Stock Market News & Stocks to Watch from StraightStocks » Hurricane Gustav

Wracked by Problems, the U.S. Economy Keeps Digging Its Way Out

William Patalon lll — Mon, 22 Sep 2008 05:30:11 +0000

By William Patalon III Executive Editor Money Morning/The Money Map Report Where to start? Market volatility is sure to continue for the indefinite future as investors, economists,... Money Morning is here to help investors profit han...

Global Margin Call Pushing Oil Prices Lower …

Sean Brodrick — Wed, 17 Sep 2008 07:30:00 +0000

The commodity correction continues. And it's getting more painful by the minute as big trading houses like Lehman and Merrill Lynch go belly up or are forced into mergers. I think we're ...

Hurricane Ike is the Latest Wild Card in the “Guess the Gasoline Price Game”

William Patalon lll — Mon, 15 Sep 2008 00:50:20 +0000

By William Patalon III Executive Editor Money Morning/The Money Map Report Last week’s crude and gasoline inventories dropped more than expected as the effects of Hurricane Gustav... Money Morning is here to help investors profit han...

Stone Energy Corp. (SGY) Reports Impact from Hurricane Gustav

QualityStocks — Mon, 08 Sep 2008 13:36:04 +0000

Stone Energy (SGY) is an independent oil and natural gas company headquartered in Lafayette, Louisiana. The companyâ€™s business strategy is to increase shareholder value through the acquisition, exploration and development of oil and natural gas in mature and emerging fields. Stone currently operates in the Gulf of Mexico, onshore Louisiana, and is also [...]

With OPEC Meeting Looming, and Emerging Markets Growing, Oil Prices May Only be Temporary

William Patalon lll — Mon, 08 Sep 2008 10:48:43 +0000

By William Patalon III Executive Editor Money Morning/The Money Map Report Analysts are trumpeting the recent drop in oil prices as a step toward normalcy. But is this celebration... Money Morning is here to help investors profit handsomely ...

Business Week’s Gene Marcial’s Stock Picks 9/15 issue

CEO Blogger — Fri, 05 Sep 2008 16:38:15 +0000

Gene Marcial, Business Week’s Stock Guru and Inside Wall Street columnist recommended the following stocks, which can be tracked at: http://trackthepros.com/ 1. Noble a. global demand for offshore drilling services and day rates for equipment use are on the rise,” b. Noble is operating at near-full capacity, having signed long-term contracts as demand for rigs continues to exceed supply. c. [...]

Business Week’s Gene Marcial’s Stock Picks 9/15 issue

CEO Blogger — Fri, 05 Sep 2008 16:38:15 +0000

Isle of Capris Casinos, Inc. (ISLE) Comments on First Quarter Earnings and Property Closure Due to Hurricane

QualityStocks — Fri, 05 Sep 2008 12:02:06 +0000

Isle of Capris Casinos, Inc. (NASD: ISLE), a gaming and entertainment company that operates 18 casino properties, recently reported its financial results for the first quarter of fiscal year 2009 ended July 27, 2008. The company’s first quarter net revenues increased by $3.8 million, a 1.4 percent year-over-year gain, which improved the quarterly net loss [...]

At the Intersection of Cantarell and HoweStreet

Sean Brodrick — Thu, 04 Sep 2008 12:40:15 +0000

I talked to Phil at HoweStreet.com yesterday. You can listen HERE.

And yesterday in MoneyandMarkets.com I wrote about Mexicoâ€™s supergiant oil field, Cantarell, which is in some serious trouble. Hereâ€™s that â€¦

A Storm Called Cantarell
by Sean Brodrick Wednesday, September 03, 2008 7:30 AM
The oil industry along the Louisiana coast got off lightly from Hurricane Gustav. While 1.3 million barrels of oil and seven billion cubic feet of natural gas per day stopped pumping temporarily, ... [More...]

XX Seanâ€™s note: After I published that story, I then found another story on Mexican oil woes. Itâ€™s interesting â€¦

Cantarell Is Not Mexico's Only Oil Production Problem
There are problems in two other large oil fields, the Chicontepec Basin and Ku-MaloobZaap. These two fields make up 72% of Mexico's non-Cantarell proven reserves. The fields differ significantly from Cantarell in terms of geology, potential productivity, distance from distribution systems, and technical requirements.

