Tuesday, January 25, 2005

Tuesday Watch

Late-Night News
Asian indices are mixed as strength in commodity-related shares is being offset by weakness in tech stocks in the region. Bill Gates will donate $750 million to help children in developing countries receive access to life-saving vaccines and immunizations, the London-based Times said. China's economy expanded 9.5% last year, Xinhua News Agency reported. SEC Chairman Donaldson may today signal that the US will ease listing rules for international companies who want to avoid the costs involved in meeting corporate governance rules, the Financial Times said. The European Union is preparing to lift its 15-year-old arms embargo against China and replace it with a code of conduct that regulates all weapons sales, the AP reported, citing UK Foreign Secretary Jack Straw. Equipping 6,800 US commercial airplanes with antimissile defense systems would cost $11 billion, plus $2.1 billion a year in operating expenses, the NY Times reported. Hedge funds are beginning to play a more assertive role in shaping mergers and acquisitions, especially in Europe, the Wall Street Journal reported.

Late Recommendations
Goldman Sachs reiterated Outperform on MO, TPX, MDT, X, AMGN and Underperform on CR.

Night Trading
Asian Indices are -.75%. to +.25% on average.
S&P 500 indicated +.14%.
NASDAQ 100 indicated +.13%.

Morning Preview
US AM Market Call
NASDAQ 100 Pre-Market Indicator/Heat Map
Pre-market Commentary
Before the Bell CNBC Video(bottom right)
Asian Indices
European Indices
Top 20 Business Stories
In Play
Bond Ticker
Analyst Actions
Macro Calls
CNBC Guest Schedule

Earnings of Note
Company/Estimate
ADTN/.17
AKS/.66
ABC/.63
AV/.18
BLS/.41
EAT/.45
BNI/.78
CTX/1.88
COH/.68
CA/.19
GLW/.12
EMC/.12
ERTS/1.18
FLEX/.19
INSP/.40
JNJ/.64
MER/1.11
MRK/.50
SLB/.56
TXN/.26

Splits
None of note.

Economic Data
Consumer Confidence for January estimated to fall to 101.0 versus 102.3 in December.
Existing Home Sales for December estimated to decline to 6.8M versus 6.94M in November.

BOTTOM LINE: I expect US equities to open mixed-to-higher in the morning on a bounce after today's sell-off. However, stocks will likely weaken again later in the day on continuing worries over slowing global growth, violence in Iraq and earnings. The Portfolio is market neutral heading into tomorrow.

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