MARKET SNAPSHOT: Stocks Pin More Hopes On Stimulus, Rescue Plan

By Nick Godt

Investors are poised to start next week eager for plans from the government to boost the economy and rescue the financial system, which could help bulls cement a nascent February rally in stocks.

Hopes that the market has already priced in much of a dismal outlook for the economy this year were also evident Friday, as stocks rallied past news that January saw the biggest loss of jobs since 1974.

"The market is possibly looking at what we see today and thinking that we can't get much worse than that," said Paul Nolte, director of investments at Hinsdale's Associates. "It's not yet expecting that things will get better, but at least not much worse."

On Friday, the Dow Jones Industrial Average (DJI) jumped 217 points, or 2.7%, to end at 8,280. The S&P 500 index (SPX) gained 22 points, or 2.7%, to 868, while the Nasdaq Composite (RIXF) rallied 45 points, or 2.9%, to 1,591.

Chinese Yuan Advances Against US Dollar And Euro

(RTTNews) - In early deals on Thursday, the Chinese yuan advanced to a 3-day high against its European counterpart. The yuan climbed against the US dollar too.

The Chinese yuan ticked up against its US counterpart during Thursday's early Asian trading. At about 11:05 pm ET, the yuan rose to 6.8286 against the US currency, compared to Wednesday's closing value of 6.8350.

People's Bank of China today set the central parity rate for dollar-yuan pair at 6.8360.

From US, the Labor Department is due to release its customary weekly jobless claims report for the week ended January 31st at 8:30 am ET. At 10 am ET, the Commerce Department is due to release its report on factory goods orders for December. Orders for manufactured goods are likely to have decreased 3% in the month.

The Chinese yuan advanced to a 3-day high of 8.7519 against its European counterpart during Thursday's early Asian trading. This may be compared to Wednesday's closing value of 8.7803. The Yuan may likely target the 8.829 level against the European currency, if it rises further.

People's Bank of China today set the central parity rate for euro-yuan pair at 8.7593.

The Italian CPI and German Factory orders are the major economic releases scheduled for the upcoming session from the euro-area.

Japanese Protest As US Warship Docks In Nagasaki

TOKYO (AFP)--A U.S. warship docked Thursday in Nagasaki to the protests of residents and a boycott by local leaders who said the visit was in poor taste in a city obliterated by a U.S. atomic bomb.

The USS Blue Ridge, which is stationed in Yokosuka near Tokyo, sailed to Nagasaki with a stated goal of promoting friendship between Japan and the U.S.

Hundreds of residents including atomic bomb survivors chanted, "We are opposed to the port call!" as the 19,600-ton vessel arrived in the southwestern city.

"We don't want to see the U.S. flag flying at this port and this feeling will not change until the United States takes a policy towards the elimination of nuclear weapons," Osamu Yoshitomi, an official at Nagasaki city, said.

Nagasaki's mayor and regional governor both refused to take part in the welcome ceremony after unsuccessfully asking Japanese and U.S. authorities to cancel the visit.

The U.S. stations more than 40,000 troops in Japan under a post-World War II alliance. Under a 1960 agreement, local authorities don't have the right to refuse U.S. warships' port calls.

India Seeks Access To Terror Suspect In Spain

(RTTNews) - New Delhi has sought consular access to one of its national, the sole Indian picked up by the Spanish police in a terror sweep Tuesday, media reports said.

Indian officials will question Jangeet Singh who was arrested from Valencia and then decide whether to seek his extradition. The government is talking to Spanish police on the case.

In an operation, codenamed Operation Fish, Spanish police in coordination with its counterparts from other European countries arrested 11 Pakistanis from Barcelona and the Indian, suspecting this organised crime group of forging passports and other travel documents for terror organisations, including al-Qaida. The 12 men were brought to Madrid and produced in court Wednesday.

According to Spanish police, the network that they claim to have busted is involved in counterfeit documents, human trafficking and drug smuggling, and linked with document forgery and connected to other groups in France, Belgium, Switzerland, U.K., Germany and Thailand.

The group is alleged to have stolen passports and forwarded them to Thailand where they were altered and sent back to criminal gangs in Europe. Reports said the police recovered a lot of material relating to passport forgery including blank passports, mobile phones, photographs of some whose passports were being faked etc.

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New Singapore Detention Facility Within Five Years - Minister

SINGAPORE (AFP)--A new Singapore detention center should be ready in five years to replace the one from which an alleged Islamic militant made an embarrassing escape, home affairs minister Wong Kan Seng says.

Mas Selamat bin Kastari, the alleged Singapore leader of the Jemaah Islamiyah, or JI, militant group, escaped in February last year from the Whitley Road Detention Center, which holds people held by the Internal Security Department.

Kastari's escape badly dented Singapore's reputation for tight security.

A committee of inquiry found that Kastari, who walks with a limp, escaped through a bathroom window.