News You Can Use for Thursday

Sean Brodrick — Thu, 04 Sep 2008 12:38:02 +0000

Hurricane Ike went from a tropical storm to a category 4 monster storm in a matter of hours. You can officially start freaking out now.

Here is some other news ...

ENERGY

Crude Oil Rises as Hurricane Ike Strengthens in Atlantic, Dollar Declines Crude oil rose for the first time in five days as Hurricane Ike gained force in the Atlantic, causing concern that U.S. oil supplies may be disrupted.

Oil Producers May Compel Opec to Cut Supply
There are indications that major oil producers may compel Organisation of Petroleum Exporting Countries (OPEC) to cut supply when the group meets on September 9, in Vienna, Austria.

OPEC's Crude Oil Production Fell 0.6% in August, Survey Shows
(Bloomberg) -- The Organization of Petroleum Exporting Countries' oil production dropped 0.6 percent in August, led by declines in Iraq and Saudi Arabia, a Bloomberg News survey showed.

OPEC pumped an average 32.575 million barrels a day last month, down 200,000 barrels from July, according to the survey of oil companies, producers and analysts. July output was revised down by 50,000 barrels a day. Production by the 12 members with quotas, all except Iraq, declined 50,000 barrels to 30.265 million barrels a day.

Australia's oil production down, but SA defies trend
AUSTRALIAN oil production dropped 11.5 per cent over the past financial year with all but one of the major oil producing basins experiencing a decline, a report from EnergyQuest says.

Oil prices drop as US opens reserve taps
LONDON (AFP) - Oil prices fell on Wednesday as the US government decided to release crude stocks from its strategic reserve after Hurricane Gustav halted energy production in the Gulf of Mexico.

AGRICULTURE

Wheat Extends Gains, Ends Longest Slump in 2 Years, on U.S. Export Demand Wheat climbed for a second day amid speculation the recent price drop to the lowest in about a month will attract overseas buyers. Corn and soybeans declined.

US ECONOMY

`Financial Tsunami' to Engulf Markets Unless Treasury Steps In, Gross Says The U.S. government needs to start buying assets to stem a bourgeoning ``financial tsunami,'' according to Bill Gross, manager of the world's biggest bond fund.

Jobless Claims in U.S. Rose More Than Forecast as Employers Faced Slowdown Unemployment rolls in the U.S. rose to the highest level in almost five years, and last week's initial claims for jobless benefits exceeded forecasts, as employers cut staff in the face of a slowing economy.

Ford sales plunge
Despite a slide in gas prices last month, sales of Ford's trucks and more fuel-efficient cars plunge nearly 27% in August -- far worse than forecasts.

GLOBAL ECONOMY

China's Manufacturing Economy in Recession?
On other boards I am reading, many are anticipating a huge jump in oil and gas prices next week. I do not know if that will happen, but I will offer the opinion that if it does not happen, or if it happens and prices quickly reverse lower, they will keep going a lot lower than most energy bulls think.

The Most Important Fact to Know About Oil Investing

Graham Summers — Wed, 03 Sep 2008 10:42:27 +0000

Sep 3rd, 2008: Beware any oil analyst who's certain

Stocks Stumble after a Gap Open

Market Speculator — Wed, 03 Sep 2008 10:23:08 +0000

Stocks were set to soar on Tuesday with crude oil prices touching multi-month lows. Hurricane Gustav did not cause the damage that was expected additionally, it was weakier than expected upon landfall. On top of the crude oil trade natural gas has been simply anhilated, showing signs that there is plenty of supply of natural [...]

Wilsey Asset Management’s Latest Picks

CEO Blogger — Tue, 02 Sep 2008 18:42:40 +0000

Anxiety over Hurricane Gustav is fading, oil prices are falling, and Brent Wilsey of Wilsey Asset Management says it’s time for stock-market investors to get into the action. “This market is moving forward, and people sitting on the sidelines, they’re missing some great opportunities here,” he told CNBC. Track his picks at: http://trackthepros.com/stocks/category/855 Recommendations: So where does he find the [...]

Coal not so cool today: Arch Coal, Peabody fall hard (ACI, BTU)

Ben Stevens — Tue, 02 Sep 2008 16:40:43 +0000

Coal is not King today, that crown goes to oil. Peabody (NYSE:BTU) is down 12% and Arch Coal (NYSE:ACI) down 14%. If these guys continue to drop, we may have to Buy on weakness.

