Susan Tompor: Dow Drops 500 Points: When Will Wild Ride End? - DetroitFree Press

Latest hot economic news about Susan Tompor: Dow Drops 500 Points: When Will Wild Ride End? from DetroitFree Press
Is the Dow telling us we're set for a second dip of the Great Recession?

The Dow Jones Industrial Average tumbled by 512.76 points, down 4.31%, to close at 11,383.68 Thursday. Market averages saw the biggest one-day drop in more than a year.

The kind of decline we're seeing is dramatic because it's not often investors watch what's roughly a 10% drop in 10 trading days.

The Dow actually has fallen about 1,340 points, or 10.53%, since July 21, when the Dow closed at 12,724.41. We've lost any gains for all of 2011.

"Right now, it's just panic. It's a freakin' free fall," said Jeffrey Saut, chief investment strategist at Raymond James in St. Petersburg, Fla.

Not all individual investors are bailing, obviously. Some are waiting it out and hoping we're near the bottom.

Everyone is wondering what happens next. The July jobs report rolls out today. Wall Street experts offer varying views as to whether we're near the bottom -- or could see another 5% drop or more from here.

Pam Stone, 52, of Plymouth said she has been watching the stock market this last week or so, like everybody else she knows. She's not selling or making big moves with her 401(k), though.

"The economy has got to turn around sooner or later," said Stone, who is a UAW lead inspector at Chrysler's Warren Stamping Plant. "You've got to have faith in something."

Some Wall Street watchers hold out the hope that over the long term, some of today's troubling issues, such as U.S. fiscal challenges and European debt troubles, will show signs of improvement as we move closer to the 2012 elections. Most say we're not heading into another Wall Street collapse like that of 2008-09, noting that automakers and others are on a stronger footing now.

"Our belief is that this looks more like the 'blow-off' at the end of a decline than the start of a new leg down," said William C. Roney III, senior vice president, division director for the Great Lakes for Raymond James in Birmingham.

"The talk of European contagion and growth fears in the U.S. are masking what has been a pretty good second-quarter earnings season," Roney said. "Equities look cheap based on forward-looking earnings."

Why has the market fallen so significantly?

"It started out with fears of a double-dip because of softening economic numbers," Saut said.

So is another U.S. recession around the corner?

Saut simply answered: "Nope."

Others agree.

"We think we're still in a soft patch, not a double-dip," said Christopher Ruth, chief market strategist for Comerica Asset Management in Birmingham.

"I don't know if we're headed for a double-dip. I would think we're heading for a period of flattish growth," said Bob Bilkie, president of Sigma Investment Counselors in Southfield. Longer term, he is optimistic about stocks.

But experts detect an overall flat feeling about where things are headed, perhaps a hangover from watching the U.S. debt-ceiling talks go down to the wire.

Ruth said some investors doubt that the federal government has much more room to stimulate the economy, given the deficit issues.

"They're kind of boxed into a corner," he said.

David Sowerby, portfolio manager for Loomis, Sayles in Bloomfield Hills, noted that the Institute for Supply Management manufacturing index has fallen so much that it indicates potential for further delay to a more meaningful rebound in jobs.

But Sowerby said the potential for improvement remains, based on stronger corporate profits and improved cash flow.

"Ultimately, that leads to stronger employment growth," Sowerby said.

How long it might take to see that stronger jobs growth, of course, is what has Wall Street -- and the country -- still on edge.

Contact Susan Tompor: 313-222-8876 or stompor@freepress.com

NYSE Merger Deal Under EU Review - Boston Globe

Hot economic news about NYSE Merger Deal Under EU Review from Boston Globe
European Union antitrust regulators opened an in-depth review yesterday of the $9 billion merger between Deutsche Boerse of Germany and NYSE Euronext, following complaints from customers and rivals that the stock exchange combination could harm competition.

The approval of the European Commission is the biggest hurdle for the deal, which would create the largest operator of equities and derivatives markets.

The regulators’ main concern is the hold that Deutsche Boerse and NYSE Euronext would have on exchange-based futures trading in Europe. In part, they are worried about the overlap between the Eurex derivatives platform, operated by Deutsche Boerse, and Liffe, a similar platform operated by NYSE Euronext.

“The proposed merger would remove a strong competitor from the market and would give the merged company by far the leading position in derivatives trading in Europe,’’ Joaquin Almunia, the European Union’s commissioner for competition policy, said in a statement. “The commission needs to make sure that markets which are at the heart of the financial sector remain competitive and efficiently deliver to users.’’

The commission said it had 90 working days, or until Dec. 13, to make a decision on whether to clear the deal. It could extend the deadline if the exchanges offer concessions that ease the regulators’ concerns.

Antitrust experts said the exchanges were probably considering appeasements that would not force them to sell parts of their combined derivatives and clearing businesses, which provide a significant source of the deal’s value.

The decision in Europe to give the merger a longer review was widely expected after Almunia described the merger as a complex case in March. Since then, some groups representing the financial services sector have warned that the combination risked being too powerful in some areas.

The tie-up “will create an exchange with a near monopoly in European exchange-traded derivatives,’’ the FIA European Principal Traders Association said in a policy paper in July. The association has Citadel Securities Europe and Knight Capital Europe among its members.

Officials from NYSE Euronext made clear that they expected a longer review in Europe.

© Copyright 2011 Globe Newspaper Company.

Oil Slips To Near $86 In Europe On Weak US Economy, Crude DemandOutlook - Washington Post

latest economic news about Oil slips to near $86 in Europe on weak US economy, crude demand outlook from Washington Post

By Associated Press,

Oil prices extended losses to near $86 a barrel on Friday amid fears that a slowing global economy will weaken demand for crude, but recovered from earlier lows on reports of an explosion at a pipeline in Iran.

By early afternoon in Europe, benchmark oil for September delivery was down 28 cents to $86.35 a barrel in electronic trading on the New York Mercantile Exchange. Earlier in the session, it fell as low as $82.87. On Thursday, crude tumbled $5.30 to settle at $86.63.

In London, Brent crude gained $1.20 at $108.45 per barrel on the ICE Futures exchange.

“There is high volatility and nervous trading in the oil market at the moment,” according to an energy report from Sucden Financial in London.

Oil and other commodities were dragged down by a plunge in global stock markets as traders lost confidence in U.S. economic growth. The Dow Jones industrial average sank 4.3 percent Thursday and stock markets in Asia and Europe were also sharply lower Friday.

Investors fled to lower-risk assets, such as the U.S. dollar, which exacerbated oil’s decline. Crude usually falls when the dollar gains since a stronger U.S. currency makes commodities more expensive for investors with other currencies.

Analysts, however, said reports of an explosion at an oil pipeline in Iran, the second-largest OPEC producer behind Saudi Arabia, helped prices pare losses, with the Brent contract even reversing its slide and posting gains.

“The general market sentiment has been seriously hurt following heavy losses in the global equity markets,” Sucden Financial said. “However, the explosion in the Iran’s oil pipeline today provided some support and pushed oil prices higher.”

All eyes will be on Friday’s July jobs report for evidence about the strength of the U.S. economy. Economists expect that 90,000 jobs were created in the U.S. last month, which is not enough to lower the unemployment rate, currently at 9.2 percent.

“Economic worries in the U.S. led to fears that oil demand will soften dramatically,” energy consultant Cameron Hanover said in a report. “If Friday’s jobs number is surprisingly robust or bullish, we could see assets of every stripe rally.”

