBC on Thursday, but when asked if the housing slump could cause a recession, he agreed.

The market will likely be trading nervously "until we get some clarity from the Fed," said Jim Herrick, manager and director of equity trading at Baird & Co.

The Federal Reserve's moves to ease the market's credit concerns, including cash injections into the banking system and a lower discount lending rate to banks, have had some palliative effect on Wall Street, evidenced by the ebbing of the extreme volatility of recent weeks. But regarding the Fed's moves and Bank of America's investment in Countrywide, "some would argue that this is a Band-Aid approach to a bigger problem ... The big unknown is how widespread this problem is," Herrick said.

The Countrywide CEO's comments "probably didn't help" the market, he said. "They're the biggest lender in America."

The market showed little response Thursday to policymakers' infusion of another $17.25 billion into the banking system to help boost liquidity, adding to the $41.25 billion the central bank has injected since the beginning of last week.

The Dow fell 0.25, or less than 0.01 percent, to 13,235.88.

Broader indexes fell modestly. The Standard & Poor's 500 index lost 1.57, or 0.11 percent, closing at 1,462.50, and the Nasdaq composite index fell 11.10, or 0.43 percent, to 2,541.70.

The Russell 2000 index of smaller companies fell 10.31, or 1.29 percent, to 788.25.

Though the major stock indexes finished a bit lower, advancing issues narrowly outnumbered decliners on the New York Stock Exchange. Consolidated volume came to a light 3.08 billion shares, down from 3.29 billion Wednesday.

Government securities were mixed. The 10-year Treasury note's yield fell to 4.63 percent from 4.65 percent late Wednesday, but the 3-month Treasury bill's yield surged to 3.93 percent from 3.66 percent.

Crude oil rose 57 cents to $69.83 a barrel on the New York Mercantile Exchange. Gold dipped slightly. The dollar was mixed against other major currencies.

Though Bank of America's move was reassuring to investors, a number of major banks and home lenders still face difficulties. On Wednesday, Lehman Brothers Holdings Inc. said it would close its BNC Mortgage unit and slash 1,200 jobs; HSBC Holdings PLC and Accredited Home Lenders Holding Co. also said they would eliminate jobs.

"Moving up or down a little is OK because I think investors need some time to digest all the news out there, and they are still really hoping the Federal Reserve will lower interest rates," said Neil Massa, equity trader at John Hancock Funds. "You're not seeing the rush to sell, nor the panic buying, that we've had before."

The Fed's cut last Friday of the discount rate, the interest it charges banks to borrow, did little to alleviate concern about distressed subprime mortgages and a difficult credit environment, although it did remove some of the volatility that has torn the stock market over the past month. Investors are hoping the Fed will take the more dramatic step of lowering its benchmark federal funds rate.

Analysts say the markets are expected to be somewhat choppy until Wall Street gets a clearer picture about the Fed's intentions when it meets on Sept. 18.

Five banks have said they responded to the discount rate cut by borrowing from the Fed. Borrowing money from the central bank is usually seen as a negative action by banks, but the move was designed to bolster the financial system. The Federal Reserve said Thursday the weekly average of borrowing, for the seven days ending Wednesday, was $1.2 billion -- the third-highest weekly average since at least the Sept. 11, 2001, terror attacks, the Fed said.

The Bank of America deal, which could ultimately give the bank a 16 percent stake in Countrywide, was viewed as a sign that U.S. financial companies are willing to step in. Last week, Countrywide borrowed about $12 billion from U.S. banks to keep it going.

Bank of America shares rose 23 cents to $51.88, while Countrywide rose 20 cents to $22.02, paring earlier gains.

But Wall Street is still worried that commercial paper, bonds that companies sell to get quick cash, has become harder to sell. The total amount of commercial paper outstanding fell for the second week in a row to $2.042 trillion in the week ended Wednesday, the Fed said, down $90.2 billion from the previous week.

Most of that loss was in asset-backed commercial paper, much of which is mortgage-backed. Asset-backed commercial paper fell $77.1 billion to $1.057 trillion, meaning that 6.8 percent of companies' commercial paper couldn't be rolled over.

Britain's FTSE 100 rose 0.01 percent, Germany's DAX index rose 0.15 percent, and France's CAC-40 rose 0.09 percent. In Asia, Japan's Nikkei stock average closed up 2.61 percent, and Hong Kong's Hang Seng Index rose 2.77 percent.

New York Stock Exchange: http://www.nyse.com

Nasdaq Stock Market: http://www.nasdaq.com

 

[bigdog]

The NYSE DOW closed HIGHER by 142 points on Frdiay August 24:

Sym Last....... ........Change..........
Dow 13,378.87 Up 142.99 (1.08%)
Nasdaq 2,576.69 Up 34.99 (1.38%)
S&P 500 1,479.37 Up 16.87 (1.15%)
10-Yr Bond 4.6330% Up 0.0150
NYSE Volume 2,541,400,000
Nasdaq Volume 1,670,961,000

Overseas
Britain's FTSE 100 rose 0.37 percent, Germany's DAX index slipped 0.06 percent, and France's CAC-40 rose 0.83 percent. In Asia, Japan's Nikkei stock average closed down 0.41 percent. Hong Kong's Hang Seng Index fell 0.20 percent. Stocks finished lower in Asia in part because

Bulls Mad Dash Ends Week on Wall St.
http://biz.yahoo.com/ap/070824/wall_street.html?.v=48
Stocks End Higher on Solid Economic Data
Friday August 24, 5:42 pm ET
By Tim Paradis, AP Business Writer
Dow, Nasdaq Finish Higher on Strong Economic Readings in Home Sales, Durable Goods Orders

NEW YORK (AP) -- Wall Street ended its calmest week in a month with a big advance Friday, rising on solid economic readings that countered the bleak sentiment that has blanketed the financial markets. The Dow Jones industrial average rose more than 140 points in a lightly traded session.

Stocks started out flat but jumped following a stronger-than-expected reading on new homes sales for July. That report followed a reading showing orders to factories for big-ticket goods rose sharply in July.

The stock market's gains Friday after several stable or positive sessions suggested that Federal Reserve policymakers and stock market investors have perhaps struck a truce -- maybe only a tenuous one -- with the Fed acknowledging it stands ready to try to fend off a calamitous seizing up of the credit markets and investors willing to focus on readings on the health of the economy before making decisions.

"I think we've stabilized a bit since the Fed has lowered the discount rate," said Nicholas Raich, director of equity research at National City Private Client Group in Cleveland, referring to the Fed's decision a week ago to cut the interest it charges to lend directly to banks. "That has calmed the market and eased some fears because we have a Fed that is willing to step in and help out."

After weeks of volatility in which triple-digit drops in the Dow became the norm, stocks showed more modest moves this week. Investors tried to gain perspective on the troubles in the subprime mortgage market, which serves borrowers with weak credit, and the credit markets as a whole. In addition, moves by some investment banks to invest in subprime lenders and to borrow money from the Fed advanced a sense that the credit market troubles could be contained. A bit of merger news -- often a catalyst for sending stocks higher -- helped embolden some investors.

The Dow rose 142.99, or 1.08 percent, Friday, closing at 13,378.87.

Broader stock indicators also advanced sharply. The Standard & Poor's 500 index rose 16.87, or 1.15 percent, to 1,479.37. The Nasdaq composite index rose 34.99, or 1.38 percent, to 2,576.69.

For the week, the Dow rose 2.29 percent, its biggest point gain since the week ended April 20. The blue chips now sit about 622 points, or 4.7 percent, below their July 19 record close.

The S&P 500 and the Nasdaq saw their biggest weekly point gains since the weeks ended March 23. The S&P rose 2.31 percent, and the Nasdaq added 2.86 percent.

Bonds had a big week. Investors initially nervous about seemingly any form of risk fled some commercial paper, the bonds that companies sell to get quick cash, and shoehorned into safer short-term Treasurys. As the week continued, they gradually ventured back into longer-duration securities and stocks.

Bonds rose Friday, with the yield on the benchmark 10-year Treasury note falling to 4.62 percent from 4.63 percent late Thursday. Bond prices move opposite their yields. The dollar was mixed against other major currencies, while gold prices rose.

Light, sweet crude rose $1.26 to $71.09 per barrel on the New York Mercantile Exchange, helping energy stocks and making Exxon Mobil Corp. one of the biggest gainers among the 30 stocks in the Dow industrials. Exxon rose $1.94, or 2.3 percent, to $85.69. Crude prices had fallen this week after it appeared there was no major damage to oil rigs as Hurricane Dean pushed through Mexico.

In economic news, the Commerce Department said new home sales rose 2.8 percent in July, after falling 4 percent in June. The increase in July lifted sales to a seasonally adjusted annual rate of 870,000 units. A second report showed that orders for durable goods -- those expected to last at least three years -- jumped 5.9 percent in July, the biggest increase in 10 months.

The housing report appeared to ease concerns that the U.S. economy might tip into recession because of a skidding housing market and tightening access to credit.

However, the upbeat reports could still disappoint investors who had been hoping weak readings would goad the Fed into cutting its benchmark fed funds rate. The stock market tumult in recent weeks and jitters in the credit market had boosted expectations among some investors that the central bank would have to intervene with a cut in the fed funds rate at or even before its Sept. 18 meeting.

The central bankers appeared determined to deploy a measured response and not necessarily give in to a Street looking for a return of easy access to cash.

"It's really day-by-day with all this news," said Raich, referring to economic data and concerns about faltering mortgages and upheaval in the credit markets. He said the latest economic readings boost a sense that the Fed isn't likely to cut rates.

"Obviously the market is adjusting to that probably not occurring. There were fears just a few weeks ago that the U.S. housing woes were going to impact the global environment."

The Chicago Board Options Exchange's volatility index, known as the VIX, and often referred to as the "fear index," has fallen for six sessions, signaling investors are regaining some confidence.

Whether the recent relative calm of the markets holds will likely depend in part on whether economic data due next week, including minutes from the Fed's next meeting and an early read on second-quarter gross domestic product, support a notion that the economy continues to push ahead despite Wall Street's recent gyrations.

In corporate news, retailer Gap Inc. late Thursday posted a 19 percent rise in quarterly earnings and announced plans for a $1.5 billion share repurchase. Gap rose $1.11, or 6.4 percent, to $18.51. Meanwhile, Marvell Technology Group Ltd. fell $2.10, or 11.8 percent, to $15.75 after the integrated circuit maker swung to a second-quarter loss amid steep charges.

Advancing issues outnumbered decliners by more than 3 to 1 on the New York Stock Exchange, where volume came to a light 1.18 billion shares compared with 1.38 billion shares traded Thursday. Lighter volume, a common occurrence in August when investors depart for vacation, generally is beneficial for stocks as buyers are often more likely to make an appearance than sellers.

The Russell 2000 index of smaller companies rose 10.68, or 1.35 percent, to 798.93.

Overseas, Britain's FTSE 100 rose 0.37 percent, Germany's DAX index slipped 0.06 percent, and France's CAC-40 rose 0.83 percent. In Asia, Japan's Nikkei stock average closed down 0.41 percent. Hong Kong's Hang Seng Index fell 0.20 percent. Stocks finished lower in Asia in part because

New York Stock Exchange: http://www.nyse.com

Nasdaq Stock Market: http://www.nasdaq.com

 

[bigdog]

The NYSE DOW closed LOWER by 57 points on Monday August 27:

Sym Last....... ........Change..........
Dow 13,322.13 Down 56.74 (0.42%)
Nasdaq 2,561.25 Down 15.44 (0.60%)
S&P 500 1,466.79 Down 12.58 (0.85%)
10-Yr Bond 4.5960% Down 0.0370
*NYSE Volume 2,498,825,000 http://www.nyse.com/marketinfo/mktsummary/brokervolume.html
* Total Shares Traded is expressed in twice total volume (TTV) where both the buy and sell shares are counted for each trade.

Nasdaq Volume 1,363,504,000
http://www.nasdaq.com/

Volume reported by Yahoo Finance today appears to be incorrect and too high
Yahoo reported http://finance.yahoo.com/
NYSE Volume 444,787,808,000
Nasdaq Volume 711,492,763,648,000

In Asian trading, Japan's Nikkei stock average rose 0.32 percent, while China's Shanghai Composite Index, which hit record closes every day last week, gained 0.8 percent to another all-time high.

In Europe, Germany's DAX index fell 0.28 percent and France's CAC-40 rose 0.38 percent. Markets in Britain were closed for a bank holiday.

http://biz.yahoo.com/ap/070827/wall_street.html?.v=38
Stocks End Lower on Drop in Home Sales
Monday August 27, 5:45 pm ET
By Tim Paradis, AP Business Writer
Dow, Nasdaq Finish Lower After Sales of Existing Homes Fall in July for Fifth Straight Month

NEW YORK (AP) -- Wall Street pulled back Monday, losing momentum from last week's gains after news that sales of existing homes slipped in July for a fifth straight month stirred concerns about the strength of the economy.

