Friday Watch

Late-Night Headlines
Bloomberg:
- Dow Jones’(DJ) owners and directors were sued by a shareholder seeking to compel acceptance of a $5 billion buyout offer by News Corp.(NWS/A) Chairman Rupert Murdoch.
- US Senator Hillary Rodham Clinton, laying out her first presidential health-policy agenda since the failed attempt during her husband’s administration, said she would bar insurers from “cherry picking” profitable enrollees.
- Rational decision makers would normally quake at warnings about the casino mentality in Shanghai. Greenspan, after all, is a very cautious fellow who doesn’t utter a word before considering what damage it might do. So when the former Fed chairman said May 23 that stocks in China face a “dramatic contraction,” he’s probably far more concerned than he lets on.
- President Bush said war funding legislation moving through Congress sets out a “clear road map” for progress by the Iraqi government and that the next few months will be a crucial period in the conflict.
- Nasdaq Stock Market(NDAQ), trailing NYSE Euronext in the race to expand into Europe, may say as early as today that it’s buying Sweden’s OMX AB for more than $3 billion.
- A “large” appreciation of the yuan would hurt China’s economy, Vice Premier Wu Yi said, signaling the nation won’t cave in to US demands for faster gains to ease the US trade deficit.
- Japan’s core consumer prices fell .1% in April versus a .3% decline in March that was the steepest decline in two years, the government statistics bureau said in Tokyo.
- Congress approved $120 billion in emergency spending for military operations and domestic projects after dropping Iraq troop withdrawal timelines.
- Pakistan’s economic progress is being threatened by terrorism and extremism that may force the country to reverts to backwardness, said President Pervez Musharraf.
- World sugar output will rise by 1.2% to 163.3 million metric tons during the 2007-2008 crop year, pushing the stocks-to-use ratio to a 25-year high, the US Foreign Agricultural Service said.

NY Times:
- The number of eighth graders in NY who passed an annual English test increase for the first time since 1999.

CNBC:
- Apple’s(AAPL) iPhone will be available June 20, citing an unidentified AT&T phone store. Apple spokesman Steve Dowling declined to comment on the report. The device will be available in late June, Dowling said, reiterating earlier comments from Apple.

Shanghai Securities News:
- Stock brokers in Beijing shut their offices and evicted customers before closing time yesterday in an effort to prevent a rampage and cool China’s stock market. Many brokerages are encouraging customers to open online accounts rather than come to their offices, which are mostly too small to accommodate big crowds.

Late Buy/Sell Recommendations
Citigroup:
- Reiterated Buy on (SNDK), target $52.
- Reiterated Buy on (KYPH), target $54.
- Reiterated Buy on (VAR), target $52

Morgan Stanley:
- Demand for LCD-TVs seems stronger than we had expected. 6G lines are being stretched to capacity as large models penetrate further, and 32” LCD panels are in serious shortage. Panel prices are rising at a 2% MoM clip.

Business Week:
- Billionaire investor George Soros acquired a 12% stake in Bioenvision Inc.(BIVN), a biopharmaceutical company focused on certain types of cancer. SCO Financial CEO Steven Rouhandeh said share of the company could reach $20 a share if its clofarabine drug is approved for adult use in Europe.
- YRC Worldwide(YRCW), the largest US trucking company, is a potential buyout target. Justin Yagerman, an analyst with Wachovia Securities, expects the shares to hit $53 in a year.
- Shares of Amgen Inc.(AMGN) will rise 17% in a year, citing chief investment officer at Ryan Beck & Co.

Night Trading
Asian Indices are -1.25% to -.50% on average.
S&P 500 indicated +.04%.
NASDAQ 100 indicated +.09%.

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
- (POT) 3-for-1
- (TSO) 2-for-1

Economic Releases
10:00 am EST
- Existing Home Sales for April are estimated at 6.12M versus 6.12M in March.

BOTTOM LINE: Asian indices are lower, weighed down by commodity 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 75% net long heading into the day.