Tuesday, October 16, 2007

Wednesday Watch

Late-Night Headlines
- Tiger Woods and PepsiCo’s(PEP) Gatorade unit will develop a line of drinks to be introduced in March, led by a signature brand for the world’s top-ranked golfer. The first product will be called Gatorade Tiger.
- Stahlman of Gartner Says Technology Stocks to ‘Take Off’: Video.
- This year’s accelerating gains in food prices will slow to normal rates of growth in 2008 as farmers increase production of crops such as corn and wheat, Acting US Agriculture Secretary Chuck Conner said.
- Japan’s economic growth may falter because changes to building rules requiring stricter inspections will cause housing starts to slump, analysts said.

Wall Street Journal:
- One in seven hedge-fund managers expect to raise capital in the next two years either through a flotation or the sale of a stake in their firm, before falling fee scales and rising costs squeeze some of them out of business, according to an Ernst & Young survey.
- Disney’s(DIS) $1 Billion Adventure. Planned Five-Year Revamp of Its California-Themed Park Aims to Boost Attendance by Mirroring Neighbor Disneyland.
- As much as 20% of the audience for television’s most popular shows are skipping the commercials.

- A House vote to label the century-old deaths of Armenians as genocide was in jeopardy Tuesday after several Democrats withdrew support and sounded alarms it could cripple US relations with Turkey. The loss of support is a major setback to Democratic House Speaker Nancy Pelosi and other Democratic leaders on Capitol Hill, who have fiercely defended the resolution to Republicans and the Bush administration as a moral imperative in condemning the World War I-era killings of up to 1.5 million Armenians by Ottoman Turks.

- Delta(DAL) could take role in airline mergers, CEO says.

- Congress’ foolish move to declare the massacre of Armenians by the Ottoman Empire a genocide will have an impact far beyond politics. It affects you – both in your pocketbook and in your security.

- Apple’s(AAPL) new operating system to hit stores October 26.

Financial Times:
- Chinese companies are set to be Asia’s most acquisitive in the US or Europe next year, according to a survey of the region’s dealmakers.
- Tata Consultancy Services plans to open two computer services centres in the US in one of the biggest expansions by an Indian information technology outsourcing company in a developed market.
- Toyota received another black eye in North America when Consumer Reports, an influential consumer-advice publication, said its vehicles’ reliability had slipped to the point where its new models can no longer be recommended without owners’ feedback.

- The most extraordinary spectacle of the past week has been the apparent desire of the US Congress to pronounce as genocide the 1915 massacre of Armenians by Turks, even though there is nothing more provocative to Turkey, and no worse time at which to do it.

Late Buy/Sell Recommendations

- Reiterated Buy on (DPZ), target $20.

Night Trading
Asian Indices are -1.0% to unch. on average.
S&P 500 futures +.32%.
NASDAQ 100 futures +.57%.

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
- (AMR)/.75
- (ABT)/.66
- (BLK)/1.90
- (CIT)/1.23
- (CMA)/1.22
- (KO)/.68
- (GCI)/1.00
- (MAN)/1.39
- (MTG)/.61
- (MI)/.83
- (PJC)/.50
- (UTX)/1.16
- (MO)/1.14
- (JPM)/.90
- (ITW)/.87
- (SYK)/.55
- (TER)/.18
- (ALL)/1.70
- (CTXS)/.38
- (ETFC)/.11
- (EBAY)/.33
- (RX)/.40
- (KNX)/.19
- (NE)/1.17
- (WM)/.23
- (BOT)/1.18
- (GRB)/.10
- (KMP)/.42

Upcoming Splits
- (DKS) 2-for-1

Economic Releases
8:30 am EST
- The Consumer Price Index for September is estimated to rise .2% versus a -.1% decline in August.
- The CPI Ex Food & Energy for September is estimated to rise .2% versus a .2% increase in August.
- Housing Starts for September are estimated to fall to 1280K versus 1331K in August.
- Building Permits for September are estimated to fall to 1285K versus 1322K in August.

10:30 am EST
- Bloomberg consensus estimates call for a weekly crude oil build of 1,050,000 barrels versus a -1,674,000 barrel drawdown the prior week. Gasoline supplies are expected to rise by 400,000 barrels versus a 1,675,000 barrel build the prior week. Distillate inventories are estimated to fall by -750,000 barrels versus a -563,000 barrel decline the prior week. Finally, Refinery Utilization is estimated to fall -.25% versus a .33% increase the prior week.

2:00 pm EST
- Fed’s Beige Book

Other Potential Market Movers
- The Fed’s Beige Book report, Fed’s Hoenig speaking, weekly EIA energy inventory report, weekly MBA Mortgage Application report, Bear Stearns Retail Outing 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 mixed and to rally into the afternoon, finishing modestly higher. The Portfolio is 100% net long heading into the day.

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