Friday, January 18, 2008

Battles - Mirrored

Album Review
SPIN
June 2007
Link
8/10

 Cover Art: Battles,  'Mirrored'









Songs guaranteed to start a mosh pit at band camp.

Remember "shock and awe"? On their debut album, Battles bring that brutal, futuristic precision to the art-rock avant-garde. Featuring keyboardist/guitarist Ian Williams of math rockers Don Caballero and drummer John Stanier of post-hardcore virtuosos Helmet, this New York-based group layers sound manipulator Tyondai Braxton's alien vocals over muscular, off-kilter grooves. Think Captain Beefheart, if he'd been a fan of kraut rock and Animal Collective -- or, on the deep, martial drums of single "Atlas," Marilyn Manson. For rock that's both fist-pumping and forward-looking, this album suggests that Battles have few peers.

Spank Rock and Benny Blanco - Bangers & Cash

Album Review
SPIN
December 2007
Link
7/10

Cover Art: Spank Rock and Benny Blanco,  'Bangers & Cash'










As nasty as they wanna be -- with a postmodern rimshot.

Their mothers must be so proud. Baltimore-bred, Philly-based rappers Spank Rock hook up with New York producer Benny Blanco -- and anything with breasts -- on this raunchy five-song EP. Spank Rock already scored with their absurdist porn shtick on 2006 debut YoYoYoYoYo. Here, the influence of Miami bass buffoons 2 Live Crew is more, well, explicit: "See the sweat drip to your cooch from your doody hole." Grimy, Diplo-worthy beats make stripper jams like "Bitch!" and "Pu$$y" as propulsive as they are quasi-ironically misogynistic. But 2 Live Crew got arrested for their profanity. These new shock jocks are just playing it safe.

Gorillaz - D-Sides

Album Review
SPIN
January 2008
Link
6/10

Cover Art: Gorillaz,  'D-Sides'  








Funky monkeys clean house with roundup of odd tracks.

Two albums as a cartoon chimp finally brought Damon Albarn the U.S. success he barely tasted in Blur. And even though he's moved on to the Good, the Bad and the Queen, this rarities collection (which focuses on the Danger Mouse-assisted Demon Days era) still has some surprises, especially the zither-adorned "Hong Kong" and protest song "Stop the Dams" (recorded with ex-Sugarcube Einar Örn). For simian disco, electro-pop remixes by DFA and Hot Chip stand out amid Disc 2's uneven DJ fodder.

Monday, January 14, 2008

Interview: Atlas Sound

Feature
Pitchfork
January 14, 2008
Link

Atlas Sound













As frontman for Atlanta band Deerhunter, Bradford Cox emerged as one of underground rock's most beloved-- and loathed-- performers of 2007. Such intense reactions came on the basis of Deerhunter's perversely stunning Cryptograms and Fluorescent Grey EP, some confrontational live shows, and a notorious band blog. As Cox gets set to unveil his full-length debut as Atlas Sound, Let the Blind Lead Those Who Can See But Cannot Feel (due February 19 on Kranky), he's deeply engaged in what he refers to as a year-long process of "demystification": decoding Cryptograms to reveal the shitting, fucking humans behind it, while also talking at length about the ideas and inspirations animating his forthcoming solo release.

When I meet the singer and multi-instrumentalist for this interview, he's sprawled in pajamas on the floor of an apartment in New York's East Village, his limbs spread in painful-looking, yogi-like poses for a magazine photo shoot. Beside him sits a small bottle of anti-anxiety pills. As our conversation begins, wreathed in cigarette smoke on an 11th Street stoop, Cox goes on to describe his friendship with Deerhunter guitarist Lockett Pundt, call himself "stupid" and "autistic," and reject everything you've read about guitarist Colin Mee's brief split with Deerhunter last summer as "complete bullshit". Cox also hints at the future of Deerhunter, explains how meeting electronic music pioneer Pauline Oliveros influenced the Atlas Sound record, reminisces on everything from lovesickness to Loveless to sadomasochism, and shares a few reservations about the Lamborghini-driving ability of Lil Wayne.

Bradford Cox: Dig in, man.

Pitchfork: If you're ready.

Cox: Don't be afraid of, you know, it's gonna take-- I'm gonna talk a lot.

Pitchfork: Don't be afraid to. So the first Atlas Sound record I bought was your split 12" with Mexcellent, Fractal Trax, but you've been doing things under the Atlas Sound name for years.

Cox: Ever since I was a kid. My parents had a karaoke machine that they had bought our family in some sort of failed attempt at family togetherness, and of course it just sat in disuse. Eventually I discovered it in our basement. I realized, because I had read an interview with Beck, that you could take a cassette recorder and record one thing on the first tape, play it on the second tape, plug a mic in, and record along with the first tape onto a second tape, and just keep bouncing the tapes. And that's how I invented the whole Atlas Sound thing, when I discovered the capabilities of multi-tracking and the fact that I didn't need a band. 'Cause I was kind of like a lonely kid when it comes to finding people to play with who would do what I wanted. In that era, when I was like 15, 16, I was really into krautrock. I was really into Stooges. I was really into Stereolab, and Sonic Youth, and Steve Reich and stuff like that that I'd gotten into because I'd read about it in Stereolab interviews.

Pitchfork: I was just going to ask how you got into all that stuff.

Cox: My cousin turned me onto punk rock when I was like nine. And then through punk rock I somehow got from the Stooges to Sonic Youth to Stereolab. I only listen to bands that have names that begin with "S". Swans...

Pitchfork: Last time you talked to Pitchfork, you said Atlas Sound is an outlet for ideas that don't really work with a five-piece band. When you start working on a track for Atlas Sound, are there other fundamental differences from how you go about writing one of your Deerhunter songs?

Cox: I hold a lot of my creativity at bay with Deerhunter because I want it to be a collaborative effort. There's five musicians in that band that are all excellent and have excellent ideas. I've never intended to be, or wanted to be presented as, the principal songwriter in that band. So I might have an idea for a fragment of a song, but I want to leave it skeletal so the guys can fill it out. Whereas with Atlas Sound, everything is done in an hour. The process is just completely stream-of-consciousness, you know? I sort it out later. In terms of aesthetic, with Atlas Sound I choose to use instruments that are computer-based, a lot of times, that I've made in a piece of software that allows me to turn pretty much any sound into a MIDI-controllable keyboard.

Pitchfork: Is this a tracker program?

Cox: It's an Ableton mod. It's an electronic music creation program, but it can also record acoustic drums, electric bass, and guitars, and I've found that to be really cool. I probably never will be able to record a vibraphone or afford the studio time to go in and record a vibraphone, but I can definitely make a vibraphone on my computer.

Pitchfork: What's the process for recording the songs? Do you start with just kind of noodling around with a loop pedal, or...

Cox: I didn't use that many effects on this record that weren't built into the software. Like, I didn't use a lot of looping. I used some looping effects and sampling, kind of like I do in Deerhunter, but a lot of the vocals are recorded straight and without effects. I think the reason for that is I just get tired of my own tricks. The genesis is usually a beat. I'm really a drummer at heart. I can just listen to the drum tracks from one of my favorite albums and pick them apart for hours, you know? Something I've been really interested in lately is layering drum tracks, like the way that Brian Eno did it on his pop albums-- having two or three drum tracks panned in different speakers so it creates kind of a multi-rhythmic effect. Things that you can do without using effects to create the same kind of delay.

Pitchfork: Each of your albums has had a dedication. The Atlas Sound record is dedicated to your best friend, Lockett Pundt. Why did you decide that?

Cox: Oh, well, he's been the center of my life for over 10 years, and we do everything together. We're like 24-hours-a-day together. We live together, play in a band together, tour together, stay in the same hotel rooms together. Whenever we're on tour, it's always me and Lockett in one room and the rest of the guys in the other. He's like my muse-- my second half, my other half.

Pitchfork: And the cover art?

Cox: I made the cover art out of a painting I found in an old medical journal, of a doctor treating a lovesick boy while his mom looks on, concerned. It's a Norman Rockwell-looking oil painting. And it sucks because when I took the picture of it-- I didn't want to scan it, I just wanted to take a photo of it for my wall and treat it and half-tone it-- the flash of the camera whited out the boy's face. Which kind of took away from the photo, because the look on his face is the most melancholy thing. He's the saddest boy, and he's lovesick and emaciated. But somehow I found that romantic, the idea that there was so much emotion in the face that it got whited out.

I found it in a thrift store. For the longest time, when Deerhunter was first starting out, we had this place called No Town, which was like the back of my dad's mortgage office. All I'd do was work little piddly day jobs and smoke pot, and at night I'd just get off work and go rummaging through thrift stores. That was my life. Alone-- it was kind of lonely-- but I would find all these things, these books, and make collages from them and Xerox art, 'cause we had a Xerox machine there. We made a lot of the early Black Lips fliers there. When we were starting out, it was very much just kind of an art factory in a way, and I remember being in a thrift store and finding that book at like 9 on a summer night. This must've been four or five years ago. And I related to that boy so much that I literally, in the thrift store, almost started crying.

Pitchfork: What do you relate to about him so much?

Cox: The look in his eyes, that you can't see on the album cover. Just that lovesickness. It's unmistakable.

Pitchfork: You've talked before about why you didn't include the lyrics in the Cryptograms liner notes. You said that's kind of boring or might demystify it. But for this one you not only put in the lyrics, you also put in super detailed information about all the instruments that you used.

Cox: Kranky has a policy. They have a thing called the 10 Commandments of the K, of Kranky. I broke two of them on this album artwork. The first is that no lyrics will be printed, because Joel [Leoschke], the owner of Kranky, believes that it demystifies the experience of a rock record. I agree with that a lot. For instance, around this time of the year, every year, there's some seasonal albums that I listen to, and of course one of them is Loveless. In the past two days here, riding around the subway and in cabs, I must've listened to that record 20 or 30 times consecutively.

Every time I listen to Loveless I focus on a different song. [This time] I got into the song "Sometimes", which is just a gorgeous, hypnotic song. And I was just like, "What are they saying?" I went on the internet, and I went to the website they have set up, and I looked up the lyrics. The first thing you see on the lyrics page is: "As many people know, due to their unconventional songwriting process, the lyrics are not considered important." And I identify with that a thousand times. All they have up there is what people think they're saying, and it's filled with question marks and blank lines where they don't know what's being said, and I just find that real interesting.

The reason I chose to print the lyrics was I wanted to see what they looked like, because I didn't write them in advance. All the lyrics on the record are made up as they're being recorded, first take. And then I just feel like sometimes I don't enunciate. As I'm getting older, I'll be honest with you, I don't feel like putting effort toward mystifying anything. I've been in the process in the past year with this band, since we started getting attention, of demystifying the process, and us, and myself as a person. Some people respond to that terribly, with hatred and venom, because they don't like who I really am. And fuck those people. You know? They can really suck my dick two times. Those people are just hateful. A lot of them are just jealous. And they're all anonymous. People that know me know what I'm about. I have a lot of friends and that makes me feel good. The thing is, is that the expected process for musicians in the field we are in-- experimental punk music, alternative rock, or whatever you want to call it--

Pitchfork: [Laughs] Pop?

Cox: Yeah, pop music-- is that people try to build up these cryptic, self-mythologizing mysteries and create an image that's kind of hard to penetrate. And it just doesn't interest me. I'd rather expose frailty, have mistakes. I'd rather embarrass myself, get into fights with journalists, you know, get in trouble for stupid things, because you know what? I'm a stupid person. I never said I wasn't. I don't think I'm hot shit. That's the misinterpretation I think that people get, is that I want attention, I think I deserve attention, I consider myself to be this certain type of thing-- and I don't. I have no idea what I'm doing. I have no interest in being fake or shallow. I just wanna be real as much as possible.

I think that printing the lyrics is embarrassing, and it's like having a close-up of your zit on the inside of your album cover. Some of the lyrics are personal on this record. A lot of the lyrics on Cryptograms were personal, and I'm at the point where I'm also interested in lowering the vocals in the mix. That's something where I am very inspired by My Bloody Valentine. The lyrics were treated as secondary.

Pitchfork: The vocals are lower in the mix, but you have the lyrics there, which seems like kind of a contrast. I guess they're secondary, but you mentioned they're also personal, and the themes seem a little bit different this time. The existential dread maybe isn't there quite as much. It's more about that lovesickness, right?

Cox: Yeah, I mean, we can go song by song. I'd love to do that. Do you have the album here?

Pitchfork: I have my iPod with me, which has the album on it.

Cox: Oh, it's right here. "A Ghost Story" is an incidental piece. I built that out of a sample that I found on this free audio archive that just contains tons of just free music sampling stuff. A cassette of a little boy telling a ghost story. I just thought it was moving, and I wanted to create a haunted record, you know? Kind of filled with ghosts. I thought it just set up the album nicely. And I've always been into intros. It's basically just a cassette and effected hammer dulcimers.

On "Recent Bedroom", the lyrics deal directly, really minimally, with a specific experience I had when my aunt died a few years ago. I was with my family, and we were in her bedroom, and it was evening-- dusk. She was in her bedroom, and everybody knew she was about to pass away, and she went out, she faded out, and everybody just started crying. It's one of the few times in my life I've seen my dad actually break down into tears. I walked outside, because I was a little overwhelmed, and I tried to cry to myself. But I couldn't. I could not cry. And-- I'm not trying to present the lyrics, but it's like-- I didn't know why. I didn't know why I couldn't cry. I didn't know why I was lacking the emotion. This is a period when I was very involved in drugs; I felt like I'd killed off my childhood instinct, which would've been to cry. I felt like I'd hollowed myself out, and I felt empty. It's a song about emptiness, and moving from childhood to adolescence, and just that first transition where you start to feel a little bit emotionally vacant and detached.

And "River Card", that was simply based on-- I don't do this that often, but I had read this collection of kind of modernist Puerto Rican short stories, and there was this story called "There's a Little Colored Boy at the Bottom of the River". It was about this boy whose parents lived on some kind of boat, like a sharecropping farm that was on the edge of the water. The mother, I believe she goes off and runs away, leaving the father alone, who I believe kills himself, leaving the boy just living alone in his house. He keeps looking out into the river and he sees a boy at the bottom of the river, which is obviously his reflection. It's, you know, the age-old tale of Narcissus. And he falls in love with this other boy. I liked the way that it was dealt with in the story-- it just said he fell in love with the other boy. It didn't say he wanted to be friends with the other boy or he was lonely and wanted a buddy. It's like, he fell in love with the other boy, you know? It's almost like this childhood homoerotic energy, which I remember experiencing and relating to. Eventually, of course, the boy jumps in to join his reflection and drowns. And so it's a song about a dead child.

"Quarantined" is a song about children living with AIDS. A lot of children with AIDS live with this idea that there's a chance that the virus could change and go dormant. I read this article about Russian children who are born with AIDS because of their parents' various lifestyles and mistakes and they're in a hospital, quarantined and waiting to be changed. To me, it represents-- I was a very sickly child. You know that. I still am a sickly person, and the reason I'm so emaciated and everything is cause I have a genetic condition. I had to have a lot of surgeries when I was 16 and I spent months and months in the hospital, and so I got real used to children's hospitals. They're kind of haunted, weird places. That's what I wanted that song to encompass. The big explosion at the end? I wanted that, if there's a video for that song, I want to have like this dance sequence with sick children. Like a Charlie Brown Christmas special when they're all dancing, but I want to have it be like they're ghost children, kind of transparent.

Pitchfork: Yeah, I just watched that, "A Charlie Brown Christmas".

Cox: "On Guard" is a simple song. It's kind of a lullaby. And it's about getting to the age where you used to be a social person. I did. I used to feel really at home with people, feel comfortable with people. I still do, and it's like, I'm talking to people like you, that-- like, we might barely know each other, but you know more about me than-- I mean, we have a relationship here.

Pitchfork: That's always weird, for sure.

Cox: And you've also influenced the changes in my life, too, and you probably don't even realize it. But "On Guard" is specifically about the part in your life where you just let go of that and you start, you have this newfound anxiety where it's like, you want to make friends, but there's something missing, you know? Whether it's because you're trying to recover from an unrequited love situation or you're just going through the type of things that people our age go through. As much as you wanna go out and meet somebody new-- you think that that would be the answer that would distract enough, you're searching for distraction-- but the distraction can't come, because you don't have the energy to represent yourself to people. You're always on guard. It's kind of a sad song.

"Winter Vacation" is a song about a trip that my family took to Savannah [Geo.] the week I met Lockett. The day I met Lockett I saw him in a busport, and he looked so lonely. I was like, who is this lonely boy? I was attracted to him, but not in some kind of like, just physical way. I was attracted to his melancholy, his sitting alone, staring at the ground. Like: What was the kid thinking? I immediately fell in love right then at first sight. I remember driving to Savannah with my family, my parents arguing the entire way, because my parents fought all the time before they divorced. I had a real kind of intense upbringing with my family. And we didn't have any money, we were very like lower-class, and there was just a lot of tension. There was alcoholism and stuff. It was a time in my life where there was a lot of pain and suffering that a lot of people go through-- I don't feel alone or pity myself.

But I just remember sitting in the backseat in heaven, feeling like I was on ecstasy, listening to headphones. I believe I was listening to The Orb's Adventures Beyond the Ultraworld, "Back Side of the Moon". My parents are fighting in the front seat and we arrive at the beach, in Savannah, and it's the dead of winter. And just, the beach is just the most desolate place, and I remember it was raining. A lot of the lyrics are like, "I saw the rain crash into the windshield." It's just the details. And the details somehow were infected with that new love I had and seemed blown out of their normal kind of tame or subtle context. Everything seemed like an explosion. It all seemed new, it all seemed real bright, and I was so excited. I was so excited. Lockett had just given me his phone number for the very first time. And I was driving with all these expectations of, like, "I want to make this boy my friend. I want to possibly make this boy my boyfriend." I was in love for the first time in my life, ever, and it made this desolate beach scene seem so... cozy, you know? It was just a warmth coming from within for me.


