Stock Market Results: October 31, 2008 Stocks Post Best Weekly Advance in Years

Stocks started the session in negative territory before making their way higher to tout gains in excess of 3%. Although another late selling effort pared gains, the stock market still finished higher. Friday's advance put an end to the month-long streak of failing to register back-to-back gains.

Earnings announcements were relatively light ahead of the opening bell, causing market participants to turn to other corporate announcements and economic data.
Integrated oil giant Chevron (CVX 74.60, +0.42) traded in choppy fashion after posting better-than-expected third quarter results. Its net income more than doubled, thanks largely to record high oil prices.

Oil prices were down more than 4% at their session low, but made a rallied late in the day to close roughly 3% higher near $68 per barrel. Despite the rally in crude prices, energy remained a laggard. It ended the session just 0.6% higher, up 13.3% for the week.

Tech (+0.1%) was also a notable laggard. Semiconductors fell 0.4% after Intel (INTC 16.03, -0.14) indicated current financial conditions could have a negative impact on operations.
Internet search companies Yahoo! (YHOO 12.82, -0.11) and Google (GOOG 359.36, -0.33) posted mixed results after reports suggested a business deal between the pair is looking unlikely due to regulators' requirements.

Financials emerged to provide leadership after lagging in the prior session. The sector closed 5.5% higher, more than any other sector, as every one of its industry groups advanced. Financials finished the week 11.6% higher.

Failing to participate in the gains, though, was Barclays (BCS 10.73, -2.88). Shares of the British bank sunk after it received nearly $12 billion in capital from a group of Middle East investors, according to reports.

Separately, Fed Chairman Bernanke stated in a prepared speech that the idea of privatizing GSEs and letting them compete as private mortgage insurers and securitizers has been discussed. He also stated that at least under the most stressed conditions, some form of government backstop may be necessary to ensure continued securitization of mortgages.

Many pundits continue pointing to the need to shore up the housing industry and, in turn, mortgage exposure on banks' balance sheets before the economy can get back on track.
Still, central banks continue using traditional tools to stimulate growth. Most recently, Japan's central bank announced a key overnight lending rate target cut to 0.3% from 0.5%.

In other economic data, the core PCE deflator was up 0.2%. Total PCE deflator was up 0.1%, as energy prices dipped. The third quarter employment cost index provided good news from an inflation standpoint, and with a softer labor market, there is reason to expect the favorable trend to persist.

September personal income and spending numbers were down 0.3%, reaffirming what was indicated in the advance third quarter GDP release.

For the week, investors pushed stocks more than 10% higher, whcih marks the best single-week advance in recent years. However, the stock market finished the month almost 17% lower, marking one of the worst monthly performances in decades.

A Continued Decline Likely For The GDP

The economy experienced its sharpest contraction in seven years during the last quarter. Consumers limited spending and businesses cut jobs and production from July to September. Analysts believe the Gross Domestic Product will fall further in the current quarter and will continue to decline during the first three months of next year.

Stock Market Midday Update: October 31, 2008 Looking For A Strong Week

Stocks are trading with healthy gains after opening the session in negative territory. Only defensive-oriented sectors exhibited resilience early on, but now seven of the 10 economic sectors are showing gains.

Should the stock market end the session higher, it would be the first back-to-back advance in over one month. Currently, the S&P 500 is poised to conclude the week 10.0% higher, though it is facing a loss of 17% for October.

Market participants received another dose of economic data this morning. The core PCE deflator was up 0.2%. Total PCE deflator was up 0.1%, as energy prices dipped. The numbers are likely to be lower in upcoming months. Additionally, the third quarter employment cost index provided good news from an inflation standpoint. With a softer labor market, there is reason to expect the favorable trend to persist in the fourth quarter.

September personal income and spending numbers were down 0.3%, which was not surprising after yesterday's advance third quarter GDP release. Despite indications of softer consumer spending, retailers are outperforming the broader market. They are currently up 2.7% this session. Retailers are likely to benefit from lower oil prices as fewer dollars at the fuel pump means more money for discretionary purchases.

A stronger dollar is helping put pressure on oil prices. The greenback is up an impressive 1.7% this session, when measured against a basket of foreign currencies. The U.S. dollar is up 12.1% year-to-date.

The dollar's recent strength is owed to international investors seeking safety from economic turmoil. Such turmoil has prompted central banks across the globe to cut interest rates. Most recently, Japan's central bank announced a key overnight lending rate target cut to 0.3% from 0.5%.

Crude prices are down 2.5% midsession. The commodity most recently traded hands for little more than $64 per barrel.

Crude oil prices hit an all-time high of $147 per barrel in the third quarter, helping Chevron (CVX 73.85, -0.33) more than double its net income. The company posted better-than-expected third quarter results.

Elsewhere in corporate news, Yahoo! (YHOO 13.12, +0.19) may be barred from reaching a search deal with Google (GOOG 357.83, -1.86), given regulators' trust concerns.
The financial sector (+2.7%) has emerged as a leader, after trailing in recent sessions. Barclays (BCS 10.91, -2.70) is a laggard, though, after disclosing it received a nearly $12 billion capital infusion from a group of investors from the Middle East, according to reports.