Sales of existing homes slowed to their most sluggish pace in nearly five years, while home prices fell for a record 12th straight month. The National Association of Realtors reported that existing home sales slipped by 0.2 percent in July to a seasonally adjusted annual rate of 5.75 million units. Inventories rose 5.1 percent to a record 4.59 million units.

The stock market's pullback perhaps wasn't unexpected given last week's rally and that Wall Street is still trying to sort out concerns about failing mortgages and tighter access to credit for both individuals and corporations.

A fresh round of buyout news might have acted to limit the stock market's losses Monday, which were small compared with the triple-digit plunges the Dow Jones industrials suffered in early August.

"I think there is still a little bit of nervousness about the credit market but that seems to be abating slowly," said Brian Gendreau, an investment strategist for ING Investment Management. "We had a very strong week last week and I wouldn't attribute this downmarket to any return to panic," he said, referring to concerns about bad loans and a drying up of liquidity that upset markets in recent weeks. "I think it's just a normal down day."

The Dow fell 56.74, or 0.42 percent, to 13,322.13.

Broader stock indicators also declined. The Standard & Poor's 500 index fell 12.58, or 0.85 percent, to 1,466.79, and the Nasdaq composite index fell 15.44, or 0.60 percent, to 2,561.25.

Bond prices rose, with the yield on the benchmark 10-year Treasury note falling to 4.57 percent from 4.62 percent late Friday. Bond prices move opposite their yields.

Last week was a strong one for the markets following weeks of volatility. The Dow finished up 2.29 percent for the week, the S&P 500 advanced 2.31 percent, and the Nasdaq jumped 2.86 percent.

Gendreau contends investors last week gained a sense that the subprime and credit market problems weren't necessarily going to sink the economy.

That realization, however, makes the likelihood of an interest rate cut at the Federal Reserve's next meeting less certain than it might have appeared two weeks ago, he said. Gendreau noted the Fed has "gone out of its way" to add liquidity, doing so again Monday with a $9.5 billion short-term injection into the banking system.

"The big question is whether the market will accept that as an adequate Fed response. What if the market doesn't get a rate cut? I think that won't be the end of the world."

Investors faced such questions Monday amid fresh signals that there still seems to be an appetite for corporate dealmaking. U.S. Steel Corp. said it would buy Canada's Stelco Inc. for about $1.1 billion; Swiss electrical engineer ABB Ltd. said it will sell its oil and gas production plant to Chicago Bridge & Iron NV for $950 million; and Taiwanese computer vendor Acer Inc. said it will acquire U.S. computer maker Gateway Inc. for $710 million.

But it's possible the huge buyout sums seen earlier in the year, which drove the Dow to record highs last month, might slip as debt becomes more difficult to take on. The Home Depot Inc. has tentatively agreed to sell its wholesale distribution business to private equity firms for $8.5 billion, a person with direct knowledge of the situation said Sunday, which is $1.8 billion less than originally planned. The deal includes Home Depot guaranteeing $1 billion of the debt the buyers will take on to complete the transaction.

Home Depot shares rose 57 cents to $35.25 on the tentative deal.

Gateway surged 61 cents, or 50 percent, to $1.82 after news it was being acquired by Acer.

News of tie-ups among big companies seemed to offer little help to small capitalization stocks. The Russell 2000 index of smaller companies fell 9.48, or 1.19 percent, to 789.45.

Declining issues outnumbered advancers by more than 2 to 1 on the New York Stock Exchange, where consolidated volume came to a light 2.35 billion shares compared with 2.56 billion shares traded Friday.

The dollar was mixed against other major currencies, while gold prices fell.

Light, sweet crude rose 88 cents to settle at $71.97 per barrel on the New York Mercantile Exchange.

In Asian trading, Japan's Nikkei stock average rose 0.32 percent, while China's Shanghai Composite Index, which hit record closes every day last week, gained 0.8 percent to another all-time high. In Europe, Germany's DAX index fell 0.28 percent and France's CAC-40 rose 0.38 percent. Markets in Britain were closed for a bank holiday.

New York Stock Exchange: http://www.nyse.com

Nasdaq Stock Market: http://www.nasdaq.com

 

[bigdog]

The NYSE DOW closed LOWER by 280 points on Tuesday August 28:

Sym Last....... ........Change..........
Dow 13,041.85 Down 280.28 (2.10%)
Nasdaq 2,500.64 Down 60.61 (2.37%)
S&P 500 1,432.36 Down 34.43 (2.35%)
10-Yr Bond 4.5300% Down 0.0660
NYSE Volume 3,078,093,000
Nasdaq Volume 1,679,220,000

Overseas
Japan's Nikkei stock average fell 0.09 percent, while China's Shanghai Composite Index gained 0.91 percent to another record.

In afternoon European trading, Britain's FTSE 100 fell 1.90 percent, Germany's DAX index fell 0.74 percent, and France's CAC-40 fell 2.08 percent.

Fed Minutes Send Dow, Nasdaq Freefalling
http://biz.yahoo.com/ap/070828/wall_street.html?.v=63
uesday August 28, 5:32 pm ET
By Joe Bel Bruno, AP Business Writer
Dow, Nasdaq Finish Lower As Investors Grow More Uneasy About Economy, Fed Minutes

NEW YORK (AP) -- Volatility returned to Wall Street Tuesday, sending stocks plunging as investors grew more uneasy about the economy and whether the Federal Reserve will take the steps needed to prevent credit market problems from spreading further. The Dow Jones industrials fell 280 points.

The stock market found little to assuage concerns in minutes from the Fed's last meeting, released during afternoon trading. The major indexes' losses steepened after investors parsed the minutes for signs of a possible cut in interest rates.

There had been some hope on the Street that Fed policymakers might have sent a stronger signal they were more willing to cut interest rates to help calm turbulent market conditions. But in the minutes from the Federal Open Market Committee's Aug. 7 meeting, while the central bank noted the turmoil in the markets and said, "to the extent such a development could have an adverse effect on growth prospects, might require a policy response," it didn't discuss a cut in the benchmark federal funds rate that Wall Street has wanted.

The meeting predated a number of actions taken by the central bank to try to alleviate market volatility, including the Aug. 17 lowering of the discount rate, the interest the Fed charges banks to borrow money. Wall Street, despite a calmer week after that step, seems to be growing more dissatisfied because the Fed has not yet lowered the funds rate -- and with a return to the intense volatility seen earlier this month may be trying to force the Fed to act.

"Investors are getting whipped side-to-side because their expectations, which are changing almost on a daily basis, aren't being met," said Chris Johnson, chief investment strategist at Johnson Research Group. "We've gone from the roof is on fire to the Fed is riding in on a white horse, and what we're seeing now is a reality check."

Stocks were down the entire session on further worries about the economy. The Conference Board's report that consumer confidence sagged in August amid volatile financial markets and ongoing housing problems added to the downbeat mood on the Street. Keeping alive credit worries, a Standard & Poor's housing index showed that U.S. home prices in the second quarter posted the sharpest decline since 1987.

The Dow fell 280.28, or 2.10 percent, to 13,041.85, its biggest drop since Aug. 9. Stocks rose in fairly subdued trading last week, but began to pullback on Monday on sluggish economic data.[/U]

Broader stock indicators were also lower. The Standard & Poor's 500 index was down 34.43, or 2.35 percent, at 1,432.36, and the Nasdaq composite index shed 60.61, or 2.37 percent, to 2,500.64.

Fixed-income investors were encouraged by the consumer confidence report, which could indicate the Fed will be more likely to lower rates at its September meeting. Bond prices rose, with the yield on the benchmark 10-year Treasury note falling to 4.52 percent from 4.57 percent on Monday.

Light, sweet crude fell 24 cents to $71.73 a barrel on the New York Mercantile Exchange. Oil prices fell last week on credit worries and as Hurricane Dean missed oil facilities in the Gulf of Mexico. They have rebounded in recent days, though, due to refinery problems and strong gasoline demand.

The dollar was lower against other major currencies, while gold prices were slightly lower.

Analysts said there just wasn't much to encourage stock investors in a day with many traders on vacation and little in the way of corporate news. And, the lack of rate-cut support from the Fed minutes didn't change matters.

"This is backward looking right now, the main thing you have to take out of this is the Fed continues to be worried about inflation and economic growth," said Ryan Larson, senior trader with Voyageur Asset Management. "They have already assured they stand ready to do something. But, the market was looking for more of a nod or a mention toward the credit problems -- and I don't think they got it."

Further, investors might also be positioning themselves ahead of a speech by Federal Reserve Chairman Ben Bernanke on Friday in Jackson Hole, Wyo. Investors are not only looking for further details about a possible rate cut, but any impression Bernanke has about his recent campaign of injecting liquidity into the markets.

The New York Fed -- which carries out the central bank's market operation -- on Monday announced a 10-day repurchase agreement worth $9.5 billion to extend through the Labor Day holiday. Then, on Tuesday, the Fed announced another "repo" worth $2 billion.

"It's kind of a good sign," said Stephen Stanley, chief economist at RBS Greenwich Capital, referring to the smaller amount introduced Tuesday. "Before, the Fed was providing a lot of liquidity and it wasn't getting disseminated out to the places it was needed."

Financial services stocks were among the hardest hit during the session as investors reacted to not only economic reports that could affect the group, but a downgrade of several major players. Merrill Lynch analyst Guy Moszkowski cut ratings on Citigroup Inc., Lehman Brothers Holdings Inc., and Bear Stearns Cos. due to concerns about earnings.

Lehman Brothers Holdings Inc., the fourth-largest investment house, fell $3.47, or 6 percent, to $54.28. Bear Stearns, the fifth-largest investment bank, fell $3.78, or 3.4 percent, to $108.42. Citigroup Inc. fell $1.65, or 3.5 percent, to $46.14.

Meanwhile, the S&P housing report pushed shares of homebuilders lower. When home prices fall, owners have a hard time refinancing, which can lead to more defaults and delinquencies.

Hovnanian Enterprises Inc. fell 80 cents, or 7.1 percent, to $10.46. Luxury homebuilder Toll Brothers Inc. dropped 94 cents, or 4.3 percent, to $21.06. D.R. Horton Inc. declined 46 cents, or 3 percent, to $14.75.

Pharmacy benefits management company Medco Health Solutions Inc. said it will pay $1.5 billion in cash for diabetes treatment supplier PolyMedica Corp. Shares of Medco fell $1 to $85.11, while PolyMedica surged $6.40, or 14 percent, to $51.69.

The Russell 2000 index of smaller companies was down 21.6, or 2.74 percent, at 767.83.

Declining issues beat out advancers by a 3 to 1 basis on the New York Stock Exchange, where volume came to 2.96 billion shares compared to 2.35 billion on Monday.

Overseas, Japan's Nikkei stock average fell 0.09 percent, while China's Shanghai Composite Index gained 0.91 percent to another record. In afternoon European trading, Britain's FTSE 100 fell 1.90 percent, Germany's DAX index fell 0.74 percent, and France's CAC-40 fell 2.08 percent.

New York Stock Exchange: http://www.nyse.com

Nasdaq Stock Market: http://www.nasdaq.com

 

[bigdog]

Source: http://finance.yahoo.com/
* the biz.yahoo article link below can be accessed from the finance.yahoo link above under heading "Top Financial News"

The NYSE DOW closed HIGHER by 247 points on Wednesday August 29:

Sym Last....... ........Change..........
Dow 13,289.29 Up 247.44 (1.90%)
Nasdaq 2,563.16 Up 62.52 (2.50%)
S&P 500 1,463.76 Up 31.40 (2.19%)
10-Yr Bond 4.55% Up 0.02
NYSE Volume 2,824,073,000
Nasdaq Volume 1,696,220,000

Wall Street's plunge Tuesday triggered selling in Asia. Japan's Nikkei stock average fell 1.69 percent, Hong Kong's key index fell 1.5 percent, and China's Shanghai Composite Index fell 1.64 percent.

European markets, however, advanced. Britain's FTSE 100 rose 0.49 percent, Germany's DAX index rose 0.12 percent, and France's CAC-40 rose 0.84 percent.

Stocks Skyrocket on Rate Cut Optimism
http://biz.yahoo.com/ap/070829/wall_street.html?.v=40
Stocks Rebound on Bargain Hunting
Wednesday August 29, 5:40 pm ET
By Madlen Read, AP Business Writer
Stocks Surge As Wall Street Goes Hunting for Bargains, Anticipates Rate Cut

NEW YORK (AP) -- Stocks rebounded sharply Wednesday as investors, growing more optimistic about chances for an interest rate cut, sought bargains after the previous session's huge tumble. The Dow Jones industrials gained almost 250 points.