"Cold as Ice" is a very simple song based on a guitar loop Lockett made.

Pitchfork: Right.

Cox: It's just a snapshot. The meaning is not really significant. I had really been in love with this girl in fifth grade, and I proposed marriage to her on the school playground. She was the sweetest girl, she was kind of homely. Her name was Alice. And I gave her this ring, and she laughed at me in front of everybody. Everybody gathered around and she said, "This ring is a cheap piece of crap." She threw the ring down in the sand and just walked away, and, years later, I worked with her at Subway. She would walk in and walk right past me, go back into the back room, which is like the refrigerator, and she'd change into her outfit. Sometimes, for no reason-- she was really involved with drugs later on when we grew up-- she would invite me back there to watch her change in this room, and it was cold as ice. She'd be like, "Go back there and wait for me." It's like this weird mental game she played with me. I don't know. She was trying to torture me or something. She ended up marrying a cop.

"Scraping Past" simply created itself and I don't even know what I would say about the words. It's about moving on, you know? And wondering if somebody is going to come with you or if they're going to stay behind. It's just a consideration of, what are you leaving behind? And it also does the typical pop song cliché thing of making a reference to, like, rain that comes and goes, sunshine comes and goes, cycles, friendships come and go. The end of it is me saying, basically to Lockett, I guess: "Are you going to come with me, or are you staying here?"

And "Small Horror" is the most depressing song on the album to me. I mean, it's just the sound of like banging depression, you know, it's just concrete. And it basically was like a plea for like, hey, it's like, I understand you can't return my love exactly how I extend it, but hey, you know, just pretend. Because I'd rather you pretend, you know? Hold me even if you don't care. Even if it doesn't mean shit to you. Just do it, and pretend.

"Ready Set Glow" is just an ambient piece that I really wanted to create the impression of passing out and falling back into a bed of strobe lights.

"Bite Marks" is a pop song about sadomasochism and boy prostitution. I kind of just took an experience I had, which was I was making out with this guy and he bit me really, really hard on my shoulder, and I had bite marks that were there for like two weeks. Every time I got out of the shower, I saw them. I wrote it from the perspective of somebody who-- I also remember when I was abused as a child, kids would put cigarettes out on me. This happened once on Christmas morning, and those kind of things kinda got put in there.

"After Class" was just a sonic experiment, a rearrangement of a previously existing song. I was just experimenting with the computer. I don't feel bad including it, because I don't think it's a waste of time. Critics are going to say it drags, and wastes time, and slows down the album, but I wanted it there.

Pitchfork: You've kind of said you like having everything you want on an album even if...

Cox: Yeah, I don't care what bores people, you know? "Ativan", the 13th song, is really about the most straightforward song on the album. It's just a garage-rock pop song about being addicted to Ativan, which is something I deal with. It's kind of cliché probably, but I don't care. It's an honest song, and it talks a lot about how things have changed between me and Lockett's relationship and how he's met a girl and, I mean, our friendship is never gonna change, but it's difficult sometimes. It's written from the perspective of somebody that just wants to not deal with the reality that's going on. I know that things aren't going to be the same, and so I'd rather just take whatever drugs it takes to go to sleep and sleep through it, you know? I'm not prepared to face it yet.

And the last song is just an instrumental title track. What I wanted to accomplish with that was I just wanted to create a little bit of a circle because the album begins on an ambient note, and I wanted the album to end on an ambient note, and in that way, the entire album was a dream. And it kind of was. The entire album is the dream of one summer, this last summer I had. It's almost as if I had one continuous dream and the product of archiving it is the album you have here.

Pitchfork: You talked in the press release about how you wanted this to be kind of therapeutic. Did you get that from Brian Eno?

Cox: I had a conversation with Pauline Oliveros. I was driving around with a friend who was stoned off his gourd and just mentioned to me that Pauline Oliveros was playing at a house show in Decatur, which is a suburb of Atlanta. I said, "Holy living fuck, you have got to be kidding." And he said, "No, it's going on," and so I said, "Get me there now, goddammit," you know? We showed up and she had just finished playing, but she was sitting alone, in front of a bonfire, and there was an empty chair next to her. I sat down with her, and we talked for about two and a half hours about how music can help people mourn. Music can help people make changes in their lives. Music can give people strength. Music is the only art form I know of that has such an immediate effect on the human psyche. She talked to me a lot about some academic stuff about brainwaves and how they respond to certain types of music: drone music, microtonal music. She was a big influence on me. It was like meeting a hero of mine. She runs an organization that studies music as therapy.

Pitchfork: What was the role that Nudge's Brian Foote played on this album? You mentioned him on your blog.

Cox: He picked out the equipment that I used. I would have had no idea what to choose. He showed me the basics of the software, which I would have been hopeless without.

Pitchfork: 'Cause you were like four-track for your previous Atlas Sound stuff, right?

Cox: Total lo-fi, yeah. And he really helped me sort stuff out so that I could have ideas that I didn't even know I could have, just exploding everywhere out of me. Just a real immediate, fast process. I treat it almost like a graphic design situation.

Pitchfork: I haven't seen you do the Atlas Sound thing live. Well, I've seen a little bit on YouTube...

Cox: Did you see the Fader thing? That was a joke. That was a very dark joke.

Pitchfork: So what are you going to be doing for this, live?

Cox: I'm doing a tour with White Rainbow-- Adam Forkner. [And] Valet-- Honey Owens. Brian Foote is going to be playing with us, and Stephanie Macksey. It's going to be a full band. It's gonna be fun, a very psychedelic experience, I think.

Pitchfork: So Atlas Sound, with the backing band?

Cox: I'm not Atlas Sound. Atlas Sound is just the name of the project. Atlas Sound is going to be this band for this time. Next time I want to have three drummers.

Pitchfork: That kind of brings me back to all this Deerhunter stuff. You just got back from Europe-- you've toured there before. How was it this time?

Cox: The European experience? It had its ups and downs. It was good. It was successful. We were treated very, very well, very respectfully. The problem is we've been playing Cryptograms for two years now. I never commented to you guys, or to any other media place at all during the whole Colin [Mee] situation. Although, the way that was represented was complete bullshit. Everything about that was complete bullshit. He knows it, I know it, we all know it. Basically, he left the band for his own reasons, which had nothing to do with us, had nothing to do with our blog, had nothing to do with anything. We have all been trying to write songs. He was not trying to write songs. That was the issue.


That's been misrepresented because a lot of people think that he has somehow changed my performance style, because I have stopped wearing dresses. I have kind of tamed down my performance. But that has nothing do with-- I don't answer to anybody. I do not answer to anybody except myself, my conscience, and my instincts, and I didn't feel like wearing dresses anymore. I thought it was boring. I thought the point was made, and I just wanted to work on a huge sound. And Colin-- I mean, the band. I don't know, man. That's why we're taking a hiatus, because I don't know. It's all up in the air. I'm not saying the band's breaking up, I'm not saying the band's not breaking up. I'm not saying that the hiatus will be more than six months, I'm not saying the hiatus could be over in two weeks. I'm saying, whatever happens, happens. It's not that I'm focusing on Atlas Sound now and that's taking over Deerhunter. It's just that I'm doing whatever. I'm playing music every day, and whoever wants to play music with me, let's play music, you know? A lot of times, being kind of a loner, I play music by myself.

Pitchfork: You were mentioning earlier the responses people have to you, and I think that ties into the way people may have misinterpreted the Colin situation and all that. Why do you think you get such extreme reactions?

Cox: Because I'm an odd-looking guy who is not afraid to bend the rules of what is acceptable for someone of my stature. People expect me-- I don't want anybody's pity, because it's worthless. Worthless, worthless, worthless. It's never helped me before. I just do my shit: I don't give a fuck if people like it, I don't give a fuck if they don't. We're not going to be rockstars. I don't give a shit whose top 10 lists we aren't on. It feels good to have some nice people, because you meet cool friends. That's what I'm interested in. I'm interested in connecting with people, one to one. Like, you wanna talk, talk. Don't fucking anonymously bait me. Don't fucking threaten me, because I'll take on anybody's fucking threats. Because I believe in this shit more than I believe in anything else. To me-- I mean, I'm retarded. I'm, like, autistic. I'm totally an autistic person. Punk rock, my image of it, is what drives my instincts and what makes me create stuff. I don't understand half the stuff I create. I don't have to explain it. I don't have to explain myself or my motivations.