Some analysts point to growing crude consumption and robust economic growth in emerging markets to suggest supply and demand fundamentals don’t justify the drop in oil prices from $100 two weeks ago.

“Commodity market participants are running the risk of being fooled by the gloomy macroeconomic environment and overlooking the bigger picture of a market that remains fundamentally well supported,” Barclays Capital said in a report.

The drop in crude — oil is down from near $115 in May — should also lower costs for products such as gasoline and help free up some consumer purchasing power.

In other Nymex trading in September contracts, heating oil gained 2.89 cents to $2.9228 a gallon while gasoline added 3.68 cents to $2.7740 a gallon. Natural gas futures slid 1.2 cents to $3.929 per 1,000 cubic feet.

___

Alex Kennedy in Singapore contributed to this report.

Copyright 2011 The Associated Press. All rights reserved. This material may not be published, broadcast, rewritten or redistributed.

Of Course The Stock Market Tanked - Technorati

Latest hot news about Of Course The Stock Market Tanked from Technorati.
Yes, the unemployment numbers are bleak and yes the overseas markets are in a state of turmoil. Both of these facts have surely had a negative effect on the New York Stock Exchange.

I fear this is not the only factor. The brutal ugliness of the entire debt ceiling negotiations was nothing short of a fiasco. Investors have seemingly come to the conclusion that our leaders in Washington are worried about something entirely different than what truly matters in today's economy.

I will let you in on a little secret. Investors and big business absolutely love Democratic economic policy. Almost as much as they love Republican tax policy.

They realize that there is no historical data whatsoever to suggest that trickle down economics will create jobs. They also know there is plenty of data to suggest that Keynesian economics does work.

With the signing of the debt deal it is now apparent that we have abandoned Keynesian policy and are now taking serious austerity measures.

We are looking at trillions of dollars in spending cuts over the next two years. When you cut government spending you necessarily have to deal with job losses. Job losses further reduces demand.

Due to the constraints imposed on the administration by the debt ceiling deal, it is now seemingly impossible for government to play a role in stimulating the economy. Now we are faced with waiting and hoping that market forces will come into play.

With the lack of demand which is now further worsened by austerity measures there is virtually no incentive for corporations to invest any additional funds in the US economy. We are broke. We can not buy what they are selling.

Instability caused by the debt ceiling deal, high gas prices, fear of future hostage tactics, and many more government workers filing for unemployment are definitely on the minds of investors.

Continued on the next page

Stocks Tumble For Eighth Day As Commodities Drop - Bloomberg

Hot economic news about Stocks Tumble For Eighth Day As Commodities Drop from Bloomberg
Enlarge image

Stocks Tumble for Eighth Day as Commodities Drop

Thomas Lohnes/AFP/Getty Images

Stock brokers sit in front of a board displaying German share index DAX. More than $4.5 trillion has been wiped off the value of equities worldwide since July 26.

Stock brokers sit in front of a board displaying German share index DAX. More than $4.5 trillion has been wiped off the value of equities worldwide since July 26. Photographer: Thomas Lohnes/AFP/Getty Images

Aug. 5 (Bloomberg) -- Marc Faber, publisher of the Gloom, Boom & Doom report, talks about global financial markets. Faber also discusses Federal Reserve monetary policy. He speaks from Zurich with Susan Li and John Dawson on Bloomberg Television's "On the Move Asia." (Source: Bloomberg)

Aug. 5 (Bloomberg) -- Jan Hatzius, chief economist at Goldman Sachs Group, talks about the outlook for U.S. employment and the economy. Hatzius speaks with Erik Schatzker and Deirdre Bolton on Bloomberg Television's "InsideTrack." (Source: Bloomberg)

Aug. 5 (Bloomberg) -- Barry Ritholtz, chief executive officer of FusionIQ, talks about the outlook for the U.S. economy and investment strategy. Ritholtz speaks with Michael McKee in Great Lake Stream, Maine, on Bloomberg Television's "InsideTrack." (Source: Bloomberg)

Aug. 5 (Bloomberg) -- Richard Sichel, chief investment officer at Philadelphia Trust Co., talks about investor strategy. Sichel speaks with Deirdre Bolton on Bloomberg Television's "InsideTrack." (Source: Bloomberg)

Aug. 5 (Bloomberg) -- David Kotok, chairman and chief investment officer of Cumberland Advisors, talks about the global equity selloff and the outlook for the U.S. economy. Kotok speaks with Michael McKee in Great Lake Stream, Maine, on Bloomberg Television's "InsideTrack." (Source: Bloomberg)

Aug. 5 (Bloomberg) -- Trevor Greetham, director of asset allocation at Fidelity International, discusses the outlook for today's U.S. July jobs report and expectations for the Aug. 9 meeting of the Federal Reserve's Federal Open Market Committee. Greetham, speaking with Maryam Nemazee on Bloomberg Television's "The Pulse," also talks about the global selloff in stocks and investment strategy. (Source: Bloomberg)

Aug. 5 (Bloomberg) -- Henry Dixon, a fund manager at Matterley Asset Management, discusses the global equity selloff and investment strategy. He speaks with Maryam Nemazee on Bloomberg Television's "The Pulse." (Source: Bloomberg)

Aug. 5 (Bloomberg) -- Mark Mobius, executive chairman of Templeton Asset Management’s emerging markets group, talks about the outlook for global stocks and his investment strategy. More than $4.4 trillion have been wiped out from equity market values worldwide amid a sell-off that drove the MSCI All-Country World Index down more than 10 percent from this year’s high into a so-called correction. Mobius speaks from Tokyo with John Dawson on Bloomberg Television's "On the Move Asia." (Source: Bloomberg)

Aug. 5 (Bloomberg) -- James Knightley, an economist at ING Bank, talks about the outlook for today's U.S. July non-farm payrolls report. He speaks with Maryam Nemazee on Bloomberg Television's "The Pulse." (Source: Bloomberg)

Aug. 5 (Bloomberg) -- Emil Wolter, head of Asian equity strategy at Royal Bank of Scotland Group Plc, discusses the global selloff in equities and the need for a "more robust" policy response from central banks. Wolter speaks from Singapore with Linzie Janis on Bloomberg Television's "Countdown." (Source: Bloomberg)

Aug. 5 (Bloomberg) -- Peter Esho, chief market analyst at Sydney-based City Index Australia Pty, talks about Rio Tinto Group's financial results and outlook. Rio Tinto, the second-largest mining company, reported first-half profit that missed analyst estimates yesterday as costs and currency gains in Australia and Canada hurt earnings. Esho speaks from Sydney with Susan Li on Bloomberg Television's "First Up." (Source: Bloomberg)

Aug. 5 (Bloomberg) -- Geoff Lewis, Hong Kong-based head of investment services at JP Morgan Asset Management, talks about global financial markets and his investment strategy. Lewis also discusses the outlook for Federal Reserve monetary policy. He speaks with John Dawson on Bloomberg Television's "On the Move Asia." (Source: Bloomberg)

Aug. 5 (Bloomberg) -- Russ Koesterich, the San Francisco-based global chief investment strategist for the IShares unit of BlackRock Inc., talks about the global economy and stock markets. A global rout in equities drove the Standard & Poor’s 500 Index to its worst slump since February 2009, while two-year Treasury yields plunged to a record low amid concern the economy is weakening. Koesterich speaks with Susan Li on Bloomberg Television's "First Up." (Source: Bloomberg)

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Marc Faber

Jonathan Fickies/Bloomberg

The S&P 500 may rise 40 to 50 points as markets are now “extremely oversold,” said Marc Faber, the publisher of the Gloom, Boom & Doom report.

