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Federal Reserve Open Market Operations
The Fed's Open Market Operations desk performed 1 repurchase operation.
- a $2.5billion, overnight repurchase entirely in T-backed collateral.
Major US Indices
The primary interesting thing for the session was the explosion in Iran (I've covered that in a bit more detail in the Bond Market stuff). Sure, Greenspan crapped on interminably during the speech formerly known as Humphrey Hawkins, but nothing he says is worth bothering about: the guy is a bullshit artist, pure and simple, And he's not a very smart bullshit artist, either.
Think "Alexander Downer without Oxford", or "John Howard with no tooth-caps". It seems that to be a Neo-conman all that's required is a willingness (nay, propensity) to bullshit your way out of any difficulty. The greater the amount of verbiage in your bullshit, the more likely you are to be hailed as a GEEEnius by other Neo-conmen.
They're all like Natan Sharansky, the Israeli bullshitter who craps on about how the world is engaged in a cosmic struggle between "free societies" and "fear societies" - ignoring the rather unpleasant anomaly that "free society" IDF snipers shoot "fear society" Palestinians schoolgirls in the head... by accident. If Israel was a "one man one vote" democracy it would be an Islamic theocracy - pure and simple - so next time you see anyone refer to "democracy" in the Middle East, remind yourself of that little fact. Ditto all this crap about nukular weapons: if I lived next door to Israel and had a load of oil and water, I would want a nuke too.
But I digress...
Stock indices staged a massive ego-wank for Greenspan - and that explains the session.
After the news from Iran crossed the wires, the stock index futures fell to 1203.50 (on the S&P futures), and then recovered most of it in the next 15 minutes. But once Mr Magoo started his schpiel it was time for another goosing - this time taking the S&P futures up 7 points in under an hour, to a little double top at 1213.50. The futures rose 10 points from the day's low and set its high right at the finish of Greenspan's palaver.
For the day only the S&P managed a gain - primarily because Energy stocks are rising as a proportion of S&P capitalisation, and Energy stocks are benefiting from both higher energy demand and higher USD prices. The DJIA had a crack at finishing in the green , but closed down 2.44 points (0.02%), closing out the day at 10834.88 points; within the blue-chip index, 9 stocks rose, the biggest gainers being Exxon Mobil (XOM +2.74% to $58.48) and Alcoa (AA +2.65% to $30.60). Losers in the Dow numbered 21 and were led by American International Group (AIG -1.74% to $70.60) and McDonalds (MCD -1.69% to $32.60); Volume traded was tilted in favour of the losers by 309.3m shares to 63.4m.
The broader S&P500 rose 0.22 points (0.02%), to end the session at 1210.34.
Over at Times Square, the Nasdaq Composite dipped 1.78 points (0.09%), to close at 2087.43, while larger-cap technology issues fared worse with the Nasdaq100 losing 4.89 points (0.32%), to end at 1542.41 points.
NYSE Volume was chunky, with 1.49 billion shares changing hands, while Nasdaq Volume was chunky, with 1.88 billion shares being shifted from one online brokerage account to another (and back again, in all likelihood).
| Index | Close | Gain(Loss) | % |
| DJIA | 10834.88 | -2.44 | -0.02% |
| S&P500 | 1210.34 | 0.22 | 0.02% |
| Nasdaq Composite | 2087.43 | -1.78 | -0.09% |
| Nasdaq100 | 1542.41 | -4.89 | -0.32% |
| NYSE Volume | 1.49bn | - | - |
| Nasdaq Volume | 1.88bn | - | - |
Bellwethers
My 9-stock "bellwethers" group fell by an average of 0.58%
- General Electric (GE) -$0.17 (0.47%) to $36.22;
- Citigroup (C) -$0.22 (0.45%) to $49.18;
- Wal Mart (WMT) -$0.10 (0.19%) to $52.60;
- I.B.M. (IBM) +$0.29 (0.31%) to $94.62;
- Intel (INTC) -$0.33 (1.35%) to $24.14;
- Cisco Systems (CSCO) -$0.21 (1.17%) to $17.71;
- eBay (EBAY) +$0.69 (0.81%) to $86.09;
- Fannie Mae (FNM) -$1.20 (1.9%) to $62.02; and
- Freddie Mac (FRE) -$0.55 (0.83%) to $65.89.
