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Jeff Bailey : 6/6/2006 1:31:47 AM

Japan's Finance Minister (comments)

DJ- Japan's finance minister Tuesday urged the Bank of Japan to be cautious in setting its monetary policy, saying there is still deflation and interest rates therefore shouldn't be allowed to rise sharply.

Sadakazu Tanigaki also said there is a "misunderstanding" in the currency market that the Group of Seven major economies have endorsed a weakening in the dollar. To the contrary, G7 nations "broadly agree" on the need to take action in the foreign exchange market when currency rate moves aren't in line with economic fundamentals, he said.

The Japanese economy has made significant progress in overcoming deflation but the fight isn't over yet, Tanigaki said.

"The economy is getting healthier, but deflation is still there like a light fever," Tanigaki said in an interview with Dow Jones Newswires.

"It would be undesirable for interest rates alone to rise sharply under such conditions, and (the BOJ) needs to look closely" at such risks in determining when to lift its key interest rate target from zero, he said.

Tanigaki's view highlights the government's concern that if Japan's central bank tightens monetary policy too hastily, that could lead to sharp rises in long-term interest rates, thereby hurting the economy and pushing up the cost of financing Japan's huge public debt.

The BOJ in March scrapped its five-year-old quantitative easing policy, and there is speculation in the market that it could also end its zero-interest-rate policy in the next few months.

Such expectations sent Japanese bond yields to multiyear highs in April, with the yield on the 10-year Japanese government bond briefly hitting a high of 2.005% on May 10, a level not seen since August 1999. The benchmark yield has stabilized somewhat since then, and is trading around 1.9%.

Jeff Bailey : 6/6/2006 1:23:37 AM

Hang Seng ($HSI) down 137.94, or -0.86% at 15,878.29 Link ... High/Low 15,918.74/15,824.19

Jeff Bailey : 6/6/2006 1:20:43 AM

Nikkei-225 ($NIKK) down 257.27, or -1.64% at 15,411.04 Link ... High/Low of 15,507.78/15,340.93

Jeff Bailey : 6/6/2006 1:07:23 AM

Program Trading Levels for Tuesday ... HL Camp & Company has their computers set for program selling at $+2.52 and set for program selling at $-0.28.

Fair Value for the S&P 500 is $1.22

Jeff Bailey : 6/6/2006 12:53:37 AM

Index Pivot Matrix for Tuesday found at this Link

Jeff Bailey : 6/6/2006 12:25:06 AM

YM 5-minute interval chart with Tuesday's DAILY Pivot Retracement (green) at this Link

Jeff Bailey : 6/6/2006 12:18:19 AM

YM Pivot Matrix for Tuesday at this Link

Jeff Bailey : 6/6/2006 12:01:04 AM

YM recap 5-minute interval chart at this Link

Tab Gilles : 6/5/2006 11:50:22 PM

+20 Year Treasuary Bond Fund (TLT) Link

Tab Gilles : 6/5/2006 11:43:51 PM

$NDX/$NASI/$NAHL/$BPNDX Link Link Link

OI Technical Staff : 6/5/2006 9:59:59 PM

The Market Monitor has been archived. You may view it and any previous days here: Link

Disclaimer: Stocks discussed in the Market Monitor are for educational purposes only and any analysis is not meant to imply a recommendation for or against that stock. The analysts in this forum as on any other website are prohibited by the SEC from giving any specific advice to ANY individual trader. All information posted is for ALL readers and is not meant to be directed to any individual. Our analysts cannot answer any email questions regarding any specific stock. Please do not ask and please do not take offense if requests are denied.

Results posted in the Market Monitor are hypothetical and OIN does not claim that any reader achieved these exact results. Due to the lag time between research, writing, posting, uploading, reading and execution there will be differences between the actual signal given and the fill achieved by the reader. Fills may be better or worse but in most cases they will be different. The writers will make every effort to give advance notice of intended signals and indicate potential price targets. Your individual results may vary depending on your activity level and aggressiveness. This forum is intended as an education service only. Trading involves risk and should not be attempted by anyone not ready to accept this risk. By acting on any signal in this forum you agree and personally accept this risk.

