Monday Watch

Earnings of Note
Company/Estimate
ACDO/.39
DY/.35
CEN/.19

Splits
BAC 2-for-1

Economic Data
Personal Income for July estimated up .5% versus an increase of .2% in June.
Personal Spending for July estimated up .7% versus a decline of .7% in June.
PCE Deflator(YoY) for July estimated up 2.4% versus a 2.5% increase in June.
PCE Core(YoY) for July estimated up 1.5% versus a 1.5% increase in June.

Weekend Recommendations
Forbes on Fox had guests that were positive on COF, PVN, TGT and mixed on INTC, FPL. Bulls and Bears had guests that were positive on IDA, SU, HDWR, DPZ, NOK, GE, WTW, AMGN, IVX and negative on LLY, KKD. Cashin' In had guests that were positive on CCMP, CPWM, BAC, CRM and PRX. Wall St. Week w/Fortune had guests that were positive on NYT, YHOO, DCLK, SSP, GCI, INTC, IDTI, TM, GM, F, DD, TRFX, AMSWA and negative on CP, JPM. Barron's had positive columns on OSIS, ASE, VICL, DRXR, LOJN, XRAY and negative columns on CCU and CDL. Goldman Sachs reiterated Attractive view of Lodging and Cruise sectors. Goldman reiterated Outperform on EBAY.

Weekend News
Audi AG, which makes luxury cars for Volkswagen AG, is considering a plan to produce vehicles in the U.S. or Mexico to help reduce the risk of currency fluctuations, Die Welt reported. Russian investigators found traces of explosives in the wreckage of the second plane that crashed this week in Russia, Agence France-Presse reported. Wal-Mart canceled plans to build its first store in Washington, D.C., the Washington Post reported. Two men were arrested yesterday in connection with a plot to detonate a bomb on a New York City subway at the Herald Square station, the New York Post reported. The California state Legislature approved a package of bills allowing the importation of less expensive drugs from Canada, the LA Times reported. French government officials called for the release of two journalists kidnapped in Iraq by a group demanding the France rescind a ban on religious garb in the nation's schools, Agence France-Presse said. Brandsonsale.com, an Internet toy and clothing retailer, said "pimp" suits and "ho" dresses for children are among its best sellers for Halloween this year, the Washington Post reported. Target plans to spend $100 million to build a warehouse in DeKalb, Illinois, by 2006, Crain's Chicago Business said. Young adults are growing "bored" of sexually explicit ads and could be better targeted by more wholesome marketing methods, the Financial Times said, citing a survey by WPP Group. UBS AG, Europe's biggest bank by assets, plans to buy Charles Schwab's institutional research and trading unit for $265 million, the Wall Street Journal reported. Sanofi-Aventis SA, the world's third biggest drugmaker, said its experimental anti-craving pill, rimonabant, helped obese patients lose about 19 pounds and trim 3.5 inches from their waists in a study, Bloomberg reported. U.S. weather forecasters urged those in the northern Lesser Antilles and northeastern Caribbean Sea to "closely monitor" the progress of Hurricane Frances, which may become a Category 5 storm within 24 hours, Bloomberg said. Senator John McCain said Senator Kerry's anti-war activities after he returned from Vietnam are an appropriate subject for political debate, Bloomberg reported. Europe is slipping further behind the U.S. in competitiveness as the leaders of Germany, France and Italy, weakened by election setbacks, fail to take advantage of the economic recovery to reduce taxes and over-regulation, Bloomberg reported.

Late-Night Trading
Asian indices are mixed, -.50% to +.25% on average.
S&P 500 indicated -.23%.
NASDAQ indicated -.14%.

BOTTOM LINE: I expect U.S. stock to open modestly lower in the morning on fears over terrorism during the Republican Convention. However, equities should rise later in the day on short-covering and optimism over the recent fall in energy prices. The Portfolio is 125% net long heading into tomorrow.