Friday Watch

Late-Night Headlines
Bloomberg:
- Sharp Corp., Japan’s biggest maker of liquid-crystal display televisions, climbed to the higher in more than a month on the Tokyo Stock Exchange after UBS AG raised its rating to “buy,” citing demand for large panels.
- Investors added $466 million to high-yield corporate bond funds, the biggest inflow in more than two years, JPMorgan Chase(JPM) said, citing figures from AMG Data Services. Net inflows in the week ended September 26 compared with net outflows of $32 million a week earlier and withdrawals of $154 million in the week ended September 12, according to a JPMorgan report yesterday.
- Blackstone Group LP(BX) and other private-equity firms will accumulate more pension-fund money than real-estate and hedge funds within three years, a Citigroup survey showed.
- Japan’s industrial output surged at the fastest pace in almost four years and household spending rebounded, signaling the economy may weather a US slowdown.

MarketWatch.com:
- Lenders are back in business after winning concessions.

NY Times:
- Bush Moves to Ease Flight Delays.

CNNMoney.com:
- Real estate investors are betting on bargains in depressed markets they think are ready to bounce back.

CNBC.com:
- Fed’s Mishkin Says Inflation Is Low Thanks to Policy.

Late Buy/Sell Recommendations
Citigroup:
- Reiterated Buy on (VZ), target $49.
- Reiterated Buy on (DVA), target $75.
- Reiterated Buy on (ZION), target $89.

BMO Capital:
- Rated (GILD) Outperform, target $51.
- Rated (VRTX) Outperform, target $44.
- Rated (PHRM) Outperform, target $57.
- Rated (MOGN) Outperform, target $33.
- Rated (MEDX) Underperform, target $11.

Business Week:
- Time Warner Telecom(TWTC), a provider of voice and Internet services for businesses, shows potential for “fast growth,” citing Joan Lappin, president of Gramercy Capital Management. She bought the stock at $5 and expects it to reach $35 in 18 months.
- Plum Creek Timber(PCL), a real estate investment trust that owns US timberland, could reach $60 a share after land purchases in Montana and Wisconsin, citing Benjamin Segal, president of Winchester Capital Management.
- Universal Electronics(UEIC), the maker of remote controls for TVs and other appliances, is likely to expand in Asia after signing a contract with PCCW Ltd. Investment firm B. Riley’s Michael Coady said the company, which is a client, may see its stock increase 31% within a year.

Night Trading
Asian Indices are unch. to +.75% on average.
S&P 500 futures -.11%.
NASDAQ 100 futures -.21%.

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
- (AZZ)/.48

Upcoming Splits
- (CLDA) 3-for-2
- (MNRO) 3-for-2
- (PH) 3-for-2
- (SLP) 2-for-1
- (BCSI) 2-for-1
- (JCI) 3-for-1
- (TAP) 2-for-1

Economic Releases
8:30 am EST
- Personal Income for August is estimated to rise .4% versus a .5% gain in July.
- Personal Spending for August is estimated to rise .4% versus a .4% increase in July.
- The PCE Core for August is estimated to rise .1% versus a .1% gain in July.

9:45 am EST
-The Chicago Purchasing Manager Index for September is estimated to fall to 53.0 versus 53.8 in August.

10:00 am EST
- Construction Spending for August is estimated to fall .3% versus a .4% decline in July.
- Final Univ. of Mich. Consumer Confidence for September is estimated at 84.0 versus a prior estimate of 83.8.

Other Potential Market Movers
- The Fed’s Lockhart speaking, Fed’s Yellen speaking, Fed’s Poole speaking, Fed’s Mishkin speaking, NAPM-Milwaukee, (PRX) analyst meeting and JPMorgan Federal IT Services Forum could also impact trading today.

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