The Morning Edge – September, 2 2008

QualityStocks — Tue, 02 Sep 2008 13:44:56 +0000

The major theme of todayâ€™s trading will be the response of the energy sector in the aftermath of Hurricane Gustav. Index futures point to strong openings as crude oil and natural gas continue to sell off after posting losses during special trading sessions over the weekend and Labor Day holiday. The storm, which [...]

Monday Morning ARGH!

Sean Brodrick — Tue, 02 Sep 2008 13:18:31 +0000

Commodities are getting clocked this morning. The catalyst is that Hurricane Gustav didn't harm the energy infrastructure in the Gulf of Mexico, but really, you have to give credit to a strong, resurgent US dollar.

A HUGE pullback in oil today. It started in electronic trading in a week that is known for light trading volume, but you can't argue with this chart.

Gold is following oil lower today, even though India, the world's biggest buyer of bullion, increased its August gold imports by 56%. What's the driver, then? The rising dollar! You can’t argue against the bullish action in the dollar.

Here is other news you can use ...

ENERGY

Oil falls as global demand concerns re-emerge

SINGAPORE (AP) -- Oil prices fell below $106 a barrel Tuesday in Asia -- $10 below its close Friday before the Labor Day weekend -- as investors shifted their focus to slowing global demand after worries about Hurricane Gustav subsided.

Wind, solar energy built on temporary tax breaks
Congress is putting the short-term future of renewable energy companies in jeopardy even as the presidential candidates and most lawmakers hail windmills, solar panels and biofuels as long-term solutions to high gasoline prices and global warming.

Russian gas oil, gasoline exports fall in Aug

Russian exports of gas oil and gasoline fell in August. Russian oil companies exported 86,219 tonnes per day of gas oil in the first 27 days of August, down by 5.7% from 91,390 tonnes per day in the first 30 days of July. Exports of gasoline, which usually amount to just around 10% of total sales of the fuel, fell by 14.7% to 9,167 tonnes per day from 10,740 tonnes per day in July.

MISC Says It's Halting Ships Travel to Gulf of Aden After Vessels Hijacked MISC Bhd., the world's biggest owner of liquefied natural gas tankers, halted its vessels from entering the Gulf of Aden until more security measures are in place after pirate attacks off the coast of Somalia.

AGRICULTURE

Corn, Soybeans Tumble as Oil Declines on Reduced Hurricane Damage Concern Corn plunged by the trading limit and soybeans tumbled as oil fell after Hurricane Gustav passed the U.S. Gulf Coast without causing major damage, driving the dollar up and reducing demand for the crops as an alternative investment.

GOLD

Gold Declines for Third Day as Crude Oil Slips, Dollar Rallies

Gold fell for a third day in London as the dollar strengthened and crude oil slid, reducing demand for the metal as an alternative investment and inflation hedge. Platinum also dropped.

US DOLLAR

Dollar Bears' Mea Culpa Makes Ben Bernanke No Liability in Global Slowdown Federal Reserve Chairman Ben S. Bernanke has gone from a dollar liability to an asset, sparking a rally that even bears say shows few signs of ending

CANADA

Canada's Harper Seeks National Election, Opposition Leader Dion Says Canadian Prime Minister Stephen Harper will likely call national elections after failing to find common ground with rival parties for the agenda of the next session of Parliament, opposition Liberal Leader Stephane Dion said.

GLOBAL ECONOMY

China's Spending May Thwart Olympic Curse, Buoy Asia

After four straight quarters of decelerating gross domestic product growth, the government is considering a fiscal stimulus of as much as 400 billion yuan ($58 billion), according to economists and reports in domestic news media.

A plan awaiting approval from the State Council and the National People's Congress includes 220 billion yuan of spending and 150 billion yuan of tax cuts, the Beijing-based Economic Observer newspaper reported last week.

China has tripled railway spending this year to 300 billion yuan. The current five-year plan, which runs through 2010, calls for investing almost 4.8 trillion yuan on power stations, waterways, roads and other infrastructure projects -- more than the combined output of Taiwan, Thailand and Vietnam. Reconstruction after May's Sichuan earthquake could cost another 1 trillion yuan, the government says.

As global economy slows, visions of $80 oil grow

Economist Glen Langan told BloggingStocks a further decline in oil to below $100 is consistent with the recent slowdown in global economic growth, but he'll await further international GDP data before arguing for an oil dip to the $80 range.

"The key here, again, as with the uptrend in the previous four years, is China. If oil consumption growth slows in China, oil will experience a large sell-off, as institutional investors and traders sense that the great bull run in commodities is at least pausing," Langan said. "China is likely to register GDP growth of about 10% in Q3, and if it's below 9% or 8.5%, investors will take that as a sign that a slowdown is ahead, which is bearish for commodity prices." China's economy grew 10.2% in Q2 and 10.4% in 1H 2008.

Australia Cuts Key Interest Rate for First Time Since 2001 as Growth Slows Australia's central bank cut its benchmark interest rate for the first time in seven years amid signs the nation's $1 trillion economy is slowing.

Monday Morning ARGH!

Sean Brodrick — Tue, 02 Sep 2008 13:18:31 +0000

ENERGY

Oil falls as global demand concerns re-emerge

Russian gas oil, gasoline exports fall in Aug

AGRICULTURE

GOLD

Gold Declines for Third Day as Crude Oil Slips, Dollar Rallies

Gold fell for a third day in London as the dollar strengthened and crude oil slid, reducing demand for the metal as an alternative investment and inflation hedge. Platinum also dropped.

US DOLLAR

CANADA

GLOBAL ECONOMY

China's Spending May Thwart Olympic Curse, Buoy Asia

As global economy slows, visions of $80 oil grow

Energy Blast – Sept 2, 2008

Robert Amsterdam — Tue, 02 Sep 2008 06:45:44 +0000

The retreat of Hurricane Gustav has seen oil prices fall. “If the industry is able to get on its feet quickly, any long-term impact on petrol production would prove minimal.” Russia will cut oil export duty by 2% for the first time in a year this October, in order to tie in with global prices. Gazprom Neft plans to apply for permission to ship crude oil to China via Kazakhstan this year. Conflict in Georgia may cause Australia to reconsider a uranium supply agreement with Russia. French energy group GDF Suez is defending the security of Russian gas supplies. On the US’ controversial nuclear deal with India.

Lower Oil was not Enough to Push Stocks Higher – Closing Market Commentary

Alex Kolb — Tue, 02 Sep 2008 00:00:00 +0000

Stocks opened September in a bullish mood after Hurricane Gustav did not cause as much damage as feared over the Labor Day weekend in the Gulf of Mexico. Crude sold off hard to open the session which buoyed stock investors but the rally couldn't hold.

The Dow, after surging over 200 points in the morning session, finished the day down 26.63 points, or 0.2% to 11516. The Dow was dragged down by Exxon (XOM) and Chevron (CVX), both which lost over 3% during the session. The S&P 500 Index fell 5.3 points, or 0.4%, to 1277. The Nasdaq Composite Index also couldn't hold onto big early gains, losing 18.28 points, or 0.8%, to 2349.

Crude was the big story after Gustav weakened by the time he hit the Louisiana coast. Crude fell as much as 8.7% during today's session before rallying a bit to close down only $5.75, or 5.0%, to $109.71 a barrel. The last time crude was at this level was in early April.

Natural gas also fell sharply, declining 68.2 cents, or 8.6%, to $7.261 per million Btu.

The Gulf coast energy facilities remain shut but early reports indicate that the damage has not been as extensive as feared several days ago. However, it will take anywhere from 5 to 10 days for refineries to resume operation given the power outages in the region. Platforms and pipelines are currently being inspected for damage.

The strengthening dollar also contributed to oil's slide, as it continued its recent rally, closing up 0.8% to $1.4508 per euro. It touched as high as $1.4467, the strongest since early February.

The tropics continue to be active, with three named storms, Hanna, Ike and Josephine, in the Atlantic. Currently, none of the three is expected to threaten any energy rich area but traders continue to eye the tropical activity.

The Focus List

A few of the commodities related holdings took a hit today on oils drop, resulting in a 2.32% decline for the Focus List.

Stocks such as Fluor Corporation (FLR) and CF Industries Holdings, Inc. (CF) fell today on no news by 8% and 9%, respectively. These, and other Focus List names from the energy arena, exhibited a short- term reaction Tuesdays crude sell off but remain sound fundamentally. While energy holdings are tough to watch on a day like today, having them still translates into well diversified portfolio, especially on days that oil moves up.

