Wake Up You Jobless Fools!

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

(Tickers: NYSE: MVL, NYSE: DIS, Nasdaq: SCHL, NYSE: RHI, NYSE: KFY, NYSE: MAN, NYSE: MWW, NYSE: DIA, NYSE: SPY, Nasdaq: QQQQ, NYSE: DOG, NYSE: SDS, NYSE: QLD)

Outside of all the year-end retrospective news reviews, and year-ahead idealistic and conscientious considerations, the market still has one day of data to digest before it can call it a decade. A regular economic report highlights the wire today, one which offers surface dwellers reason to freeze to death. The cautious hermit types might do well, because below the surface of today's jobless claims report is something important to consider. It might just save you a foolish dive into equity euphoria at perhaps precisely the wrong time.

Wake Up You Jobless Fools!

Weekly Jobless Claims

Thursday's regular Unemployment Claims Report offered the quick-actors/little-thinkers some good news today. Weekly Initial Jobless Claims came in at 432,000 for the week ending December 26, down from the revised prior week count of 454K. Economists were looking for a meganormous 460K new benefits filers! And get this: the four-week moving average on this mortifying data point also improved 5,500, to 460,250. The insured unemployment rate now even stands at just 3.8%, and to imagine, it was as high as 3.9% just a few weeks ago! So pop the champagne corks early right? It's time to celebrate no? Nada!

"Remember... when you were swimming in good times full of fat stocks, easy money, free homes and cars, and enjoying a generally drunken state?"

Sorry for pooping on your party again… Remember we did that years ago when you were swimming in good times full of fat stocks, easy money, free homes and cars, and enjoying a generally drunken state? Remember, you did not want to hear about it then; the insane idea that many of your banks would go under and that times would change. Still, we faced the lynch mob and told you the truth. And while labeled an "Armageddon Analyst" (we liked it) by some of those folks who wanted to make a few more pence off ya, we accepted our role as the party pooper you might someday listen to. Some of you are still reading, and we have had our off-days since, so we thank you. Don't get me wrong though, we have hardly ever lost our prescient touch. However, we have scribbled a bland paragraph from time to time, and have shared a few less-than-intriguing ideas. (Cue theme from Rocky I here)

BUT WE'RE BACK! AND WITH A VENGEANCE!

We are determined to remind you why you started reading "The Greek" in the first place. If you have been following us over recent weeks, we are guessing you have already sensed it. You caught a whiff didn't you? That's not a dead mouse you're sniffing; it is rather the return of truth and insight! AND PASSION!

So were you excited this morning along with all the foolish never-did-their-homework types? Were you sure of swift improvement in the employment picture? After all, ONLY 400K plus folks filed for first time unemployment benefits, meaning they just lost their job. That's great news right?!? No it's not! Wake up!!!

"It's the week before Christmas, and all through the house, not a creature was stirring, not even the turk."

It's the week before Christmas, and all through the house, not a creature was stirring, not even the turk. Now, be careful, because by "turk" we do not mean our sometimes roughhousing neighbors to the East of my Greek ancestral realm (shout out to Tolga the "Happy Helmet"). Nada! We are using American football slang, be-ist the season of sizzling pigskin. The turk is the guy who tells you you've been cut from the team. Nobody really likes him, and he's generally to be avoided.

Who fires anyone a few days before the holidays!? Well maybe Scrooge, but he was fictional! Sometimes you have to remind Americans under 40 of that, given how pervasive Disney (NYSE: DIS) and Marvel (NYSE: MVL) have become, and to think, they're now combining their mind-swelling powers… If they add Scholastic's (Nasdaq: SCHL) Harry Potter, we will truly be facing the Legion of Doom in the next decade!

Anywho, nobody fires anybody before Christmas! No, they wait until you are about to go on vacation, because then, they are certain you will just decide to go, rather than returning to your cubicle the next day with a machine gun. Usually they are right too… and you might even decide not to sue them for wrongful (your expletive here).

Anyway, everyone and anybody in their right mind waits at least until January 2nd to break your heart and the collective legs of your Little Tim Tim and Sally Sue. So let's just wait and see until mid-to-late January before we form an opinion on how well the labor market is holding up. Now, don't get me wrong; we expect employment to improve. After all, somebody has to pick up the trash, and the government can keep printing worthless dollars to pay people to make windmills out of paper cartons at least until next term.

Oh, and Happy New Year if I don’t scribble ya sooner…By the way, have you heard about Apophis?


Editor's Note: Article should interest investors in: Robert Half Int'l (NYSE: RHI), Manpower (NYSE: MAN), Monster World Wide (NYSE: MWW), Korn Ferry Int'l (NYSE: KFY) and anybody cynical about losing their job, or drinking eggnog.

Please see our disclosures at the Wall Street Greek website and author bio pages found there. This article and website in no way offers or represents financial or investment advice. Information is provided for entertainment purposes only.

Apophis

The Asteroid Apophis Is So Much Cooler Than Japan's Economic Plans

Visit the front page of Wall Street Greek to see our current coverage of Wall Street, economic reports, real estate, antiquities, alternative investments, global financial markets and an apocalyptic asteroid named Apophis that is on crash course with a planet shaped like the giant head of the Japanese Prime Minister.

(Relative Tickers: NYSE: JEQ, NYSE: JOF, Nasdaq:IIJI, Nasdaq: VGAAX, Nasdaq: IJIIX, Nasdaq: DFJSX, Nasdaq: PJSIX, NYSE: FXY, NYSE: JYF, NYSE: DIA, NYSE: SPY, Nasdaq: QQQQ)

Apophis

Cooler Than Japan's Plan

Under political pressure, Japan's fledgling government published some economic goals today that it will apparently work diligently to solidify by June… Did the new Japanese PM never hear the phrase, "haste makes waste?" In any event, Mr. Yukio Hatoyama is targeting 2% annual GDP growth over the next ten years, perfectly fitting the new decade with his forecast. Nice touch… we give him an "A" for effort, but the growth target set forth is also a logical match for normal population growth, and it's a conservative yet inflation conscious target as well. But for a nation where growth has been absent for three years, we guess that will do. The government sees 1.4% GDP expansion in 2010.

China is breathing up Japan's GDP neck. After surpassing Germany at the last straight-away, China could soon become the second largest economy in the world in passing Japan. That ranking ignores the Europeans of course, who cheat; and fearing an inconsequential future, have since declared themselves a united economy. Cheesy Europeans…

Anyway, the Japanese are keenly aware of, and perhaps a tad jealous of, their Chinese counterparts. As a result, Yuki says Japan will seek to lessen its dependence on the old country, as it is known to Japanese teenagers - the American market to the rest of us. In fact, Japan will embrace its historical foe in China and look toward setting up an Asian free-trade zone/union by 2020.

