CROP Hunger Walk - Last Call for 2009

Dear Readers,

We have until the end of this month to raise money for the wonderful cause of the CROP Hunger Walk (that means through this weekend). Please reach into your hearts, and into your pockets, and offer what you can via the banner ad below. Clicking through the banner will take you to the Wall Street Greek contribution page at CWS, where we welcome even the smallest donation. I will never see nor touch your contribution; I am only acting as a medium for CWS.

CROP Hunger Walk

This year's CROP Hunger Walk proved another nice experience, as a solid group of good people marched through a chilly sprinkling to raise money to feed the neediest of the world, including those in the USA. The image above shows yours truly and Wall Street Greek Columnist Daniel Salem Padovano, as we enjoyed the honor of leading the walk for half of its soul-enriching journey.

This year's walk was expanded to twice the distance of that of 2008, and proved to be an enjoyable challenge. I'll ask New York Walk organizer, John Paterakis, to offer the exact details of the distance and anything more he would like to add via the comment function below this blog post. To be quite honest, the time passed so quickly, I hardly noticed the distance traversed. Good company makes for good times.

I must tell you that I am a little disappointed with the total contribution from Wall Street Greek readers. Times are tough, but even a small five dollar donation is welcomed. In times like today's, many charities see a decline in giving. It is unfortunate, because it comes at a time when charity is needed even more. I know a lot of you gave at the office, but I'm asking you to please give again if you can.

There's a story in the Bible you may recall (Mark 12:41), where Jesus takes note of the giving of an old poor woman. He compares her charity to that of wealthy men who give in order to be seen doing so. Whether you are religious or atheist is of no matter to understanding the truth of this story. Jesus says to his disciples, "Assuredly, I say to you that this poor widow has put in more than all those who have given to the treasury; for they all put in out of their abundance, but she out of her poverty put in all that she had, her whole livelihood." By no means am I asking you to do as much as that poor woman, for she was exceptional.

I want to thank you for your help and interest in the blog. If you were unable to help, then maybe next year you might walk and raise money. There are noble efforts underway almost daily, so there's also no need to wait that long. We should do what we can, even if that service is other than donation. President Obama has loudly put out the call to the citizenry to serve our fellow man. That sweet song rings true the world over. This was something that I myself promised to do when I made it big some day; then I discovered that even a poor man can give of his heart... and that giving can be more enriching than money.


Please see our disclosures at the Wall Street Greek website and author bio pages found there. (Tickers: DIA, SPY, QQQQ, NYX, DOG, SDS, QLD, XLF, IWM, TWM, IWD, SDK).

In the Pre-Market - GM Bankruptcy & GDP Revision

Visit the front pages of Wall Street Greek and Market Moving News to see our current coverage of economic reports and financial markets.

(Tickers: GM, F, TM, HMC, TIF, GSK, DIA, SPY, QQQQ, NYX, DOG, SDS, QLD, XLF, IWM, TWM, IWD, SDK)

GM Bankruptcy & GDP Revision

Today's market news wire offers opportunity to put the dead to rest. Today, the market digests the realization of a GM bankruptcy. At the same time, we received the revision of first quarter GDP, which offers contemplation over the worst six-month economic period in sixty years. Will the market look ahead or grow anxious over the many pitfalls that may lie ahead... Futures are higher for starters.

GM Bankruptcy

General Motors will file for bankruptcy on June 1st. The unimaginable has occurred, as the behemoth of American industry (and history) goes under. Yet, "going under" no longer carries the same distasteful connotation it once did. It once meant failure after all. In this new millennium of change, bankruptcy has been rebranded by the Obama Administration. Bankruptcy is cool now... it's jazzy (he sooths in dramatic tone)... it's like a day at the spa... it's a form of renewal.

Guess what though, Obama is not offering up false advertising; bankruptcy really is the best long-term option for GM. Consider the fact that our nation will not lose its auto industry. The only change that will occur is in the ownership of GM and Chrysler. Okay, sure, shareholders lost everything, but misery loves company.

You, the American taxpayer, will shortly own 72.5% of GM. Still, that does not mean you can walk into the corporate headquarters or kick the tires around in one of GM's surviving plants. Nada! We're sorry to inform you that you will still be arrested for that... Not only do you own GM outright, but the US government will also provide debtor-in-possession financing of another $50+ billion. This comes after the $19.4 billion in aid we have already served up to GM. And in some corner of the most remote Mormon Temple, Mitt Romney is smiling...

Q1 GDP Revision

Before the GM news broke, the first quarter GDP revision was expected to key Friday morning's wire. Reported at 8:30, GDP contraction was revised to a better state, to -5.7%, from -6.1% at first look. Economists had forecast a better rate of GDP contraction of 5.5%, and this revised result matches with Q4 2008 GDP contraction of 6.3%. That's the economy's worst six month performance in 60 years. It's really no matter though, as green shoots seem to be sprouting the world over this spring (summer starts on June 21st, not Memorial Day). The market cares more about the next two quarters than the first.

Most every component of GDP weighed against it, but personal consumption expenditures offered positive contribution. Real personal consumption expenditures increased 1.5% in Q1, versus a 4.3% decrease in Q4. The price index for gross domestic purchases increased 1.4% when excluding food and energy, so a portion of the contribution of PCE came from price increase.

While we may take a closer look at the report later, generally speaking we can say there was a crescendo-type contraction over the last six months. It included great cut-back in import activity and inventory reduction, and should lead to the leaner start every economic cycle incorporates.

ISM-Chicago Business Barometer

At 9:45, the Institute for Supply Management-Chicago will report its Business Barometer Index. The Chicago area measure is expected to show modest improvement to 42.0, from 40.1 in April. A reading below 50 still signifies economic contraction, but before we heal, we must stop the bleeding.

Consumer Sentiment

Look for the Reuters/University of Michigan Consumer Sentiment reading at 9:55. Economists showed a lack of trust in the economy heading into this week, forecasting a modest improvement for most economic metrics, the confidence measure included. The gurus see sentiment moving to 68.0, from 67.9 at last check.

Jean-Claude & Pork Bellies

European Central Bank President (ECB) Jean-Claude Trichet will discuss the role of central banks in times of economic crisis. Farm Prices are due for report at 3:00 p.m.

Corporate News Drivers

See GM above! An FDA panel will review GlaxoSmithKline's (NYSE: GSK) leukemia drug Arzerra. Friday's EPS schedule includes news from Tiffany (NYSE: TIF), Graham (AMEX: GHM), Madeco S.A. (NYSE: MAD), National Bank of Greece (NYSE: NBG), Royal Bank of Canada (NYSE: RY) and a few more.


