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Keene Little : 1/17/2007 12:19:07 AM

Adding to the cloudy picture here is the fact that the RUT looks like it finished a clean 5-wave up from January 9th and that one could be finished, as in kaput, rally over, all down hill from here. But if a pullback is followed by another rally above 800 then that one could be off to the races and I definitely would not want to be short in that case. But for now this one actually looks it may have topped out for good.

Keene Little : 1/17/2007 12:13:57 AM

I'm getting different impressions from different sectors and indices so it's difficult to tell what could be in store for this market this week. I've been thinking the DOW could rally up to the 12630 area based on some Fib projections for the rally from July and this 120-min chart shows a trend line along the highs since November crossing this area Wednesday/Thursday. As shown on the chart, there's a Fib projection (based on wave-5 = wave-1) at 12626 and it could get tagged on Wednesday if we get an early rally. Link

Assuming the DOW runs up and tops out around that level I'd be looking for a short play to set up. What I'm not sure about is whether it will be THE top or just the first leg up of an A-B-C move up from January 8th. But the answer to that question can't be guessed until we start down and we see whether it's an impulsive or corrective (choppy) decline. We of course don't even know if the DOW will stop rallying in this area but it's where I'll be looking for resistance.

Moving in a little closer on this SPX 15-min chart I'm showing some Fib relationships between the waves in the move up from January 10th. This is not a clear pattern and there are a couple of ways I could label it which doesn't add to any sense of clarity here. There's a potential Fib resistance zone in the 1433-1436 area so if the DOW reaches 12630 then SPX should be able to make it up to the higher end of that range, maybe 1437. The 1437-1439 level is the area I've been thinking SPX could run into trouble but the DOW got ahead of SPX on Tuesday. Link

So if we get an early rally in the morning watch those levels for signs of topping out. If we see the market pull back first thing in the morning instead, and take out Tuesday afternoon's lows, then the picture becomes cloudier since it could be just a slightly larger consolidation or it could be the start of something bigger to the downside. Unfortunately I'll have to wait to determine what an early decline could mean in the larger pattern. It's opex week and all the more reason to exercise a little more caution than usual.

Keene Little : 1/16/2007 11:34:20 PM

Wednesday's pivot tables: Link and Link

OI Technical Staff : 1/16/2007 9:59:59 PM

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Jeff Bailey : 1/16/2007 6:13:11 PM

Closing Internals found at this Link

Jeff Bailey : 1/16/2007 6:08:19 PM

February Crude Oil (cl07g) settled down $1.59, or -3.01% at $51.21.

Jeff Bailey : 1/16/2007 6:07:14 PM

Closing U.S. Market Watch found at this Link

Jeff Bailey : 1/16/2007 5:56:05 PM

Intel (INTC) $22.30 +0.76% .... $21.62 extended. Extended session low/high has been $21.49/$22.99

Jeff Bailey : 1/16/2007 5:48:26 PM

Rackable Systems Announces Preliminary Q4 Results

Company Press Release Link

Consensus was EPS of $0.27 on Revenue of $106.11M

Jeff Bailey : 1/16/2007 5:44:55 PM

Rackable Systems (RACK) $32.42 +2.49% ... plunges to $22.95 in extended.

Jeff Bailey : 1/16/2007 5:36:24 PM

Linear Technology (LLTC) $31.71 -3.23% ... lower at $30.78 extended.

Earnings Press Release Link

Consensus was EPS of $0.34 on Revenue of $275.4M

Jeff Bailey : 1/16/2007 5:30:25 PM

Israel Army Chief Of Staff Resigns - Defense Ministry

Jeff Bailey : 1/16/2007 5:27:11 PM

Intel (INTC) $22.30 +0.76% ... trades extended session low at $21.53

Jeff Bailey : 1/16/2007 5:07:17 PM

Iran President Sent Message To Saudi King On Iraq Cooperation

DJ- Iran's hard-line President Mahmoud Ahmadinejad said Tuesday that he sent a message to Saudi King Abdullah proposing that they cooperate in helping stabilize Iraq.

Ahmadinejad's comments came as Washington is trying to rally its Arab allies and isolate Iran.

