Tuesday Watch

Late-Night Headlines
Bloomberg:
- BHP Billiton Ltd.(BHP) posted record annual production in eight of its 19 main commodities, setting up for its largest yearly profit.
- Suncor Energy said its oil-sands production is returning to full strength after a 50-day shutdown at a Canadian processing plant.
- French President Nicolas Sarkozy, Deutsche Telecom AG shareholders and American lawyers are laying the groundwork to make Europe the next battleground for US-style class-action lawsuits.
- Newmont Mining Corp.(NEM) needs to rebuild its credibility with investors and may consider takeovers, CEO Richard T. O’Brien said.
- Midwest Air Group’s(MEH) largest investor, hedge fund Octavian Management LLC, renewed its call fro the carrier to “immediately engage” with AirTran Holdings about AirTran’s hostile takeover offer.
- Pakistan told the US to refrain from any military action on its territory against al-Qaeda members, saying Pakistani security forces are responsible for anti-terrorist operations.

Wall Street Journal:
- Foreign governments, flush with cash and no longer content with the meager returns to be had on safe but low-yielding investments like Treasurys, are becoming increasingly aggressive players on the equity front.
- With states around the country working on bills to force their public pension funds to unload shares of foreign companies doing business in Iran, a coalition of large public funds has begun pressuring companies to reconsider their ties to that nation.

NY Times:
- So it seems as Virgin Atlantic Airways and British Airways are indicating that they may compete with four start-up carriers for a market that no one knew existed just a few years ago: all-business-class flights.

TheStreet.com:
- Huge iPhone Fees Juice Apple

USA Today:
- Gasoline prices fall to 3-month low

MarketWatch.com:
- Managers see M&A activity bidding up stock prices. Individual investors likely to move off sidelines over next three months.

Financial Times:
- Crude prices ‘could be poised for rapid fall’ Crude oil prices fell more than $1/bbl. At one stage yesterday as hedge funds took profits after their rise to near-record levels.
- Baugur, the Icelandic investment group that has bought up much of the UK shopping scene, is turning its attention to the US luxury retail sector, with a $250 million investment in Saks(SKS), the department store chain.

Economic Daily News:
- Taiwan’s central bank may raise benchmark interest rates before its regular scheduled quarterly meeting.

Australian:
- James Packer’s Publishing & Broadcasting and partners proposed building the tallest tower in the US for their Crown Las Vegas casino.

China Securities Journal:
- China should focus on using interest rate increases to curb rising investment and asset prices, according to a research note by the nation’s top economic planner.

Xinhua News Agency:
- Chinese propaganda officials signaled increased scrutiny of the media after the government said a television report showing cardboard being used as an ingredient in steamed buns was faked. The reporter on the story, Zi Beijia, has been arrested and three other Beijing Television employees have been fired over the report, which showed cardboard being used as a substitute for pork.

Late Buy/Sell Recommendations
Citigroup:
- Reiterated Buy on (AKAM), target $68.
- Reiterated Buy on (MRK), target $61.

Night Trading
Asian Indices are +.25% to +.75% on average.
S&P 500 futures -.14%.
NASDAQ 100 futures -.19%.

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
- (AFL)/.81
- (AKS)/.68
- (AMZN)/.25
- (T)/.67
- (BIIB)/.63
- (BJS)/.56
- (BOW)/-.75
- (BNI)/1.23
- (CDWC)/.98
- (CEC)/.34
- (CTX)/-.06
- (CERN)/.41
- (CAKE)/.31
- (CB)/1.38
- (CME)/3.66
- (CFC)/.91
- (DPZ)/.24
- (LLY)/.82
- (EMC)/.16
- (ENR)/.83
- (ESV)/1.65
- (ILMN)/.13
- (JBLU)/.11
- (KMB)/1.03
- (LRCX)/1.17
- (LM)/1.24
- (LMT)/1.53
- (MCD)/.71
- (NBR)/.81
- (NOC)/1.24
- (PNRA)/.39
- (PEP)/.89
- (RJF)/.53
- (SWK)/1.02
- (TLAB)/.06
- (TIE)/.40
- (UPS)/1.03
- (X)/2.35
- (XTO)/1.13

Upcoming Splits
- (DIOD) 3-for-2
- (GMCR) 3-for-1

Economic Releases
- None of note

Other Potential Market Movers
- The Fed’s Mishkin speaking, Fed’s Poole speaking, Richmond Fed Manufacturing Index and weekly retail sales reports could also impact trading today.

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