Jeff Bailey : 6/5/2006 5:11:03 PM

Closing Internals found at this Link

Jeff Bailey : 6/5/2006 4:59:20 PM

Closing U.S. Market Watch found at this Link

Jeff Bailey : 6/5/2006 9:06:49 PM

Current OPEN MM Profiles found at this Link

Today's Activity

Stocks/Options

Swing trade bullish stopped out on the 100 share Goldcorp (GG) long at $29.50 ($-1.00/share, or $-100.00)

Day trade shorted a full position in shares of IBM at the bid of $79.78 (Stop= $80.10 : Target= $78.50) and held overnight.

YM Futures

Day trade shorted the YM at 11,190 (Stop= 11,208 : Target= 11,155), but was stopped out at 11,185 Ugh! (+5 pts, or $25/contract)

Jane Fox : 6/5/2006 4:16:12 PM

There are no major economic reports tomorrow.

Jeff Bailey : 6/5/2006 4:02:36 PM

Buy Program Premium ... SPY $126.96 : YM 11,070

Jeff Bailey : 6/5/2006 3:56:27 PM

IBM short update alert $79.17 -0.44% ... Let's continue to hold overnight. Stop $80.10 with target of $78.50.

Jeff Bailey : 6/5/2006 3:50:34 PM

Bullish swing trade stop alert ... for Goldcorp (GG) $29.50 -2.83% ...

Jeff Bailey : 6/5/2006 3:26:15 PM

Utility Index (UTY.X) 435.30 -0.37% ... shows "relative strength"

Jeff Bailey : 6/5/2006 3:24:12 PM

Dollar Index (dx00y) 84.17 +0.14% ... notable reversal since Mr. Bernanke's comments.

Jeff Bailey : 6/5/2006 3:17:37 PM

03:00 Internals found at this Link

Jane Fox : 6/5/2006 3:09:12 PM

Internals are telling me more downside but with a TRIN still at 2.30 I'm not so sure I would be on the short side.

Jeff Bailey : 6/5/2006 3:04:05 PM

Goldcorp (GG) $29.82 -1.74% ... session lows.

Jeff Bailey : 6/5/2006 3:02:16 PM

03:00 Market Watch found at this Link

Jeff Bailey : 6/5/2006 2:53:57 PM

IBM $79.55 +0.03% ...

Jane Fox : 6/5/2006 2:53:36 PM

Dateline WSJ Even though the once barreling U.S. economy is now slowing down, Federal Reserve Chairman Ben Bernanke on Monday called recent increases in the inflation rate unwelcome and pledged to make sure surging energy prices don't make things worse.

In deciding the Federal Reserve's next rate move in late June, Mr. Bernanke said the inflation outlook "will receive particular scrutiny." Fed policy makers "will be vigilant" to ensure that the recent pattern of higher readings in core inflation, which excludes food and energy prices, "is not sustained," he said in remarks prepared for an international monetary conference here.

Mr. Bernanke offered his most extensive assessment of current economic conditions and the challenges facing Fed policy makers in a speech prepared to be delivered at the International Monetary Conference in Washington.

"With the economy now evidently in a period of transition, monetary policy must be conducted with great care and with close attention to the evolution of the economic outlook," Mr. Bernanke said. He stressed anew that future rate decisions will rely heavily on what economic barometers say about inflation and business activity.

So far this year, inflation at the consumer level has been elevated in large part by rising energy prices, Mr. Bernanke said.

Jeff Bailey : 6/5/2006 2:52:20 PM

Buy Program Premium ... SPX 1,273.26 : YM 11,120

Jeff Bailey : 6/5/2006 2:44:22 PM

Department of MMS ... DJ- Lingering Gulf Outage has 15% Oil, 11% Natural Gas Production Still Off

Jane Fox : 6/5/2006 2:42:43 PM

Escala group (ESCL) gets notice of formal SEC probe

ESCL to cooperate fully with SEC in probe

Jeff Bailey : 6/5/2006 2:39:34 PM

Department of MMS DJ- 228,000 B/D Oil, 1.1 BCF/D Nat. Gas Still Shut In after 2005 Hurricanes.

Jeff Bailey : 6/5/2006 2:35:59 PM

10-year YIELD ($TNX.X) reverses course. Now up 2.4 bp at 5.018%.