The S&P 500 may rise 40 to 50 points as markets are now “extremely oversold,” said Marc Faber, the publisher of the Gloom, Boom & Doom report. Photographer: Jonathan Fickies/Bloomberg

A businessman walks past an electric quotation board flashing the Nikkei index's drop at a window of a security company in central Tokyo on August 5, 2011. Tokyo shares plunged following a sharp selloff on U.S. and European markets amid worries over the American economy and the European debt crisis. Photograph: Toshifumi Kitamura/AFP/Getty Images

Asian stocks fell the most since March, set for its largest weekly rout since February 2009, the New Zealand dollar weakened for a fifth day, while oil and wheat paced losses among commodities amid concern the U.S. recovery is petering out. Photographer: Kiyoshi Ota/Bloomberg

Stocks dropped for an eighth day, the longest losing streak since January 2010, and commodities declined on concern the U.S. recovery is faltering. The Swiss franc weakened and the yen strengthened.

The MSCI All-Country World Index sank 1.3 percent at 7:35 a.m. in New York. Standard & Poor’s 500 Index futures slid 0.3 percent, after rising as much as 0.3 percent. The VStoxx Index, a measure of European stock volatility, headed toward its biggest weekly increase since May 2010. The Swiss franc depreciated against 15 of its 16 most-traded peers, while the yen gained 0.5 versus the dollar. The S&P GSCI index of 24 commodities dropped 0.2 percent.

More than $4.5 trillion has been wiped off the value of equities worldwide since July 26. Markets are “extremely oversold,” Marc Faber, publisher of the Gloom, Boom & Doom report, said in a Bloomberg Television interview. The U.S. probably added 85,000 jobs last month, leaving the 9.2 percent unemployment rate unchanged, economists said before Labor Department data today that will cap a week of economic reports showing the recovery is slowing.

“Investors are coming to grips with how dramatically the global and U.S. economies have slowed in recent months,” Russ Koesterich, the San Francisco-based global chief investment strategist for the iShares unit of BlackRock Inc., said in a Bloomberg Television interview. His firm oversees $3.66 trillion as the world’s largest asset manager. “It’s not clear what steps governments can do to get us out of this.”

RBS, Allianz

The Stoxx Europe 600 Index slumped 1.3 percent, extending its loss for the week to 9.5 percent, the worst week since November 2008. Royal Bank of Scotland Group Plc fell 1.6 percent after reporting a first-half net loss that was wider than analysts had estimated. Allianz SE lost 3.8 percent after reporting second-quarter net income that missed analysts’ estimates. Both companies wrote down the value of their Greek debt holdings.

The S&P 500 index dropped 4.8 percent yesterday, the biggest decline since February 2009. The yield on the 10-year Treasury note rose almost one basis point to 2.41 percent, after it fell as low as 2.33 percent, the least since October. The two-year note yield increased two basis points after it dropped yesterday to a record 0.2527 percent. The Labor Department’s data are due at 8:30 a.m. in Washington.

Emerging Markets

The MSCI Emerging Markets Index sank 3.2 percent, the most since May 2010. Taiwan’s benchmark Taiex Index plunged 5.6 percent, the sharpest since November 2008, and the Kospi Index (KOSPI) fell 3.7 percent in South Korea. Hungary’s BUX Index lost 3.1 percent, taking it down more than 20 percent from its 2011 high, the threshold investors consider a bear market. Turkey’s ISE National 100 Index (XU100) slid 3.2 percent and Russia’s Micex Index fell 2.6 percent.

The MSCI gauge for developing nations has dropped 8.7 percent this week, its biggest weekly loss since May 2010, and is trading at a price-to-earnings ratio of 11, the lowest since March 2009.

“We’re looking at equities all the time and equities are looking better and better with all this turmoil,” Mark Mobius, who oversees about $50 billion as executive chairman of Templeton Asset Management’s emerging markets group, said in an interview on Bloomberg Television.

The Swiss franc weakened 0.8 percent to 1.0854 per euro, sliding from a record, and sank 0.6 percent versus the dollar after Swiss National Bank President Philipp Hildebrand called the currency’s strength “absurd” and said the SNB won’t exclude “further measures” to curb its gain.

Yen, Euro

The yen appreciated against all of its most-traded counterparts tracked by Bloomberg, a day after Japan sold its currency to stem gains that threaten the nation’s recovery. It was the third time the country sold its currency after six years of non-intervention that ended in September 2010.

The yen fell as much as 4.1 percent yesterday, its biggest intraday decline since October 2008.

The euro advanced 0.4 percent to $1.4152 today, paring its first weekly decline in three.

The GSCI commodities index dropped for an eighth day, the longest losing streak since December 2008. Gold climbed 1.2 percent to $1,665.57 an ounce and silver jumped 0.8 percent to $39.2325 an ounce. Oil declined 0.3 percent to $86.40 a barrel and copper slipped 1.7 percent in London.

The yield on the 10-year Italian bond dropped nine basis points to 6.10 percent after increasing as much as 20 basis points to the highest since 1997. Spain’s 10-year yield fell 26 basis points to 6.02 percent. The Portuguese yield slipped four basis points, sending the difference in yield with benchmark German bunds down nine basis points to 891 basis points.

To contact the reporters on this story: Stephen Kirkland in London at skirkland@bloomberg.net; Shiyin Chen in Singapore at schen37@bloomberg.net

To contact the editor responsible for this story: Stuart Wallace at swallace6@bloomberg.net

Strategists Stick With 17% S&P 500 Rally On Earnings - Bloomberg

Latest economic nes about Strategists Stick With 17% S&P 500 Rally On Earnings from Bloomberg

S&P 500 profit will rise 18 percent in 2011 and 14 percent in 2012, according to the average per-share analyst estimates in a Bloomberg survey. Photographer: Andrew Harrer/Bloomberg

Aug. 5 (Bloomberg) -- Marc Faber, publisher of the Gloom, Boom & Doom report, talks about global financial markets. Faber also discusses Federal Reserve monetary policy. He speaks from Zurich with Susan Li and John Dawson on Bloomberg Television's "On the Move Asia." (Source: Bloomberg)

Aug. 5 (Bloomberg) -- Mark Mobius, executive chairman of Templeton Asset Management’s emerging markets group, talks about the outlook for global stocks and his investment strategy. More than $4.4 trillion have been wiped out from equity market values worldwide amid a sell-off that drove the MSCI All-Country World Index down more than 10 percent from this year’s high into a so-called correction. Mobius speaks from Tokyo with John Dawson on Bloomberg Television's "On the Move Asia." (Source: Bloomberg)

Aug. 4 (Bloomberg) -- Joseph McAlinden, chief investment officer at Catalpa Capital LLC, Dennis Hynes, chief market strategist at R.W. Pressprich, and Adam Seessel, director of research at Martin Capital Management, talk about today's selloff in the U.S. equity market and investment strategy in the current economic climate. They speak with Pimm Fox on Bloomberg Television's "Taking Stock." (Source: Bloomberg)

Aug. 2 (Bloomberg) -- Bill Gross, who runs the world's biggest bond mutual fund at Pacific Investment Management Co., talks about the U.S. debt ceiling compromise passed by Congress and signed into law by President Obama, the outlook for U.S. tax policy and the state of the economy. Gross, speaking with Carol Massar on Bloomberg Television's "Street Smart," also discusses Federal Reserve policy and Pimco's investment strategy in the current climate. (Source: Bloomberg)

Wall Street has never been more sure that the Standard & Poor’s 500 Index will rally in 2011, even after speculation the U.S. economy is heading for a recession prompted the biggest plunge since the bull market began. Photographer: Jin Lee/Bloomberg

Wall Street has never been more sure that the Standard & Poor’s 500 Index will rally in 2011, even after speculation the U.S. economy is heading for a recession prompted the biggest plunge since the bull market began.

