Earnings of Note
Company/Estimate
MO/1.28
BCC/.29
CDWC/.66
CNF/.58
EMC/.08
ET/.19
CYMI/.29
ESV/.09
F/.50
FRX/.56
GNTX/.38
N/.85
MOT/.17
MCHP/.26
LLTC/.30
SUNW/-.04
TASR/.13
TXN/.25
WFC/1.04
Splits
None of note.
Economic Data
Housing Starts for June estimated at 1990K versus 1967K in May.
Building Permits for June estimated at 2000K versus 2097K in May.
Greenspan begins testimony to Congress.
Recommendations
CHTR cut to Reduce at UBS, target $3. China's telecom industry raised to Overweight at CSFB. AUO cut to Sell from Buy at Merrill Lynch. Goldman Sachs reiterated Outperform on IR, ALL, GLW, TPX, CEN and RE.
Late-Night News
Asian indices are mostly lower on concerns that slowing growth in China and the U.S. will further hurt technology shares in the region. China will tighten control on churches in Shanghai, extending surveillance for the first time to include the activities of foreigners, South China Morning Post reported. Israeli Prime Minister Sharon is unwelcome in France until he explains comments calling on French Jews to leave because of increased anti-Semitism, Agence France-Presse said, citing President Chirac. J.P. Morgan Chase is in final talks to buy Egg Plc, the U.K. internet bank, for $2.61 billion, the Financial Times said. Former U.S. National Security Adviser for the Clinton administration Sandy Berger is being investigated for taking home highly classified terror documents, the AP reported. Martha Stewart wants to write a how-to book about her legal experiences, she said in an interview with CNN. China's curbs on short-term lending are too tight and are causing difficulties to companies, the official Economic Daily reported, citing the deputy director of the National Bureau of Statistics. Juan del Olmo, the Spanish judge investigating the March 11 terrorist attacks in Madrid, said support cells that helped with the attacks may be taking over operations in the country, the AP reported. China plans to let banks convert mortgage loans and non-performing assets into tradable securities as part of plans to develop the country's bond market, the China Securities Journal reported. Oil-tanker rates for shipping crude oil from the Middle East to Asia surged to their highest in almost three years as near-record oil production from OPEC spurred demand for vessels, Bloomberg said. Striking workers shut LG-Caltex Oil's oil refinery, which accounts for 28% of South Korean fuel production, reducing supplies to plastics makers, transport companies and power stations, Bloomberg reported.
Late-Night Trading
Asian Indices are -1.75% to -.75% on average.
S&P 500 indicated -.06%.
NASDAQ 100 indicated -.07%.
BOTTOM LINE: I expect U.S. stocks to open modestly lower in the morning on weakness in Asia. However, I will likely add to market exposure on any extreme weakness as Greenspan's testimony, better earnings reports and a continuation of today's oversold technical bounce in technology shares boosts the major indices later in the day. The Portfolio is 50% net long heading into tomorrow.
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