Wednesday Watch

Late-Night Headlines
Bloomberg:
- Valero Energy(VLO), the largest US refiner, said it shut fluid catalytic cracking units for maintenance at refineries in Houston and Louisiana. The unit at the Houston plant will be shut for “approximately two weeks.” Gasoline production will drop by 40,000 barrels a day in Houston and 25,000 barrels a day at Krotz Springs during the maintenance period. A historical rash of refinery “problems” has been the driving force behind the recent surge in energy prices.
- China’s new securities account openings were the lowest in almost two months on June 4 as a stock-market rout, triggered by a tripling of the tax on share trades, deterred people from entering the market.
- Australia’s gross domestic product rose 1.6% from the fourth quarter, above estimates of a 1.2% gain.

Shanghai Securities News:
- China may further increase banks’ reserve requirement ratios by 27 basis points to 54 basis points this year, citing a researcher from the Chinese Academy of Social Science.

Economic Daily News:
- Taiwan Semiconductor Manufacturing, AU Optronics and Chunghwa Picture Tubes have postponed planned investments worth more than $20 billion, citing the Central Taiwan Science Park administration.

Late Buy/Sell Recommendations
Suntrust Robinson Humphrey:
- Rated (LOOP) Buy, target $31.

Night Trading
Asian Indices are unch. to +.25% on average.
S&P 500 indicated unch.
NASDAQ 100 indicated -.01%.

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Earnings of Note
Company/EPS Estimate
- (ADCT)/.23
- (CMTL)/.53
- (DSW)/.47
- (GIII)/-.51
- (GOT)/-.33
- (IDT)/-.37
- (KFY)/.35
- (LZB)/.07
- (MATK)/.15

Upcoming Splits
- (EPIQ) 3-for-2
- (PFMG) 2-for-1
- (NGA) 3-for-2

Economic Releases
8:30 am EST
- Final 1Q Non-farm Productivity is estimated to rise 1.0% versus a 1.7% prior estimate.
- Final 1Q Unit Labor Costs are estimated to rise 1.3% versus a .6% prior estimate.

10:30 am EST
- Bloomberg consensus estimates call for a weekly 125,000 barrel crude oil supply increase versus a -1,956,000 barrel decline the prior week. Gasoline supplies are estimated to rise by 1,600,000 barrels versus a 1,361,000 barrel increase the prior week. Distillate inventories are estimated to rise by 900,000 barrels versus a 147,000 barrel build the prior week. Finally, Refinery Utilization is estimated to rise .5% versus a -.02% decline the prior week.

Other Potential Market Movers
- The Fed’s Pianalto speaking, Fed’s Lacker speaking, Fed’s Hoenig speaking, MBA mortgage applications report, Challenger Job Costs, Bank of England Policy Meeting, (NYX) Analyst Day, FTN Midwest Health Care Conference, Keybanc Industrial/Automotive Conference, Kaufman Brothers Digital Media Conference, Piper Jaffray Consumer Conference, Stephens Investment Conference, RBC Energy Conference and Lehman Brothers Global Services Conference could also impact trading today.

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