Earnings of Note
Housing Starts in April estimated at 1985K versus 2007K in March.
Building Permits in April estimated at 1960K versus 1976K in March.
Goldman Sachs reiterated Attractive View on Paper sector, favorites are IP, DTC and SPP. GS reiterated Outperform on A and AFL. GS reiterated Underperform on TWMC and JDSU.
Asian indices are higher on a very strong Japanese economic report and a rebounding stock market in India. Pakistan is committed to peace with India and will work with the new government of Sonia Gandhi, who will be sworn in as prime minister tomorrow, Agence France-Presse reported. BHP Billiton, U.S. Steel and six Chinese companies agreed to form a venture to raise as much as $725M by selling shares to fund the production of coke, a raw material used in steelmaking, the China Daily reported. The U.S. criticized China's announcement that the mainland may use force on Taiwan should the island press for independence, saying the statement was "unhelpful," Bloomberg reported. Japan's economy grew at a 5.6% annual pace in the first three months of the year, better than economists' forecasts of 3.8% growth, Bloomberg said.
Asian Indices -.50% to 2.0%.
S&P 500 indicated +.35%.
NASDAQ indicated +.61%.
BOTTOM LINE: I expect U.S. stocks to rally tomorrow as much-better-than-expected growth in Japan should calm investors' fears of collapsing Asian economies. Many earnings reports should provide further evidence of the strength of the U.S. economy as well. The Portfolio is 75% long and I will look to add market exposure into any unexpected weakness in the morning.