I'll tell you one thing. Here's what my motivations aren't. My motivations are not to be some successful indie rock band. My motivations are not to be a flash-in-the-pan, fucking mediocre-- I'm not gonna name names, but there's so much mediocre garbage being produced by fucking attractive, educated people, and it's like, what the world needs now is noise. And I don't mean... What the world needs now is noise in a pop song. The world needs to give in a bit to psychosis, to the mentally ill. I think that music is really safe right now, and I think it's really tedious.

I don't think I'm doing something grandiose. I'm not the answer. I'm just this frail kid trying to do his own thing, you know what I'm saying? I'm not gonna be the-- I'm just wishing for somebody else, maybe, that would. I would love to be that person, but I'm weak. I'm weak as fuck. The transgressions I get myself into oftentimes just embarrass me. I don't make real smart decisions because I don't think about stuff a lot. I just do, I just act. It just seems like, you know, eventually people are gonna realize that the world's not as safe as you wanna make it-- with your music, with your Ikea furniture, and your (clears throat) iPods. I have all these things. I'm not being elitist here. I'm just saying, I'm guilty of the same thing. I want to distract myself as much as possible from reality, from my anxieties.

Pitchfork: One thing that I think is really interesting is how you're one of the few notable musicians who keeps such a thorough mp3 blog. You post mixes, you post covers, you post other people's songs, and you write about them. But you're also part of a band in this mp3 blog era. How do you see your role as an mp3 blogger and how do you see all that affecting your music?

Cox: I just want to DJ with invisible songs. I want to DJ with a guitar, a bass, a drum kit, and some simple effects. I want to DJ songs that haven't been written yet. I want to make mixtapes that are instantaneously produced. That's the way I've approached the Atlas Sound material, and that's the way Lockett I think approaches the Lotus Plaza material. We don't expect an audience reaction. We don't expect anything. We're just doing it to do it. We have computers. We have the means to produce something. Why waste our time? And why keep it from the audience, hold it over their heads until it gets to the release date, and have to have them wait until it leaks onto a blog and download a shitty encoded mp3 of it? It's like, "Hey, I'll save you the time-- here's three songs I wrote today." It just made sense to me. Really what I'd love is if we could anonymously post stuff, and I'm trying to figure out a way to do that. I want to remove ego from things, I want to remove possession. I'm already removing possession by saying, "Hey kids, these songs are yours." There's no buying. I'm making songs for the kids who want to hear them, if they do.

It's also real educational for me because I'm constantly wanting to learn about new things I can do with my equipment. I know that sounds a little bit sterile, boring, or methodical, but if somebody writes me and says, "Man, I really want you to cover the Velvet Underground's 'I'm Beginning to See the Light,'" I can do it in the same day, and it's like a game to me. It's just like somebody who plays Scrabble or goes bowling. It's like, all right, here's the match. This guy is serving me a ball, Velvet Underground, and I'm gonna return that ball in eight hours to him in a perfect stroke. That song is for him.

And I'd do that for anybody when I have the time. [When I'm not on tour] I hope to God people want to send in some requests, because I want something to take up my time. I don't want to think about how depressed I am, how tired I am, how I want to change things, and how I wanna quit my band sometimes. Which I'm not going to, necessarily. These are just natural human feelings: self-doubt, insecurity. I just want to be distracted from all that. It really makes people happy when you record a song for them. I'd rather just really make people happy. If I could bake them cookies, I'd do that, too. And it's not like I'm trying to suck up to my fanbase or something like that, it's just mutual respect.

Pitchfork: Do you have any other songs for the next Deerhunter album, Microcastle, besides the ones you've posted?

Cox: They're coming slowly. I think what we're going to do is not be so quick to debut them, though. Because I don't want to make more demos and then find out that we go into a fucking studio and pay a shit ton of money to record them and feel like the demo's better and know we have to release the studio version. The more demos you make, the more disappointed you get when the final version doesn't quite have the intensity, or the noise, or the low fidelity. I've always been a fan of demos.

Aw, man, I wish I could tell you more about the next Atlas Sound album. It's not coming out until 2009 or something. All I can say is it's very drum-heavy.

Pitchfork: You mentioned Lil Wayne at one point on your blog. What's your take on what he does?

Cox: Lil Wayne? I think he's a genius. I think he's quick. I think he's got a good head on his shoulders-- maybe not the best judgment, though. I was driving down the boulevard and he almost hit me in a green Lamborghini. They were shooting a video without a permit or something, and I don't even know what happened, but all I know is this car cuts out in front of me, I have to go up on the sidewalk and...

[Cox's publicist announces it's time for the next interview.]

Son of a bitch! OK, well, I'm going to treat this guy like shit.

Wednesday, July 25, 2007

Dizzee Rascal - Maths & English

Album Review
SPIN
July 2007
Link
5/10

Cover Art: Dizzee Rascal,  'Maths & English'  








Feisty East Ender goes overboard with guest list.

London rapper/producer Dizzee Rascal went from upstart Boy in da Corner to Showtime sensation over the course of his first two albums, carrying the standard for the bellicose, breakbeat-based U.K. grime scene. Now, on new single "Sirens," he promises to "take it back to that old-school, storytelling shit." Slower and more predictable than its predecessors, Maths & English may have you waiting for the schoolbell to ring.

But not before a few compelling lessons. With metallic distortion, "Sirens" breathlessly recounts a panicked flight from the police. "Pussy'ole" goes older school, reshaping the Lyn Collins sample behind Rob Base's 1988 "It Takes Two" into a sharp, fast-paced dis. Dizzee's production palette is broader, too, as on knives-as-percussion opener "World Outside," perhaps his best-sounding track to date.

The rest feels scattered. There's a summer song ("Da Feelin'"), a dance song ("Flex"), an industry song ("Hard Back [Industry]"), a shoe song ("Bubbles"), an Arctic Monkeys song ("Temptation"), and a song where Lily Allen acts rude over secondhand reggae ("Wanna Be"). Texas rappers UGK appear on poseur-bashing "Where's da G's," but Maths & English shies away from their legendary double-time intensity. "They're out to get me," Dizzee spits on "Paranoid," actually rhyming "insane" and "brain." The insipid chorus of "Suck My Dick" might explain everything: "I don't give a shit who likes it," he claims. Class dismissed.

Friday, June 29, 2007

Simian Mobile Disco - Attack Decay Sustain Release

Album Review
Village Voice
June 29, 2007
Link

Populist jams for blogs and dance floors both.

Electroclash never promised to cure loneliness. As two-thirds of now-defunct U.K. psych-poppers Simian, James Ford and James Shaw kinda did. Remixed by French electro duo Justice, Simian's "We Are Your Friends" (née "Never Be Alone") has kept clubgoers company worldwide, with an award-winning video that made Kanye West act out like a jilted John McEnroe.

Under goofy sideline name Simian Mobile Disco, Ford and Shaw have now taken Justice's house-as-rock approach someplace even friendlier: house-as-pop. The English twosome's early singles got their acid-squelched synths and icy beats down, all right. But they never skimped on hooks, either, and neither does Attack Decay Sustain Release, whether it's the Go! Team's Ninja cheerleading through "It's the Beat" or New York singer Char Johnson provoking the RIAA on "Hustler." It's love song "I Believe," though, that really sets the group apart from 2007's other big-beat revivalists, draping ex-Simian bandmate Simon Lord's FutureSex'd croon in Italo-disco shimmer. By keeping its heart, the result edges out Justice's more brutal for most exciting, um, "blog house" debut of the year.

It could've been "nu rave." Ford produced U.K. indie-dance hypes Klaxons, not to mention Arctic Monkeys. Like those bands, though, Simian Mobile Disco probably logged more hours at rock festivals than raves. Barry Dobbin of former U.K. indie-poppers Clor calls out between laser-synth swoops on "Love," while "Hot Dog" takes "It's the Beat" to its logical schoolyard conclusion. Orbital-esque soundscapes "Wooden" and "Scott" clear the floor without losing the melodic flow. Always dilettantes, never snobs, Ford and Shaw here even edit their club singles down to three-minute pop songs. It's economy, stupid. Friends, indeed!

Simian Mobile Disco plays Studio B July 7, clubstudiob.com

Tuesday, June 12, 2007

Swizz Beatz - One Man Band Man

Album Review
SPIN
June 2007
Link
3.5 stars

Cover Art: Swizz Beatz,  'One Man Band Man'









And you thought DMX was the unstable one.

"My album's crazy," boasts Kasseem Dean, a.k.a. Swizz Beatz, throughout his second solo record. While other rap/R&B producers turned performers have been disappointingly uneven lately -- Timbaland, WTF? -- One Man Band Man makes schizophrenia a virtue. Gaudy beats start and stutter on party joints like the delirious single "It's Me Bitches." Swizz turns socially conscious on the piano pep talk "Part of the Plan," assisted by Coldplay's Chris Martin. But by the chest-thumping "Bust Ya Gunz," the Beyoncé hit-maker is back to his Ruff Ryders roots. Crazy? Possibly.