"We, Saudis and other neighboring countries can help the Iraqi people to take the lead to consolidate their government's capability to stabilize and maintain security in their country," Ahmadinejad told the Saudi-owned satellite television channel.

"I sent a message to (Saudi) King Abdullah in this regard and the answer, generally, was positive," the Iranian president said in the interview taped Saturday in Venezuela, one of the countries on his Latin American tour.

Iran's top national security official, Ali Larijani, had delivered a message to King Abdullah, the official Saudi Press Agency reported on Sunday, but did not reveal its contents.

Iran's overture to Saudi Arabia appeared to be an attempt to counter U.S. efforts to rally its allies in the region and isolate Tehran.

Saudi Arabia has shown increasing alarm over Iran's growing influence in Iraq and across the Arab world, even as it has grown more worried over Iraq's chaos.

The U.S. has previously asked Saudi Arabia to use its close ties to Iraq's Sunni minority to encourage reconciliation with the Shiite-led government. Saudi Arabia has pressed the U.S. to ensure that Shiite militias are reined in.

Several Gulf countries, including Saudi Arabia, are alarmed by Iran's nuclear ambitions. They are concerned about potential environmental threat posed by reactors and the possibility that Iran would strike them if the U.S. launched military action.

Secretary of State Condoleezza Rice, ahead of her regional tour, rejected anew proposals for opening a diplomatic dialogue with Iran and Syria as a way to help stabilize Iraq.

She said Iran would demand U.S. concessions on its nuclear program while Damascus would ask for an easing of the U.S. opposition to Syrian policies in Lebanon as a price for cooperation.

Ahmadinejad said the Americans were in "trouble and they are seeking a way to get out of it while ensuring their economic interests and increase their hegemony over the region."

About Iran's nuclear program, Ahmadinejad reiterated that "we are always ready to talk, but if the dialogue is used as a means to impose something which is illegal then they should realize that it is a dead end." Iranian officials have said that efforts to make Iran roll back its nuclear program are not legal because it has the right to a peaceful nuclear program as a signatory to the Nuclear Nonproliferation Treaty.

Ahmadinejad denied that the Iranian people were concerned about the impact of United Nations sanctions or the possibility of military action by the U.S. and other countries that oppose Iran's nuclear program.

"They want, through psychological warfare, to make us retreat, but not a single person in Iran is worried," he said.

Jeff Bailey : 1/16/2007 4:44:47 PM

Semiconductor HOLDRs (SMH) $34.72 -1.05% ... $34.48 extended.

Jeff Bailey : 1/16/2007 4:44:12 PM

Advanced Micro Devices (AMD) $18.13 -0.71% ... $18.05 extended.

Marc Eckelberry : 1/16/2007 4:42:45 PM

NQ 1856.50 is what bulls need back. SOX did not look good today.

Jeff Bailey : 1/16/2007 4:41:58 PM

Intel (INTC) $21.75 now ... back above WEEKLY Pivot.

Extended session low/high has been $21.54/$22.99

Jeff Bailey : 1/16/2007 4:39:46 PM

SPY $142.96 -0.19% ... $142.89 extended.

Jeff Bailey : 1/16/2007 4:39:18 PM

QQQQ $45.28 -0.06% ... $45.17 extended.

Marc Eckelberry : 1/16/2007 4:39:11 PM

Getting whipped, 21.50. Things can change in the conference, but for now it seems those margins are spooking investors. Not the 60% of past years.

Jeff Bailey : 1/16/2007 4:38:04 PM

Intel (INTC) $22.30 +0.76% ... marked lower at $21.59 extended.

Earnings Press Release at this Link

Marc Eckelberry : 1/16/2007 4:21:49 PM

INTC whisper was .28, they did not meet although did beat on revenue. Margins are dipping below 50 it seems. Mixed picture, guidance is what will count now. Head and shoulder is looking real, unless the stocks gets back above 22.25.

Keene Little : 1/16/2007 4:10:16 PM

SPX consolidated around its December high of 1431.81, basically closing on that level. Anytime we see consolidation at resistance it usually means we should be looking for higher. I see no reason to doubt that outcome here. A little dip tomorrow morning to suck in some shorts and then it should proceed higher.