Japan's expansionary plans are targeting those trendy sectors all the cool countries like, including alternative energy and heath care. Boring! Why can't someone be original already! Wait a second, I just read the Russians are planning to spend "several hundred million dollars" (spoken like Dr. Evil) to knock the asteroid Apophis off course, even though it's not supposed to hit the earth (according to NASA thugs).

Anyway, Japan thinks its new ideas will create 4.2 million jobs over the same time span. I guess that's cool too.

Editor's Note: Article should interest investors in NYSE: JEQ, NYSE: JOF, Nasdaq:IIJI, Nasdaq: VGAAX, Nasdaq: IJIIX, Nasdaq: DFJSX, Nasdaq: PJSIX, NYSE: FXY, NYSE: JYF, NYSE: DIA, NYSE: SPY, Nasdaq: QQQQ


Please see our disclosures at the Wall Street Greek website and author bio pages found there. This article and website in no way offers or represents financial or investment advice. Information is provided for entertainment purposes only.

Stock News 12-30-09

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

(Tickers: Nasdaq: CGEN, NYSE: MGM, NYSE: DAL, NYSE: AET, NYSE: CBY, NYSE: KFT, NYSE: HSY, NYSE: GJM, OTC: JALSY.PK)

Today's market-moving stock news includes reports on Compugen, Aetna, GMAC, MGM Mirage, Japan Airlines, Kraft Foods and Cadbury. These "stock news" briefs will be a new regular column for Wall Street Greek. Besides providing the stock news, we hope our expert stock analysis from a seasoned Wall Street analyst will prove helpful in your daily understanding.

Stock News

Compugen

Compugen (Nasdaq: CGEN) raised $19 million in a sale of 4.1 million shares at an average price of $4.91. The offering extended from November 13 through this past Tuesday. Fund are geared toward "general corporate purposes," which is legalese that allows the company to use the funds in any manner and limits lawsuit concerns. We wonder though if "general corporate purposes" means paying bonuses and failing shareholders these days? The company hopes to develop more collaborative agreements in order to reach cash-flow break-even by 2011. CGEN shares were up 7.6% at hour of publishing, and that likely also has something to do with the buzz the company created on Monday when it declared it had discovered a drug target for multiple epithelial tumors, also known as carcinomas. The stock jumped 26% on that day alone.

MGM Mirage

An analyst at Oppenheimer, David Katz, raised his earnings and price target estimates for MGM Mirage (NYSE: MGM) today. The company provided data for its newest projects in Las Vegas and Macau, which included better margins than Katz anticipated. His price target was boosted to $9 from $8, but MGM already trades at about nine bucks and change. So, this is not a screaming "buy" based on this news, and the stock is down modestly on the day. The analyst rates the stock "Perform," and reportedly sees this news already priced in the shares.

Aetna

Aetna (NYSE: AET) said it expects to post a charge of up to $65 million in Q4, as it accounts for layoffs and other consolidation. In November, the company said it would cut 2% of its staff, roughly 625 jobs, with a similar number of cuts coming in 2010. Aetna shares were off about 2.4% at hour of publishing.

Japan Airlines (Delta, American)

Japan Airlines (OTC: JALSY.PK) shares are diving today, down 20% on intensifying fears the struggling airline is nearing bankruptcy. JAL is Japan's largest airline, and was recently being looked at by Delta (NYSE: DAL) and American Airlines, as the two American carriers consider Asian expansion.

Kraft Foods & Cadbury Plc

Kraft Foods (NYSE: KFT) is seeking a hostile takeover of British candy and chocolate maker Cadbury Plc (NYSE: CBY). On Wednesday, the UK Takeover Panel extended a deadline by which Cadbury was to disclose any new information about the bid. Cadbury now has until January 15 to do so, versus the previous January 12 cutoff. This will allow Cadbury to publish its "trading results" (we assume this translates to "earnings" in American English). Kraft still has until February 2 to get the approval of a majority of Cadbury shareholders, and until January 19 to revise its offer. Two other firms have reportedly made informal inquiries, including The Hershey Co. (NYSE: HSY) and Italy's Ferrero International SA.

GMAC

GMAC (NYSE: GJM) is likely to get another government handout to help it absorb mortgage loses, according to Reuters. The sum of $3.5 billion was reported by the news agency, and that would build upon the $12.5 billion GMAC has already taken. The rumor factored in lowering the cost of GMAC's debt default risk, and has the shares up 1.0% today. GMAC has had trouble raising capital on the private market, and the government's stress test indicated it would need about $11.5 billion. Still, the security's current price does not scream trouble, so the market seems near certain the government has GMAC's back.


Please see our disclosures at the Wall Street Greek website and author bio pages found there. This article and website in no way offers or represents financial or investment advice. Information is provided for entertainment purposes only.

Economic Reports 12-30-09

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

(Relative Tickers: NYSE: XOM, PTR, BP, RDS-B, CVX, TOT, COP, E, REP, PZE, ECA, MON, AGU, MOS, POT, AVD, DIA, SPY, NYX, Nasdaq: QQQQ)

Today's economic reports were few, and the market seems uninterested in the relatively good news we found in them. The Chicago Purchasing Managers Index showed improvement, and declared broad-based economic reasoning for it. Petroleum inventory continued to show draws in crude, gasoline and distillates, partly due to increased economic demand and partly due to seasonal demand.

Economic Reports

Chicago PMI

The most important economic report release of the day came from the Midwest. The Chicago Purchasing Managers Index offered a slew of good news. The Chicago area Business Barometer rose to 60.1 in December, up from 56.1 in November, and exhibited expansion in Production, New Orders and Order Backlogs; Employment improved, prices paid strengthened and lead-times increased.

Economists were stymied, as the consensus of gurus had been looking for moderation this month, to 54.9. Recall that readings above 50 signify expansionary activity, and this month's reading represents the third in a row of such gains. This Midwest economic measure seems to sway the argument for the side of economic expansionists, as recent regionally reported data was recently mixed from New York (weak) and Philadelphia (strong).

Petroleum Status Report

In another economic report release this morning, the EIA produced its Petroleum Status data. Crude oil inventory decreased by 1.5 million barrels in the week ended December 25. This comes after the prior week data showed a draw of 4.9 million barrels. Still, oil inventory remains near the upper limit of the average range for this time of year.

The economic report showed total Motor Gasoline inventory decreased by 0.3 million barrels last week (0.9 million the week before), as intensified holiday driving drove higher demand for the fuel. Still, gasoline demand is up 1.0% from the same period a year ago, illustrating economic improvement as well.