Market Breadth & Internals
NYSE advancing Issues exceeded decliners by 1712 to 1597 for a single-day A/D reading of 115; Nasdaq gainers trumped losers by 1602 to 1526.
On the NYSE declining volume was greater than volume in advancing issues by 742.2 to 722.9 million shares; On the Nasdaq declining volume exceeded volume in advancing issues by 1043.9 to 798.8 million shares.
290 NYSE-listed stocks rose to new 52-week highs, and 14 posted fresh 52-week lows, while on the Nasdaq there were 106 stocks that hit new 52-week highs, and 30 which fell to fresh 52-week lows.
| NYSE | Nasdaq | |
| Advancers | 1712 | 1602 |
| Decliners | 1597 | 1526 |
| Advancing Volume (m) | 722.89 | 798.83 |
| Declining Volume (m) | 742.2 | 1043.85 |
| New Highs | 290 | 106 |
| New Lows | 14 | 30 |
Market Sentiment
| Index | Close | Gain(Loss) | % |
| CBOE Volatility Index | 11.1 | -0.15 | -1.33% |
| CBOE Nasdaq Volatility Index | 17.42 | -0.15 | -0.85% |
| Equity Put-Call Ratio | 0.63 | 0.04 | 6.78% |
| 10-day PCR | 0.63 | 0 | -0.12% |
| SPX-VIX Ratio | 109.04 | 1.4734 | 1.37% |
Bond Market Analysis
Bonds fell another half a point at the long end, with the March05 30-year Treasury future falling as low as 114&28/32 (a gain of over $2100 per contract since the short position at 117 was declared) before recovering to above 115. The contract closed at 115 & 8/32. The yield on the benchmark 30-year Treasury bond rose 4.1 basis points to 4.522%.
Some of the move in bonds was due to the cryptic reports coming out of Iran; early reports say that it was a missile fired by an unidentified plane (the sort of unmarked plane that Israel used to strafe the USS Liberty). but later reports indicated that it was either a wing-tank that had been dropped or an explosion as part of a geological survey.
Call me a cynic, but when things go "boom" near an obvious target (I mentioned the main Iranian targets prior to the US elections: Bushehr, Isfahan and a couple of others) I don't buy any "official" explanation that contradicts eyewitnesses. I think that the US and/or Israel has just started the early stages of a shooting war with Iran, in which case the fecal matter is on its way to the fan. Just hen you thought that the supposed "geniuses" in the NeoConman-brigades might have learnt their lesson, they show that they're empty-heads - just like Strauss and their other "intellectuals". They're just a pack of Trotskyites, the lot of them.
| Index | Close | Gain(Loss) | % |
| UST 13wk (yld) | 2.527 | 0 | 0% |
| UST 2Y (yld) | 3.39 | 0.06 | 1.8% |
| UST 5Y (yld) | 3.782 | 0.07 | 1.97% |
| UST 10Y (yld) | 4.158 | 0.06 | 1.46% |
| UST 30Y (yld) | 4.522 | 0.041 | 0.91% |
The Banks Index dipped 0.59 points (0.58%), closing at 101.37; within the index,
- State Street (STT) -$0.92 (2.03%) to $44.44;
- Northern Trust (NTRS) -$0.75 (1.69%) to $43.70;
- Bank Of NY (BK) -$0.37 (1.2%) to $30.40;
- M&T Bank Corp (MTB) -$1.19 (1.16%) to $101.14; and
- US Bancorp (USB) -$0.30 (0.99%) to $29.95.
The Broker-dealer Index slid 0.21 points (0.14%), closing at 151.18; the ticket clippers lined up as follows -
- Bear Stearns (BSC) -$1.26 (1.22%) to $101.74;
- Jeffries Group (JEF) -$0.44 (1.1%) to $39.42;
- A G Edwards (AGE) -$0.33 (0.75%) to $43.55;
- Charles Schwab (SCH) -$0.06 (0.55%) to $10.89; and
- Morgan Stanley (MWD) -$0.27 (0.45%) to $59.73.