Many investors believe the Federal Reserve will cut interest rates at its next meeting on Sept. 18 or even sooner and were preparing for Fed Chairman Ben Bernanke to hint at such a move on Friday at a speech in Jackson Hole, Wyo. The possibility of a rate cut has given Wall Street some hope that the stock market will recover from its summer volatility, and that right now, it's a good strategy to buy while the buying is cheap.

News that Bernanke said in a letter to Sen. Charles Schumer, D-N.Y., that Fed policymakers are "prepared to act as needed" if the market's turbulence hurts the economy helped pad the market's gain.

The Fed, although it has not yet indicated that it will indeed lower the benchmark fed funds rate, has been adding cash to the banking system in an attempt to keep the credit markets liquid. The Federal Reserve Bank of New York said Wednesday it would inject $5.25 billion through a one-day repurchase agreement, where it buys that amount in collateral from dealers who then deposit the money into commercial banks.

Wall Street was also enthusiastic about signs of corporate muscle. A jump in oil prices fed a rally in energy company stocks, and positive news from technology companies including Seagate Technology gave that sector a boost. Meanwhile, Altria Group Inc. spun off its Philip Morris International cigarette business.

Stock investors kept an eye on the credit markets for signs of loosening. Though the safest assets, Treasurys, are not seeing the same frantic buying they saw a couple weeks ago, assets with a bit more risk, like commercial paper, are having some trouble attracting buyers.

"Everyone's waiting for the dust to settle there," said Steven Goldman, chief market strategist at Weeden & Co. "We're on a little bit better footing, but we're in a healing process that takes time." He added that he regards a Fed rate cut as "mandatory."

The Dow rose 247.44, or 1.90 percent, to 13,293.44, near its highs of the session. The blue chip index tumbled 280 points on Tuesday amid pessimism about the Fed's intentions.

Broader stock indicators also jumped. The Standard & Poor's 500 index added 31.40, or 2.19 percent, to 1,463.76, while the Nasdaq composite index gained 62.52, or 2.50 percent, to 2,563.16.

Bonds fell back as investors moved back into stocks. The yield on the benchmark 10-year Treasury note rose to 4.57 percent from 4.52 percent late Tuesday.

Light, sweet crude soared $1.78 to $73.51 a barrel on the New York Mercantile Exchange after the U.S. Energy Department reported larger-than-expected declines in gasoline and oil inventories.

One reason for Wednesday's triple-digit rebound -- with some 100 points gained in the final hour of trading alone, is that volume again is light -- which tends to skew the market's movements. Advancing issues led decliners by about 5 to 1 on the New York Stock Exchange, where consolidated volume came to 2.77 billion compared to 2.35 billion on Tuesday.

Volatility has returned to the market this week after last week's relative calm. Investors on Tuesday sent shares sharply lower on further concerns about the strength of the economy and whether the Fed will act in an effort to prevent credit troubles from spreading further.

Michael Sheldon, chief market strategist at Spencer Clarke, said he believes investors are positioning themselves ahead of Bernanke's speech. He believes the rebound during the session shows that perhaps investors are becoming more confident the Fed will lower interest rates, and also that financial institutions exposure to distressed mortgages and loans.

"At least for a day, people feel like there is a light at the end of the tunnel," he said. "The problems facing the big brokerage firms, while not great, are being seen as at least manageable."

Bear Stearns Cos. fell $1.32 to $107.10, Lehman Brothers Holdings Inc. rose 15 cents to $54.43, and Goldman Sachs Group Inc. was up $2.77 at $173.72.

The technology sector was strong, helping to boost the Nasdaq, after several analysts raised their price targets on Seagate Technology in response to its improved fiscal first-quarter outlook. Seagate rose $1.04, or 4.2 percent, to $25.50.

Nokia Corp. was another standout in tech, after it unveiled new Internet services and gadgets for downloading music and playing games on mobile handsets. Nokia rose $1.17, or 7.3 percent, to $32.70.

The retail sector also lured buyers, after down-market Big Lots Inc. and up-market Williams-Sonoma Inc. raised their outlooks -- a good sign that companies don't foresee a significant decline in consumer spending.

Williams-Sonoma rose $3.13, or 10.6 percent to $32.70, while Big Lots rose $2.61, or 9.9 percent, to $28.91.

The housing market outlook remains weak, though. Mortgage application volume, refinance volume and purchase volume all fell about 4 percent during the week ended Aug. 24 compared to the prior week, according to the Mortgage Bankers Association's weekly application survey.

The Russell 2000 index of smaller companies rose 19.49, or 2.54 percent, to 787.32.

The dollar fell against other major currencies except the yen. Gold prices rose.

Wall Street's plunge Tuesday triggered selling in Asia. Japan's Nikkei stock average fell 1.69 percent, Hong Kong's key index fell 1.5 percent, and China's Shanghai Composite Index fell 1.64 percent. European markets, however, advanced. Britain's FTSE 100 rose 0.49 percent, Germany's DAX index rose 0.12 percent, and France's CAC-40 rose 0.84 percent.

New York Stock Exchange: http://www.nyse.com

Nasdaq Stock Market: http://www.nasdaq.com

 

[bigdog]

Source: http://finance.yahoo.com/
* the biz.yahoo article link below can be accessed from the finance.yahoo link above under heading "Top Financial News"

The NYSE DOW closed LOWER by 50 points on Thursday August 30:

Sym Last....... ........Change..........
Dow 13,238.73 Down 50.56 (0.38%)
Nasdaq 2,565.30 Up 2.14 (0.08%)
S&P 500 1,457.64 Down 6.12 (0.42%)
10-Yr Bond 4.5020% Down 0.0510
NYSE Volume 2,582,956,000
Nasdaq Volume 1,750,672,000

Japan's Nikkei stock average rose 0.88 percent, Hong Kong's key index rose 2.02 percent, and China's Shanghai Composite Index rose 1.14 percent.

In Europe, Britain's FTSE 100 finished up 1.30 percent, Germany's DAX index rose 1.09 percent, and France's CAC-40 rose 1.31 percent.

http://biz.yahoo.com/ap/070830/wall_street.html?.v=45
Stocks Fluctuate Amid Economic Worries
Thursday August 30, 5:38 pm ET
By Madlen Read, AP Business Writer
Stocks Finish Mixed Amid Ongoing Worries About Economy, Credit Market

NEW YORK (AP) -- Stocks finished a back-and-forth session mixed Thursday as investors grappled with weaker-than-expected economic data and weighed the chances of the Federal Reserve lowering interest rates.

Fed Chairman Ben Bernanke is expected to speak Friday at the central bank's annual conference in Jackson Hole, Wyo., and said in a letter Wednesday to Sen. Charles Schumer, D-N.Y., that Fed policymakers are "prepared to act as needed" if the market's turmoil damages the economy. The Fed's next meeting is Sept. 18, but some on Wall Street expect the central bank could act sooner.

The Commerce Department said second-quarter gross domestic product grew 4.0 percent -- its fastest pace in more than a year, and well above the 0.6 percent increase in the first quarter. But the broadest measure of economic health came in slightly lower than many anticipated, and the report also suggested that business investment, not consumer spending, was the main driver of growth.

In a sign that Americans' spending power may keep declining, the Labor Department said U.S. jobless claims rose last week to the highest level since April. Employment has been one of the stronger pillars of the economy recently, enabling robust consumer spending.

Considering how sluggish consumer spending has been this quarter, it's likely to post its worst back-to-back quarterly performance since early 2000, said Michael Strauss, chief economist at Commonfund. And given all of the mortgage market troubles, "there is a growing challenge for the economy to continue to grow at a 2.5 percent pace in second half of the year," he said.

To some investors, that's not bad news, because weaker-than-anticipated economic readings bolster the argument for a rate cut, which could loosen up the credit markets.

The Dow fell 50.56, or 0.38 percent, to 13,238.73 after dropping about 100 points early in the session.

Broader stock indicators finished mixed. The Standard & Poor's 500 index fell 6.12, or 0.42 percent, to 1,457.64, while the Nasdaq rose 2.14, or 0.08 percent, to 2,565.30.

In other economic news, the Office of Federal Housing Enterprise Oversight said U.S. home prices rose just 0.1 percent in the second quarter compared to the first quarter, the lowest quarterly increase since 1994.

A worse-than-expected quarterly earnings report from Freddie Mac due to troubles in mortgage lending fed some selling early in the day, as did signs that companies are still finding that demand is low for commercial paper.

In addition, Lehman Brothers lowered its ratings on investment banks, stirring concerns about how well their profits will hold in a market where its tougher and more expensive to get deals done. Goldman Sachs Group Inc., Merrill Lynch & Co. and Morgan Stanley lost ground. Goldman fell $2.34 to $171.38, Merrill Lynch slid 93 cents to $72.18 and Morgan Stanley fell $1.05 to $60.16.

In one possible bright spot, some investors regard the outlook for the technology sector as decent, giving the technology-dominated Nasdaq composite index an especially large boost.

Sigma Designs late Wednesday posted a strong second quarter profit which, excluding special items, beat Wall Street estimates. Sigma Designs rose $4.07, or 10.5 percent, to $42.70. Other tech stocks -- including Apple Inc., Cisco Systems Inc., and Motorola Inc. -- also saw solid gains. Apple rose $2.17 to $136.25, Cisco advanced 43 cents to $31.43 and Motorola tacked on 28 cents, finishing at $16.75.

Bond prices rose. The yield on the 10-year Treasury note, which moves inversely to its price, fell to 4.51 percent from 4.56 percent late Wednesday.

Bonds issued by companies are seeing much less demand than bonds issued by the government.

Asset-backed commercial paper outstanding decreased for the third straight week in the week ended Wednesday by 5.6 percent, the Federal Reserve said. That means that over all, 5.6 percent of asset-backed commercial paper was unable to be rolled over. Commercial paper comprises bonds issued by companies as a way for them to get cash quickly.

According to iMoneyNet Inc., in the week ended Tuesday, money market mutual fund investors drew cash out of prime funds -- some of which invest in commercial paper -- and instead padded their government fund assets.

The Fed injected a total of $10 billion into the banking system Thursday through repurchase agreements, in an ongoing effort to keep the markets liquid. A big reason behind the recent credit tightening has been defaults and delinquencies in subprime loans -- those given to borrowers with weak credit. The spike has led to losses for lenders and those who invested in mortgage-backed assets.

Fed funds futures have been pricing in a 100 percent chance of a rate cut for a while now, but Thursday they boosted the chance of a full-point cut by the end of the year to 100 percent.

Government-sponsored Freddie Mac, the nation's second-largest buyer and guarantor of home mortgages, said its second-quarter profit dropped 45 percent, after it recorded larger provisions on its books for bad loans. Freddie Mac fell $3.18, or 5 percent, to $60.07.

The Russell 2000 index of smaller companies fell 4.21, or 0.53 percent, to 783.11.

The dollar was higher against most other major currencies except the yen. Gold prices fell.

Light, sweet crude fell 15 cents to $73.36 per barrel on the New York Mercantile Exchange.

Trading remained volatile Thursday as volume remained low and investors continued to position themselves ahead of the long Labor Day weekend.

Declining issues outnumbered advancers by about 5 to 3 on the New York Stock Exchange, where consolidated volume came to a light 2.59 billion shares compared with 2.77 billion traded Wednesday.

Japan's Nikkei stock average rose 0.88 percent, Hong Kong's key index rose 2.02 percent, and China's Shanghai Composite Index rose 1.14 percent.

In Europe, Britain's FTSE 100 finished up 1.30 percent, Germany's DAX index rose 1.09 percent, and France's CAC-40 rose 1.31 percent.

New York Stock Exchange: http://www.nyse.com

Nasdaq Stock Market: http://www.nasdaq.com

 

[bigdog]

Source: http://finance.yahoo.com/
* the biz.yahoo article link below can be accessed from the finance.yahoo link above under heading "Top Financial News"

The NYSE DOW closed HIGHER by 119 points on Friday August 31:

Sym Last....... ........Change..........
Dow 13,357.74 Up 119.01 (0.90%)
Nasdaq 2,596.36 Up 31.06 (1.21%)
S&P 500 1,473.99 Up16.35 (1.12%)
30-Yr Bond 4.8310% Up 0.0060%
NYSE Volume 2,750,512,000
Nasdaq Volume 1,596,438,000

Japan's Nikkei stock average surged 2.57 percent, Hong Kong's key index jumped 2.13 percent, and China's Shanghai Composite Index rose 0.99 percent. In Europe, Britain's FTSE 100 rose 1.47 percent, Germany's DAX index rose 1.57 percent, and France's CAC-40 rose 1.25 percent.

http://biz.yahoo.com/ap/070831/wall_street.html?.v=60
Stocks End Up on Bush, Bernanke Speeches
Friday August 31, 9:17 pm ET
By Tim Paradis, AP Business Writer
Stocks End Higher After President Bush, Ben Bernanke Address Woes in Mortgage, Credit Markets

NEW YORK (AP) -- Wall Street closed out another erratic week with a big gain Friday after investors took comments from President Bush and Federal Reserve Chairman Ben Bernanke as reassuring signs Wall Street won't be left to deal with problems in the mortgage and credit markets on its own.

