Monday Watch

Earnings of Note
Company/Estimate
CPB/.18
CKR/.20

Splits
CVX 2-for-1
CHZ 5-for-4
POOL 3-for-2
SSP 2-for-1

Economic Data
Monthly Budget Statement for August estimated at -$40.0B versus -$76.6B in July.

Weekend Recommendations
Louis Rukeyser's Wall Street had guests that were positive on APD, WAG, BBV, CVX, BA and VZ. Wall St. Week w/Fortune had guests that were positive on DVY, ENDP, DIS, FOX, CVX, MGM, C, MLS, PFE, MDT, JNJ, GE, WFC and BR. Barron's had a positive column on MKSI and negative column on SPX. Goldman Sachs reiterated Outperform on AMGN.

Weekend News
Iraq will create an independent oil company to run its oil and gas industry and invite international companies to develop fields, Middle East Economic Survey said. Saudi Arabia boosted output from two oilfields by a third in August as the country seeks to add 800,000 barrels a day to its oil output capacity, Middle East Economic Survey said. The first U.S. military intelligence soldier to stand trial for prisoner abuse at Iraq's Abu Gharaib prison was sentenced to eight months in jail, Agence France-Presse reported. SAP AG expects to gain customers if Oracle's hostile takeover bid for PeopleSoft succeeds, CEO Kagermann told newspaper Welt am Sonntag. Iran, holder of the world's second largest gas reserves, would reject any limits on the development of its "peaceful" nuclear technology program imposed by the UN, Bloomberg said. A former Texas National Guard commander, whom CBS News cited as vouching for the authenticity of memos that suggested President Bush received preferential treatment in his service, said he believes the documents are falsified, the NY Times reported. Vodafone Group may delay so-called third-generation services because of a handset shortage, the Sunday Times reported. More than 70,000 al-Qaeda terrorists who received training in camps in Afghanistan are still at large, the Independent on Sunday said, citing Daniel Benjamin, former counter-terrorism adviser to Bill Clinton. Toys "R" Us may be driven out of business by lower-cost competition led by Wal-Mart, the NY Times reported. Bill Rammell, the first U.K. government minister to visit North Korea, said he will ask North Korea today to explain a blast last week that created a mushroom cloud, the BBC said. NTL Inc. the U.K.'s biggest cable-tv operator, plans to sell its tv and radio broadcasting business for at least $2.16 billion, the Financial Times said. Families of World Trade Center victims returned to where New York's twin towers once stood to market the third anniversary of the Sept. 11 attacks and hear parents and grandparents who lost loved ones recite the names of the 2,749 people who died there, Bloomberg said. Hurricane Ivan, with winds speeds near 155 mph, is approaching Grand Cayman and moving toward Cuba, as Florida residents brace for a third storm to hit the state in a month, Bloomberg reported. Federal Reserve Governor Susan Bies said the central bank faces "no urgency" to lift the benchmark U.S. interest rate while awaiting more evidence that economic growth is steady, Bloomberg reported. US Airways, which failed to wrest a critical $800 million in concessions from workers, filed today for Chapter 11 bankruptcy protection for the second time since 2002, Bloomberg said. Crude oil futures are up 1.9% in New York on speculation Hurricane Ivan could disrupt output from platforms in the Gulf of Mexico, Bloomberg reported. Copper futures may fall this week amid speculation that China's government may step up moves to slow the economy, curbing demand from the world's biggest user of the metal, Bloomberg said. Broadcom said third-quarter sales won't meet its previous forecast because some customers are delaying deliveries, Bloomberg reported. U.S. orders for machine tools surged 77% to $243.1 million in July over the same month a year earlier as factories boosted investment in equipment to meet rising demand, Bloomberg said.

Late-Night Trading
Asian indices are higher, +.50% to +1.50% on average.
S&P 500 indicated -.04%.
NASDAQ indicated -.14%.

BOTTOM LINE: I expect U.S. stocks to open modestly lower in the morning on fears over damage from Hurricane Ivan, rising energy prices and Broadcom's negative pre-announcement. However, equities should rise later in the day on optimism over decelerating inflation, diminishing terrorism fears, future U.S. economic growth and short-covering. The Portfolio is 125% net long heading into tomorrow.