Market News

[Fivetears]

Oh $hit! Here we go again!
Greenspan sees turmoil similar to 1987, 1998: report
http://news.yahoo.com/s/nm/20070907/bs_nm/greenspan_market_dc_1;_ylt=AtPGt8wwRS21iRxCHSU1EhYE1vAI
7 minutes ago.
Not Good!

 

[Rustynutt]

What's Japan selling this morning?

The Nikkei has been flirting with a -1.00% off and on.

 

[James48843]

Jobs report is out.

Instead of the forecasted 100,000 to 110,000 new jobs created, the report says 4,000 FEWER jobs in August.

http://biz.yahoo.com/ap/070907/economy.html?.v=2


Huge blow.

I see big DOWN on today's open.

============================
Employers Cut Jobs in August
Friday September 7, 8:48 am ET
By Jeannine Aversa, AP Economics Writer

Employers Cut Payrolls by 4,000 in August, the First Drop in US Jobs in 4 Years

WASHINGTON (AP) -- Employers sliced payrolls by 4,000 in August, the first drop in four years, a stark sign that a painful credit crunch that has unnerved Wall Street is putting a strain on the national economy.

The latest snapshot of the employment climate, released by the Labor Department on Friday, also showed that the unemployment rate held steady at 4.6 percent, mainly because hundreds of thousands of people left the work force for any number of reasons.


Job losses in construction, manufacturing, transportation and government swamped gains in education and health care, leisure and hospitality, and retail. Employment in financial services was flat. The weakness in payrolls reflected fallout from the deepening housing slump, a credit crisis and financial turbulence that has made businesses more cautious in their hiring.

The report was much weaker than economists were expecting. They were forecasting payrolls to grow by 110,000.

The drop of 4,000 jobs in August was the first decline since August 2003.
The surprisingly weak report provides the Federal Reserve with a reason to lower interest rates when it meets next on Sept. 18.

 

[weatherweenie]

09:00 am : S&P futures vs fair value: -16.6. Nasdaq futures vs fair value: -20.0. The pre-market readings did extend below the knee jerk reaction to the data, which was the first negative payroll number since Aug 2003, but have begun to stablize. Although the weaker economic growth is of concern going forward, increased expectation for a Fed cut in interest rates on Sep 18 at least for the immediate term has stalled the pre-market slide. Real GDP forecasts for the second half of the year might be shaved a bit, but will probably still stay near 2%.

 

[weatherweenie]

10:35 am : Minor new session lows for the Dow and Nasdaq Comp while the S&P 500 holds slightly above the knee jerk payroll related low. The debate as to how the data will impact the Fed decision on Sep 18 and beyond is underway with Goldman Sachs indicating that they are looking for a 50 bp rate cut at the Sep meeting in the wake of this morning's unexpected payroll weakness. While the S&P 500 and Nasdaq Comp have held near technical milestones (200 day and 50 day respectively), the limited recovery suggests that the market remains unconvinced at this point that a Fed ease will be able to keep the economy on a strong growth track amid the weakest payroll data since Aug 2003.

 

[weatherweenie]

2:05 pm : Commentary from the Street about potential Fed moves on Sep 18 and beyond (Goldman expects 50 bp cut, Bear Stearns 25 bp this month, Barclay's looking for 75 bp by year end) and even some chatter concerning the possibility of an emergency move before Sep 18 provided some positives for the market to hang its hat on during the advance off the late morning low. However, the Finance sector, which helped pace the way during the bounce, has lost its footing over the last half hour which has taken the starch out of the recovery attempt with the indices cutting the recovery attempt in half in recent trade. The S&P 500 has clear technical milestones at 1464 and 1466 that need to be broken on a sustained basis to begin to improve the current negative bias.

 

[weatherweenie]

3:00 pm : The market averages are ticking lower again in recent trade as selling pressure as measured by TRIN runs higher. No fresh news to highlight as a reason for the downswing but as noted earlier, there are no real incentives to step in on the buy side, despite all the chatter surrounding rate cuts, ahead of the weekend.