Please see our disclosures at the Wall Street Greek website and author bio pages found there.

ALERT: Shipping Rates Increase Further

Visit the front pages of Wall Street Greek and Market Moving News to see our current coverage of economic reports and financial markets.

Shipping Rates Increase

I would like to alert my readers that shipping rates are moving sharply higher this week led by capesize ships. Important information emerging this week is the beginning of settlements of iron ore price negotiations between major Asian buyers and Brazilian suppliers. That is giving an extra lift to freight rates; therefore, the technical breakout seen last week prevailed. Freight prices on Capesizes (currently at $56,698 four TC average) look to quickly test the next resistance level at about $70,000 per day. Panamaxes and Supramaxes (at $20,934 and $19,083 respectively) to follow suit to near $25,000 per day.


Please see our disclosures at the Wall Street Greek website and author bio pages found there. (Tickers: SEA, EGLE, GNK, DSX, NAT, SINO, PRGN, XSEAX, DIA, SPY, QQQQ, NYX, DOG, SDS, QLD, EWZ, XBZLX, BZF, PXI, SNP).

News You Need to Know

The news you need to know is baked fresh daily at Wall Street Greek and Market Moving News.

The economic data schedule is semi-heavy today. Two economic reports greeted investors before the market open. Durable Goods Orders and Weekly Jobless Claims highlight the wire, with New Home Sales due up later in the AM. Driving trading, look for positive Orders data to match up against rising concern about a pending GM Bankruptcy. We're betting any early rally is quelled quickly as a result.

(Ticker: TGT, PG, COST, DIA, SPY, QQQQ, NYX, DOG, SDS, QLD, IWM, TWM, IWD, SDK, RHI, MAN, KFY, TD, DELL, BIG)

News You Need to Know

Markets were closed today in China, Hong Kong and Taiwan. North Korea is also near to being completely shut down, as the nuisance nation continues to push the buttons of its massive neighbors and other much more significant powers.

Durable Goods Orders

Durable Goods Orders data was released at 8:30 this morning. April Orders increased 1.9%, which compared favorably to the economists' consensus for flat order activity. April's growth was also welcomed news when considering the -2.1% order decline seen in March. Ex-Transportation, orders also improved, this time by 0.8%, which compared against an initially reported decline of 0.6% in March (this may have been revised). Excluding Defense, orders rose again, by 1.0%.

Another green shoot here should offer the market reason for rally this morning; where we end is anyone's guess as the market now seeks a proper value mark. Previously, the market gained as complete empire level failure had been priced in. The market is now seeking confirmation that early shoots have not been premature bloomers that will die off with the next frost, and this report offers some of that.

Weekly Initial Jobless Claims

Also reported at 8:30 this morning, the regular Weekly Jobless Claims data offered a mild rub of good news. There has been some moderation in this number of late, but jobs have continued going away persistently and at a troublesome pace. New Unemployment Claims tallied 623K in the week ending May 23. Bloomberg's consensus of economists was looking for a reading of 635K new benefits filers. This week's data also compared well against the prior week period, which noted filers of 636K (revised from 631K).

This week's data offered mild improvement, but keep in mind that a General Motors (NYSE: GM) bankruptcy looms for June 1st (or so). This would bring a flood of new layoffs, plant closings, and generally higher unemployment as even more dealerships and some suppliers are forced to shut down. Thus, we are working toward another harsh monthly Employment Situation Report next week. The one that follows that should not be much better either, considering GM's pending death/reorganization, or whatever you want to call it. 9% to 10+% unemployment looks like a certainty before this cycle trough is through.

New Home Sales

At 10:00 a.m., look for the New Home Sales data for April. This data has also signaled stabilization of late, but there's not a scent of recovery in the wind as yet. At least homebuilder sentiment has improved from suicidal to deep depression. Economists forecast the annual pace of sales could measure 360K in this latest check, compared to the March pace of 356K.

EIA Petroleum & Natural Gas Inventory, and OPEC News

Because of the Memorial Day holiday, the EIA's Petroleum Status Report has been moved to 11 AM Thursday, from its usual Wednesday reporting. The Natural Gas Storage Report will reach the wire at its usual time today (10:30). Last week's Petroleum data showed a crude oil inventory draw of 2.1 million barrels. Oil had been on the rise anyway, but with a rare draw from storage, the black commodity had all the more reason for it. We surpassed the $60 mark on crude, but that's very likely due to its inverse relationship with the dollar and dollar softness. Today, OPEC also chimed in, with news that it would keep production quotas steady.

News from the Capitol

At 5:45 p.m., Dallas Fed President Richard Fisher will address the Washington Association of Money Managers on the topic of the economic crisis. Keeping with Washington, President Obama will hook up with Palestinian Authority President Mahmoud Abbas today. "The Greek" sees the greatest risk regarding Obama and his foreign policy as the man's honest nature. Ironically, it's also his greatest asset. He does not seem capable of keeping a secret though, and I'm referring to his commentary after first meeting with Israeli officials months ago. We thought he sort of showed too much of his hand back then (look through our archives).

We think his recent offering of an Iranian time-line has given the Iranians, and whoever else may lie in the weeds, opportunity to steal initiative in what seems an inevitable war scenario. Luckily, we suspect the Israelis are well aware of that too...

Ackman vs. Target & Other Corporate News Drivers

Bill Ackman, of Pershing Square Capital, has got his sights set on Target (NYSE: TGT) today, as he seeks board seats at the company's annual shareholders' meeting. Heinz (NYSE: HNZ) will hold its analyst meeting, where it is expected to provide its outlook for fiscal 2010. The FDA may offer important findings on Johnson & Johnson's (NYSE: JNJ) computer-assisted sedation system that might help limit Anesthesiologist error and maybe even malpractice, we speculate.

Thursday's earnings schedule highlights news from Costco (Nasdaq: COST), Dell (Nasdaq: DELL), Angeion (Nasdaq: ANGN), Arctic Cat (Nasdaq: ACAT), Bank of Nova Scotia (NYSE: BNS), Big Lots (NYSE: BIG), Canadien Imperial Bank of Commerce (NYSE: CM), Esterline Tech (NYSE: ESL), Fred's (Nasdaq: FRED), FreeSeas (Nasdaq: FREE), Frontline (NYSE: FRO), Genesco (NYSE: GCO), J. Crew (NYSE: JCG), Jackson Hewitt Tax Service (NYSE: JTX), Jamba Juice (Nasdaq: JMBA), Marvell Tech (Nasdaq: MRVL), Mentor Graphics (Nasdaq: MENT), Munro Muffler (Nasdaq: MNRO), Novell (Nasdaq: NOVL), Omnivision (Nasdaq: OVTI), Perry Ellis (Nasdaq: PERY), Sanderson Farms (Nasdaq: SAFM), Shoe Carnival (Nasdaq: SCVL), Sonic Solutions (Nasdaq: SNIC), Wet Seal (Nasdaq: WTSLA), Toronto Dominion (NYSE: TD), Trina Solar (NYSE: TSL) and more.


