Monday, November 22, 2004

Monday Watch

Earnings of Note
Company/Estimate
BRCD/.06
CPB/.52
KKD/.13
TIVO/-.43
TOY/-.15

Splits
None of note.

Economic Data
None of note.

Weekend Recommendations
Louis Rukeyser's Wall Street had guests that were positive on MMM, CSCO, WFMI, GE, SAP, INTC, MSFT, DISH and AIG. Forbes on Fox had guests that were positive on JWN, COH, GM and mixed on FD, MAY, ACE. Cashin' In had guests that were positive on GWR, MEE, CWT, PNX, PKZ, ELN, FRO, negative on AIG, KKD and mixed on EV. Barron's had positive comments on JNJ, PFE, MRK, NOC, HL, HZO, NEM and SAP. Goldman Sachs reiterated Outperform on BBY, CAL, EBAY and Underperform on BA.

Weekend News
The Paris Club group of creditor governments agreed to write off about 80% of Iraqi debt, Agence France-Presse reported. Rofin-Sinar Technologies, a laser maker trading in Germany and the U.S., may make acquisitions as it adds products and expands in markets including Asia, CEO Wirth told the Boersen-Zeitung. Television production in the LA-area has risen 29% this year from the year-earlier period, helped by an increase in reality and cable-tv shows, the LA Times reported. European leaders have appeared optimistic to news Condoleezza Rice will replace Colin Powell as U.S. secretary of state, the NY Times reported. Coal production is increasing amid U.S. concern supplies of natural gas, electricity's other main fuel source, won't keep pace with demand, the NY Times reported. U.S. casino companies, such as Las Vegas Sands Inc., boosted by strong results in their Las Vegas markets, will likely perform even better as more ventures open in Macau and draw gamblers from Asia, Barron's reported. Mobile phone companies' revenue from carrying voice calls will fall 70% to 80% by 2010 as customers switch to using cheaper voice over Internet technology, the Sunday Times newspaper reported. State governments are seeking to cut the costs of purchasing drugs for Medicaid patients through a variety of initiatives, setting the stage for a showdown with the pharmaceutical industry, the NY Times reported. Ford sold 5,500 of its new model Focus car in Germany in the first seven days it was for sale, Automobilwoche said. The Port of Seattle's cargo volume is soaring this year and may set a record because of traffic congestion at Southern California waterway entries and the nation's trade with China, the Seattle Times said. More than 700 union officials representing New Jersey and Pennsylvania workers were paid more than $100,000 last year, the Philadelphia Inquirer said. NTT DoCoMo is focused on reviving its flagging stock price with a new pricing plan and technological innovations, Barron's reported. Foreigners have been taking advantage of a weaker dollar to buy up NYC real estate, reported Crain's New York Business. A slowdown in China's economy may benefit steelmakers because it would make over-investment in new projects less likely, the Financial Times reported. China, which has more mobile phone subscribers than the U.S. population, may fuel growth in the telecom industry as the country upgrades its networks, Bloomberg reported. President Bush said he is committed to a "strong dollar" and cutting the U.S. budget deficit, Bloomberg said. China, the world's largest coal producer and user, plans to spend $10 billion over the next decade on plants that turn coal into motor fuel, Bloomberg reported. Oil inventories should begin to rise soon, as refinery capacity comes back online, resulting in falling crude prices, the EIA said. General Electric won a contract valued at $200 million over eight years to provide digital imaging systems to more than 70 U.K. National Health Service hospitals and clinics, the Wall Street Journal reported.

Late-Night Trading
Asian indices are lower, -2.25% to -.50% on average.
S&P 500 indicated -.28%.
NASDAQ 100 indicated -.51%.

BOTTOM LINE: I expect U.S. stocks to open modestly lower in the morning on continued profit taking, losses in Asia and rising energy prices. The Portfolio is 75% net long heading into tomorrow.

No comments: