Friday Watch

Earnings of Note
Company/Estimate
CVTX/-1.16
HAS/.07
JBHT/.45
KEY/.56
NCC/.69
NVR/13.88
SMSI/.01
VANS/-.11
GWW/.68
 
Splits
MGPI 2-for-1
SWBT 2-for-1 
 
Economic Data
Consumer Price Index for June estimated +.2% versus +.6% in May.
CPI Ex Food & Energy for June estimate +.2% versus +.2% in May.
Preliminary Univ. of Michigan Consumer Confidence for July estimated at 97.0 versus 95.6 in June.
 
Recommendations
Goldman Sachs reiterated Outperform on PFE and Underperform on DJ.  Shares of DOW will increase by more than 20% because of rising prices from less-than-expected supply from Middle East competitors, Business Week reported.  ENCY may get a boost when the drug developer releases new trial results early next year, Business Week reported.
 
Late-Night News
Asian indices are mostly higher, led by Chinese and Indian shares.  Henry Blodget, Merrill Lynch's former Internet analyst, has established Cherry Hill Research in New York to provide industry analysis and consulting services, Business Week reported.  ABN Amro, Citigroup and Merrill Lynch are in a final competition to arrange the sale of Jinro, South Korea's largest liquor maker, Korea Economic Daily said.  China will soon allow insurance companies to invest up to 5% of their total assets directly in the stock market, Shanghai Securities News reported.  Sun Microsystems CEO McNealy is being blamed by current and former company executives for the decline of Sun, which has lost 86% of its value since the end of 2000, Business Week reported.  The U.K. and European biotechnology companies are lagging the U.S. on almost every financial measure, the Financial Times said.  A wildfire that has burned 8,500 acres of dry brush, grass and timber near Carson City, Nevada, is threatening 550 homes and businesses, the AP reported.  Telewest Global stock will start U.S. trading on Monday, ending the U.K. cable operator's two-year upheaval that consumed two chief executives and will convert 7.4 billion of debt into new equity, Bloomberg reported.  The U.S. International Trade Commission ruled that U.S. makers of plastic bags and ironing boards are being hurt by surging imports from China, a final decision that will result in tariffs on those goods, Bloomberg said.  The U.S. Senate agreed to sweeping changes for the cigarette industry, granting the FDA the power to regulate tobacco, and approving a $12 billion industry-financed buyout for farmers, Bloomberg said.  China's economic growth unexpectedly slowed in the second quarter, suggesting government lending curbs are cooling the world's fastest-growing major economy, Bloomberg reported.  The U.S. House of Representatives voted to cut financial aid to Saudi Arabia, as lawmakers registered their protest over the level of cooperation on terrorism form the world's largest oil producer, Bloomberg reported.  The U.S. dollar fell from its strongest in a month against the yen and shed gains against the euro after Fed Governor Bies said the U.S. currency "needs to adjust" to the current-account deficit, Bloomberg reported.
 
Late-Night Trading
Asian Indices are unch. to +1.0% on average.
S&P 500 indicated +.19%.
NASDAQ 100 indicated +.39%.
 
BOTTOM LINE:  I expect U.S. stocks to open modestly higher in the morning on receding inflation fears, better earnings reports and strength in Asia.  The Portfolio is market neutral heading into tomorrow.