Bloomberg:
- Crude oil traded near its lowest in more than five months after falling for a seventh day as the IEA lowered consumption forecasts. “We’re in the midst of a tectonic change,” said Peter Beutel, president of Cameron Hanover, an energy consultant. “The rally in oil that has lasted five years may be over. We keep seeing lower demand estimates which show the impact of very high prices.”
- China’s industrial production grew last month at the slowest pace in 17 months as government lending curbs began to cool the world’s fastest-growing major economy.
- China, the world’s biggest maker of steel, made 17% more of the metal last month from a year earlier, the National Bureau of Statistics said.
- Gold in Asia fell for the sixth day, the longest losing streak in three months, after declining crude oil prices reduced the metal’s appeal as an inflation hedge. Movements in oil and gold prices are 81% correlated, Merrill Lynch said in a recent report.
Wall Street Journal:
- Institutional investment in Asian real estate has climbed so high it has reached what one property executive calls “nosebleed levels.”
AP:
- US Senator Hillary Clinton, seeking re-election, turned back a Democratic primary challenge in NY from an anti-war candidate today, and Eliot Spitzer bested his opponent to win the party’s gubernatorial nomination.
Financial Times:
- Hedge funds have increased their purchase of high-risk corporate instruments in Europe amid forecasts that a corporate restructuring will take place soon.
- French Interior Minister Nicolas Sarkozy said he is “proud” of his “friendship” with the US. Though Israel’s response in Lebanon was “clumsy and disproportionate,” Israel has the right to defend itself against Hezbollah, which was the “aggressor,” Sarkozy said.
China Securities Journal:
- China’s government should use its $1 trillion of foreign currency reserves to buy overseas companies and assets, citing a central government economist.
- China should raise medium- and long-term deposit rates to curb increasing liquidity in the market.
Commercial Times:
- S&P may downgrade Taiwan’s credit ratings because of slowing economic growth, a government budget deficit and political instability.
China Daily:
- Walt Disney(DIS), Sony’s Columbia Pictures Entertainment and News Corp.’s Twentieth Century Fox Film Corp. are among five movie studios suing a Beijing-based company on piracy claims.
Late Buy/Sell Recommendations
Citigroup:
- Reiterated Buy on (MRVL), target $29.
- Reiterated Buy on (SNDK), target $69.
- Reiterated Buy on (EBAY), target $38.
- Reiterated Buy on (BBY), target $65.
Morgan Stanley:
- Cut (PCL) to Underweight, target $32.
Night Trading
Asian Indices are +.50% to +.75% on average.
S&P 500 indicated -.08.
NASDAQ 100 indicated +.03%.
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
- (FOE)/.28
- (LEH)/1.49
Upcoming Splits
- (CXW) 3-for-2
Economic Releases
2:00 pm EST
- The monthly budget deficit for August is estimated to widen to -$65.5 billion versus -$51.3 billion in July.
BOTTOM LINE: Asian indices are modestly higher, boosted by automaker and technology shares 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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