Please see our disclosures at the Wall Street Greek website and author bio pages found there.

Housing Starts - Multi-Family Mirage

Visit the front pages of Wall Street Greek and Market Moving News to see our current coverage of economic reports and financial markets.

Just last week, we promised you we would offer insight into the Housing Starts disappointment; though April's soft housing starts data did not bother us much. We believe the intricate dynamics of the construction/real estate investment business have simply pulled one over on the less than visionary among us. We, however, took careful note of the multi-family factor, and the contrast presented between it and single family stand alone housing.

(Tickers: DPRRX, AIV, TOL, HOV, BZH, LEN, PHM, NVR, GFA, MDC, CTX, KBH, RYL, MTH, XIN, BHS, SPF, MHO, OHB, WCI, NYX, DIA, SPY, SDS, DOG, QLD, VNQ)

Housing Starts

The rate of housing starts sank to an annual pace of 458K in April, short of the consensus view for a level of 540K, as per Bloomberg's survey of economists. The fall was even steeper, considering that the previous month's results were revised up to 525K, from the 510K initially reported for March. Also, an indicator of future starts, Building Permits fell to 494K, down from the revised March figure of 511K.

Multi-Family Quirk

While the market worried about an apparent backslide for housing, we were soothed by an interesting aspect of the report. It seems single family housing starts rose across the country and in almost every major region. At the same time, multi-family housing starts, especially for structures of 5 units or more, dropped precipitously. So what do we take out of this then...

We know that during the bubble building years into the middle part of this decade, a building frenzy occurred. Real estate investors of all sorts, new and old, became intoxicated by home price appreciation. House flipping is the best evidence of this; folks were buying homes with the sole intention of selling them soon after for a quick profit. A lot of this occurred without major improvements being made to the properties. At the same time, a new construction frenzy spanned both single family and multi-family structures. But when things go bad and building stops, we believe there's logical reason for bigger projects to take longer to rev up anew.

Real estate investment can be a costly game, as developers take on the burden of debt to finance construction projects. Unfinished and idle property continues to cost the developer with each debt financing payment and each day a unit goes unsold. At the same time, bankers bear a big portion of the blow when developers leave empty projects to sink into the mud, and loan contracts to sink with them. Coming back from that kind of loss is not so easy... old wounds take time to heal and capital even longer to raise again.

Meanwhile, foreclosure property floods the real estate market with supply. Vacant homes available at low cost present a problem to the large multi-family developer. So, with an unsettled marketplace, who in their right mind would start a new project now? Not many it seems... The numbers tell the story.

Monthly Change in Housing Starts

	Total Starts		Single Family		Multi Family
April	-12.8%		+2.8%		-42.2%

By "Multi-Family," we refer here to structures of 5 units or more.

The Multi-Family Construction business seems to us a close cousin to commercial construction. While the end-market is different, we suspect investors/developers in commercial construction think like multi-family developers. So, we suspect that as goes commercial construction, so goes multi-family development. We venture to say it's more of a profiteer's game, whereas home building may have a more solid foundation. We also suspect that developers of single family homes expanded their businesses in the bubble years to include multi-family, and with the bursting of the bubble, contraction of that effort was likely first priority. Finally, when demand for housing wanes, it's logical that large housing structure blue prints be kept shelved.

The point of the article is to direct your attention to the growth in single family starts. It likely represents the ground bursting of another green shoot, and perhaps one you missed because of the impact multi-family starts had upon the overall results.

Please see our disclosures at the Wall Street Greek website and author bio pages found there.

Breaking News: Pakistan Bombing & Korean War Threat Drive Trade

Visit the front pages of Wall Street Greek and Market Moving News to see our current coverage of breaking news, economic reports and financial markets.


While we can prepare for scheduled economic reports and corporate earnings news, the market must handle whatever comes its way. Often times, unanticipated events like today's breaking news dictate the pace of trading.

(Tickers: KEF, KF, MAKOX, DLTR, CBRL, DIA, SPY, QQQQ, NYX, DOG, SDS, QLD, TTWO, AEO, AZO, BWS, CHS, DSW, ZLC, TIVO, JAS).

Breaking News: Pakistan Bombing & Korean War Threat

While the impact of these two events will undoubtedly prove more important to Asian markets than the US in the near-term, our market will not overlook it either as it considers long-term global factors. After all, green shoots have an awful hard time growing within a forest fire.

Geopolitical Factors

Pakistan Ablaze

A suicide bomber employed the use of a vehicle to explode a massive bomb in Lahore, Pakistan. The bomb was strategically detonated outside Lahore's police headquarters and Pakistan's spy agency, the ISI. Four gunmen reportedly exited the vehicle before the explosion and began shooting, before finally being subdued. It is suspected that the attack was in response to the Pakistani government's initiative against Taliban in the Swat Valley. At least 23 people are reported dead, but the fear this terror induces, and the concern it raises, will undoubtedly do more damage to the stability of Pakistan's government and its economy. Tensions will also likely heighten between it and India as speculation runs wild. Terrorists know exactly what they do when they light brush fires near powder kegs.

North Korea Threatens War

The renewed belligerence from North Korea appears well-planned, and its commitment to peace highly questionable. The North's reversion from negotiations, and subsequent aggressive progression seem like logical sequence of events, had the latter been planned before the former was initiated. The schedule of events allowed the North to test a more powerful nuclear weapon successfully without pressure from the west. Since the test, it has guarded itself with shows of strength, launching missiles of all sorts, and it now threatens to respond to ship boarding with broad war against its Southern brother. This nonsense must end, and that is best accomplished from inside North Korea.

Asian Market Reaction

Asian market reaction was locally contained. South Korea's KOSPI Index fell 0.73%, while its KRX 100 declined 0.54%. Pakistan's Karachi 100 Index improved modestly, rising 0.17%. We're unclear still as to whether the exchange was closed or not on terror concern or market panic. Reaction was so well contained that shares across broader Asia enjoyed a superb trading day. India's BSE Sensex 30 climbed 3.83%; Hong Kong's Hang Seng soared 5.26%; and Japan's NIKKEI 225 rose 1.37%. What happens in the days ahead, as the world contemplates longer term concerns in the Korean Peninsula and within volatile Pakistan, is another story.

