Tuesday, June 08, 2004

Tuesday Watch

Earnings of Note

None of note.

Economic Data
None of note.

Goldman Sachs reiterated Underperform on CL, PNY and Outperform on BAX, FDC.

Late-Night News
Asian indices are modestly higher, led by mobile phone-related companies, after Merrill Lynch raised this year's forecast for global shipments of handsets. MCI ranks lowest among the seven largest U.S. telephone companies in a survey of their ability to serve businesses with at least 500 employees, the Wall Street Journal reported. Car buyers in China defaulted on nearly $12 billion of car loans by the end of 2003, prompting the country's banking regulators to more closely monitor lending for vehicle purchases, the Standard reported. Israel and Egypt may soon agree to have Egypt increase its Gaza Strip security presence in preparation for Palestinian control of the area, the AP said. Venus will pass between the Earth and the Sun today for the first time in 121 years and three-quarters of the globe will be able to view the phenomenon, Bloomberg reported. Saudi Arabia's religious leaders issued an edict condemning terrorist acts and calling on Saudis to provide information about planned attacks, Bloomberg said.

Late-Night Trading
Asian Indices -.25% to +.75% on average.
S&P 500 indicated -.02%.
NASDAQ 100 indicated -.20%.

BOTTOM LINE: I expect U.S. stocks to open modestly lower and then rally later in the day on short-covering and portfolio managers putting new money to work. A short-term top is likely to occur within the next couple of days as the major averages are reaching overbought levels and complacency is rising. I expect interest rates will begin rising again later in the week, as well. The Portfolio is 125% net long heading into tomorrow.

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