Wednesday Watch

Late-Night Headlines
Bloomberg:
- Bear Stearns(BSC) told investors in one of its hedge funds that they won’t get any money back after creditors forced it to sell assets at depressed prices, according to a letter sent by the firm.

NY Times:
- IBM(IBM) Showing That Giants Can Be Nimble.

MarketWatch.com:
- US markets stage technically valid breakout.
- Electronic shopping and shopping for electronics are expected to experience the biggest boosts in back-to-school spending this year, the National Retail Federation said Tuesday.

Reuters:
- Hedge fund firm Black Pearl Asset Management on Tuesday said it will launch portfolios to snatch up cheap subprime mortgage securities battered by the current crisis.

Financial Times:
- China’s air pollution will sicken 20 million people a year with respiratory diseases by 2020, citing estimates from the Organization for Economic Cooperation and Development. An OECD report projects that pollution will also cause 600,000 premature deaths in urban areas and 9 million person-years of work loss due to illness by that date.
- Market insight: Be bullish and watch the bears impale themselves. Headlines herald a US prime-time, subprime mortgage implosion leading to an upcoming credit crunch crisis – destined to sink shares, raise interest rates and impale economies. But this is demonstrable nonsense.

Xinhua News Agency:
- China’s economy showed a “more obvious” trend from fast growth to overheating in the first half of 2007, citing a legislative committee. An “excessive” trade surplus, lending growth and investment expansion were still “prominent” problems in the economy during the first half, the committee said.

Late Buy/Sell Recommendations
Citigroup:
- Reiterated Buy on (WFC), target $40.
- Reiterated Buy on (TSCO), target $65.50.
- Reiterated Buy on (SBUX), target $40.

Keybanc:
- Rated (WAB), (RAIL) and (GBX) Buy.

Night Trading
Asian Indices are -.50% to +.25% on average.
S&P 500 futures -.56%.
NASDAQ 100 futures -.62%.

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
- (ABT)/.68
- (ADS)/.83
- (ALL)/1.80
- (MO)/1.13
- (DOX)/.51
- (ASD)/1.08
- (BLK)/1.67
- (CTAS)/.54
- (CTXS)/.36
- (CMA)/1.22
- (DAL)/.62
- (DST)/.84
- (EBAY)/.32
- (GCI)/1.20
- (RX)/.39
- (IBM)/1.47
- (JCI)/1.98
- (JPM)/1.09
- (JNPR)/.20
- (LRW)/.35
- (MI)/.85
- (NE)/2.14
- (PFE)/.50
- (PJC)/.74
- (LUV)/.22
- (STJ)/.43
- (TER)/.12
- (UTX)/1.15
- (WM)/.89

Upcoming Splits
- (IOSP) 2-for-1

Economic Releases
8:30 am EST
- The Consumer Price Index for June is estimated to rise .1% versus a .7% gain in May.
- The CPI Ex Food & Energy for June is estimated to rise .2% versus a .1% gain in May.
- Housing Starts for June are estimated to fall to 1450K versus 1474K in May.
- Building Permits for June are estimated to fall to 1480K versus 1520K in May.

10:00 am EST
- Bernanke Report on Economy & Fed Policy.

10:30 am EST
- Bloomberg estimates call for a weekly crude oil drawdown of -500,000 barrels versus a -1,462,000 barrel decline the prior week. Gasoline supplies are expected to rise by 850,000 barrels versus a 1,143,000 barrel build the prior week. Distillate inventories are estimated to rise by 900,000 barrels versus a 760,000 barrel increase the prior week. Finally, Refinery Utilization is expected to rises by .23% versus a .14% increase the prior week.

Other Potential Market Movers
- The weekly Mortgage Applications report, (LRCX) Analyst Meeting, AG Edwards E&P Conference and SEMICON West could also impact trading today.

BOTTOM LINE: Asian indices are mostly lower, weighed down by mining 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 100% net long heading into the day.