Tuesday, June 29, 2004

Tuesday Watch

Earnings of Note

None of note.

Economic Data
Consumer Confidence for June estimated at 95.0 versus 93.2 in May.

Goldman Sachs made positive comments on Lodging sector, saying current trends suggest Europe is beginning to recover and will act as a 'turbocharger' to the incredible strength in the U.S, favorites are HOT, FS and MAR. Goldman reiterated Buy on ITT, GDT, INTC, KO and STZ. Goldman reiterated Underperform on PBG and RKY.

Late-Night News
Asian indices are quietly mixed as strength in Korea is being offset by weakness in Hong Kong. Infineon Technologies AG and Nanya Technology are building the world's largest semiconductor plant that makes chips on 12-inch silicon wafers, the Economic Daily News reported. Grey Global might be an attractive takeover target for France's Publicis Groupe, the Wall Street Journal reported. General Electric is negotiating with Chinese suppliers to build locomotives in the country, China Daily reported. The Bush administration resumed direct diplomatic relations with Libya, ending 24 years of estrangement, Bloomberg said. Softbank, Japan's second-largest provider of high-speed Internet service, is starting a $250 million venture capital fund that will invest in similar companies based in the U.S. Hong Kong had its long-term debt rating outlook raised to stable from negative by S&P's Ratings Services, which cited improved prospects for the city to overcome its budget deficits. Gross revenue at the top 100 U.S. law firms rose 9.5% to $41.7 billion, aided by lawsuits, corporate work, increased billing rates and overhead management, the Wall Street Journal said.

Late-Night Trading
Asian Indices are -.50 to +.25% on average.
S&P 500 indicated -.03%.
NASDAQ 100 indicated +.17%.

BOTTOM LINE: I expect U.S. stocks to open mixed on falling oil prices and interest rate worries. It is unlikely the market will move substantially tomorrow ahead of events later in the week. The Portfolio is 100% net long heading into tomorrow.

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