Scheduled Economic Data

ICSC Weekly Same-Store Sales

We got one right when we said in this week's copy of "Week Ahead" that weekly sales seem to have reached a critical point, where stabilization is near inevitable. Population growth and the consuming nature of our economy set a floor that we seem to have finally reached. Same-store sales rose again this week, recovering from last week's modest dip.

Week Ending

Weekly Change

Yearly Change

May 23

+0.8%

+0.5%

May 16

-1.2%

-0.3%

May 9

+0.3%

+0.5%

May 2

+0.3%

+0.5%

April 25

-0.7%

-1.7%

April 18

-0.4%

-0.1%

April 11

+0.8%

-0.4%

April 4

+0.6%

-0.3%

Mortgage Activity

Thanks to a sharp bump in contracted 30-year fixed rate mortgages, to 4.81%, from 4.69% the week before, mortgage activity fell off. The Market Composite Index produced by the Mortgage Bankers Association dropped by 14.2% on a seasonally adjusted basis. Refinance activity especially suffered, as the refi index dropped 18.9%. There was a bit of good news for the optimists to chew on, however, as Purchase Applications increased 1.0% despite the rate rise.

Existing Home Sales

April's Existing Home Sales Report is due at 10:00 a.m. The chart for existing sales resembles many others, and the common message seems to point toward stabilization. Bloomberg's survey of economists shows a consensus forecast for an annual pace of 4.67 million sales in April, matching against a rate of 4.57 million in March.

We expect the EIA's Petroleum Status Report will be pushed to Thursday at 10:00 AM. Jim Chanos, of short hedge fund fame, will key the Ira Sohn Research Conference in New York.

Sharp is scheduled to update shareholders on its mobile phone plans, while Sanyo releases its new digital camera lines. The EPS schedule highlights news from American Eagle (NYSE: AEO), AutoZone (NYSE: AZO), Brown Shoe (NYSE: BWS), Charming Shoppes (Nasdaq: CHRS), Chico's FAS (NYSE: CHS), Coldwater Creek (Nasdaq: CWTR), Cracker Barrel (Nasdaq: CBRL), Dollar Tree (Nasdaq: DLTR), DSW, Inc. (NYSE: DSW), Jo-Ann Stores (NYSE: JAS), Polo Ralph Lauren (NYSE: RL), Staples (Nasdaq: SPLS), Star Bulk Carriers (Nasdaq: SBLK), TIVO (Nasdaq: TIVO), Zale Corp. (NYSE: ZLC) and more.

Please see our disclosures at the Wall Street Greek website and author bio pages found there.

Capesize Rates May Be Extended

Visit the front pages of Wall Street Greek and Market Moving News to see our current coverage of economic reports and financial markets.

(Tickers: CPSL, X, RS, GSI, AKS, SEA, EGLE, GNK, DSX, NAT, SINO, PRGN, XSEAX, DIA, SPY, QQQQ, NYX, DOG, SDS, QLD, EWZ, XBZLX, BZF, PXI, SNP)

Miral Shipping Freight Market Report

Authored: May 22, 2009

Capesize Rates Extended - Pushed by Chinese Demand for Iron Ore

During the last two weeks, the freight market has been moving higher every day, and accelerating through most of this past week. Capesizes have been leading this rally, breaking the $40,000 per day barrier on the 21st, and crossing the $45,000 per day timecharter average. The trend-line has clearly broken through resistance levels set back in February of this year. Panamaxes and Handys have now started to pull back from their recent highs - they also seemed to have broken through resistance earlier in the week, but not demonstrably so.

As has been the case with most such rallies, China has been the determining factor. Iron Ore movements have increased from Brazil, as steel mills and traders have been taking advantage of lower iron ore and freight prices to stock up on higher quality ores. This has led to more vessels being fixed and even delays at certain loading ports, thereby further pushing up rates. However, stockpiles in China are widely reported to have neared or exceeded 100 million tons, and some curbs in bank lending and speculation are rumored. Therefore, some near-term pull back in demand, and consequently, Capesize rates is possible.

Panamaxes and smaller vessel types have benefited from the increased ore / minerals trade, and also from strong demand for grains in the Atlantic and to Asia.

Although technical indicators have broken out on the upside, there is also plenty of data that points to demand for vessels slowing in the near and medium term. Taken together, it is possible for a few more days of gains, but risk is increasing for a correction.


Please see our disclosures at the Wall Street Greek website and author bio pages found there.

Week Ahead: Green Shoots or Shenanigans?

Visit the front pages of Wall Street Greek and Market Moving News to see our current coverage of economic reports and financial markets.

Our latest copy of "The Week Ahead," carries a notable theme. Our study of the economic data and economists' forecasts offers interesting discovery. Economists seem unsure of the sustainability of recent "green shoots," or signs of economic life. We have taken note of consensus forecasts not far separated from recent economic results. This seems to imply that economists may fear premature green shoot sprouting that could die off at the first frost. In that case, the shoots could prove economic shenanigans.

(Tickers: TGT, MSFT, GSK, GOOG, STT, TTWO, DLTR, CHS, AEO, JNJ, HNZ, DELL, COST, TD, TIF, DIA, SPY, QQQQ, NYX, DOG, SDS, QLD)

Week Ahead

Monday

Markets in the US were closed for Memorial Day, but they stayed open almost everywhere else, except in the UK. North Korea's first nuclear weapon detonation in three years sent most of Asia lower. However, Japan's NIKKEI 225 advanced after the Bank of Japan published its monthly economic report and noted the possibility for growth as early as this quarter. The BOJ said the recession may be almost over. Europe moved modestly higher on the day, likely benefiting from the good news emanating from the world's second largest economy.

Tuesday

Microsoft (Nasdaq: MSFT) will unveil its new Internet search engine at a digital technology conference thrown by the Wall Street Journal. We hear the new engine is going to be called, "bing." Is that as in bada bing? Whatever they call it, we expect it will prove a decent tech match up to Google (Nasdaq: GOOG). The problem is that stealing market share in search is not as easy as it use to be. Google has smartly embedded itself, pun intended. Microsoft is going to make a go of it anyway, reportedly via an expensive marketing campaign priced at $80-$100 million. That's about four times Google's total spend for 2008.

