Monday, October 15, 2007

Tuesday Watch

Late-Night Headlines
- Fed Chairman Bernanke said the housing slump will be a “significant drag” on US growth into next year, though evidence of a broader impact on spending is limited.
- Bankers fro Kohlberg Kravis Roberts met with investors today to revive bond sales for Energy Future Holdings, formerly TXU Corp., and First Data Corp.(FDC), seizing on signs of life in the high-yield debt market.
- China Citic Group, an investment arm of the nation’s cabinet, is bidding for a stake in Bear Stearns(BSC), a senior government official said.

- Contact Energy Ltd., New Zealand’s biggest publicly traded energy company, may spend as much as $1.5 billion building the nation’s largest wind farm to help reduce its reliance on gas-fired generation.

Wall Street Journal:
- Americans Win Nobel Prize in Economics.
- China craze continues, nervously. Some warning signs may be beginning to emerge.

NY Times:
- Video Chat Services Aims to Follow YouTube’s Path.
- 1,200 Marketers Can’t Be Wrong: The Future Is in Consumer Behavior.
- Investor Corner: Don’t Let Bad News Scare You Off Market.
- Inside Fox Business News.

- Santa, take note: Computers top wish lists.

Financial Times:
- Google(GOOG) on Monday sought to take back some of the moral high ground in its tussle with traditional media companies as it claimed to have made significant progress with a new technology designed to block copyrighted video from its YouTube subsidiary.

China Daily:
- The growth of nuclear power in China and India over the next two decades will outpace other countries, a senior International Atomic Energy Agency(IAEA) official said Monday. “In China, in India, you have very definite plans for increasing the nuclear capacity six to ten times for 20 years, this is really fast growth.”

Late Buy/Sell Recommendations

- Maintain Buy on (T) and (DISH). 65% chance T buys DISH within 12 months. See $65 per share for DISH on acquisition.

Morgan Stanley:
- Reiterated Overweight on (GILD), target raised to $56.

Night Trading
Asian Indices are -.75% to +.75% on average.
S&P 500 futures -.04%.
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
- (DAL)/.41
- (DPZ)/.23
- (FRX)/.79
- (JNJ)/.99
- (KEY)/.73
- (PII)/1.02
- (RF)/.69
- (STT)/.93
- (USB)/.66
- (WFC)/.69
- (CSX)/.62
- (INTC)/.30
- (IBM)/1.68
- (LLTC)/.39
- (STX)/.64
- (YHOO)/.08
- (ILMN)/.19

Upcoming Splits
- (DKS) 2-for-1

Economic Releases
9:00 am EST
- Net Long-term TIC Flows for August are estimated to rise to $60.0 billion versus $19.2 billion in July.

9:15 am EST
- Industrial Production for September is estimated to rise .1% versus a .2% gain in August.
- Capacity Utilization for September is estimated to fall to 82.1% versus 82.2% in August.

1:00 pm EST
- The NAHB Housing Market Index for October is estimated to fall to 19 versus 20 in September.

Other Potential Market Movers
- The weekly retail sales reports, (TESO) analyst meeting, (VQ) analyst meeting and Wachovia Consumer Growth Conference could also impact trading today.

BOTTOM LINE: Asian indices are mostly lower, weighed down by financial stocks in the region. I expect US equities to open modestly lower and to rally into the afternoon, finishing mixed. The Portfolio is 75% net long heading into the day.

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