MarketWatch.com - Pre-Market Indications

Wednesday, June 30, 2010

Struggling and Faltering to Manage Economic Recovery

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Last week the Dow fell 2.9%; S&P 3.6%; the Russell 2000 3.3% and the Nasdaq 100 fell 3.9%. These numbers should make for a lower opening on Monday. Banks fell 1.7%; broker/dealers 2.2%; cyclicals 3.5%; transports 4.3%; consumers 4.1%; utilities 4.3%; high tech 4.6%; semis 5.2%; Internets 4.2% and biotechs 1.7%. Gold was unchanged; the HUI fell 0.2% and the USDX fell 0.4% to 85.32.

Two-year T-bills fell 8 bps to 0.61%; the 10-year notes fell 11 bps 3.11% and the 10-year German bund fell 12 bps to 2.61%.

The Freddie Mac fixed rate 30-year mortgage fell 6 bps to 4.69%, the lowest rate since 1971. The 15’s fell 7 bps to 4.13%. The one-year ARMs fell 5 bps to 3.77% and the 30-year jumbos fell 6 bps to 5.52%.

Fed credit rose $6.3 billion, up $108 billion YTD, or 10.1% and 16.6% YOY. Fed foreign holdings of Treasuries and Agency debt rose $10.1 billion to a new record of $3.090 trillion . Custody holdings for foreign central banks increased $135 billion YTD, or 9.5% annualized and YOY $326 billion, or 11.8%.

M2, narrow, money supply fell $37.5 billion to $8.564 trillion. It increased $52 billion YTD and YOY 1.4%.

Total money market fund assets rose $12 billion to $2.818 trillion. YTD they have fallen $476 billion, a one-year decline of $891 billion, or 24%.

The Fed Chairman Ben Bernanke tells us the American recovery is struggling because of European austerity. Does he really expect us to believe that? There is no question austerity in Europe will lead to a deflationary depression. Unemployment will rise quickly, which means major cuts in government spending and lessened revenues. Beside the public those affected the most will be towns, cities and states, many of which are on the edge of insolvency surprisingly even in Germany. The PIIGS unbelievably say their instability and debt is the result of the deflationary economic policies of the richer euro zone members. Germans and others are saving, agreeing to low salaries, producing more and not increasing debt. On the other hand the PIIGS and others were headed in the other direction. This is why the euro is doomed. After destroying their economies with one interest rate fits all, they are quick to blame others. Then again the bankers should never made the loans they did either. The result is deflationary depression, which is just getting underway. It is proper for Europe to use austerity, but it is a big mistake to raise taxes. That leaves little for the populace to spend to keep the economy going.

The US is determined to take the opposite tack. No austerity and full steam ahead. This in spite of the fact that the economy is faltering, especially in real estate, both residential and commercial. It is so bad that they have obscure government agencies buying mortgages. These new buyers plus Fannie, Fr eddie, Ginnie and FHA have been buying 95% of mortgages. Without massive stimulus and or Fed monetary expansion we will definitely see negative GDP growth in the last quarter of 2010. The indicators are in place and the tell tail signs of retrenchment abound. Wall Street is about to give up the ghost and see a test of the March 2009 lows. We are sure there will be rallies as the Fed unleashes trillions more in money and credit that as well will produce much higher inflation. This could produce $5,000 or more gold and a 5,000-point Dow.

As you are now well aware Fannie and Freddie are going to punish people who have stopped paying their mortgages, who can pay them, and who are paying other bills instead. This leaves lenders with foreclosures and much more inventory than they ever imagined. This additional problem will bring on the double dip that
Wall Street and Washington so fear. As a result of this and other failures we are about to experience the worst economic collapse sine 1348. The stock market is topping out readying itself for its most disastrous fall in history. The fall will be followed by years of depression, all of which has been deliberately created to bring the world economically and financially to its knees in an attempt to bring about world government by Illuminists. Some market analysts understand where the market is headed, but most who do understand, write and talk about the mundane observable trappings and not what the situation is really all about. We have several analysts talking about a market collapse. They do not talk about the real forces behind our misfortune. We recently watched an interview of a man who wrote about the Bush family. His only admission was that they were players in the game controlled by other forces, which he refused to mention. He wouldn’t say what they were up to and who they were. This shows you how terrified writers are who are confronted by the power of the Illuminist s.

There are always these lone voices in the wilderness, which at best â€" some 15% of the populace â€" listens too. You had better listen this time because it could well cost you not only your assets, but your life, especially when another war is being prepared for you to engage in. Nothing is really as it seems to be and there are no coincidences. You are about to enter a world of chaos from which few will survive unscathed. A world of no banks, no public facilities, no food and rampaging gangs of desperate people. Unemployment of 50% and little law and order. Violence will be rife. This is not a pretty picture, but we have spared you the details. The world had better wake up fast so they’ll be prepared to deal with what is to come. If you were not aware of it the dark side really exists. We also want to remind you that for more than 20 years we have been almost totally right, and we have made some stupendous calls.

We are now ente ring the next to last phase of our journey. The wanton creation of wealth, inflation and perhaps hyperinflation, which will rob you of your assets. A stealth attack on what you have left by the people who control your government. Such monetary creation is the only way these people can keep the game going. They know it won’t last, but they proceed anyway. For awhile they’ll keep the multitudes at bay with extended unemployment and food stamps, but that will fade in time for lack of financial control, as the system begins to break down.

You already see all fiat currencies under fire, as is sovereign debt. Can it get any worse? Of course it can, and it will. Implosion is the word everyone is going to discover and understand. An event that cannot be hidden by zero interest rates and endless supplies of money and credit. That word implosion will describe what will happen as a result in the machinations of the Federal Reserve.

Now that you have seen a glimpse of your future we will move on to the deteriorating world that we now live in.

CNBC and the mainline media tells us all is well irrespective of a failing recovery, climbing unemployment, which has just recently been assisted by trillions of dollars in stimulus. The question is what comes next? More of the same, of course. There is no other avenue to pursue even though Mr. Bernanke knows such stimulus is not going to get the desired results. These players behind the scenes know history. They know what we know. They depend on 98% of the people not discovering what they and we know, and that is where this is all headed. The important people in Wall Street, banking, insurance and in transnational corporations know, but they are not about to tell you. The market doesn’t like what it sees, but it knows it cannot do much about it.

Americans are fighting back as millions have not made mortgage payments for a year and are living for free in their homes. As an antidote Washington is now considering charging them rent, something they should have done four years ago. If you add in the disaster that is commercial real estate, personal and corporate debt, and sovereign debt, you have an insolvable problem that can only end in great grief. The choice to expose Greece’s weaknesses from behind the scenes looks to be a fatal mistake. The elitists never envisioned the firestorm that the exposure has led too. Greece is about to explode, not because of the reduced socialist benefits, but because the people are finally realizing that they and others have been taken for a ride by the bankers and others behind the scenes and from within their own government. Discovery by the Greek people and others is not something the illuminists expected. They now are forced again to expedite their programs - when they have to do that they make mistakes, often-big mistakes, which gives us pursuers an advantage we c ould never hoped to have had. After their latest mistakes the bankers are scrambling to preserve the current system. It is not to be. There are far to many who now know what they are up too.

Europe is still struggling in an attempt to bailout the PIIGS, which if they take the loans they will live in financial bondage and depression for the next 30 years. We told the Greek people in a TV documentary last week to default, leave the euro, create the new drachma, lower taxes, make sure the rich pay their taxes, cut expenses in government by 30% and do not under any circumstances sell off any Greet assets, such as islands and utilities to foreign Illuminists for 20 cents on the dollar. The bankers created the money they lent out of thin air, so why should they be repaid. In addition they knew the risks and should have never made the loans in the fist place. The Illuminist-Bilderberg PM should be impeached for trying to destroy the country.