US business gets back to business on Tuesday morning. The S&P Case Shiller Home Price Index leads off the scheduled news flow at 9:00 a.m. The HPI measures the month of March this time around (June 1st is a week away)... In any event, we expect prices fell in March and the dinosaurs ruled the earth. Prices were down nearly 19% year-to-year, as of February. Still, imagine if all the news was three months old... Maybe we're currently engaged in war with North Korea and we don't even know it!

The Conference Board is set to release its latest reading of Consumer Confidence at 10:00 a.m. EDT. Consumers have gained courage as those notorious green shoots have sprouted about and stocks have born fruit. It helps to see your pension plan actually gained in value... Imagine what a gain in housing value might due for spending... When that happens, confidence will return to more normal levels. April's confidence metric jumped to 39.2 (not harrowing heights mind you), from 26.0 in March. Economists are looking for a further climb to 43.0 for May, according to Bloomberg's survey.

State Street's Investor Confidence Index is due for release at 10:00 as well. State Street (NYSE: STT) measures the actual levels of risk investors are carrying in their portfolios. A few months ago, holding stocks at all was akin to playing Russian roulette on the risk barometer. Last month, the measure jumped to 79.6, from 70.0.

The day's earnings schedule highlights news from Borders Group (NYSE: BGP), Canadian Solar (Nasdaq: CSIQ), Take-Two Interactive (Nasdaq: TTWO), Bank of Montreal (NYSE: BMO), Cellcom Israel (NYSE: CEL), China Mass Media (NYSE: CMM), Donaldson (NYSE: DCI), eLong (Nasdaq: LONG), LGL Group (AMEX: LGL), Origin Agritech Ltd (Nasdaq: SEED), Rediff.com (Nasdaq: REDF), Tata Communications (NYSE: TCL), Terremark Worldwide (Nasdaq: TMRK), Versant (Nasdaq: VSNT) and more.

Wednesday

The Bank of Japan will publish the minutes of its April policy meeting, and that news will greet you first thing on Wednesday morning. No matter what is said, Japan's just published economic report trumps this older information.

The International Council of Shopping Centers will push its weekly same-store sales report back a day due to the holiday. Based on last week's report, sales reverted to their old ways in the week ended May 16. It was an unfortunate result, after the data tracker had noted two consecutive weeks of year-over-year growth. Even so, last week's decline was just 0.3% on a year-to-year basis. The bottom seems to be in for weekly sales (based on a thumbnail sketch).

The Mortgage Bankers Association may report its data on Wednesday as usual (not 100% sure on this one). Otherwise, look for the Mortgage Activity Report on Thursday this week. For the last reported week of May 15, the MBA's Market Composite Index increased 2.3% on a seasonally adjusted basis. Higher refi activity was partly offset by lower purchase applications. The contract interest rate on contracted 30-year fixed rate loans fell by 7 basis points. There may be signs of life in real estate, but certainly not much living on the housing front.

April's Existing Home Sales Report is due at 10:00 a.m. The chart for existing sales resembles many others, and the common message seems to point toward stabilization. Bloomberg's survey of economists shows a consensus forecast for an annual pace of 4.67 million sales in April, matching against a rate of 4.57 million in March.

We expect the EIA's Petroleum Status Report will be pushed to Thursday at 10:00 AM. Jim Chanos, of short hedge fund fame, will key the Ira Sohn Research Conference in New York.

Sharp is scheduled to update shareholders on its mobile phone plans, while Sanyo releases its new digital camera lines. The EPS schedule highlights news from American Eagle (NYSE: AEO), AutoZone (NYSE: AZO), Brown Shoe (NYSE: BWS), Charming Shoppes (Nasdaq: CHRS), Chico's FAS (NYSE: CHS), Coldwater Creek (Nasdaq: CWTR), Cracker Barrel (Nasdaq: CBRL), Dollar Tree (Nasdaq: DLTR), DSW, Inc. (NYSE: DSW), Jo-Ann Stores (NYSE: JAS), Polo Ralph Lauren (NYSE: RL), Staples (Nasdaq: SPLS), Star Bulk Carriers (Nasdaq: SBLK), TIVO (Nasdaq: TIVO), Zale Corp. (NYSE: ZLC) and more.

Thursday

Markets will be closed in China, Hong Kong and Taiwan on Thursday - and maybe North Korea too, if the tiny nuissance continues to push the buttons of its massive neighbors. What would people trade in North Korea anyway... Kim Jong-Il trading cards and captive Japanese? The schedule is heavy here in the States. Two economic reports will greet investors before the market opens.

At 8:30, look for the Durable Goods Orders data for April. Bloomberg's consensus of economists forecasts flat order activity, following the -0.8% decline in March. Ex-Transportation, orders declined by 0.6%. No real surprises here, but another green shoot can never hurt. The market is seeking confirmation that early shoots have not been premature bloomers that will die off with the next frost.

Also at 8:30, the regular Weekly Jobless Claims data is due. There's been some moderation in the number, but jobs have continued going away persistently and at a troublesome pace. Bloomberg's consensus of economists is looking for this week's report to show 635K new benefits filers, which would compare against last week's 631K notation. We're working up to another harsh monthly Employment Situation Report next week. 9+% unemployment is a certainty.

At 10:00 a.m., look for the New Home Sales data for April. This data has also signaled stabilization of late, but there's not a scent of recovery yet. At least homebuilder sentiment has improved from suicidal to deep depression. Economists forecast the annual pace of sales could measure 360K in this latest check, compared to the March pace of 356K.

The EIA's Petroleum Status Report will probably be moved to Thursday from its usual Wednesday, and the Natural Gas Storage Report could go to Friday. Last week's Petroleum data showed a crude oil inventory draw of 2.1 million barrels. Oil had been on the rise anyway, but with a rare draw from storage, the black commodity had all the more reason for it. We surpassed the $60 mark on crude, but that's very likely due to its inverse relationship with the dollar and dollar softness.

At 5:45 p.m., Dallas Fed President Richard Fisher will address the Washington Association of Money Managers on the topic of the economic crisis. Keeping with Washington, President Obama will hook up with Palestinian Authority President Mahmoud Abbas on Thursday. "The Greek" sees the greatest risk regarding Obama and foreign policy as the man's honest nature. He does not seem capable of keeping a secret, and this may lead to an unfortunate loss of initiative to Iran.

Target's (NYSE: TGT) annual shareholders' meeting could get ugly with Bill Ackman's Pershing Square Capital seeking board seats. Heinz (NYSE: HNZ) will hold its analyst meeting, where it is expected to provide its outlook for fiscal 2010. The FDA may offer important findings on Johnson & Johnson's (NYSE: JNJ) computer-assisted sedation system that might help limit Anestesiologist error and maybe even malpractice, we speculate.