Chief strategists at 13 banks from Barclays Plc (BARC) to UBS AG (UBSN) see the benchmark measure of American equity surging 17 percent through Dec. 31, the average estimate in a Bloomberg survey. Their projection that the index will reach 1,401 hasn’t budged in four weeks, while mounting concern U.S. growth is slowing drove the S&P 500 down 11 percent since July 22, including yesterday’s 4.8 percent tumble.

About $1.8 trillion has been erased from American equities as reports on manufacturing and consumer spending showed the world’s largest economy is slowing. Forecasters at UBS and Deutsche Bank AG (DBK) say rising profits mean the S&P 500 deserves a higher price-earnings ratio than the 28-month low reached yesterday. A year ago, strategists also remained bullish after a 14 percent drop, and proved prescient as the S&P 500 rallied 20 percent from its August low.

“I’m reluctant to overreact to some shorter-term weakness, no matter how real it is, because the market has proven to be unbelievably resilient,” Jonathan Golub, the chief U.S. market strategist at UBS in New York, said in an Aug. 3 phone interview. “If you would have been acting that way for the last two years, you would have gotten killed by this market. Companies have done an absurdly good job of managing through this environment.”

Most Since 2009

Golub says the S&P 500 will end the year at 1,425. It fell yesterday to an eight-month low of 1,200.07 amid a global rout, extending a nine-day retreat to 11 percent. That was the biggest loss over the same amount of time since March 9, 2009, when the gauge ended a 17-month bear market. The MSCI All-Country World Index slid 4.1 percent yesterday, the most since March 2009. The Stoxx Europe 600 Index fell to the lowest level since July 2010, while Brazil’s index sank the most since 2008, as commodities producers dropped.

The S&P 500 rose 1.5 percent to 1,217.77 at 9:35 a.m. in New York after the U.S. Commerce Department said employers added more jobs than forecast in July, the jobless rate fell and wages climbed, easing concern the economy is grinding to a halt.

Fed Action

A year ago, stocks also fell as investors speculated the U.S. economy would contract. Equities plunged until Federal Reserve Chairman Ben S. Bernanke foreshadowed $600 billion in bond purchases meant to prevent deflation and stimulate growth at a Aug. 27, 2010, meeting in Jackson Hole, Wyoming.

Bill Gross, who runs the world’s biggest bond fund at Pacific Investment Management Co., told Bloomberg Television on Aug. 2 that another asset-purchase program may be announced by the Fed, even after President Barack Obama signed a deficit reduction plan that demands less government spending.

Should a plan materialize, it won’t have the same impact as last year, said Mark Luschini of Janney Montgomery Scott LLC, which manages about $54 billion.

“The macroeconomic issues are trumping the good earnings picture,” Luschini, the chief investment strategist at the Philadelphia-based firm, said in a phone interview on Aug. 3. For valuations to rise, “we’d have to have better economic conditions than we do at the moment, and that’s not evident,” he said.

Expecting Growth

Strategists say earnings growth will fuel gains. S&P 500 profit will rise 18 percent in 2011 and 14 percent in 2012, according to the average per-share analyst estimates in a Bloomberg survey. More than 75 percent of corporations in the index have exceeded earnings estimates for the second quarter, with total income topping projections by 5.2 percent.

Credit Suisse Group AG (CSGN) and HSBC Holdings Plc (HSBA) advised investors to buy equities today. Andrew Garthwaite, a London- based strategist at Credit Suisse, reiterated an “overweight” recommendation on stocks even as he cut his year-end forecast for the S&P 500 to 1,350.

“Our economists are not forecasting a recession and, indeed, are looking for U.S. growth to accelerate in the second half,” Garry Evans, global head of equity strategy at HSBC in Hong Kong, wrote in a note today. “Investors should look to raise equity risk gradually over the summer.”

Even as companies from Ford Motor Co. (F) to Boeing Co. beat forecasts, the S&P 500 has plunged as investors turned their attention to reports showing slower economic growth. Consumer spending fell 0.2 percent in June, personal incomes grew at the slowest pace since November and an index of American manufacturing sank to a two-year low.

Not ‘Well-Reasoned’

“It’s unlikely I will change my view because we had a bad week or get really excited because we had a good week,” Tobias Levkovich, Citigroup Inc. (C)’s chief U.S. equity strategist in New York, said in an Aug. 3 phone interview. “That’s not a well- reasoned market outlook,” said Levkovich, who forecasts the S&P 500 will end the year at 1,400. “That’s a reactive trader mindset, but that’s not what I’m supposed to be doing.”

The combination of falling prices and rising profits has driven the S&P 500’s price-earnings ratio down 17 percent since Feb. 18, data compiled by Bloomberg show. At 13.2 times profit, the valuation is 20 percent below the average since 1954.

Following the drop in valuations, “our view is growth picks up, and like last summer/fall as the data turn up, they will take the equity market up with it,” Binky Chadha, Deutsche Bank’s chief U.S. equity strategist in New York, said in an Aug. 2 e-mail. He said the index will reach 1,550, the highest projection in the Bloomberg survey.

Last Year’s Rebound

The S&P 500 bottomed in 2010 at 1,022.58 on July 2. Gross domestic product expanded at an annual rate of 2.5 percent and 2.3 percent in the third and fourth quarters. The stock index rallied 10 percent to 1,127.79 through Aug. 9, before slipping 7.1 percent to 1,047.22 by Aug. 26.

At the time, strategists said the index would rise to 1,234 through the end of 2010, according to the average estimate. Three days later, Bernanke said the central bank would “do all that it can” to sustain growth, foreshadowing the bond-purchase program revealed two months later. The August announcement helped catapult the S&P 500 to 1,257.64 as of Dec. 31 and 1,343.01 by Feb. 18, a 28 percent advance.

Laszlo Birinyi, one of the first investors to recommend buying stocks when the bull market began in March 2009, said this week that stocks shouldn’t be abandoned.

More Scotch

“It’s like all these times when you second-guess yourself, and you probably wake up a little earlier than you’re used to, and maybe you put an extra finger of scotch in the glass,” Birinyi said in an Aug. 2 telephone interview. “It’s probably a good idea to have a gut check once in a while, because it makes you review and rethink your process. Our view is that this is still a market of some duration.”

The S&P 500 had the second-best performance in 2011 among the world’s 10 biggest stock markets through yesterday, even after the 12 percent slump since April 29 brought the year-to- date decline to 4.6 percent. China’s Shanghai Stock Exchange Composite Index did best with a 4.4 percent drop. Japan’s Topix lost 8.1 percent, while the FTSE 100 Index (UKX) of U.K. stocks dropped 8.6 percent.