 

[weatherweenie]

http://biz.yahoo.com/ap/070907/beazer_financing.html?.v=4

ATLANTA (AP) -- Homebuilder Beazer Homes USA Inc. says it has received default notices for five senior notes due between 2011 and 2016, though the company denies it is in default on that debt.
Shares fell 9 percent in morning trading after the company made the announcement Friday, a little more than two weeks after Beazer had asked a federal court to stop U.S. Bank National Association from demanding the builder repay $1.38 billion in loans.

 

[FUTURESTRADER]

homebuilders are down ~85% since july 2005

 

[Birchtree]

That's why I'm buying them. I'll follow them right into bankruptcy if I have to.

 

[weatherweenie]

That's why I'm buying them. I'll follow them right into bankruptcy if I have to.

Be careful what you wish for, you might get it.

 

[Birchtree]

Sometimes it pays to have a write off against gains - the reward one reaps for taking a risk and being a looser. And I've certainly had my share over the years. One of the advantages of owning equities.

 

[Birchtree]

"The Housing Bubble Bellweather Index now sits near recent lows and we note that the shape of the decline over the past weeks rivals the dot-com bust of the late 1990s."

http://www.bearmarketcentral.com/chartoftheweek.htm

 

[weatherweenie]

8:55am ET
[BRIEFING.COM] S&P futures vs fair value: +5.0. Nasdaq futures vs fair value: +12.1. The major indices are indicated higher at the open in a reflex bid that follows Friday's large losses. Per usual, there are a lot of news items crossing the wires, but none are having any significant impact in their own right. One thing that is noteworthy is the absence of any big deals announced this Monday morning. Separately, several Fed officials will be giving speeches today that could have some impact on trading as a few speeches will touch on the economic outlook. Fed Chairman Bernanke will be speaking tomorrow on global imbalances.

 

[weatherweenie]

Intel Raises 3rd-Quarter Revenue Outlook Amid Strong Demand

SANTA CLARA, Calif. (AP) -- Intel Corp., the world's largest chip maker, raised its third-quarter revenue outlook on Monday due to stronger-than expected demand for its microprocessors. The company now expects revenue between $9.4 billion and $9.8 billion, up from its previous range of $9 billion to $9.6 billion.

http://biz.yahoo.com/ap/070910/intel_outlook.html?.v=4

 

[weatherweenie]

SAN FRANCISCO (Reuters) - San Francisco Federal Reserve Bank President Janet Yellen said on Monday that current financial market turmoil has added "appreciably" to downside risks for the U.S. economy.

http://biz.yahoo.com/rb/070910/usa_fed_yellen.html?.v=1

 

[weatherweenie]

Beazer Homes receives purported notice of default related to its convertible senior notes (BZH) 9.45 -0.05 : Co announced that on September 7, 2007 it received a purported default notice from U.S. Bank National Association, the trustee under the indenture governing Beazer's outstanding 4 5/8% Convertible Senior Notes due 2024. The notice alleges that, by reference to the Trust Indenture Act, the Company is in default under the indenture because it has not yet filed with the Securities and Exchange Commission and delivered to the trustee its Quarterly Report on Form 10-Q for the quarterly period ended June 30, 2007. The notice further alleges that these defaults will become events of default under the indentures if not remedied within 60 days. The Co does not believe that it is in default under the indenture governing its outstanding convertible senior notes. The indenture does not contain an express financial reporting covenant requiring that Beazer file periodic reports with the SEC or deliver to the trustee copies of Beazer's SEC reports within any prescribed time period. Therefore, the Co believes that this notice of default is invalid and without merit, as are the other notices of default previously delivered by the trustee.

 

[weatherweenie]

Fed Chairman Bernanke gave a speech today about global imbalances. It was closely watched given his policy-setting stature, but ultimately, his remarks had no bearing on the proceedings since he didn't comment on the economy or the interest rate

 

[weatherweenie]

Briefing.com
12:41PM S&P 500 Intraday pattern (TECHX) 1464.24 +12.54 : The index held near its first hour range floor and the 50% retrace off yesterday's late low. The pattern off the high looks corrective (three legs down) and as long as 1461.35 and the midday low are intact the index is positioned for further gains. Resistance above the high (1466.40) is at 1473 and 1476.

 

[weatherweenie]

Jobless claims rose less than expected, up 4000.