The committee made 10 recommendations to fix weaknesses at the detention center and all have been implemented, Wong said in a written reply to a member of parliament. The government released a copy of Wong's answer late Tuesday.

Among its recommendations, the committee urged the building of a new detention facility.

"This recommendation is in progress," Wong said.

The prison service and the Internal Security Department, which handles terrorism and other security threats, began last July to study the building of a new detention center in Changi Prison, the minister said.

MARKET SNAPSHOT: After Dismal Start To 2009, February Could Hold More Of Same

By Kate Gibson

After the worst January on record, the new month is off to an uncertain start with investors braced for more disappointing earnings results, layoffs and dismal economic data.

"There was a lot going on last week, earnings, company projections layoff announcements, housing numbers, economic numbers, and bailout announcements, and not a glimmer of hope among them. This week, we anticipate more of the same," said Marc Pado, U.S. market strategist at Cantor Fitzgerald.

"With 40% of the S&P reported, and earnings looking down 35% versus the fourth quarter last year, expectations are low," said Pado.

On Monday, equities closed mostly lower, with energy, industrials and materials down the most and technology shares helping the market pare losses.

The Dow Jones Industrial Average (DJI) finished down 64.11 points, or 0.8%, to 7,936.75. The S&P 500 (SPX) gained half of a point to stand at 825.43, and the Nasdaq Composite (RIXF) added 18.01 points, or 1.2%, to 1,494.43.

Commission proposed to investigate financial meltdown

Members of Congress are taking steps to create a commission that will investigate the near-meltdown of the nation's financial markets.

Senate Budget Committee chairman Kent Conrad and Republican congressman Johnny Isakson recently announced their legislation, which would create a seven-member panel modeled on the 9-11 Commission.

"We need to take a long hard look at how our financial system spiraled downward so far so fast. And if there was any criminal wrongdoing, people need to be held accountable," said Conrad in a statement, going on to say that the commission's final report will be used to create new rules to prevent similar financial situations in the future.

MARKET SNAPSHOT: As Goes January, So Goes The Year?

By Nick Godt

The market posted an 8.6% drop for the month, marking its worst performance on record for the month of January, and a pretty bad omen for the rest of the year, if one believes the old adage.

According to the Stock Traders Almanac's January Barometer, the month of January tends to predict the direction of the market with a 91.4% accuracy ratio, with only five major errors recorded since 1950.

The barometer, created in 1972, is based on the performance of the broad S&P 500 index.

Based on broader research from Quantitative Analysis Service, the month of January works accurately at predicting market direction 65% to 75% of the time.

"That's not an impeccable record," said Ken Tower, market strategist and senior vice president at the firm. "But, along with April, it definitely has a better track record at predicting the year than any other month in the year."

The S&P 500 index (SPX), used by most investing professionals as a gauge of the broader market, fell 8.6% for January.

This marked the worst January performance on record for the S&P, topping a 7.6% drop in January of 1970.

LATIN AMERICAN MARKETS: Brazil Finishes Lower; Mexico Edges Up But Loses For The Month

By Carla Mozee

LOS ANGELES (MarketWatch) --Brazilian shares slipped Friday, with pressure on mining giant Companhia Vale do Rio Doce following its plans for a $1.6 billion assets purchase, while Mexican shares broke through losses that followed a report that U.S. economic activity shrank to its lowest levels since the 1980's.

Brazil's Bovespa index fell 0.9% to 39,300.79.

In Sao Paulo, shares of market heavyweight Vale (RIO) fell 1.7% after Rio Tinto (RTP) said late Thursday it would sell to Vale the assets of two potash projects for $850 million and an iron ore mine in Brazil for $750 million in an all-cash deal.

Vale is the world's largest producer of iron ore, a key component for the production of steel.

The company "has appeared to pay a healthy premium, despite Rio Tinto's pressure to de-lever, and we note Vale's debt will continue to rise given aggressive dividends, capex and (now) acquisitions planned for 2009," wrote metals and mining analysts at Deutsche Bank in a note Friday.

The broker maintained its hold rating on Vale and its price target of $12 for the miner's U.S.-listed shares. Vale's New York Stock Exchange-listed shares closed down 2.2% at $14.11.

Moving the Market

[BRIEFING.COM] Sellers claimed control of the stock market for the second straight session, pushing the S&P 500 2.3% lower Friday. That left stocks down 0.7% for the week.

Stocks actually began the session with a gain after investors reacted positively to a better-than-feared GDP report. However, a closer look at the data revealed conditions are hardly sound. According to the latest data, the U.S. economy contracted at an annualized rate of 3.8% during the fourth quarter, marking the steepest drop in economic activity since 1982. The decline was less severe than the 5.5% drop that was expected, but that was largely due to an unexpected increase in inventories. Consumer spending, which accounts for roughly 70% of economic activity, remains weak as consumption expenditures dropped at a 3.5% annual rate.