“Doing this 22 years, to me this has to be the type of bottoming that the U.S. needed to just clean the slate,” Brian Belski, the New York-based chief investment strategist at Oppenheimer & Co., said in a telephone interview yesterday. “A year ago, we were only a couple quarters into the rebound, now we’re further in. There was less belief a year ago because nobody really believed forward earnings growth. Now they’ve proven themselves.” He estimates the S&P 500 will reach 1,325.

No Contraction

Barry Knapp, the New York-based chief U.S. equity strategist at Barclays, said that it’s unlikely the economy will contract even though data show a slowdown. The Citigroup Economic Surprise Index has averaged negative 95.05 since sinking on June 3 to negative 117.20, meaning reports were missing the median estimate in Bloomberg surveys by the most since January 2009.

“If you sell stocks at 1,250, that’s a bet we’re going back to a recession, and we don’t buy that,” Knapp said in a telephone interview yesterday. His year-end projection is 1,450. “The probability of the U.S. going back into a recession is low. These things have a way of running their course.”

To contact the reporters on this story: Whitney Kisling in New York at wkisling@bloomberg.net; Inyoung Hwang in New York at ihwang7@bloomberg.net; Lynn Thomasson in Hong Kong at lthomasson@bloomberg.net

To contact the editors responsible for this story: Nick Baker at nbaker7@bloomberg.net; Nick Gentle at ngentle2@bloomberg.net

US Stocks Rise In Volatile Session Amid Optimism Over Italy - WallStreet Journal

Hot economic news about US Stocks Rise In Volatile Session Amid Optimism Over Italy from WallStreet Journal NEW YORK (Dow Jones)--U.S. stocks surged Friday afternoon as investors applauded hints of progress in the euro-zone's debt crisis, underscoring a volatile session that saw major indexes whipsawed from steep declines.

The Dow Jones Industrial Average was recently up 91 points, or 0.8%, to 11476. The blue-chip index dropped as much as 245 points at its morning low, but bounced off the lows as investors cheered news that Italy will speed up its fiscal consolidation timetable.

Italy plans to push labor reforms and introduce a balanced-budget amendment in its constitution as part of an agreement with European Union authorities. Prime ...

Lululemon Athletica Up 22.9% Since SmarTrend Uptrend Call (LULU) -Investor's Business Daily

Hot news about Lululemon Athletica Up 22.9% Since SmarTrend Uptrend Call (LULU) -Investor's Business Daily
Aug 05, 2011 (SmarTrend(R) Spotlight via COMTEX) -- SmarTrend identified an Uptrend for Lululemon Athletica (LULU) on June 15, 2011 at $45.98. In approximately 2 months, Lululemon Athletica has returned 22.9% as of today's recent price of $56.52.

In the past 52 weeks, shares of Lululemon Athletica have traded between a low of $15.54 and a high of $64.49 and are now at $56.52, which is 264% above that low price.

Lululemon Athletica is currently above its 50-day moving average of $53.90 and above its 200-day moving average of $41.12. Look for these moving averages to climb to confirm the company's upward momentum.

In the last five trading sessions, the 50-day MA has climbed 1.67% while the 200-day MA has risen 1.82%.

SmarTrend will continue to scan these moving averages and a number of other proprietary indicators for any shifts in the trajectory of Lululemon Athletica shares.

Write to Chip Brian at cbrian@mysmartrend.com

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SmarTrend analyzes over 5,000 securities simultaneously throughout the trading day and provides its subscribers with trend change alerts in real time. To get a free trial of our trading calls and maximize your trading results, please visit http://www.mysmartrend.com

Get exclusive, actionable insight into how the market is expected to trend prior to market open with our free morning newsletter. Sign up at: http://www.mysmartrend.com/signup

 Comtex News Network, Inc. 2011

Dems, GOP React To Debt Downgrade - CBS News

 Latest economic news about Dems, GOP React To Debt Downgrade from CBS News
Senate Majority Leader Harry Reid is seen during a news conference on debt ceiling legislation, on July 27, 2011, on Capitol Hill in Washington, DC.

(Credit: Getty Images/Karen Bleier)

(CBS/AP) Following the news Friday of Standard and Poor's downgrade on the U.S. debt, several politicians from both sides of the aisle offered their reactions.
Democratic Senate Majority Leader Harry Reid released a statement: "This makes the work of the joint committee all the more important, and shows why leaders should appoint members who will approach the committee's work with an open mind -- instead of hardliners who have already ruled out the balanced approach that the markets and rating agencies like S&P are demanding."

Reid was referring to the special bipartisan congressional committee -- made up of six Democrats and six Republicans -- assigned to the task of recommending further deficit and debt reduction ideas.

S & P statement on U.S. debt downgrade
Treasury Dept.: Downgrade flawed by $2-Trillion error

Republican Speaker of the House John Boehner offered his take on the downgrade in a statement: "This decision by S&P is the latest consequence of the out-of-control spending that has taken place in Washington for decades. The spending binge has resulted in job-destroying economic uncertainty and now threatens to send destructive ripple effects across our credit markets."

He added: "Republicans remain committed to ensuring the United States always meets its obligations. Though we are outnumbered in Washington, we will continue to press Democrats to join us in taking meaningful steps to rein in our debt and deficits."
Also reacting to the news was U.S. Sen. Mark Kirk, who says President Barack Obama should recall Congress to improve the recently-passed $2 trillion deficit reduction plan.

The Illinois Republican says a recall of Congress by the president would reassure the markets. The Dow fell 5.8 percent this week, losing 513 points on Thursday alone.

Kirk said he believes the nation faces difficult times ahead, noting interest rates on home and auto loans and credit cards could go up "if we just sit back and watch things happen."

Some of the 2012 Republican presidential hopefuls also chimed in. Former House speaker Newt Gingrinch offered his opinion on the debt downgrade via his Twitter account: "The Obama disaster continues. Highest food stamp level and lowest credit rating in history in the same 24 hours."

Mitt Romney, another GOP candidate with an eye towards the White House, said on Friday: "America's creditworthiness just became the latest casualty in President Obama's failed record of leadership on the economy. Standard & Poor's rating downgrade is a deeply troubling indicator of our country's decline under President Obama."

Romney's fellow challenger, Michele Bachmann, strongly blamed President Obama for what happened with S&P: "This President has destroyed the credit rating of the United States through his failed economic policies and his inability to control government spending by raising the debt ceiling."

Earlier, a Treasury Department spokesperson commented about S&P's decision: "A judgment flawed by a $2-trillion error speaks for itself."

Honda Recall: 1.5 Million Vehicles For Software Fix - Christian ScienceMonitor

Latest news about Honda Recall: 1.5 Million Vehicles For Software Fix from Christian ScienceMonitor
Honda recall involves transmission software in recent Accords, CR-Vs, and Elements. Honda recall notifications to begin Aug. 31.

WASHINGTON
Honda is recalling about 1.5 million vehicles in the U.S. to update the software on the automatic transmission to decrease the possibility of transmission damage.

Skip to next paragraph


The Honda recall affects certain 2005-2010 4-cylinder Accord, 2007-2010 CR-V and 2005-2008 Element vehicles.

The company said Friday that without the change, the transmission's secondary shaft bearing can be damaged when the car is shifted too quickly. Honda said that can happen when a driver tries to get the vehicle dislodged from mud or snow.

