Earnings of Note
Company/Estimate
ATVI/.00
ATK/.87
BE/.04
CPN/-.11
CMX/.31
DISH/.15
TOL/.87
UVN/.08
XMSR/-.79
Splits
BEBE 3-for-2
EXC 2-for-1
Economic Data
Preliminary Non-farm Productivity for 1Q estimated +3.5% versus 2.6% in 4Q.
Preliminary Unit Labor Costs for 1Q estimated unch. versus -.4% in 4Q.
Initial Jobless Claims for last week estimated at 335K versus 338K prior week.
Continuing Claims estimated at 2971K versus 3013K prior.
FOMC minutes.
Recommendations
Goldman Sachs reiterated Outperform on RRI, IGT, CLX, CCI and PPH. GS reiterated Underperform on BPL and PPS.
Late-Night News
Asian indices are mixed as strength in Hong Kong and Taiwan is being offset by weakness in Korea and Japan. China's central bank probably won't raise interest rates immediately after the weeklong Labor Day holiday, which ends tomorrow, Ming Pao Daily reported. Three wildfires in Southern California that have burned more than 22,000 acres and destroyed at least 14 homes are nearly contained as cooler weather helps firefighters, AP reported. China's government has closed more than 8,600 unlicensed Internet cafes since February because they violated rules covering the admission of juveniles, Xinhua News reported. Fannie Mae is seeking the support of the SEC in defending its accounting policies, the Wall Street Journal reported. New York Attorney General Spitzer is preparing to file a lawsuit against Richard Grasso seeking repayment of some of the $139.5M in pay the former NYSE chairman received, the Washington Post reported.
Late-Night Trading
Asian Indices -2.50% to +2.0%.
S&P 500 indicated -.03%.
NASDAQ indicated +.07%.
BOTTOM LINE: I expect U.S. stocks to remain weaker to neutral tomorrow ahead of Friday's employment report. An unexpected rise in Unit Labor Costs or fall in initial jobless claims will likely send interest rates higher, thus pressuring stocks. The Portfolio is positioned market neutral heading into trading tomorrow.
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