Thursday, December 07, 2006

Friday Watch

Late-Night Headlines
- The S&P 500 will climb to a record 1150 in 2007 as business investment and exports mitigate a slowdown in consumer spending, according to Goldman Sachs(GS) Group’s Abby Joseph Cohen. The estimate implies a 10% increase for the S&P 500 next year.
- Japan’s economy grew at less than half the pace the government estimated last quarter as consumers pared spending and growth in corporate investment cooled. The world’s second largest economy expanded at an annual .8% rate in the three months ended Sept. 30, slower than an initial estimate of 2%, the Cabinet Office said.
- Sony Corp.(SNE) sold 197,000 PlayStation 3 consoles in the US during November, missing its goal for initial shipments by half after parts shortages slowed production, market researcher NPD Group Inc. estimated. Nintendo’s Wii, which also was introduced last month, sold 476,000 units. The Microsoft Xbox 360 sold 511,000 machines.
- Drug-coated heart stents don’t pose a higher risk of death or heart attack from blood clots than bare-metal devices when used as approved by regulators, a US government advisory panel said.
- The US Senate confirmed Andrew von Eschenbach, President Bush’s nominee to head the FDA, after lawmakers blocked a vote for months because of complaints about the agency.
- Reckson Associates(RA) shareholders approved the sale of the company for $3.8 billion to SL Green Realty after a two-day lobbying effort by Reckson that included a last-minute promise of a dividend.
- Marshall Wace LLP raised $2 billion in the largest IPO of a hedge fund. The London-based firm sold shares of MW Tops Ltd., a closed-end investment company, on Euronext Amsterdam, according to an e-mailed statement.
- The “Chicago Spire,” planned as the tallest building in North America, will be entirely residential condominiums, said its developer, Shelbourne Development Ltd.
- China’s producer-price inflation unexpectedly eased in November to a six-month low as oil costs slipped.

- Somalia’s Islamist militia rejected a UN Security Council vote authorizing an African peacekeeping force, and said it would cause further bloodshed in the Horn of Africa nation.

Late Buy/Sell Recommendations
- US videogame software sales grew 15% year-over-year in November, above the 1% year-over-year increase in October.

Business Week:
- Inter Parfums Inc.(IPAR) will probably benefit from an agreement to make perfumes and beauty products for Gap Inc.(GPS).
- Gannett Co.(GCI) shares may rise 26% within a year., citing Vontobel Asset Management’s Ed Walczak.

Night Trading
Asian Indices are -.75% to -.25% on average.
S&P 500 indicated -.06%.
NASDAQ 100 indicated unch.

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
- None of note

Upcoming Splits
- (CRVL) 3-for-2
- (GRC) 5-for-4
- (EMR) 2-for-1
- (EZPW) 3-for-1
- (RES) 3-for-2

Economic Releases
8:30 am EST
- The Change in Non-farm Payrolls for November is estimated at 100K versus 92K in October.
- The Change in Manufacturing Payrolls for November is estimated at -15K versus -39K in October.
- Average Hourly Earnings for November are estimated to rise .3% versus a .4% gain in October.

10:00 am EST
- The Preliminary Univ. of Mich. Consumer Confidence reading for December is estimated to fall to 92.0 versus a reading of 92.1 in November.

BOTTOM LINE: Asian indices are lower, weighed down by technology and commodity shares in the region. I expect US equities to open modestly lower and to rally into the afternoon, finishing modestly higher. The Portfolio is 100% net long heading into the day.

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