Monday, August 28, 2006

Tuesday Watch

Late-Night Headlines
Bloomberg:
- 3M Co.(MMM), the maker of products from Post-it notes to electronic road signs, aims to raise consumer sales in the Greater China region to maintain 20% annual revenue growth as competition to sell industrial goods increases.
- Baoshan Iron & Steel Co., China’s largest steelmaker, had a 27% fall in second-quarter profit as prices dropped due to rising output in the country.

Financial Times:
- The number of rival private equity firms uniting for takeover deals is concerning US public pension funds, who say the trend is increasing risk to investors.

London-based Times:
- Internet retailers in the UK had a 35.4% increase in like-for-like sales in July, citing research by IMRG, the industry body that tracks Internet spending.

Shanghai Securities News:
- China’s pharmaceutical industry profits grew at a slower pace in the first half after almost 30% of companies had losses, citing a National Development and Reform Commission report.

Late Buy/Sell Recommendations
Citigroup:
- Reiterated Buy on (MNST), target $48.

Morgan Stanley:
- For the past several months, excess end demand inventory for NAND, particularly from the flash cards and MP-3 producers, drove prices down rapidly. We believe the current inventory correction is nearing completion and look for a seasonal demand up-tick to either stabilize or increase NAND prices during the next couple of months.

Night Trading
Asian Indices are +.50% to +1.0% on average.
S&P 500 indicated +.02%.
NASDAQ 100 indicated +.16%.

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
- (ADCT)/.26
- (DY)/.20
- (FCEL)/-.36
- (MCRS)/.51
- (NOVL).03
- (SAFM)/-.04
- (SMTC)/.20

Upcoming Splits
- None of note

Economic Releases
10:00 am EST
- Consumer Confidence for August is estimated to fall to 102.5 versus a reading of 106.5 in July.

2:00 pm EST
- Minutes of Aug. 8 FOMC Meeting

BOTTOM LINE: Asian indices are higher, boosted by technology and automaker 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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