The Philadelphia SOX (Semiconductor) index declined 3.71 points (0.84%), closing at 435.53
- Broadcom (BRCM) -$0.84 (2.5%) to $32.76;
- Infineon Tech (IFX) -$0.20 (1.99%) to $9.85;
- Novellus Systems (NVLS) -$0.47 (1.57%) to $29.48;
- Marvell Tech Group (MRVL) -$0.53 (1.43%) to $36.46; and
- Intel (INTC) -$0.33 (1.35%) to $24.14.
Gold & Silver Markets
[Commentary]
Gold fell by $0.2 (0.05%) to close at $426.2 per ounce.
Gold Bugs Index shed 0.39 points (0.19%), ending the day at 207.75
- Kinross Gold (KGC) -$0.18 (2.74%) to $6.40;
- Gold Fields (GFI) -$0.31 (2.66%) to $11.35;
- Harmony Gold (HMY) -$0.12 (1.47%) to $8.04;
- Iamgold (IAG) -$0.09 (1.21%) to $7.37; and
- Agnico Eagle (AEM) -$0.13 (0.95%) to $13.57.
Silver fell by $0.08 (1.02%) to close at $7.27 per ounce. The Gold and Silver Index (XAU) gained 0.09 points (0.09%), ending the day at 94.95 points.
- Freeport McMoran (FCX) +$1.04 (2.73%) to $39.17;
- Placer Dome (PDG) +$0.17 (0.96%) to $17.92;
- Barrick Gold (ABX) +$0.18 (0.78%) to $23.27; and
- Newmont Mining (NEM) +$0.20 (0.47%) to $42.54.
| Index | Close | Gain(Loss) | % |
| Gold | 426.2 | -0.2 | -0.05% |
| Silver | 7.27 | -0.075 | -1.02% |
| PHLX Gold and Silver Index | 94.95 | 0.09 | 0.09% |
| AMEX Gold BUGS Index | 207.75 | -0.39 | -0.19% |
Oil Market
[Commentary]
Oil was firmer, rising by $1.17 per barrel, closing at $48.47 per barrel. The Oil and Gas Index (XOI) rose 17.08 points (2.13%), to 819.9
- Kerr Mcgee (KMG) +$2.90 (4.22%) to $71.62;
- ConocoPhillips (COP) +$2.93 (2.89%) to $104.31; and
- Unocal (UCL) +$1.42 (2.84%) to $51.42.
The Oil service stocks (OSX) Index posted a rise of 3.52 points (2.6%), to end the session at 138.72
- Transocean (RIG) +$2.33 (5.05%) to $48.45;
- Smith International (SII) +$2.32 (3.78%) to $63.63; and
- Rowan Companies (RDC) +$1.01 (3.36%) to $31.03.