Keene Little : 1/16/2007 3:49:13 PM

If ES doesn't pull back towards 1436 by the close then that could be the first action tomorrow morning and then get a rally following that. Today's price action was boringly slow. The only one to give a decent move was ER which is down about 10 points ($1000) from this morning's high).

Keene Little : 1/16/2007 3:34:27 PM

The way this is setting up I'd say we're going to get a rally out of the gates tomorrow. ES is now pulling back after coming a tick shy of 1440 and now should find support around 1436. Today's sideways consolidation should set up the next leg higher tomorrow and perhaps INTC's earnings will be the excuse. However, a rally up near 1445 could do it and I'll be watching it carefully for a short play to set up. Tomorrow could be a lot more volatile than today (not hard).

Jeff Bailey : 1/16/2007 3:19:25 PM

Intel (INTC) $22.16 +0.13% ... earnings after the close. Consensus currently $0.25/share on Revenue of $9.44B.

Weekly Pivot Levels ... $20.42, $21.28, Piv= $21.71, $22.57, $23.00.

January "Max Pain Theory" currently tabulated at $20.00 ($2.50 increments)

Jeff Bailey : 1/16/2007 3:15:58 PM

Cisco Systems (CSCO) $28.17 -2.59% ...

Jeff Bailey : 1/16/2007 3:15:23 PM

Microsoft (MSFT) $31.17 -0.12% ...

Jeff Bailey : 1/16/2007 3:14:49 PM

Google (GOOG) $507.34 +0.46% ... after kissing its WEEKLY R1 ($512.90) and matching its prior all-time high of $513.00.

Jeff Bailey : 1/16/2007 3:11:46 PM

03:00 Internals found at this Link

Jeff Bailey : 1/16/2007 3:01:53 PM

03:00 Market Watch found at this Link

Jeff Bailey : 1/16/2007 2:32:50 PM

Top 10 Exchange Traded fund Winners ... PYZ $27.96 +2.64%, EWM $9.68 +1.89%, IYT $86.98 +1.87%, ICF $105.21 +1.53%, RWR $91.42 +1.38%, EWH $16.50 +1.35%, FXI $106.78 +1.30%, EWS $11.36 +1.24%, VNQ $80.03 +1.16%, MZZ $60.56 +0.98%

Jeff Bailey : 1/16/2007 2:28:14 PM

Top 10 Exchange Traded Fund Losers ... DBE $22.53 -3.84%, DBO $21.90 -3.86%, OIL $31.80 -3.51%, USO $43.24 -3.11%, DBA $26.16 -3.50%, DBC $22.43 -3.23%, GSG -2.63%, UCR $57.65 -2.70%, DBS $24.81 -2.09%, GSP $36.26 -1.65%

Keene Little : 1/16/2007 2:25:36 PM

So far this is how I see ES shaping up today--the sideways consolidation continues and hasn't done a whole lot since I last pointed out this possibility (1:07). A little higher, perhaps 1440, it could meet resistance and then turn lower again, finding support perhaps around 1436 +/-. This should resolve to the upside, either from here or after another pullback. Link

The 1445 area looks like a good upside target which should have SPX hitting the Fib resistance area I've been eyeing for a while now--1437-1439. That would also get the DOW up to its 12630 area which is potential Fib resistance as well.

Jeff Bailey : 1/16/2007 2:19:38 PM

Cisco Lower on Downgrades

Networking equipment maker Cisco Systems (CSCO) saw its shares sink 3% at mid-session after Banc of America Securities and Prudential cut their investment ratings on the stock.

CSCO $28.06 -2.97% Link ...

Jeff Bailey : 1/16/2007 2:12:44 PM

Centex Lower; Anticipates Q3 Loss of $2.00/share

Homebuilder's shares slide 3% after the company said it expects to lose $2/share for its fiscal Q3. The Dallas-based residential construction company said it will reduce its housing inventory, and trim its work force to help cut future losses.

CTX $51.48 -3.14% Link ...

Jeff Bailey : 1/16/2007 2:03:03 PM

Genesis Surges; Agrees to go Private

Shares surged 16% after the company said it's being acquired by private equity investment firms Formation Capital and JER partners for $63/share in cash.

GHCI $61.40 +16.17% Link ...

