Monday Watch

Earnings of Note
Company/Estimate
CEN/.19
KMRT/.14
LBTYA/-.24
LOW/.90
SYY/.45

Splits
QCOM 2-for-1

Economic Data
Empire Manufacturing for August estimated at 32.3 versus 36.54 in July.
NAHB Housing Market Index for August estimated at 66 versus 67 in July.

Weekend Recommendations
Barron's had positive comments on TWX, EMC, EK and negative comments on HPQ. Goldman Sachs reiterated Outperform on MRVL, EBAY and ALL. Bloomberg has a positive column by Caroline Baum on the exaggerated death of the U.S. consumer.

Weekend News
China sold 15.8 million cell phones in the second quarter, down 23 percent from a year earlier, Shanghai Daily said. The U.S. bipartisan Commission for Presidential Debates named the moderators for four events it will hold in late September and early October, the NY Times reported. The commission said Jim Lehrer of PBS, Bob Schieffer of CBS and Charles Gibson of ABC will each moderate one of the three presidential debates. PBS's Gwen Ifill will moderate the vice-presidential debate. Al-Qaeda is regrouping in Pakistan and planning attacks in the U.S. with a "motley collection of old hands and recent recruits," the Washington Post reported. President Bush on Monday will announce plans to transfer 70,000 to 100,000 troops from Europe and Asia as the U.S. military shifts its focus to the war on terrorism from the cold war, the Washington Post said. OAO Yukos Oil Co.'s share price is being manipulated by senior Kremlin officials for their own benefit, the Business newspaper reported. Iraq's Prime Minister Ayad Allawi ordered troops from the country's newly formed army to lead an attack against Shiite Muslim militia in Najaf, the Washington Post reported. Lawyers for Golan Cipel, the Israeli who was given $110,000-a-year job by New Jersey Democratic Governor James McGreevey, said Cibel is heterosexual and didn't consent to any intimate contact with McGreevey, the NY Times said. New Jersey residents' approval of Governor McGreevey actually rose 2% to 45% after a recent flurry of scandalous allegations, according to the Star-Ledger. OAO Yukos Oil may "very likely" file for bankruptcy in the next few days unless Russia eases the pressure it's been applying, the Financial Times said. Posco's record earnings may not last until the first half of next year as the Korean steelmaker faces a number of threats such as higher oil prices, the Seoul Economic Daily reported. U.S. gas prices fell about 4.9 cents in the past three weeks, the AP reported, citing the Lundberg Survey of about 8,000 gas stations. Electronic Arts may be interested in buying U.K. publisher Eidos Plc as part of its European expansion, the Financial Times reported. Caterpillar workers rejected a six-year contract proposal, the AP reported. Allstate Corp., State Farm Mutual and other insurers may lose about $5 billion from Hurricane Charley, less than initially forecast, Bloomberg said. A weakened Hurricane Charley, the most powerful storm to hit the U.S. in 12 years, left Florida with deaths and damage estimated in the billions of dollars as it headed for the South Carolina coast this morning, Bloomberg reported. Crude oil prices may fall to $30/bbl. next year as concerns about supply disruptions in Iraq, Russia and Venezuela ease and OPEC boosts output, the group's President said. China will provide low-interest loans to cable companies to convert 100 million urban households to digital television by 2008, Bloomberg said. Crude oil futures in New York rose to a record on concern violence may spread in Venezuela, the fourth-largest exporter to the U.S., as the nation votes in a referendum that could remove President Chavez from office, Bloomberg reported.

Late-Night Trading
Asian indices are lower, -1.0% to -.50% on average.
S&P 500 indicated -.26%.
NASDAQ 100 indicated -.27%.

BOTTOM LINE: I expect U.S. stocks to open modestly lower in the morning on worries over Venezuelan political unrest and terrorism fears. However, equities will likely rally higher by day's end on short-covering and bargain-hunting. The Portfolio is 25% net long heading into tomorrow.