Distillate fuel inventories fell by 2.0 million barrels last week (3.1 million barrels week before), as seasonal demand for heating fuels increases with falling temperatures.

Farm Prices

The final economic report of the day comes when the Department of Agriculture publishes its Farm Prices data at 3:00 p.m. The Mortgage Bankers Association is taking the week off, so look for its weekly mortgage applications survey next week, when it will report on last week's data and the current period simultaneously.

Editor's Note: Article should interest investors in: Exxon Mobil (NYSE: XOM), PetroChina (NYSE: PTR), BP Plc (NYSE: BP), Royal Dutch Shell (NYSE: RDS-B), Chevron (NYSE: CVX), Total SA (NYSE: TOT), ConocoPhillips (NYSE: COP), Eni SpA (NYSE: E), Repsol YPF SA (NYSE: REP), Petrobras (NYSE: PZE), Encana (NYSE: ECA), Monsanto (NYSE: MON), Agrium (NYSE: AGU), Mosaic (NYSE: MOS), Potash Corp. (NYSE: POT) and American Vanguard (NYSE: AVD).


Please see our disclosures at the Wall Street Greek website and author bio pages found there. This article and website in no way offers or represents financial or investment advice. Information is provided for entertainment purposes only.

Consumer Confidence (December 2009)

Is Consumer Good Cheer Simply Symptomatic of the Season or is the Sun Shining Again?

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

Relative Tickers: (NYSE: STT, GS, M, KSS, JWN, SKS, TJX, DDS, BONT, CPWM, ANF, ARO, AEO, ANN, BKE, CHS, CBK, DSW, GES, JCG, LTD, NWY, MW, DIA, SPY), (Nasdaq: BEBE, CMRG, CTRN, DBRN, HOTT, JOSB, ROST, PLCE, URBN, WTSLA, QQQQ)

Consumer Confidence

The Conference Board reported on Consumer Confidence this morning. December's reading marked improvement over November, as the index measured 52.9, up from a revised 50.6 mark in November. November also offered a gain over October's measure of 48.7. So we wonder what's got consumers so cheery?

We would first assume that the smiley times are simply symptomatic of the holidays. After all, there is an undeniable euphoria that coincides with the heavy holiday consumption of sweets and spirits. Nostalgic films like It's a Wonderful Life and A Miracle on 34th Street have a way of warming the heart as well. Then there's that jolly old fat guy in the red suit laughing up a storm, and they say laughter is contagious… By the way, I think the fat guy just got his bonus from Goldman Sachs (NYSE: GS). Anywho, maybe improving sentiment is just a consequence of the season…

Still, with the labor market recently bleeding jobs at a slower pace, and with only 9% of employers saying they will likely layoff more folks in 2010 (down from 16%), maybe the communal sense of job security is solidifying. Also, stocks were up a bunch this past year, albeit from bare bottom lows, especially in early March. Meanwhile, GDP is growing again and the Fed is still as fiscally friendly as can be. So maybe the sun really is rising?

Well it has not risen yet, as the Present Situation Index component of the overall sentiment figure stuck at a 26-year low. The PSI fell to 18.8 in December, down from 21.2 in November. Still, America seems to have its collective eye on the horizon, as the Expectations Index moved to 75.6, up from 70.3 in November.

Investor Confidence Up Too

A second measure reported this morning seems to reinforce the good day sunshine seen in the Conference Board's report. State Street's (NYSE: STT) Global Investor Confidence Index improved to 103.9, from 100.8 in November. While the universal measurement benefited largely from a 6.3 point advance in Asia Pacific sentiment (to an 8-month high), US confidence improved 0.9 to a level of 103.1. And why shouldn't investors favor increased risk these days, given the stock market's large advance since March. State Street says its measure, which looks at actual risk taking of institutional investors, was ahead of the curve in predicting stock market and economic recovery.

Come January though, we anticipate investor sentiment might cool along with equity values. Given the run-up this year, with the Dow Jones Industrials up 2.0% this month, and up 61% since the March 9 close, we expect investors will look to lock up gains post the tax-year threshold of December 31st.


Editor's Note: Article should interest investors in Macy's (NYSE: M), Kohl's (NYSE: KSS), Nordstrom's (NYSE: JWN), Saks (NYSE: SKS), TJX Cos. (NYSE: TJX), Dillard's (NYSE: DDS), Bon-Ton Stores (Nasdaq: BONT), Cost Plus (Nasdaq: CPWM), Abercrombie & Fitch (NYSE: ANF), Aeropostale (NYSE: ARO), American Eagle Outfitters (NYSE: AEO), AnnTaylor Stores (NYSE: ANN), Bebe Stores (Nasdaq: BEBE), Buckle (NYSE: BKE), Casual Male (Nasdaq: CMRG), Chico's FAS (NYSE: CHS), Christopher & Banks (NYSE: CBK), Citi Trends (Nasdaq: CTRN), Dress Barn (Nasdaq: DBRN), DSW, Inc. (NYSE: DSW), Guess (NYSE: GES), Hot Topic (Nasdaq: HOTT), J Crew (NYSE: JCG), Jos A. Bank (Nasdaq: JOSB), Limited Brands (NYSE: LTD), New York & Co. (NYSE: NWY), Ross Stores (Nasdaq: ROST), Children's Place (Nasdaq: PLCE), Men's Wearhouse (NYSE: MW), Urban Outfitters (Nasdaq: URBN) and Wet Seal (Nasdaq: WTSLA).

Please see our disclosures at the Wall Street Greek website and author bio pages found there. This article and website in no way offers or represents financial or investment advice. Information is provided for entertainment purposes only.

Home Price Index Troubling in October

This Real Estate Metric Seems to Point Toward Trouble

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

Relative Tickers: (NYSE: SRS, URE, IGR, XIN, TOL, HOV, BZH, BAC, FRE, FNM, LEN, PHM, NVR, GFA, MDC, CTX, KBH, RYL, MTH, XIN, BHS, SPF, MHO, OHB, WCI, DIA, SPY, DIA, SPY, NYX, DOG, SDS, QLD), (Nasdaq: RYHRX, TRREX, QQQQ).

S&P Case Shiller posted its Home Price Indices this morning covering the 10 and 20 city markets it regularly measures. Unfortunately, the data seems to offer insight the market could choke on as economists mull over and pick through October's refuse.