Barack Obama: 46 Year Old Political Virgin (Political Cartoon)

Stock Market Pre-Open Update: October 31, 2008 Futures Point to Slightly Lower Start

S&P futures vs fair value: -9.90. Nasdaq futures vs fair value: -21.30. Stock futures currently indicate a relatively negative bias ahead of the session's opening bell. The Japanese central bank has cut its unsecured overnight lending rate to 0.3% from 0.5%.

The move follows rate cuts by other Asian central banks yesterday. Barclays (BCS) is receiving a $12 billion capital infusion from a group of investors from the Middle East, according to reports. The Wall Street Journal is reporting that owed to regulatory concern a search deal between Yahoo! (YHOO) and Google (GOOG) is looking less likely.

On the earnings front, Aon (AOC) topped earnings per share expectations, as did American Electric (AEP). Electronic Arts (ERTS) posted a loss for its latest quarter, but it was still in-line with expectations.

US Economy Contracts, Signaling Local and Global Recession

U.S. economy shrank by 0.3 percent during the third quarter, as consumers reined in their spending, the Commerce Department said Thursday. It was the latest evidence of the toll the credit crunch and housing downturn have taken on growth.

The decline was somewhat smaller than most economists had expected but still represented a significant drop from the second quarter, when the economy expanded by 2.8 percent. Only a ramp-up in government spending kept the economy from shrinking even more, according to the Commerce Department.

Stock prices rose after the report's release, perhaps because most investors were expecting an even bigger drop in GDP. The Dow Jones industrial average closed up 189 points at 9,180.
"The key takeaway from the report is that the signals for private-sector spending were almost all negative," wrote Nigel Gault, chief U.S. economist for Global Insight. Residential construction and business equipment spending declined, while exports slowed, he noted.

Perhaps the most worrisome part of the report was a 3.1 percent decline in consumer spending, the sharpest drop since 1980, he said. Consumer spending typically accounts for two-thirds of U.S. economic activity and has an outsized impact on growth. Disposal personal income fell at an annual rate of 8.7 percent in the third quarter, the biggest drop since the data were first compiled in 1947.

"Everything went wrong for the consumers," wrote economist Sung Won Sohn, of California State University at Channel Islands. "The surge in oil price hurt spending after adjusting for inflation. The effects of the tax rebate during the second quarter are gone. The ongoing financial collapse and the plunge in consumer confidence did not help.

"Upcoming holiday sales will be one of the worst for decades. Consumers have neither income nor the confidence to go shopping," he said. The only bright spot for consumers has been the price of oil, which has fallen by more than half since the summer, he said.

The decline in growth almost certainly signals that a recession is under way, Sohn added.
The National Bureau of Economic Research, usually considered the official arbiter of whether recessions are taking place, hasn't yet called one. But most economists think a recession has already begun, citing the size of the labor market, which has declined every month this year.

The drop in growth comes at the tail end of an especially dramatic presidential campaign, in which the economic downturn has played a central role. Since the turmoil in the financial markets intensified last month, Republican John McCain has fallen behind Democrat Barack Obama, who has attempted to tie his opponent to what he calls the failed economic policies of President Bush.

Meanwhile, the Labor Department said that new claims for jobless benefits for the week ended Oct. 25 stood at a seasonally adjusted 479,000, unchanged from the previous week and above analysts' estimates of 475,000. Jobless claims above 400,000 are considered a sign of a struggling economy.

Bush administration officials insisted Thursday that while the GDP numbers were bad, the economy is beginning to rebound, thanks to steps taken by the Treasury Department and the Federal Reserve. They have included a series of interest rate cuts, including a half-point cut in the federal funds rate Wednesday, and the $700 billion rescue plan approved by Congress earlier this month.

"We know that while we're making a great deal of progress on the implementation of the rescue and freeing up of credit, it is going to take some time," said Commerce Secretary Carlos Gutierrez.

"We are expecting several difficult months, perhaps a couple of difficult quarters. The important thing is we are making progress, we're getting through it," he said.

The decline in consumer spending is a concern, Gutierrez said. But, he added, "We believe that can be traced directly to the lack of credit in the marketplace and that number should improve as credit flows more freely."

Stock Market Results: October 30, 2008 Late Rebound Provides Strong Gains

The stock market's swings continued Thursday. After jumping out to a strong gain, the major indices drifted to the unchanged mark before chopping back to higher ground. Gains came under pressure late in the session, but a last minute rally helped the major indices finish with strong gains.

Stocks were up more than 3% early on as investors assessed better-than-feared economic data and central bank moves to loosen capital markets.

Central banks in Asia trimmed target interest rates the day after the FOMC made cuts of its own. The Fed has also opened dollar swap lines with the likes of Mexico, South Korea, and Brazil. The moves come as central banks continue to fight systemic weakness in credit and capital markets. Such weakness has undermined economic prospects and led many to fear a global recession.

The advance third quarter GDP reading indicated the U.S. economy declined at an annualized rate of 0.3%, which is not as bad as the 0.5% decline that was widely expected. There is potential the GDP data may be revised upward, considering September net exports data was estimated.
Consumer spending remains a concern for economic growth, though, since it has historically accounts for more than two-thirds of economic activity. Consumer spending declined at a 3.1% annual rate and caused a drop of -2.25% in the latest GDP reading.

Prospects for consumer spending remain dim as jobless claims remain elevated. Initial claims for the week ending Oct. 25 were unchanged week-over-week at 479,000. Though that was slightly worse than the consensus estimate of 475,000, the four-week moving average improved to 475,500 from 480,500. Still, the data point to a 10th consecutive month of nonfarm payroll declines.

The jobless data coincide with continued reports of layoffs from major corporations. American Express (AXP 26.06, +0.85) is the latest to make cuts to its workforce, eliminating 7,000 jobs. The decision comes as part of a plan to cut operating costs.

Elsewhere in corporate news, major oil company and Dow component Exxon Mobil (XOM 75.05, +0.40) posted its fourth straight record quarterly profit. However, with crude prices down 55% from record highs, the outlook for major oil companies looks less lucrative. Crude finished the session roughly $1.40 lower at $66.10 per barrel.

Also joining the earnings parade were Colgate-Palmolive (CL 64.23, +4.23), Waste Management (WMI 31.44, +1.84), and Dominion (D 36.27, +1.06). Each posted better-than-expected earnings per share results.

Though ending the session higher, financial companies (+1.3%) continue to lag. The Treasury confirmed its $125 billion investment in nine major banks, including Goldman Sachs (GS 91.11, -6.55), Morgan Stanley (MS 16.09, +1.33), and JPMorgan (JPM 37.62, +1.91), to name a few. Their shares finished in mixed fashion as investors assessed word that Merrill Lynch (MER 17.78, +0.23) lowered earnings estimates on Goldman and Morgan Stanley, but raised them for JPMorgan.

Stocks came under pressure late in the session when San Francisco Fed President Yellen stated recent the economy is likely to contract significantly in the fourth quarter. The impact of the comments didn't last too long as buying interest quickly resumed to help the major indices finish near afternoon highs.

Barack Obama Stops Bullets (Matrix Political Cartoon)

Stock Market Midday Update: October 30, 2008 Buyers Losing Conviction (AAPL VRSN GOOG GM GE F C)

The major indices opened with strong gains, quickly advancing more than 3% each, but buyers are beginning to move toward the sidelines.

The bullish tone has been helped largely by continued efforts by central banks to restore credit and capital markets. Central banks in Asia followed the FOMC's decision to trim target interest rates. New dollar swap lines have also been opened.

Fearful that tighter credit and capital has repressed economic activity, the consensus third quarter GDP estimate called for the U.S. economy to contract at an annualized rate of 0.5%. Instead, advance third quarter GDP declined at an annualized rate of 0.3%. Though the decline was softer than feared, disappointing trends in consumer spending stand out. Consumer spending declined at a 3.1% annual rate and its contribution to the GDP change was -2.25%. Net exports also came in weak, but could provide an upward revision in subsequent reports, helping the overall GDP figure be revised to positive territory.

Still, consumer spending, which accounts for around two-thirds of economic activity, remains uncertain, especially as labor markets continue to show weakness. Initial claims for the week ended Oct. 25 were unchanged from the prior week at 479,000. That was slightly worse than the consensus estimate of 475,000. The data point to another month of nonfarm payroll declines. However, with the four-week moving average improving to 475,500 from 480,500, there is some reassurance the weekly trend isn't worsening.

Corporate earnings announcements have generally been better than expected. Integrated oil major Exxon Mobil (XOM 72.02, -2.63) and oil services outfit BJ Services (BJS 12.48, -0.98) each posted an upside surprise, but with crude prices slipping (-3.8%) and future earnings in question the pair is out of favor. Consumer staples icon Colgate-Palmolive (CL 63.23, +3.23) also saw strong numbers, but it expects double-digit earnings growth to continue. Elsewhere, media company CBS Corp (CBS 9.26, +0.54) topped the consensus earnings per share estimate. Utility holding company Dominion (D 35.46, +0.25) also fared well with strong revenue and earnings per share results.

Financial companies (+0.3%) have been lagging during the session. As the Treasury confirmed its $125 billion investment in nine major banks, including Goldman Sachs (GS 90.63, -7.03) and Morgan Stanley (MS 15.27, +0.51), Merrill Lynch (MER 17.78, +0.23) lowered earnings estimates on the pair.

Spread Barack Obama's Wealth (Political Cartoon)

Stock Market Pre-Open Update: October 30, 2008

S&P futures vs fair value: +28.40. Nasdaq futures vs fair value: +21.50. Futures continue to indicate a positive start to the session. The advance third quarter GDP report indicated the economy contracted at an annualized rate of 0.3%. The consensus called for a 0.5% decline. Second quarter GDP was unrevised at a 2.8% increase. Third quarter personal consumption showed a 3.1% decline, which is below the consensus estimate of a 2.4% decline, and down from the prior quarter's 1.2% advance.

Core personal consumption expenditures (PCE) was up 2.9%, above the 2.5% reading that was expected and also up from the prior quarter's 2.2% advance. Advance third quarter GDP Price Index increased 4.2%, which is above the 4.0% increase that was widely expected. The price index for the second quarter was 1.1%. Jobless claims for the week ending October 25 totaled 479,000, which is even with the prior week and slightly ahead of the consensus estimate.

Fed Cuts Interest Rate By Half Point to 1 Percent

Federal Reserve cut interest rates for the second time in three weeks, slashing its federal funds target by one-half of a percentage point to 1 percent.

