Friday Watch

Earnings of Note
Company/Estimate
CPST/-.14
CHINA/.04
DRS/.54
LWAY/.06

Splits
NSM 2-for-1

Economic Data
Consumer Price Index for April estimated up .3% versus a .5% rise in March.
CPI Ex Food & Energy for April estimated up .3% versus a .5% rise in March.
Business Inventories for March estimated up .5% versus a .7% rise in February.
Industrial Production for April estimated up .5% versus a .2% decline in March.
Capacity Utilization for April estimated at 76.7% versus 76.5% in March.
Preliminary Univ. of Mich. Consumer Confidence for May estimated at 96.0 versus 94.2 in April.
Empire Manufacturing for May estimated at 34.75 versus 36.05 in April.

Recommendations
Goldman Sachs reiterated Outperform on BIIB. Sun Microsystems(SUNW) stock may reach $10 a share in a year if the company successfully shifts its focus from selling hardware and software to servicing and licensing, Business Week reported. Yak Communications(YAKC) which provides discount services for long-distance calling, may see its shares climb when it introduces a low-rate online service, Business Week reported.

Late-Night News
Asian indices are lower amid concerns that higher oil prices and credit tightening in China will raise material costs and slow global demand. The impact of the Sarbanes-Oxley rules may lead some of the U.S.'s top companies to reassess the costs of being listed, the Financial Times said. Advanced Neuromodulation Systems(ANSI) may be acquired by Johnson & Johnson, Business Week reported. Cisco Systems' Board authorized an additional $5 billion share buyback plan, Bloomberg reported. China's energy demands account for the recent surge in oil prices and also may soon cause a price decline, the Wall Street Journal said, citing Daniel Yergin, chairman of Cambridge Energy Research Associates. China's banking and planning regulators broadened their attempt to curb lending growth, adding petrochemicals, textiles and pharmaceuticals to a list of industries where credit is to be suspended or restricted, the China Securities Journal reported.

Late-Night Trading
Asian Indices -3.25% to -.25%.
S&P 500 indicated -.16%.
NASDAQ indicated -.21%.

BOTTOM LINE: I expect U.S. stocks to open lower tomorrow on weakness in Asia, a likely higher-than-expected CPI and a probable lower-than-expected Consumer Confidence reading. I also expect any extreme weakness in the morning will bring in bargain hunters later in the day. The Portfolio is 125% net long heading into tomorrow.