Home Price Index

Sorry, but the compilers of this data could do a better job with its timeliness. Today's report covers the month of October (do you remember when?…)! As we exit Q4 and prepare to enter the first quarter of 2010, the press release from Water Street is talking about the start of the last period. Oh MaGoo, you've done it again…

Anyway, way back in October, prices improved at a less rapid rate when compared to ancient September. Prices were still lower than the prior year period, but less lower than in September. The 10-City Composite was off 6.4% when matched against last October (that's in 2008), while the 20-City measuring stick slipped 7.3%. Only seven of 20 metro regions posted month-to-month gains; that's a marked deterioration of the rate and breadth of improvement. Those seven cities include: Detroit, Los Angeles, Phoenix, Portland, San Diego (gosh I love it there), San Francisco and Seattle.

As we recall those lazy summer/early fall days (foggy as it may be), we know the pending expiration of the First-Time Homebuyer Tax Credit led a mass rush of Americans to enter into home purchase agreements in September, with a resulting counter-slippage in October. That seems to explain the change pricing here as well.

A representative of the measuring organization cautions in the press release against looking for a double-dip in pricing, since Fed policy is consistent and favorable now, versus a comparable period in the early '80s when a dramatic shift in Fed policy led prices to drop twice. We caution though, that market anticipation of future inflation is intensifying, and market sentiment may matter as much or more than actual Fed policy, and may precede it.

For now, we expect the most important market takeaway will be that we appear en route toward year-over-year price stabilization. Still the pace is slowing, and seems unreliable, especially if we remove the crutches of government stimulus. The latest extension of the homebuyer tax credit is set to expire in the first half of 2010.


Editor's Note: Article should interest investors in NYSE: SRS, NYSE: URE, NYSE: IGR, NYSE: XIN, Nasdaq: RYHRX, Nasdaq: TRREX, NYSE: TOL, NYSE: HOV, NYSE: BZH, NYSE: BAC, NYSE: FRE, NYSE: FNM, NYSE: LEN, NYSE: PHM, NYSE: NVR, NYSE: GFA, NYSE: MDC, NYSE: CTX, NYSE: KBH, NYSE: RYL, NYSE: MTH, NYSE: XIN, NYSE: BHS, NYSE: SPF, NYSE: MHO, NYSE: OHB, NYSE: WCI, NYSE: DIA, NYSE: SPY, Nasdaq: QQQQ, Nasdaq: VGSIX, Nasdaq: AVTR.

Please see our disclosures at the Wall Street Greek website and author bio pages found there. This article and website in no way offers or represents financial or investment advice. Information is provided for entertainment purposes only.

Week Ahead: Closing the Year of Plenty

In absolute terms, 2009 was a year of plenty, though stocks are still roughly 50% off recent times' highs.

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

(Tickers: (Nasdaq: CALM, QQQQ), (NYSE: CRI, STT, F, DIS, MVL, DIA, SPY), OTC: TAROF.PK, LSE: DLTA.L)

Yet another shortened holiday week is in store, but trading volume should tick a bit higher as last minute end-of-year jockeying drives the movement of some shares. If you are holding losers in this year of plenty, you might try the ponies instead of stocks, or maybe even the lottery. The few dogs among you will be selling those losers, if you have not already, and others among you will be moving the shares of yearly winners that still carry long-term capital losses. Still, the other side of the argument is that perhaps we booked enough losses last year to last us through 2009 plus some. In any event, the week is a relatively light one on the economic and corporate news front, as holiday good cheer, or downright depression, will keep most folks focused elsewhere.

Week Ahead - Closing the Year of Plenty

Monday

A quiet day follows up the long weekend. Look for the Bank of Israel to make its latest monetary policy announcement. Hong Kong will auction two large residential land positions in a suburban region, marking the first such sale in two years. The day's earnings schedule includes news from Carter's (NYSE: CRI) and Cal-Maine Foods (Nasdaq: CALM).

Tuesday

Last week's ICSC Weekly Same-Store Sales data showed a modest 0.4% year-over-year gain for the week ending December 19; and sales improved 0.6% on a weekly basis. This year's snow storm likely played some havoc with the Christmas week, so we will be curiously watching to see if weather related lost sales were made up in the final days before Christmas. Look for this data in the pre-market.

S&P Case Shiller's Home Price Index is due for release at 9:00 a.m. Recall, this data is two-month lagged and so relatively useless, in my view… September's report showed further gains in pricing. Prices of homes within Shiller's 10-City Composite improved 0.4% through the month, though still declined 8.5% against the prior year period. The next couple of months' data may be skewed by the previously anticipated expiration of the First-Time Homebuyer Tax Credit; though it was later extended and expanded. The credit has provided a boost to housing (read crutch), and has helped stabilize inventory (excluding the Foreclosure Overhang) and pricing.

The Conference Board will report on Consumer Confidence at 10:00 a.m. Tuesday morning. December's reading follows a slight improvement in November, when the index moved up fractionally to 49.5, from 48.7 in October. Holiday cheer, or too much cinnamon beer, should have the index somewhat improved this month. Still, with the labor market far from vibrant, we would not expect a new year's jubilee just yet. Economists forecast a healthy bump up to 53.0 though, which on a relative basis, should prove enthusing to stocks.

State Street's (NYSE: STT) Investor Confidence Index is up for December report at 10:00 a.m. This measurement of investor risk taking slipped significantly in November, to 100.8, from 108.4 in October.

The earnings slate is empty for Tuesday, but China National Chemical Engineering has its Shanghai IPO planned.

Wednesday

The Mortgage Bankers Association is taking the week off, so look for its weekly mortgage applications survey on January 6, when it will report on last week's data and the current period simultaneously.

The Chicago Purchasing Managers Index is due for report at 9:45 a.m. The Index improved in November, to 56.1, but economists are looking for moderation this month, to 54.9. Recall, readings above 50 signify expansionary activity. This Midwest measure will help economists tell whether this month's New York region weakness or Philadelphia area strength was symbolic for the whole of the country. Last month, Chicago New Orders improved to 62.8.

The EIA produces its Petroleum Status Report at 10:30. Data for the week ending December 18 showed crude oil inventory declined by 4.9 million barrels; this while OPEC kept production rates steady, despite production steadily coming on line in Iraq. Total Motor Gasoline inventory decreased by 0.9 million barrels last week, and distillate fuel inventories fell by 3.1 million barrels. Gasoline stocks likely fell on holiday travel and shopping activity, while fuel oil demand in the Northeast likely weighed on distillate stores. Both seasonal factors likely played true again in the current reporting period.

