Wednesday, September 01, 2004

Wednesday Watch

Earnings of Note

None of note.

Economic Data
Construction Spending in July estimated up .4% versus a .3% fall in June.
ISM Manufacturing for August estimated at 60.0 versus 62.0 in July.
ISM Prices Paid for August estimated at 79.0 versus 77.0 in July.
Total Vehicle Sales for August estimated at 16.8M versus 17.3M in July.
Domestic Vehicle Sales for August estimated at 13.6M versus 14.1M in July.

Goldman Sachs reiterated Outperform on AET and GDT.

Late-Night News
Asian indices are higher on optimism over corporate earnings in the region. EachNet Inc., the Chinese unit of EBay Inc., expects a surge in the number of online sellers once it starts a service allowing them to trade directly with the U.S. auction site's worldwide membership, the Financial Times reported. Samsung Electronics, the world's largest maker of computer memory chips, expects prices of the product to rise in the fourth quarter, MoneyToday reported. U.S. companies are buying back their stock at almost double the pace they did last year, the Wall Street Journal reported. Asylum applications in industrialized countries fell in the second quarter to 86,800, the lowest level in 17 years, the Financial Times reported. Metro-Goldwyn-Mayer may announce as early as next week an agreement to be acquired for as much as $5 billion, Reuters reported. The Taiwan government may alter its polices toward China next near, the Economic Daily News reported, citing Joseph Wu, chairman of Taiwan's Mainland Affairs Council. The U.S. may have to drop 27% duties on $4.6 billion of Canadian lumber shipments after a trade tribunal ruled that the U.S. lumber industry isn't being harmed by imports from Canada, Bloomberg reported. Allstate said it expected to pay $425 million of claims from Hurricane Charley, Bloomberg said. Terrorist attacks in Russia that killed 99 people in the past week will strengthen joint efforts by the U.S. and Russian governments to fight the "scourge" of terrorism, the White House said. New York police arrested at least 550 people as protesters staged marches, rallies and street theater from Ground Zero to Sotheby's auction house on the Upper East Side to dramatize opposition to President Bush, Bloomberg reported. NYC Police Commissioner Raymond Kelly has said he expects a "major" unauthorized protest Thursday, Bloomberg said. Israeli Prime Minister Sharon will order a military offensive in the West Bank city of Hebron in response to two suicide bombings that killed at least 16 people in the Israeli city of Beersheba, Haaretz reported. Dow Chemical, the biggest U.S. chemical maker, forecast its China sales will grow 25% to exceed $2 billion this year, Bloomberg reported.

Late-Night Trading
Asian Indices are +.50% to +1.25% on average.
S&P 500 indicated +.10%.
NASDAQ 100 indicated +.07%

BOTTOM LINE: I expect U.S. equities to open higher in the morning on gains in Asia and a follow-through from today's strong close. The Portfolio is 100% net long. I will likely increase market exposure on any unexpected morning weakness related to economic reports.

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