Wednesday Watch

Late-Night Headlines
Bloomberg:
- The risk of owning corporate bonds fell again as the Federal Reserve said economic expansion will continue, according to credit-default swap traders.
- Cisco Systems(CSCO), the world’s largest maker of computer-networking equipment, said profit rose 25% as customers spent more on high-speed Internet gear. The company forecast sales that beat estimates, sending the shares 6% higher in after-hours trading.
- Priceline.com(PCLN), the online travel agency, reported second-quarter earnings that exceeded analysts’ estimates. The stock soared 10% in extended trading.
- Posco, Asia’s third-biggest steelmaker, cut prices of its stainless steel products for a third time this year after the cost of nickel, a key raw material, declined. Nickel prices have plunged 44% since May 4.
- Australia’s central bank raised its benchmark interest rate a quarter point to the highest in almost 11 years.
- The yen declined on speculation a gain in Asian stocks will give investors confidence to resume borrowing in Japan to buy higher-yielding assets.
- Japanese companies plan to order more machinery in the third quarter to increase production as the global economy expands.

Wall Street Journal:
- Apple’s(AAPL) New iMacs Aim for Windows Users.

MarketWatch.com:
- Pakistan, Venezuela and Nigeria are among the most unstable emerging markets and rank the lowest on Eurasia Group's Global Political Risk Index, a political stability ranking for 24 emerging markets.
- Apple Inc. unveiled new additions to its line of iMacs Tuesday, showing the company's continued presence in the PC space despite the recent hoopla over consumer electronics products such as the iPod and iPhone.

NY Times:
- More Generics Slow the Surge in Drug Prices.
- Cooking Up More Uses for the Leftovers of Biofuel Production.
- The Seattle office market has made a spectacular recovery in the last few years. As a result many real estate investors want to park their money there.

Financial Times:
- Vodafone Group Plc is about to announce that it won’t exercise its right to sell part of its Verizon Communications(VZ) stake, valued at as much as $10 billion.
- Hedge funds hit critical list worldwide.
- A price war took hold of the US gaming market on Tuesday when Microsoft(MSFT) followed Sony’s(SNE) move last month to reduce the price of its core console.

International Finance News:
- China had a $120.9 billion increase in foreign reserves in the first half, most of it due to so-called “hot money,” citing figures from the customs department and the commerce ministry.

Xinhua News Agency:
- China seized more than 6,000 pieces of counterfeit jewelry inscribed with the Tiffany & Co.(TIF) name, citing local customs officials.

Late Buy/Sell Recommendations
Citigroup:
- Cisco Systems’ strong 4Q07 results add confidence to the outlook for communications IC suppliers exposed to the enterprise networking vertical. These are (IDTI), (XLNX) and (ALTR) in our universe.
- Reiterated Buy on (AKAM), target $58.
- Reiterated Sell on (TYC), target lowered to $45.

Morgan Stanley:
- Reiterated Overweight on (EMR), target raised to $54.

Night Trading
Asian Indices are +.25% to +1.75% on average.
S&P 500 futures +.17%.
NASDAQ 100 futures +.46%

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
- (AAP)/.66
- (AIG)/1.61
- (ACF)/.62
- (AQNT)/.20
- (BRL)/.71
- (CELL)/.15
- (CVC)/-.02
- (CECO)/.26
- (FLS)/.86
- (FTO)/1.64
- (GGC)/.26
- (HANS)/.37
- (INSP)/-.11
- (JBX)/.89
- (LAMR)/.21
- (NWS/A)/.27
- (RL)/.85
- (BID)/1.47
- (S)/.22
- (STN)/.56
- (TOL)/.17

Upcoming Splits
- (HCSG) 3-for-2

Economic Releases
10:00 am EST
- Wholesale Inventories for June are estimated to rise .4% versus a .5% gain in May.

10:30 am EST
- Bloomberg consensus estimates call for a weekly crude oil drawdown of -2,750,000 barrels versus a -6,497,000 barrel decline the prior week. Gasoline supplies are expected to rise by 775,000 barrels versus a 586,000 barrel build the prior week. Distillate supplies are estimated to rise by 1,775,000 barrels versus a 2,889,000 barrel build the prior week. Finally, Refinery Utilization is expected to remain unch. versus a 1.96% gain the prior week.

Other Potential Market Movers
- The Fed’s Stern speaking, weekly EIA energy inventory report, weekly MBA Mortgage Applications report, CSFB Electric Equipment & Multi-Industry Conference, RBC Technology Conference and Canaccord Adams Global Growth Conference could also impact trading today.

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