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Technology Stocks : Semi Equipment Analysis -- Ignore unavailable to you. Want to Upgrade?

To: robert b furman who wrote (30735)	5/31/2006 9:45:02 AM
From: Gottfried	Read Replies (4) \| Respond to of 95415

list of companies suspected of options grant abuse [link may work for non-subscribers, since it says 'public'] online.wsj.com

To: robert b furman who wrote (30735)	5/31/2006 5:30:29 PM
From: Donald Wennerstrom	Read Replies (1) \| Respond to of 95415

Somewhat OT, but interesting. The economy is doing just fine thank you, but who knows what clamity lurks in our future?:) <<Economic Insight: Profits, Employment and FOMC Minutes Briefing.com - May 31, 2006 8:27 AM EDT The most recent report on Q1 corporate finances provided a better read on trend business investment than the unexpected plunge in durable goods orders. Q1 corporate profits rose 8% (24% yoy) to leave profits at 12.2% of GDP -- the strongest in 40 years. Meanwhile net cash flow rose to a new record size and once again exceeded quarterly business investment -- last seen in Q3 2004 but only in 6 quarters over the last quarter century. Flush balance sheets leave a strong outlook for business investment as the huge profits help absorb pressures from higher input prices without forcing output prices and inflation higher. Economy Last week's upward revision to Q1 productivity comes from the upward revision in Q1 GDP to 5.3%. As a result the annual growth in unit labor costs -- the business cost per unit of output -- is expected to be revised closer to the 1.2% yoy growth of Q4. Weak unit labor costs left by strong productivity growth help calm inflation fears sparked by the low unemployment rate and high energy costs. The major economic report of the shortened week is Friday's employment report after the mixed read a month ago. While the slower payroll growth (173K YTD average) is more in line with the Fed's objectives, the 0.5% jump in April earnings left a 5.2% annualized 3 month gain -- wage pressures building. In addition, the length of the workweek broke above a narrow 3 1/2 year range and is also consistent with leaner labor availability and the higher costs that brings. Briefing.com expects some cooling as we see earnings rising just 0.2% and the workweek falling back to 33.8 hours. However, we do expect the unemployment rate to edge lower to 4.6% after the 4.7% seen in three of the last four months. Strong payroll or earnings growth will fuel market expectations for a June hike in policy rates as may a decline in the unemployment rate. Last week's releases also included the ISM manufacturing index, vehicle sales, construction spending and factory orders. Detail for all the economic releases are linked to the economic calendar as charts, history and forecast rationale provide perspective and market implications. Fed The minutes of the May 10 FOMC meeting are released today. The non-committal stance in the May policy announcement leaves the Fed watching the incoming data for perspective as the market combs every release for policy relevant tidbits. The minutes will reveal the discussion among the policy makers regarding the desirability for a pause in the tightening and the general tone regarding the outlook. The market will take what the FOMC has left in the minutes as an anxious market can take more than the Fed intended. The July federal funds futures contract currently prices in 56% probability for a 25 bp hike at the June 28-29 FOMC meeting but that probability has been bouncing given the market uncertainty. The implied forward rates never exceed the 5.25% rate the hike would leave stating that the market currently believes that the Fed is done after the 17th rate hike in this cycle. There is risk in that assessment as the last three policy tightening cycles have all gone to 6% targeted rate or above. A 6% policy rate brings significant economic risk the Fed would rather avoid. -- Timothy E. Rogers, Briefing.com.>>