Monday, June 4, 2007

Dan Deacon - Spiderman of the Rings

Album Review
SPIN
June 2007
Link
3.5 stars

Cover Art: Dan Deacon,  'Spiderman of the Rings'  









Baltimore goofball packs ingenious sonic punch.

Dan Deacon may look like Bill Nye the Science Guy, but he's more like Dr. Demento. This one-man A/V club party makes low-budget electronic pop that's as bizarre as it is uproarious. Deacon's first proper album (after several limited releases) tricks out Devo-esque new wave with eight-bit beats, cartoon sound effects, and munchkin-pitched Ludacris quotes. While a classically trained background shows through the blissed-out drones of "The Crystal Cat," Deacon's weird-science experiments more often test your funny bone -- and shake your moneymaker.

Thursday, March 15, 2007

A Bevy of Tax-Savvy ETFs

News Analysis
BusinessWeek.com
March 15, 2007
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A Bevy of Tax-Savvy ETFs

It may be too late for this year, but these five exchange-traded funds earn top marks from analysts and may help soften the tax bite for 2007

The recent global stock sell-off might be investors' biggest worry these days, but it's likely not their only one (see BusinessWeek.com, 3/1/07, "What the Market Is Telling Us"). With this tax season's Apr. 17 (delayed due to a Sunday and Emancipation Day) deadline fast approaching, many taxpayers may also be turning with fearful eyes toward the IRS. While it's probably too late for most of us to reduce any 2006 tax pain related to our investment holdings, a hard look at this year's return can help you assess your portfolio's tax exposure and plan changes to improve things for coming years.


Exchange-traded funds, or ETFs, have long been heralded for their tax-efficiency (see BusinessWeek.com, 1/18/07, "Going Global with ETFs"). Unlike traditional mutual funds, ETFs don't have to sell shares of stocks and possibly incur taxable capital gains when shareholders reduce their stake in a fund. Like index funds, ETFs typically have low portfolio turnover, also cutting down on potential tax hurt.

But new products are hitting the market almost every week, and not all ETFs are created equal. This Five for the Money looks at five ETFs rated in the top of their class for consistent return and tax efficiency by fund tracker Lipper. As part of a well-diversified portfolio, these funds could deliver stable long-term gains and help fend off the tax collector, too.

1. iShares MSCI Austria Index (EWO)
 
The hills are alive with the sound of the tax man biting into your returns. But a jaunt to Austria, courtesy of the iShares MSCI Austria Index ETF, might result in a sweeter refrain. This ETF has posted average annualized returns of 36.02% in the five years ended Mar. 13, compared to 15.17% for the MSCI EAFE index. The fund carries a low 0.54% expense ratio and lost only an average annualized 0.42 percentage points of its returns to tax costs over the past five years, according to Morningstar (MORN) data.

IShares MSCI Austria Index has posted stunning returns at times, but it probably shouldn't be a big holding for most investors. "That would be for somebody who was either familiar with the European region or felt that they needed to have additional exposure to Austrian equities," explains Lipper senior research analyst Jeff Tjornehoj.

2. iShares Russell 2000 Value Index (IWN)
 
A multi-year rally for small-cap value stocks—equities of small companies seen trading at lower prices relative to their fundamentals—has lifted many boats. The iShares Russell 2000 Value Index ETF is no exception. For a 0.25% expense ratio, the fund has racked up five-year average annualized returns of 13.01%, vs. 5.58% for the broader Standard & Poor's 500 index.

Like other ETFs listed here, iShares Russell 2000 Value Index also earns Lipper's top score for tax-efficiency. On an average annualized basis, tax costs cut only 0.54 percentage points out of the fund's impressive returns over the past five years. However, investors may want to consider how long small-cap value's winning streak can continue before buying shares (see BusinessWeek.com, 1/3/07, "Style Wars: Growth or Value in '07?").

"It's not surprising to see value indexes showing up on this list," says Lipper's Tjornehoj. "They've had a very good run over the past three years, and they've been able to do that despite the fact that so many value stocks are oftentimes regarded as spinning off too much income for some investors."

3. Vanguard Small Cap Value ETF (VBR)
 
A like-minded offering from a long-time stalwart of low-cost, passive investing is the Vanguard Small Cap Value ETF. This fund undercuts iShares Russell 200 Value Index with a cheap 0.12% expense ratio and tracks the MSCI U.S. Small Cap Value index, considered by some to be a better benchmark because of its more complex methodology.

Over the past three years, the Vanguard Small Cap Value ETF boasts average annualized returns of 13.62%, or 4.5 percentage points ahead of the S&P 500. Tax costs ate up an average 0.52 percentage points of those returns each year. Top holdings include Northeast Utilities (NU) and OfficeMax (OMX).

4. iShares Russell Midcap Value Index (IWS)
 
Value has been the name of the game for medium-sized companies' stocks, as well. True to its name, the iShares Russell Midcap Value Index ETF tracks the Russell Midcap Value index, which comprises the value-tilted stocks of the Russell Midcap index. The index is more heavily weighted to larger companies than are some other midcap benchmarks, according to Morningstar, likely helping this ETF generate such consistent returns.

iShares Russell Midcap Value Index has generated average annualized returns of 14.5% over the last five years, topping the S&P 500 by 9.01 percentage points. A modest 0.25% expense ratio and a low 0.66 tax cost ratio mean shareholders can enjoy nearly all of the returns.

5. Vanguard Value ETF (VTV)
 
Last but not least, the Vanguard Value ETF has built up a solid record of tax-efficient performance in the large-cap segment. The fund tracks the MSCI U.S. Prime Market Value index, made up of value-oriented stocks within a group of the country's 750 biggest companies. In the past three years, the ETF has posted average annualized gains of 13.24%, beating the S&P 500 by 4.12 percentage points.

Vanguard Value ETF can also lay claim to a meager 0.11% expense ratio. And tax costs? The IRS's average annualized hit to the fund's total return over the past three years has been 0.51 percentage points.

Of course, as frustrating as tax season can be, investors shouldn't judge a fund solely on tax efficiency. These ETFs have a track record of dependable returns to go with their tax-savvy advantages. At least that can help investors breathe a bit easier amid the stock market's ongoing gyrations.

Wednesday, March 14, 2007

Stocks Rebound in Topsy-Turvy Day

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BusinessWeek.com
March 14, 2007
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Stocks Rebound in Topsy-Turvy Day

Major indexes recovered from sharp midday losses, despite concerns about subprime lenders and declines in overseas stock markets

Wall Street clawed back from steep losses in a wild session Wednesday. Stocks finished higher as investors looked past subprime lending worries and weakness in overseas markets amid a pair of favorable economic reports. Strength in energy- and software-related shares helped boost major indexes.

A massive midsession sell program was followed quickly by short covering and heavy buying, as traders positioned for quadruple witching, the trader's term for when the monthly stock and index option expirations coincide with the quarterly expiration of stock and index futures contracts, says Standard & Poor's Equity Research.

On Wednesday, the Dow Jones industrial average rose 57.2 points, or 0.47%, to 12,133.16, after tumbling below 12,000 earlier in the session for the first time since November. Microsoft (MSFT) paced the blue-chip benchmark higher. The broader Standard & Poor's 500 index added 9.22 points, or 0.67%, to 1,387.17. The tech-heavy Nasdaq composite climbed 21.17 points, or 0.9%, to 2,371.74. (Market action for each index can be viewed by clicking on the accompanying images.)

NYSE breadth was positive, with 20 issues advancing for every 13 declining. Nasdaq breadth was 17-14 positive.
Subprime lenders' troubles may be part of a broader liquidity crunch, some analysts say. "There is kind of a threat to global liquidity," says Roger Nusbaum, a portfolio manager with Your Source Financial. "Subprime clearly is a piece of the puzzle, but I think what's going on with the yen carry trade potentially stands to be a bigger piece of the puzzle."

The market could be re-testing recent lows, technical analysts say. "A defensive turn into consumer staples sector is to be expected," notes Roger Volz, chief technical analyst at Swiss American Securities.

Other warn the decline might not have hit bottom yet. "Investors should remain alert to the market's actions over the next couple of days as indications of whether or not to take further defensive action or to be ready to buy," observes Richard Dickson, senior market strategist for Lowry's Reports.

In economic news Wednesday, the U.S. current account deficit narrowed to $195.8 billion in the fourth quarter of 2006, below expectations, from a revised $229.4 billion three months earlier.

U.S. import prices inched higher 0.2% in February alongside a 0.7% gain for export prices. The report was "not as hot as expected," says Action Economics.

The economic calendar Thursday brings closely watched inflation data. The producer price index, or PPI, is expected to show a 0.5% headline rise and a 0.2% increase excluding food and energy, says S&P.

Among Wednesday's stocks in the news, General Motors (GM) was lower after the automaker reported a fourth-quarter profit of $950 million, shy of Wall Street expectations.

Lehman Brothers (LEH) was lower despite posting a record first-quarter profit, on the heels of a record earnings report at fellow investment bank Goldman Sachs (GS) a day earlier.