The earnings schedule highlights news from Costco (Nasdaq: COST), Dell (Nasdaq: DELL), Angeion (Nasdaq: ANGN), Arctic Cat (Nasdaq: ACAT), Bank of Nova Scotia (NYSE: BNS), Big Lots (NYSE: BIG), Canadien Imperial Bank of Commerce (NYSE: CM), Esterline Tech (NYSE: ESL), Fred's (Nasdaq: FRED), FreeSeas (Nasdaq: FREE), Frontline (NYSE: FRO), Genesco (NYSE: GCO), J. Crew (NYSE: JCG), Jackson Hewitt Tax Service (NYSE: JTX), Jamba Juice (Nasdaq: JMBA), Marvell Tech (Nasdaq: MRVL), Mentor Graphics (Nasdaq: MENT), Munro Muffler (Nasdaq: MNRO), Novell (Nasdaq: NOVL), Omnivision (Nasdaq: OVTI), Perry Ellis (Nasdaq: PERY), Sanderson Farms (Nasdaq: SAFM), Shoe Carnival (Nasdaq: SCVL), Sonic Solutions (Nasdaq: SNIC), Wet Seal (Nasdaq: WTSLA), Toronto Dominion (NYSE: TD), Trina Solar (NYSE: TSL) and more.

Friday

The first quarter GDP revision will headline the Friday morning news. Economists are looking for an improvement off the first reporting, to GDP contraction of 5.5% (6.1% first time around). Corporate Profits for Q1 will also be made available with the GDP data as usual.

At 9:45, the Institute for Supply Management-Chicago will report its Business Barometer Index. The Chicago area measure is expected to show modest improvement to 42.0, from 40.1 in April. A reading below 50 still signifies economic contraction, but before we heal, we must stop bleeding.

Look for the Reuters/University of Michigan Consumer Sentiment reading at 9:55. Again, economists seem unsure, forecasting a modest improvement for the confidence measure, to 68.0, from 67.9 at last check. Farm Prices are due for report at 3:00 p.m.

European Central Bank President (ECB) Jean-Claude Trichet will discuss the role of central banks in times of economic crisis. An FDA panel will review GlaxoSmithKline's (NYSE: GSK) leukemia drug Arzerra.

Friday's EPS schedule includes news from Tiffany (NYSE: TIF), Graham (AMEX: GHM), Madeco S.A. (NYSE: MAD), National Bank of Greece (NYSE: NBG), Royal Bank of Canada (NYSE: RY) and a few more.

On Saturday, Treasury Secretary Geithner heads to China, which should be real interesting considering his "currency manipulation" commentary. I just hope he does not take his laptop with...


Please see our disclosures at the Wall Street Greek website and author bio pages found there.

Guantanamo Bay Prison - Closing Gitmo

Visit the front pages of Wall Street Greek and Market Moving News to see our current coverage of economic reports and financial markets.

The debate over whether to close Guantanamo Bay Prison (Gitmo) or not has gained the attention of our entire nation. The reason the subject has become such a hot button issue is due to fear and misunderstanding more than substantial concern. We hope this article helps to clear things up.

(Tickers: DIA, SPY, QQQQ, NYX, DOG, SDS, QLD, NYSE: ATK, Nasdaq: ASEI, Nasdaq: SIGA, NYSE: RTN, NYSE: LMT, NYSE: COL, Nasdaq: BCRX, NYSE: TDY, NYSE: GD, NYSE: NVS).

Guantanamo Bay Prison - Closing Gitmo

President Obama made a campaign promise to stop torture and to close the Guantanamo Bay Prison Camp (Gitmo). The two issues are not one in the same though. Our nation is no longer waterboarding detainees for information. The closing of the prison camp is more for the purpose of putting to bed the errors of another era than anything else. As Obama states, Gitmo now serves as a powerful marketing tool for al-Qaeda's recruitment efforts.

If Guantanamo closes, prisoners will be transferred either to "Supermax Prisons" within the United States or to a new facility. These supermax detention centers have never seen a successful escape attempt, so you can sleep safely. Because of concerns that terrorists could influence other prisoners, and maybe serve to recruit an increasing number of home grown terrorists, the country may create a new special location here in the US for this purpose. Otherwise, we expect (and hope) these prisoners of war will be isolated from the general prison population.

The moving of these enemies of the state to US territory will likely help in their progress from a state of legal limbo to one more befitting of our Declaration of Independence, Bill of Rights and Constitution. Though the men in question are foreign born citizens, if we truly hold those truths to be self-evident, then we will try them fairly in a court of law. Human rights, after all, should always trump national interests. Otherwise, we have no right to dictate righteous cause to foreign nations while we live a lie.

There is some concern that fair trial might lead to the freedom of some of these men. In a court of law, some detainees may be found innocent or deemed to have served due time. A new question then arises as to where to set these potential threats free. After all, many already released Gitmo prisoners have proven themselves to be long-lasting threats to our nation. Besides, simply spending time in Gitmo could create a hardened terrorist where one never previously existed.

If we ask other nations to accept these hardened men, must we also accept them into our own country? I believe that since we represent the greatest target of terror, we should not be held up to the same repatriation standard.

If the detainees are released back to their homelands, they may be placed into situations where refusal to participate in the old life puts their own lives in danger. In any event, the detainees may be more likely to reenter (or enter) into a life of terror if sent home.

The US Senate voted to kill funding meant for the closure of Guantanamo at first pass. Feeling the concern of constituents, the Congressmen could not pass such legislation in good conscience without a more detailed plan regarding what the Administration will do with the detainees thereafter.

In another country and perhaps another time, these men may not have had lives for us to debate what to do with now. So, despite our failures, it seems we have found some wisdom with age. Men who have sought to do our great nation great harm may even eventually realize what a fair shake they received in the end. We owe it to ourselves to give them that. In cases where it is deserved, justice will still be served.


Please see our disclosures at the Wall Street Greek website and author bio pages found there.

Financial News Preview - Expect Light Volume

Visit the front pages of Wall Street Greek and Market Moving News to see our current coverage of economic reports and financial markets.

The day before a three-day weekend kicks off is typically a slow one on Wall Street, especially during the summer months. For the few bankers, analysts, traders and portfolio managers left standing, the day offers a quiet office and a chance to catch up on things left behind. For most on Wall Street and Main Street, however, Friday offers opportunity to get a relaxing weekend started early. A good portion of businesses will let employees leave the office early today, if they have not taken the day off already. This makes for a low volume trading day in the markets, and the economic slate is accommodatingly blank. The financial news wire is likewise quiet.

