Tuesday Watch

Late-Night Headlines
Bloomberg:
- Medtronic Inc.(MDT) will report today that its stent for preventing heart attacks didn’t cause blood clots in test, increasing the cardiac-device maker’s chances of expanding its share of the $5.4 billion-a-year worldwide market.
- Chevron USA, a wholly owned subsidiary of Chevron Corp.(CVX), has agreed to sell all 96,891,014 of its shares of Class A common stock of Dynegy Inc.(DYN) in an underwritten public offering.
- Shares of NEC Corp., Japan’s largest personal-computer maker, surged 6.6% after the company said profit will triple this year.

Nightly Business Report:
- Federal Reserve Bank of Chicago President Michael Moskow said US inflation is likely to slow from a pace he considers too fast, while economic growth quickens. “I see the economy improving as we move through this year,” Moskow said. “Our expectation is that inflation rates will continue to come down as well during this period and I would expect the unemployment rate will not go up a great deal.”

Financial Times:
- An association representing hedge funds will publish today modernized principles on how hedge funds should operate but reject calls from Germany for a full voluntary code of conduct for the industry.

China Daily:
- China will make food and consumer-product safety its top priority, citing a vice minister in charge of quality inspection.

Late Buy/Sell Recommendations
Citigroup:
- Reiterated Buy on (ONNN), target $13.
- Reiterated Buy on (FNSR), target $5.
- Rated (SNPS) Buy, target $34.
- (TGT) sales are off to a solid start, based on results for the first two weeks of May. The arrival of warmer weather at the start of May likely drove sales of seasonal items, such as apparel. However, the expected arrival of cooler weather for Memorial Day weekend, combined with a tough weather comparison from last year, could challenge sales in the back half of the month.
- Added (CMCSK) to Recommended List, target $33.

CSFB:
- We believe the April crude steel production data supports our view the recent round of price increases in the US have now come to an end, and we continue to expect US pricing to plateau in the coming months. Without additional price increases, we believe the shares of the US steel producers are near fair-value, supported by consolidation speculation, but constrained by valuations.

Night Trading
Asian Indices are unch. to +.75% on average.
S&P 500 indicated -.04%.
NASDAQ 100 indicated -.01%.

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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
- (AEO)/.35
- (ADI)/.37
- (AZO)/2.16
- (BJ)/.20
- (PLCE)/.42
- (CSC)/1.48
- (DY)/.27
- (FRE)/1.09
- (MDT)/.62
- (MW)/.63
- (PBY)/.06
- (SNDA)/.31
- (SPLS)/.29
- (TECD)/.39
- (UNFI)/.35
- (ZLC)/-.05

Upcoming Splits
- (ATLS) 3-for-2
- (GIL) 2-for-1

Economic Releases
- None of note

Other Potential Market Movers
- The Fed’s Bernanke speaking, Fed’s Lacker speaking, weekly retail sales reports, Richmond Fed Manufacturing Index, Citigroup Healthcare Conference, Morgan Keegan Homeland Security Conference, JPMorgan Tech Conference and UBS Oil&Gas Conference could also impact trading today.

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