Jeff Bailey : 6/5/2006 2:34:16 PM

Fed Chairman Bernanke (comments) at International Monetary Conference in Washington

US Econ Entering 'Period of Transition'

Current Core Inflation Level At Upper End

FOMC To Ensure Inflation Rise 'Not Sustained'

Moderation Of Econ Growth Seems To Be Under Way

Consumer Spending Slower; Housing Mkt Cooling

Net Business Invest Has Risen 'Briskly' This Yr

More FX Flexibility Would Help Cut Imbalances

Jeff Bailey : 6/5/2006 2:30:09 PM

If IBM will trade $78.50 I might give a "big blue" cheer.

Jane Fox : 6/5/2006 2:07:16 PM

Nice trade Jeff.

Jeff Bailey : 6/5/2006 2:00:28 PM

Day trade short alert .... IBM $79.78 here, stop $80.10, target $78.50.

Jeff Bailey : 6/5/2006 1:58:43 PM

YM alert 11,155

Jane Fox : 6/5/2006 1:44:48 PM

Dateline WSJ Trizec Properties Inc. and Trizec Canada Inc. announced Monday that they have agreed to be acquired by Brookfield Properties Corp. and private-equity firm Blackstone Group in a $8.9 billion deal, including $4.1 billion in debt.

Trizec, which was built up by Canadian real-estate tycoon Peter Munk, is one of the largest owners of commercial property in North America. The Chicago-based company owns interests in 61 office properties comprising about 40 million square feet in seven major U.S. metropolitan areas.

Toronto-based Brookfield has a portfolio of 67 commercial properties totaling 48 million square feet. It owns the World Financial Center, near Ground Zero in Lower Manhattan.

Under the terms of the agreement, a joint venture of Brookfield and Blackstone will acquire all outstanding shares of common stock of Trizec Properties that are not owned by Trizec Canada for $29.01 a share in cash. In addition, Brookfield will acquire the outstanding shares of Trizec Canada for $30.97 a share.

The additional $1.96 cash consideration per Trizec Canada share reflects the value of Trizec Canada's net assets other than its approximate 38% interest in Trizec Properties.

Jeff Bailey : 6/5/2006 1:39:44 PM

Goldcorp (GG) $30.75 +1.28% ... 30-minute interval chart with updated MONTHLY (pink) and WEEKLY (blue) pivot retracement at this Link

Jane Fox : 6/5/2006 1:35:51 PM

Natco Group (NTG) shares rise 7% to $35.75 following receipt of $46.4m sale

NTG inks letter for sale to Carigali Pttepi

Jane Fox : 6/5/2006 1:31:24 PM

... Ad line is -1137.

Jane Fox : 6/5/2006 1:31:05 PM

VIX hugging daily highs, TRIN 1.36 an rising and Ad Volume to new daily lows.

Jane Fox : 6/5/2006 1:23:02 PM

MIKR HITs 52-WEEK HIGH OF $9.98.

Jane Fox : 6/5/2006 1:20:14 PM

VIX has not yet made a new daily high and I believe the shorts will not get too far until it does.

Jane Fox : 6/5/2006 1:19:18 PM

Mikron instrument (MIKR) shares up 19% to $9.72 on volume 516,031 vs daily avg. 22,200

MIKR shares rise following Q2 financial report - Q2 earns 17c vs 10c
Q2 sales up 22% to $9.3m from $7.6m

Notes increased interest in thermal imaging cameras.

Jeff Bailey : 6/5/2006 1:12:00 PM

01:00 Internals found at this Link

Jeff Bailey : 6/5/2006 1:02:05 PM

01:00 Market Watch found at this Link

Jeff Bailey : 6/5/2006 12:52:08 PM

YM Bearish Stop Alert 11,185 ... (+5)

Jeff Bailey : 6/5/2006 12:40:32 PM

Peru Stock Indexes, Currency, Gain on Garcia Victory

DJ- Peru's financial markets Monday rallied on news that Alan Garcia has apparently won Sunday's presidential elections.

Garcia, leader of the social democratic Apra party, is seen as much more market friendly than Humala, a radical nationalist.

In an early trade, the stock market's broad general index rose 217.48 points, or 2.82%, to 7,918.14, while the selective blue chip index gained 458.61 points, or 3.49%, to 13,605.96.