Thursday

The last trading day of 2009 is upon us! Markets in Japan, Brazil, Germany, Italy and Switzerland will already be closed for the day while traders in France, the Netherlands and the United Kingdom get a shortened session to work with. Frenchmen have until the end of the day to declare Swiss bank accounts, so the nation's elite are on suicide watch. Whether declared or discovered, expect some of the names to prove scandalous… The US bond market closes at 2:00 p.m.

Weekly Initial Jobless Claims are due for release at their usual 8:30 morning report. Jobless Claims fell to 452K in the week ending December 19, a marked improvement from 480K the week before. The four-week moving average improved to 465,250.

The EIA reports on Natural Gas Inventory at 10:30. Last week's data showed another sharp draw of inventory (net 166 Bcf) for the week ending December 18. Stocks were still 395 Bcf above the five-year average for this time of year. We told you last week that seasonal draw logically ensues from increased holiday season electricity usage both in commercial and residential centers.

Look for earnings from Delta Plc (LSE: DLTA.L). Today, Ford Motors (NYSE: F) and General Motors turn over control of their hourly workers' health care to the United Auto Workers Union (UAW). Disney (NYSE: DIS) is due to close on its savvy acquisition of Marvel Entertainment (NYSE: MVL). Taro Pharmaceuticals (OTC: TAROF.PK) holds its annual meeting while under attack by significant shareholder Sun Pharmaceuticals of India.

Friday

Happy New Year! Markets are closed around the world for the turnover to the new decade. Starting in 2010, Spain will take over the presidency of the European Union, and Canada takes over the G-8.



Please see our disclosures at the Wall Street Greek website and author bio pages found there. This article and website in no way offers or represents financial or investment advice. Information is provided for entertainment purposes only.

Post Christmas Shopping Sales

Post Christmas Retail Sales Strategy Lays Merchandise Minefield for Shoppers

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

(Mentioned Tickers: (NYSE: WMT, JCP, BBY, TLB, JWN, KSS, SKS, M, TGT, TJX, ANF, ARO, CHS, DDS, AEO, ANN, BKE, CBK, LTD, DSW, MW, GES, JCG, DIA, SPY), (Nasdaq: SHLD, JOSB, BONT, CPWM, HOTT, WTSLA, CTRN, ROST, BEBE, DBRN, PLCE, URBN, QQQQ))

Post Christmas Shopping Sales

The week after Christmas accounted for 15% of retail sales in fiscal 2009 (Jan), and storekeepers are geared up for another wild ride this year. With one bad year behind them though, inventories were better managed across the retail segment this year. As a result, you are likely to find less storewide sales than you might normally expect, especially at the best-run shops like Wal-Mart (NYSE: WMT). Still, you can expect to find special sales on specific items, as smart retailers seek to lure you in before leading you to their regular-priced goods.

According to ShopperTrak, a research firm that tracks sales and traffic at more than 50,000 stores, the week after Christmas is pretty important. Bargain hunters drove 15% of the year's total sales in the post-holiday period last year. That was 2009 mind you, when unemployment was much lower than it is now.

Retailers saw their holiday sales drop by 3.4% in 2008, according to the National Retail Federation. The industry group expects 2009 period sales to dip another 1%, though forecasts vary widely across measuring sticks. Despite the expected double-dip in sales, ShopperTrak forecasts retailers' holiday profits will improve 1.6%, a contrast to last year's 5.9% slide. This comparison clearly illustrates adaptation within the retail space, as store operators managed inventory more tightly this year and geared toward lower ticket and value items.

In this post holiday shopping season, you can expect to find further adaptation of your retail enemy in the mall wars. Savvy storekeepers are offering targeted sales campaigns that are intended to lure you into their stores, where they plan to ambush you while you seek out those treasures. You should note highly promoted sales advertisements for specific goods, like at The Gaps' (NYSE: GPS) Old Navy outlets, where you can get jeans for $15 a piece. You will also surely hear about Sears' (Nasdaq: SHLD) 70% off coats sale, and Toys R Us and Wal-Marts' toy specials. On the web, Best Buy (NYSE: BBY) is selling the Dell Studio 17-inch notebook computer at $699, down eighty bucks. Oh yes, the deals are aplenty, but buyer beware! You are being set up, and many of you will fall into the savvy trap of retail strategists.

With inventory well-managed, retailers have no need to panic this year to move product before it becomes outdated, or to pay rent like the casualties of past years (recall Talbots (NYSE: TLB) and Circuit City). You may still see some storewide sales promotions, like that offered at J.C. Penney (NYSE: JCP), but these seem more likely for the competitive and tough department store segment. FYI: I view this as a sign of weakness, though it could also be a strategy (perhaps akin to Colonel Custer's); we would need a closer look-see.

In our concern for your wallet, and since we are competing for those limited funds these days as well, we offer this survival plan: Keep your focus while in enemy territory; don your impulse buying blinders; don’t look straight into the flashy promotional signs; and whatever the case, let somebody know where you are going and prepare a rescue team for your safe evacuation should you disappear in the merchandise minefield. Consider yourself warned!

Editor's Note: Article should also interest investors in Macy's (NYSE: M), Kohl's (NYSE: KSS), Nordstrom's (NYSE: JWN), Saks (NYSE: SKS), TJX Cos. (NYSE: TJX), Dillard's (NYSE: DDS), Bon-Ton Stores (Nasdaq: BONT), Cost Plus (Nasdaq: CPWM), Abercrombie & Fitch (NYSE: ANF), Aeropostale (NYSE: ARO), American Eagle Outfitters (NYSE: AEO), AnnTaylor Stores (NYSE: ANN), Bebe Stores (Nasdaq: BEBE), Buckle (NYSE: BKE), Casual Male (Nasdaq: CMRG), Chico's FAS (NYSE: CHS), Christopher & Banks (NYSE: CBK), Citi Trends (Nasdaq: CTRN), Dress Barn (Nasdaq: DBRN), DSW, Inc. (NYSE: DSW), Guess (NYSE: GES), Hot Topic (Nasdaq: HOTT), J Crew (NYSE: JCG), Jos A. Bank (Nasdaq: JOSB), Limited Brands (NYSE: LTD), New York & Co. (NYSE: NWY), Ross Stores (Nasdaq: ROST), Children's Place (Nasdaq: PLCE), Men's Wearhouse (NYSE: MW), Urban Outfitters (Nasdaq: URBN) and Wet Seal (Nasdaq: WTSLA).


Please see our disclosures at the Wall Street Greek website and author bio pages found there. This article and website in no way offers or represents financial or investment advice. Information is provided for entertainment purposes only.

Merry Christmas & Happy Holidays

For the first time, we have a request of you...