There is talk of a new northern euro to replace the current unit. Such a unit would need gold backing. Germany asked for the return of their gold from the US about a year ago. As far as we know they haven’t received it. The question then is, how do they back such a currency? France has sufficient gold, but they are in serious economic and financial trouble. We don’t think a northern euro is viable. Denmark is mentioned as a partner, a country that twice has rejected the euro. They also have serious problems. If the 5 PIIGS default how much bad debt will these nations be stuck with - $1 trillion or $2 trillion? That certainly is a salient factor in any new currency decision, and it is very possible default could become reality. Deficit reduction and austerity are not solutions without tax cuts. That is unless you want years and years of recession/depression. The public has to have money to spend to keep economies going. That isn’t a purge, but it is as close as you a re going to get for the present.
Just headlines: "the audit board violates constitution, Supreme Court finds." As Reuters explains: "At stake in the case is how corporate America is audited and a key provision of the Sarbanes-Oxley corporate reform law adopted in 2002 in response to the Enron and WorldCom accounting scandals. If the Supreme Court strikes down the board, the ruling will put pressure on Congress to revisit the law, opening it up for potential changes in the reporting duties of companies." Then again, who even pretends we have remotely credible filings anymore? With FASB indefinitely locked in the basement and companies allowed to report their numbers on a mark-to-unicorn basis, it is all lies anyway.

Legislation to overhaul financial regulation will help curb risk-taking and boost capital buffers. What it won’t do is fundamentally reshape Wall Street’s biggest banks or prevent another crisis, analysts said.  A deal reached by mem bers of a House and Senate conference early this morning diluted provisions from the tougher Senate bill, limiting rather than prohibiting the ability of federally insured banks to trade derivatives and invest in hedge funds or private equity funds.  Banks ‘dodged a bullet,’ said Raj Date, executive director for Cambridge Winter Inc.’s center for financial institutions policy. The overhaul, which still requires approval from the full Congress, won’t shrink banks deemed ‘too big to fail,’ leaving largely intact a U.S. financial industry dominated by six companies with a combined $9.4 trillion of assets. The changes also do little to solve the danger posed by leveraged companies reliant on fickle markets for funding, which can evaporate in a panic like the one that spread in late 2008.

Fannie Mae will temporarily deny new loans to borrowers who deliberately default and walk away from their homes.  Borrowers who have the means to make mortgage payments and don’t work with lenders to restructure loans will be banned from obtaining new mortgages backed by Fannie Mae for seven years from the date of foreclosure, the company said. Fannie Mae, along Freddie Mac, own or guarantee more than half of the $10.7 trillion U.S. mortgage market.

Californians don’t see much evidence that the worst economic contraction since the Great Depression is coming to an end.  Unemployment was 12.4% in May. Lawmakers gridlocked over how to close a $19 billion budget gap are weighing the termination of the main welfare program for 1.3 million poor families or borrowing more than $9 billion in the bond market. Far from rebounding, the Golden State, with a $1.8 trillion economy that’s larger than Russia’s, is sinking deeper into its financial funk. And it’s not alone.  Even as the U.S. appears to be on the mend finances in Arizona, Illinois, New Jersey, New York and other states show few signs of improvement. F orty-six states face budget shortfalls that add up to $112 billion for the fiscal year ending next June, according to the Center on Budget and Policy Priorities. ‘States are going to have to cut back spending and raise taxes the same way Greece and Spain are,’ says Dean Baker, co- director of the Center for Economic and Policy Research.

May personal income rose 0.4%, the PCE price deflator rose 1.9% and April personal income was revised to 0.5% from 0.4%. Spending rose 0.2%, real disposable income rose 0.5% and savings rose to 4%.

The Chicago Fed Activity Index was 0.21, down from April’s 0.25 and way down from 0.32 expert estimates.

The June Dollar Fed Manufacturing Index was minus 4%, down from May’s 2.9% and a 3.2% expert estimate.

The Friday Night FDIC Follies made a repeat when three more banks closed to total 86 YTD. We could get close to 100 by the end of the year.

Fannie Mae and Freddie Mac, the housing-finance companies supported by U.S. taxpayers, should take advantage of demand for government-backed mortgage debt and sell their holdings, according to Pacific Investment Management Co.

“Since the government’s going to want to unwind them at some point anyway, why not do it at the best levels ever?” Scott Simon, the mortgage-bond head at Newport Beach, California-based Pimco, manager of the world’s biggest fixed- income fund, said in a telephone interview. “It’s good for taxpayers, good for stakeholders, good for everybody.”

The average price of the $5.2 trillion of so-called agency mortgage bonds guaranteed by Fannie Mae and Freddie Mac or federal agency Ginnie Mae rose last week to an all-time high of 106.3 cents on the dollar, according to Bank of America Merrill Lynch’s Mortgage Master Index. The Federal Reserve said today it would replace its co ntracts to take delivery of certain bonds with other debt, reflecting a lack of supply in the market.

Legislation to overhaul financial regulation will help curb risk-taking and boost capital buffers. What it won’t do is fundamentally reshape Wall Street’s biggest banks or prevent another crisis, analysts said.

A deal reached by members of a House and Senate conference early this morning diluted provisions from the tougher Senate bill, limiting rather than prohibiting the ability of federally insured banks to trade derivatives and invest in hedge funds or private equity funds.

Banks “dodged a bullet,” said Raj Date, executive director for Cambridge Winter Inc.’s center for financial institutions policy and a former Deutsche Bank AG executive. “This has to be a net positive.”

Hashed out almost two years after the worst financial crisis since the Great De pression, the legislation shepherded by Senate Banking Committee Chairman Christopher Dodd and House Financial Services Chairman Barney Frank places limits on potentially risky activities such as proprietary trading or over-the-counter derivatives and gives regulators new powers to seize and wind down large, complex institutions if needed.

For the last several months, Princeton professor Paul Krugman has become increasingly agitated about what he feels is a disastrous mistake in the making -- a sudden global obsession with "austerity" that will lead to spending cuts in many nations in Europe and, possibly, the United States.

Krugman believes that this is exactly the same mistake we made in 1937, when the country was beginning to emerge from the Great Depression.  A sudden focus on austerity in 1937, it is widely believed, halted four years of strong growth and plunged the country back into recession, sending the unemployment rate soaring again.

In Krugman's view, the world should keep spending now, to offset the pain of the recession and high unemployment--and then start cutting back as soon as the economy is robustly healthy again.

Those concerned about the world's massive debt and deficits, however, have seized control of the public debate, and are scaring the world's governments into cutting back.

Californians don’t see much evidence that the worst economic contraction since the Great Depression is coming to an end.

Unemployment was 12.4 percent in May, 2.7 percentage points higher than the national rate. Lawmakers gridlocked over how to close a $19 billion budget gap are weighing the termination of the main welfare program for 1.3 million poor families or borrowing more than $9 billion in the bond market. California, tied with Illinois for the lowest credit rating of any stat e, is diverting a rising portion of tax revenue to service debt, Bloomberg Markets magazine reports in its August issue.

Far from rebounding, the Golden State, with a $1.8 trillion economy that’s larger than Russia’s, is sinking deeper into its financial funk. And it’s not alone.

Even as the U.S. appears to be on the mend gross domestic product has climbed three straight quarters -- finances in Arizona, Illinois, New Jersey, New York and other states show few signs of improvement. Forty-six states face budget shortfalls that add up to $112 billion for the fiscal year ending next June, according to the Center on Budget and Policy Priorities, a Washington research institution. State spending is 12 percent of U.S. GDP.

Louisiana Economic Development Secretary Stephen Moret sent a letter to SBA Administrator Karen Mills complaining that the SBA is using its normal loan approval processes even though the circumstances are extraordinary, and that the agency is turning down far too many Louisiana businesses because of "credit concerns" or because they can't prove they'll be able to repay quickly.

Moret wrote that hundreds of the 21,000 claims filed with BP for losses due to the oil spill come from struggling small businesses, and most of them need the SBA loans to carry them through until they receive payment from BP.

But, he noted in the letter, SBA has informed him that 70 percent of those applicants have been denied.

Moret wrote that his office has been trying to work with SBA officials and was told that the federal agency could change its usual policy to soften underwriting guidelines and to consider the promise of future BP payments "in lieu of SBA's normal process for assessing credit history and repayment ability."

But that apparently hasn't happened. Moret noted that a si milar process was used by SBA to help businesses after the Exxon Valdez tanker spill in Alaska in 1989.

SBA Assistant Secretary Jonathan Swain told The Times-Picayune that his agency typically approves more disaster loans as it goes along, and with a 30 percent approval rate now, SBA is already approaching its five-year average of 35 percent.


