Sunday, July 02, 2006

Monday Watch

Weekend Headlines
Bloomberg:
- Wal-Mart Stores(WMT) said June same-store sales in the US rose 1.2%, the slowest monthly rate since April 2005.
- Credit Suisse Group and Morgan Stanley say the storm has passed for stock investors. They recommend that investors increase their stockholdings while reducing cash. The firms point to bullish signs such as corporate stock buybacks and even cite bearish indicators that are so pessimistic they’re cause for optimism.
- Japan’s largest companies plan to increase investment at the fastest pace in almost 16 years, strengthening the central bank’s base for raising interest rates from close to zero percent.
- Saddam Hussein’s oldest daughter, named by Iraq’s government on a list of the 41 most wanted Iraqis, is living in Jordan as a guest of King Abdullah II, Jordan’s official news agency Petra said.
- Texas Instruments(TXN) and Broadcom(BRCM) filed a complaint to South Korea’s antitrust regulator, claiming that Qualcomm(QCOM) unfairly hindered competition.

Barron’s:
- Ned Davis, president of Ned Davis Research, said the economy may grow more than 3.5% in the next year on low inflation rates.

Wall Street Journal:
- General Motors’(GM) board will meet on a conference call next week after the US July 4 holiday to discuss Kirk Kerkorian’s proposal about allying with Nissan Motor and Renault SA.

NY Times:
- The US government showed undercover videotapes of some of the seven men alleged to have been plotting to blow up the Sears Tower in Chicago and other buildings in Miami.

Washington Post:
- Chinese President Hu Jintao said in a speech that widespread corruption might diminish the Chinese Communist Party’s popular legitimacy and weaken its grip on power.
- The US government has paid at least $1.3 billion in agriculture subsidies since 2000 to people who don’t farm, citing an analysis of government records.
- US and Canadian police agencies are increasingly working together through cross-border investigations, shared intelligence and joint patrols along the Great Lakes.

San Francisco Chronicle:
- San Francisco may become the first US city to offer universal healthcare by offering its health plan for low-income people to all uninsured residents. Mayor Gavin Newsom wants the system opened to residents of any income, immigration status or medical condition.

CRN:
- Apple Computer’s(AAPL) Next Big Thing: Home Entertainment

AP:
- Osama bin Laden told insurgents in Iraq to keep fighting against the US-led coalition in a new message posted on the Internet.

London Daily Telegraph:
- Prostate cancer patients may benefit from drinking eight ounces of pomegranate juice daily, citing a Univ. of Cal. study.

Xinhua News Agency:
- Beijing has banned businesses from setting up offices in residential buildings to cool property prices.
- Chinese companies in more than 30 industries had losses or “marginal profits” in the first five months of the year because of rising costs of raw materials and fuel, citing the director of the National Bureau of Statistics.

Etemadd:
- Venezuela’s President Hugo Chavez will visit Iran, North Korea and Vietnam in late July, citing the Venezuelan Foreign Ministry.

WirtschaftsWoche:
- Hewlett-Packard(HPQ) plans to make “targeted” acquisitions to complement its businesses, citing CEO Hurd.

Sunday Times:
- The European Union may ban alcohol advertising, including sponsorship for sports events, before 9 pm.

Weekend Recommendations
Barron's:
- Had positive comments on (C) and (NEM).

Night Trading
Asian indices are -.25% to +.25% on average.
S&P 500 indicated +.26%
NASDAQ 100 indicated +.27%.

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
- None of note

Upcoming Splits
- (UIL) 5-for-3

Economic Releases
10:00 am EST
- Construction Spending for May is estimated to rise .2% versus a .1% decline in April.
- ISM Manufacturing for June is estimated to rise to 55.0 versus a reading of 54.4 in May.
- ISM Prices Paid for June is estimated to fall to 75.0 versus a reading of 77.0 in May.

Afternoon:
- Total Vehicle Sales for June are estimated to rise to 16.4M versus 16.1M in May.
- Domestic Vehicle Sales for June rose to 12.6M versus 12.4M in May.

BOTTOM LINE: Asian Indices are mostly higher, boosted by financial shares in the region. I expect US stocks to open modestly higher and to maintain gains into the afternoon. The Portfolio is 100% net long heading into the week.

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