"The pace of economic activity appears to have slowed markedly, owing importantly to a decline in consumer expenditures," the Fed said in explaining its decision.
"Business equipment spending and industrial production have weakened in recent months, and slowing economic activity in many foreign economies is damping the prospects for U.S. exports," the Fed said. "Moreover, the intensification of financial market turmoil is likely to exert additional restraint on spending, partly by further reducing the ability of households and businesses to obtain credit."

The Fed said rate cuts in the U.S. and other countries and "steps to strengthen financial systems ... should help over time to improve credit conditions and promote a return to moderate economic growth. Nevertheless, downside risks to growth remain."

Wednesday's cut, which had been expected by the markets, came amid the current financial turmoil and fears that there might be a prolonged recession. Partly in anticipation that the Fed would lower rates, stock markets rallied Tuesday, with the Dow Jones industrial average soaring nearly 11 percent, or 889 points. On Wednesday, the Dow closed down 74 points at 8990.
On Oct. 8, Fed policymakers cut the fed funds rate by a half point in coordination with several other central banks around the world.

"The markets are expecting they'll keep going and cut them further, perhaps" to 0.5 percent, by year's end, David Wessel, economics editor at The Wall Street Journal, told NPR's Renee Montagne earlier Wednesday.

Indeed, the Fed hinted at further cuts, saying it "will act as needed to promote sustainable economic growth and price stability."
The Fed is trying to offset the credit crunch that has frozen lending. The previous rate cut helped some, but not enough, Wessel said.

General Motors Corp. said Wednesday that its third-quarter sales in North America plunged nearly 19 percent and global sales fell 11.4 percent as demand for GM vehicles weakened amid growing economic pressures.

However, the Commerce Department said orders for durable goods, such as cars, appliances and machinery, rose 0.8 percent in September, the largest increase in three months. Analysts had expected a decline.

On Tuesday, the Conference Board said its consumer confidence index had plunged to the lowest level in its 41-year history in the wake of this month's financial meltdown, the sharp drop in home prices and increasing job losses.

The last time interest rates were this low, under former Fed Chairman Alan Greenspan, they sparked excessive borrowing. "I think the Fed worries about that," Wessel said. "The conventional wisdom inside the Fed now is with the benefit of hindsight they kept rates too low for too long during the Greenspan years and that created this housing bubble. ... And they'd like to avoid that again.

"But you don't want to fight the last war, and with the economy suffering so much, with so much at stake, they are doing the only thing they can do, which is administer this low-interest-rate medicine," Wessel said.

The challenge for the Fed will be to decide when to begin raising rates, once the economy improves. For now, analysts are estimating the economy contracted by about 0.7 percent during the third quarter and will shrink even more during the fourth quarter and the first three months of 2009. They also see unemployment eventually rising to 7.5 percent or 8 percent, from last month's 6.1 percent.

Even when the economy comes out of recession, it's expected to grow very slowly.
"What we are seeing now is the ripple effects of the credit crunch spreading out throughout the economy," not just in the U.S. but worldwide, "so our export markets are going to be lousy as well," Wessel said.

The government's bailout of the financial system will take time to have its effect, he says. "The medicine will not make the patient better until the banks feel healthier and begin to lend again, and we're clearly not there yet."

Stock Market Results: October 29, 2008 Stocks Post Loss Following Late Session Plunge

The stock market settled with a 1.1% loss Wednesday after late-session surge made in the final hour following an FOMC rate cut was reversed in the final minutes of trade after headlines hit the wires that raised concerns regarding General Electric's (GE 19.20, -0.29) revenue in 2009. Meanwhile, commodities made one of the strongest gains on record as the dollar got hammered.

Specifically, the S&P 500 was up 3.1% with 10 minutes left in the session and then quickly sank to a 1.8% loss before settling with a decline of 1.1%. Small and mid-cap stocks outperformed with gains of 1.7% and 1.8%, respectively.

With regard to GE, Dow Jones reported that the conglomerate is aiming to keep 2009 profit the same as 2008, even if revenue declines 10-15%. The profit outlook is good news given the current consensus estimate anticipates a 9% decline year-over-year. However, the revenue view doesn't say much about the economic outlook and implies that GE will cost cuts to meet its profit goal.

This was disappointing to the market when thinking of the demand outlook for this global company, sparking a sweeping decline in other multi-national companies in the final minutes of the trading session.

After the close, however, CNBC noted that GE said the comment was not new and shares of GE were trading up in the after hours session.

The Federal Open Market Committee cut the fed funds rate by 50 basis points to 1.00%. This marks the lowest level since June 2004. The discount rate was reduced by 50 basis points to 1.25%. Both actions were unanimously approved. The Fed said the pace of economic activity has "markedly" slowed as consumer expenditures declined, while inflation pressures are expected to moderate due to the drop in commodity prices and weaker economic prospects.

The FOMC believes that over time this action, along with the Fed's other measures, will help promote moderate economic growth. The announcement did not give any surprises, and left the possibility for further rate cuts.

Separately, the Fed established temporary currency swap lines with the central banks of Brazil, Mexico, South Korea and Singapore. The move is meant to improve liquidity and complement the Fed's current swap lines with ten other central banks.