| Index | Close | Gain(Loss) | % |
| Reuters CRB | 288.57 | -0.76 | -0.26% |
| Crude Oil Light Sweet | 48.47 | 1.17 | 2.47% |
| Heating Oil | 1.3435 | 0.0502 | 3.88% |
| Natural Gas | 6.116 | -0.054 | -0.88% |
| Unleaded Gas | 1.284 | 0.027 | 2.15% |
| AMEX Oil Index | 819.9 | 17.08 | 2.13% |
| Oil Service Index | 138.72 | 3.52 | 2.6% |
Currency Markets
[Commentary]
| Index | Close | Gain(Loss) | % |
| US Dollar Index | 83.75 | 0.19 | 0.23% |
| Euro | 1.3027 | 0.001 | 0.08% |
| Yen | 105.38 | 0.98 | 0.94% |
| Sterling | 1.8851 | -0.0114 | -0.6% |
| Australian Dollar | 0.7849 | -0.0022 | -0.28% |
| Swiss Franc | 1.1871 | -0.0031 | -0.26% |
| Canadian Dollar | 0.8087 | -0.0034 | -0.42% |
Euro-Zone Indices
| Country | Index | Last | % | % |
| France | CAC 40 | 4009.02 | -21.43 | -0.53% |
| Germany | DAX-30 | 4368.77 | -33.26 | -0.76% |
| UK | FTSE 100 | 5053.2 | -5.7 | -0.11% |
| Italy | MIBTel | 24740 | -165 | -0.66% |
European Index Internals
| CAC-40 | DAX-30 | FTSE-100 | |
| Advancers | 8 | 6 | 33 |
| Decliners | 30 | 24 | 64 |
| Advancing Volume (m) | 14.2 | 7.2 | 556.1 |
| Declining Volume (m) | 174.7 | 86 | 999.5 |
Euro STOXX-50 Largest Volume
| Name | Close (€) | Change | % | Volume |
| Vivendi Universal | 24.83 | -0.37 | -1.47% | 5847807 |
| Unilever Cert | 50.6 | -0.45 | -0.88% | 3325812 |
| Unicredito | 4.418 | -0.01 | -0.11% | 207415 |
| Total | 172.6 | 0.1 | 0.06% | 3429764 |
| Tim | 5.383 | -0.01 | -0.11% | 45061 |
CAC-40 Largest Gainers
| Name | Close (€) | Change | % | Volume |
| Pernod Ricard | 109 | 2.8 | 2.64% | 525544 |
| Lagardere S.C.A. | 60.05 | 1.15 | 1.95% | 1897412 |
| AGF | 58.4 | 0.5 | 0.86% | 485958 |
| Casino Guichard | 64 | 0.3 | 0.47% | 270059 |
| EADS | 24.1 | 0.1 | 0.42% | 2647672 |
CAC-40 Largest Decliners
| Name | Close (€) | Change | % | Volume |
| TF1 | 24.95 | -0.96 | -3.71% | 2945618 |
| ST Microelectronics | 13.2 | -0.37 | -2.73% | 7063952 |
| Accor | 35.18 | -0.8 | -2.22% | 1297732 |
| Cap Gemini | 26.45 | -0.42 | -1.56% | 1289665 |
FTSE Largest Gainers
| Name | Close (£) | Change | % | Volume |
| Yell Group | 4.68 | 0.01 | 0.11% | 3701674 |
| Xstrata | 10.62 | 0.25 | 2.41% | 4920553 |
| WPP Group | 5.85 | -0.03 | -0.51% | 6642430 |
| Wolseley | 11.095 | 0 | 0% | 4198581 |
| William Hill | 6.03 | -0.12 | -1.95% | 3438800 |
FTSE Largest Decliners
| Name | Close (£) | Change | % | Volume |
| 3I Group | 7.17 | -0.14 | -1.92% | 3023870 |
| Alliance & Leics | 9.405 | -0.03 | -0.27% | 2193891 |
| Alliance Unichem | 7.75 | -0.04 | -0.45% | 1193228 |
| Allied Domecq | 5.34 | -0.01 | -0.09% | 16574790 |
| Amvescap | 3.5925 | -0.08 | -2.11% | 6047558 |
DAX-30 Largest Gainers
| Name | Close (€) | Change | % | Volume |
| Metro | 41.44 | 0.43 | 1.05% | 1616854 |
| Adidas Salomon | 114.07 | 0.77 | 0.68% | 430436 |
| Deutsche Boerse | 49.51 | 0.22 | 0.45% | 1106600 |
| Deutsche Post | 18.08 | 0.07 | 0.39% | 2583754 |
| Linde | 51.15 | 0.15 | 0.29% | 588025 |
DAX-30 Largest Decliners
| Name | Close (€) | Change | % | Volume |
| Commerzbank | 16.8 | -0.34 | -1.98% | 5568139 |
| Infineon Tech | 7.55 | -0.15 | -1.95% | 6534812 |
| MAN | 30.81 | -0.6 | -1.91% | 1374424 |
| Allianz | 94.21 | -1.52 | -1.59% | 2649855 |
| E.On | 70.85 | -0.85 | -1.19% | 2730409 |
