Friday Watch

Earnings of Note
Company/Estimate
None of note.

Splits
None of note.

Economic Data
Unemployment Rate for August estimated at 5.5% versus 5.5% in July.
Average Hourly Earnings for August estimated up .2% versus a .3% increase in July.
Change in Non-farm Payrolls estimated at 150K versus 32K in July.
Change in Manufacturing Payrolls estimated at 15K versus 10K in July.
Average Weekly Hours for August estimated at 33.7 versus 33.7 in July.
ISM Non-Manufacturing for August estimated at 62.0 versus 64.8 in July.

Recommendations
None of note.

Late-Night News
Asian indices are lower on declines in technology shares in the region after a disappointing report by Intel after the U.S. close. A poll of likely voters just released by Zogby International shows President Bush with a 46-44 lead over Senator Kerry. Kerry led Bush, 48-43 in the previous poll, Bloomberg said. A judge refused a request by Google and Overture search engines to dismiss a lawsuit by Geico insurance that challenges the companies' advertising sales practices, Cnet News reported. China forecast a sevenfold increase in the number of vehicles on the nation's streets to 140 million by 2010, the state-run Xinhua news agency said. China's economic growth may slow to between 7-8% this year as the government limits investment in industries including steel and cement, Vice Finance Minister Li Yong said. President Bush said he will "never relent" in the war against terror, and set new domestic goals including a simplified U.S. tax code and more federal aid to communities that have lost jobs, Bloomberg reported. A gun battle erupted at dawn around a school in southern Russia where terrorists are holding hostages, including women and children, AFP reported. The number of hostages is around 1500, rather than the 300 officially reported, an unidentified women released yesterday told Izvestiya daily. Hurricane Frances, which is expected to be the costliest storm to hit the U.S. in more than a decade, contined its approach toward Florida, forcing about 2.5 million people to flee their homes, Bloomberg said.

Late-Night Trading
Asian Indices are -1.0% to unch. on average.
S&P 500 indicated -.46%.
NASDAQ 100 indicated -1.07%

BOTTOM LINE: I expect U.S. equities to open lower in the morning on weakness in technology shares and worries over slowing job growth. However, I expect stocks to mount a rally later in the day on pro-business political rhetoric, diminishing domestic terrorism fears, stabilizing energy prices, falling interest rates and optimism over a reacceleration of economic growth during the fourth quarter. The Portfolio is 125% net long heading into tomorrow.