Uninspiring consumer income and spending data have pushed US stock futures ever so slightly into the red, as uneasiness over the US economic recovery lingers in the minds of investors. With less than 30 minutes before opening bell on Wall Street, all leading indices are nearly flat with the DOW off 0.06%.


Market sentiment remains fragile despite the weekend pledge by G20 leaders to reduce national deficits and debt. While waning off stimulus spending is looked upon highly by the investors, the fragility of the economic recovery is in the front of everyone’s mind with fresh austerity measures possible interfering with positive growth prospects. And as lackluster data continues to pour in from the US, investors are now questions the durability and pace of the recovery in the world’s largest economy with whispers of a double dip recession being heard more and more often.

Eight individuals were arrested Sunday for allegedly carrying out long-term, "deep-cover" assignments in the United States on behalf of the Russia, the Justice Department announced today. Two additional defendants were also arrested Sunday for allegedly participating in the same Russian intelligence program within the United States. Some of the Russians adopted Irish names in their spy work, including using the names Murphy and Foley.

Information they were seeking was pretty broad based but it included at least one report about gold. Moscow rela yed back to the spies that the gold report was "very valuable" and reported that it was passed on to Russia's finance minister.
Also, according to the complaint, one spy, "Cynthia Murphy," was developing a relationship with a prominent New York financier. The financier is apparently a big political money raiser and has a close friend in the Cabinet.

The most interesting question is, of course, what kind of information could the spies have turned over about gold that Moscow deemed as "very valuable"? And let the guessing game begin as to who the "prominent New York financier" is.

It should also be noted that this decade long investigation was publicly revealed just days after Obama and Russian President Medvedev shared hamburgers together.



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Indications: U.S. stock futures pare gains after ADP report

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By Steve Goldstein and Kate Gibson, MarketWatch

NEW YORK (MarketWatch) -- U.S. stock futures wavered Wednesday after disappointing private payrolls data offset a European Central Bank auction that signalled credit is loosening.

Stock index futures were mildly up after a brief detour into negative territory after the release of the ADP employment report, which found the addition of 13,000 jobs in the private sector in June. Economists were looking for about four times the figure, which comes ahead of Friday's monthly jobs report from the U.S. government.

"The lower-than-anticipated ADP reading introduces modest downside risk to consensus estimate that the Labor Department will report on Friday that private industry employment rose by 110,000," Alan Levenson, chief economist at T. Rowe Price Associates, wrote in a note. T. Rowe Price's estimate is a rise of 90,000, Levenson added.

Up about 40 points before the ADP report, futures for the Dow Jones Industrial Average were lately up 10 points at 9,807.00. S&P 500 futures retained a 1-point gain at 1,036.30, while Nasdaq 100 futures were also up 1 point at 1,764.50.

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Crude-oil futures inched up 9 cents to $96.03 a barrel on the New York Mercantile Exchange. Gold fell $4.20 to $1,238.20 an ounce.

U.S. stocks fell sharply to finish at their lowest level of the year Tuesday after a drop in U.S. consumer confidence and in leading indicators in China dimmed hopes of a global economic recovery. The Dow Jones Industrial Average fell 268 points to fall considerably below the 10,000 mark, and the S&P 500 ended at its worst levels since late October. Yields on two-year Treasury notes hit an all-time low.

One of the worries that contributed to Tuesday's slide, the health of Europe banks, was partly alleviated Wednesday after the European Central Bank said it issued 131 billion euros of three-month loans. Given that a 442 billion euro one-year lending program is due to expire Thursday, the allocation was interpreted by the market that the Continent's lenders have alternatives for financing besides the central bank. See full story.

The euro /quotes/comstock/21o!x:seurusd (CUR_EURUSD 1.2260, +0.0076, +0.6238%) rallied after the results of the ECB tender, as did the shares of Europe banks.

A Chicago-area manufacturing gauge will come out shortly after the open.

Bonds declined, with yields on the two-year notes edging up 2 basis points to 0.63% and yields on 10-years also up 2 basis points to 2.97%.

The worries over China continued, however. Chinese shares fell for the sixth straight session to end at their worst level in nearly 15 months, with the Shanghai Composite retreating 1.2%.

Two cancer-related deals were announced, with Celgene /quotes/comstock/15*!celg/quotes/nls/celg (CELG 50.50, -2.74, -5.15%) paying $2.9 billion in cash and stock for Abraxis /quotes/comstock/15*!abii/quotes/nls/abii (ABII 73.42, +12.11, +19.75%) , and Sanofi-Aventis /quotes/comstock/13*!sny/quotes/nls/sny (SNY 30.09, +0.34, +1.14%) paying up to $560 million for privately held TargeGen.

Also in the M&A space, Boeing /quotes/comstock/13*!ba/quotes/nls/ba (BA 62.96, -0.08, -0.13%) said it's going to buy combat-systems provider Argon ST /quotes/comstock/15*!stst/quotes/nls/stst (STST 34.21, +9.78, +40.03%) for $34.50 a share, or about $775 million.

Steve Goldstein is MarketWatch's London bureau chief. Kate Gibson is a reporter for MarketWatch, based in New York.


NYSE Arca Morning Update - 08:30:00 ET

NYSE Arca Morning Update for Wednesday, Jun 30, 2010 :

STOCKS TRADING ON NYSE Arca AT A PRICE 15% OR MORE AWAY FROM
THE PREVIOUS TRADE DAY'S CONSOLIDATED CLOSE PRICE (AS OF 08:30:00 ET)

Stock Tuesday's Close Current Price Pct Change Current NYSE ARCA Vol
STST $24.48 $34.24 39.9% 1,657,894
ABII $61.32 $73.50 19.9% 7,800


10 MOST ACTIVE STOCKS ON NYSE ARCA AS OF 08:30:00 ET

BASED ON DOLLARS TRADED: | BASED ON SHARES TRADED:
Stock $ Volume Price PctChg | Stock Share Vol Price PctChg
SPY $215052910 $104.14 ( 0.1%) | C 2,594,984 $3.80 2.0%
STST $56,720,999 $34.24 39.9% | SPY 2,058,626 $104.14 ( 0.1%)
BP $35,072,438 $28.90 4.3% | STST 1,657,894 $34.24 39.9%
IWM $28,788,979 $61.89 0.1% | BP 1,201,360 $28.90 4.3%
QQQQ $24,634,248 $43.43 0.1% | QQQQ 566,210 $43.43 0.1%
AAPL $22,266,973 $257.84 0.6% | IWM 465,014 $61.89 0.1%
GLD $16,512,753 $121.05 ( 0.2%) | F 310,591 $9.99 1.1%
C $9,868,083 $3.80 2.0% | FAS 197,027 $19.98 0.6%
SDS $6,961,428 $36.94 0.2% | SDS 189,428 $36.94 0.2%
DIA $5,781,420 $98.73 ( 0.0%) | BAC 165,409 $14.65 0.5%


Price changes may be affected by symbol splits and dividends.

Consolidated close price is the last print (excluding prints with trade
conditions) prior to 4PM ET.

This information is also updated on our web page every morning at 8:35ET:
http://www.tradearca.com/data/volume/daily_update.asp

This material is for informational purposes only.
NYSE Euronext and its affiliates ("NYSE Arca") are not soliciting any action based upon it.
This material is not to be construed as an offer to buy or sell any security in any jurisdiction where such an offer or solicitation would be illegal.
Any opinions expressed in this material are NYSE Arca opinions only.
NYSE Arca undertakes no obligation to update any of the information contained in this material in light of new information or future events.
THIS MATERIAL IS PROVIDED BY NYSE ARCA "AS IS" AND WITHOUT WARRANTIES EXPRESS OR IMPLIED.
NYSE ARCA DISCLAIMS ALL WARRANTIES INCLUDING THE IMPLIED WARRANTIES OF MERCHANTIBILITY, TITLE, AND FITNESS FOR A PARTICULAR PURPOSE AS TO THIS MATERIAL.
IN NO EVENT SHALL NYSE ARCA BE LIABLE FOR DIRECT, INDIRECT, INCIDENTAL, PUNITIVE, OR CONSEQUENTIAL DAMAGES OF ANY KIND WHATSOEVER (INCLUDING BUT NOT LIMITED TO, LOST PROFITS, TRADING LOSSES AND DAMAGES THAT MAY RESULT FROM THE USE
OF THIS MATERIAL, ANY DELAY OR INTERRUPTION OF SERVICE OR OMISSIONS OR INACCURACIES IN THE MATERIAL) WITH RESPECT TO THIS MATERIAL.

Copyright [2010] by NYSE Euronext. All rights reserved. Reproduction and redistribution prohibited without prior express consent.

Tuesday, June 29, 2010

NYSE Arca Morning Update - 08:30:00 ET

NYSE Arca Morning Update for Tuesday, Jun 29, 2010 :

STOCKS TRADING ON NYSE Arca AT A PRICE 15% OR MORE AWAY FROM
THE PREVIOUS TRADE DAY'S CONSOLIDATED CLOSE PRICE (AS OF 08:30:00 ET)

Stock Monday's Close Current Price Pct Change Current NYSE ARCA Vol
No symbols with at least a 15% price change today

10 MOST ACTIVE STOCKS ON NYSE ARCA AS OF 08:30:00 ET

BASED ON DOLLARS TRADED: | BASED ON SHARES TRADED:
Stock $ Volume Price PctChg | Stock Share Vol Price PctChg
SPY $122238113 $106.21 ( 1.2%) | SPY 1,150,826 $106.21 ( 1.2%)
BP $21,728,014 $27.06 0.0% | BP 799,882 $27.06 0.0%
AAPL $17,513,020 $264.86 ( 1.3%) | C 598,752 $3.93 ( 1.7%)
GLD $12,025,063 $120.52 ( 0.5%) | JAV 255,875 $2.18 54.6%
IWM $10,504,146 $63.30 ( 1.5%) | BAC 254,535 $15.00 ( 1.5%)
BRK.B $8,246,196 $80.63 ( 0.5%) | SIRI 222,152 $1.02 ( 2.3%)
QQQQ $7,313,279 $44.53 ( 1.3%) | IWM 166,062 $63.30 ( 1.5%)
EWZ $4,198,587 $64.48 ( 2.5%) | QQQQ 164,358 $44.53 ( 1.3%)
BIDU $3,975,619 $72.10 ( 3.1%) | TZA 145,154 $7.43 4.6%
SDS $3,925,446 $35.60 2.4% | F 135,740 $10.21 ( 2.1%)


Price changes may be affected by symbol splits and dividends.

Consolidated close price is the last print (excluding prints with trade
conditions) prior to 4PM ET.

This information is also updated on our web page every morning at 8:35ET:
http://www.tradearca.com/data/volume/daily_update.asp

This material is for informational purposes only.
NYSE Euronext and its affiliates ("NYSE Arca") are not soliciting any action based upon it.
This material is not to be construed as an offer to buy or sell any security in any jurisdiction where such an offer or solicitation would be illegal.
Any opinions expressed in this material are NYSE Arca opinions only.
NYSE Arca undertakes no obligation to update any of the information contained in this material in light of new information or future events.
THIS MATERIAL IS PROVIDED BY NYSE ARCA "AS IS" AND WITHOUT WARRANTIES EXPRESS OR IMPLIED.
NYSE ARCA DISCLAIMS ALL WARRANTIES INCLUDING THE IMPLIED WARRANTIES OF MERCHANTIBILITY, TITLE, AND FITNESS FOR A PARTICULAR PURPOSE AS TO THIS MATERIAL.
IN NO EVENT SHALL NYSE ARCA BE LIABLE FOR DIRECT, INDIRECT, INCIDENTAL, PUNITIVE, OR CONSEQUENTIAL DAMAGES OF ANY KIND WHATSOEVER (INCLUDING BUT NOT LIMITED TO, LOST PROFITS, TRADING LOSSES AND DAMAGES THAT MAY RESULT FROM THE USE
OF THIS MATERIAL, ANY DELAY OR INTERRUPTION OF SERVICE OR OMISSIONS OR INACCURACIES IN THE MATERIAL) WITH RESPECT TO THIS MATERIAL.

Copyright [2010] by NYSE Euronext. All rights reserved. Reproduction and redistribution prohibited without prior express consent.

Indications: U.S. stock futures stumble on China jitters

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By Steve Goldstein, MarketWatch

LONDON (MarketWatch) -- U.S. stock futures slumped Tuesday, with worries over Chinese and global economic growth in the spotlight ahead of the release of key indicators later in the week.

S&P 500 futures fell 13.5 points to 1,057.40 and Nasdaq 100 futures dropped 25.75 points to 1,810.20. Futures on the Dow Jones Industrial Average lost 114 points.

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79118

The Dow Jones Industrial Average, the S&P 500 and Nasdaq Composite ended with mild losses Monday, after leaders of the world's 20 top economies pledged to rein in spending to counter mounting debt burdens. The Bank for International Settlements also made the case for austerity.

Worries on Tuesday were focused on China, which has barely any outstanding debt, as the Conference Board sharply revised lower its April leading economic indicator for the country. The Shanghai Composite lost 4.3%, with the move by the Agricultural Bank of China to cut the price range for the local portion of its estimated $23 billion initial public offering also weighing on Chinese equities.

The Conference Board's U.S. confidence gauge for June is due for release around 10 a.m. Eastern, with markets expecting a slight decline.

"We expect consumer confidence to remain at a higher level than in the first quarter and increase further in the coming months as momentum in the labor market recovery builds," said economists from Barclays Capital.

The S&P/Case-Shiller April home price index is due for release at 9 a.m.

Traders may also be positioning ahead of Thursday's expiration of a 442 billion euro one-year tender from the European Central Bank and the U.S. nonfarm payrolls report on Friday.

Unlike AgBank, Tesla Motors increased its IPO price, pricing its offering at $17 a share.

Micron Technology /quotes/comstock/15*!mu/quotes/nls/mu (MU 10.02, +0.56, +5.92%) lost 6% in early premarket trade. The chipmaker late Monday reported stronger-than-forecast earnings and sales but also projected flat shipments in a key segment.

Emerson /quotes/comstock/13*!emr/quotes/nls/emr (EMR 44.85, -0.04, -0.09%) raised its all-cash offer for Britain's Chloride to $1.5 billion, trumping an offer made by ABB /quotes/comstock/13*!abb/quotes/nls/abb (ABB 18.25, -0.03, -0.16%) .

Overseas, foreign stock markets were also weaker after the China tumble. The Nikkei 225 lost 1.3% in Tokyo and the FTSE 100 retreated 2.1% in London.

Oil futures skidded $1.53 a barrel, and gold futures dipped $2 an ounce.

Bonds rose, with yields on 10-year Treasury bonds falling 5 basis points to 2.97%. The euro sank below the $1.22 level.

Steve Goldstein is MarketWatch's London bureau chief.


Monday, June 28, 2010

Indications: Stock futures turn lower amid G-20 pledge, data

Stock Assault 2.0 - Artificial Intelligence Stock Market Software Alert Email Print

By Polya Lesova, MarketWatch

FRANKFURT (MarketWatch) -- U.S. stock futures traded marginally lower on Monday, giving up earlier gains, as positive economic data and a pledge to cut government deficits were not enough to sustain market sentiment.

Futures on the Dow Jones Industrial Average fell 16 points to 10,088. S&P 500 futures dropped 1.10 to 1,073.60 and Nasdaq 100 futures fell 3.25 points to 1,836.

Most major U.S. stock indexes finished slightly higher on Friday.

Earlier in the session, stock futures had gained, as leaders of the world's advanced economies pledged over the weekend to halve their government deficits by 2013.

Meeting in Canada, leaders of the Group of 20 major economies also vowed to stabilize or reduce the ratios of government debt to gross domestic product by 2016.

The G-20 warned that synchronized fiscal adjustment across several major economies could adversely impact the recovery. As a result, fiscal consolidation plans should be differentiated to national circumstances and focused on growth-boosting measures. Read more on the G-20 summit.

Lars Christensen, chief analyst at Danske Bank, downplayed the importance of the G-20 commitments.