Goldman was higher amid reports the company is looking to buy a subprime mortgage lender on the cheap.

Outside of earnings, H&R Block (HRB) edged higher, recovering from an early slide after the tax preparer delayed filing its quarterly report, citing a needed write-down in subprime mortgage lending unit Option One.

On the M&A front, Citigroup (C) said it will begin a tender offer for Nikko Cordial on Thursday after sharply raising its bid for the Japan-based brokerage.

In analyst calls, Qualcomm (QCOM) was higher after J.P. Morgan upgraded the telecommunications company from underweight to neutral.

Shares of Southwest Airlines (LUV) gained after HSBC upgraded the stock from neutral to overweight.

Elsewhere, China-based Internet search provider Baidu.com (BIDU) was lower after a report by China Intelliconsulting suggested click fraud could limit revenue growth.

In the energy markets, April West Texas Intermediate crude oil futures rose 23 cents to $58.16 a barrel after a weekly inventory report showed a slightly smaller-than-expected increase in crude supplies. Focus now turns to Thursday's OPEC meeting.

European markets finished sharply lower. The FTSE-100 index in London fell 160.5 points, or 2.61%, to 6,000.7. Germany's DAX index dropped 176.29 points, or 2.66%, to 6,447.7. In Paris, the CAC 40 index was down 136.72 points, or 2.52%, to 5,296.22.

Asian markets ended heavily lower. In Japan, the Nikkei 225 index tumbled 501.95 points, or 2.92%, to 16,676.89. In Hong Kong, the Hang Seng index slid 496.21 points, or 2.57%, to 18,836.93. Korea's Kospi index skidded 28.68 points, or 2%, to 1,407.37.

Treasury Market
 
Treasury prices dipped, erasing early gains amid a drop in the yen's value. The 10-year note fell in price 10/32 to 100-26/32 for a yield of 4.52%, while 30-year bonds dropped to 100-29/32 for a yield of 4.69%. "Yen weakness alleviated concerns that institutions were unwinding carry trades," says S&P.

Tuesday, March 13, 2007

Stocks Tumble on Mortgage Worries

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BusinessWeek.com
March 13, 2007
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Stocks Tumble on Mortgage Worries

Bad news about subprime lenders and fourth-quarter foreclosures sparked selling, with the Dow shedding over 240 points

Wall Street's three-day winning streak didn't stand much of a chance Tuesday. Stocks finished broadly, sharply lower, as growing concerns about the subprime mortgage market and a disappointing retail sales report helped spark a sell-off. Volume spiked, likely indicating trading by institutions, says Standard & Poor's Equity Research.

On Tuesday, the Dow Jones industrial average dropped 242.66 points, or 1.97%, to 12,075.96. The broader Standard & Poor's 500 index slid 28.65 points, or 2.04%, to 1,377.95. The tech-heavy Nasdaq composite tumbled 51.72 points, or 2.15%, to 2,350.57.

NYSE breadth was decidedly negative, with 28 issues declining for every 6 advancing. Nasdaq breadth was 25-5 negative.

Economic worries and options expiration were helping to send stocks lower, analysts say. "Weak retail sales reignite the fear the economy may be slowing a bit more than anticipated, coupled with the still strong short-term inflationary pressures," says Peter Cardillo, chief market economist at Avalon Partners. "Adding to the decline today is that this week we have options expiration, and that may also be adding some selling pressure."

The sell-off was an extension of the market's volatility since Feb. 27, some analysts. "Over the next three months, we can expect lower lows and, eventually, higher highs," says Barry Ritholtz, chief market strategist at Ritholtz Research & Analytics, in a report. "But to get to those better prices, we are going to have to become deeply oversold. Thats a process: rallies near highs that fail, and selloffs to deeper levels.

Others point to a healthy correction underway. "The recent rally occurred on improving volume," says Walter Murphy, senior international market analyst at Merrill Lynch, in a note to clients. "Now a correction has occurred on declining volume... This, plus a still generally constructive momentum and breadth background, suggests that the correction will prove to be a healthy effort to consolidate gains prior to another rally attempt."

In economic news, U.S. retail sales rose 0.1% in February, less than expected, following a flat January. Retail sales were down 0.1% in February excluding autos. "Weather may have weighed on sales, but nevertheless, traders will take the data and run," says Action Economics.

A report showing increases in foreclosures and late mortgage payments weighed on financial-services stocks. The Mortgage Bankers' Assn. said the rate of U.S. foreclosures rose to a record 0.54% in the fourth quarter of 2006, from 0.46% three months earlier. The delinquency rate on U.S. home loans advanced to 4.95% in the fourth quarter from 4.67% in the third quarter.

The National Assn. of Realtors said the the housing forecast is cloudy, with a recovery in the market not likely until late this year.

Separately, U.S. business inventories rose 0.2% in January, slightly more than expected, alongside a 0.7% sales decline.

The economic calendar Wednesday holds reports on February trade prices and the fourth-quarter current account deficit.

Among Tuesday's stocks in the news, the NYSE delisted subprime lender New Century Financial (NEWC), which plunged in pre-market trading Monday before trading in the shares was halted. In addition, New Century said the SEC was seeking documents as part of a probe into accounting errors.


Stocks with consumer banking operations like Citigroup (C), Washington Mutual (WM), and JPMorgan Chase (JPM) were solidly lower amid market worries about mortgage lending.

General Motors (GM) was lower after the automaker's former finance arm, General Motors Acceptance, said it would get another $1 million from GM and cited pressures from the subprime mortgage market.

Viacom (VIA.B) sued Google (GOOG) and its YouTube video unit for $1 billion over alleged copyright infringement.

Meanwhile, Texas Instruments (TXN) was lower after the chipmaker's forecast for first-quarter sales and profit disappointed some analysts.

Goldman Sachs (GS) was lower despite reporting a record first-quarter profit.


Fabric retailer Jo-Ann Stores (JAS) was sharply higher after the company said it expects to post a fiscal 2008 above Wall Street predictions.

On the M&A front, Citigroup (C) raised its bid for Japan-based brokerage Nikko Cordial by 26%, in a deal valued at up to $13.35 billion.

Medical device maker Boston Scientific (BSX) said it may spin off a minority stake in its endosurgery unit.

Oil prices extended a recent skid, weighing on corresponding stocks. In the energy markets, April West Texas Intermediate crude oil futures fell 98 cents to $57.93 a barrel, reversing early gains after tumbling in the previous session.

European markets finished lower. The FTSE-100 index in London fell 72.1 points, or 1.16%, to 6,161.2. Germany's DAX index dropped 91.5 points, or 1.36%, to 6,623.99. In Paris, the CAC 40 index was down 63.13 points, or 1.15%, to 5,432.94.

Asian markets ended lower. In Japan, the Nikkei 225 index shed 113.55 points, or 0.66%, to 17,178.84. In Hong Kong, the Hang Seng index lost 109.28 points, or 0.56%, to 19,333.14. Korea's Kospi index declined 5.28 points, or 0.37%, to 1,436.05.

Treasury Market
 
Treasury prices pushed higher amid the soft retail sales data and ongoing subprime worries. The 10-year note rose in price 15/32 to 101-01/32 for a yield of 4.49%, while 30-year bonds climbed 24/32 to to 101-16/32 for a yield of 4.66%.

Monday, March 12, 2007

The Not-So-Small World of Stocks

News Analysis
BusinessWeek.com
March 12, 2007
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The Not-So-Small World of Stocks

U.S. and global markets fell in tandem during the late-February slide. Should investors reconsider the value of international diversification?

Wall Street's recent pullback came as part of a slump felt around the world. On Feb. 27, stocks tumbled across Asia, Europe, and the U.S. in the wake of a 9% drop in China's Shanghai composite index (see BusinessWeek.com, 2/28/07, "Stocks' Great Wall of Worry"). The recovery that lifted markets a week later was an equally global phenomenon.

Such highly correlated movements in world markets might seem to contradict the widely touted merits of investing abroad. After all, modern portfolio theory has encouraged investors to pour money into overseas stocks in recent years, based largely on the notion that such diversification would help protect investors against risk (see BusinessWeek.com, 12/18/06, "In Search of a Global Index Fund"). During the latest sell-off, major indexes in Europe and Asia typically fell even further than the top U.S. benchmarks. How's that for diversification?


Not so fast. The world may be getting smaller, but an international component still remains a fundamental piece of a well-diversified retirement portfolio, analysts say. While global markets will likely swing in tandem on some days, weeks, or even months, a broad stake in international stocks could help investors get ahead over the long-term.

"The cliché is, 'Stocks go down together, but they come up one by one,'" explains Brian Gendreau, investment strategist at ING Investment Management (ING). "The same is true of markets."