(Article interests: SHLD, BAIRY.PK, DIA, SPY, QQQQ, NYX, DOG, SDS, QLD, XLF, IWM, TWM, IWD, SDK).

Financial News Preview

The stock market is open all day today, but the bond market closes at 2 p.m.

Bank of Japan Monetary Policy Decision

The cautious Bank of Japan has little room to play with its interest rates, and so the decision to leave rates unchanged came as no surprise to investors this morning. The BOJ kept its unsecured overnight call loan rate unchanged at 0.1%. However, the BOJ offered some reason for joy, as it noted the situation in Japan was deteriorating at a slower pace. This came in stark contrast to last month's dire notation from the bank. The NIKKEI 225 still fell by 0.4% today, but outperformed other major Asian markets. The BOJ also declared it would accept certain foreign government bonds as collateral in its open market operations.

Bernanke & Obama Go to School

Federal Reserve Chairman Bernanke will address graduating lawyers at Boston College Law School, while President Obama delivers the commencement address to the graduating class of the U.S. Naval Academy in Annapolis.

German Elections

Germany holds presidential elections on Saturday. As pressure builds on European economies and summer warmth brings the unemployed to the streets, expect pressure to likewise build for the turnover of several governments across the pond.

Corporate News Drivers

The day's very light earnings schedule highlights reports from Sears (Nasdaq: SHLD), British Airways (Nasdaq: BAIRY.PK), Hutchison Telecommunications (NYSE: HTX), Indigo Books (IDG.TO), Met-Pro (NYSE: MPR), Mobile Telesystems (NYSE: MBT), Yingli Green Energy (NYSE: YGE) and a few more.


Please see our disclosures at the Wall Street Greek website and author bio pages found there.

Business News: Philly Focus

Visit the front pages of Wall Street Greek and Market Moving News to see our current coverage of economic reports and financial markets.

We have a full slate of economic reports to digest within today's business news. The data highlights the state of the overall economy, employment situation, manufacturing and muni-bonds. There's also an underlying Philly theme to today's business news, with the Philadelphia Fed getting busy.

(Article interests: NYSE: ABK, NYSE: MBI, NYSE: BA, NYSE: ARO, BKS, CRM, BKE, LDK, ROST, PLCE, DIA, SPY, QQQQ, NYX, DOG, SDS, QLD)

Business News

Weekly Initial Jobless Claims

For the week ending May 16, weekly jobless claims dropped modestly to a still distressing 631K, from a revised 643K figure from the week before. For the eternal optimists among us, this week's data proved better than the economists' consensus, which predicted a measure of 645K new claim filers. The four-week moving average claims figure fell by 3,500 to 628,500. Hey, at least things are not deteriorating at a faster rate. I hear ya... that's like saying at least I'm not bleeding to death faster.

Leading Indicators

More than two months after the stock market turned positive, the Leading Indicators Report for April is expected to show an upturn when reported today. Bloomberg's consensus of economists forecasts a 1.0% improvement, which compares against the 0.3% decline posted in March.

Municipal Bond Help

The House Financial Services Committee will hear testimony as it considers guaranteeing variable-rate bonds and short-term notes issued by municipalities. It seems everybody wants to get their hand into the cookie jar, and the Fed is finally showing signs of concern that its currency is getting fat and credibility running thin. The group of grumbling Congressmen will also debate reinsuring under-insured bonds. The downgrades of MBIA (NYSE: MBI) and Ambac (NYSE: ABK) have left some of these securities partially naked.

Philly Fed Survey

"The Greek" is partial to all things Philly, but I have to concede the lead to New York today. The Philly Fed's General Business Conditions Index is due this morning at 10:00 a.m. Considering the New York Fed's Empire State Manufacturing Index improved dramatically for May, there's all the reason to expect a continuation of improvement from the Philly region. Last month, Philly noted a better than 10 point improvement to -24.4, which still signifies economic contraction. Bloomberg's consensus of economists forecasts Philly might improve to -20.0 this time around. Still, like Rocky, the Philly underdog might surprise with a better turn out.

Natural Gas Report

The Energy Information Administration produces its Weekly Natural Gas Storage Report today at 10:30. Last week's report, covering the period ending on May 8, showed a big build in storage (95 Bcf) from the previous week. In this recession stricken environment, natural gas storage levels are understandably far above the mark set last year at this time (+497 Bcf). Even more telling, gas levels are 374 Bcf above the five-year average. Unlike oil, which started higher as early as mid-February, natural gas pricing has only just begun drawing a positive trend line this month.

If you are wondering why so, well it most likely has to do with the global market for oil versus local market dominance for natural gas. It's no coincidence that the dollar topped out around the same time dollar-denominated oil began its recovery, and has been weakening parallel to oil's rise ever since. Also, signs and hopes for emerging market revival preceded America's green shoots, perhaps helping to lift oil ahead of Nat Gas.

Philly Fed President

Correcting our note from yesterday, Philadelphia Federal Reserve President Charles Plosser addresses a group of New York money men at 7:00 p.m. tonight.

Corporate News Drivers

Boeing (NYSE: BA) holds an investors' meeting, and the earnings schedule highlights Aeropostale (NYSE: ARO), Alkermes (Nasdaq: ALKS), Barnes and Noble (NYSE: BKS), Brocade Communications (Nasdaq: BRCD), GameStop (NYSE: GME), Gap (NYSE: GPS), Hormel Foods (NYSE: HRL), LDK Solar (NYSE: LDK), MF Global (NYSE: MF), Nordson (Nasdaq: NDSN), Ross Stores (Nasdaq: ROST), Salesforce.com (NYSE: CRM), The Buckle (NYSE: BKE), Children's Place (Nasdaq: PLCE) and several others.


Please see our disclosures at the Wall Street Greek website and author bio pages found there.

Premarket Business Summary - Washington Bonanza

Visit the front pages of Wall Street Greek to see our current coverage of economic reports and financial markets.

Another light economic slate is complemented by a busy day in Washington DC. The Treasury Secretary's appearances before Congressional committee always offer entertaining programming for C-SPAN fans. Today, we'll hear from Geithner, Volcker, the SEC and the Federal Reserve.