Seven of the ten sectors posted a loss.
Consumer staples stocks trailed the broader market even though Procter & Gamble (PG 61.33, -1.90), Kraft (KFT 28.47, -0.41 ) and Kellogg (K 50.02, -0.66) all reported better-than-expected quarterly earnings results.

The telecom (-3.3%) sector was laggard after Qwest (Q 2.33, -0.27) reported worse than expected quarterly earnings and said it was cutting 1,200 jobs, or 3% of its workforce.
The consumer discretionary sector outperformed on a relative basis with a decline of 0.1%. Casino and gaming stocks soared 11.5% after MGM Mirage (MGM 13.75, +3.42) reported an earnings drop and outlook that was better-than-feared.

Commodities rallied across the board in a rebound trade that was compounded by a 2.7% drop in the dollar. Crude oil prices spiked 9.8% to $68.90 per barrel, getting an added lift after the government's weekly energy report showed a smaller-than-expected increase in crude inventory levels.

As a result, the energy (+2.3%) and material (+2.7%) posted the largest gain this session.
In economic news, September durable goods orders rose 0.8%, better than the expected decline of 1.1%. Excluding transportation, durable goods orders fell 1.1%, which was better than the expected decline of 1.5%. However, nondefensive capital goods excluding aircraft, which is a proxy for business investments, fell 1.4%.

Wall Street Bear Eating Human Executive (Political Cartoon)

Stock Market Midday Update: October 29, 2008 Stocks Flat Ahead of FOMC Announcement

Stocks are flat, commodities are rallying and the dollar is being clipped ahead of the FOMC policy announcement at 2:15 PM ET.

Fed funds futures fully price in a 50 basis point rate cut, and suggest a 48% chance of a 75 basis point cut. The fed funds target rate is currently at 1.50%, although the effective fed funds rate has been under 1.00% for the last nine sessions.

The dollar is getting hammered, falling 2.6% against a basket of world currencies as the euro gains 3.5% and the pound rallies 4.5%.

The weakness in the dollar is helping to fuel a rally in commodities (+5.9%). Crude oil prices are up 9.0% to $68.38, aided by a lower-than-expected increase in inventory levels.
The gain in crude and other commodities is helping the energy (+5.2%) and material (+2.4%) sectors outperform.

In economic news, September durable goods orders rose 0.8%, better than the expected decline of 1.1%. Excluding transportation, durable goods orders fell 1.1%, which was better than the expected decline of 1.5%. However, nondefensive capital goods excluding aircraft, which is a proxy for business investments, fell 1.4%.

Quarterly earnings results were mostly better-than-expected, although several companies issued downside guidance. Procter & Gamble (PG 61.21, -2.02), Kraft (KFT 29.02, +0.14) and Kellogg (K 50.89, +0.21) all posted better-than-expected results. Corning (GLW 10.52, -0.90), Garmin (GRMN 22.34, +0.92) and Moody's (MCO 21.07, +0.46) all beat, but issued downside outlooks. Office Depot (ODP 2.00, +0.11), MGM Mirage (MGM 13.06, +2.73) and Qwest (Q 2.38, -0.22) reported worse-than-expected earnings. The latter company also said it plans to cut 3% of its workforce, or 1,200 jobs.

Overseas markets rose, aided by the late session rally in U.S. stocks on Tuesday. The Euro Stoxx 600 is up 6.4%, with leadership in banking stocks. Japan's Nikkei rose 7.7%, boosted by continued reports that the Bank of Japan may cut its bench mark lending rate by 25 basis points to 0.25%.

Campaign Trash Talk Obama & McCain (Political Cartoon)

Obama Spread the Wealth (Political Cartoon)

Obama Meets Joe the Plumber (Political Cartoon)

Stock Market Pre-Open Update: October 29, 2008 Point to slightly higher open

S&P futures vs fair value: +2.00. Nasdaq futures vs fair value: +8.50. Futures recover early losses and currently point to slightly higher open ahead of the FOMC announcement at 2:15 PM ET. Fed funds futures fully price in a 50 basis point rate cut, and suggest a 42% chance of a 75 basis point cut.

In earnings news, Procter & Gamble (PG) earned $1.03 in its fiscal third quarter, a 14% year-over-year increase, which was $0.05 better than expectations. Comcast (CMCSA), Kraft (JFT) and Newmont Mining (NEM) also topped expectations. Corning (GLW) and Garmin (GRMN) and Moody's (MCO) beat for their latest quarter, but issued downside guidance. Office Depot (ODP) and Qwest (Q) reported worse-than-expected earnings. In overseas trading, Japan's Nikkei rose 7.7% on continued reports that the Bank of Japan will cut its benchmark rate by 25 basis points. The Euro Stoxx 600 is up 5.1% with banks leading the way.

Halloween Costume Idea: Scary Financial Advisor (Political Cartoon)

Tech Review: Apple MacBook (13-inch 2.4 GHz 2008) (AAPL)

The biggest news on Apple’s latest MacBook update may also be the most obvious: it’s not plastic anymore. Apple has canned the old (and iconic) white MacBook look in favor of a new unibody aluminum design that makes the MacBook and its larger brother, the MacBook Pro, much tougher to distinguish now. The company has also nixed another extraneous button with the complete removal of any mouse buttons, replacing them with a mammoth touchpad that actually acts as one giant button, and pulls the same multi-touch tricks as Apple’s iPhone, opening the door to all sorts of convenient shortcuts. While these major changes, along with a handful of smaller ones like an LED-backlit LCD screen, help make the notebook one of the best looking and most solid we've ever laid eyes on it, its price takes a hike accordingly as well.