Wall Street Greek wishes you a Merry Christmas and a happy holiday season. We extend the same gift to you this year as last; free, expert authored content for our readership, which includes corporate executives, investment professionals and the average Joe, whether he be an investor or not. We thank you for your gift as well; your continued reading and site visits, and your support of our sponsors.

We extend our warm wishes to you, and thank you for your interest in our brave independent endeavor. Our New Years greeting will outline our amazing plans for the year ahead, which will hit the ground running in January. Long planned efforts are now set to roll, so stay tuned and hold on for the ride! Still, we need your help to ensure our site's expansion.

After three years of operating without a request of you, we ask humbly this year that you might help to support our endeavor with a monetary donation. If you can, please click through the banner advertisement at the bottom of this note so that you might reach our "Support" page, where you can make a donation. Whether you do or not, we thank you with sincere heart for your ongoing interest in Wall Street Greek. God bless you.

Merry Christmas & Happy Holidays

Markos "The Greek" Kaminis

Visit the front page of Wall Street Greek to see our current coverage of Wall Street, economic reports and global financial markets. (Tickers: NYSE: DIA, NYSE: SPY, Nasdaq: QQQQ, NYSE: NYX, NYSE: DOG, NYSE: SDS, NYSE: QLD, NYSE: GOD). Please see our disclosures at the Wall Street Greek website and author bio pages found there. This article and website in no way offers or represents financial or investment advice. Information is provided for entertainment purposes only.

Christmas Eve - Stock Market Open

Yes, the stock market is open on Christmas Eve, but only for a portion of the day. Read further down the article to get the specific financial markets information you need for your trading day. Visit the front page of Wall Street Greek to see our current coverage of Wall Street, economic reports and global financial markets.

(Tickers: NYSE: DAI, NYSE: HMC, NYSE: TM, NYSE: F, NYSE: TTM, NYSE: DIA, NYSE: SPY, Nasdaq: QQQQ, NYSE: NYX, NYSE: DOG, NYSE: SDS, NYSE: QLD)

The open stock market was joined by a Senate in session on this strange Christmas Eve. US equity markets will close at 1 p.m. and the bond market at 2 p.m. though. As is usual, many markets across the world will be closed the full day for the holiday. All US and global markets are closed on Christmas Day so you can eat your goose in peace, even you Senators.

Christmas Eve - Stock Market Open

Because of the holiday, very few companies are open for operation, let alone reporting earnings results on Christmas Eve. However, a couple key economic reports slipped into the slow trading day slate due to the necessity of a monthly publishing schedule. Relatively good news emanated from Durable Goods Orders and Weekly Jobless Claims, and the US Senate passed health care reform. The major indexes rose fractionally through mid-morning as a result.

Durable Goods Orders

Durable Goods Orders were reported lower than expected for the month of November. New Orders increased 0.2%, versus economists consensus expectations for a 0.5% gain and an October decline of 0.6%. When excluding Transportation, Orders improved 2.0%, against a revised October decline of 0.7%. We noted in our weekly economic report schedule that October's weakness matched against a spike in September, and that this volatile measure's trend line is likely somewhere in between the two contrasting months of activity (or more like November activity).

You get a better picture of the current economic state when comparing to the prior year levels of activity. New Orders were down 7.8% and 6.9% ex-transportation when compared to the prior year period. Within this month's change, improvement was seen in communication equipment (+4.0%), computers & electronics (+3.7%), machinery (+3.5%) and electrical equipment (+3.2%). Transportation Orders fell 5.5%, versus a 0.2% drop in October. Within the transportation segment, non-defense aircraft collapsed 32.6%, while defense aircraft fell 3.2%. For investors in Ford (NYSE: F), Toyota Motors (NYSE: TM), Honda Motors (NYSE: HMC), Daimler AG (NYSE: DAI), Tata Motors (NYSE: TTM) and others, motor vehicle orders slid 0.2% in November.

Weekly Jobless Claims

Weekly Initial Jobless Claims were also reported this morning. In the week ending December 19, new benefits claims filers improved to 452K, from the prior week's unrevised 480K. The four-week moving average moved slightly lower to 465,250. Economists had been looking for a reading of 470K this week, so this is cheery good news for a holiday market. The insured unemployment rate stuck at 3.9% again this week.

In these tough times, we like to share useful information for those seeking work or financial aid. Extended benefits were available in Alabama, Alaska, Arizona, California, Colorado, Connecticut, Delaware, the District of Columbia, Florida, Georgia, Idaho, Illinois, Indiana, Kansas, Kentucky, Maine, Massachusetts, Michigan, Minnesota, Missouri, Nevada, New Hampshire, New Jersey, New Mexico, New York, North Carolina, Ohio, Oregon, Pennsylvania, Puerto Rico, Rhode Island, South Carolina, Tennessee, Texas, Vermont, Virginia, Washington, West Virginia, and Wisconsin during the week ending Dec. 5.

The highest insured unemployment rates in the week ending Dec. 5 were in Puerto Rico (6.4 percent), Oregon (5.9), Pennsylvania (5.6), Wisconsin (5.6), Alaska (5.4), Washington (5.2), Idaho (5.1), Nevada (5.1), California (4.9), Michigan (4.9), and North Carolina (4.9).

The largest increases in initial claims for the week ending Dec. 12 were in Puerto Rico (+1,260), Louisiana (+1,123), Nebraska (+941), Maine (+728), and the District of Columbia (+696), while the largest decreases were in North Carolina (-14,374), Pennsylvania (-14,302), New York (-13,432), Georgia (-11,142), and Wisconsin (-10,650).

Natural Gas Report

The EIA's Natural Gas Report showed natural gas stocks decreased by 166 Bcf in the week ended December 18. This compared against the prior week's significant draw of 207 Bcf. Natural gas stores were still 395 Bcf above the five-year average for this time of year; this number is on the downtrend, as it stood at 433 Bcf last week and even higher the week before.

Before you panic, we note that electricity usage increases in the holiday shopping spree, as store owners keep the lights on later and home parties keep families awake into the evening. Also, due to normal winter trends, electrical heating devices add to consumption, and hot water demand rises as well. Still, the summer season brings the greatest draw from natural gas inventory due to increased air conditioner usage, while fuel oil typically sees seasonal winter draw.

Washington News Drivers

The Senate passed the health care reform bill with a vote of 60 to 39. We will cover this story in more depth at a later date. The Fed will report on the state of its balance sheet at 4:30 p.m. Money Supply will also be reported later today.


Please see our disclosures at the Wall Street Greek website and author bio pages found there. This article and website in no way offers or represents financial or investment advice. Information is provided for entertainment purposes only.

