Wednesday, May 11, 2005

Wednesday Watch

Late-Night Headlines
Bloomberg:
- Warner Music Group raised $554.2 million in an IPO after cutting the price of the shares to attract investors.
- Australia's $16.8 billion of income tax cuts announced in yesterday's budget will spur economic growth without stoking inflation or prompting the central bank to raise interest rates, executives and economists said.
- The Canadian dollar had the biggest fluctuation of any currency, falling in Asia after Parliament passed a motion calling on Prime Minister Paul Martin to resign.
- Wal-Mart Stores CEO Scott is adding upscale household goods and self-service checkout lines to revive same-store sales to fend off more-profitable Target Corp.

Fox News:
- Arab Bank Plc is the target of an FBI criminal investigation for suspicion of moving funds for alleged terrorists.

Financial Times:
- Apollo Management LP, the NY-based buyout firm founded by former Drexel Burnham Lambert banker Leon Black, plans to raise $6 billion for its next buy-out fund.

Korea Economic Daily:
- North Korea has shown no signs it is preparing for nuclear tests, citing an unidentified South Korean government official.

China Daily:
- China's media regulator awarded the country's first license for Internet protocol television and mobile-phone television programs to Shanghai TV Station, a unit of state-owned Shanghai Media Group.

Late Buy/Sell Recommendations
Goldman Sachs:
- Reiterated Outperform on NFP, CSCO and YHOO.
- Reiterated Underperform on NFB, SIAL and RNWK.

Night Trading
Asian Indices are -.50% to -.25% on average.
S&P 500 indicated -.06%.
NASDAQ 100 indicated -.21%.

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/EPS Estimate
FD/.67
MYL/.17
URI/.27
DIS/.32

Splits
None of note

Economic Releases
8:30 EST
- The Trade Balance for March is estimated to fall to -$61.9B versus -$61.0B in February.

2:00 EST
- The Monthly Budget Statement for April is estimated to rise to $60.0B versus $17.6B in March.

BOTTOM LINE: Asian indices are lower on renewed worries about slowing global growth. I expect US equities to open modestly lower on worries over slowing global growth and hedge fund troubles. However, stocks may gain ground later in the day on short-covering, an improving budget deficit and lower energy prices. The Portfolio is 75% net long heading into tomorrow.

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