Friday Watch

Late-Night Headlines
Bloomberg:
- China may raise interest rates twice this year and order banks to set aside more money to slow lending after economic growth accelerated to 11.1% in the first three months of the year, a survey showed.
- President Bush warned of a possible nuclear arms race in the Middle East if the US pulls out of Iraq too quickly and lets Iran, which has an atomic development program, extend its influence.
- Cutting back on salt, a practice known to prevent hypertension, may also stop heart attacks and strokes, a study in the British Medical Journal found.
- China’s construction stocks have become the most expensive in Asia on record spending for roads and bridges, just as the government is taking steps to slow economic growth.
- Merrill Lynch(MER) said its newly acquired First Franklin unit made record numbers of subprime home loans in January and February and added staff, even as a surge in defaults forced rival mortgage lenders into bankruptcy. “We were able to build on our platform, actually hire talented people from competition, as some of our competitors fell away,” Merrill CFO Edwards said. “Our underwriting was up despite efforts to improve underwriting standards of ongoing products and eliminate products we felt were poorly performing.”
- Crude oil may fall further next week on speculation US refiners will increase production of gasoline, suggesting adequate stockpiles to meet demand this summer, according to a Bloomberg survey.
- The US Centers for Disease Control and Prevention expects to have at least 127 million flu vaccinations available this year to help prevent the illness that kills about 36,000 people in the US each season.
- China’s production of non-ferrous metals, including aluminum, copper and zinc, rose in the first three months of this year from the same period a year ago, the National Bureau of Statistics said.

Steelweek:
- Evraz Group SA, Russian’s second-biggest steelmaker, has decided not to bid for Ipsco Inc.(IPS) because a takeover would be too expensive.

Yomiuri:
- The Bank of Japan will lower its estimate for consumer-price inflation for the current fiscal year in a semiannual report on April 27.

Economic Daily News:
- Taiwan Semiconductor Manufacturing(TSM) is considering building a chip factory that may cost about $10 billion.

Late Buy/Sell Recommendations
Citigroup:
- Rated (POZN) Buy, target $28.
- Rated (ZGEN) Sell, target $12.

Business Week:
- Cardiac Science Corp.(CSCX), a maker of automated external defibrillators, is benefiting from demand from areas such as airports, sports arenas and government agencies. The shares could rise 18% in 2007, citing Dalton Chandler of Needham & Co. Jonathan Block of SunTrust Robinson Humphrey says the stock could reach $12 in the next year.

Night Trading
Asian Indices are +.50% to +1.50% on average.
S&P 500 indicated -.03%.
NASDAQ 100 indicated +.07%.

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
- (BXS)/.38
- (CAT)/1.07
- (HON)/.62
- (JCI)/1.06
- (MAN)/.61
- (MCD)/.61
- (SLB)/.90
- (XRX)/.21

Upcoming Splits
- None of note

Economic Releases
- None of note

BOTTOM LINE: Asian indices are higher, boosted by technology and automaker stocks in the region. I expect US equities to open modestly higher and to build on gains into the afternoon. The Portfolio is 100% net long heading into the day.