Investors balked early in Friday's session when comments from Bernanke didn't indicate a cut in the benchmark federal funds rate was imminent. However, they moved past some of their initial disappointment and appeared to concentrate on comments that the Fed would step in if needed.

Bernanke, speaking at the Fed's annual conference in Jackson Hole, Wyo., said the central bank will "act as needed" to prevent the credit crisis from hurting the national economy.

The major indexes fluctuated but held their gains after President Bush spoke about details of a plan to help borrowers facing trouble paying their mortgages.

"You've got all the speeches working for the market here," said Michael Church, portfolio manager at Church Capital Management in Philadelphia. "What we've seen in the last few weeks is that Ben Bernanke and the Federal Reserve are paying attention to what's going on. They will help correct the credit markets. For now, we're in a trading range and we have to sort through this mess."

The Dow rose 119.01, or 0.90 percent, to 13,357.74. The Dow slipped 0.16 percent for the week; for the year the blue chip index is up 7.2 percent despite the volatility of the past month.

Broader stock indicators also rose. The Standard & Poor's 500 index rose 16.35, or 1.12 percent, to 1,473.99. For the week, the S&P fell 0.36 percent, leaving it with a 3.9 percent gain for the year.

The Nasdaq composite index rose 31.06, or 1.21 percent, to 2,596.36. Bucking the trend of other major indexes, it gained 0.76 percent for the week and is up 7.5 percent for the year.

Bond prices fell. The yield on the 10-year Treasury note, which moves inversely to its price, rose to 4.53 percent from 4.51 percent late Thursday. The U.S. bond market closed early ahead of the holiday weekend, and will be closed Monday along with the stock markets.

Since the stock market started tumbling in late July on fears that problems in mortgage and corporate lending would lead to a credit freeze and hurt the economy, the Fed has injected tens of billions of dollars into the banking system and lowered its discount rate -- the charge on its loans to commercial banks. But the Fed hasn't yet said it will lower the fed funds rate, and Wall Street's uncertainty over what the central bank will do next has kept the markets volatile. The Fed's next meeting is Sept. 18 and some investors had expected the central bank might hint at or even go through with a rate cut before then.

Bush's comments that the nation's economy can "weather any turbulence" in what he termed a period of transition for the financial markets appeared to help reassure investors. He outlined proposals to assist borrowers in trouble from a pullback in the housing market and credit problems.

Economic news, as Bernanke indicated Friday, appeared less relevant than normal as investors remained focused on upheaval in the credit market and mortgage concerns.

The Commerce Department reported on personal income and spending and the core personal consumption expenditures deflator, one of the Fed's preferred gauges of inflation. Personal incomes and spending edged up by 0.5 percent and 0.3 percent, respectively, and year-over-year core PCE stayed at 1.9 percent -- within the Fed's comfort range.

The Commerce Department also said orders to factories jumped by 3.7 percent in July, topping a 3.3 percent increase that had been expected. The rise, which came after three months of modest gains, followed an 11 percent jump in demand for transportation goods, including the biggest increase in orders for cars in more than four years.

Also, the Chicago purchasing managers index rose to 53.8 in August from 53.4 in July; the index, which measures manufacturing in the Midwest, is seen as a precursor to the Institute for Supply Management index, to be released on Tuesday.

Church said the market was helped by Friday's economic figures as well as a stronger-than-expected reading on second-quarter gross domestic product released Thursday.

"The consumer has been in the crosshairs of the bears for a while now," he said, referring to concerns that a pullback in consumer spending will upend economic growth. "I think this helps clarify a lot of the situation. The news from the consumer is good."

But despite relatively upbeat economic data, it is becoming increasingly clear that the Fed is going to have to lower interest rates to prevent the credit market turmoil from dragging down the economy, said Tom Higgins, chief economist at Payden & Rygel Investment Management in Los Angeles.

"The impact on economic growth in the coming quarter is going to be what we have to watch in order to gauge whether this is going to be a full-on easing cycle at this point and what impact there is going to be on the financial markets.

"Volatility is going to be high in the coming weeks because the Fed's not sure what is going to happen due to these financial market interruptions and investors can't be sure either," Higgins said.

Wall Street might harbor some concern about the start of September, typically a difficult month for the stock markets as investors return from vacations and re-asses their holdings. The S&P 500 typically loses 0.7 percent in during the month and 0.6 percent in Septembers that precede an election year, according to the Stock Trader's Almanac.

The dollar was mixed against other major currencies, while gold prices rose.

Light, sweet crude settled up 68 cents at $74.04 per barrel on the New York Mercantile Exchange.

Advancing issues outnumbered decliners by about 7 to 1 on the New York Stock Exchange, where consolidated volume came to a light 2.69 billion shares compared with 2.59 billion shares traded Thursday. Trading in late August often is light as investors take end-of-summer vacations.

The Russell 2000 index of smaller companies rose 9.75, or 1.25 percent, to 792.86.

In market action abroad, Japan's Nikkei stock average surged 2.57 percent, Hong Kong's key index jumped 2.13 percent, and China's Shanghai Composite Index rose 0.99 percent. In Europe, Britain's FTSE 100 rose 1.47 percent, Germany's DAX index rose 1.57 percent, and France's CAC-40 rose 1.25 percent.

The Dow Jones industrial average ended the week down 21.13, or 0.16 percent, at 13,357.74. The Standard & Poor's 500 index finished down 5.38, or 0.36 percent, at 1,473.99. The Nasdaq composite index ended up 19.67, or 0.76 percent, at 2,596.36.

The Russell 2000 index finished the week down 6.07, or 0.76 percent, at 792.86.

The Dow Jones Wilshire 5000 Composite Index -- a free-float weighted index that measures 5,000 U.S. based companies -- ended Friday at 14,847.70, down 48.51, or 0.33 percent, for the week. A year ago, the index was at 13,062.54.

New York Stock Exchange: http://www.nyse.com

Nasdaq Stock Market: http://www.nasdaq.com

 

[bigdog]

Monday September 3, the U.S. financial markets were closed due to the Labor Day holiday.

http://biz.yahoo.com/ap/070903/world_markets.html?.v=5
European, Asian Markets Finished Mixed in Light Trading; U.S. Markets Closed for Labor Day

LONDON (AP) -- European and Asian stock markets finished narrowly mixed Monday in mostly light trading, while the U.S. financial markets were closed for the Labor Day holiday.

"It's a quiet day today largely because of the U.S. holiday." said Philip Shaw, a strategist at Investec Securities.

The U.S. holiday dried up liquidity, and brokers said they expect trade to remain muted for the early part of the week.

"The reality is, there's only one market that moves the others along," said Stuart Eaves, a Wellington-based broker at Waddell Johnston McCarthy.

Chinese stocks touched a record while Japanese stocks declined.

In Europe, the U.K. FTSE 100 index inched up 0.19 percent while the German DAX 30 index advanced 0.14 percent. But the French CAC-40 share index ended 0.2 percent lower.

Both France's Gaz de France and utility Suez SA turned back from early gains to trade lower after announcing new terms for their long-awaited deal to combine the companies.

Gaz de France shares slid 2.7 percent, while Suez shares lost 3.3 percent.

The pan-European Dow Jones Stoxx 600 index ended 0.3 percent higher at 377.01.

In Asia, Japan's benchmark Nikkei 225 Index stock index closed slightly lower Monday, down 0.27 percent.

The market was dragged lower by the resignation of the minister of agriculture and by government data showing capital expenditure by Japanese companies fell in the spring quarter for the first time in four years.

In China, the Shanghai Composite Index gained 2 percent to close above 5,300 for the first time, as airlines surged on news of a deal involving China Eastern Airlines, Singapore Airlines and Temasek Holdings.

Elsewhere in Asia, Hong Kong shares dipped 0.3 percent, weighed down by profit-taking and expectations of a delay in a program allowing Chinese investors to buy Hong Kong stocks.

 

[bigdog]

Source: http://finance.yahoo.com/
* the biz.yahoo article link below can be accessed from the finance.yahoo link above under heading "Top Financial News"

The NYSE DOW closed HIGHER by 91 points on Tuesday September 4:

Sym Last....... ........Change..........
Dow 13,448.86 Up 91.12 (0.68%)
Nasdaq 2,630.24 Up 33.88 (1.30%)
S&P 500 1,489.42 Up 15.43 (1.05%)
10-Yr Bond 4.5580% Up 0.0210
NYSE Volume 2,766,595,000
Nasdaq Volume 1,914,252,000

Overseas,
Japan's Nikkei stock average fell 0.63 percent. Britain's FTSE 100 rose 0.98 percent, Germany's DAX index rose 0.96 percent, and France's CAC-40 rose 0.38 percent.

http://biz.yahoo.com/ap/070904/wall_street.html?.v=38
Stocks Rise After Manufacturing Data
Tuesday September 4, 5:35 pm ET
By Madlen Read, AP Business Writer
Stocks Rise After Reports Show Mild Declines in Manufacturing Growth, Construction Spending

NEW YORK (AP) -- Wall Street extended its rebound from the big summer slump Tuesday after dips in manufacturing growth and construction spending raised investors' hopes for an interest rate cut.

The market also got a boost as investors bought technology stocks viewed as bargains after being battered during last month's selloff. Tech and telecom are still seeing takeover activity despite credit concerns, and furthermore, demand for computers, cell phones and other such products appears strong.

Though Tuesday's economic data came in a bit slower than anticipated, the market built on the sharp gains it made Friday. Ahead of Labor Day weekend, Federal Reserve Chairman Ben Bernanke said the central bank stood ready to "act as needed" to prevent credit troubles from hurting the national economy -- which investors believed hinted at the Fed's willingness to lower rates.

When investors returned from the long weekend, the Institute for Supply Management said the manufacturing sector expanded more slowly in August than in July, and the Commerce Department said construction activity fell in July by 0.4 percent. Wall Street was pleased that the snapshots were neither too weak nor too strong -- suggesting the economy isn't falling apart, but that the Fed will be inclined to cut the benchmark federal funds rate when it meets Sept. 18, after more than a year of holding rates steady.

"We haven't had anything happen to change that outlook," said Arthur Hogan, chief market analyst at Jefferies & Co. "Everything still points to a Fed that could lower rates."

In recent weeks, more difficult access to credit has made it harder for consumers and businesses to borrow, raising fears that tighter access to money will hurt the economy.

The Dow Jones industrial average rose 91.12, or 0.68 percent, to 13,448.86. The blue-chip index is about 4 percent below its July 19 record close of 14,000.41, but about 4.7 percent above its summer closing low of 12,845.78 reached Aug. 16.

The biggest gainer among the 30 Dow companies was General Motors Corp., which rose $1.18, or 3.8 percent, to $31.92 after reporting a surprising increase in August sales.

Broader stock indicators also advanced. The Standard & Poor's 500 index added 15.43, or 1.05 percent, to 1,489.42, and the technology-dominated Nasdaq composite index surged 33.88, or 1.30 percent, to 2,630.24.

In keeping with its promise to aid the markets as needed, the Fed on Tuesday added a relatively moderate $5 billion to the banking system through a repurchase agreement.

Further bolstering the argument for a rate cut, U.S. Federal Reserve Bank directors, in minutes released Tuesday from three discount rate meetings from July 9 to Aug. 6, said a contracting U.S. housing market posed a risk to growth.

Bond prices slipped as stocks gained. The yield on the 10-year Treasury note, which moves inversely to its price, rose to 4.55 percent from 4.53 percent late Friday. The dollar was mixed against other major currencies, while gold prices rose.

Advancing issues outnumbered decliners by about 12 to 5 on the New York Stock Exchange, but trading was still relatively light. Consolidated volume came to 2.76 billion shares, up only modestly from Friday's 2.69 billion.

And though the stock market appeared stable Tuesday, Wall Street is entering one of its historically most difficult months as investors return from their vacations and reassess their holdings. Last September was good for the stock market, but on average, the S&P 500 loses 0.7 percent during the month and 0.6 percent in Septembers that precede an election year, according to the Stock Trader's Almanac.

Jitters about the credit markets are not as high as they were in August, but they haven't been placated completely.

"Everybody is holding their breath, looking for more evidence that subprime and all those woes are still out there," said Kim Caughey, equity research analyst, Fort Pitt Capital Group.

Helping to boost the Nasdaq, discount wireless phone service provider MetroPCS Communications Inc. offered to acquire rival Leap Wireless International Inc. for about $5.12 billion in stock. Leap Wireless soared $10.97, or 15.1 percent, to $83.47, and MetroPCS rose $1.36, or 5 percent, to $28.65.

