Thursday Watch

Late-Night Headlines
Bloomberg:
- Apple Inc.'s campaign to build excitement about its iPhone may be the most successful marketing effort ever, surpassing the drive to promote Ford Motor Co.'s 1964 Mustang and Microsoft Corp.'s Windows 95.
- CryoCor Inc.(CRYO) won the backing of US advisers for its experimental device to treat a type of irregular heartbeat, moving the product a step closer to approval more than a year after regulators rejected it.
- UBS AG, Europe’s largest bank by assets, was accused by Massachusetts regulators of “dishonest and unethical” practices in dealings with hedge-fund advisers.
- The yen fell from a two-week high against the US dollar and euro on speculation investors resumed sales of the currency in search of higher returns elsewhere.
- Japan’s industrial production unexpectedly dropped for third month in May, the longest losing streak in almost two years, raising concern that the world’s second-largest economy is slowing.
- The fate of US immigration legislation was cast into doubt when at least six senators who helped revive the proposed overhaul said they either oppose or are leaning against a move to permit a vote on final passage.

Financial Times:
- Motorola(MOT) is worried about the effect of Apple’s(AAPL) iPhone but believes the device has weaknesses, citing an interview with Padmasree Warrior, Motorola’s chief technology officer.
- Signs emerged on Wednesday that efforts by federal officials to tackle the competitiveness of the US capital markets are speeding up.
- Ten international banks, including HSBC and Standard Charter, have been punished by China’s foreign exchange regulator for breaching strict capital controls by helping to funnel huge amounts of foreign exchange into the country’s soaring stock and property markets.
- Iran’s parliament on Wednesday night agreed to press ahead with plans to introduce fuel rationing in the face of panic and rioting across the country over the proposals.

Late Buy/Sell Recommendations
Citigroup:
- We strongly recommend investors take advantage of current weakness to add to their (ABK, target $103) and (MBI, target $74) positions. Valuations are neat the trough, yet market conditions for new business are the most attractive they have been since 2003 as spreads are finally widening.
- Reiterated Buy on (JCI), target raised to $131.

Night Trading
Asian Indices are +.25% to +1.0% on average.
S&P 500 indicated +.05%.
NASDAQ 100 indicated +.12%.

Morning Preview
US AM Market Call
NASDAQ 100 Pre-Market Indicator/Heat Map
Pre-market Commentary
Pre-market Stock Quote/Chart
Before the Bell CNBC Video(bottom right)
Global Commentary
WSJ Intl Markets Performance
Commodity Movers
Top 25 Stories
Top 20 Business Stories
Today in IBD
In Play
Bond Ticker
Economic Preview/Calendar
Daily Stock Events
Macro Calls
Upgrades/Downgrades
Rasmussen Business/Economy Polling
CNBC Guest Schedule

Earnings of Note
Company/EPS Estimate
- (COMS)/.02
- (ACN)/.55
- (APOL)/.71
- (ARRO)/.37
- (BMET)/.48
- (BBOX)/.61
- (CBK)/.30
- (STZ)/.15
- (FDO)/.41
- (FINL)/-.10
- (GIS)/.63
- (KBH)/.26
- (MU)/-.24
- (MON)/1.00
- (TONS)/.98
- (PALM)/.14
- (RAD)/.00
- (RBN)/.59
- (SLR)/.05
- (TIBX)/.02
- (WOR)/.36

Upcoming Splits
- (FLO) 3-for-2

Economic Releases
8:30 am EST
- Final 1Q GDP is estimated to rise .8% versus prior estimates of .6% increase.
- Final 1Q Personal Consumption is estimated to rise 4.4% versus prior estimates of a 4.4% increase.
- Final 1Q GDP Price Index is estimated to rise 4.0% versus prior estimates of a 4.0% gain.
- Final 1Q Core PCE QoQ is estimated to rise 2.2% versus prior estimates of a 2.2% gain.
- Initial Jobless Claims for last week are estimated to fall to 315K versus 324K the prior week.
- Continuing Claims are estimated to fall to 2500K versus 2523K prior.

2:15 pm EST
- The FOMC is expected to leave the benchmark Fed Funds rate at 5.25%.

Other Potential Market Movers
- The Wachovia CEO Summit, RBC Energy Infrastructure/Trust Conference and Jeffries Healthcare Conference could also impact trading today.

BOTTOM LINE: Asian indices are higher, boosted by automaker and energy 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.