Missing in Action: Obama's Actual Birth Certificate

Last week, during the crucial waning days of the presidential campaign, Obama left for Hawaii to visit his 85-year-old grandmother, Madelyn Dunham, who had broken her hip. In such bad shape was she - in spite of the hospital's sending her home to heal - that Obama told ABC's Robin Roberts, that "I'm still not sure whether she makes it to Election Day."
Filling in for Obama on the campaign trail in Ohio was his wife, Michelle, who told the crowd that granny was doing just fine.
Did Obama have a dual purpose in traveling to Hawaii, the other being to magically produce the birth certificate proving his eligibility to be president? While he's now back on the campaign trail, he has still failed to produce said certificate!
After a recent article I wrote, My Mother's Birth Certicate - And Obama's, a number of people e-mailed me with FactCheck.org's "proof" of the certificate. But let's not forget that FactCheck is owned by the Annenberg Foundation, the same foundation that gave millions of dollars to Obama and his unrepentant terrorist pal William Ayers for an "education" project. To me, that makes FactCheck ipso facto the least credible source of factual information.
Infinitely more credible is the research done by, among others, Pennsylvania attorneyPhilip J. Berg (ObamaCrimes), Chicago journalist Andy Martin, ContrarianCommentaryBlog and author Jerome Corsi (The Obama Nation), who have cast persuasive, data-provided doubt not only that the birth certificate(s) so far produced were blatant forgeries, but that Obama - and his leftwing media lapdogs - have been concealing the fact that he was born in a hospital in Mombasa, Kenya, a birth his Kenyan grandmother is on record saying she and Obama's half-brother and half-sister attended.
What else has Obama failed to provide to a public - and an electorate - that deserves to know everything possible about a presidential candidate?
Occidental College records - not released.
Columbia Thesis paper - not available, locked down by faculty.
Harvard College records - not released, locked down by faculty.
Selective Service Registration - not released.
Medical records - not released (only a one-page report).
Illinois State Senate schedule - 'not available.'
Law practice client list - not released.
Certified Copy of original Birth certificate - not released.
Embossed, signed paper Certification of Live Birth - not released.
Harvard Law Review articles published - None.
University of Chicago scholarly articles - None.
Record of Baptism-- Not released or 'not available.'
Illinois State Senate records--'not available.'
No wonder Obama's critics have called him a Manuchurian Candidate, a Trojan Horse, and a stealth candidate! If he has nothing to hide, why on earth is he still be refusing to come clean with the American people? Answer: he clearly has a lot to hide.
THE BERG CASE
In August, Mr. Berg lodged a suit against Obama and the Democratic National Committee.
On October 4, the accused parties filed a Motion to Dismiss.
On October 21, Mr. Berg released the result of his investigation - "Obama & DNC admit all allegations in Berg v. Obama" - in which he said that by failing to answer the questions the lawsuit posed, both Obama and the DNC admitted, by default, that the charges were true.
On October 24, U.S. District Judge R. Barclay Surrick threw out Berg's suit, which asked that Obama's name be removed from the November 4 ballot and claimed that if Obama were permitted to run for president and subsequently found to be ineligible, he (Berg) and other voters would be disenfranchised. The judge concluded that Berg's allegations were "too vague and too attenuated."
On October 25, Berg announced in a press release that he is immediately appealing the dismissal of his case to the United States Supreme Court.
"This is a question of who has standing to uphold our Constitution, Berg said, "If I don't have standing, if you don't have standing, if your neighbor doesn't have standing to question the eligibility of an individual to be President of the United States - the Commander-in-Chief, the most powerful person in the world - then who does?"
Berg echoed the outrage reverberating throughout the nation at the prospect of Obama so brazenly flouting the U.S. Constitution, the provisions of which are very limited for qualifying a person to run for president: Article II, Section 1: "No Person except a natural born citizen, or a citizen of the United States at the time of the adoption of this constitution, shall be eligible to the Office of President; neither shall any person be eligible to that office who shall not have attained to the age of thirty five years, and been fourteen years a resident within the United States."
"For the first time in history," writes journalist Sher Zieve, "U.S. voters are being asked to choose between continuing the Republic or bending to the will of a totalitarian Communist candidate."
What will the Supreme Court do? As one e-mailer told me: "The Supreme Court may be very loathe to take this case, given that they're still smarting from being accused of `selecting' a president in 2000 and they won't want to be accused of `deselecting" a president" in 2008."
WHAT'S HAPPENING NOW?
Big hat tip here to Matt Bruce, a retired fire-rescue captain, who provided the following information.
Currently, lawsuits are being filed in nine states - California, Connecticut, Florida, Georgia, Hawaii, New York, Ohio, Pennsylvania and Washington - that are seeking to require Barack Obama to provide Certification of his Birth in the United States, or to be removed or to remove himself from state ballots. Hawaii, the state in which Obama was supposedly born, is seeking judicial authority to force the certifying or decertifying of Obama's qualification to run as a candidate for President as a natural born U.S. citizen. Previously, two lawsuits have failed to force the certifying documents from Obama.
Every day, new lawsuits are being lodged.

