Wednesday, December 20, 2006

Thursday Watch

Late-Night Headlines
Bloomberg:
- Huntington Bancshares, Ohio’s fourth-largest bank, agreed to acquire in-state rival Sky Financial Group for about $3.6 billion in stock and cash.
- Japan’s export growth unexpectedly accelerated in November, easing concern that expansion of the world’s second-largest economy is faltering.
- Bank of Thailand Governor Tarisa Watanagase defended measures to control the appreciation of the baht that wiped $23 billion from the value of Thai stocks, and said the rules will be lifted once “volatility” eases.
- The Thai baht tumbled by the most in more than seven years as international investors sold shares on waning confidence in the country’s monetary policy after the government partially reversed some currency controls.
- Crude oil is falling as warmer-than-normal weather cuts demand for heating fuel and near-record speculation by investment funds subsides.
- Copper futures in Shanghai fell to a five-week low after international copper prices slumped on concern slower global growth may reduce demand for the metal used in buildings, cars and appliances.
- Imports of crude oil by Japan, the world’s largest consumer of oil after the US and China, fell for a seventh month in November, according to the ministry of finance. The country brought in 11% less oil last month than a year ago, the ministry said.

Financial Times:
- Global mergers and acquisitions in 2006 reached $3.9 trillion, citing data provider Datalogic.

Business Standard:
- Reliance Life Sciences, owned by India’s Reliance Group, may buy a US-based biotechnology company for $1 billion.

Haaretz:
- The Palestinian group Islamic Jihad fired seven Qassam rockets at southern Israel after two of its fighters were killed in a gun battle with the army.

Securities Times:
- The yuan rising “too fast” isn’t good and China needs to be able to control its foreign-exchange reform and keep it independent, citing a central bank researcher. The rapid gain in the Thai baht and its impact on the stock market showed how quickly currency appreciation can become a problem, he said.

Late Buy/Sell Recommendations
Citigroup:
- Reiterated Buy on (FDX), target $132.
- Rated (LAMR) Buy, target $74.
- Reiterated Buy on (PAYX), raised target to $49.

Morgan Stanley:
- Rated (CYTC) Overweight, target $35.

Night Trading
Asian Indices are -.50% to unch. on average.
S&P 500 indicated +.04%.
NASDAQ 100 indicated +.10%.

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
- (AGE)/.91
- (AM)/.35
- (CCL)/.47
- (CMC)/.74
- (CAG)/.33
- (GIS)/1.03
- (MU)/.20
- (RHAT)/.12
- (RECN)/.27
- (RAD)/-.01
- (SHFL)/.18
- (SLR)/.05
- (SMSC)/.41
- (WOR)/.39

Upcoming Splits
- None of note

Economic Releases
8:30 am EST
- Final 3Q GDP is estimated to rise 2.2% versus a prior estimate of 2.2%.
- Final 3Q GDP Price Index is estimated to rise 1.8% versus a prior estimate of 1.8%.
- Final 3Q Personal Consumption is estimated to rise 2.9% versus a prior estimate of 2.9%.
- Final 3Q Core PCE is estimated to rise 2.2% versus a prior estimate of 2.2%.
- Initial Jobless Claims for last week are estimated to rise to 315K versus 304K the prior week.
- Continuing Claims are estimated to fall to 2475K versus 2477K prior.

10:00 am EST
- Leading Indicators for November are estimated to rise .1% versus a .2% gain in October.

12:00 pm EST
- Philly Fed for December is estimated to fall to 4.0 versus 5.1 in November.

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

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