Honda says it will begin sending recall notifications to customers on Aug. 31. The company says that no injuries or deaths have been reported because of the problem.

Meanwhile, the National Highway Traffic Safety Administration says it has closed investigations into Ford Freestar and Mercury Monterey, and GM's Chevrolet Tahoe and GMC Yukon.

Big Sean Vehemently Denies Allegations -AceShowbiz

Hot celebrity news about Arrested For Sexual Assault, Big Sean Vehemently Denies Allegations from AceShowbiz

The 'My Last' rapper, along with a friend, has been charged with forcible touching, unlawful imprisonment and sex abuse after a woman filed a complaint against them at a New York concert.

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is denying allegations that he has sexually assaulted a woman during a concert in Buffalo, New York. The G.O.O.D. Music rapper was arrested on Thursday, August 4 at around 9:50 P.M. ET after the woman filed the complaint against him and friend Willie Hansbro at the Artpark State Part where he performed with .
Both the 23-year-old and his pal were charged with misdemeanor counts of forcible touching, unlawful imprisonment in the second degree and sex abuse in the third degree. They were issued appearance tickets and released on $500 bail. They will have to appear in Niagara County Court in the town of Lewiston on September 6.
On Friday, August 5, Sean's lawyer Scott E. Leemon confirmed the arrest. "Last night, recording artists Sean 'Big Sea' Anderson and Willie 'Sayitainttone' Hansbro were arrested and then immediately released by the NY State Police in connection with an allegation made by a female who was at their concert in Lewiston, New York," he said in a statement.
Leemon continued his statement by saying, "Both men were charged with misdemeanors," before taking note that "both vehemently deny the allegations." The attorney added, "I am confident, that after further investigation, both men will be vindicated."

© AceShowbiz.com

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Colts Finally Get Most Veterans On Practice Field - San Antonio Express

Hot news about Colts Finally Get Most Veterans On Practice Field from San Antonio Express

ANDERSON, Ind. (AP) — All week, Joseph Addai stood to the side of his teammates and caught footballs from a machine.

All week, the Colts starting running back lobbied his coaches to do more. Coach Jim Caldwell couldn't budge.

On Friday, less than 24 hours after the new labor pact was ratified by the players, Addai and about a dozen of his teammates finally made it onto the practice field for the first time since training camp opened Sunday at Anderson University.

"I was just itching to get out and do a little something, and Caldwell was always pushing me back," Addai said. "I understand the business side. I just wanted to get out there."

Addai had good reason after enduring the longest, most tenuous offseason of his six-year career.

With his contract expiring and the Colts' reputation for not re-signing running backs, Addai worried Indy wouldn't take him back. The longest work stoppage in league history even prevented him from finding a job with another team. He spent the summer working out at his alma mater, LSU, waiting for a settlement, and when it finally came last week, Addai wasn't exactly the hottest name in the free-agent frenzy.

Turns out, the Colts wanted him all along.

Within hours of reaching a new five-year deal that lowered Peyton Manning's salary cap number from $23.1 million to $16 million, they used some of the savings to re-sign their best blocking back to a three-year, $14 million deal.

The wait, however, wasn't over.

The NFL's unprecedented post-lockout rules prevented veteran free agents from practicing until a new collective bargaining agreement was ratified. Players voted Thursday, after the Colts had finished practice, keeping Addai and the other Colts from getting into pads until midafternoon Friday.

"They were constantly asking me questions about what can and can't I do," Caldwell said. "Often times it was simply because of the eagerness to get going. But some of them wanted to know if they could get involved in this kind of activity, or could help the coach do this, and in most cases we had to tell them no. "

Addai was one of the most active lobbyists, but far from the only one.

Starting safety Melvin Bullitt, the longtime replacement for the oft-injured Bob Sanders, hadn't been in pads since a right shoulder injury ended his season in early October.

"When they told us we couldn't practice until Friday, at first, you got a little smile, then after the first 20 minutes you're like, 'Man, this is boring just being out here watching,'" Bullitt said. "I guess that's just the competitive nature a lot of guys have."

The biggest name missing: Manning, who remains on the physically unable to perform list after undergoing neck surgery in May. Caldwell has not provided a timetable for Manning's return, though owner Jim Irsay told reporters Wednesday night that Manning was progressing.

Manning is a known quantity to the Colts.

Indy's newcomers are not.

Since Monday, the Colts have signed three former first-round picks — defensive lineman Jamaal Anderson, linebacker Ernie Sims and defensive tackle Tommie Harris.

The biggest question in the group is Harris' health. After three Pro Bowl seasons with the Bears, Harris endured three injury-plagued seasons and his production declined. He spent his entire career with the Bears in the same defensive system the Colts use, and now Harris wants to show he can still be a disruptive force in the middle.

"It never was my knees though I don't want to say what it was, but it's all good now," he said. "I want to go out and prove it, and what better way to do it than with Peyton Manning and Dwight Freeney. There was no doubt in my mind this is where I wanted to play."

Sims and Anderson also have something to prove.

Sims is returning to the defensive style that allowed him to post three straight 100-tackle seasons in Detroit. In different defenses with the Lions and Eagles the past two seasons, Sims had a combined total of 104.

The 25-year-old Anderson, taken No. 8 overall in 2007, never met Atlanta's expectations as an elite pass rusher, though he did develop into a solid run stopper.

They all practiced for the first time Friday along with right tackle Ryan Diem, left guard Kyle DeVan, defensive tackle Antonio Johnson and kicker Adam Vinatieri.

But for Addai, getting back to football was a refreshing twist, and there was nothing better than hearing the fans roar after a long run toward the end of practice.

"I've been looking forward to this day for a long time," he said. "I remember two or three weeks ago, I was unemployed, so I'm blessed to be back here."

A handful of Colts got nicked up in the afternoon. Pro Bowl tight end Dallas Clark needed his ankle retaped before returning to practice. Linebacker Kavell Conner, who is expected to vie with Sims for the starting job at weak side linebacker, left early with an apparent injury to his right hand. Defensive back Chris Rucker, a sixth-round draft pick, missed practice with a walking boot covering his left foot.

S&P Downgrades US Credit Rating - Los Angeles Times

Latest hot economic news about S&P Downgrades US Credit Rating from Los Angeles Times
Reporting from Washington—