On the up side, GameStop Corp. (GME) jumped 3.4% in todays down market. There were no major developments on GME.
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Gustav’s impact to the Market this Week: Airlines and more

Stockmasters Staff — Mon, 01 Sep 2008 23:33:03 +0000

The market knows from experience that infrastructure problems can emerge long after a hurricane strikes; early reports following Katrina's landfall in 2005 erroneously said the flooding in New Orleans was not going to be problematic. Stocks fell in overseas trading Monday after crude fell below $111 a barrel in electronic trading on the New York Mercantile Exchange, and their declines will weigh on the Dow Jones industrials and other indexes.

Energy Blast – Sept 1, 2008

Robert Amsterdam — Mon, 01 Sep 2008 06:17:11 +0000

Hurricane Gustav has caused 96% of the oil production in the Gulf of Mexico to be shut off; Shell and Conoco also shutting down operations. Could Russia cut crude oil supplies to Europe? The country “is willing to use the oil weapon,” notes the Telegraph. Canada says it is seeing an increase in Russian flights near its airspace in the Arctic, as part of the Russian bid to claim territory in the energy-rich region. The Czech prime minister has urged EU members to stop making individual energy deals with Moscow if they want to break Russia’s energy monopoly. Prime Minister Vladimir Putin is attempting to speed up completion of the East Siberia – Pacific Ocean (ESPO) oil pipeline - Russia’s first pipeline to Asia.

Oil stocks and everything else, brace yourself for Hurricane Gustav

Stockmasters Staff — Sun, 31 Aug 2008 04:58:43 +0000

Gustav gathered force and slammed into Cuba as a Category 4 hurricane Saturday, giving oil bears and stock market bulls cause for concern. Monday's trading should be out-of-control.

Market was Down on Consumer Spending and Personal Incomes Data – Closing Market Commentary

Alex Kolb — Fri, 29 Aug 2008 00:00:00 +0000

Stocks closed in the red going into the holiday weekend as investors received news of slower consumer spending and personal incomes falling by the biggest amount in almost three years. Tech stocks saw some of the largest dips today as indicated by the tech-laden Nasdaq, which experienced the widest percentage loss in comparison with the Dow and S&P 500. Much of the tech bearishness was a response to Dells (DELL) disappointing second-quarter report.

Fridays Dow Jones industrial average lost 171.22 points, or 1.46%, ending the week at 11,543.96. The Standard & Poor's 500 index declined by 17.85 points, or 1.37%, to 1,282.83. The Nasdaq slipped by 44.12 points, or 1.83%, closing at 2,367.52.

Todays declines are not extremely shocking, considering that substantial gains were made during this week of light trading before the Labor Day weekend.

It didnt help, however, that the Commerce Department announced a slide of 0.7% in personal incomes for July. Analysts were calling for a dip of 0.1%.

More discouraging news hit the Street when the government stated that consumer spending increased by a tepid 0.2%, below Junes increase of 0.6%. If prices would not have jumped due to inflation, the consumer spending result would have been a negative 0.4%.

Light, sweet crude decreased 13 cents, settling at $115.46 per barrel on the New York Mercantile Exchange. While todays oil trading did not seem to reflect major concerns over Hurricane Gustav, the commodity did see spikes this week due to the Gustav news, and investors continue to watch its path.

Natural gas was down 10.7 cents, settling at $7.943 per million British thermal units on the New York Mercantile Exchange.

Focus List

Our Focus List dipped as well on this down day. However, its loss of 1.19% for the day was narrower than that of the broader market.

No one stock turned in an excessive decline, and some of the holdings, such as CF Industries Holdings (CF), Kansas City Southern (KSU), Snap-on (SNA) and Tele Norte Leste Participacoes S.A. (TNE), helped prevent further losses by ending todays session on the up side.

Please note that the market will be closed on Monday due to Labor Day. The next closing commentary and Focus List update will be provided on Tuesday.
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The Gustav Menace, and Other Stories

Sean Brodrick — Wed, 27 Aug 2008 12:20:21 +0000

I exited a bullish oil position in Red-Hot Commodity ETFs yesterday because of oilâ€™s lackluster response to Hurricane Gustav. It turns out some traders with long ears may have already heard about the bearish product demand that came out after the market closed yesterday. In short, oil product demand dropped 5.6% in June, more than expected. With that news out of the way, oil is up again, but not as much as you might think with a hurricane seeming to take aim at Louisiana.

If youâ€™ve been reading my stuff, you know that I keep saying â€œDrill-Drill-Drillâ€ isnâ€™t a real answer, because we donâ€™t have enough drill rigs and we donâ€™t have enough crews for those rigs. Now, it turns out the shortage of trained rig workers is even more acute than first thought.

