Thursday, February 23, 2006 - 3:15 pm MST

[Adam in CO]

Jobless claims fell unexpectedly last week indicating continued strong conditions in the labor market. Jobless claims fell 20k to 278k for the week that ended February 18. The low level of claims is consistent with monthly payroll growth of 200k or more. Also, the unemployment rate should remain at or near its current low level of 4.7% when the employment report is released next week.



Stocks pulled back Thursday as oil prices vacillated and yields rose in the bond market. The Energy Department's report on petroleum inventories showed a 1.1 million barrel increase in crude supplies but a 1 million barrel drop in distillate stockpiles. Gasoline stocks rose by just 100,000 barrels. Oil prices were up and down throughout the session to end 47 cents lower, settling at $60.54 a barrel on the Nymex. In choppy trading the Dow fell 67.95 to 11069.22. The NASDAQ was off 3.85 to 2279.32.

MARKETS CLOSING CHANGE
DJIA 11069.22 -67.95
S&P500 1287.79 -4.88
RUSSELL 2000 732.45 -1.08
NASDAQ 2279.32 -3.85
SECTORS - GAINERS & LOSERS
Internet +1.87%
General Mining -6.38%



The Treasury auctioned $14 billion in 5-year notes today with a high yield of 4.622% and a bid-to-cover ratio of 2.18 compared to 2.10 in January. Indirect bidders which include foreign central banks accounted for just 21.3% of the sales, down from 28.5% last month. The auction results were weaker than expected. Treasuries fell today on an unexpected and steep drop in the number of jobless claims. Treasuries remained lower following today's auction. In late trading the 10-year note was down 8/32 to 99-17/32 to yield 4.55%.

SECURITY YIELD CHANGE
2-Year Note 4.71 0.04
5-Year Note 4.61 0.05
10-Year Note 4.55 0.03
30-Year Treasury Bond 4.50 0.02



Mortgage rates eased for the first time in five weeks on tame, core inflation data and contained inflation expectations. 30-year fixed rate mortgages averaged 6.26% this week compared with 6.28% last week according to Freddie Mac's mortgage market survey. Economists at Freddie Mac expect mortgage rates to fluctuate somewhat but remain near current levels over the long term.

For the week ending 02/23/06

RATE LATEST CHANGE FEES
30-Yr Fixed (FHLMC) 6.26 -0.02 0.6
15-Yr Fixed (FHLMC) 5.89 -0.02 0.6
1-Yr Adj (FHLMC) 5.32 -0.04 0.7
3-Mo Libor (FNMA) 4.80 0.02 n/a



RATE LATEST CHANGE
Fed Funds 4.50 0.12
Prime Rate 7.50 0.00
Fed Discount 5.50 0.00
11th District COF 3.296 0.00

[Adam in CO]

Jobless claims fell unexpectedly last week indicating continued strong conditions in the labor market. Jobless claims fell 20k to 278k for the week that ended February 18. The low level of claims is consistent with monthly payroll growth of 200k or more. Also, the unemployment rate should remain at or near its current low level of 4.7% when the employment report is released next week.



Stocks pulled back Thursday as oil prices vacillated and yields rose in the bond market. The Energy Department's report on petroleum inventories showed a 1.1 million barrel increase in crude supplies but a 1 million barrel drop in distillate stockpiles. Gasoline stocks rose by just 100,000 barrels. Oil prices were up and down throughout the session to end 47 cents lower, settling at $60.54 a barrel on the Nymex. In choppy trading the Dow fell 67.95 to 11069.22. The NASDAQ was off 3.85 to 2279.32.

MARKETS CLOSING CHANGE
DJIA 11069.22 -67.95
S&P500 1287.79 -4.88
RUSSELL 2000 732.45 -1.08
NASDAQ 2279.32 -3.85
SECTORS - GAINERS & LOSERS
Internet +1.87%
General Mining -6.38%



The Treasury auctioned $14 billion in 5-year notes today with a high yield of 4.622% and a bid-to-cover ratio of 2.18 compared to 2.10 in January. Indirect bidders which include foreign central banks accounted for just 21.3% of the sales, down from 28.5% last month. The auction results were weaker than expected. Treasuries fell today on an unexpected and steep drop in the number of jobless claims. Treasuries remained lower following today's auction. In late trading the 10-year note was down 8/32 to 99-17/32 to yield 4.55%.

SECURITY YIELD CHANGE
2-Year Note 4.71 0.04
5-Year Note 4.61 0.05
10-Year Note 4.55 0.03
30-Year Treasury Bond 4.50 0.02



Mortgage rates eased for the first time in five weeks on tame, core inflation data and contained inflation expectations. 30-year fixed rate mortgages averaged 6.26% this week compared with 6.28% last week according to Freddie Mac's mortgage market survey. Economists at Freddie Mac expect mortgage rates to fluctuate somewhat but remain near current levels over the long term.

