Thursday, August 02, 2007

Friday Watch

Late-Night Headlines
Bloomberg:
- Countrywide Financial(CFC), the biggest US mortgage lender, said it has “significant” sources of short-term funding after the slump in demand for loans pushed some rivals toward bankruptcy.
- Bond insurers, including Radian Asset Assurance and ACA Capital Holdings, have enough capital to protect their credit ratings against a “highly stressed” scenario for subprime mortgages originated in 2006, Standard & Poor’s credit analysts said in a research report.
- One measure of the US money supply rose by $8.1 billion in the week that ended July 23, according to Federal Reserve statistics released in Washington. That left M2 growing at an annual rate of 6.1% for the past 52 weeks.
- China, which may surpass the US to become the second-largest gold producer this year, mined 15% more of the precious metal in the first half as higher prices prompted companies to boost output.
- The yen headed for a weekly decline versus the US dollar as investors resumed purchase of riskier assets funded by loans in the currency.
- Japanese exporter shares advanced after better-than-forecast earnings in the US lifted indexes there and eased investor concern that the subprime loan problem will derail growth in Japan’s largest export market.
- Toyota Motor’s(TM) plug-in electric car may have less than half the range of a competing vehicle planned by General Motors(GM), people with knowledge of both companies’ development programs said.

Wall Street Journal:
- MRU Holdings(UNCL), also known as MyRichUncle, is using the student-loan industry’s conflict of interest scandal to set itself apart and increase business.

NY Times:
- Ford Motor(F) wants to sell its Jaguar and Land Rover brands by Sept. 30 and its Volvo unit by year’s end.
- Is the Dance Over? Citigroup Is Upbeat.

Reuters:
- Fed’s Kroszner: Broader economy unhurt by subprime.

Late Buy/Sell Recommendations
Citigroup:
- Reiterated Buy on (EXPE), target raised to $32.
- Downgraded (TLB) to Sell, target $16.
- Reiterated Buy on (CVS), target $43.
- Reiterated Buy on (GME), target $46.
- Reiterated Buy on (ADBL), target $13.

Morgan Stanley:
- UAL Corp.(UAUA), the owner of United Airlines, is a potential takeover target for rival carriers or a private equity firm. The company can earn about $4 billion in free cash flow over the next four years, making it attractive to private equity, citing Credit Suisse analyst Daniel McKenzie. .

Night Trading

Asian Indices are unch. to +1.0% on average.
S&P 500 futures -.16%.
NASDAQ 100 futures -.14%.

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
- (PG)/.66
- (WY)/.39

Upcoming Splits
- None of note

Economic Releases
8:30 am EST

- The Change in Non-farm Payrolls for July is estimated at 127K versus 312K in June.
- The Unemployment Rate for July is estimated at 4.5% versus 4.5% in June.
- Average Hourly Earnings for July are estimated to rise by .3% versus a .3% gain in June.

10:00 am EST
- The ISM Non-Manufacturing for July is estimated at 59.0 versus 60.7 in June.

Other Potential Market Movers
- None of note

BOTTOM LINE: Asian indices are mostly higher, boosted by technology and automaker stocks in the region. I expect US equities to open modestly lower and to rally into the afternoon, finishing mixed. The Portfolio is 75% net long heading into the day.

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