Global Correlation

Even beyond last month's skid, world markets have become increasingly linked. Correlation between U.S. markets and bourses overseas is up to about 80%, depending on the market, says Alec Young, equity market strategist at Standard & Poor's Equity Research. That's a sharp jump from correlation levels a few decades ago, when the literature on asset allocation started to get established.

Much of the recent correlation between stocks domestically and abroad likely stems from globalization. As of 2005, companies in the Standard & Poor's 500-stock index received an average of 40% of their revenues from overseas, according to the latest data from S&P Equity Research. Global economic cycles also happen to be in similar stages, with inflation relatively low across most major markets. "The issues that are moving the markets are global," Young says.

However, investors with some international holdings also enjoy the benefits of being diversified against currency risk, specifically the chance of a decline in the U.S. dollar. As the value of the dollar falls against foreign currencies, the value of stocks denominated in those currencies increases, even if share prices stay flat in local-currency terms.

The increasing correlation between global markets also underscores the importance of holding not only stocks, but also fixed-income investments. Bond prices tended to rise during stocks' late-February slump, as traders moved toward asset classes perceived as less risky. "Bond diversification does matter," notes Quincy Krosby, chief investment strategist at The Hartford (HIG).

Hot Commodities

Diversification-minded investors may want to consider, too, some alternative asset classes, such as commodities. The price of commodities like crude oil or gold can move independently from stocks, though that wasn't the case during the most recent sell-off.

Barclays Global Investors' (BCS) Dow Jones-AIG Commodity Total Return Index ETN (DJP) is one convenient way to get commodity exposure. Similar to an exchange-traded fund, this exchange-traded note has exposure to 18 different commodities, with no more than 33% allocated to energy. The ETN aims to deliver the return of the Dow Jones AIG Commodity Index, less a 0.75% fee.

In addition, investors should make sure their international holdings are spread across a variety of foreign markets, analysts say. "If you're broad-based, you're going to get the benefits of diversification and the benefits of international growth, and it's going to be a much smoother ride," says Doug Roberts, founder and chief investment strategist for Channel Capital Research.

Investors with long-term goals may want to endure some short-term pain in international stocks. "In terms of longer-term effects, the differences between markets still depend on the fundamentals, and as you go from country to country the fundamentals can be very different," says Jersey Gilbert, financial products analyst at Consumer Reports. To help diversify your portfolio, markets don't necessarily have to move in different directions all of the time—only some of the time.

Thursday, March 8, 2007

Stocks Rise After Overseas Gains

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BusinessWeek.com
March 8, 2007
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Stocks Rise After Overseas Gains

Major indexes pushed higher amid strength in European and Asian bourses, ahead of Friday's closely watched payrolls report


Stocks finished higher Thursday amid a global rally that began in Asia on upbeat economic sentiment. Major indexes pared gains in afternoon trading, however, amid concerns about subprime lender New Century Financial's (NEW). Analysts continued to debate whether the market has hit a short-term bottom, with some traders nervous ahead of Friday's employment report, says Standard & Poor's Equity Research.

On Thursday, the Dow Jones industrial average rose 68.57 points, or 0.56%, to 12,261.02, paced by AT&T (T) on an A.G. Edwards upgrade. The broader Standard & Poor's 500 index added 9.92 points, or 0.71%, to 1,401.89. The tech-heavy Nasdaq composite was up 13.09 points, or 0.55%, to 2,387.73.
NYSE breadth was decidedly positive, with 25 issues advancing for every 8 declining. Nasdaq breadth was 18-12 positive.

The market's latest rebound may not signal an end to its recent woes, some analysts say. "While most markets recently reversed their respective intermediate uptrends from last summer's lows, the larger bull market trends from the 2002-2003 low remains intact," says Walter Murphy, Jr., technical research analyst at Merrill Lynch, in a report. "Since medium term momentum is overbought and deteriorating, further weakness appears likely in the weeks ahead."

Others say worries about subprime loans shouldn't spread into a broader crisis. "Poor performance of recent subprime mortgages, ongoing distress among lenders, and the possibility of a broader credit crunch continue to worry market participants," says Goldman Sachs economist Andrew Tilton, in a note to clients. "But we emphasize we do not see this broad 'mortgage credit crunch' as the most likely outcome."

In economic news Thursday, weekly jobless claims fell 10,000 to 328,000 in the week ended Mar. 3, more than expected, following the previous week's 338,000 reading. Investors were awaiting Friday's report on February nonfarm payrolls, which Action Economic sees rising by 90,000.

Overseas, the European Central Bank raised its benchmark interest rate 25 basis points to 3.75%. ECB President Jean Trichet said rates were still on the "accommodative side," likely indicating more hikes to come.

Meanwhile, the Bank of England kept its key lending rate unchanged and signaled it will remain on the sidelines if inflation pressures ease.

The value of the Chinese yuan rose after U.S. Treasury Secretary Henry Paulson said Chinese officials should loosen controls on interest rates, accelerate sales of state-owned banks, and let the exchange rate move more freely.

Among Thursday's stocks in the news, retailers were posting lackluster February sales results. Wal-Mart (WMT), Costco (COST), Limited (LMT), and J.C. Penney (JCP) were among companies reporting lower monthly same-store sales than analysts expected.

On the upside, Target (TGT), Nordstrom (JWN) and Saks (SKS) beat Wall Street sales forecasts.
Chip equipment makers like Applied Materials (AMAT) helped lead the market higher after Morgan Stanley raised its recommendation on the sector from in-line to attractive.

However, New Century Financial was sharply lower amid speculation the subprime mortgage lender might file for bankruptcy, following the resignation of board member David Einhorn.

Elsewhere, Verizon (VZ) was higher after a federal judge ordered Internet phone carrier Vonage (VG) to the pay the company $58 million in a patent-infringement ruling.

Apple (AAPL) edged higher following an American Technology Research report the iPod maker might launch a new laptop this year that will save data on flash memory chips instead of a hard drive.


Shares of Ford (F) gained after Credit Suisse raised its recommendation on the automaker from underperform to neutral.

Monster Worldwide (MNST) was higher after Citigroup raised its recommendation on the staffing provider from hold to buy.

On the M&A front, Citigroup (C) was higher on a report the bank might buy Taiwan's Bank of Overseas Chinese for $425 million. Earlier this week, Citigroup bid $10.8 billion for control of Japan's Nikko Cordial.

CVS (CVS) raised its takeover bid for Caremark Rx (CMX), offering to pay $52.96 a share, plus a one-time dividend of $7.50 per share. The previous dividend offer was $6 per share. The bid follows a $26.84 billion, or $61.73 a share, offer from Express Scripts (ESRX).

In the energy markets, April West Texas Intermediate crude oil futures fell 18 cents to $61.64 a barrel, after running into technical resistance.

European markets finished higher. The FTSE-100 index in London rose 71.2 points, or 1.16%, to 6,227.7. Germany's DAX index added 95.48 points, or 1.44%, to 6,713.23. In Paris, the CAC 40 index was up 69.19 points, or 1.27%, to 5,524.26.

Asian markets ended solidly higher. In Japan, the Nikkei 225 index climbed 325.69 points, or 1.94%, to 17,090.31. In Hong Kong, the Hang Seng index gained 256.53 points, or 1.36%, to 19,175.17. Korea's Kospi index advanced 12.94 points, or 0.92%, to 1,423.89.

Treasury Market
 
Treasury yields rebounded modestly amid the drop in weekly jobless claims and speculation Friday's labor report may beat expectations. The 10-year note fell in price 05/32 to 100-30/32 for a yield of 4.51%, while 30-year bonds dropped 11/32 to 101-19/32 for a yield of 4.65%.

Stock Signals You Can Use

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BusinessWeek.com
March 8, 2007
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Stock Signals You Can Use

Look past the red and green arrows. From volatility to odd-lot shorts, here are a few indicators pros watch to figure the market's direction


"Sign, sign, everywhere a sign," as otherwise-forgotten '70s rockers Five Man Electrical Band sang in their only U.S. hit. Stocks' recent turbulence has brought another wave of predictions about where the market could be headed (see BusinessWeek, 3/12/07, "What the Market Is Telling Us"). Investors still focused on all the red and green arrows may find themselves feeling, well, a little lost.

Wall Street analysts (and financial journalists) routinely sift through a variety of indicators for hints about stocks' likely next move. Of course, no forecasting tool can be 100% reliable, as anyone who's ever gone outside without an umbrella after reading the weather report could tell you. Still, certain signals help prognosticators make educated guesses about the market—and, like the proverbial broken clock, sometimes even get it right (see BusinessWeek.com, 12/27/06, "Five for the Money's Best Stock Picks").

In an era of Google (GOOG) and other online tools, savvy investors increasingly have access to the same information the pros use. This Five for the Money finds a few indicators investors might want to check for signs of the market's possible direction. Some are commonsensical, others downright wonky, but all are part of the arsenal of Wall Street pros—and worth a look from ordinary investors.
 