"I don't think the G-20 has changed a lot in terms of market sentiment," Christensen said. "The world picture is still one of caution. We saw a little bit of stabilization on Friday and that carries through today as there is a lack of much news."

He said that in the low-liquidity summer markets, the World Cup in South Africa appears to be dominating the news more than any other issues.

For markets, however, "the European sovereign debt crisis is still the story," Christensen said. "For now, Europe is the weak link in the global economy."

In the U.S., the Commerce Department said Monday that the savings rate for American households rose to the highest level in eight months in May. Personal incomes also increased.

Later in the day, Kevin Warsh, a member of the board of governors of the Federal Reserve, will speak on financial-market and economic developments in Atlanta.

In Europe, most equity markets posted broad-based gains, with the Stoxx Europe 600 index /quotes/comstock/22c!sxxp (ST:SXXP 249.68, +1.35, +0.54%) up 0.6%.

Shares of U.K. energy giant BP Plc /quotes/comstock/13*!bp/quotes/nls/bp (BP 27.51, +0.49, +1.82%) /quotes/comstock/23s!a:bp. (UK:BP. 304.65, +0.05, +0.02%) gained 0.9% in London trading, reversing some of the steep losses posted in the previous session.

BP said Monday that the costs of cleaning up the oil spill in the Gulf of Mexico have soared to $2.65 billion, an increase of $300 million from its estimate last Friday.

The firm is currently drilling a relief well in an effort to stop the leak after numerous other strategies failed. Read more on BP.

In the commodity markets, August oil futures dropped 71 cents to $78.15 a barrel in electronic trading on Globex. Gold futures edged up $1.50 to $1,257.70 an ounce.

The dollar was little changed against its major rivals, with the dollar index /quotes/comstock/11j!i:dxy0 (DXY 85.48, +0.17, +0.20%) up 0.2% to 85.456.

Polya Lesova is a reporter for MarketWatch, based in Frankfurt.


NYSE Arca Morning Update - 08:30:00 ET

NYSE Arca Morning Update for Monday, Jun 28, 2010 :

STOCKS TRADING ON NYSE Arca AT A PRICE 15% OR MORE AWAY FROM
THE PREVIOUS TRADE DAY'S CONSOLIDATED CLOSE PRICE (AS OF 08:30:00 ET)

Stock Friday's Close Current Price Pct Change Current NYSE ARCA Vol
No symbols with at least a 15% price change today

10 MOST ACTIVE STOCKS ON NYSE ARCA AS OF 08:30:00 ET

BASED ON DOLLARS TRADED: | BASED ON SHARES TRADED:
Stock $ Volume Price PctChg | Stock Share Vol Price PctChg
SPY $96,386,803 $108.02 0.1% | C 2,883,263 $3.94 0.1%
BP $27,074,771 $27.73 2.6% | BP 963,360 $27.73 2.6%
QQQQ $23,681,380 $45.29 0.1% | SPY 890,958 $108.02 0.1%
C $11,391,175 $3.94 0.1% | QQQQ 522,238 $45.29 0.1%
AAPL $6,519,422 $266.23 0.1% | CTIC 237,328 $0.40 24.4%
IWM $6,194,516 $64.62 ( 0.0%) | BAC 165,727 $15.52 0.3%
BRK.B $3,763,599 $81.30 0.4% | DBE 113,500 $24.00 ( 1.5%)
DBE $2,687,775 $24.00 ( 1.5%) | NOK 106,478 $8.30 0.9%
BAC $2,574,048 $15.52 0.3% | IWM 95,592 $64.62 ( 0.0%)
BHP $2,519,900 $67.70 ( 0.5%) | TZA 88,785 $7.00 0.1%


Price changes may be affected by symbol splits and dividends.

Consolidated close price is the last print (excluding prints with trade
conditions) prior to 4PM ET.

This information is also updated on our web page every morning at 8:35ET:
http://www.tradearca.com/data/volume/daily_update.asp

This material is for informational purposes only.
NYSE Euronext and its affiliates ("NYSE Arca") are not soliciting any action based upon it.
This material is not to be construed as an offer to buy or sell any security in any jurisdiction where such an offer or solicitation would be illegal.
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The Secrets of Liquidity

Stock Assault 2.0 - Artificial Intelligence Stock Market Software
Result of the end of fed pumping up the economy,Markets torn by zero interest rates, The finances of many states now dire, greater risks for recession and depression, the folly of bond yields, Baltic Dry Index drying up, more COLA for the folks, contracting out an entire city, Hardest Hit fund, Goldman Sachs was not alone, destroying markets

Many investors wonder how are markets able to propel themselves back and forth as they do. How do corrections turn into rallies? The secret is liquidity and the question is where does it come from?

As you know the Fed up until 14 months ago increased what once was called M3 by 15% annually. Foreign major central banks did the same cutting back a couple of months sooner than the Fed. The Fed increased M3 for 5-1/2 years and the other central banks for about four years. Starting four years ago all currencies started falling versus gold. The US dollar started about ten years ago.

Contrary to what government officially has to say about inflation for the past 18 months the sources of liquidity, fiscal money creation by the debt route by the current administration has been $2.2 trillion. The Fed has added $1.2 trillion over that period, but we do not believe their figures for a moment. We believe the number i s closer to $1.8 trillion. That is only for the purchase of MBS/CDOs from banks, Wall Street, insurance companies and other corporations. Then we have at least $500 billion in swap arrangements. Those funds were supposedly re-exchanged five months ago. Since then there has been another swap, but we cannot find out what the numbers are. Then there are zero interest rates, which force investors to seek more speculative returns. As an example, funds in money market funds have fallen about $1 trillion over the last 18 months. That is why bonds are at highs and the market can rally. Then there is the adding of liquidity by the Fed via the repo market. Finally, there has been the re-leveraging of banks, or at least the maintaining of 40 to one leverage, and the re-leveraging of corporate balance sheets, sovereign wealth funds and hedge funds, although the numbers are tame versus two years ago. There you have it. The foregoing on a net basis is larger than what existed at the begin ning of the credit crisis almost three years ago. New liquidity has been created to replace that which was lost. As a result gold and silver have appreciated in a big way over that period. We see no proclivity to end this massive onslaught. In spite of official figures real inflation is some 7% and that is why currencies keep losing value against gold, which is the only barometer to measure the real devaluation of currencies as a result of monetary and fiscal profligacy.

Markets are torn by near zero interest rates and risk aversion. A trillion have left money market funds over the past 16 months. Some have gone into bonds, junk bonds and into the market. You cannot have it both ways. Bonds cannot go higher and the market is very dangerous, especially with three quarters coming up with passable to bad results. Then there is the possibility of tax increases next year to accompany 19 new taxes in the Medical Reform package. There is also the possible passag e of Cap & Trade, which would double gas prices, illegal alien amnesty and government taxing or taking over your retirement plans. These issues are why it is so important to replace almost all the incumbents in November. Not to be treated lightly is the problems of sovereign debt. Not only for those 20 countries on the edge of insolvency, but for those who are owed the debt. There is an excellent chance 5 to 7 countries may leave the euro. The euro may then fade and the other 10 euro zone members may go back to their original currencies. It is any wonder gold is hitting new highs and silver is soon to follow. Gold is not rising to inflation and anticipated inflation, but because of unserviceable deteriorating debt worldwide. You cannot wait for the next crisis â€" you have to anticipate it. You have to be ahead of the curve and the crowd. Does anyone really believe bailouts and future bailouts and stimulus will solve anything? They haven’t up to now and they won’t in the future. They only make matters worse. What kind of insanity is it to have the Fed buy $1.2 trillion, that they admit too, of toxic MBS and 80% of Treasury issuance, with money created out of thin air? Small and medium-sized business cannot expand and hire new people. They supply 70% of all jobs. Government should be cutting taxes, not expanding them. They should be cutting costs and employees by 30% for starters.

Zero interest rates may fatten the profits of major manufacturers and transnational conglomerates, but it does little for anyone else, except Wall Street and banking. Interest rates on credit cards have risen, not fallen as banks fatten their bottom lines at the expense of the populace. That is why retail sales have fallen over the past two months and probably will continue to do so. A battle wages over M3. Some say it is negative, some say it is in double digits. We will certainly find out shortly. The housing stimulus and credit is now ove r and prices are falling. Unemployment is rising and risk taking is falling. Now that the dollar has had a large appreciation there is ample reason to believe it could well have a sharp correction. Those in the carry trades know that sovereign debt has a much greater degree of risk than in the past. That means more caution and less liquidity.

On the state level the financial situation is dire. Illinois sold $300 billion in Build America Bonds at a yield 40% higher than Treasuries. Worldwide credit is being bought judiciously. Greece and the other PIIGS have intractable problems, but so do the lenders who bought the toxic waste. As a result the cost of credit default swaps have risen substantially. States and countries in the euro zone cannot print money as the Fed and the ECB can. The market is nervous and it should be. We see major unavoidable trouble ahead, so watch out below.

As we predicted the risk of a double-dip recession /dep ression have risen substantially over the past two months. Retail, housing and employment are fading and fading fast. It points out that the US economy cannot function positively without massive stimulus. Bank credit is falling as well as individuals pay down debt. In addition exports are starting to fall in the face of a strong dollar, which gives the euro zone participants a 15% price advantage. This is a big price to pay to enrich Wall Street and take down the euro as the dollar’s competitor. We do not believe the dollar can maintain current levels, but damage will continue for another 6 to 12 months. Can you imagine the fallout with the euro at parity? Not only does Europe and the US have trouble, so does China that has to unravel bad bank debt domestically, a market fall that already is off some 25%, but worse they have to deflate a property bubble that will be very painful. De-leveraging for the US, Europe, China and Japan has really just begun and this is why a year or two from now there will be another meeting like the Smithsonian in the early 1970s, the Plaza Accord of 1985 and the Lourve Accord of 1987, where everyone will devalue, revalue, and default. An Illuminist jubilee. That could be triggered by a bond market collapse. A market that has been in a bull market for 29 years. Timing of events is very difficult. We could be off by one to five years. The point is bad â€" things are on the way, so prepare yourself.

The economy is beset with slowing retail sales, a plunging housing sector and falling credit usage. You might call this individual austerity. Consumer sentiment is consistent with recession. Job creation is negative as are loans to small and medium-sized businesses that create 70% of the jobs. The dollar’s strength is wreaking havoc for US exports, which had been improving.

Greece and Spain are in the soup prominently followed closely in the euro zone by Portugal, Ireland and It aly. China has seen a 9-month 25% fall in their stock market and they are facing a collapse in credit and in real estate.

We no longer consider the oil spill a major factor. It can be solved and turned off any time the Illuminists want to do so.

Politically, Israel has finally gone a step too far and Turkey finally realizes that the EU is never going to accept them due to religious reasons. Turkey is now in the Muslim block. That will be a problem for some of the pro-US-UK Muslim states in the Gulf in the future. Geopolitical risks abound and they are worsening along with sovereign debt problems.

Those who have been reaching for bond yields will eventually pay a very high price. The bond market is no longer a safe place to be, whether it is sovereign foreign bonds, corporates or US paper. The US still has 7% to 8% inflation that isn’t going to go away soon, and in all probability that inflation will soon worsen. T hose 10% to 20% returns cannot continue indefinitely, as the US government manipulates the US bond markets. Who would want to buy Treasuries yielding from zero to 3.2% with real inflation of 7%, when you can own gold and silver coins and shares that are appreciating? We know most of the funds entering mutual funds are in bonds. These “boomers” who are the big buyers are looking for safety and will continue to do so. As you can see not as much money will be going into the stock market. In spite of losing money on bond holdings those in their 50s and upward are staying away from new market commitments. They want safety, or at least perceived safety, not capital appreciation, but capital preservation. The market on a net basis has been even for 11 years and that includes a bear market rally and a real estate boom. Incidentally during that period the gold and silver shares have done well. AEM from $5.00 to $83.50 presently $62.70 is a perfect example. The price of gold went from $252.00 to $1,265.00. This was one of our recommendations, but then again what do we know. We are not, and never will be on CNBC, because they cannot handle the truth, and they do not want the public to know the truth. Mind you, during those 11 years, the US government relentlessly suppressed the prices of gold, silver and the shares. They cannot do it indefinitely. Just last week equity funds saw an outflow of over $2.9 billion and bond funds saw an inflow of almost $5 billion.

New orders for long-lasting US manufactured goods fell for the first time in May in six months, off 1.1%, the sharpest drop since 8/09.

Weekly jobless claims were 457,000, off 19,000 from the previous week.

Issuance of commercial paper rose $15.4 billion to $1.099 trillion.

The Baltic Dry Index, a key indicator of future international trade activity, closed at 4,209 on May 26. In less than a month it collapsed to 251 5, a 40% loss. This thing was the same as in the late spring of 2008, shortly before world equity and commodities markets collapsed. This is a big red flag.

The Census Bureau fired 243,000 people in June. When reported the total number is the one to watch. The contraction in June payrolls should be 250,000, a loss of 70,000 in June versus a gain of 431,000 in May. This could mean a 10% U3 in June.

July and August will see 330,737 job losses of census hires.

For months, both initial and continuing jobless claims have been revised higher for the previously reported week. This occurred again on Thursday when initial claims were revised up to 476,000 from 472k. This allowed the media and intractabulls to exaggerate the decline in this week’s claims (457k vs. 463k exp) â€" even though the odds tell us that they will probably be revised higher next week.

Continuing Claims are 4.548m, 4.550m e xp; but the previous week is revised to 4.593m from 4.571m. Numerous pundits extolled the 2k decline in continuing claims while ignoring the 22k upward revision.

Senate Democrats abandoned on Thursday efforts to provide fresh aid to cash-strapped state governments and extend emergency unemployment benefits for millions of jobless workers, leaving in limbo President Obama's push for more spending to bolster the economy.

Emergency jobless benefits, which provide up to 99 weeks of income support, expired June 2. Since then, more than 1.2 million people have had their checks cut off, according to estimates by the Labor Department. That number is expected to rise to more than 2 million people by the time Congress returns from its weeklong break. Unless Congress acts, the program would phase out entirely by the end of October.

Since we’re stuck in a monetary system that allows a tiny pr ivate sector clique to control everything (business, government, military, non-profits, schools, families, etc) by putting everyone else in debt, we’ve been living in financial dictatorship for a long time.  It has been a soft PR dictatorship of Hickey-Freeman suits and Sax 5th Avenue ties, Harvard pedigrees and fratboy schmarm.  But hard dictatorship has been coming out of hiding for several years, especially since 2001.  Not only can the money powers steal trillions from the masses to hand over to themselves, but they can suck the military into conquering poor countries that aren’t subject to their usury vortex system, build Homeland to spy on Americans.

 

The Richmond Fed manufacturing activity skid down in June. The reading showed a 3 points decline from 26 last May against the present 23 value.
Sales revenues in the service sector performed the worst, with the index falling in May (from 8 to 5). June da ta showed retail sales revenues dropping to -1 from 0 in May.

The Housing Price Index released by the Office of Federal Reserve Housing Enterprise Oversight showed US home prices surged by 0.8% in April compared to a revised 0.1% in March, instead of the previously noted 0.3%.

Despite Government tax credit programs favored the increase on prices, it is a positive factor to see the housing market picking up, which acts as a reliable indicator of the US economic situation.


US ABC/Washington Post Consumer Confidence up to -43 from -45 in the week of June 20.


For the first time in history, Congress will not allow an increase in the social security COLA (cost of living adjustment).

In fact, the Henry J. Kaiser Family Foundation predicts there may not be any COLA  for the next three years. However, the per person monthly Medicare Insurance premium will be increased from the 2009 premium of $96.40 to $104.20 in 2010 and to $ 120.20 for the year 2011.

 Let's send this to all seniors that you know--remind them not to vote for ANY incumbent senators and congressmen in the 2010 and the 2012 elections.           

And don't forget - CONGRESS GAVE THEMSELVES A HEFTY PAY RAISE THIS YEAR. So who is watching out for you?  Not Congress.  Not Washington.
The city of Maywood will lay off all city employees and begin contracting police services with the Los Angeles County Sheriff's Department effective July 1, officials said.