Standard & Poor's downgraded the U.S. government's credit rating Friday for the first time in history, saying the recent plan worked out to raise the federal debt ceiling "falls short" of what's needed to stabilize the nation's longer-term finances.
The credit rating agency also said the partisan stalemate that put the U.S. on the brink of default this week did not bode well for efforts to reduce the nation's soaring debt.
"The political brinkmanship of recent months highlights what we see as America's governance and policymaking becoming less stable, less effective and less predictable than what we previously believed," said S&P, one of three leading credit rating agencies.
"The statutory debt ceiling and the threat of default have become political bargaining chips in the debate over fiscal policy."
U.S. debt now will carry a rating of AA-plus instead of the coveted AAA, dropping it into the same general category as countries such as Japan, China, Spain, Taiwan and Slovenia.
The downgrade could increase U.S. borrowing costs because its bonds could be considered more risky. The higher interest rates the U.S. Treasury might have to charge for its bonds could spill over into other areas, such as mortgages.
But the impact of S&P's move could be muted because Treasury bonds are still considered a safe haven, particularly in stressful financial conditions. In addition, the other two leading credit rating agencies — Moody's Investors Service and Fitch Ratings — decided this week to keep their AAA rating for U.S. debt for now.
Both those firms, however, warned that a downgrade could come if the nation didn't do more to reduce its debt, now at more than $14.3 trillion.
Still, the S&P downgrade was a significant blow to the nation's reputation. And the timing of the announcement, coming late Friday night after a long week of financial market turmoil, "seems like a sucker punch," said Mark Vitner, a senior economist at Wells Fargo.
"Why would you do this now?" he asked.
Obama administration officials were upset, saying the downgrade was based on a faulty analysis.
S&P initially made a $2-trillion miscalculation in its economic projections, which administration officials noticed Friday afternoon when the firm shared its analysis with them before publicly releasing it, said a person familiar with the situation who requested anonymity because of the sensitivity of the matter.
But S&P would not agree to change its rating or take more time to do a new analysis, the person said.
"A judgment flawed by a $2-trillion error speaks for itself," said a Treasury Department spokesperson.
S&P said it agreed to change the economic projections but that it did not affect the ratings decision.
Shortly after the downgrade was announced, House Speaker John A. Boehner (R-Ohio), blamed President Obama and congressional Democrats for not doing more to reduce the deficit, even though Obama had pushed for a much larger "grand bargain" that included tax increases and cuts to entitlement programs, such as Medicare.
"This decision by S&P is the latest consequence of the out-of-control spending that has taken place in Washington for decades," Boehner said.
Senate majority leader Harry Reid (D-Nev.) said the solution would need to include increased revenues.
"The action by S&P reaffirms the need for a balanced approach to deficit reduction that combines spending cuts with revenue-raising measures like closing taxpayer-funded giveaways to billionaires, oil companies and corporate jet owners," Reid said.

Volatile Markets Reverse Course On EU, Italy Deal;Euro, DJIA Up - WallStreet Journal

latest updated news about Volatile Markets Reverse Course On EU, Italy Deal;Euro, DJIA Up from WallStreet Journal
NEW YORK (Dow Jones)--In the latest twist on an extremely volatile trading day, risk sentiment improved Friday after news that Italy agreed to speed up fiscal reforms.

The Dow Jones swung wildly throughout the day, and was recently up 123 points, or 1.1%, to 11507. It has traded in a 416-point range as market participants traded bouts of excitement over upbeat news on U.S. jobs and European debt problems with concerns about the long-term health of the global economy.

"The somewhat stabilizing news out of Europe is allowing us to bounce from very over-sold levels," said Tom Donino.

US Loses AAA Credit Rating For First Time - Voice Of America

Latest economic news about US Loses AAA Credit Rating For First Time from Voice Of America

Photo: Reuters

The Standard & Poor's building in New York, August 2, 2011

Credit rating agency Standard & Poor's has downgraded the U.S. credit rating for the first time ever, from the top rank of AAA to AA+.
S&P said it lowered the rating because the deficit reduction plan Congress passed on Tuesday did not go far enough to stabilize the country's debt situation.
The agency said Friday's downgrade reflects its view that the "effectiveness, stability and predictability of American policymaking and political institutions have weakened" to a greater degree than it envisioned several months ago. It said this weakening has taken place at a time of "ongoing fiscal and economic challenges."
S&P said the outlook on the new rating is "negative," meaning another downgrade could follow within the next two years.
The U.S. Treasury Department called the S&P judgment "flawed," saying the agency made a $2 trillion error in its calculation of U.S. deficits. S&P acknowledged the error, but upheld its decision.
U.S. President Barack Obama and Congress reached a deal a few hours before the deadline Tuesday to increase the nation's $14.3 borrowing limit and avoid an unprecedented default on the government's financial obligations.  The deal calls for reducing the deficit by more than $2 trillion over 10 years.  S&P had called for $4 trillion in savings.
U.S. lawmakers' responses to the lowering of the credit rating reflected party politics. The Senate majority leader, Democrat Harry Reid, said the action by S&P "reaffirms the need for a balanced approach to deficit reduction" that he said would combine spending cuts with revenue-raising measures like ending tax cuts for the wealthiest Americans. Republican Senator Jim DeMint used the news to criticize Tuesday's debt deal, saying it was passed "over conservative objections" and has already had what he called "the obvious effect" of the loss of America's credibility around the world.
The other two major credit rating agencies, Moody's and Fitch, have so far not downgraded the U.S. credit rating.
The S&P decision came on the same day the U.S. Labor Department announced a net gain of 117,000 jobs in July, and a slight decline in the unemployment rate to 9.1 percent.  Friday's report was better than economists had predicted.
In his weekly address Saturday, President Obama said the nation's "urgent mission" has to be getting the economy growing faster and creating jobs. He called on Democrats and Republicans in Congress to work together to take steps to spur growth when they return from their recess in September. He promoted moves such as extending tax cuts for working and middle class families and passing long-stalled trade deals with Colombia, Panama and South Korea.
^{Watch President Obama's weekly address:}


In the weekly Republican address, Representative Michael Grimm of New York said Friday's jobs report shows Obama's policies are not working. Grimm said the debt limit deal takes a step in the right direction, but is far from perfect. He said the cuts and reforms do not go nearly far enough.
The U.S. is the world's largest economy, but investors have voiced little confidence in the country's sluggish recovery, even with the agreement on the debt ceiling plan.
^{Watch weekly Republican address:}


Some information for this report was provided by AP, AFP and Reuters.










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Heather Locklear Cleavage On Display: Did She Get Boob Job? - GatherCelebs News Channel

Heather Locklear Cleavage On Display: Did She Get Boob Job? from Gather Celebs News ChannelHeather Locklear displayed some massive cleavage during a night out on the town. The almost 50-year-old actress was out at Asprey in London for a charity dinner.

In her evening out, Heather Locklear wore a strappy black tank top, which barely contained her breasts. Of course, the massive amount of boobage has already started the boob job questions. Did the actress get herself an early birthday present?

Back in March, she told Regis and Kelly that she had never once had any type of plastic surgery. Of course, she could have gone out and bought this new set of breasts after that interview. In fact, she admitted that it was something she would think about "in the future." Well, August is the future.

What do you think of Heather Locklear's amazing cleavage display at the charity dinner? Do you think it was just a good bra and a tight top, or did she benefit from some surgical enhancements?

Like this article? See more by Kate James at Gather.com

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Hiroshima Remembers Bombing Amid Nuclear Crisis - CTV.ca

 Hot news about Hiroshima Remembers Bombing Amid Nuclear Crisis from CTV.ca
Against the backdrop of the Atomic Bomb Dome, paper lanterns float down along Motoyasu River at Hiroshima Peace Memorial Park in Hiroshima, western Japan, Saturday, Aug. 6, 2011. (AP / Koji Sasahara)

HIROSHIMA, Japan — The Japanese city of Hiroshima on Saturday marked the 66th anniversary of the bombing, as the nation fights a different kind of disaster from atomic technology -- a nuclear plant in a meltdown crisis after being hit by a tsunami.

The site of the world's first A-bomb attack observed a moment of silence at 8:15 a.m. Saturday (2315 GMT Friday) -- the time the bomb was dropped on Aug. 6, 1945, by the United States in the last stages of World War II.

The bomb destroyed most of the city and killed as many as 140,000 people. A second atomic bombing Aug. 9 that year in Nagasaki killed tens of thousands more and prompted the Japanese to surrender.