1. The VIX


The Chicago Board Options Exchange Volatility Index (VIX.X) is commonly referred to as the "fear gauge." Some traders use the VIX to measure the implied volatility of Standard & Poor's 500 index options. A drop in the VIX can signal a rise in investors' risk tolerance, while a jump in the VIX could indicate that investor sentiment has grown more cautious.

The VIX moved to historically low levels in recent months, leading some analysts to worry that investors had grown complacent. The index tumbled to a 52-week low of 8.6 on Dec. 18, 2006, down 64% from its June peak. More recently, the market's latest slump has corresponded with a spike in the VIX. On Feb. 27, the index surged as much as 70%, its biggest single-day increase ever, prompting market observers to forecast a bumpy ride for investors (see BusinessWeek.com, 2/28/07, "Stocks' Great Wall of Worry").
 
2. The TRIN


If "the trend is your friend," as some traders like to say, perhaps the TRIN could be, too. The Arms Short-Term Trading Index, also known as the TRIN, tracks the relationship between the number of stocks increasing or decreasing in price and the volume associated with those stocks. Simply put, the TRIN shows whether volume is moving into advancing stocks or decliners.

If more volume is flowing into advancing stocks, the TRIN will be below 1.0. Conversely, if more volume flows into decliners, the TRIN will be above 1.0. How far the index moves below or above 1.0 dictates how overbought or oversold the market is seen to be. (Analysts use the terms "overbought" and "oversold" to describe when technical indicators suggest stocks are overvalued or undervalued, respectively.)

Amid last week's sell-off, the TRIN reached as high as 8.0 in intraday trading, well into oversold territory. Such a high reading could signal a short-term bottom for stocks, says Chris Johnson, CEO and chief investment strategist of Johnson Research Group. "If everybody's selling in an orderly fashion, it tells you we're probably going to see an extended period of selling," Johnson explains. "You want to see people running out of the theater after someone starts shouting 'fire,' rather than people coming out single-file."

 
3. Odd-lot shorts


Some market pros gauge investor sentiment by looking at the level of odd-lot short sales, or the amount of bets against the market made in batches of fewer than 100 shares. A spike in odd-lot short interest reputedly shows that average investors, not just the so-called "smart money," are taking a bearish position on the market. This information is released daily by the exchanges.

Because these investors are seen as less sophisticated, traders often use odd-lot short activity as a contrary indicator. Odd-lot short interest surged amid last week's market slide, possibly signaling the rally that followed on Mar. 6.
 
4. Moving averages


Technical analysts frequently monitor the relationship between major indexes and their moving averages for further indications about possible market direction. Moving averages are calculated by adding the current day's closing price of a security with the like figures for the rest of the days in the average period, and then dividing the total by the number of days in the period. This process is repeated or "moved" each day and a new average is developed.

Comparing the performance of the S&P 500 index against its 50-day exponential moving average may yield some clues for investors. "Almost every individual in the world can now go onto the Internet and pull up a chart and do this for free," says Mark Arbeter, chief technical analyst at S&P Equity Research.

When the S&P 500 is below its 50-day moving average, as it was in afternoon trading Mar. 6, that's typically perceived as a negative sign for the market. Not until the S&P 500 climbs above its 50-day average and the average itself starts to rise again would this indicator become positive for investors, Arbeter observes.
 
5. Relative strength


Investors who aren't afraid to delve into even more highly technical terrain may be interested in watching the relative strength index, or RSI. This measure is available from nearly any online stock-charting service and can indicate when stocks have touched bottom.

To show a market bottom, the 14-day RSI must fall below 30, which is considered oversold territory. Then, if the S&P 500 rebounds and subsequently suffers a pullback, the RSI must stay above its initial low. "Let's say the market rallies this week up to 1,410," Arbeter explains. "Then the S&P reverses and goes back and tests the low we saw [Mar. 5] and in fact closes below the low of 1,374. You want to see the [RSI] indicator be above yesterday's low."

Once again, none of these indicators can be used with certainty to predict upcoming market action. Still, investors who take them under consideration as one piece of a larger puzzle may find them a handy way of keeping up with the pros.

Wednesday, March 7, 2007

Stocks Falter Despite Fed Report

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March 7, 2007
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Stocks Falter Despite Fed Report

Major indexes slipped following Tuesday's sharp gains, though the Fed's Beige Book report showed moderate growth in most regions

Stocks finished modestly lower Wednesday, failing to build on Tuesday's bargain-hunting rally despite the Federal Reserve's moderately upbeat Beige Book report. Oil prices climbed on a bullish inventories report, while investors also looked ahead to Friday's payrolls report for further clues about the economy.

On Wednesday, the Dow Jones industrial average slipped 15.14 points, or 0.12%, to 12,192.45, despite a 1.9% gain by Hewlett-Packard (HPQ). The broader Standard & Poor's 500 index fell 3.44 points, or 0.26%, to 1,391.97. The tech-heavy Nasdaq composite shed 10.5 points, or 0.44%, to 2,374.64.
NYSE breadth was flat, with as many issues advancing as declining. Nasdaq breadth was 18-13 negative.

The market's recent turbulence could be more noise than substance, some analysts maintain. "The sharp decline in share prices has enhanced the already attractive valuation of the S&P 500, as has the decline in bond yields," says Abby Joseph Cohen, chief U.S. investment strategist at Goldman Sachs, in a note to clients. "Commentators have provided long lists of possible catalysts, both domestic and global... but U.S. fundamentals have changed very little."

Other analysts remained skeptical despite Tuesday's rally, citing technical factors. "Enough damage has been done to the daily and weekly charts to cause us to be suspicious of Tuesday's move as being a one-day wonder," notes Roger Volz, chief technical analyst at Swiss American Securities.

In economic news Wednesday, the Fed's Beige Book report showed moderate growth in most districts, despite "some slowing" in about a third of regions. The report is consistent with the Fed keeping interest rates steady, says Action Economics.

Treasury Secretary Henry Paulson reiterated his forecast of stable growth for the U.S. economy during remarks in Seoul, South Korea, according to a Reuters report. Paulson added that world economic fundamentals were strong despite fluctuations in global equity and foreign exchange markets, South Korea's financial ministry said in a statement.

Former Fed Chairman Alan Greenspan was also back in the headlines. Greenspan suggested the U.S. housing market has experienced an "inventory recession" but that the home sales decline has reached bottom, according to wire reports.

Meanwhile, the ADP National Employment Report said U.S. private nonfarm employment grew 57,000 in February to 115,111, following a downwardly revised 121,000 gain in January. The numbers don't change an expectation Friday's nonfarm payrolls report will show an increase of 90,000, says Action Economics.

The economic calendar is light Thursday, highlighted by weekly jobless claims data ahead of the payrolls release on Friday.

Among Wednesday's stocks in the news, Toll Brothers (TOL) was higher after the homebuilder said it may "burn off" its inventory in four or five months in most of its markets.

Take-Two Interactive (TTWO) was higher on news investors who own 46% of the video-game maker are joining in an attempt to take over its board and ask for a new CEO.

Citigroup (C) was modestly lower after running into a hurdle in its bid for Japan's Nikko Cordial.

Harris Associates, which owns about 7.5% of the brokerage, said it won't accept Citigroup's bid.

Google (GOOG) was modestly lower even after UBS raised its recommendation on the Internet search company from neutral to buy.

Shares of Kellogg (K) gained after Goldman Sachs upgraded the the cereal maker from neutral to buy.
On the earnings front, American Eagle Outfitters (AEOS) was lower despite reporting a 40% jump in fourth-quarter net income.

Payless ShoeSource (PSS) was sharply higher after the discount shoe retailer said it swung to a fourth-quarter profit.

Shares of Saks (SKS) climbed after the department store operator posted a fourth-quarter profit, up from a year-ago loss, on a 17% increase in sales.

Companies set to report quarterly results after the closing bell Wednesday included TiVo (TIVO).
In the energy markets, April West Texas Intermediate crude oil futures rose $1.13 to $61.82 a barrel, after a weekly inventory report showed crude supplies unexpectedly fell.

European markets finished modestly higher. The FTSE-100 index in London rose 18 points, or 0.29%, to 6,156.5. Germany's DAX index added 22.75 points, or 0.34%, to 6,617.75. In Paris, the CAC 40 index was up 17.94 points, or 0.33%, to 5,455.07.

Asian markets ended mixed. In Japan, the Nikkei 225 index lost 79.88 points, or 0.47%, to 16,764.62. In Hong Kong, the Hang Seng index declined 139.92 points, or 0.73%, to 18,918.64. Korea's Kospi index gained 8.02 points, or 0.57%, to 1,410.95.

Treasury Market
 
Treasury prices moved higher late in the session, after the Fed's Beige Book indicated evidence of slowing economic growth in some districts. The 10-year note rose in price 08/32 to 101-00/32 for a yield of 4.5%, while 30-year bonds climbed 12/32 to 101-26/32 for a yield of 4.64%. Trading could be slow Thursday ahead of Friday's payrolls report, says S&P.

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