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Strategies & Market Trends : John Pitera's Market Laboratory -- Ignore unavailable to you. Want to Upgrade?

To: John Pitera who wrote (4599)	9/11/2001 11:10:10 AM
From: John Pitera	Read Replies (1) \| Respond to of 33421

10:38 ET 30-year: +18/32..5.396%....GNMAs: +20/32....$-¥: 119.93 Briefing is shutting down its fixed income/FX operations for the day. 10:35 ET 30-year: +18/32..5.396%....GNMAs: +20/32....$-¥: 120.00 The NY financial district is only a cloud of smoke as the 2nd WTC tower has collapsed. 10:07 ET 30-year: +25/32..5.382%....GNMAs: +10/32....$-¥: 120.36 Unimagined Terror continues: one of the two WTC towers has collapsed with the collision of yet another aircraft bringing still more massive damage to surrounding areas. NYC subways and airports have been closed. Chicago BOT is being evacuated. 09:45 ET 30-year: +16/32..5.401%....GNMAs: +6/32....$-¥: 120.77....Euro-$: 0.9012 Now, both CNN and NBC are reporting an explosion at the Pentagon. Bonds still going nuts. Dollar coming under increased pressure. 09:42 ET 30-year: +15/32..5.402%....GNMAs: +6/32....$-¥: 120.99 The NYSE is closed for the day, Treasuries still holding on, however we are far more concerned over the well being of anyone in the World Trade Center area than anything else. 09:20 ET 30-year: +1/32..5.434%....GNMAs: +8/32....$-¥: 121.44....Euro-$: 0.9114 Everyone still glued to the television. Some reports that the (alleged) hijacked planes were crashed by suicide bombers. Long end well-off its best levels for the session, but the front end is still sharply higher. Cash gold up $6. Dollar well-off its best levels against the yen, and is now underperforming the likes of the euro and the Swiss franc. NYSE trading delayed until further notice. Tough to care about the markets at this point however. 09:08 ET 30-year: +22/32..5.387%....GNMAs: +2/32....$-¥: 121.29 Market on fire on a flight to quality bid. Front end better by 10 bp, long end better by 6 bp. 09:08 ET 30-year: +22/32..5.387%....GNMAs: +2/32....$-¥: 121.28 The weekly read on chain store sales reflect a weak start to September despite the tax rebate checks and back to school shopping. The Mitsubishi index showed an 0.1% decline in the week of Sep 8 as seen the prior week. Redbook's early read on September shows an 0.7% decline from August but thats only on a month to date basis. 08:55 ET 30-year: unch..5.436%....GNMAs: -2/32....$-¥: 121.83....Euro-$: 0.8979 We have mentioned before that there has been a pronounced lack of investor enthusiasm surrounding corporate restructuring announcements. Such nonchalance seems to be a function of the largely cyclical nature of the job cuts we have seen thus far. In other words, while an initial round of layoffs may offer some nearby profit protection, there remains a great deal of concern about the protracted and global nature of the slowdown that has exposed pockets of structural weakness. While we have spent a good deal of time on structural concerns from a global perspective, corporate America has not been immune. Remember, dual production schedules in an effort to take advantage of a new economy mentality have exacerbated debt leverage, while profit margins have been pressured by the high-wage makeup of the technicians, consultants and management who were hired in blatant excess on the back of unrealistic (now at least) growth expectations. Of interest, we would note that we have already begun to see some companies announce a second round of layoffs. 08:53 ET 30-year: Unch..5.436%....GNMAs: -2/32....$-¥: 121.83 Word is that an American Airlines plane has collided into the World Trade Center. CNN coverage shows smoke pouring out of one of the towers which looks like the North building.