Jeff Bailey : 1/16/2007 1:54:12 PM

Contango Elects to Convert Its Series D Preferred Stock

Company Press Release Link

AMEX:MCF $20.62 -1.10% Link ...

Keene Little : 1/16/2007 1:40:45 PM

That broken downtrend line for ES is a bit lower for SPX. At 1427 that would take ES down to about 1435. It's looking more and more like ES 1435 area will be support if it gets down there.

Jeff Bailey : 1/16/2007 1:31:43 PM

Most Actives: SYMC $18.20 -11.13%, INTC $22.08 -0.22%, QQQQ $45.22 -0.19%, SIRI $4.16 +1.46%, CSCO $28.09 -2.83%, MSFT $31.16 -0.16%, F $7.99 +1.26%, SUNW $6.07 +0.16%, AAPL $96.64 +2.13%, SPY $142.86 -0.26%

Keene Little : 1/16/2007 1:30:43 PM

On Friday ES broke its downtrend line from December 18th through the January 3rd high ES, which is currently at 1436.25, and looks like it's pulling back for a retest.

Jeff Bailey : 1/16/2007 1:27:42 PM

DJ- Venezuelan Shares Tumble 12.5% On Nationalization Fears

Jane Fox : 1/16/2007 1:16:09 PM

SAN FRANCISCO (MarketWatch) -- San Francisco's budget analyst has raised concerns about plans by Earthlink Inc. (ELNK) and partner Google Inc. (GOOG) to operate a wireless Internet network in San Francisco. As previously reported, Mayor Gavin Newsom and Earthlink recently agreed to contract terms, which spell out Earthlink's plans to own and operate the network over which Google will deliver a free, possibly ad-supported Internet service. In his 42-page report, San Francisco budget analyst Harvey M. Rose outlined seven concerns, including an apparent conflict of interest that lets Earthlink allegedly limit competitors from leasing space on the network. As to Google, Rose said the No. 1 Internet search provider will be the sole provider of a free Internet service, thereby getting what amounts to unfair "exclusive access to users." Rose's report is part of the build up to a San Francisco County Supervisors' vote on the deal, possibly later this month.

Jeff Bailey : 1/16/2007 1:15:29 PM

SPX NH/NL 61:0

Dec. 14 and 15 NH/Nl were respective 66:0 and 67:0.

Jeff Bailey : 1/16/2007 1:14:09 PM

01:00 Internals found at this Link

Keene Little : 1/16/2007 1:07:18 PM

If instead of a pullback to ES 1435.25 it does more of a sideways chop inside of today's range then it would be fitting for a small 4th wave correction. After it's done it will lead to one more high before starting a larger pullback at a minimum. The sideways consolidation would need an up-down sequence before setting up the run higher. So depending on how long the sideways consolidation lasts (assuming that's what we'll get) we could see a rally late this afternoon or tomorrow morning.

Jeff Bailey : 1/16/2007 1:02:26 PM

01:00 Market Watch found at this Link

Keene Little : 1/16/2007 1:00:03 PM

An A-B-C down with equality for ES is at 1435.25 which is also at the bottom of a parallel up-channel for price action since Thursday. That's the leg up that looks like it needs a new high to finish the wave count. Any break below 1434 would negate this and suggest at least a deeper pullback is in progress. Link

Keene Little : 1/16/2007 12:56:25 PM

Looks like one too many tests of its broken uptrend line for the DOW. Now if we get the new daily low, two equal legs down is at DOW 12524 (YM 12579). YM would close Friday's gap at 12577.

Jeff Bailey : 1/16/2007 12:41:27 PM

QQQQ $45.30 -0.02% Link ...

Jeff Bailey : 1/16/2007 12:40:18 PM

Google (GOOG) $512.12 +1.40% Link ... probes WEEKLY R1 ($512.92).

Jeff Bailey : 1/16/2007 12:37:13 PM

Freeport McMorRan (FCX) $53.86 -2.09% Link ...