Steve Marquis, noted above, is a Washington State resident who last Tuesday filed a suit in Washington State Superior Court against Sam Reed, Secretary of State for the State of Washington, demanding that Illinois Sen. Barack Obama be removed from the ballot in Washington unless he can provide verification of his status as a United States citizen.
Marquis said that by "resolving, one way or another, the unanswered questions surrounding Obama's citizenship and background would preclude a constitutional crisis and likely civil unrest which would arise should information come to light after the election which shows that the Illinois senator is ineligible to hold the presidency."
Are Obama and the DNC guilty of conspiracy, treason, or sedition? According to Webster's New World College Dictionary:
Conspiracy: Planning and acting together secretly, esp. for an unlawful or harmful purpose, such as murder or treason.
Treason: Violation of the allegiance owed to one's sovereign or state; betrayal of one's country, specifically, in the U.S. (as declared in the Constitution), consisting only in levying war against the U.S. or in giving aid and comfort to its enemies.
Sedition: The stirring up of discontent, resistance, or rebellion against the government in power.
WHAT CAN YOU DO?
At this 11th-hour in our election cycle, it is imperative for all activists to act!
The following site has information about contacting your elected representative by phone, fax, and e-mail, as well as extensive information about contacting the media -print, electronic, TV and radio. http://www.conservativeusa.org/megalink.htm.
Use the letter below - or your own version - which was written by Frank Salvato, proprietor of http://www.newmedia.us/ and Executive Director of Terrorism Research at the Basics Project (http://www.basicsproject.org/) literally to blitz your representatives, the media, and the Secretaries of State in your home state. Use this link to find out who they are:http://www.e-secretaryofstate.com/.
Remember, this is not partisan! It is to protect the Constitution of the United States against "enemies both foreign and domestic"!
Dear ____,
Article II, Section 1 of the U.S. Constitution reads: "No Person except a natural born citizen, or a citizen of the United States at the time of the adoption of this constitution, shall be eligible to the Office of President; neither shall any person be eligible to that office who shall not have attained to the age of thirty five years, and been fourteen years a resident within the United States."
There are numerous allegations regarding Sen. Barack Obama's claim of natural birth in the U.S., all raising suspicion and doubt as to Obama's actual place of birth and qualification to run for president.
Some of the assertions to which Obama "admitted" on Philip J. Berg's suit are:
He was born in Mombassa, Kenya in 1961 while his mother, Stanley Ann Dunham, was married to Barack Obama Sr., a Kenyan.
When his mother, divorced from Obama Sr., moved to Indonesia and married Lolo Soetoro, an Indonesian, Obama was adopted by Soetoro and became an Indonesian citizen.
While in Indonesia, Obama had his name changed to Barry Soetoro.
Obama traveled to Pakistan in 1981 under an Indonesian passport, when Pakistan was a no-travel zone for Americans.
Obama's Kenyan grandmother is alleged to have claimed that Obama was born in Kenya and she was present at the birth.
Muammar Gadhafi, leader of Libya, has publicly claimed that Obama was born in Kenya and studied in Muslim schools in Indonesia.
Obama has also admitted on his website to hold citizenship in another country (the U.S. Constitution forbids dual citizenship).
A lawsuit in Honolulu in the First District Court is seeking a court-order to open Obama's secret birth records.
Obama has thus far neglected a Freedom of Information request for the records at two hospitals in Hawaii.
Lawsuits in California, Connecticut, Florida, Georgia, Hawaii, New York, Ohio, Pennsylvania and Washington are asking state Superior Courts to force the each state's Secretary of State, as the chief state elections officer, to perform his or her state constitutional duty to require original certifying birth records from Mr. Obama that would verify his birth in Hawaii.
Philip J. Berg's months-long lawsuit in Federal Court in Philadelphia reached a dramatic plateau as Mr. Obama and the Democratic National Committee (DNC) failed to respond to the court that Mr. Obama is not a natural born U.S. Citizen and therefore not qualified to run for office of President of the U.S. They admitted to Obama's non-qualification by their failure to respond to a 30-day court ordered discovery in which Obama and the DNC were ordered to answer a petition by Berg. Mr. Berg has stated that if the Federal court chooses to dismiss he will appeal all the way to the Supreme Court. This has come to pass.
These allegations will not go away until Mr. Obama produces proof to State and federal authorities. If he will not do so voluntarily he must be compelled by every means available. You, as an employee of The People, have sworn an oath to support and defend the Constitution against ALL enemies foreign and domestic. We The People are demanding you to make every effort, both public and private, to resolve this fundamental Constitutional question before Election Day, November 4, 2008.
Sincerely,
[Your Name, Address, and Contact info here]
EXERCISE YOUR PRECIOUS RIGHT TO VOTE
Despite the threat that Obama and his supporters have leveled at the United States Constitution, we as voters have a fail-safe solution. If Obama continues to refuse to produce an authentic birth certificate, then we voters - on November 4th - can come out by the millions upon millions to end his candidacy simply by voting NO to Obama and Yes to McCain-Palin!
Then we can work to get him out of the Senate!
Joan Swirsky

The Current Status of the Economy: When Capitalism Fails

Once again, because of the demand for articles on the current status of the economy (both in the US and globally) and the lack of straight forward answers from really anyone, I have taken it upon myself to do some research and see what we're actually dealing with here -- all politics aside, all blame aside, just a good solid look at what happened and what is happening.