In addition to contracting with the Sheriff's Department, the Maywood City Council voted unanimously Monday night to lay off an estimated 100 employees and contract with neighboring Bell, which will handle other city services such as finance, records management, parks and recreation, street maintenance and others. Maywood will be billed about $50,833 monthly, which officials said will save $164,375 annually.

"We will become 100% a contracted city," said Angela Spaccia, Maywood's interim city manager.

Deputies from the East Los Angeles Sheriff's Station will begin patrolling the 1.2-square-mile city by the end of the month, said Capt. Bruce Fogarty of the Sheriff's Contract Law Enforcement Bureau. The annual cost of providing those services for the small city is estimated at $3.6 million, Fogarty said.

At a council meeting Monday night, city leaders said they were forced to dismantle the Police Department and lay off city workers because they lost insurance coverage as a result of excessive police claims filed against the department. They also blamed years of financial abuse and corruption from the previous council. "We're limited on our choices and limited on what we can do," Councilman Felipe Aguirre told the standing- room-only crowd.

We will have an overview on the financial reform package in the next issue. We do know banks will continue to handle foreign exchange, interest rate, and gold and silver swaps and to hedge their own risks. Cleared and uncleard commodities, agricultural, energy and equities swaps and credit would have to move to an affiliate within two years. Why were silver and gold exempted? We know why, so that the market manipulation could be continued. Congress is telling us they completely know the scam and are paying off the bankers and Wall Street. This they hope will continue the charade of fiat money and it won’t work.

The final on first quarter GDP was up 2.7%, of which 1.7% came from stimulus. That puts the second quarter at even to minus; third quarter at minus 1% to 2% and the fourth quarter minus 2% or more. Some recovery!

The ECRI leading indictor has collapsed to a 45 week low of minus 5.7. The most precipitous slide in 50 years.

The Fed’s next step over the next 2-1/2 years is to run and gun money and credit, as inflation becomes hyperinflation.

The former stimulus and the Fed’s purchase of $1.8 trillion in toxic assets and $200 billion in treasuries shows a net combined increase in money and credit of $2.8 trillion last year. During this year and the next two years there will be lots more. Weimar here we come. More unemployment, less income, less buying power from a falling dollar and rising gold and silver will follow.

For all the focus on the historic federal rescue of the banking industry, it is the government’s decision to seize Fannie Mae and Freddie Mac in September 2008 that reportedly is likely to cost taxpayers the most money. So far the tab stands at $145.9 billion and rising, the New York Times reports. The Congressional Budget Office has predicted that the final bill could reach $389 billion. Some analysts even estimate the total may reach $1 trillion, which Sean Egan, president of Egan-Jones Ratings, recently told Bloomberg is “a reasonable worst-case scenario." Egan told Bloomberg that the final tally could hit $1 trillion assuming a 20 percent loss on the companies' more than $5 trillion in loans and guarantees, similar to what other big mortgage companies, like Countrywide Financial, suffered. The two government-sponsored enterprises (GSEs) now own more houses than there are in Seattle and are foreclosing on homeowners whose mortgages they guaranteed, the Times said.

Fannie and Freddie maintain the houses for a while, then resell them at a huge loss. In many cases, they also underwrite the new mortgage for the new buyer, generating even more bank fees taxpayers must ultimately absorb. On average, they recoup less than 60 percent of the amount borrowers failed to pay. Costs for selling a house generally are usually about $10,000. Fannie and Freddie hire people to clean up the foreclosed homes inside and out, replace missing appliances and maintain the properties until they are sold. The grass-mowing bill alone is more than $10 million per month; All told, the GSEs spent more than $1 billion on upkeep last year. “We may be behind many loans on the same street, so we believe that it’s in everyone’s best interest to aggressively do property maintenance,” said Chris Bowden, the Freddie Mac executive in charge of foreclosure sales. Short sales are a growing alternative to foreclosure. In the past, a short sale was an unusual alternative, one real estate agents rarely presented to sellers, realtor Erek Gass told the York Daily Report. “Now, they are common because of the devaluation of the housing market,” Gass says.

The Treasury Department awarded $1.5 billion to aid homeowners in California, Florida, and three other states with high foreclosure rates.

Under a program known as the Hardest-Hit Fund, Arizona, Michigan, and Nevada also will receive money, which will be distributed to state housing finance agencies, the Treasury said yesterday in a statement.

“These states have identified a number of innovative programs that will make a real difference in the lives of many homeowners facing foreclosure,’’ Herbert M. Allison Jr., the Treasury’s assistant secretary, said in the statement.

The program is estimated to help 90,000 people having difficulty paying their mortgages or living in homes that are worth less than the loans they secure.

Seventy-five percent of such homes are in the five states awarded aid, said Phyllis Caldwell, chief of the Treasury’s Homeownership Preservation Office. Half are in California, and Florida, Caldwell told reporters.

The hardest-hit fund is part of a mosaic of programs from the Obama administration to stop the spread of foreclosures, which are expected to climb to 4.5 million this year from 2.8 million in 2009, according to RealtyTrac Inc., an Irvine, Calif.,-based research firm.

The effort, which is funded from the $700 billion Troubled Asset Relief Program, aims to curb foreclosures and stabilize housing prices in communities with high concentrations of delinquent borrowers and states where much of the population lives in regions with 12 percent or higher unemployment.

The Census Bureau released the weekly payroll data for the week ending June 12th this morning (ht Bob_in_MA). If we subtract the number of temporary 2010 Census workers in the week containing the 12th of the month, from the same week for the previous month - this provi des a close estimate for the impact of the Census hiring on payroll employment. The Census Bureau releases the actual number with the employment report.
The number of Census workers paid each week. The red labels are the weeks of the BLS payroll survey. The Census payroll decreased from 573,779 for the week ending May 15th to 330,737 for the week ending June 12th. So my estimate for the impact of the Census on June payroll employment is minus 243 thousand (this will be close). The employment report will be released on July 2nd, and the headline number for June - including Census numbers - will almost certainly be negative. But a key number will be the hiring ex-Census (so we will add back the Census workers this month).

“Goldman Sachs wasn’t alone either in i ts astute “foreknowledge” of the collapse of BP’s stock value due to the Gulf disaster as BP’s own chief executive, Tony Hayward, sold about one-third of his shares weeks before this catastrophe began unfolding too.

But according to this FSB report the largest seller of BP stock in the weeks before this disaster occurred was the American investment company known as Vanguard who through two of their financial arms (Vanguard Windsor II Investor and Vanguard Windsor Investor) unloaded over 1.5 million shares of BP stock saving their investors hundreds of millions of dollars, chief among them President Obama.

For though little known by the American people, their President Obama holds all of his wealth in just two Vanguard funds, Vanguard 500 Index Fund where he has 3 accounts and the Vanguard FTSE Social Index Fund where he holds another 3 accounts, all six of which the FSB estimates will earn Obama nearly $8.5 million a year and which over 10 years will equal the staggering sum of $85 million.

The FSB further estimates in this report that through Obama’s 3 accounts in the Vanguard 500 Index Fund he stands to make another $100 million over the next 10 years as their largest stock holding is in the energy giant Exxon Mobil they believe will eventually acquire BP and all of their assets for what will be essentially a “rock bottom” price and which very predictably BP has hired Goldman Sachs to advise them on.

Important to note is that none of this wealth Obama, Goldman Sachs, and other American elites is acquiring would be possible without this disaster, all of whom, as the evidence shows, “somehow” knew what was going to happen before it actually did, including the US energy giant Halliburton who 2 weeks prior to this disaster just happened to purchase the World’s largest oil disaster service company Boots & Coots”.

How HFT Quote Stuffing Caused The Market Crash Of May 6, And Threatens To Destroy The Entire Market At Any Moment

On the subject of HFT systems, we were shocked to find cases where one exchange was sending an extremely high number of quotes for one stock in a single second -- as high as 5,000 quotes in 1 second! During May 6, there were hundreds of times that a single stock had over 1,000 quotes from one exchange in a single second. Even more disturbing, there doesn't seem to be any economic justification for this. In many of the cases, the bid/offer is well outside the National Best Bid/Offer (NBBO). We decided to analyze a handful of these cases in detail and graphed the sequential bid/offers to better understand them. What we discovered was even more bizarre and can only be evidence of either faulty programming, a virus or a manipulative device aimed at overloading the quotation system.