Earnings Press Release Link

Consensus for Q4 was EPS of $2.12 on Revenue of $1.72B

Jane Fox : 1/16/2007 12:34:18 PM

* New-home sales to fall 8% in 2007: Mortgage Bankers Assoc.
* MBA sees existing-home sales falling 7% in 2007
* Fixed mortgage rates to rise to 6.5% by year-end: MBA

Jeff Bailey : 1/16/2007 12:25:11 PM

CNN- US House Office Building Evacuated Due To Water Problem

Jeff Bailey : 1/16/2007 12:20:18 PM

Venezuala: Service Firms Not in Energy Takeovers

Reuters Story Link

HAL $28.73 -1.33% Link

SLB $57.92 +0.06% Link ...

Keene Little : 1/16/2007 12:11:29 PM

This morning, after breaking its uptrend line from Wednesday, the DOW has been slowly climbing up underneath the trend line (it seems to like to do this) but looks bearish for another leg down. If it drops to a new low, again look for two equal legs down for potential support. If it drops from here it could find support around 12520 (cash). Link

The pullback from the high looks corrective and whether it heads to a new high from here or from a lower low, I don't think the rally is finished yet. If we've got new highs yet to come I don't think the DOW will break 12500.

Jeff Bailey : 1/16/2007 11:46:27 AM

Symantec declines on disappointing 2007 profit outlook

AP Story Link

SYMC $18.74 -8.49% Link ...

Jeff Bailey : 1/16/2007 11:40:31 AM

BP REPORT FINDS 'SIGNIFICANT' PROBLEMS AT 5 REFINERIES

DJ- An independent panel set up to review BP's refinery operations in the U.S. finds 'significant' problems at five refineries and says the company's goals, such as cost-cutting, often overrode safety concerns at plants. Report was commissioned in wake of a deadly March 2005 blast at its Texas City refinery.

BP $63.50 -1.76% Link ...

Jeff Bailey : 1/16/2007 11:36:42 AM

WCI COMMUNITIES RISES ON ICAHN MOVES

DJ- Shares rise 10% after financier Carl Icahn, who holds a 14.57% stake in the company, says he intends to help the real estate developer 'unlock the inherent value' of its stock.

WCI $23.20 +10.37% Link ...

Jeff Bailey : 1/16/2007 11:34:21 AM

GOLDMAN SACHS TO BUY USI IN $1.4B DEAL

DJ- Goldman Sachs' private equity arm offers to pay $17 a share for insurance broker, a 9.3% premium to Friday's closing price. Equity portion of deal is about $1 billion, and Capital Partners will put about $400 million toward debt.

GS $213.42 -0.26% Link

USIH $16.54 +6.36% Link ...

Jeff Bailey : 1/16/2007 11:26:48 AM

EXPRESS STARTS CAREMARK EXCHANGE OFFER

DJ- Express Scripts offers $29.25 in cash and 0.426 shares of Express Scripts for each share of Caremark. Express Scripts says offer has a value of $56.87 a share, or a 7% premium to the current value of Caremark's planned deal with CVS.

ESRX $65.56 +1.12% Link ...

CMX $56.53 -0.52% Link ...

CVS $31.71 -0.72% Link ...

Jeff Bailey : 1/16/2007 11:23:52 AM

SAUDIS SAY NO NEED FOR EXTRA OPEC CUTS NOW

DJ- Oil prices fall after Saudi Oil Minister Ali Naimi says OPEC doesn't need to implement further cuts in its output and that the market is significantly healthier than it was in October.

Jeff Bailey : 1/16/2007 11:23:05 AM

US HIGH COURT LETS IBM PENSION RULING STAND

DJ- Supreme Court confirms lower court ruling that IBM's 1999 switch to a cash-balance retirement plan didn't discriminate against older workers, ending a class-action lawsuit that could have cost $1.4 billion.

IBM $100.81 +1.47% Link ...

Jane Fox : 1/16/2007 11:23:01 AM

The bulls no longer have the ball. Link

Jeff Bailey : 1/16/2007 11:21:06 AM

GE TO BUY SMITHS AVIATION UNIT FOR $4.8B

DJ- GE agrees to pay $4.8 billion for Smiths' aviation unit, a deal that moves it into some of the markets it had hoped to enter when it tried to buy Honeywell. GE also takes step back from one of CEO's big growth initiatives, homeland security.

GE $38.09 +0.52% Link ...