Among others, copper miner Sociedad Minera Cerro Verde SAA (CVERDEC1.VL) rose 6.0% to $7.61 and precious metals miner Compania de Minas Buenaventura SA (BVN) increased 5.4% to 93.90 soles.($28.93)

"The stock market is up strongly on the Garcia win. Investors are taking it very well," said one trader.

Peru's sol currency, meanwhile, was trading at a midrate of PEN3.2455 to the U.S. dollar on a spread of PEN3.2410-PEN3.2500.

The sol ended Friday at a midrate of PEN3.2715 to the dollar.

With 83.96% of the votes counted, Garcia has 54.69% of the valid vote and nationalist candidate Ollanta Humala 45.31%.

Garcia, president from 1985-1990, was infamous for draining Peru's coffers on social spending, limiting payments on the foreign debt and leaving office with raging hyperinflation. Garcia has said he has learned and will now run a responsible, austere government.

Jeff Bailey : 6/5/2006 12:35:28 PM

Ecuador's May CPI Down 0.14% on Month vs. Up 0.18% Year Ago

DJ- Ecuador's consumer price index fell 0.14% in May from the previous month, the government reported Monday.

That compares with a 0.07% on-month CPI increase in April, said Galo Arias, director of statistics at the National Statistics and Census Institute, or Inec, at a press conference.

Inec attributed May's data to decreases in the price of food and beverages.

The CPI rose 3.11% over the 12-month period through May, compared with a 3.43% increase for the 12 months through April.

From January through May, CPI rose 1.78%, compared with a 1.81% increase registered in the same period last year.

In May last year, CPI rose 0.18% on the month and 1.85% on the year.

The cities with the lowest CPI in May 2006 included Esmeraldas, Cuenca, Ambato and Loja.

The central bank has forecast that Ecuador's consumer price index could rise about 3.9% in 2006, but Economy Minister Diego Borja is forecasting that inflation will rise only 3% in 2006.

Jeff Bailey : 6/5/2006 12:32:27 PM

YM 11,169

Jeff Bailey : 6/5/2006 12:32:08 PM

YM 11,174 ... has refused to see a 5-minute interval close below 11,174 so far today.

Jeff Bailey : 6/5/2006 12:30:32 PM

YM 11,171 ... bears want the break here.

Jeff Bailey : 6/5/2006 12:16:17 PM

According to HSH Associates ... Today's National Average 30-year Fixed Rate Mortgage is 6.73% : 0.17% Total Points.

Jeff Bailey : 6/5/2006 12:13:47 PM

30-year YIELD ($TYX.X) 5.100% ...

Jeff Bailey : 6/5/2006 12:12:27 PM

Not a bad time to refinance a short-term, or adjustable rate mortgage to a 30-year fixed.

Jeff Bailey : 6/5/2006 12:11:42 PM

10-year YIELD ($TNX.X) 5.00%

Jeff Bailey : 6/5/2006 12:10:52 PM

BIX.X 381.60 -0.54% ... no test/trade at WEEKLY Pivot yet today.

Jeff Bailey : 6/5/2006 12:10:08 PM

SOX.X 470.05 -0.98% ... session low. Slips under WEEKLY Pivot.

Jeff Bailey : 6/5/2006 12:09:12 PM

YM Lower Stop Alert ... to 11,185

YM 11,176

Post-short profile low has been 11,169.

Jane Fox : 6/5/2006 12:00:47 PM

Jeff I think your YM short will turn out to be the trade of the day.

Jeff Bailey : 6/5/2006 11:57:57 AM

YM Lower Stop Alert ... to 11,197

YM 11,183

Jeff Bailey : 6/5/2006 11:42:44 AM

iShares Brazil (EWZ) $38.21 -0.52% Link ...

Jeff Bailey : 6/5/2006 11:40:38 AM

Market Applauds Latest Brazil Debt Repurchase Offer

DJ - Investors on Monday cheered Brazil's offer to repurchase up to $4 billion in U.S. dollar- and euro- denominated bonds as a fitting continuation of an effective debt-management strategy.

"The operation is very positive, because, with a high level of foreign reserves, it is more cost-effective for Brazil to use the money to pay debts than to leave it" sitting in central bank vaults, said Adauto Lima, an economist at WestLB bank, based in Sao Paulo.

