Thursday, August 03, 2006

Friday Watch

Late-Night Headlines
Bloomberg:
- Israeli Defense Minister Amir Peretz ordered the army late today to advance into southern Lebanon up to the Litani River after almost 500 rockets fell on Israel in the past two days, killing nine civians.
- Many of the rockets Hezbollah is firing into Israel are made in Iran, demonstrating the Islamic republic’s success in copying Chinese and Russian technology to build its own weapons industry.
- The benchmark US 10-year Treasury yield touched the lowest since April on speculation inflation would decelerate after a private report showed growth in the service industries slowed for a third month.
- Apple Computer(AAPL) said it will probably restate earnings after an internal investigation into options backdating found additional suspicious grants.
- Copper prices in Shanghai fell after charts some traders use to predict price moves gave sell signals, indicating more declines may be in store.
- Crude oil fell in NY for a second day as Tropical Storm Chris dissipated.
- Chicago Mercantile Exchange Holdings(CME) will join the S&P 500 Index next week.

NY Times:
- Campaign donors in New York state have used limited liability corporations, or LLCs, to legally get around a prohibition against individuals giving more than $50,100 to statewide candidates. Eliot Spitzer, who is running for governor, received money from LLCs connected to hedge fund managers.

Business Week:
- Digg.com, the 24th-most popular US Web site, is worth about $200 million.

Nation:
- PTT Pcl, a Thai oil and gas company, is studying the start of large-scale production of bio-diesel as a cheap alternative to diesel refined from imported crude oil, citing Energy Minister Viset Choopiban.

Xinhua News:
- French Foreign Minister Philippe Douste-Blazy said he believes “more than ever” a durable ceasefire between Lebanon’s Hezbollah and Israel would come soon.

Late Buy/Sell Recommendations
Goldman Sachs:
- Rated (STP) Outperform, target $34.95.

Citigroup:
- Rated (DKS) Buy, target $47.

Business Week:
- Shares of Norfolk Southern(NSC) may rise 26% in the next year.
- Radiation Therapy Services(RTXS) may rise 28% within a year because fears that Medicare reimbursements would be cut, which caused shares to fall this year, were “overblown.”

Night Trading
Asian Indices are -.25% to +.50% on average.
S&P 500 indicated -.07%.
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
- (CRDN)/1.05
- (GT)/.18
- (MXIM)/.48
- (MEDX)/-.37
- (MHS)/.61
- (OXY)/2.79
- (OMG)/.80

Upcoming Splits
- (FUL) 2-for-1

Economic Releases
8:30 am EST
- The Change in Non-farm Payrolls for July is estimated at 144K versus 121K in June.
- The Change in Manufacturing Payrolls for July is estimated at 5K versus 15K in June.
- The Unemployment Rate for July is estimated at 4.6% versus 4.6% in June.
- Average Hourly Earnings for July are estimated to rise .3% versus a .5% increase in June.

BOTTOM LINE: Asian indices are mostly higher, boosted by financial and real estate stocks in the region. I expect US equities to open mixed and to rally into the afternoon, finishing modestly higher. The Portfolio is 100% net long heading into the day.

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