(Article interests: NYSE: TOL, NYSE: TGT, NYSE: BJ, NYSE: AFL, NYSE: SYK, DIA, SPY, QQQQ, NYX, DOG, SDS, QLD, XLF, IWM, TWM, IWD, SDK)

Premarket Business Summary

Geithner on the Hill

Treasury Secretary Geithner likely downs a handful of stomach soothers before heading up to Capitol Hill for TARP briefings. Today he'll discuss the progress, successes and failures of TARP before a publicity hungry group of Senators. The Senate Banking Committee will grill Geithner, today's sacrificial lamb, for the sake of winning over angry constituents at home. God bless anybody who has the constitution to take such a high profile government gig. I suggest you try to catch the TV or radio coverage of the firing line. I promise it will be worth the later questioning from your silly supervisor about where you were.

Volcker from the Rocking Chair

Paul Volcker's Economic Recovery Advisory Board meets to marinade meat for the Memorial Day government BBQ? The bright and learned group meets to likely talk over things like green shoots and shooting bank CEOs. There are a lot of topics to cover, Lord knows, but we suspect they'll focus discussion to their many varied views on where the economy lies and whether it may fall or rise again.

SEC on Better Boarding

The SEC will not be water boarding anyone... We hear your disappointment on that one... However, the new and improved corporate police will debate and discuss the viability of allowing shareholder nominations to corporate boards. The SEC seems to have higher priorities than this, as groups of shareholders and vying interests can already pressure companies. Meanwhile, rating agencies continue to issue ratings on companies that pay them for the grade.

Fed Meeting Minutes

The Fed releases its minutes from its late April meeting. You can find the notes at the Fed website at 2:00 p.m., and on a light day like this the news will get a thorough look through by the popular press. Be careful not to fall into the trap of news makers; don't let sensational coverage impact your long-term investment strategy.

Mortgage Activity Report

The Mortgage Bankers Association produced its Weekly Applications Survey early this morning. Today's data covers the week through May 15. The overall index rose modestly up 2.3%, driven by Refinance Index fuel (+4.5%), which was slightly offset by lower Purchase Activity (-4.4%). Behind the numbers, the average contract interest rate for 30-year mortgages decreased to 4.69%, from 4.76% the week before. Highlighting how soft new housing is these days, refinancing now encompasses 73.6% of total mortgage activity. Finally, the four-week moving average for the Market Composite Index (covering both Purchases and Refis) is down 6.4%.

EIA Petroleum Status

Later this morning, at 10:30, the EIA produces its regular Petroleum Status Report. Last week, crude oil inventories fell by 4.7 million barrels, but oil still got a lift thanks to the now passed Obama/Netanyahu summit; the recent OPEC production cut; a large gasoline draw from inventory; and those green shoots we've been talking about. We're thinking another big build here might now take a few points off oil in the short short-term.

Corporate News Drivers

Stryker (NYSE: SYK) and Aflac (NYSE: AFL) have analysts meetings scheduled for today. The earnings slate highlights reports from Toll Brothers (NYSE: TOL), Target (NYSE: TGT), BJ's Wholesale Club (NYSE: BJ) and Deere (NYSE: DE).


Please see our disclosures at the Wall Street Greek website and author bio pages found there.

Morning Business Report: Don't Let Housing Worry You

Visit the front pages of Wall Street Greek and Market Moving News to see our current coverage of economic reports and financial markets.

Today's Housing Starts report might worry you, but don't let it. While we'll offer more color in a later article, we provide enough reasoning here to limit errand morning selling. The day is a light one on the business news front, with a busy Washington session and a few important earnings reports.

Morning Business Report

ICSC Weekly Same-Store Sales Data

Week Ending

Weekly Change

Yearly Change

May 16

-1.2%

-0.3%

May 9

+0.3%

+0.5%

May 2

+0.3%

+0.5%

April 25

-0.7%

-1.7%

April 18

-0.4%

-0.1%

April 11

+0.8%

-0.4%

April 4

+0.6%

-0.3%

Last week, we authored an article implying a bottom in consumption might be developing, and that this would have to be a natural consequence eventually due to the size, growth and demands of our great economy. The ICSC data took a step back this week, but even in so doing, the -0.3% year-over-year decline is not so significant. I'm sticking to my view that there is a critical point where this solid block of shoppers will sink to, and it will sink no further thereafter. I'll go so far as to say we might see a rise in this week's results (posted next Tuesday), especially as things warm up on the east coast.

April Housing Starts

Yesterday's reporting of the Housing Market Index showed homebuilders are a little more prospective than expected, though still severely depressed. The National Association of Home Builders reading of sentiment showed the index moved to 16, versus economists' consensus for 14.

Today, Housing Starts for April came in well short of expectations, but the data is deceiving. I'll save the majority of the gems of my insight on this subject for a later article. Still, I want you to focus on the difference in multi-family starts versus single family home starts, which rose. I believe I understand why the decrease in multi-family, and I'll share those thoughts later today. For now, don't let this data lead you to panic.

The pace of housing starts sank to an annual pace of 458K in April, short of the consensus view for a pace of 540K, as per Bloomberg's survey of economists. March results were revised up to 525K, from 510K initially reported. Building Permits fell to 494K, down from the revised March figure of 511K.

State Street Investor Confidence Index

State Street's (NYSE: STT) Investor Confidence Index is due out at 10:00 a.m. The index measures actual levels of risk in investment portfolios, and is not a survey of investors' sentiment. The last measure in April showed improvement in the Index to 79.6, from 70.0 the month before. The logic behind this is simple, herd mentality. As the market rises, more and more of the herd follows the pack and takes on risk. We've seen two months of brilliant rise through April. This index will not move the market; it's a lagging indicator.

House Financial Services Committee Examines Corruption

The House committee gets busy today, covering corruption in financial institutions in its morning session and the trouble with the rating agencies in the afternoon. Meanwhile, the Senate is expected to vote today on credit-card reform (a.k.a. the Credit-Card Bill of Rights).

Gary Stern Address

Minneapolis Fed President Gary Stern is scheduled to speak at 1:15. Comments from Fed representatives can sometimes offer clear market driving information, and often offer insight into the mind of the collective Fed. What these individual addresses always offer is a look inside the individual speaker's mind.

EPS Report Highlights

Look for earnings news from Home Depot (NYSE: HD), TJX (NYSE: TJX), Medtronic (NYSE: MDT) and Hewlett-Packard (NYSE: HPQ) among many.


Please see our disclosures at the Wall Street Greek website and author bio pages found there. (Article interests: AMEX: DIA, AMEX: SPY, Nasdaq: QQQQ, NYSE: NYX, AMEX: DOG, AMEX: SDS, AMEX: QLD, AMEX: XLF, AMEX: IWM, AMEX: TWM, AMEX: IWD, AMEX: SDK).