Thursday, July 13, 2006

Friday Watch

Late-Night Headlines
Bloomberg:
- Comcast(CMCSA) and Time Warner(TWX) won approval from the FCC to buy Adelphia Communications for $17.6 billion in the largest US bankruptcy sale.
- India’s airlines, Asia’s biggest customers for Airbus SAS and Boeing(BA) last year, may slow or even cancel orders as they face difficulty raising funds amid mounting losses.
- The US Attorney in San Francisco became the first federal prosecutor to publicly confirm he’s probing companies that may have committed fraud by altering grant dates of stock options, announcing creation of a task force to examine the matter.
- New York Attorney General Eliot Spitzer sued 8 memory chip makers, including Micro Technology(MU), for conspiring to fix prices, claiming they added $1 billion to chip costs while driving up retail prices for personal computers and other electronics.
- Samsung Electronics posted an 11% drop in second-quarter profit after cutting handset prices to compete against rivals Nokia Oyj(NOK) and Motorola(MOT).
- Forest Labs’(FRX) patent for the antidepressant Lexapro is valid, a federal judge ruled.
- Lehman Brothers Holdings(LEH) advised clients to reduce bets on emerging-market currencies.
- Crude oil rose above $78 a barrel in NY for the first time as escalating violence in the Middle East and disruptions in Nigeria prompted speculators to increase their bets on rising energy prices.

Wall Street Journal:
- Nucor Corp.(NUE) and domestic competitors want the nation’s trade officials to take action against China for continuing to subsidize its steelmakers.

London-based Times:
- Liz Claiborne(LIZ), which owns Lucky Brand and Mexx stores, plans to expand its presence in the UK and Europe by spending up to $400 million in brands and acquisitions, citing CEO Charron.

AP:
- The Massachusetts Turnpike Authority found the Boston tunnel system in which a woman was killed by falling debris has at least 230 other points where bolts are lossening.

USA Today:
- As many as 40% of new or recently converted condominiums in cities such as Las Vegas and Phoenix and in parts of Florida will be turned into apartments in 18 months.

Late Buy/Sell Recommendations
Citigroup:
- Upgraded (IP) to Buy, target $38.
- Upgraded (BKI) to Buy, target $10.
- Reiterated Buy on (MOT), target $29.

Business Week:
- Abercrombie & Fitch(ANF) may rise as much as 38% because earnings may grow on higher sales from purchases by affluent teens, citing Buckingham Research’s Barbara Wyckoff.
- Southern Union(SUG), which owns 10,000 miles of pipeline that moves natural gas from the southern US to the Great Lakes region, may rise as much as 50% after a shareholder requested that the company be sold, citing Winchester Capital Advisors’ Benjamin Segal.

Night Trading
Asian Indices are -2.0% to -1.25% on average.
S&P 500 indicated -.30%.
NASDAQ 100 indicated -.47%.

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
- (EMC)/.12
- (GE)/.47
- (RF)/.64
- (XTO)/.83

Upcoming Splits
- (HAL) 2-for-1
- (LOGI) 2-for-1
- (TEX) 2-for-1
- (XRAY) 2-for-1
- (INFY) 2-for-1

Economic Releases
8:30 am EST
- The Import Price Index for June is estimated to rise .2% versus 1.6% increase in May.
- Advance Retail Sales for June are estimated to rise .4% versus a .1% increase in May.
- Retail Sales Less Autos for June are estimated to rise .4% versus a .5% increase in May.

9:45 am EST
- The Preliminary Univ. of Mich. Consumer Confidence reading for July is estimated to rise to 85.5 versus a reading of 84.9 in June.

10:00 am EST
- Business Inventories for May are estimated to rise .4% versus a .4% increase in April.

BOTTOM LINE: Asian indices are sharply lower, weighed down by exporting stocks in the region. I expect US equities to open lower and to rally into the afternoon, finishing mixed. The Portfolio is 50% net long heading into the day.

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