Brazil's reserves currently stand at $63.3 billion.

"The improvement of the debt profile is always welcome," said Flavio Serrano, an economist at local brokerage Lopez Leon. "The government's strategy is correct."

In the wake of the announcement, Brazil's 2040 global bond was up nearly 11/16 at 123 11/16 bid, while the country's risk premium on JPMorgan's Emerging Markets Bond Index Plus tightened 17 basis points to 258 basis points over U.S. Treasurys.

The real currency, meanwhile, gained to BRL2.252 a dollar, versus Friday's BRL2.284 close.

Serrano also noted that even with the recent changes in the finance ministry, the long term strategy remains unchanged.

Earlier this year, government economist Guido Mantega assumed the top post at the finance ministry, replacing market friendly Antonio Palocci. Other changes followed, including appointment of former Brazilian Citigroup chief economist Carlos Kawall as treasury secretary, both of whom were welcomed by investors.

However, not all analysts agreed with the timing of the operation, due to the recent volatility affecting emerging markets, including Brazil. "In principle, the operation is positive, but I think the timing is not good," said Jason Vieira, an economist at the local GRC Visao Consulting Group. "The treasury could have waited a little longer."

Recently, countries like Brazil were hurt by a "flight to quality" as global investors pulled up stakes in emerging markets for the safe haven of more stable investments such as U.S. Treasurys.

"All actions focused on improving the debt profile are healthy," said Marcelo Assalim, who manages the equivalent of $4 billion in assets for the Sulamerica Investimentos fund in Sao Paulo. "The only negative point I see is the timing, because of the recent market volatility. But I understand that the government can't change its overall debt strategy because of every passing event."

The latest operation is part of a government plan, announced in January, to repurchase a total of $20 billion in overseas debt in 2006. From January through May, the treasury repurchased a total of $11.7 billion in debt.

The treasury confirmed that Monday's operation is part of the overall repurchase program.

"Brazil has pretty much resolved its foreign debt problems; the problem now is the domestic debt," said Lopez Leon's Serrano. "I think that will now be the treasury's main focus."

As of April, the latest figure published by the government, the country's domestic debt was 1.002 trillion Brazilian reals ($444.7 billion), equal to a little more than 50% of gross domestic product.

Brazil's treasury is in the middle of an aggressive campaign to replace floating-rate bonds, called LFTs, with fixed-rate paper. LFTs still account for 49.98% of the total debt. The government plans to reduce the proportion of LFTs to a range of 39% to 48% of total debt by the end of the year. LFTs are indexed to the benchmark Selic interest rate.

"We are targeting LFTs to decline to the floor of our original estimate, in other words 39%," said Deputy Brazilian Treasury Secretary Paulo Valle in an interview last week with Dow Jones Newswires.

According to the Brazilian Federal Treasury, the tender offer, which will occur between June 5-8, is meant to improve Brazil's debt profile. The result will be unveiled on June 9.

Credit Suisse and Morgan Stanley are coordinating the operation.

Jeff Bailey : 6/5/2006 11:17:36 AM

11:00 Internals found at this Link

Friday's Internals found at this Link

Jeff Bailey : 6/5/2006 11:12:30 AM

YM 11,200

Jeff Bailey : 6/5/2006 11:12:12 AM

YM adjust stop alert ... to 11,212.

Jeff Bailey : 6/5/2006 11:02:42 AM

11:00 Market Watch found at this Link

Jane Fox : 6/5/2006 10:58:36 AM

Herley industries' (HRLY) shares tumble 7.3% to $17.95 following q3 warning

HRLY sees q3 earns below its view, analysts' consensus cites unexpected losses at two domestic divisions

Jane Fox : 6/5/2006 10:56:10 AM

Hovnanian (HOV) Enterprises' stock down almost 5% to $30.79

HOV files for sale of $350m in senior notes

Jeff Bailey : 6/5/2006 10:45:21 AM

YM 5-minute interval chart at this Link

Jeff Bailey : 6/5/2006 10:41:30 AM

YM short entry alert 11,190 here, stop 11,208, target 11,155

Jeff Bailey : 6/5/2006 10:38:45 AM

Sociedad De Chile (SQM) $103.52 +3.07% Link ... UBS upgrades to "buy" from "neutral" on valuation.

