Tuesday, September 13, 2005

Tuesday Watch

Late-Night Headlines
Bloomberg:
- Toyota Motor plans to produce as many as 400,000 hybrids next year, at least 33% more than its 2005 goal, while trying to lower the vehicles’ cost.
- Crude oil was little changed in NY after falling to a three-week low yesterday on expectations petroleum product shipments from Europe will help ease shortages caused by Hurricane Katrina as summer gasoline demand wanes.
- China, the world’s second-largest oil consuming nation, will delay purchases of the fuel for its emergency stockpile because energy prices are too high, a government official said.

Wall Street Journal:
- Medtronic CEO Collins is interested in buying some stent technology from Johnson & Johnson or Guidant Corp.
- Delta Air Lines is in talks with its pilots union about a second pay cut within a year.

AFP:
- Pakistan President Musharraf plans to build a fence on the border with Afghanistan to help prevent movements by militants who are trying to destabilize the government in Kabul.

China Business Times:
- China may introduce trading in foreign-exchange futures next year as part of preparations to let the market play a bigger role in setting the value of the yuan.

Late Buy/Sell Recommendations
Goldman Sachs:
- Reiterated Outperform on CVS, EBAY and TYC.

Banc of America:
- Upgraded GP to Buy, target $38.

Night Trading
Asian Indices are +.25% to +.50% on average.
S&P 500 indicated -.10%.
NASDAQ 100 indicated -.15%.

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
BBY/.38
DPTR/.14
LGND/-.14

Upcoming Splits
- None of note

Economic Releases
8:30 am EST
- The Producer Price Index for August is estimated to rise .7% versus a 1.0% increase in July.
- The PPI Ex Food & Energy for August is estimated to rise .1% versus a .4% increase in July.
- The Trade Deficit for July is estimated to widen to -$59.8B versus -$58.8B in June.

2:00 pm EST
- The Monthly Budget Statement for August is estimated to widen to -$49.9B versus -$41.1B in July.

BOTTOM LINE: Asian indices are higher as falling energy prices boosted exporters in the region. I expect US equities to open modestly lower on a higher-than-expected PPI reading and rally later in the afternoon on short-covering. The Portfolio is 100% net long heading into the day.

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