Tuesday, January 23, 2007

Tuesday Watch

Late-Night Headlines
- Crude oil is little change in NY after falling yesterday on forecasts for a mild end to the winter.
- Taiwan’s energy use fell in November from a year earlier, the third decline last year, because motorists used less fuel.
- Nariman Behravesh, chief economist at Global Insight Inc., says the US economic “soft patch is pretty much over.”
- SAC Capital Advisors LLC, the $10 billion hedge-fund firm run by Steven Cohen, reduced its stake in Phelps Dodge(PD) to 4% from 5.1%.
- China, diversifying its $1.07 trillion in currency reserves, may favor US bonds. The People’s Bank of China needs to be cautious because much of its reserves were created by “speculative inflows,” said Zhao Qingming, an analyst at China Construction Bank Corp., the nation’s fourth-biggest lender.

Chosun Ilbo:
- North Korea and US negotiators made progress in talks on financial sanctions against the North.

Xinhua News Agency:
- China extended a list of machinery that isn’t exempt from import duties to help domestic companies compete locally.

Late Buy/Sell Recommendations
- Reiterated Buy on (LOW), top pick target $41. Sees inflection point in the housing market in 3Q07, believes the fundamentals of home improvement sector will turn favorable.
- Unsold home inventories should fall sharply this year as the pace of new construction plummeted in 2006, while demand fell only half as much. Housing’s drag on growth should get smaller as 2007 transpires. A small positive growth contribution for housing in 2008 is likely.

Night Trading
Asian Indices are -.50% to unch. on average.
S&P 500 indicated -.01%.
NASDAQ 100 indicated +.06%.

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
- (ADTN)/.23
- (AMD)/.10
- (AKS)/.18
- (AV)/.13
- (AVY)/1.0
- (BAC)/1.18
- (BLK)/1.53
- (EAT)/.39
- (BNI)/1.39
- (CTX)/-2.00
- (CTXS)/.38
- (COH)/.58
- (DHI)/.33
- (EMC)/.16
- (HYSL)/.44
- (IDTI)/.28
- (JNJ)/.79
- (MCHP)/.33
- (NBIX)-.76
- (PNC)/1.30
- (QLGC)/.26
- (STX)/.32
- (SUNW)/.00
- (TMA)/.59
- (UAUA)/-.35
- (UTX)/.85
- (WB)/1.18
- (XRX)/.37
- (YHOO)/.13

Upcoming Splits
- None of note

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

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

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