Giving tech an additional lift, Yahoo Inc. was named a "top pick" by a Bear Stearns analyst, an analyst raise his price target on Intel Corp., and excitement grew over Apple Inc.'s iPhone. Yahoo rose $1.24, or 5.5 percent, to $23.97; Intel rose 43 cents to $26.18; and Apple rose $5.68, or 4.1 percent, to $144.16.

"Technology stocks are the cheapest they've looked in 10 years, on an earnings multiple basis," Hogan said, noting that the tech sector was particularly pummeled during this summer's stock plunge.

Stocks in the energy sector also surged as New York Mercantile Exchange crude futures rose $1.04 to $75.08 a barrel on the possibilities of the hurricane season intensifying and OPEC deciding not to raise production when it meets next week.

The Russell 2000 index of smaller companies rose 7.83, or 0.99 percent, to 800.69.

Overseas, Japan's Nikkei stock average fell 0.63 percent. Britain's FTSE 100 rose 0.98 percent, Germany's DAX index rose 0.96 percent, and France's CAC-40 rose 0.38 percent.

New York Stock Exchange: http://www.nyse.com

Nasdaq Stock Market: http://www.nasdaq.com

 

[bigdog]

Source: http://finance.yahoo.com/
* the biz.yahoo article link below can be accessed from the finance.yahoo link above under heading "Top Financial News"

The NYSE DOW closed LOWER by 143 points on Wednesday September 5:

Sym Last....... ........Change..........
Dow 13,305.47 Down 143.39 (1.07%)
Nasdaq 2,605.95 Down 24.29 (0.92%)
S&P 500 1,472.29 Down 17.13 (1.15%)
10-Yr Bond 4.4730% Down 0.0850
NYSE Volume 2,991,598,000
Nasdaq Volume 1,999,210,000

Overseas
Japan's Nikkei stock average fell 1.60 percent. Britain's FTSE 100 closed down 1.66 percent, while Germany's DAX index declined 1.73 percent, and France's CAC-40 tumbled 2.14 percent.

http://biz.yahoo.com/ap/070905/wall_street.html?.v=38
Stocks Fall As Street Looks for Rate Cut
Wednesday September 5, 5:37 pm ET
By Tim Paradis, AP Business Writer
Stocks Decline After Beige Book Reading Doesn't Guarantee Rate Cut; Housing Data Stir Unease

NEW YORK (AP) -- Stocks finished sharply lower Wednesday as a jittery Wall Street sold off on a report showing a large drop in pending home sales and read anecdotal data from the Federal Reserve's regional banks as offering little more assurance that an interest rate cut is likely. The Dow Jones industrial average dropped more than 140 points.

Bond prices soared as investors again sought the safety of government debt, sending yields to multi-month lows. The yield on the 10-year Treasury note, which moves inversely to its price, fell to 4.47 percent, its weakest level since March 14, and down from 4.56 percent at Tuesday's close.

The National Association of Realtors said pending sales of existing homes fell in July to the lowest level in nearly six years. Though the report did support the argument for a rate cut, it also worried investors who are nervous about the housing market growing so weak that it drags the economy into recession.

The Fed's Beige Book, which describes economic conditions in regions around the country, said that while upheaval in the financial markets has made the housing slump worse, the overall economy hasn't been widely harmed. Wall Street appeared disappointed that the Beige Book's findings didn't deliver a sure-bet for a rate cut, which markets have been pining for.

"The markets are reacting to absolutely every bit of information which is coming along tick by tick," said Walter Gerasimowicz, chairman and chief executive of Meditron Asset Management in New York, downplaying the market's initial pullback after release of the Beige Book as an overreaction. "I'm happy to see that the underlying economy is still in fairly sound mode."

He noted that had the Beige Book shown a weakened economy investors might have been enthusiastic about the increased chance for a rate cut but grown more concerned about the prospect of a faltering economy.

The downcast mood on Wall Street Wednesday ran counter to a somewhat more upbeat mood of recent sessions. The Dow Jones industrial average rose in three of the last four sessions, jumping 91 points Tuesday, as investors sought stocks that have been turned into bargains by declines.

The Dow ended down 143.39, or 1.07 percent, at 13,305.47, after having fallen as much as 200 points in the session.

Broader stock indicators also lost ground. The Standard & Poor's 500 index fell 17.13, or 1.15 percent, to 1,472.29, and the Nasdaq composite index fell 24.29, or 0.92 percent, to 2,605.95.

The dollar was mixed against other major currencies, while gold prices slipped.

Investors' concerns about spreading fallout from market turmoil also intensified after the European Central Bank said it would consider steps to curb recent euro money market upheaval. The statement was a sign the ECB might not lift its benchmark interest rate when it meets Thursday; there had been speculation it would raise the rate a quarter percentage point to 4.25 percent.

In the U.S., the Fed has held rates steady for more than a year in a bid to reduce inflation that remains above its comfort level. Investors concerned about a stumbling housing market, rising mortgage defaults and tightening access to credit have been hoping the Fed will reduce its benchmark fed funds rate when it meets Sept. 18.

"It seems like every day you've got some news that subprime and some of the effects of the housing impact aren't quite so bad and the next day you've got something that says it is worse than we thought in another area. I just think it's a continuation of the choppiness and that worries that have been going on," said Kent Croft, chief investment officer at Croft Leominster Investment Management in Baltimore.

He said Wall Street could take months to sort out its concerns about issues such as bad subprime loans, which are made to borrowers with weak credit.

Gerasimowicz noted that the key three-month interbank lending rate, or LIBOR, rose Wednesday to 5.72 percent, its highest level since January 2001. He noted that a month ago the rate was 5.36 percent and that the increase illustrates that short-term rates are still under pressure. The rise is significant because many consumer loans are tied to this rate.

"The market remains very unpredictable and a lot of that has to do with the subprime debacle that we're facing," he said.

Still, Gerasimowicz remains optimistic, describing the recent market volatility as merely a "financial pothole" in a larger worldwide growth cycle.

In corporate news, Mattel Inc. announced a third major recall of Chinese-made toys in little more than a month because of excessive amounts of lead paint. The world's largest toy maker said the move affects about 800,000 toys. Mattel rose 1 cent $21.98.

Apple Inc. fell $7.40, or 5.1 percent, to $136.76 after investors were disappointed about newly announced versions of the company's iPod digital media players.

Costco Wholesale Corp., the warehouse retailer, fell $2.61, or 4.2 percent, to $59 after reporting its August same-store sales rose a weaker-than-expected 2 percent largely due to strong international sales. Same-store sales, or sales at stores open at least a year, are a widely followed indicator of retail health.

Most major retailers will be reporting their August sales on Thursday.

Declining issues outnumbered advancers by more than 3 to 1 on the New York Stock Exchange, where consolidated volume came to 2.93 billion shares, compared with 2.76 billion shares traded Tuesday.

The Russell 2000 index of smaller companies fell 10.23, or 1.28 percent, to 790.46.

Crude futures rose 65 cents to settle at $75.73 per barrel on the New York Mercantile Exchange.

Overseas, Japan's Nikkei stock average fell 1.60 percent. Britain's FTSE 100 closed down 1.66 percent, while Germany's DAX index declined 1.73 percent, and France's CAC-40 tumbled 2.14 percent.

New York Stock Exchange: http://www.nyse.com

Nasdaq Stock Market: http://www.nasdaq.com

 

[imajica]

Dow 13,363.35 57.88 (0.44%)
Nasdaq 2,614.32 8.37 (0.32%)
S&P 500 1,478.55 6.26 (0.43%)
10-Yr Bond 4.5000% 0.0080
NYSE Volume 2,826,259,000
Nasdaq Volume 1,876,055,000


its all in the green

 

[bigdog]

Source: http://finance.yahoo.com/
* the biz.yahoo article link below can be accessed from the finance.yahoo link above under heading "Top Financial News"

The NYSE DOW closed HIGHER by 57 points on Thursday September 6:

Sym Last....... ........Change..........
Dow 13,363.35 Up 57.88 (0.44%)
Nasdaq 2,614.32 Up 8.37 (0.32%)
S&P 500 1,478.55 Up 6.26 (0.43%)
10-Yr Bond 4.5000% Up 0.0080
NYSE Volume 2,826,259,000
Nasdaq Volume 1,876,055,000

Overseas,
Japan's Nikkei stock average rose 0.61 percent. Britain's FTSE 100 rose 0.68 percent, Germany's DAX index rose 0.44 percent, and France's CAC-40 advanced 0.45 percent.

http://biz.yahoo.com/ap/070906/wall_street.html?.v=54
Stocks Gain on Fed Speeches, Data
Thursday September 6, 7:28 pm ET
By Lauren Villagran, AP Business Writer
Stocks Gain After Jobless Claims Drop, Strong August Retail Sales

NEW YORK (AP) -- Wall Street shook off early uncertainty to close moderately higher Thursday as a series of mixed economic reports managed to make investors more optimistic about the chances for an interest rate cut.

The market was uneasy after the Mortgage Bankers Association said homeowners beginning the foreclosure process in the second quarter reached a record 0.65 percent. It was the third consecutive quarter that the figure reached an all-time high. Though investors want growth to be slow enough to merit a rate cut when the Federal Reserve meets Sept. 18, they don't want to see the economy weaken to the point of recession.

But investors gleaned some reason for optimism from comments from Dallas Federal Reserve President Richard Fisher, who said inflationary pressures are "increasingly well behaved," and that the central bank is "listening carefully" to business conditions. St. Louis Fed President William Poole made similar comments earlier in the day.

"They didn't explicitly say they were going to cut rates, but some of the talk from the day gave reason to believe they may be leaning that way," said Todd Salamone, director of trading at Schaeffer's Investment Research. "The market is driven by words from the Fed that reinforces the idea they'll step up if necessary, and it is also very much data driven."

Reports on the job market, service sector, and August retail sales did not disappoint investors. Last week, for the first time in seven weeks, claims for unemployment benefits dropped, the Labor Department said. It also reported that worker productivity jumped to an annual growth rate of 2.6 percent in the April to June quarter, much better than expected.

The snapshots boded well for Friday's August employment report, the economic reading that investors are considering the most important this week.

The Dow Jones industrial average rose 57.88, or 0.44 percent, to 13,363.35, after earlier wobbling in and out of positive territory.

Broader stock indicators also lifted. The Standard & Poor's 500 index rose 6.26, or 0.43 percent, to 1,478.55, and the Nasdaq composite index rose 8.37, or 0.32 percent, to 2,614.32.

Bonds fell as stocks recovered ground. The yield on the benchmark 10-year Treasury note, which moves inversely to its price, rose to 4.51 percent from 4.47 percent late Wednesday. The dollar was lower against most other major currencies, while gold prices jumped.

The credit markets, whose problems caused the volatility on Wall Street over the past month, remain tight. The New York Fed, which carries out the central bank's market operation, injected a total of $31.25 billion through three repurchase agreements Thursday -- the largest amount the Fed has injected in weeks -- to help keep the markets liquid.

The Fed also reported that about 3 percent of asset-backed commercial paper, a type of bond companies sell for quick cash, was unable to be rolled over in the week ended Wednesday.

Further, Wall Street doesn't want to see signs of accelerating inflation -- such as surging crude oil prices, which briefly spiked above $77 a barrel Thursday on supply worries after the U.S. embassy in Nigeria said American and other Western interests in the country are at risk of a terrorist attack and after news that Syrian armed forces had opened fire on Israeli fighters. Inflationary risks have kept the Fed from lowering interest rates in recent months.

A barrel of light, sweet crude rose 57 cents to $76.30 on the New York Mercantile Exchange.

John O'Donoghue, co-head of equities at Cowen & Co., said most of Thursday's news was fairly benign. He explained that most people were waiting to see the jobs report on Friday, which could provide the markets a better idea about what the Fed's next move will be.

"They're waiting for the jobs number," he said. "I think people are kind of sitting on their hands."

With investors on alert for any sign that recent financial market turmoil has hurt consumer spending, better-than-expected August sales from major retailers Wal-Mart Stores Inc. and Target Corp. perhaps came as a welcome surprise.

Wal-Mart said same-store sales, which measure business at stores open at least one year, rose 3.1 percent, while Target said same-store sales in August rose 6.1 percent.

The two biggest retailers beat Wall Street estimates. Wal-Mart rose 31 cents to $42.76, and Target rose $1.51, or 2.4 percent, to $63.39.

Tony department store chain Saks Inc., teen apparel retailer Pacific Sunwear of California Inc. and children's clothier The Children's Place Retail Stores Inc. also topped analyst projections. Saks rose 49 cents, or 3.2 percent, to $15.81, Pacific Sun advanced 74 cents, or 5.2 percent, to $14.99, while Children's Place fell 29 cents to $27.68.