Jeff Bailey : 1/16/2007 11:17:04 AM

WELLS FARGO 4Q NET UP 13% ON LOAN GROWTH

DJ- Wells Fargo 4Q net rises 13% to $2.18 billion, or 64c a share, as revenue grew by 11% to $9.4 billion. Analysts expected per-share earnings of 64c. Average loans increase 11% from 3Q.

WFC $36.38 +2.47% Link ...

Jane Fox : 1/16/2007 11:15:46 AM

Crude emini contract hits a new low at 51.250

Jeff Bailey : 1/16/2007 11:15:34 AM

TD AMERITRADE UP AS 1Q NET JUMPS 69%

DJ- Shares climb 6% as online discount brokerage posts fiscal 1Q net of $145.6 million, or 24c a share, and revenue surges 93% to $535.2 million. Result includes gain of $614,000 from sale of investments. Analysts expected EPS of 22c.

AMTD $18.38 +5.93% Link ...

Jeff Bailey : 1/16/2007 11:12:43 AM

11:00 Internals found at this Link

Jane Fox : 1/16/2007 11:02:05 AM

WASHINGTON (MarketWatch) -- Sen. Barack Obama announced Tuesday that he was taking the first step toward a bid for the Democratic presidential nomination in 2008 by filing papers to form a presidential exploratory committee.

In a message posted on his Web site, Obama, a 45-year-old freshman senator from Illinois, said he would announce on Feb. 10 whether he would follow through with a run for the White House.

Jeff Bailey : 1/16/2007 11:01:42 AM

11:00 Market Watch found at this Link

Jane Fox : 1/16/2007 10:59:59 AM

And there you have your new daily lows across the board.

Keene Little : 1/16/2007 10:59:16 AM

Getting some new lows now. If this is to be just a small pullback watch for two equal legs down from this morning's high to be support. That's at ES 1435 amd YM 12578.

Jane Fox : 1/16/2007 10:42:26 AM

Markets are hovering around daily lows and that usually means lower lows.

Jane Fox : 1/16/2007 10:40:34 AM

ER makes new daily lows but is the only market to do so.

Keene Little : 1/16/2007 10:32:22 AM

Internals are flat and the market is flat. Not a whole lot to do but watch this to see what is setting up. There's a possibility, as I look at the short term price pattern in the move up from Thursday afternoon, that we're due another minor new high before we'll at least get a deeper pullback. If ES drops below 1434 then the move up from Thursday is finished but until then I see more upside (possibly to retest its Monday morning high of 1444.50).

Jane Fox : 1/16/2007 10:08:29 AM

Watch the VIX today. It is making new daily highs supporting ES's new daily lows. Last week it was the internal you had to keep an eye on. Heck it is the internal you always have to keep an eye on.

Keene Little : 1/16/2007 10:05:19 AM

The market is struggling to go anywhere and while the futures are negative that's of course due to the small pop they got on Sunday/Monday. The DOW and SPX are still holding on to their uptrend lines but a break below Friday afternoon's lows would say we've topped out at least for now.

Jeff Bailey : 1/16/2007 10:01:55 AM

10:00 Market Watch found at this Link

Jane Fox : 1/16/2007 9:59:44 AM

The TRIN, the only internal not supporting the bulls, has now fallen back into its PDR.

Jane Fox : 1/16/2007 9:57:10 AM

As you saw last week the bears can intercept the ball even though it looks like the bulls have a firm grip on it but the odds are against you if you try to short a market with the AD line and volume this strong.

Jane Fox : 1/16/2007 9:55:10 AM

As long as these two look like this I would not be short. Link

Jane Fox : 1/16/2007 9:53:16 AM

... but the Dow's dily MACD and RSI are not making new highs which is a huge red flag for anyone out there who is long this market.

Jane Fox : 1/16/2007 9:51:29 AM

Dow industrials reach all-time high in intraday trading

Jane Fox : 1/16/2007 9:45:45 AM

ER is the only market to trade above its PDH intraday. Link

Jane Fox : 1/16/2007 9:40:33 AM

... However, the TRIn at 1.37 is telling you there is something not so bullish out there.

Jane Fox : 1/16/2007 9:39:41 AM

AD line is a very healthy +875 and Ad volume above 0 and climibing.