Prime Minister Naoto Kan on Saturday laid a wreath of yellow flowers at Hiroshima Peace Memorial Park and reiterated Japan's promise to never repeat the horrors of Hiroshima, whose suffering continues today because of illnesses passed down over generations.

Japan has long vowed never to make or possess nuclear weapons, but embraced nuclear power as it aimed to rebuild and modernize after the war.

Crowds of people clutching Buddhist prayer beads bowed their heads Saturday in commemorating the dead as pigeons were released during the solemn gathering repeated every year before the skeletal dome of a bomb-ravaged building.

The prime minister, in his speech, also touched on Japan's more recent nuclear catastrophe at the northeastern Fukushima Dai-ichi power plant, where a massive tsunami set off by a 9.0 magnitude earthquake on March 11 knocked out backup generators that powered the plant's cooling mechanisms.

Kan repeated a promise to embrace renewable energy and rely less on nuclear power.

"Japan is also working to revise its energy policy from scratch," Kan said. "I deeply regret believing in the security myth of nuclear power."

Hiroshima mayor Kazumi Matsui stopped short of calling for a nation without nuclear power while retierating his pledge to work toward a world without atomic weapons.

But he acknowledged that the trust people had in the safety of nuclear power had been damaged.

"Some seek to abandon nuclear power altogether with the belief that Mankind cannot co-exist with nuclear energy, while others demand stricter regulation of nuclear power and more renewable energy," he said.

US Stock Futures Jump Following Better-Than-Expected Jobs Report - WallStreet Journal

Latest economic hot news about US Stock Futures Jump Following Better-Than-Expected Jobs Report from WallStreet Journal NEW YORK (Dow Jones)--U.S. stock futures pointed sharply higher Friday morning in volatile trading after a better-than-anticipated jobs report eased some concern following the drubbing suffered in the previous session.

About an hour before the open, Dow Jones Industrial Average futures soared 106 points to 11477. The index bounced sharply following the jobs data; futures had been down 150 points overnight.

The Dow tumbled 512 points Thursday, its biggest point drop since Dec 1, 2008.

Brown Presses NOAA For Policing Documents - Gloucester Daily Times

U.S. Sen. Scott Brown Monday formally asked the National Oceanic and Atmospheric Administration for all memoranda and documents used by Commerce Secretary Gary Locke to reach his decision not to discipline or punish the then- director of federal fisheries law enforcement or any of his agents and litigators involved in the mistreatment of fishermen documented by investigators.

In a letter to Eric Schwaab, administrator of the National Marine Fisheries Service, Brown specifically asked for "41 documents you located but did not release in response" to a private attorney, whom the Times has identified as Paul Muniz, of Burns & Levenson, Muniz represents the Gloucester Seafood Display Auction.

The auction was one of 11 businesses or individuals identified by Locke as having been victimized by overzealous law enforcement or miscarriages of justice and given apologies and reparations in May.

Brown also specifically asked for "all memoranda from the Commerce Department Office of Assistant General Counsel for Administration Barbara Frederick (or staff) regarding the possibility of discipline for current or former leadership at the NOAA Office of General Counsel for Enforcement Litigation."

In his letter, Brown expressed anger at what he perceived as NOAA's decision to flout previous requests for documents in preparation of a Senate subcommittee hearing into NOAA practices. And the senator asserted that the attitude is that of an agency that considers itself "above congressional oversight."

It was Brown's idea to bring a Senate subcommittee to Boston for a June hearing on NOAA spending and law enforcement abuses. The Faneuil Hall hearing came after findings by both the Commerce Department inspector general and a special judicial master assigned by Locke detailed cases of potentially reversible miscarriages of justice."

Brown's letter to Schwaab probed substantively for the answer to a question he asked that came to define the Faneuil Hall hearing: "What does it take to get fired at NOAA?" Brown asked.

Brown quoted from the decision memo released by Locke in May when he apologized to 11 businesses and distributed nearly $700,000 in reparations based on the report of Special Master Charles B. Swartwood III.

Locke found a "systemic failing," yet that finding warranted no punishment to any NOAA personnel although Dale J. Jones Jr., the director of law enforcement, and the entire Northeast Office of agents and ligitators, based in Gloucester. Jones has been reassigned, while the key Gloucester agents have been reassigned or allowed to retire.

"At bottom," Locke wrote, "these problems were not the product of individual bad acts, but rather the result of conduct enabled and even encouraged by the management and enforcement culture in place at the time."

"In order to better understand Secretary Locke's decision," Brown wrote, "I am requesting that you provide me with all documents related to that legal review," Brown wrote.

He also expressed frustration at NOAA's refusal to provide documents sought as early as May 27 in preparation of the subcommittee hearing.

"Today is July 29, and I have not received the missing documents or the answers necessary to complete the hearing record...," Brown wrote. "While NOAA's initial unwillingness to provide certain documents was an unfortunate situation with a number of plausible explanations, I must now consider the logical conclusion that your agency feels itself to be above congressional oversight."

Brown added that such "behavior is disrespectful to the American people, Congress and the Massachusetts fishermen who have suffered because of NOAA's mismanagement of the fisheries.

"It is clear that NOAA has thus far failed to honor President Obama's stated commitment to transparency," he added.

The Brown letter also contains a refutation of what apparently was NOAA's argument that congressional requests for information are covered by the U.S. Freedom of Information Act.

"Obviously," wrote Brown, an attorney, "in their private capacity, members of Congress have the same rights under FOIA to obtain government information enjoyed by 'any person.'... But as the legislative history of FOIA makes clear, 'the Congress has the additional rights of access to all government information which it deems necessary to carry out its functions."

Brown is the ranking Republican on the Senate Subcommittee of the Homeland Security and Governmental Affairs Committee that came to Boston's Faneuil Hall on June 20.

Sen. Tom Carper, a Delaware Democrat, and chairman of the subcommittee, who came to Boston for the hearing, did not respond to questions about Brown's letter, and Schwaab, through his spokeswoman Monica Allen, also declined to answer questions posed the Times regarding Brown's letter.

"Eric Schwaab will respond directly to the senator's letter," Allen said in an email.

Locke was confirmed last week by the Senate to be the new ambassador to China.

California utility executive John Bryson, has been nominated to succeed Locke at Commerce but has yet to be confirmed.

Richard Gaines can be reached at 978-283-7000, x3464, or at rgaines@gloucestertimes.com.

Man Hurt As Shots Fired At House - BBC News

2 August 2011 Last updated at 02:35 ET

A 25-year-old man was taken to hospital to be treated for his injuries

A man was shot after an argument broke out in the street outside a house in Liverpool.

The man, 25, sustained an elbow injury in the incident, in Garston on Monday, when shots were fired at the house.

Two children and three other adults, who were inside the McBride Street house when the gun was fired at about 18:50 BST, were unhurt.

A black car was seen leaving the scene and a man, 27, was later arrested on suspicion of attempted murder.

Police cordon

He was detained in Toxteth and is due to be questioned later.

Merseyside Police believe a row broke out between the injured man and three others, before the shots were fired.

There was some damage to the front windows of the house and the man was taken to hospital to be treated for his injuries.

The scene was cordoned off while investigators were at the scene.

Police said a black Vauxhall Vectra was found in Kelvin Grove in Toxteth a short time later.

Officers are appealing to anyone who may have seen a black car being driven erratically around McBride Street at the time of the shooting, or anyone who saw anything suspicious, to contact them.