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Indications: Stock futures rise as G-20 pledges to cut deficits

Stock Assault 2.0 - Artificial Intelligence Stock Market Software Alert Email Print

By Polya Lesova, MarketWatch

FRANKFURT (MarketWatch) -- U.S. stock futures posted modest gains on Monday, as leaders of the world's advanced economies pledged to halve their government deficits by 2013.

Futures on the Dow Jones Industrial Average rose 28 points to 10,132. S&P 500 futures added 4.30 points to 1,079 and Nasdaq 100 futures gained 7 points to 1,846.20.

Most major U.S. stock indexes finished slightly higher on Friday.

Meeting in Canada over the weekend, leaders of the Group of 20 major economies agreed on common goals to reduce deficits and debt. They vowed to stabilize or reduce the ratios of government debt to gross domestic product by 2016.

The G-20 also warned that synchronized fiscal adjustment across several major economies could adversely impact the recovery. As a result, fiscal consolidation plans should be differentiated to national circumstances and focused on growth-boosting measures. Read more on the G-20 summit.

Lars Christensen, chief analyst at Danske Bank, downplayed the importance of the G-20 commitments.

"I don't think the G-20 has changed a lot in terms of market sentiment," Christensen said. "The world picture is still one of caution. We saw a little bit of stabilization on Friday and that carries through today as there is a lack of much news."

He said that in the low-liquidity summer markets, the World Cup in South Africa appears to be dominating the news more than any other issues.

For markets, however, "The European sovereign debt crisis is still the story," Christensen said. "For now, Europe is the weak link in the global economy."

The U.S. economic calendar is fairly thin on Monday. Data on May personal income will be released at 8:30 a.m. Eastern.

Later in the day, Kevin Warsh, a member of the board of governors of the Federal Reserve, will speak on financial-market and economic developments in Atlanta.

In Europe, most equity markets posted broad-based gains, with the Stoxx Europe 600 index /quotes/comstock/22c!sxxp (ST:SXXP 249.94, +1.61, +0.65%) up 0.8% to 250 points.

Shares of U.K. energy giant BP Plc /quotes/comstock/13*!bp/quotes/nls/bp (BP 27.02, -1.72, -5.98%) /quotes/comstock/23s!a:bp. (UK:BP. 314.15, +9.55, +3.14%) rose 3.8% in London trading, reversing some of the steep losses posted in the previous session.

BP said Monday that the costs of cleaning up the oil spill in the Gulf of Mexico have soared to $2.65 billion, an increase of $300 million from its estimate last Friday.

The firm is currently drilling a relief well in an effort to stop the leak after numerous other strategies failed. Read more on BP.

In the commodity markets, August oil futures dropped 50 cents to $78.36 a barrel in electronic trading on Globex. Gold futures edged up 60 cents to $1,256.70 an ounce.

The dollar was little changed against its major rivals, with the dollar index /quotes/comstock/11j!i:dxy0 (DXY 85.50, +0.18, +0.22%) up 0.1% to 85.366.

Polya Lesova is a reporter for MarketWatch, based in Frankfurt.


Friday, June 25, 2010

Indications: U.S. futures steady as GDP cut, reform deal struck

Stock Assault 2.0 - Artificial Intelligence Stock Market Software Alert Email Print

By Steve Goldstein, MarketWatch

LONDON (MarketWatch) -- U.S. stock futures Friday veered between slight gains and losses, with gains from the banking sector on relief over a sweeping financial services bill checked by a downward revision to first-quarter GDP.

S&P 500 futures rose 1.3 points to 1,071.80 and Nasdaq 100 futures were up a half point to 1,850.00. Futures on the Dow Jones Industrial Average rose 7 points.

The Commerce Department revised down for the second time its estimate of economic growth in the first three months of 2010, now seeing 2.7% annualized growth. The department had initially said the economy grew 3.2% from January to March, then said it had grown 3%.

Still to come is the University of Michigan's final consumer confidence reading for June.

Banks retained gains in premarket trade following the House and Senate agreeing on a package of sweeping reform that nonetheless carried easier restrictions, such as on derivatives sales, than had been floated. The bill still needs to be approved by both chambers and signed by the president.

In premarket trade, shares of leading banks including Goldman Sachs /quotes/comstock/13*!gs/quotes/nls/gs (GS 136.86, +1.88, +1.39%) , Citi /quotes/comstock/13*!c/quotes/nls/c (C 3.83, +0.05, +1.35%) and Bank of America /quotes/comstock/13*!bac/quotes/nls/bac (BAC 15.25, +0.23, +1.50%) rose between 1% and 2%.

Research In Motion /quotes/comstock/15*!rimm/quotes/nls/rimm (RIMM 53.95, -4.63, -7.90%) fell nearly 6% as it reported a 20% rise in fiscal first-quarter profit and said it would buy back up to 31 million shares, though it didn't ship as many BlackBerrys as analysts had anticipated.

Oracle /quotes/comstock/15*!orcl/quotes/nls/orcl (ORCL 22.77, +0.55, +2.45%) , the business software giant, rose over 4% after it reported a stronger-than-forecast 25% rise in fiscal fourth-quarter profit. Oracle said new software license sales rose 14%.

BP /quotes/comstock/13*!bp/quotes/nls/bp (BP 27.83, -0.91, -3.17%) slumped 4%. The oil giant said total costs of cleaning the Gulf of Mexico oil spill reached $2.35 billion, as analysts at Nomura suggested the company needs to raise money by selling stock to assure sufficient funding.

The Stoxx Europe 600 fell 0.3% in early afternoon trade, while the Nikkei 225 dropped 1.9% in Tokyo.

Oil futures turned 21 cents a barrel higher, and the euro /quotes/comstock/21o!x:seurusd (CUR_EURUSD 1.2297, -0.0029, -0.2353%) fell slightly.

Steve Goldstein is MarketWatch's London bureau chief.


NYSE Arca Morning Update - 08:30:00 ET

NYSE Arca Morning Update for Friday, Jun 25, 2010 :

STOCKS TRADING ON NYSE Arca AT A PRICE 15% OR MORE AWAY FROM
THE PREVIOUS TRADE DAY'S CONSOLIDATED CLOSE PRICE (AS OF 08:30:00 ET)

Stock Thursday's Close Current Price Pct Change Current NYSE ARCA Vol
No symbols with at least a 15% price change today

10 MOST ACTIVE STOCKS ON NYSE ARCA AS OF 08:30:00 ET

BASED ON DOLLARS TRADED: | BASED ON SHARES TRADED:
Stock $ Volume Price PctChg | Stock Share Vol Price PctChg
SPY $85,713,607 $107.71 0.3% | C 5,987,715 $3.84 1.6%
BP $39,698,863 $27.75 ( 3.5%) | BANR 1,526,400 $2.04 ( 1.0%)
C $22,996,111 $3.84 1.6% | BP 1,448,087 $27.75 ( 3.5%)
IWM $12,580,964 $63.70 0.3% | SPY 795,190 $107.71 0.3%
GLD $8,656,452 $122.32 0.9% | XLF 407,721 $14.44 1.4%
AAPL $7,520,141 $269.63 0.3% | BAC 346,050 $15.28 1.7%
XLF $5,915,170 $14.44 1.4% | SSN 227,905 $0.87 47.2%
JPM $5,880,456 $38.60 1.6% | FAZ 206,372 $15.42 ( 3.4%)
QQQQ $5,827,611 $45.50 0.4% | IWM 197,522 $63.70 0.3%
BAC $5,286,460 $15.28 1.7% | FAS 195,407 $22.01 3.4%


Price changes may be affected by symbol splits and dividends.

Consolidated close price is the last print (excluding prints with trade
conditions) prior to 4PM ET.

This information is also updated on our web page every morning at 8:35ET:
http://www.tradearca.com/data/volume/daily_update.asp

This material is for informational purposes only.
NYSE Euronext and its affiliates ("NYSE Arca") are not soliciting any action based upon it.
This material is not to be construed as an offer to buy or sell any security in any jurisdiction where such an offer or solicitation would be illegal.
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