Monday, November 27, 2006

Tuesday Watch

Late-Night Headlines
- Berkshire Hathaway Inc.(BRK/A), the insurance and investment firm run by billionaire Warren Buffett, will disclose more in financial reports in response to a government request, according to regulatory filings.
- A unit of hedge-fund manager Man Group Plc shut down because of losses from US hedge fund Amaranth Advisors LLC’s collapse. Man Alternative Investments Ltd., which owns about 13% of Amaranth’s shares, lost about 20% of this year’s gains because of Amaranth’s collapse in September.
- The SEC will propose raising asset requirements for investing in hedge funds at a Dec. 4 public meeting. The agency will also consider new anti-fraud rules that would prohibit hedge fund managers from making false or misleading statements to individuals who invest in funds.
- Billionaire investor Carl Icahn and Harry Macklowe disclosed that they own an 8% stake in Reckson Associates Realty Corp.(RA), the real estate investment trust they are seeking to buy for $4.26 billion.
- Iran will stand by its neighbor Iraq to help the country boost security and achieve peace, President Mahmoud Ahmadinejad said during a visit to Tehran by his Iraqi counterpart Jalal Talabani.
- Nintendo sold more than 600,000 Wii video-game consoles in the Americas during the product’s first eight days on the market as the company battled to take sales from Sony Corp.’s(SNE) PlayStation 3.
- Japan’s retail sales unexpectedly fell for a second month, undermining the central bank’s case that the economy is strong enough to withstand another interest rate increase.

Financial Times:
- French President Jacques Chirac wants Iran to contribute to the group of countries and multinational institutions co-coordinating NATO’s peace-keeping mission in Afghanistan.

- IAC/InterActiveCorp(IACI) will merge its, CitySearch and functions from other sites to provide local search services.

Yonhap News:
- North Korea’s nuclear negotiator Kim Kye Gwan said his country is ready to rejoin six-nation talks on its nuclear weapons “at any time.”

Late Buy/Sell Recommendations
- Reiterated Buy on (HLT), target $39.
- Downgraded (NYT) to Sell, target $17.
- Boosted estimates for (GS) and (MS).

Night Trading
Asian Indices are -1.25% to -.50% on average.
S&P 500 indicated +.01%.
NASDAQ 100 indicated -.01%.

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
Conference Calendar
Daily Stock Events
Macro Calls
Rasmussen Consumer/Investor Daily Indices
CNBC Guest Schedule

Earnings of Note
Company/EPS Estimate
- (AMWD)/.58
- (CHS)/.23
- (DG)/.15
- (DBRN)/.36
- (JTX)/-.38

Upcoming Splits
- None of note

Economic Releases
8:30 am EST
- Durable Goods Orders for October are estimated to fall 5.0% versus a 8.3% rise in September.
- Durables Ex Transportation for October are estimated to rise .2% versus a .5% gain in September.

10:00 am EST
- Consumer Confidence for November is estimated to rise to 106.0 versus a reading of 105.4 in October.
- Existing Home Sales for October are estimated to fall to 6.14M versus 6.18M in September.

BOTTOM LINE: Asian indices are lower, weighed down by automaker and technology shares in the region. I expect US equities to open modestly higher and to weaken into the afternoon, finishing modestly lower. The Portfolio is 75% net long heading into the day.

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