Existing Home Sales Mutes Lower GDP Growth

Slower Q3 Growth News Muted by Home Sales

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

(Tickers: NYSE: DHI, TOL, HOV, BZH, BAC, WFC, C, JPM, GS, MS, TD, PNC, DIA, SPY, DOG, SDS, QLD, Nasdaq: QQQQ)

Existing Home Sales Mutes Lower GDP Growth

Third quarter (Q3) GDP growth was revised significantly lower in its final check up. The news surprised the great consensus of economists, who were looking for just a modest reduction. Still, due to the age of the data, and good news emanating from more recent real estate data, stocks moved higher Tuesday.

Real Gross Domestic Product (GDP) growth was revised to a 2.2% rate, down from the 2.8% rate determined at last report (3.5% initially). Economists surveyed by Bloomberg expected growth to be only slightly cut in this last and final take, to 2.7%. The decrease primarily reflected downward revisions to nonresidential fixed investment, private inventory investment, and personal consumption expenditures.

Existing Home Sales spiked in November, benefiting from the First-Time Homebuyer Tax Credit. Existing Home Sales are tallied upon transaction closing, so the rush to earn the tax incentive before its November end deadline drove a spike in September Housing Starts and October and November Home Sales. Of course, the tax credit has been expanded and extended since.

Existing Home Sales reached an annual pace of 6.54 million in November, up from 6.09 million in October. The pace is 44.1% greater than that of a year ago, and is the highest since February 2007. Existing Home Inventory likely enthused investors most of all, with the store of homes for sale dropping to 6.5 months, versus the 7.0 month total in October. The Dow Jones Industrials increased about a half percentage point through late afternoon trading. Housing stocks did well, with Toll Brothers up 4.6%, Hovnanian (NYSE: HOV) up 1.2%, DR Horton (NYSE: DHI) up 3.4% and Beazer Homes (NYSE: BZH) up 1.3%.

Editor's Note: Article should also interest investors in Bank of America (NYSE: BAC), Citigroup (NYSE: C), Goldman Sachs (NYSE: GS), Morgan Stanley (NYSE: MS), Wells Fargo (NYSE: WFC), Toronto Dominion (NYSE: TD), PNC Financial (NYSE: PNC) and JP Morgan (NYSE: JPM).


Please see our disclosures at the Wall Street Greek website and author bio pages found there. This article and website in no way offers or represents financial or investment advice. Information is provided for entertainment purposes only.

Have a Holly Jolly Christmas Week

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

Mentioned Tickers: (NYSE: CAG, JBL, OMN, WAG, AM, VOL, FNM, FRE, ESV, CMC, PKE, RHT, LNN, MU, (Nasdaq: CVGW, CTAS, PRGS, FINL)

This holiday shortened week will still produce several key economic data points, so we suggest laying off the eggnog until Thursday's close of trading. Even so, we wish you have a holly jolly Christmas week this year!

Have a Holly Jolly Christmas

Monday

Monday's economic report slate includes only manufacturing data from the Chicago Fed. Last week offered up the monthly manufacturing surveys for the New York and Philadelphia markets. The Empire State Manufacturing Survey showed activity slowed in the New York region, as the index dropped to 2.55, from the 23.51 reading in November. However, the Philly Fed Index improved to 20.4 in December, illustrating significant month-over-month growth. Monday's reading of the Midwestern region could offer information that tips the balance and perhaps allows directional vision.

The US Commodity Futures Trading Commission (CFTC) comes up against a deadline to propose position limits and exemptions for energy derivatives. Dubai World's western creditors will vote on how to handle its freezing of $26 billion of debt.

Monday's corporate earnings schedule includes ConAgra Foods (NYSE: CAG), Jabil Circuit (NYSE: JBL), OMNOVA Solutions (NYSE: OMN), Walgreen (NYSE: WAG), Calavo Growers (Nasdaq: CVGW) and Volt Information Sciences (NYSE: VOL).

Tuesday

The final revision of third quarter GDP might grab media attention Tuesday, but little new information should come from the actual data release. Economists forecast the recession ending quarter growth originally posted will be revised slightly lower, to 2.7%, from 2.8% at last check. Corporate Profits are reported along with the GDP data. At last check, Q3 profits grew 14.5% over Q2 but still stood 7.2% short of the prior year period.

The regular ICSC Weekly Same-Store Sales Report will be released in the pre-market. Last week's data covering the period ending December 12 showed a week-over-week gain of 0.4% (Prior Week -1.3%) and year-to-year change of +2.4% (+2.6%).

Existing Home Sales will be reported for the month of November at 10:00 a.m. November's sales may have been impacted by the timing of the First-Time Homebuyer Tax Credit expected expiration and later renewal, but economists are generally looking for a slight increase nonetheless for November. The consensus of experts sees the annual pace of home sales improving to 6.25 million, versus the 6.10 million reported in October. Existing home inventory improved to 7.0 months in October, down from 8.0 months in September.

The Federal Housing Finance Agency (FHFA) will post its House Price Index for October at 10:00 a.m. FHFA's take on September produced no change from August price levels.The index is based on the pricing of single-family housing, with data provided by Fannie Mae (NYSE: FNM) and Freddie Mac (NYSE: FRE). This data produces an imperfect result, since it is limited by the ceiling amount for conforming loans purchased by these government-sponsored enterprises (GSE).

OPEC is scheduled to meet Tuesday in Angola to discuss quota levels. Oil ministers are expected to keep production steady this time around.

Ensco (NYSE: ESV) is scheduled to hold a special shareholders' meeting. Tuesday's EPS schedule includes reports from Cintas Corp. (Nasdaq: CTAS), Commercial Metals (NYSE: CMC), Park Electrochemical (NYSE: PKE), Red Hat (NYSE: RHT), Lindsay (NYSE: LNN), Progress Software (Nasdaq: PRGS), Micron Technology (NYSE: MU), IMMOEAST IMMOBILIEN (OTC: IMOIF.PK), Hornbach Holdings VZ (Frankfurt: HBH3.F) and Hornbach - Baumarkt AG (Frankfurt: HBM.F).

Wednesday

Wednesday brings five key economic reports. First thing in the AM, look for the Mortgage Bankers Association's Mortgage Activity Report. Last week's data for the week ending December 11, showed a slight 0.3% improvement in the Market Composite Index. The Purchase Index of mortgage volume decreased 0.1%, as activity comes to a standstill over the holidays. The Refinance Index improved 0.9%, on relatively flat mortgage rates. The average contracted fixed rate mortgage rate on 30-year mortgages rose to 4.92% from 4.88% in the prior week. The 15-year rate stuck at 4.33%.

