Wednesday Watch

Late-Night Headlines
Bloomberg:
- The world price of raw sugar, among the worst performing commodities this year, may fall further as oversupply will probably persist until 2009, Peter Baron, executive director of the International Sugar Organization, said.
- Brazil’s state-owned oil and gas company Petrobras announced Tuesday that it expects to start large-scale production of ethanol from cellulose between 2015 and 2020.
- The share of US residents classified as poor fell .3% to 12.3%, the Census Bureau said today. Median household income adjusted for inflation rose to $48,200.

NY Times:
- Politicians, regulators and financial specialists outside the US are seeking a role in the oversight of American markets, banks and rating agencies after recent problems related to subprime mortgages.

CNNMoney.com:
- Google: A safe haven stock?

Reuters:
- Problems in the US subprime mortgage market are unlikely to push the US economy into a recession over the next 12 months, the top economist for a leading US business group said on Tuesday.

Nikkei:
- Toshiba Corp. plans to speed up production of sensors used in mobile-phone cameras by a year to meet demand as handsets use higher resolution optics.

Late Buy/Sell Recommendations
Citigroup:
- Reiterated Buy on (MRVL), target $22.

Morgan Stanley:
- Reiterated Overweight on (STX), target $33.

Night Trading
Asian Indices are -2.25% to -1.25% on average.
S&P 500 futures -.19%.
NASDAQ 100 futures +.03%.

Morning Preview
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Earnings of Note
Company/EPS Estimate
- (BIG)/.12
- (BWS)/.29
- (CHS)/.26
- (CTRN)/.05
- (CWTR)/.12
- (PSS)/.44
- (DLTR)/.33
- (ENER)/-.12
- (FRED)/.09
- (JAS)/-.66
- (JOYG)/.70
- (NOVL)/.02
- (SIGM)/.35
- (TIVO)/-.05
- (WSM)/.16

Upcoming Splits
- (FTI) 2-for-1

Economic Releases
10:30 am EST
- Bloomberg consensus estimates call for a weekly crude oil drawdown of -600,000 barrels versus a 1,890,000 barrel increase the prior week. Gasoline supplies are expected to fall by -2,500,000 barrels versus a -5,709,000 barrel decline the prior week. Distillate inventories are estimated to rise by 800,000 barrels versus a 1,356,000 barrel increase the prior week. Finally, refinery utilization is estimated to remain unch. versus a -.2% decline the prior week.

Other Potential Market Movers
- The weekly MBA Mortgage Applications report could also impact trading today.

BOTTOM LINE: Asian indices are lower, weighed down by financial 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 50% net long heading into the day.