Wednesday Watch

Late-Night Headlines
Bloomberg:
- Kerry Killinger, CEO of Washington Mutual(WM), said the company “weathered” the subprime storm.
- CNOOC Ltd.(CEO) will nearly double its oil and gas output at Bohai Bay within 3 years.

Wall Street Journal:
- Blackstone Group LP is selling Extended Stay America for $8 billion to Lightstone Group LLC in one of the largest hotel deals.
- Toyota Motor(TM) will expand collaboration with other carmakers and suppliers in areas of advanced technology, citing Senior Managing Director Jim Press. The company would consider cooperative relationships to develop lithium-ion batteries for gasoline-electric hybrid cars and possibly pure electric cars.

Financial Times:
- The European Union will consider introducing legislation making denying or trivializing the Holocaust a criminal offence. Those charged under the legislation could face up to three years in prison.

AFP:
- Officials from religious schools in Pakistan, known as madrassas, said suicide attacks are un-Islamic and rejected the imposition of Sharia law by force. A group of about 2,000 scholars, teachers and administrators issued a declaration at a gathering yesterday in Peshawar. The six-page statement said aggressive acts are illegal, bring madrassas into disrepute and shouldn’t be encouraged.

-Late Buy/Sell Recommendations
Citigroup:
- Reiterated Buy on (SCHW), target $22.
- Downgraded (DRC), (CAM), (FTI), (NOV), (SLB) and (SII) to Hold from Buy.

Night Trading
Asian Indices are unch. to +.50% on average.
S&P 500 indicated -.14%.
NASDAQ 100 indicated -.32%.

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Earnings of Note
Company/EPS Estimate
- (ABT)/.52
- (ADS)/.91
- (ALL)/1.88
- (AOS)/.61
- (BK)/.57
- (CIT)/1.25
- (CTXS)/.34
- (CBH)/.39
- (CYMI)/.66
- (DSL)/1.74
- (ETFC)/.38
- (EBAY)/.30
- (GILD)/.81
- (ITW)/.71
- (ILMN)/.08
- (RX)/.34
- (JPM)/1.02
- (KMI)/1.59
- (KFT)/.41
- (LRW)/.16
- (MOT)/.02
- (NVLS)/.43
- (PNC)/1.32
- (SOV)/.32
- (SYK)/.58
- (TER)/.05
- (TMK)/1.29
- (TRB)/.31
- (UTX)/.81

Upcoming Splits
- (NRP) 2-for-1

Economic Releases
10:30 am EST
- Bloomberg consensus estimates call for a weekly crude oil build of 650,000 barrels versus 678,000 barrel increase the prior week. Gasoline supplies are expected to fall by -1,900,000 barrels versus a -5,476,000 barrel drawdown the prior week. Distillate inventories are expected to fall by -925,000 barrels versus a 170,000 barrel increase the prior week. Finally, Refinery Utilization is estimated to rise .33% versus a 1.34% gain the prior week.

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