Market Soapbox 05/03/07

THU, more up action, DJIA +30 on average volume with nice internals. All UP cept DJUA. Bonds down 10 yr yield +3 bps 4.67, $ up vs 120.385y & vs 1.3556E, gold up $684.6, WTI crude down $63.26

Yesterday "GM pill to swallow." Bitter... $602M to $62M, a 90% drop in Q1 profit on GMAC subprime loan losses. Emerging markets accounted for 33% of vehicle output. North America losses narrowed from ($292M) to ($46M).

New Century Financial the biggest subprime mortgage company to declare bankruptcy, closing its home lending unit and firing 2,000 people after failing to find a buyer. The Nattering One muses...

How many desperate homeowners will do the same? "Jingle Keys, Jingle Keys, Jingle all the way, I can't make my mortgage, so here's the keys to the house, take it REO today....

Bonds falling again as the 2yr is now inverted over the 10 year again.... YTD Crude +3.5%; Heating Oil +15.4%; Natural Gas +26% and drum roll please... Gasoline +40.3%

Same-store sales (-4.7%) at Kmart due to lower transaction volume and (-2.4%) at U.S. Sears stores, where home appliance sales fell.... Wonder why? Who cares?

Not the market.. cause Starbucks Q2 profit was up 18%... and coffee quaffing is the "real economy" you know... Today, despite GM, DJIA 22 for 25, tying a mark set in Jun-Jul 1959; closing at 13.241K, an 18th record high YTD.

SP500 riding up from 1495 to close at 1503; 24 points away from all time closing high March 23, 2000 @ 1527.40. SP500 1520-1530 is the next target.

FRI Non Farms Porridge must be just right for Golidlocks or the Bears come out to play early before next Wen options unwind.

Often wrong, but never in doubt, this is the Nattering Naybob and your not!!!

Comments