For the week ending 02/23/06

RATE LATEST CHANGE FEES
30-Yr Fixed (FHLMC) 6.26 -0.02 0.6
15-Yr Fixed (FHLMC) 5.89 -0.02 0.6
1-Yr Adj (FHLMC) 5.32 -0.04 0.7
3-Mo Libor (FNMA) 4.80 0.02 n/a



RATE LATEST CHANGE
Fed Funds 4.50 0.12
Prime Rate 7.50 0.00
Fed Discount 5.50 0.00
11th District COF 3.296 0.00

[CO Hummer]

Blah, blah, blah, Blah, blah, blah, Blah, blah, blah, Blah, blah, blah, Blah, blah, blah, Blah, blah, blah, Blah, blah, blah, Blah, blah, blah, Blah, blah, blah, Blah, blah, blah, Blah, blah, blah, Blah, blah, blah, Blah, blah, blah, Blah, blah, blah, Blah, blah, blah, Blah, blah, blah, Blah, blah, blah, Blah, blah, blah, Blah, blah, blah, Blah, blah, blah, Blah, blah, blah, Blah, blah, blah, Blah, blah, blah, Blah, blah, blah, Blah, blah, blah, Blah, blah, blah, Blah, blah, blah, Blah, blah, blah, Blah, blah, blah, Blah, blah, blah, Blah, blah, blah, Blah, blah, blah, Blah, blah, blah, Blah, blah, blah, Blah, blah, blah,

Blah, blah, blah, Blah, blah, blah, Blah, blah, blah, Blah, blah, blah, Blah, blah, blah, Blah, blah, blah, Blah, blah, blah, Blah, blah, blah, Blah, blah, blah, Blah, blah, blah, Blah, blah, blah,

Blah, blah, blah, Blah, blah, blah, Blah, blah, blah, Blah, blah, blah, Blah, blah, blah, Blah, blah, blah, Blah, blah, blah, Blah, blah, blah, Blah, blah, blah, Blah, blah, blah, Blah, blah, blah, Blah, blah, blah, Blah, blah, blah, Blah, blah, blah, Blah, blah, blah, Blah, blah, blah,

Blah, blah, blah, Blah, blah, blah, Blah, blah, blah, Blah, blah, blah, Blah, blah, blah, Blah, blah, blah, Blah, blah, blah, Blah, blah, blah, Blah, blah, blah, Blah, blah, blah, Blah, blah, blah, Blah, blah, blah, Blah, blah, blah, Blah, blah, blah, Blah, blah, blah, Blah, blah, blah, Blah, blah, blah, Blah, blah, blah, Blah, blah, blah, Blah, blah, blah, Blah, blah, blah, Blah, blah, blah, Blah, blah, blah, Blah, blah, blah, Blah, blah, blah, Blah, blah, blah, Blah, blah, blah, Blah, blah, blah, Blah, blah, blah, Blah, blah, blah, Blah, blah, blah, Blah, blah, blah, Blah, blah, blah, Blah, blah, blah, Blah, blah, blah, Blah, blah, blah, Blah, blah, blah, Blah, blah, blah, Blah, blah, blah, Blah, blah, blah, Blah, blah, blah, Blah, blah, blah, Blah, blah, blah, Blah, blah, blah, Blah, blah, blah, Blah, blah, blah, Blah, blah, blah, Blah, blah, blah,

Blah, blah, blah, Blah, blah, blah, Blah, blah, blah, Blah, blah, blah, Blah, blah, blah, Blah, blah, blah, Blah, blah, blah, Blah, blah, blah, Blah, blah, blah,
Blah, blah, blah, Blah, blah, blah, Blah, blah, blah, Blah, blah, blah, Blah, blah, blah, Blah, blah, blah, Blah, blah, blah, Blah, blah, blah, Blah, blah, blah, Blah, blah, blah, Blah, blah, blah, Blah, blah, blah, Blah, blah, blah, Blah, blah, blah, Blah, blah, blah, Blah, blah, blah, Blah, blah, blah, Blah, blah, blah, Blah, blah, blah, Blah, blah, blah, Blah, blah, blah, Blah, blah, blah, Blah, blah, blah, Blah, blah, blah, Blah, blah, blah, Blah, blah, blah, Blah, blah, blah, Blah, blah, blah, Blah, blah, blah, Blah, blah, blah, Blah, blah, blah, Blah, blah, blah, Blah, blah, blah, Blah, blah, blah, Blah, blah, blah, Blah, blah, blah,

Blah, blah, blah, Blah, blah, blah, Blah, blah, blah, Blah, blah, blah, Blah, blah, blah, Blah, blah, blah, Blah, blah, blah, Blah, blah, blah, Blah, blah, blah, Blah, blah, blah, Blah, blah, blah, Blah, blah, blah, Blah, blah, blah, Blah, blah, blah, Blah, blah, blah, Blah, blah, blah, Blah, blah, blah, Blah, blah, blah, Blah, blah, blah, Blah, blah, blah, Blah, blah, blah, Blah, blah, blah, Blah, blah, blah, Blah, blah, blah, Blah, blah, blah, Blah, blah, blah, Blah, blah, blah, Blah, blah, blah, Blah, blah, blah, Blah, blah, blah, Blah, blah, blah, Blah, blah, blah, Blah, blah, blah, Blah, blah, blah, Blah, blah, blah, Blah, blah, blah, Blah, blah, blah, Blah, blah, blah, Blah, blah, blah, Blah, blah, blah,
Blah, blah, blah, Blah, blah, blah, Blah, blah, blah, Blah, blah, blah, Blah, blah, blah, Blah, blah, blah, Blah, blah, blah, Blah, blah, blah,

Blah, blah, blah, Blah, blah, blah, Blah, blah, blah, Blah, blah, blah, Blah, blah, blah, Blah, blah, blah, Blah, blah, blah, Blah, blah, blah, Blah, blah, blah, Blah, blah, blah, Blah, blah, blah,

-Adam

[PARAGON]

Just because it has numbers in it doesn't make it any less of a PAD.