DJ- Investment bank UBS Monday upgraded Chilean nitrates producer SQM to "Buy" following a recent tumble in the company's share price and following a weekend public bid for the company's B-series shares by a key shareholder.

"We believe current valuation levels offer an attractive entry point...whilst renewed interest in the shares from one of the two competing shareholder groups provides some downside protection, at a minimum," the bank said in its report distributed from New York.

Jane Fox : 6/5/2006 10:34:25 AM

Trizec (TRZ) deal is expected to close in q3 or q4.

Jane Fox : 6/5/2006 10:32:21 AM

Brookfield Properties (BPO) and Blackstone Group agree to buy Trizec companies in deal valued at $8.9 billion.

Jeff Bailey : 6/5/2006 10:20:16 AM

Phelps Dodge (PD) $84.95 -2.28% Link ...

Jeff Bailey : 6/5/2006 10:19:04 AM

Freeport McMoran (FCX) $55.20 -2.71% Link ... Warns of lower copper output at its Grasberg mine in Indonesia.

Reuters story Link

Jane Fox : 6/5/2006 10:03:54 AM

U.S. MAY ISM SERVICES NEW ORDERS 59.6% VS 64.6% IN APRIL

Jeff Bailey : 6/5/2006 10:03:47 AM

10:00 Market Watch found at this Link

Jane Fox : 6/5/2006 10:03:42 AM

U.S. MAY ISM SERVICES PRICES 77.5% VS 70.5% IN APRIL

MAY ISM SERVICES JOBS 58.0% VS 56.5% IN APRIL

Jane Fox : 6/5/2006 10:01:57 AM

U.S. MAY ISM SERVICES SLIGHTLY BELOW CONSENSUS 60.5%

MAY ISM SERVICES 60.1% VS 63.0% IN APRIL

Jeff Bailey : 6/5/2006 9:59:42 AM

Current OPEN MM Profiles found at this Link

Jane Fox : 6/5/2006 9:48:25 AM

STERLING FINL (STSA) DOWN 6.5% AT $29.16

JETBLUE (JBLU) UP 3.6% AT $11.14

MENTOR (MNT) DOWN 1.1% AT $42.55

RUSS BERRIE (RUS) DOWN 2.7% AT $13.10

RYANS RESTAURANT (RYAN) DOWN 1.2% AT $12.27

SEPRACOR (SEPR) DOWN 3.6% AT $49.43

CUTERA (CUTR) UP 35% AT $25.43

9:31 SANDISK (SNDK) UP 2.3% AT $56.41

GM DOWN 1.7% AT $26.04

Jane Fox : 6/5/2006 9:33:49 AM

Bulls beware AD line is -810 and AD volume below 0 and falling.

Jane Fox : 6/5/2006 9:18:10 AM

The only economic report we have today is the 10:00 ISM Non-manufacturing Business Index.

Jane Fox : 6/5/2006 9:00:40 AM

Dateline WSJ The global oil dynamic is showing some small signs of change, but there's no telling yet whether it will last.

Trading today followed the all-too-familiar tone of the past three years, with prices -- pushed historically high by tight supply and demand -- driven higher by geopolitical worry. Light sweet crude for July delivery was up more than a dollar at $73.35 a barrel in Asian trading on the New York Mercantile Exchange, as the Associated Press reports, following the latest somewhat cloudy threat from Iran. Ayatollah Ali Khamenei, the country's supreme leader, added his voice to the cacophony of official responses to a conditional U.S. offer of direct talks, saying Tehran could cut energy supplies leaving the Persian Gulf region if "Americans make a mistake about Iran," as the Financial Times reports. The warning, hearkening back to the days of armed naval escorts for tankers passing through the Strait of Hormuz in the 1980s, was apparently made in reference to the U.S.-European package of incentives aimed at persuading Iran to give up the enrichment of nuclear fuel.

