Monday, August 27, 2007

Tuesday Watch

Late-Night Headlines
- Volatility on currency options fell further from the eight-year high touched this month as concern eases that a US housing slump is spreading.
- Billionaire investor Warren Buffett’s Berkshire Hathaway(BRK/A) boosted its stake in Burlington Northern Santa Fe Corp.(BNI), the second-largest US railroad, by 24%.

- Asustek Computer shares rose the most in a month after the Taiwan computer-parts maker more than doubled its second-quarter profit on laptop orders.
- A new international university aims to improve technology education in North Korea as tensions appear to be easing between the reclusive communist country and the rest of the world.
- This bull’s pawing the ground. Commentary: Band sees market rising as much as 30% by November 2008.
- Gas prices hit 5-month low heading into holiday weekend.

NY Times:
- Late to Web Retailing? There’s Still Money There.
- Bigger Than Las Vegas? That’s Macao’s Bet.

- End in Sight for US Subprime Crisis?

Financial Times:
- Renaissance Technologies, the $30 billion hedge fund run by billionaire mathematician James Simons, is considering selling a minority stake to a big outside investor or group of investors in coming weeks.
- The number of foreign students accepted by US graduate schools has risen for a third consecutive year, according to a survey to be released on Tuesday.

Times of India:
- Dr. Reddy’s Laboratories Ltd., India’s biggest drugmaker, may buy US-based Bradley Pharmaceuticals(BDY) for as much as $300 million.

Late Buy/Sell Recommendations
- Reiterated Buy on (SYY), target $39.

Night Trading
Asian Indices are unch. to +.50% on average.
S&P 500 futures -.07%.
NASDAQ 100 futures +.01%.

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
Rasmussen Business/Economy Polling
CNBC Guest Schedule

Earnings of Note
Company/EPS Estimate
- (ARUN)/.00
- (BGP)/-.33
- (CMED)/.25
- (COCO)/.03
- (DY)/.32
- (MCRS)/.70
- (NX)/1.00
- (SAFM)/1.93
- (SMTC)/.15
- (NCTY)/.36

Upcoming Splits
- SSYS 2-for-1
- TISI 2-for-1
- FTI 2-for-1

Economic Releases
10:00 am EST

- Consumer Confidence for August is estimated to fall to 104.0 versus 112.6 in July.

2:00 pm EST
- Minutes of August 7 FOMC Meeting.

Other Potential Market Movers
- The Case-Shiller 2Q Home Price Index, Richmond Fed Manufacturing Index, weekly retail sales reports and (NLC) Annual Investor Day could also impact trading today.

BOTTOM LINE: Asian indices are mostly higher, boosted by real estate 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.

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