Meanwhile, the Institute for Supply Management's reading on the non-manufacturing sector showed that activity expanded in August at the same rate as in July.

Not only were investors worried about the rising foreclosure rate, but late Wednesday, mortgage lender Countrywide Financial Corp. said it will cut another 900 jobs nationwide after eliminating about 500 positions last month. The nation's largest mortgage lender by volume employs about 60,000 people.

Countrywide fell 33 cents, or 2.1 percent, to $18.48.

Lehman Brothers Holdings Inc. fell 52 cents to $53.83 after the nation's fourth-largest investment bank announced it is laying off 850 people from its home lending business in the U.S. and Britain. The company previously announced the closure of its BNC Mortgage LLC subsidiary.

Advancing issues outnumbered decliners by about 3 to 2 on the New York Stock Exchange, where consolidated volume came to about 2.74 billion shares, down from 2.93 billion on Wednesday.

The Russell 2000 index of smaller companies rose 2.46, or 0.31 percent, to 792.92.

Overseas, Japan's Nikkei stock average rose 0.61 percent. Britain's FTSE 100 rose 0.68 percent, Germany's DAX index rose 0.44 percent, and France's CAC-40 advanced 0.45 percent.

New York Stock Exchange: http://www.nyse.com

Nasdaq Stock Market: http://www.nasdaq.com

 

[bigdog]

Source: http://finance.yahoo.com/
* the biz.yahoo article link below can be accessed from the finance.yahoo link above under heading "Top Financial News"

The NYSE DOW closed LOWER by 250 points on Friday September 7:

Sym Last....... ........Change..........
Dow 13,113.38 down 249.97 (.87%)
Nasdaq 2,565.70 down 48.62 (1.86%)
S&P 500 1,453.55 down 25.00 (1.69%)
10 Yr Bond(%) 4.37% down 0.13

The Dow Jones industrial average ended the week down 244.36, or 1.83 percent, at 13,113.38. The Standard & Poor's 500 index finished down 20.44, or 1.39 percent, at 1,453.55. The Nasdaq composite index ended down 30.66, or 1.18 percent, at 2,565.70.

In Asia, Japan's Nikkei stock average closed down 0.83 percent. Hong Kong's Hang Seng Index fell 0.28 percent, while the often-volatile Shanghai Composite Index fell 2.16 percent.

http://biz.yahoo.com/ap/070907/wall_street.html?.v=45
Stocks Drop After Weak Jobs Report
Friday September 7, 6:26 pm ET
By Tim Paradis, AP Business Writer
Stocks Fall Sharply, Bond Prices Soar Following Weak Employment Report

NEW YORK (AP) -- Wall Street plunged while bonds surged higher Friday after the government reported payrolls in August fell for the first time in four years rather than rising as had been expected. The Dow Jones industrial average fell nearly 250 points.

Investors were taken aback by the Labor Department's report that payrolls dropped by 4,000 in August, the first decline since August 2003. Economists had forecast payrolls would increase by 110,000. However, the unemployment rate held steady at 4.6 percent as expected.

Wall Street had been awaiting the report all week as it sought to determine how well the economy was holding up under the weight of a faltering housing market, a rise in mortgage defaults and tightening availability of credit. While the report is backward looking, investors regard it as an important proxy of the economy's overall health.

"This certainly cements the case for a Fed action at the next meeting. The debate has really become about whether it will be 25 or 50 basis points," said Zach Pandl, economist at Lehman Brothers Holdings Inc., referring to whether the central bank would reduce rates by a quarter point or a half percentage point. He expects the Fed will reduce rates by 25 basis points to 5 percent when it meets Sept. 18.

The Dow fell 249.97, or 1.87 percent, to 13,113.38.

Broader stock indicators also skidded. The Standard & Poor's 500 index fell 25.00, or 1.69 percent, to 1,453.55, and the Nasdaq composite index fell 48.62, or 1.86 percent, to 2,565.70.

The three major indexes, though still in positive territory for the year, all finished the week down more than 1 percent.

Bonds, meanwhile, soared following the jobs report as investors sought safety. The yield on the benchmark 10-year Treasury note, which moves inversely to its price, skidded to 4.37 percent from 4.51 percent late Thursday.

The dollar fell sharply following the report, as the likelihood of an interest rate cut appeared to increase. Dollar-based assets would earn less interest if the Fed were to cut rates. In addition, gold prices rose sharply because some investors would be expected to abandon a weakening dollar and move into gold if the central bank lowers rates.

"This is just the expected response," said Pandl, referring to Wall Street's reaction to the jobs report. "The markets are repricing for lower growth and expectations of Fed cuts."

While the employment report clearly unnerved an already jittery Wall Street, some investors had been looking for a weak showing, arguing that a drop in employment could offer adequate reason for the Federal Reserve to lower short-term interest rates. But the employment report appeared to signal too much weakness even for those pulling for a rate cut. Making matters worse, the Labor Department revised the jobs figures for June and July, saying the economy added fewer jobs than had been reported.

The central bank has left its fed funds rate unchanged for more than a year as it has sought to hold down inflation. But recent upheavals in financial markets have stirred concerns of a slowing economy and led some investors to expect a rate cut.

Consumers who feel confident in their ability to continue to earn are likely to keep spending, investors reason, and consumer spending is responsible for about two-thirds of U.S. economic activity.

"It is a pretty solid data point that gives people real cause for concern," said James Sonneborn, wealth manager at RegentAtlantic Capital LLC, noting that he generally tries to avoid placing too much emphasis on a single economic reading.

"It certainly gives the Fed cover to cut rates and the rationale," he said, noting that the central bank has sounded fewer cautionary notes recently about inflation, always one of its chief concerns. Still, Sonneborn doesn't expect the employment report will prompt the Fed to cut rates before its meeting on the 18th.

"They never want to show a panic. You might get a change in the commentary or the tone when the Fed president's speak publicly. That might be their opportunity to verbally guide people toward what they're thinking."

Several regional Fed presidents are scheduled to speak next week.

Comments from one former Fed official -- Alan Greenspan -- perhaps added to Wall Street's unease Friday. The Wall Street Journal reported the former Fed chairman on Thursday told a group of economists in Washington that the recent market turmoil is similar to that of 1987, when the Black Monday crash occurred, and of 1998, when the big hedge fund Long-Term Capital Management came close to collapsing. Greenspan's comments come about a month ahead of the 20th anniversary of the stock market's crash on Oct. 19, 1987.

The flurry of disappointing news came a day after stocks had posted sizable gains on the notion that mixed economic data revealed an economy that was holding up but not growing at such a pace to push inflation higher and rule out a rate cut. A variety of retailers posted stronger-than-expected sales for August, while a report on the nation's service sector, where most Americans work, showed it expanded in August at the same rate as in July.

And on Wednesday, a series of anecdotal reports from the Fed's regional banks found only limited instances in which the jitters in the financial markets in the past seven weeks -- particularly in August -- had dampened business activity outside the real estate sector.

Investors in oil appeared able to largely shake off concerns about the employment picture. Light, sweet crude rose 40 cents to $76.70 a barrel on the New York Mercantile Exchange.

Declining issues outnumbered advancers by more than 3 to 1 on the New York Stock Exchange, where consolidated volume came to 3.19 billion shares, up from 2.74 billion on Thursday.

The Russell 2000 index of smaller companies fell 17.13, or 2.16 percent, to 775.79.

The U.S. jobs report prompted broader selling in markets overseas. Britain's FTSE 100 closed down 1.93 percent, Germany's DAX index fell 2.43 percent, and France's CAC-40 fell 2.63 percent.

In Asia, Japan's Nikkei stock average closed down 0.83 percent. Hong Kong's Hang Seng Index fell 0.28 percent, while the often-volatile Shanghai Composite Index fell 2.16 percent.

The Dow Jones industrial average ended the week down 244.36, or 1.83 percent, at 13,113.38. The Standard & Poor's 500 index finished down 20.44, or 1.39 percent, at 1,453.55. The Nasdaq composite index ended down 30.66, or 1.18 percent, at 2,565.70.

The Russell 2000 index finished the week down 17.07, or 2.15 percent, at 775.79.

The Dow Jones Wilshire 5000 Composite Index -- a free-float weighted index that measures 5,000 U.S. based companies -- ended Friday at 14,655.52, down 192.18, or 1.29 percent, for the week. A year ago, the index was at 12,948.96.

New York Stock Exchange: http://www.nyse.com

Nasdaq Stock Market: http://www.nasdaq.com

 

[bigdog]

Source: http://finance.yahoo.com
* the biz.yahoo article link below can be accessed from the finance.yahoo link above under heading "Top Financial News"

The NYSE DOW closed HIGHER by 14 points on Monday September 10:

Sym Last....... ........Change..........
Dow 13,127.85 +14.47 +0.11%
Nasdaq 2,559.11 -6.59 -0.26%
S&P 500 1,451.70 -1.85 -0.13%
10 Yr Bond(%) 4.3240% -0.0440

Overseas, Japan's Nikkei stock average fell 2.22 percent. Britain's FTSE 100 fell 0.92 percent, Germany's DAX index fell 0.82 percent, and France's CAC-40 fell 0.80 percent.

http://biz.yahoo.com/ap/070910/wall_street.html?.v=13
Stocks Close Mixed After Fed Speeches
Monday September 10, 6:07 pm ET
By Madlen Read, AP Business Writer
Stocks Close Mixed As Investors Digest Fed Speeches Ahead of Next Week's Rate Decision

NEW YORK (AP) -- Wall Street finished a volatile session mixed Monday as investors grappled with the possibility that the Federal Reserve might not lower interest rates as much as they hope.

The stock market racheted up and down throughout the day, with Wall Street still nervous after Friday's dismal employment report. The data, which showed the first monthly decline in jobs in four years, rekindled fears about housing and credit market weakness bleeding into the overall economy and squeezing consumer spending.

Speeches from Fed officials Monday seemed to give investors a bit more reason to be optimistic about the economy, but the officials avoided hinting at how the central bank might alter rates.

San Francisco Fed President Janet Yellen said that while market turmoil has the potential to hurt the economy, rate policy should not be used to shield investors from losses. Dallas Fed President Richard Fisher said the economy appears to be "weathering the storm," and Atlanta Fed President Dennis Lockhart said investors should consider Friday's unemployment report in the context of a mostly strong batch of retail sales reports.

For many investors, a rate cut after more than a year of the Fed standing pat on rates is practically a given. The debate, as they see it, is whether the Fed on Sept. 18 will reduce rates by a quarter percentage point or a half percentage point to loosen up the tight credit markets -- and also, if the central bank will continue to reduce rates as the year goes on.

There could be a major sell-off if the Fed doesn't reduce rates next week, said Scott Fullman, director of investment strategy for I. A. Englander & Co. And until then, movements will likely to be choppy, and exaggerated by low trading volumes. "It's very volatile here, but we're not seeing a tremendous amount of volume. People are on the sidelines. I think people want to be convinced of what's happening before they get back in."

The Dow Jones industrial average rose 14.47, or 0.11 percent, to 13,127.85, after falling 250 points on Friday and switching directions several times throughout the session Monday.

Broader stock indexes fell. The Standard & Poor's 500 index slipped 1.85, or 0.13 percent, to 1,451.70, and the Nasdaq composite index declined 6.59, or 0.26 percent, to 2,559.11.

Bond prices rose as stocks slipped, pushing the yield on the benchmark 10-year Treasury note down to 4.33 percent from 4.37 percent late Friday.

Stocks experienced a short relief rally in afternoon trading after Gen. David Petraeus said to Congress that he recommended to President Bush that the drawdown of U.S. forces from Iraq start this month, said Alfred Goldman, chief market strategist at A.G. Edwards & Sons Inc. But the gains were quickly lost.

Fresh economic data was sparse Monday. The one notable report came from the Federal Reserve, which said consumer credit rose at an annual rate of 3.7 percent in July, down from a 5.9 percent growth rate for consumer debt in June.

The Russell 2000 index of smaller companies fell 5.98, or 0.77 percent, to 769.81.

Declining issues outnumbered advancers by about 5 to 3 on the New York Stock Exchange, where consolidated volume came to 2.85 billion shares, down from 3.19 billion on Friday.

On Friday, the Labor Department's jobs report further depressed a market already uneasy about a lackluster housing market, tightening availability of credit and a rise in mortgage defaults. Because of Friday's retrenchment, the three major indexes all lost more than 1 percent for the week.

While some investors had hoped for weak data to help the Fed justify cutting interest rates when it meets next week, the market was shocked by a loss in jobs when a gain had been expected. With consumer spending accounting for about two-thirds of economic activity, Wall Street is concerned about any loss in employment that would make consumers hesitant to spend.

