Monday Watch

Weekend Headlines
Bloomberg:
- Shares of Williams-Sonoma(WSM) surged the most in almost three years today on speculation the biggest gourmet-cookware retailer in the US may be a takeover target, according to an analyst at Thomas Weisel Partners.
- China’s government shut down three companies whose tainted products were used in medicine and pet food, amid efforts to address concerns about the Asian nation’s food safety.
- HIV drugs will be given to people who don’t have the virus by US scientists to determine whether the medicines can protect those at greatest risk of catching the AIDS-causing disease.
- Germany will not be blackmailed into pulling its military forces out of Afghanistan, Chancellor Angela Merkel said, dismissing demand by Taliban insurgents who are reported to have taken German citizens hostage.
- Borders Group(BGP) sold 1.2 million copies of “Harry Potter and the Deathly Hallows” yesterday, giving the 1,200-store chain the highest single-day sales of any title in its history.
- Ev3 Inc.(EVVV), a maker of catheter-based devices to treat vascular diseases, agreed to buy FoxHollow Technologies(FOXH), the maker of a device to treat arterial blockage, for $780 million in cash and stock.
- Crude oil is falling a second day in NY on signs fuel stockpiles will increase as refiners increase output.
- Treasuries Attract Pension Funds Overflowing With Stock Gains.
- Bear Stearns(BSC) Shares Show Cayne’s Dummy ‘Body Blow’ Won’t Hurt.
- China’s copper imports, the largest in the world, fell 6.8% in June from May as rising prices reduced the profitability of shipments.

Wall Street Journal:
- Trying to cash in on investors’ fascination with alternative investments, Wall Street is pitching a complex new product that aims to mimic hedge-fund performance while avoiding the gigantic fees that real ones charge.
- Barclays Plc is trying to recover $400 million it invested in a Bear Stearns(BSC) fund, a conflict that could lead to arbitration or litigation.
- Technology demand is showing an unexpected surge, driven by rapidly falling prices for components such as computer chips and disk drives, business spending and a rush by people around the world to get on the Internet.
- Numbers Game: Why ‘Guidance’ May Not Matter.
- States Aim to Stem Tide of Home Foreclosures with Funds for Refinancing.

NY Times:
- A record number of fires, power failures, leaks, spills and breakdowns at US oil refineries this year has caused disruptions that have pushed up wholesale gasoline prices 35%.
- General Electric CEO Immelt faces pressure from stockholders to boost the company’s shares.
- Podcasters Unite to Figure Out a Role for Ads.

Business Week:
- The Best Product Design of 2007.
- The Dow's sprint isn't over. One big reason: Of the index's 30 components, at least nine are trading way below their fair market, or intrinsic, value, according to some valuation studies.

AP:
- Iranian and US officials will meet July 24 to discuss the security situation in Iraq, citing Hoshyar Zebari, Iraq’s foreign minister.

Reuters:
- OPEC concerned oil price may hurt global economy. Tight supplies of refined products in the US, investment fund buying of oil futures and international political tension have pushed the price higher, said OPEC President Mohammed al-Hamli.

Washington Post:
- Presidential candidates, including Democratic Senator Hillary Rodham Clinton and Republican Senator John McCain, have made stops at Google’s(GOOG) headquarters in an effort to show they are in touch with the company that has come to represent innovation in Silicon Valley.

Crain’s Chicago Business:
- The Chicago Board Options Exchange has barred about 600 members of the Chicago Board of Trade who haven’t exercised their CBOE trading rights from the exchange.

EE Times:
- Apple flash memory demand triggers shortage fears.

Star-Ledger of Newark:
- New Jersey Democratic Governor Jon Corzine urged United Parcel Service to obey state law and give benefits to partners in same-sex relationships.

CNNMoney.com:
- A fair price for both oil producers and consumers for a barrel of oil would be around $60 to $65 a barrel, a Kuwaiti state oil newsletter quoted the head of OPEC's research division as saying.

Financial Times:
- Merrill Lynch(MER), Lehman Brothers(LEH), Morgan Stanley(MS) and Citigroup(C) are among a group of investment banks developing an electronic trading platform for unregistered securities to compete with existing systems such as the one created by Goldman Sachs(GS).

Daily Telegraph:
- Facebook Inc., a social-networking Web site, is getting 150,000 new members a day.

South China Morning Post:
- China has indefinitely postponed the release of a so-called “Green GDP” because of bureaucratic infighting and local authorities’ opposition, citing Wang Jinnan, who devised the plan.

Hong Kong Commercial Broadcasting:
- China’s government will further tighten monetary policy after increasing lending and deposit rates last week, Hong Kong Monetary Authority Chief Executive Joseph Yam said.

Weekend Recommendations
Barron's:
- Made positive comments on (BBBY), (M), (KSS), (VIA), (KDN), (BBY) and (LVS).

Night Trading
Asian indices are -.75% to unch. on average.
S&P 500 futures -.01%.
NASDAQ 100 futures -.07%.

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/Estimate
- (ALTR)/.21
- (AXP)/.86
- (ACI)/.27
- (ATHR)/.22
- (AV)/.15
- (CGNX)/.11
- (GNTX)/.21
- (HAL)/.56
- (HAS)/.18
- (LNCR)/.62
- (MRK)/.72
- (NFLX)/.24
- (SGP)/.35
- (STN)/.55
- (TASR)/.04
- (TXN)/.42
- (WFT)/.70

Upcoming Splits
- None of note

Economic Releases
- None of note

Today’s Other Potential Market Movers
- None of note

BOTTOM LINE: Asian indices are mostly lower, weighed down by automaker and utility shares in the region. I expect US stocks to open modestly lower and to rally into the afternoon, finishing mixed. The Portfolio is 100% net long heading into the week.