Monday, May 09, 2005

Monday Watch

Weekend Headlines
Bloomberg:
- US stocks are at the lowest prices relative to earnings and dividends in eight years, based on the S&P 500, and the comparison may help sustain their rebound from the lows of 2005.
- Wal-Mart Stores said May sales at US stores open at least a year are rising within its forecast.
- The US warned N. Korea that a nuclear-weapons test would be considered a "provocative act," after reports suggested the North may be ready to conduct its first detonation.
- Another aide to terrorist Abu Musab al-Zarqawi responsible for many recent suicide bombings in Iraq was captured by Iraqi security forces.

New York Times:
- Genentech's Susan Desmond-Hellmann, a cancer doctor who runs the company's drug development unit, deserves credit for a string of recent clinical trial successes, citing analysts.
- US companies including Boeing, Cisco Systems, Motorola and GM, which have considerable sales in China, would likely benefit from a revaluation of the Chinese yuan.
- Iraq's new government plans to name Sunni Arabs to the Cabinet post of minister of defense and minister of industry, which are six of the nominations set to be presented for approval tomorrow.
- Pfizer, Eli Lilly and four other drugmakers are among the biggest beneficiaries of a temporary break allowing them to bring home overseas profit at a lower tax rate.
- Verizon Communications, Time Warner Cable and other telephone and cable television providers are aiming to cut into Vonage Holdings' lead in Internet-based phone services by developing their own online services.

Washington Post:
- Senate Democratic Leader Harry Reid of Nevada called President Bush a "loser" while speaking to high school students in his home state.
- The shift of government work to outside contractors by the Bush administration has created a boom for companies that specialize in working with federal agencies.
- A remote New Mexico town is one of several locations being used in a multi billion-dollar government initiative that simulates terrorist attacks to train emergency personnel.

Rocky Mountain News:
- EchoStar Communications was ordered by a Denver jury to pay $8 million to a blind man, who was refused a customer-service job at the company.

LA Times:
- A lack of honeybees and cold, wet weather is causing a shortage of almonds, which are leading to higher prices.
- California Governor Arnold Schwarzenegger has about $2 billion more to close a gap in the state's budget because improvements in the state's economy have lead to higher tax revenue.

Dow Jones Neswires:
- OPEC won't consider another production increase because of an over-supply of oil.

Financial Times:
- Liberty Media, a US cable tv company that doubled its stake in Rupert Murdoch's News Corp. last year to almost 19%, is close to striking an agreement that will remove the threat it poses to Murdoch's control of his company.
- US lawmakers have called on President Bush to encourage China and Japan to revalue their currencies to ease pressure on US carmakers.
- The board at GM meets on Monday as the company faces pressure to restructure its North American operations and questions over what to do about its dividend.
- GE Chairman Jeff Immelt may today announce plans for the company to invest in and produce technology to reduce the environmental impact of industrial development.

Finanz & Wirtschaft:
- Alcon Inc., the world's largest eye-care company, aims to lift sales by 8% to 10% annually, CEO Cary Raymont said

International Herald Tribune:
- The Wall Street Journal, published by Dow Jones & Co., may change its European and Asian newspapers to a tabloid format from the current broadsheet in a bid to stem losses by its international editions.

Clarin:
- Argentina's government is considering plans that would spark an increase in investments by the country's energy companies

Financial Mail:
- Home Depot may acquire Kingfisher Plc, the UK's third-largest home-improvement retailer, after executives from both companies met to discuss terms.

Economic Times:
- Wal-Mart Stores is holding preliminary talks with companies in India to start its retail business in the country.

Weekend Recommendations
Bulls and Bears:
- Had guests that were positive on AXP, CMP, DELL, MSO and mixed on URBN, GS, SINA, HEW.

Forbes on Fox:
- Had guests that were positive on JRC, SEB, LBTYA, VRSN and mixed on DPH, JJZ.

Cashin' In:
- Had guests that were positive on VE, LUK, CVS, CEDC, PFE, mixed on WEN and negative on SIRI, PKZ.

Cavuto on Business:
- Had guests that were positive on COST, UPS, SBTV and mixed on WWY.

Forbes:
- Had a positive column on cell phone entertainment.

Barron's:
- Had positive comments on ETN.
- Had negative comments on IBM.

Goldman Sachs:
- Reiterated Outperform on DIS, BSX and NFP.

Night Trading
Asian indices are -1.0% to +.50% on average.
S&P 500 indicated +.10%.
NASDAQ 100 indicated +.03%.

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

Earnings of Note
Company/Estimate
AL/.56
ADBL/.00
CELL/.21
PCLN/.20
SSI/.09
TSO/.55

Splits
GNTX 2-for-1

Economic Releases
10:00 EST
- Wholesale Inventories for March are estimated to rise .7% versus a .6% gain in February.

BOTTOM LINE: Asian Indices are mixed as strength in India and Australia is being offset by weakness in China and Korea. I expect US stocks to open mixed as higher energy prices offset more economic optimism. The Portfolio is 100% net long heading into the week.

No comments: