Friday Watch

Late-Night Headlines
Bloomberg:
- Japan’s consumer prices declined for a sixth straight month in July, signaling the world’s second-largest economy has yet to beat deflation.
- The yen is falling against the dollar and the euro as speculation the Bank of Japan will refrain from raising interest rates next month spurred fund managers to send money abroad in search of higher returns.
- Federal Reserve daily average discount window lending to banks rose by $115 million in the past week to an average $1.32 billion, as banks used the central bank’s liquidity backstop.
- Dell Inc. posted profit and sales that beat analysts’ estimates after getting a boost in PC orders from retailers including Wal-Mart Stores(WMT).
- Mexican police evacuated the nation’s tallest skyscraper, the 59-story Torre Mayor in Mexico City, after a bomb threat and later found an explosive device in a car parked underground.
- Former Senator Fred Thompson, after months of flirting with a possible presidential run, will enter the 2008 Republican nomination contest next week with a Sept. 6 Internet announcement and five-day campaign tour through Iowa, New Hampshire and South Carolina, his organization said today.
- John Lipsky, first deputy managing director of the International Monetary Fund, said Federal Reserve Chairman Ben S. Bernanke will likely avoid offering a direction on interest-rate policy at the central bank’s biggest conference.
- US Equity Preview.

Wall Street Journal:
- The SEC has sent letters to about 300 US companies seeking information on executive pay not disclosed in proxy statements.

USAToday.com:
- Some homeowners with risky “subprime” adjustable-rate mortgages will be able to refinance before they lose their home to foreclosure with the help of steps President Bush will announce Friday, senior administration officials said Thursday night.
- Toys R Us is recalling thousands of art sets made in China due to excessive levels of lead in some black watercolor paints.

CNNMoney.com:
- Google(GOOG), Microsoft(MSFT) and eBay(EBAY) are looking for engineers who can think on their feet. Here’s how they find them.

Late Buy/Sell Recommendations
Citigroup:
- Raised (QLGC) to Neutral, target $14.
- Reiterated Buy on (MON), target $77.

Night Trading
Asian Indices are +1.0% to +1.25% on average.
S&P 500 futures +.88%.
NASDAQ 100 futures +.67%.

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
- (SKIL)/.07
- (UNFI)/.34

Upcoming Splits
- (NEOG) 3-for-2

Economic Releases
8:30 am EST
- Personal Income for July is estimated to rise .3% versus a .4% gain in June.
- Personal Spending for July is estimated to rise .3% versus a .1% gain in June.
- The PCE Core for July is estimated to rise .2% versus a .1% gain in June.

9:45 am EST
- The Chicago Purchasing Manager Index for August is estimated to fall to 53.0 versus 53.4 in July.

10:00 am EST
- The Fed’s Bernanke addresses the annual Kansas City Fed symposium in Jackson Hole, Wyo.
- Factory Orders for July are estimated to rise 3.3% versus a .6% gain in June.
- Final Univ. of Mich. Consumer Confidence for August is estimated to fall to 82.5 versus a prior estimate of 83.3.

Other Potential Market Movers
- None of note

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