Tuesday Watch

Late-Night Headlines
Bloomberg:
- What Bubble? China’s Stock Pickers Are More Bullish Than Ever. Analysts who cover Chinese companies, such as steel analyst Zhang Shibao of China Merchants Securities, are the most bullish they’ve been at any time in the past decade. “We are still in the middle of the bull market and the uptrend is irreversible,” said Zhang. By contrast, analysts in the US have never been so bearish.
- The use of heroin, cocaine and other illegal drugs has been “contained,” the UN said in a report that documents a leveling off in the global supply and demand for narcotics. “The runaway train of drug addiction is being slowed down,” Antonio Maria Costa, executive director of the Vienna-based UN Office on Drugs and Crime, said in a statement.
- Shares of China Cosco Holdings, Asia’s largest container line, as much as doubled on their Shanghai trading debut after the company’s $1.98 billion stock sale attracted record demand.

Financial News:
- Larger hedge fund managers seek independence from prime brokers.

GlobeSt.com:
- The Las Vegas City Council approved plans for a $9.5 billion casino and retail development project on 85 acres of land near the Las Vegas Strip.

Automotive News:
- General Motors(GM) is combining advertising for its Buick, Pontiac and GMC brands within the Leo Burnett advertising agency.

London-based Times:
- The SEC and the UK Financial Services Authority plan to collaborate more closely in order to tackle insider trading, citing Linda Thomsen, the SEC’s head of enforcement.
- Citadel Investment Group LLC may be the next hedge fund to reveal plans for a listing.

Commercial Times:
- Quanta Computer Inc. will likely deliver more than seven million laptop computers to its clients in the current quarter, fueled by rising demand for Apple Inc.(AAPL) Macbooks.

Late Buy/Sell Recommendations
Citigroup:
- Reiterated Buy on (ADM), target $44.
- Reiterated Buy on (SNDK), target $52.

Night Trading
Asian Indices are -.75% to unch. on average.
S&P 500 indicated -.09%.
NASDAQ 100 indicated -.18%.

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 Business/Economy Polling
CNBC Guest Schedule

Earnings of Note
Company/EPS Estimate
- (APOG)/.22
- (FUL)/.40
- (KR)/.48
- (NKE)/.86
- (ORCL)/.34
- (SCS)/.20
- (SRR)/.38

Upcoming Splits
- (CCF) 2-for-1
- (SPAR) 3-for-2
- (VSEC) 2-for-1
- (FLO) 3-for-2

Economic Releases
10:00 am EST
- New Home Sales for May are estimated to fall to 922K versus 981K in April.
- Consumer Confidence for June is estimated to fall to 105.0 versus a reading of 108.0 in May.

Other Potential Market Movers
- The Fed’s Moskow speaking, Richmond Fed Manufacturing Index, Wachovia Equity Conference, (EYE) Conference Call, (FEIC) Analyst Meeting and Jeffries Healthcare Conference could also impact trading today.

BOTTOM LINE: Asian indices are mostly lower, weighed down by automaker and technology 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.