That package, its details kept secret, hasn't been officially received by Tehran yet, though Iranian President Mahmoud Ahmadinejad -- Mr. Khamenei's subordinate -- welcomed the notion of talks, even as he rejected the one seemingly unalterable condition on enrichment. Should the currently calmer tone of the standoff again escalate to renewed talk of sanctions -- as many observers expect -- there is still some doubt that Iran would or could respond by throttling back its petroleum exports. As U.S. Secretary of State Condoleezza Rice said yesterday on "Fox News Sunday" in dismissing the threat, an overwhelming portion of Iran's budget comes from oil revenue, "so obviously it would be a very serious problem for Iran if oil were disrupted on the market." Mr. Ahmadinejad's reliance on fuel subsidies to boost his domestic support would make it even harder to lose that revenue. Still, the talk boosted oil prices, and that in turn has taken a toll on European stock-market prices this morning, the FT reports.

Jane Fox : 6/5/2006 8:57:26 AM

Here is the rest of the Iran story and could be why Oil is up today. The seemingly encouraging tone, however, was countered by other Iranian leaders. In a speech yesterday, Ayatollah Ali Khamenei stressed that Tehran maintained its right to develop nuclear power and threatened to cut off oil shipments to the West should Washington seek to attack Iran. His comments contradicted those made in recent months by senior members of Iran's oil ministry to The Wall Street Journal that Iran would never use oil as a weapon.

"If you make any mistake [to punish or attack Iran], definitely shipments of energy from this region will be seriously jeopardized. You have to know this," Mr. Khamenei said in a speech carried live on Iranian television.

Senior U.S. officials said the discord within Iran's leadership was evidence of a regime seeking to placate international and domestic constituencies. They also said the State Department wasn't particularly surprised by the conflicting responses, due to competing power interests inside Iran. Mr. Ahmadinejad is a popularly elected figure, while Mr. Khamenei, as Iran's Supreme Leader, was appointed by Iran's clerical establishment. These U.S. diplomats said it is notable that Tehran isn't dismissing direct talks. "They're not saying 'no,' which is significant," said a senior State Department official working on Iran

Jane Fox : 6/5/2006 8:55:35 AM

Genelabs' (GNLB) shares surge 58% to $1.20 in pre-market action w/ volume 239,070 on license/collaboration w/ Novartis

GNLB and Novartis to work together on hepatitis c program and to receive $20m from Novartis over two years

GNLB could get up to $175m if potential milestones met and could also receive royalty on co-developed products.

Jane Fox : 6/5/2006 8:50:56 AM

Belden (BDC) to close two cable mfg plants in US and will open mfg plant near Nogales, Mexico.

Jane Fox : 6/5/2006 8:45:28 AM

DAteline WSJ WASHINGTON -- A series of relatively conciliatory statements by senior Iranian officials over the weekend is raising hopes that Tehran may be preparing to respond positively to a call by the U.S. for direct talks over its nuclear program.

President Mahmoud Ahmadinejad said his government would seriously study a package of incentives, expected to be delivered by European envoys, aimed at persuading Iran to scrap development of nuclear technologies. He said a "breakthrough" was possible on the nuclear question, provided Washington and world leaders respected Tehran's right to develop peaceful nuclear energy and its role as a regional Middle East power.

Jane Fox : 6/5/2006 8:44:35 AM

Dateline WSJ CARACAS, Venezuela -- Saudi Arabia's oil minister confirmed that his country's massive crude-oil output has declined in recent months, but he attributed the trend to a drop in demand and denied the kingdom is aiming to limit supply.

In an interview after a meeting here of the Organization of Petroleum Exporting Countries, Ali Naimi said other cartel members are having trouble finding buyers for all the crude they are producing, at a time when global stores are near full and many refiners have closed facilities for routine maintenance. One Saudi official said an estimated three million barrels a day of refining capacity is out of action and unable to process crude, at a time when the world is using some 84 million barrels a day of oil products like gasoline and jet fuel.

"It's not just heavy oil. Even light oil is having problems" finding buyers, Mr. Naimi said, referring to premium grades of crude known as light crude that are highly prized by refiners because they have high gasoline yields.

Asked if the kingdom was easing up on supply because of concern about the buildup of inventories in the U.S. and other importing countries, Mr. Naimi rejected such a motive, replying: "At $70 a barrel?" Mr. Naimi suggested that producers will sell all the oil they can at such high prices.

The implication of Mr. Naimi's remarks is that Saudi Arabia would again open its oil spigots when buyers ask for more oil. For the past two years, the Saudis say, their policy has been to sell as much oil as buyers want, to the limit of the kingdom's production capacity.

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