Meanwhile, hereâ€™s a story I find interesting â€¦

The winds of change in our energy consumption could still be light years away. Wind accounts for less than 1 per cent of the energy produced in Canada (Ontario is the wind-farm leader). The Canadian Wind Energy Association believes it can be 5 per cent by 2010.

The European Wind Energy Association is predicting that 28 percent of the European Union's electrical consumption will be supplied by wind turbines by 2030; currently, it's about 3 percent. In the U.S., they're talking about a target of 20 percent in 20 years. Now, it's less than 1 percent.

XX Seanâ€™s note -- this sounds daunting, but on the other hand, MIT says we could cut our gasoline/diesel use in half by 2035 by transitioning as quickly as possible to lightweight and plug-in hybrid vehicles.

Another story I'm watching ...

Medvedev: Weâ€™re â€˜not afraidâ€™ of a new Cold War
XX Seanâ€™s note: Not that anyoneâ€™s asking, but Iâ€™m not in favor of provoking the Russian bear. We have a weak hand right now because our assets are tied up in that Godforsaken hell-hole called Iraq. The Russians have a strong hand, they know it, and theyâ€™re not afraid to play it (as Georgia found out).

In Other News â€¦

Durable-Goods Orders in U.S. Unexpectedly Climbed 1.3% in July on Exports Orders for U.S. durable goods unexpectedly increased in July, indicating growing demand from abroad is still helping companies weather a slump in consumer spending.

Corn, Soybeans, Wheat Advance as Dollar Weakens Against Euro, Crude Gains Corn and soybeans rallied as a drop in the dollar boosted the appeal of U.S. supplies for overseas importers and rising energy costs increased demand prospects for biofuel. Wheat gained for the first time in four days.

Gold Advances in London on Investor Demand for Safe Haven, Falling Dollar Gold rose in London on demand for precious metals as a haven from housing-related financial losses and an alternative investment to the declining dollar.

XX Seanâ€™s note â€“ you mean investors FINALLY noticed that there are severe housing-related financial losses and that that might be a reason to buy gold? Why the heck didnâ€™t that happen LAST month? My timing on this stuff leaves much to be desired.

News You Can Use for Tuesday

Sean Brodrick — Tue, 26 Aug 2008 13:05:17 +0000

Waiting for Gustav

Hurricane Gustav grew stronger as it moved on a path projected to take it over Haiti on Tuesday and just south of Cuba on Wednesday, according to the National Hurricane Center.
Forecasters say they believe Gustav will strengthen into a "major hurricane" and move into the central Gulf of Mexico by Sunday, but there is little certainty about where it might go from there.

CRUDE OIL
Oil Companies Win $1 Billion Reimbursement Over Drilling Leases
Devon Energy Corp. and Anadarko Petroleum Corp. were among a dozen oil companies that should be reimbursed more than $1 billion they paid the U.S. for leases to drill off the California coast, an appeals court ruled today.

XX Sean’s note – Anadarko was recommended in my Running on Fumes energy report and Devon was recommended in my Energy Panic of 2008 report. So, if you have those reports, this is a heads-up. Also, a heads-up on Petrobras.

OPEC likely to keep output steady in Sept.
OPEC is likely to keep oil output policy unchanged at its meeting in September as prices remain high despite a sharp fall from July's peak, an OPEC source said on Monday.
U.S. demand fell 800,000 barrels per day (bpd) on the year in the first half of 2008, the steepest fall in 26 years. But in the long-term, fundamentals looked tight, the OPEC source said.

Foreign oil producers have U.S. over barrel

AGRICULTURE

The Grain Markets Are Getting Ready to Rip
Corn just flat isn’t going to make it. “It’ll run headlong into problems with frost. In addition, though, it’s dry not only in the eastern Corn Belt, but the entire Corn Belt. As a result, corn prices will continue to go up. The harvest lows are already over—and we haven’t even gotten to harvest yet!” Woolverton says.

XX Sean’s note: And yet …

Wheat Futures Decline on Dollar Gain, Production Outlook; Soybeans Tumble Wheat declined for a third day as the dollar strengthened, making U.S. grain less attractive to buyers overseas, and on speculation favorable weather in major producing countries will help increase harvests. Soybeans dropped.

WIND POWER

US becomes top producer of wind power
The U.S. wind industry now tops Germany in terms of how much energy is being produced from wind, the American Wind Energy Association (AWEA) said.

