Tuesday Watch

Late-Night Headlines
Bloomberg:
- Shares of Cedar Fair LP(FUN) rose the most in 20 months after a report said the third-largest US theme-park operator hired Bear Stearns(BSC) to seek a buyer that will agree to keep the management team.
- Ford Motor(F) said it will team up with Southern California Edison to help develop rechargeable batteries for future plug-in vehicles.
- There is no evidence Turkey has massed troops on its border with Iraq, a Pentagon spokesman said.

NY Times:
- One of the suspects in the failed terror attempt in Glasgow, Scotland, worked as an aeronautical engineer for an Indian company that designs parts for Boeing Co.(BA) and Airbus SAS.

Financial Times:
- Chuck Prince, CEO of Citigroup(C), said turmoil in the US subprime-mortgage market is not so big a risk that it would slow down the company’s lending.

Commercial Times:
- Lee Chang Yung Chemical Industry Corp. plans to spend $1.6 billion over the next three years on alternative energy projects such as the production of methanol, ethanol and polysilicon.

Korea Economic Daily:
- SK Telecom Co. plans to acquire Sprint Nextel Corp.(S), the third-largest US mobile phone services business.

Bisnis Indonesia:
- At least 49 companies have received approval from Indonesia’s Investment Coordinating Board for plants that make biofuels.

Xinhua News Agency:
- The membership of China’s ruling Communist Party rose last year by 2.64 million to 72.39 million people.

Late Buy/Sell Recommendations
Citigroup:
- Financial players have now firmly moved ahead of refining as the main near-term driver of oil prices accounting for over $10 of the move higher since the start of the year versus over $7 for refining. Open interest increased 4% last week to a record 1.5 mm, while net speculators also reached an all-time high. We remain of the view that ex transitory factors, the upcoming shift to winter gasoline and restart of several major refineries are events that need to pass before adopting a more bullish stance on oil.
- Reiterated Buy on (GGC), target $23.
- Upgraded (DTV) to Buy, raised target to $30.

Citigroup:
- Rated (URBN) Underweight, target $18.
- Rated (ANF) Underweight, target $62.

Night Trading
Asian Indices are -.25% to +.25% on average.
S&P 500 indicated -.03%.
NASDAQ 100 indicated unch.

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
- (AYI)/.88
- (CHTT)/.77
- (ETP)/.69
- (ETE)/.34
- (GBX)/.45
- (HELE)/.30
- (PBG)/.63

Upcoming Splits
- (FTK) 2-for-1
- (TPL) 5-for-1

Economic Releases
10:00 am EST
- Wholesale Inventories for May are estimated to rise .4% versus a .3% gain in April.

Other Potential Market Movers
- The Fed’s Bernanke speaking, weekly retail sales reports, E3, CE Unterberg Towbin Emerging Growth Conference, CIBC Consumer Growth Conference, Roth Capital Semi Conference and Kaufman Brothers Defense Tech Conference could also impact trading today.

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