Wednesday Watch

Earnings of Note
Company/Estimate
AM/.00
ARRO/.34
BLUD/.14
MKC/.32
MU/.20
RECN/.32

Splits
CATY 2-for-1

Economic Data
Final 2Q GDP estimated +3.0% versus a prior estimate of +2.8%.
Final 2Q Personal Consumption estimated +1.6% versus a prior estimate of +1.6%.
Final 2Q GDP Price Deflator estimated +3.2% versus a prior estimate of +3.2%.

Recommendations
Goldman Sachs reiterated Outperform on DVN, SLR, AMT, CLX and AMGN.

Late-Night News
Asian indices are quietly mixed as strength in Australian shares is being offset by weakness in Hong Kong. The U.S. may bring North Korea before the United Nations Security Council if the communist country doesn't continue talks to dismantle its nuclear programs, Agence France-Presse reported. Funds owned by AMP Ltd., Australia's largest life insurer, raised their stake in Fisher & Paykel Appliances Holdings to 5.2%, betting that U.S. distribution and technology accords will bolster earnings, Bloomberg reported. Toyota Motor and Nissan Motor may start production in Russia to boost their market share in what is expected to be the world's third-fastest growing car market over the next four years, Bloomberg said. China's university graduates face increasing pressure to find jobs, with the number of students expected to complete their degrees in 2005 rising 21% from this year to 3.38 million, the official Xinhua news agency said. The dollar fell against the yen in Asia after Federal Reserve Bank of Kansas President Hoenig said a lower dollar helped with the U.S. trade deficit and that the news on inflation is good, Bloomberg reported. Taiwan may have the technology to mass produce mid-range missiles capable of striking Shanghai in two years, a lawmaker said, adding teeth to Premier Yu Shyi-kun's warning that the island will retaliate if China attacks, Bloomberg reported. American International Group Chairman Greenberg said he may buy U.S. property and casualty competitors stung by losses, Bloomberg said.

Late-Night Trading
Asian Indices are -.25% to +.50% on average.
S&P 500 indicated +.01%.
NASDAQ 100 indicated +.04%

BOTTOM LINE: I expect U.S. equities to open modestly higher in the morning on a continuation of today's rally. I will closely watch the market's reaction to the energy inventory data before shifting the Portfolio's market exposure. The Portfolio is 100% net long heading into tomorrow.