Germany still has more installed capacity -- 22,000 megawatts vs. 17,000 in the United States at the end of 2007. But the average wind speed is stronger in the United States, which means more energy is being generated, the group said. This year, Germany will add only about 1,600 megawatts of wind energy, while the United States will add more than 6,000 megawatts, said Randy Swisher, executive director of the association.

Wind, solar projects race to finish before tax credit expires
A congressional stand-off that has blocked extension of federal tax credits for renewable energy projects is setting off a boom in the wind and solar industries. Developers and customers are racing to install systems by year's end to qualify for the credits, which can cut the cost of a large commercial system by 30%.

US DOLLAR

Dollar's `Unprecedented' Gain Has Further to Go, Lehman Says The dollar's rally over the past month is ``close to unprecedented'' in the 35 years since the currency was decoupled from gold and will have room to rise on bets the European Central Bank will begin cutting borrowing costs, according to Lehman Brothers Holdings Inc.

URANIUM

Paladin Energy Says That It Is Set to Expand Uranium Production in Africa Paladin Energy Ltd., the Australian producer of uranium in Africa, said an expansion of its mine in Namibia is due for completion at the end of the year, while a project in Malawi will start operating in January.

MINING

Rio Tinto Earnings Double as Iron-Ore Miner Fights $142 Billion BHP Offer Rio Tinto Group, fighting a $142 billion hostile offer from BHP Billiton Ltd., posted first-half profit that beat analyst estimates on increased aluminum sales and record iron ore prices.

GOLD

U.S. Mint resumes gold coin orders on limited basis
The Mint said that it will equally divide its Eagles inventory available for sale each week into two equal pools, with the first allocated equally among all authorized dealers, and the second pool distributed according to the dealers' past sales performance.

A Mixed Day on Wall Street

Alex Kolb — Tue, 26 Aug 2008 00:00:00 +0000

Stocks closed mixed on low volume Tuesday after fluctuating sharply on todays news. While investors applauded an above-expectations reading on consumer confidence, oil prices that moved up on Hurricane Gustav news and the Feds commentary on rising inflation quelled the markets enthusiasm.

Trading continued to be on the thin side today as usually is the case during this (unofficial) last week of the summer.

Tuesdays Dow Jones industrials advanced 26.62 points, or 0.23%, to 11,412.87. The Standard & Poor's 500 index moved up 4.66 points, or 0.37%, to 1,271.97. The tech-laden Nasdaq composite slipped by 3.62 points, or 0.15%, to 2,361.97.

Upbeat news came in at the beginning of the day as the Conference Board announced that the consumer confidence index increased to 56.9 from Julys revised reading of 51.9. Analysts were expecting a lower 53. This data translates into two straight months of improved sentiment, which follows a six-month descent since January.

More positive news included a Commerce Department report that new home sales jumped 2.4% in July. Analysts were anticipating a decline in sales.

Optimism from the aforementioned news didnt last too long as market participants became concerned that Hurricane Gustav could hit the Gulf of Mexico in the next few days. Consequently, crude ascended by $1.16, settling at $116.27 on the New York Mercantile Exchange.

Royal Dutch Shell Plc is planning to begin evacuations of oil and gas platforms in the Gulf of Mexico tomorrow as the hurricane could prove to be the strongest storm to hit the region in three years.

Natural gas also climbed on the news, gaining 45.3 cents to settle at $8.278 per million British thermal units on the New York Mercantile Exchange.

More pessimism set in due to the Feds release of minutes from its August 5th meeting, which indicated that there are still concerns over inflation, and as a result, a rate increase may occur though the Fed is not sure when that might happen.

The Focus List

Our Focus List also saw mixed results, closing flat for the day as the portfolio averaged a gain of only a penny.

Westinghouse Air Brake Technologies Corp. (WAB) was the portfolios largest gainer for the day of 3.14% on no news.

Central European Distribution Corp. (CEDC) was todays biggest decliner of 4.54%. There was no news to report on this holding either. The company has seen some recent dips. Our view was that any sell off would be short lived as it seemed that the share price decreases occurred on news of the conflict between Georgia and Russia even though the companys production and distribution takes place in Poland and internationally. The company is base out of Bala Cynwyd, PA .

However, with news quieting down about Russia and Georgia, it is uncertain why the stock continues to fall especially considering its strong fundamentals. We are keeping a close eye on this one.
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