On Monday, the market absorbed more news of fallout from mortgage failures. Countrywide Financial Corp. said after the closing bell Friday it would cut as many as 12,000 jobs -- up to 20 percent of it work force -- as the mortgage lender tries to ride out upheaval in the mortgage industry. The company expects new mortgages to fall 25 percent next year.

Countrywide fell $1, or 5.5 percent, to $17.21.

Not all financial stocks were weak, though -- British billionaire Joseph Lewis, a magnate who controls more than 170 companies, acquired a 7 percent stake in investment bank Bear Stearns Cos. Bear Stearns rose $2.13, or 2 percent, to $107.50.

Some technology stocks were also strong. Advanced Micro Devices Inc. rose 33 cents, or 2.6 percent, to $12.94 after releasing its newest microprocessor, and Apple Inc. rose $4.94, or 3.8 percent, to $136.71 after selling its 1 millionth iPhone on Sunday.

Intel Corp. initially rose after boosting its third-quarter sales outlook, but finished down 12 cents at $25.35.

Light, sweet crude futures for October delivery rose 79 cents to $77.49 a barrel on the New York Mercantile Exchange.

The dollar slipped against most other major currencies, while gold prices, which have risen sharply in recent weeks amid concerns about the strength of the U.S. dollar, extended their gains. A rate cut by the Fed could hurt dollar-denominated assets, prompting some investors to shift into gold.

Overseas, Japan's Nikkei stock average fell 2.22 percent. Britain's FTSE 100 fell 0.92 percent, Germany's DAX index fell 0.82 percent, and France's CAC-40 fell 0.80 percent.

New York Stock Exchange: http://www.nyse.com

Nasdaq Stock Market: http://www.nasdaq.com

 

[bigdog]

Source: http://finance.yahoo.com
* the biz.yahoo article link below can be accessed from the finance.yahoo link above under heading "Top Financial News"

The NYSE DOW closed HIGHER by 180 points on Tuesday September 11:

Sym Last....... ........Change..........
Dow 13,308.39 +180.54 +1.38%
Nasdaq 2,597.47 +38.36 +1.50%
S&P 500 1,471.49 +19.79 +1.36%
30-yr Bond 4.6480% +0.0070
NYSE Volume 3,015,314,000
Nasdaq Volume 1,794,790,000

Overseas, Japan's Nikkei stock average added 0.71 percent. Britain's FTSE 100 rose 2.13 percent, Germany's DAX index rose 1.02 percent, and France's CAC-40 rose 1.69 percent.

European equity markets looked past a pared-back forecast for annual economic growth on Tuesday. The European Commission cut its growth estimate to 2.5 percent from 2.6 percent, saying the region's economy may have peaked as tighter credit conditions raise the risk of a global slowdown.

http://biz.yahoo.com/ap/070911/wall_street.html?.v=32
Stocks End Higher on Hopes for Rate Cut
Tuesday September 11, 5:33 pm ET
By Joe Bel Bruno, AP Business Writer
Wall Street Holds Gains on Further Hopes Interest Rate Cut Is on the Way

NEW YORK (AP) -- Wall Street rose sharply Tuesday as investors grew more confident that the Federal Reserve will lower interest rates next week, even after its chairman gave no clues about the central bank's intentions. The Dow Jones industrials rose 180 points.

Traders had been hoping Fed Chairman Ben Bernanke would give some indication during a speech to Germany's Bundesbank about the Fed's next move. Wall Street is looking for a rate cut to help bolster the U.S. economy and ease problems caused by tightening credit availability.

Instead, Bernanke talked about the need for countries around the globe to cooperate toward economic stability. He said "global imbalances" occur when countries run up trade deficits or produce big trade surpluses.

"Bernanke didn't really say anything about interest rates, but at this point the feeling on Wall Street is that it's mandatory," said Steven Goldman, chief market strategist, Weeden & Co., speaking about a rate cut. "At this point, the market is pricing in not just one rate cut, but a couple, and that's helping to stabilize stocks."

The stock market has been volatile since midsummer, with jitters high about the sluggish housing market and debt aversion causing a standstill in the credit markets and damaging the economy. Last Friday's jobs report, which showed the first monthly payrolls decline in four years, aggravated those concerns. Mark Zandi, chief economist at Moody's Economy.com, predicted the risk of a recession in the next six to 12 months has increased to nearly 40 percent from less than 15 percent before subprime concerns began riling the markets.

Investors nervous about the U.S. economy slipping into recession got a bit of relief from the Commerce Department's report on the U.S. trade deficit. The trade gap narrowed modestly in July to $59.2 billion from $59.4 billion in June, thanks to record exports of farm goods, autos and other products. Many economists had anticipated a widening of the deficit.

The Dow rose 180.54, or 1.38 percent, to 13,308.39.

The Standard & Poor's 500 index rose 19.79, or 1.36 percent, to 1,471.49, while the Nasdaq composite index rose 38.36, or 1.50 percent, to 2,597.47.

Bonds fell as investors withdrew money to buy stocks, pushing the 10-year Treasury note's yield up to 4.37 percent from 4.27 percent late Monday. The dollar weakened against the euro and British pound, while gold moved higher.

Tim Krause, director of risk management at California-based Zecco Trading, agreed that Tuesday's rally was due to institutional investors being optimistic about a rate cut. However, he's not entirely convinced the Fed will cut rates ,given that it will impact an already weakened dollar -- which is now near a record low versus the euro.

"The Fed is between a rock and a hard place," he said. "If they lower interest rates, the dollar will keep getting crushed. If they don't, the subprime mess will get worse and hurt the housing market."

Though much of the attention was on the central bank, there was some corporate news that influenced stocks.

The Nasdaq got a boost due to ImClone Systems Inc., which along with Bristol-Myers Squibb Co. said the drug Erbitux improved the survival rate of lung cancer patients in a late-stage study. ImClone soared $6.97, or 18.4 percent, to $44.90. Bristol-Myers rose 23 cents to $28.23.

The Dow, meanwhile, benefited from strong gains in McDonald's Corp. shares. The fast food chain, which is one of the 30 companies that make up the Dow, rose $1.61, or 3.2 percent, to $51.76 after reporting that global sales at restaurants open at least a year rose 8.1 percent in August.

Boeing Co. also helped the blue chips advance after it was awarded a $1.1 billion U.S. Air Force contract. Shares picked up $2.11, or 2.2 percent, to $97.44.

General Motors Corp. rose $1.33, or 4.6 percent, to $30.54 as investors got a glimpse of new models at the Frankfurt Auto Show.

Crude oil rose 74 cents to $78.23 after OPEC agreed to boost its crude output by 500,000 barrels a day in an effort to calm markets unnerved by high energy prices and worried that supplies could grow tight by the end of the year. It was expected that OPEC would keep current output targets in place, although Saudi Arabia was said to be pushing for a production increase.

Advancing issues outnumbers decliners about 2 to 1 on the New York Stock Exchange, where consolidated volume came to 2.97 billion shares, compared to 2.87 billion on Monday.

The Russell 2000 index of smaller companies was up 12.46, or 1.62 percent, at 782.27.

Overseas, Japan's Nikkei stock average added 0.71 percent. Britain's FTSE 100 rose 2.13 percent, Germany's DAX index rose 1.02 percent, and France's CAC-40 rose 1.69 percent.

European equity markets looked past a pared-back forecast for annual economic growth on Tuesday. The European Commission cut its growth estimate to 2.5 percent from 2.6 percent, saying the region's economy may have peaked as tighter credit conditions raise the risk of a global slowdown.

New York Stock Exchange: http://www.nyse.com

Nasdaq Stock Market: http://www.nasdaq.com

 

[bigdog]

Source: http://finance.yahoo.com
* the biz.yahoo article link below can be accessed from the finance.yahoo link above under heading "Top Financial News"

The NYSE DOW closed LOWER by 16 points on Wednesday September 12:

Sym Last....... ........Change..........
Dow 13,291.65 -16.74 -0.13%
Nasdaq 2,592.07 -5.40 -0.21%
S&P 500 1,471.56 +0.07 +0.00%
30-yr Bond 4.6870% +0.0390
NYSE Volume 2,909,941,000
Nasdaq Volume 1,939,990,000

In Asia, Japan's Nikkei stock average fell 0.50 percent after Japanese Prime Minister Shinzo Abe announced Wednesday he would resign, ending a troubled year-old government that has suffered damaging scandals.

In Europe, Britain's FTSE 100 rose 0.41 percent, Germany's DAX index rose 0.20 percent, and France's CAC-40 rose 0.53 percent.

http://biz.yahoo.com/ap/070912/wall_street.html?.v=35
Stocks Flat As Dollar Falls, Oil Soars
Wednesday September 12, 5:36 pm ET
By Madlen Read, AP Business Writer
Stocks Flat As Market Awaits Fed Decision Amid Tumbling Dollar and Soaring Oil

NEW YORK (AP) -- Wall Street finished essentially flat Wednesday, with investors still confident the Federal Reserve will lower rates next week but treading cautiously as oil prices crossed $80 a barrel for the first time and the dollar extended its decline.

Investors widely expect the central bank next Tuesday to lower the benchmark federal funds rate by a quarter percentage point. The decision has not been guaranteed, though, and furthermore, many investors worry that a quarter-point rate reduction might not be enough to address investors' worries over the ongoing housing slump and credit market tightness.

"The more urgent problem than what the price of money is, is the availability of money," said John Merrill, chief investment officer of Tanglewood Capital Management in Houston. "There's such a scramble for cash."

Meanwhile, crude oil's spike above $80 a barrel, the highest it's ever been in intraday trading, and a weakening dollar fed concerns about inflation. Accelerating inflation is not only a threat to consumer spending -- a pillar of the economy that Wall Street fears is weakening -- but it also gives the Fed a reason to keep rates where they are.

Crude oil settled at a record $79.91 a barrel on the New York Mercantile Exchange after the U.S. government reported declines last week in crude and gasoline supplies. Jack Ablin, chief investment officer at Harris Private Bank, pointed out that price surges in commodities hit Americans particularly hard because they're denominated in the dollar, which on Wednesday dipped to a new record low versus the euro.

"I think the Fed has to pay attention to this. They need as much elbow room as they can get to make a decision they feel is right," Ablin said. "Should this dollar continue to fall, it has the potential to limit the Fed's ability to respond to the economy."

However, rising energy prices and a falling dollar have some advantages on Wall Street. High energy costs evince strong global demand, and boost the profits of oil and gas companies, while a weaker dollar benefits U.S. companies that draw revenue from overseas.

The Dow Jones industrial average fell 16.74, or 0.13 percent, to 13,291.65, after weaving in and out of positive territory throughout the session. A day earlier, the blue-chip index soared 180 points.

Broader stock indexes were narrowly mixed. The Standard & Poor's 500 index rose 0.07, or less than 0.01 percent, to 1,471.56, and the Nasdaq composite index fell 5.40, or 0.21 percent, to 2,592.07.

Government bond prices slipped. The yield on the 10-year Treasury note, which moves opposite its price, rose to 4.41 percent from 4.36 percent late Tuesday.

The dollar extended its slide against the euro, hitting a new record low amid expectations of a rate cut from the Fed, which would make the U.S. currency a less attractive investment vehicle. The 13-nation euro rose as high as $1.3914 in late European trading, surpassing its previous record of $1.3852 reached July 24.

The dollar also weakened against the yen -- an important currency for the stock market because of the yen carry-trade, where people invest their yen in higher-yielding dollar assets. When the dollar falls against the yen, people tend to exit these positions.

Over the last four weeks increasing energy prices have boosted the energy sector by about 7 percent. On Wednesday, Exxon Mobil Corp. rose 71 cents to $87.65; Chevron Corp. rose 60 cents to $89.19; and ConocoPhillips rose $1.32 to $84.85.

Gold prices also gained. In other commodities trading, wheat rose above $9 a bushel to a fresh peak, before retreating to close at $8.605 a bushel.

As Americans deal with rising food and energy costs, the housing and credit markets appear to remain far from a rebound. Treasury Secretary Henry Paulson said Wednesday that financial market turmoil will take some time to be resolved, especially in the area of subprime mortgages, which are home loans given to borrowers with spotty credit histories.

Home buying is not at a standstill, though. The Mortgage Bankers Association's weekly survey showed that as rates fell in the week ended Sept. 7, mortgage application volume rose 5.5 percent, refinance volume jumped 6 percent, and the purchase index increased 5.2 percent, adjusted for the Labor Day holiday.

Declining issues outnumbered advancers by about 9 to 7 on the New York Stock Exchange. Consolidated volume came to a relatively low 2.90 billion shares, down slightly from 2.97 billion shares on Tuesday.

The Russell 2000 index of smaller companies fell 4.37, or 0.56 percent, to 777.90.

In Asia, Japan's Nikkei stock average fell 0.50 percent after Japanese Prime Minister Shinzo Abe announced Wednesday he would resign, ending a troubled year-old government that has suffered damaging scandals.

