Tuesday, November 14, 2006

Wednesday Watch

Late-Night Headlines
Bloomberg:
- Middle East benchmark crude oil prices may drop below $50 a barrel over the next few years as Saudi Arabia and other nations boost output to supply expanded refining capacity, Nippon Oil said. A possible slowdown in demand growth led by China may contribute to lower Oman and Dubai oil prices, said Naoaki Tsuchiya, general manager of the overseas business division at Nippon Oil, Japan biggest refiner.
- China’s industrial output rose at the slowest pace in almost two years in October as the government restricted lending for investment projects.
- China’s production of crude steel rose 18% in October from a year earlier, according to the National Bureau of Statistics.
- Google Inc.(GOOG) set aside more than $200 million to protect against lawsuits over YouTube.

Financial Times:
- Sony Corp.(SNE) CEO Stringer sees the company’s battery and PlayStation 3 problems as an opportunity accelerate management changes that began 18 months ago.

Independent:
- BMW AG, the world’s largest luxury carmaker, has developed a model than can run on hydrogen gas as well as conventional petrol and diesel. BMW is the only car manufacturer to promote the use of hydrogen gas as a fuel for existing internal combustion engines.

Guardian:
- Microsoft Corp.(MSFT) has been set a Nov. 23 deadline by the European Union to provide its rivals with the remaining details of its software systems or face new fines.

Shanghai Securities News:
- A 5% gain in China’s yuan against the dollar will trim $50 billion off the nation’s $1 trillion foreign-exchange reserves.

Commerical Times:
- Hon Hai Precision Industry Co. won an order for 12 million cellular phones with iPod functions from Apple Computer(AAPL).

Hindu Business Line:
- A group led by India’s ONGC Videsh Ltd., a unit of the country’s biggest oil producer, has found oil in the Farsi block in Iran.

Late Buy/Sell Recommendations
HSBC:
- Rated (MT) Underweight, target $35.

Citigroup:
- Reiterated Buy on (LZ), target $53.

Night Trading
Asian Indices are unch. 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
Daily Stock Events
Macro Calls
Rasmussen Consumer/Investor Daily Indices
CNBC Guest Schedule

Earnings of Note
Company/EPS Estimate
- (AMAT)/.31
- (RMK)/.50
- (BEAS)/.14
- (CHRS)/.13
- (DAKT)/.14
- (GYMB)/.67
- (HOTT)/.16
- (LTD)/.07
- (MW)/.54
- (NTAP)/.25
- (OSI)/.32
- (PEIX)/-.03
- (PETM)/.21
- (CRM)/.05
- (TLB)/.15
- (TYC)/.49

Upcoming Splits
- None of note

Economic Releases
8:30 am EST
- Empire Manufacturing for November is estimated to fall to 15.0 versus a reading of 22.9 in October.

10:30 am EST
- Bloomberg consensus estimates call for a weekly crude oil build of 275,000 barrels versus a 435,000 barrel build the prior week. Gasoline supplies are expected to fall 100,000 barrels versus a 584,000 barrel decline the prior week. Distillate inventories are estimated to fall 725,000 barrels versus a 2,675,000 barrel fall the prior week. Finally, Refinery Utilization is expected to increase .9% versus a .81% decline the prior week.

2:00 pm EST
- Minutes of Oct. 24 FOMC Meeting

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