Capitalism is the best economic system human kind has come up with to date and most educated (Western) individuals would agree with that fairly large, impacting statement. There is no better system for humans. I say "for humans" because Communism would be phenominal if it weren't for any human's complete inability to deal well with that kind of power and wealth -- the temptation for greed is too steep to withstand and corruption easily finds its way into a Communistic society.

However, capitalism can fall prey to greed as well and historically the place to go for that kind of thing is Wall Street, New York City, New York State, USA. But even with the corruption and greed on Wall Street, somehow things hold together enough for a fairly stable environment most of the time. So in and of itself capitalism should be considered an economic accomplishment of our modern time.

But there are a few other human things that can destroy a capitalistic society with ease: greed and pride. And there are a few non-human things that can destory a capitalistic society: non-capitalistic endeavors such as having a socialistic approach within the framework of a capitalistic economic system. Thus, with the combination of the above you beget a full on recessive - depressive economic crisis.

How did this happen in our case? Well, let's get simple:
The federal and state government began spending way too much money and got cocky. The democratic party began pushing banks to give home and other loans to people who could not pay them back and in order to compete, all the US banks followed suit. With a lot of credit floating around, people and companies began pouring it into the stock market

When #2 had been going on for a couple of years, the loans that could not be paid back began failing and the bank was left without the money it originally had and when this happened enough times, a few banks even went bankrupt -- especially the ones that were specifically targeted by the democratic party to give loans to folks who couldn't pay them back.

Capitalism did not fail in the least, in fact capitalism was doing great. It was when socialistic ideas were impressed upon a capitalistic economy that things began to go awry and even when it was found out that this was happening, nothing could be done about it because the few people in charge fell victim to greed and pride -- the two main human fatal flaws that destroy capitalism and when it comes down it, everything.

Unfortunately for their party, the folks in charge who fell victim to greed and pride were of the Democratic Party and one of the main ones is about to be elected President of the United States if he can produce a valid birth certificate. However, the media -- liberal as it may always be -- has hidden 95% of the above information from the public and this is tragic.

But truth will always find a way out into the open, I am confident of this.

Stock Market Results: October 28, 2008 Dow Explodes on Global Equity News

A volatile session gave stock market bulls something to cheer about, with the Dow surging 889 points on Tuesday, as bargain hunting and short-covering offset the weakest consumer confidence reading on record.
The S&P 500 rose 3.9% shortly after the opening bell, buoyed by strength in overseas markets. The index then fell to a loss of 0.4% due to the bearish consumer confidence news, only to rally into the close at session highs with a gain of 10.8%.
Strength was broad-based with all ten economic sectors posting a gain of at least 7.5%.
Retailers rallied 13.6%, with Target (TGT 38.44, +5.75) gaining 11.7%. Pershing Square Capital Management shared ideas with Target related to an alternative ownership structure of Target's real estate. The consumer discretionary sector rose 13.1%.
The energy sector rose 11.9%, lifted by better-than-expected results at Occidental Petroleum (OXY 49.77, +7.69) and Valero Energy (VLO 16.83, +1.72). The sector also received an indirect boost from BP (BP 45.52, +6.37), which posted stronger-than-expected earnings and revenue growth.
On a related note, the materials sector climbed 12.6%, aided by better-than-expected earnings at U.S. Steel (X 32.25, +4.43)
Boeing (BA 48.85, +6.49) climbed 15.3% after it reached a four-year tentative labor agreement with its striking machinist union. The union, Boeing's largest, has been on strike since the beginning of September due to disagreements on compensation, benefits and job security. The industrials sector rose 10.0%.
In overseas trading, Asian markets rallied with Japan's Nikkei closing up 6.4% and Hong Kong's Hang Seng surging 14.4%. European stocks rose 2.3%. Germany's DAX surged 11.3% as Volkswagen spiked 81.7%, marking a two-day gain of 348% due to a short-covering fueled rally after Porsche said it was increasing its stake in the automaker on Sunday.
The gains in Volkswagen sparked some volatility in the U.S. market, with Goldman Sachs (GS 94.59, +1.71) dropping as much as 11% on speculation that it was exposed to Volkswagen short positions. CNBC reported Goldman's sources said the company had no significant losses related to Volkswagen. The financial sector rose 12.5%.
In economic news, it was expected that consumer confidence would fall in October given the recent market turmoil, but the severity of the decline was not anticipated. Specifically, consumer confidence plummeted 23.4 to 38.0 in October, according to the Conference Board's survey. This was worse than the expected reading of 52.0. It marks the lowest level on record, which dates back to 1967.
August home prices in 20 major metro areas fell 16.6% year-over-year, according to the S&P/Case-Shiller Index, which matched expectations. Home prices have fallen on a year-over-year basis for 20 straight months.
In currency trading, the dollar soared 4.1% against the yen after reports indicated that the Bank of Japan is considering cutting its benchmark interest rate to 0.25% from 0.50%.

401K Statement: Scary Halloween Costume Idea (Political Cartoon)