Personal Income & Outlays will be reported for the month of November at 8:30 AM. Economists see Personal Income rising 0.5% in November, versus the 0.2% gain seen in October. Personal Spending is forecast to increase by 0.6%, versus the 0.7% gain in October. Core PCE Price Inflation is expected to increase 0.1%, versus the 0.2% jump in October.

New Home Sales will be reported for the month of November at 10:00 AM. The annual pace of home sales is seen rising to 440K, versus the 430K pace set in October. New Home inventory dropped to its lowest mark since 1971 in October, sitting at 6.7 months.

Consumer Sentiment, as measured by Reuters and the University of Michigan, is set for 9:55 AM release. The economists' consensus sees the confidence measure inching to 73.5, from the 73.4 mark seen mid-month. Recall, that mid-December measurement represented significant gain from the start of the period.

For the week ending December 11, the EIA's Petroleum Status Report showed crude oil inventory decreased by 3.7 million barrels, though stores still stood above the upper limit of the average range for this time of year. Gasoline stocks increased by 0.9 million barrels. Distillate fuel inventories decreased by 2.9 million barrels, as the weather turned blustery in the Northeast. Expect more of the same when this week's data is reported.

Japan's markets will be closed Wednesday, but the day's earnings per share slate includes news from Finish Line (Nasdaq: FINL) and American Greetings (NYSE: AM).

Thursday

Durable Goods Orders will be reported for the month of November at 8:30 AM. In October, orders fell 0.6%, and dropped 1.3% when excluding transportation. However, October's decline matched against a spike in September, so this volatile measure's trend line is likely somewhere in between the two months activity. Economists are forecasting a 0.5% gain for November.

Initial Jobless Claims will also be reported at their usual 8:30 time slot. In the week ending December 12, new benefits claims filers inched higher to 480K, from 473K. However, the four-week moving average still moved 5,250 lower to 467,500, as recent weeks have shown marked improvement. Economists are looking for a reading of 470K this week.

The EIA's Natural Gas Report showed natural gas stocks decreased by 207 Bcf in the week ended December 11. Natural gas stores were still 433 Bcf above the five-year average for this time of year.

The Fed will report on the state of its balance sheet at 4:30 p.m. Money Supply will also be reported the same day.

Due to Christmas Eve, US equity markets will close at 1 p.m. and the bond market at 2 p.m. Many markets across the world will be closed the full day for the holiday.

Friday

Merry Christmas! Markets around the world will be closed for the holiday. Please do have a holly jolly Christmas this year.


Please see our disclosures at the Wall Street Greek website and author bio pages found there. This article and website in no way offers or represents financial or investment advice. Information is provided for entertainment purposes only.

Iranian Forces Take Iraqi Oil Well

Crude Oil Prices Spike 2% as a Result

Visit the front page of Wall Street Greek to see our current coverage of Global Affairs, World News, Geopolitics and Iran.

Tickers: (Nasdaq: GULF, TRAMX, TRIAX, XISLX, QQQQ), (NYSE: ISL, NOC, RTN, HON, ATK, LMT, BA, IWM, TWM, IWD, DIA, SPY, NYX, DOG, SDS, QLD)

Iranian Forces Take Iraqi Oil Well

Oil prices spiked 2% this morning on news of an Iranian forces advance to take an Iraqi oil well in the East Maysan Oil Field of the al-Fakah region of Southeastern Iraq. Border Guard General Zafer Nazmi reported Iranian forces advanced at dawn and occupied well number 4 in the long disputed region. He said that the Iranians had positioned forces including tanks around the well and remained dug in at last check.

Why would Iran initiate such a seemingly foolish mission?

Just this past week, United States lawmakers pushed forward with legislation to intensify sanctions against Iran. The legislation passed by Congress and awaiting the President's signature is set to include Iran's refined petroleum infrastructure. This "smart sanction" threatens real and significant impact to the Iranian people, who in turn are expected to intensify pressure on their government.

The Iran Refined Petroleum Sanctions Act is basically a negotiation tool, given to the President by Congress. It gives President Obama a hammer with which to threaten use if Iran does not give ground on its nuclear enrichment program. The pending law denies Iran's suppliers of refined petroleum products access to US markets. These suppliers are estimated to control 40% of Iran's refined petroleum needs. That includes gasoline, as Iran is dependent on imported gas.

Thus, Obama has a powerful stick with which to follow up the carrots he's offered to Iran. Iran has rejected the world's offers to this point, though oftentimes using them to stall processes. Iran's answer to UN calls for nuclear concessions has been a clear and resounding "No!" Instead of agreeing to the outsourcing of nuclear fuel, Iranian government officials announced plans to build 10 more nuclear plants and construct thousands of additional centrifuges to process uranium. Also, a recent report in the Washington Post indicates UN and Western officials are analyzing an Iranian technical document that appears to show Iranian scientists evaluating or testing a component crucial to the detonation of a nuclear warhead.

A Silly Response, or a Brilliant One?

This latest action is seemingly so futile that it appears to be the plan of a rogue Iranian general or lower level leader. The Iraqi oil well taken, known as #4, is reportedly not even active; it is no longer being used for oil production. It seems intelligence might have been better for a government initiated action, unless the Iranian measure is simply a test or a show of what could be.

Either way, it will likely be met by overwhelming Iraqi force, assisted by American air cover, if not reversed soon. American forces have not moved as yet, perhaps even considering inaction a more powerful show of force. After all, the Iranian raising of their flag on Iraqi soil looks intentionally intended to draw the ire and perhaps fire of the Iraqis. So America is likely weighing why Iran might want this.

Wall Street Greek covers geopolitical issues, world news, global affairs and Iran via the work of our columnists and founder. We expect to increase our coverage of world affairs shortly with the addition of a new columnist.

Editor's Note: Article may interest investors in the shares of WisdomTree Middle East Dividend (Nasdaq: GULF), T. Rowe Price Africa and Middle East Fund (Nasdaq: TRAMX), T. Rowe Price Institutional Africa & Middle East (Nasdaq: TRIAX), First Israel Fund (Nasdaq: XISLX), (Nasdaq: QQQQ), First Israel Fund (AMEX: ISL), Northrop Grumman (NYSE: NOC), Raytheon (NYSE: RTN), Alliant Techsystems (NYSE: ATK), Lockheed Martin (NYSE: LMT), Boeing (NYSE: BA), Honeywell (NYSE: HON), (NYSE: IWM), (NYSE: TWM), (NYSE: IWD).


Please see our disclosures at the Wall Street Greek website and author bio pages found there. This article and website in no way offers or represents financial or investment advice. Information is provided for entertainment purposes only.