Jeff Bailey : 1/16/2007 9:38:04 AM

Weekly/Monthly Index Pivot Matrix found at this Link

Keene Little : 1/16/2007 9:25:15 AM

Watch the uptrend lines from last week's low to see if the short term uptrend stays intact today. For YM it's near 12600 and for ES it's near 1439.25 so close to being tested just before the open here.

Jane Fox : 1/16/2007 9:19:54 AM

NEW YORK (MarketWatch) - The Bank of Canada on Tuesday left its target for the overnight rate unchanged at 4.25%, as expected. The bank acknowledged weakness in the second half of 2006, due to slower U.S. economic growth, but projected that economic growth will pick up to about 2.5% in the first half of 2007. The bank also said that inflation has evolved largely in line with expectations, "with total [consumer price index] slightly lower than projected and core inflation slightly higher." Inflation should average just above 1% in the first half of 2007, returning to the 2% inflation target in early 2008 and core inflation should return to 2 per cent in the first half of 2007 and remain there, the bank said in a statement accompanying the rate hike. The Canadian dollar, or the loonie, last rose 0.2% at C$1.1653.

Keene Little : 1/16/2007 9:11:10 AM

The poor numbers for the Empire State index pulled the futures back to where they were at Friday's close. It wouldn't be surprising to see the highs from Sunday night/Monday morning get tested at some time during today. Bears need to watch out for the bad news bulls.

Jane Fox : 1/16/2007 9:10:44 AM

Pfizer Inc. (PFE) CEO Jeffrey B. Kindler is likely to announce a plan to cut several thousand jobs, including from the European sales force, when he makes an analyst presentation, The Wall Street Journal reported Tuesday, citing unnamed people close to the situation. Kindler's strategy, to be outlined Monday, may be to contain spending by keeping research-and-development costs flat, while cutting other costs dramatically, the report said.

Jane Fox : 1/16/2007 9:10:10 AM

General Electric Co. (GE) on Monday agreed to buy the aerospace business of U.K. engineering company Smiths Group for $4.8 billion in cash. GE also agreed to enter a joint venture with Smiths by combining its homeland protection unit with Smiths' detection division.

Jane Fox : 1/16/2007 9:09:24 AM

CRude hit a low of 51.75 overnight but it hit a low is 51.575 on Friday so no new lows. I see a bottom forming on the daily charts so we may get a samll bounce from here.

Please note that crude and the US$ did trade yesterday. Link

Jane Fox : 1/16/2007 9:02:40 AM

Even though the Empire State Index was not as rosy as the bulls would have liked, the only market to trade below its PDH is NQ. ES is now testing its PDH and finding support. Link

Jane Fox : 1/16/2007 8:57:08 AM

NEW YORK (MarketWatch) -- Crude-oil futures tumbled early Tuesday after Saudi Arabia's oil minister said he believes there is no need for major oil producers to implement further production cuts, disappointing hopes that the Organization of the Petroleum Exporting Countries would intervene to prop up prices after recent sharp declines.

Crude for February delivery was last down 89 cents, or 1.7%, at $52.10 a barrel in electronic trade. The contract struck a fresh 18-month low in electronic trade Monday when the New York Mercantile Exchange was closed for the Martin Luther King Day holiday.

Saudi Oil Minister Ali Naimi told reporters at an oil conference in India that he believes the market is "significantly healthier" now than it was in October, when OPEC agreed to cut output by 1.2 million barrels a day, Dow Jones Newswires reported.

Jane Fox : 1/16/2007 8:53:01 AM

WASHINGTON (MarketWatch) -- Manufacturing activity in the New York area fell sharply in January to its lowest level since the summer of 2005, the New York Federal Reserve Bank said Tuesday.

The Empire State index fell to 9.1 in January from 22.2 in December.

The decline was worse than Wall Street expected. Economists were forecasting the index to slip to 20.0 from the initial reading of 23.1 in December.

There were few silver linings in the details of the report.

The new orders, shipments and employment indexes fell sharply, while the inventories index dropped to its lowest level in well over a year.

The Empire State index is of interest to traders primarily because it's seen as an early forecast of the national Institute for Supply management factory survey due out in two weeks. In December, the ISM manufacturing climbed back above 50, a sign of contraction in activity, after falling below the benchmark for the first time in five years in November.

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