In Europe, Britain's FTSE 100 rose 0.41 percent, Germany's DAX index rose 0.20 percent, and France's CAC-40 rose 0.53 percent.

New York Stock Exchange: http://www.nyse.com

Nasdaq Stock Market: http://www.nasdaq.com

 

[bigdog]

Source: http://finance.yahoo.com
* the biz.yahoo article link below can be accessed from the finance.yahoo link above under heading "Top Financial News"

The NYSE DOW closed HIGHER by 133 points on Thursday September 13:

Sym Last....... ........Change..........
Dow 13,424.88 +133.23 +1.00% -- Day's Range: 13292.38 - 13469.27
Nasdaq 2,601.06 +8.99 +0.35% -- Day's Range: 2589.41 - 2612.70
S&P 500 1,483.95 +12.39 +0.84% -- Day's Range: 1471.47 - 1489.58
30-yr Bond 4.7430% +0.0560
NYSE Volume 2,917,299,000
Nasdaq Volume 1,704,764,000

In markets abroad, Britain's FTSE 100 added 0.91 percent, Germany's DAX index rose 0.84 percent and France's CAC-40 rose 1.05 percent. In Asia, Japan's Nikkei stock average ended up 0.15 percent, while Hong Kong's Hang Seng Index rose 0.93 percent.

http://biz.yahoo.com/ap/070913/wall_street.html?.v=46
Stocks Rise on Countrywide, GM News
Thursday September 13, 6:39 pm ET
By Tim Paradis, AP Business Writer
Stocks Rise After Countrywide Gets Financing, GM Progresses in Health Care Talks

NEW YORK (AP) -- Stocks advanced solidly Thursday, led by strong gains among the blue chips and mortgage lender Countrywide Financial Corp., which signaled a possible thawing in the credit markets with the announcement it had lined up additional financing.

The Dow Jones industrial average rose by more than 130 points after General Motors Corp. surged 10 percent amid reports that talks between the automaker and workers over the thorny issue of health care costs have perhaps been fruitful. Meanwhile, McDonald's Corp. closed at an all-time high after boosting its dividend and bond prices fell sharply.

Investors, who have been nervous about the economic fallout from rising mortgage defaults and tightness in the credit markets, were relieved to hear Countrywide -- the nation's largest mortgage lender -- secured $12 billion in credit.

"It appears that this credit crunch may not be as bad as some people thought," said Charles Norton, principal and portfolio manager at GNICapital, crediting the Countrywide news with lifting overall investor sentiment.

The Dow rose 133.23, or 1.00 percent, to 13,424.88.

Broader stock indicators also advanced, though more modestly. The Standard & Poor's 500 index rose 12.39, or 0.84 percent, to 1,483.95, and the technology-heavy Nasdaq composite index rose 8.99, or 0.35 percent, to 2,601.06.

Government bond prices fell sharply as stocks advanced and investors grew more confident they could move out of the safest bets. The yield on the 10-year Treasury note, which moves opposite its price, jumped to 4.48 percent from 4.41 percent late Wednesday.

"Some other financings have been done. There have been some corporate bond issues," Norton said, listing some of the reasons beyond the Countrywide news for a "slight easing" in concerns about credit.

While he warned further examples of credit distress are likely to pop up, he said much of the intransigence in the credit markets could ease as fear dissipates.

"A lot of this has to do with psychology," Norton said. "When you see some stabilization, it gives people more confidence to lend."

Wall Street shrugged off a record close in crude oil prices, which edged up 18 cents to $80.09 per barrel on the New York Mercantile Exchange. It was the first time oil has closed above $80.

Gold prices fell for a second day as the U.S. dollar came off an all-time low against the euro.

Economic news, while not commanding Wall Street's attention as did the credit markets and some corporate news, nevertheless appeared to help boost the mood on Wall Street. The Federal Reserve reported Thursday afternoon that the outstanding volume of commercial paper fell by $8.2 billion to $1.917 trillion, the fifth consecutive week it has fallen. The decline signals the corporate short-term commercial paper market could be stabilizing. Commercial paper comprises bonds issued by companies as a way for them to get cash quickly.

The Labor Department reported claims for unemployment benefits rose last week -- the sixth increase in seven weeks -- but less than analysts expected. Low unemployment, at 4.6 percent, has been one of the economy's strengths.

The rise in jobless claims follows last week's reading on August payrolls, which declined for the first time in four years and sent stocks plummeting amid worries that credit tightness and market turmoil had hit the labor market. But Thursday's report appeared to assuage some concerns.

In addition, the Treasury Department reported the federal deficit is running at a pace well below last year even as spending in August reached a record high.

On Wednesday, investors refrained from major moves ahead of next week's meeting of the Fed's policymakers. Wall Street has grown more confident the Fed will cut its benchmark federal funds rate.

With the backdrop of supportive economic readings, investors were free to follow some upbeat corporate news. Countrywide rose $2.31, or 14 percent, to $18.93 after the company added to its borrowing capacity. The move comes after Countrywide borrowed $11.5 billion and sold a $2 billion stake to Bank of America Corp. in recent weeks to keep its retail banking and mortgage businesses running.

The news helped lift the financial sector, which has struggled because of anxiety about the credit markets. Bear Stearns & Cos., Merrill Lynch and Goldman Sachs rose about 3 percent, and Morgan Stanley and Lehman Brothers rose 3 percent or more.

Wall Street also applauded apparent progress in Detroit. GM rose $3.04, or 10.1 percent, to $33.29, following a Wall Street Journal report that union officials might go along with a plan to form a health care trust fund that the union would control. The plan could allow U.S.-based automakers to shed billions in costs. Ford also rose on the news, closing up 42 cents, or 5.6 percent, at $7.92.

McDonald's, which like GM is a component of the Dow industrials, advanced $3.10, or 6.1 percent, to $54.30 after increasing its dividend 50 percent a day after reporting stronger-than-expected sales for August.

Advancing issues outnumbered decliners by about 3-to-2 on the New York Stock Exchange, where consolidated volume came to 2.87 billion shares compared with volume of 2.90 billion Wednesday.

The Russell 2000 index of smaller companies rose 2.45, or 0.31 percent, 780.35.

In markets abroad, Britain's FTSE 100 added 0.91 percent, Germany's DAX index rose 0.84 percent and France's CAC-40 rose 1.05 percent. In Asia, Japan's Nikkei stock average ended up 0.15 percent, while Hong Kong's Hang Seng Index rose 0.93 percent.

New York Stock Exchange: http://www.nyse.com

Nasdaq Stock Market: http://www.nasdaq.com

 

[bigdog]

Source: http://finance.yahoo.com
* the biz.yahoo article link below can be accessed from the finance.yahoo link above under heading "Top Financial News"

The NYSE DOW closed HIGHER by 17 points on Friday September 14:

Sym Last....... ........Change..........
Dow 13,442.52 +17.64 +0.13%
-- Day's Range: 13323.84 - 13459.75 and 52wk Range: 11,762.70 - 14,121.00
Nasdaq 2,602.18 +1.12 +0.04%
-- Day's Range: 2577.73 - 2603.63 and 52wk Range: 2,292.29 - 2,724.74
S&P 500 1,484.25 +0.30 +0.02%
-- Day's Range: 1473.18 - 1485.99 and 52wk Range: 1,343.57 - 1,555.90
30-yr Bond 4.7240% -0.0190
NYSE Volume 2,649,810,000
Nasdaq Volume 1,604,089,000

In markets abroad, Germany's DAX index fell 0.51 percent and France's CAC-40 lost 0.49 percent. In Asia, Japan's Nikkei stock average closed up 1.94 percent, while Hong Kong's Hang Seng Index gained 1.47 percent.

http://biz.yahoo.com/ap/070914/wall_street.html?.v=27
Stocks Finish Flat Ahead of Fed Meeting
Friday September 14, 5:44 pm ET
By Tim Paradis, AP Business Writer
Stocks Post Quiet End to Strong Week Ahead of Fed Meeting; Dow Has Best Week Since April

NEW YORK (AP) -- Wall Street finished a strong week little changed Friday after investors looked past weaker-than-expected economic readings and focused on the ramifications of the Federal Reserve's decision on interest rates next week.

Stocks initially fell sharply Friday following a government report that August retail sales excluding automobiles declined precipitously. The report suggested consumers held off spending in the face of turmoil in the financial markets, an unwelcome development that some on Wall Street are hoping could be reversed by a rate cut. Some investors regarded the readings as supporting the case for a rate cut when Fed policy makers meet Tuesday.

"Emotions are running fairly high," said Robert Schaeffer, vice president at Becker Capital Management Inc. in Portland, Ore. "I think you're seeing a lot of normal gyrations in anticipation of whatever the Fed does. They're looking at the economic data and trying to cypher out of that how that's going to impact the Fed's decision next week," he said of investors.

Friday's session began with unease over the Bank of England's decision to grant emergency funding to lender Northern Rock PLC, which was facing a possible liquidity crisis. The need for the bailout unearthed fresh concerns about the fallout from tightness in the credit markets.

The Dow Jones industrial average rose 17.64, or 0.13 percent, to 13,442.52, giving the blue chip index an advance of 2.5 percent for the week -- its best showing since April.

Broader stock indicators likewise showed modest gains Friday but managed their biggest weekly gains since mid-August. The Standard & Poor's 500 index rose 0.30, or 0.02 percent, to 1,484.25, and the Nasdaq composite index edged up 1.12, or 0.04 percent, to 2,602.18.

For the week, the S&P rose 2.2 percent, while the Nasdaq added 1.4 percent.

Government bond prices finished almost unchanged Friday. The yield on the benchmark 10-year Treasury note, which moves opposite its price, fell to 4.46 percent from 4.49 percent late Thursday.

Stocks took a hit early Friday after the Commerce Department reported that retail sales fell 0.4 percent in August excluding vehicle sales. Wall Street had been looking for a gain excluding autos. Over all, including autos, retail sales increased 0.3 percent last month.

Investors have been on edge over whether tightness in the credit market, a housing slump and volatility on Wall Street have dented consumer spending, which accounts for more than two-thirds of economic activity.

In another report that perhaps stirred unease about the economy, industrial production in August edged up by just 0.2 percent, the weakest advance in three months. The figure reflects a 0.3 percent decline in output from U.S. factories.

Wall Street seemed to wrestle with how the readings might affect the Fed's stance on interest rates. The central bank has left the benchmark fed funds rate unchanged at 5.25 percent for more than year after a string of increases and hasn't cut rates since 2003. Many on Wall Street expect a cut and are debating whether it will be a quarter percentage point or a half percentage point.

While a cut would make some borrowing less expensive, not all costs would come down. Some adjustable rate mortgages, a chunk of which are due to reset from low initial rates this fall, are tied to benchmarks other than the fed funds rate, such as the London Interbank Offered Rate, which last week hit multiyear highs.

"Everyone expects the Fed to cut. I guess one of our concerns is the feeling the market has that either the Fed or the government can legislate prosperity," said Denis Amato, chief investment officer at Ancora Advisors. "The Fed can sometimes dampen volatility but they can't create prosperity by pumping money into the system. At some point they have to let some of these excesses play out," he said, referring to trouble in the housing market and tighter access to credit.

Northern Rock's appeal to the Bank of England touched off concerns about the viral nature of problems in the U.S. mortgage market and how long subprime concerns might persist. Britain's FTSE 100 came off its lows but still finished down 1.17 percent.

Amato said the Fed must balance concerns about cutting rates to ease some of Wall Street's unease about credit with a need to keep inflation in check and the dollar from continuing to slide.

"Our concern is that the Fed is sort of in a box because if they cut too fast they run the risk of weakening the dollar. If we see foreign investors figure the dollar is declining they might pull their money, in which case the rates go up, not down," said Amato.

If rates decline, investors could take money out of Treasurys and seek higher-yielding assets elsewhere.

The focus on the Fed and other economic issues has led investors to appear little concerned this week by record oil prices. Light, sweet crude fell 99 cents Friday to settle at $79.10 on the New York Mercantile Exchange. Oil closed above $80 per barrel for the first time Thursday.

Gold prices settled moderately lower, while the dollar traded mixed against other major currencies.

Advancing issues outpaced decliners by about 9 to 7 on the New York Stock Exchange, where volume came to a light 1.2 billion shares compared with 1.27 billion traded Thursday.

The Russell 2000 index of smaller companies rose 3.14, or 0.40 percent, to 783.49.

In markets abroad, Germany's DAX index fell 0.51 percent and France's CAC-40 lost 0.49 percent. In Asia, Japan's Nikkei stock average closed up 1.94 percent, while Hong Kong's Hang Seng Index gained 1.47 percent.

New York Stock Exchange: http://www.nyse.com

Nasdaq Stock Market: http://www.nasdaq.com