Wednesday Watch

Late-Night Headlines
Bloomberg:
- Crude oil fell for a second day, extending its decline from Monday’s record, after Goldman Sachs(GS), the bank that said in July oil may reach $95 a barrel, told clients it’s “time to take profits.”
- Mapfre SA, Spain’s biggest insurer, said it will acquire Commerce Group(CGI) for $2.2 billion in cash, adding the largest automobile insurer in Massachusetts.
- United Parcel Service(UPS) Adds $2 Billion More for Share Buybacks.

Wall Street Journal:
- Google(GOOG), Verizon Wireless(VZ) Discussing Phone Service.
- News Corp.’s(NWS/A) Fox television network has almost sold out the inventory of advertising space for the upcoming Super Bowl. The increased demand from the media buyers is outpacing past Super Bowls as advertisers seek ways to diminish the effect of digital video recorders.
- Democratic Rivals Target Clinton in Debate.

New York Times:
- GoogleGOOG) and Friends to Gang Up on Facebook.

MarketWatch.com:
- New California regulations may push hedge funds out of state.
- Apple Inc.(AAPL) saw booming sales of the latest version of its operating system over the weekend, which may help boost momentum for the company’s line of Mac computers during the holiday season.

CNNMoney.com:
- Oil: No longer a heavyweight. Higher efficiency, a more diverse energy mix and a more prosperous nation have softened rising oil’s economic punch.

IBD:
- Poll: PC Sales Merry This Christmas.

USA Today.com:
- 3^rd-quarter earnings may not be as bad as they seem.
- Fee fi fo fum: Google(GOOG) smells the blood of Microsoft.

Reuters:
- Dell(DELL) to resume buybacks, files restated results.
- Japan manufacturers PMI falls, pricing power weak.

TimesOnline:
- BP Plc(BP) is in talks with the Abu Dhabi government to find a “green energy” process to generate electricity.

Late Buy/Sell Recommendations
Citigroup:
- Reiterated Buy on (PBI), target $51.

CSFB:
- Reiterated Outperform on (MCK), target $69.

Night Trading
Asian Indices are -.75% to unch. on average.
S&P 500 futures +.01%.
NASDAQ 100 futures -.01%.

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Today in IBD
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Economic Preview/Calendar
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Rasmussen Business/Economy Polling
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Earnings of Note
Company/EPS Estimate
- (CRS)/2.11
- (CLX)/.68
- (CGX)/.92
- (CEG)/1.54
- (FCL)/.05
- (GRMN)/.81
- (HES)/1.37
- (IACI)/.35
- (IDA)/.65
- (IFF)/.70
- (IMA)/.24
- (IRM)/.18
- (JNY)/.34
- (LAZ)/.67
- (MA)/1.42
- (NCR)/.26
- (NEM)/.25
- (NBL)/1.23
- (OCR)/.55
- (PMTC)/.26
- (PPL)/.62
- (SPW)/1.19
- (RIG)/1.99
- (WY)/.49
- (WYN)/.73
- (BYD)/.41
- (KFT)/.41
- (COL)/.88
- (CAI)/.58
- (AAP)/.58
- (AOC)/.59
- (AVB)/.60
- (CNO)/.28
- (FMC)/.64
- (GSF)/1.90
- (JDSU)/.06
- (MET)/1.39
- (PRU)/1.74
- (TK)/.32
- (DOX)/.54
- (BCO)/.64
- (CROX)/.62
- (FBN)/.00
- (GRB)/.11
- (HLT)/.33
- (LNY)/.31
- (MSTR)/1.18
- (TUES)/.03

Upcoming Splits
- (MNRK) 6-for-5

Economic Releases
8:30 am EST
- Advance 3Q GDP is estimated to rise 3.1% versus a 3.8% gain in 2Q.
- Advance 3Q Personal Consumption is estimated to rise 3.2% versus a 1.4% gain in 2Q.
- Advance 3Q GDP Price Index is estimated to rise 2.0% versus a 2.6% gain in 2Q.
- Advance 3Q Core PCE is estimated to rise 1.5% versus a 1.4% increase in 2Q
- The 3Q Employment Cost Index is estimated to rise .9% versus a .9% gain in 2Q.

9:45 am EST
- The Chicago Purchasing Manager report for October is estimated at 53.0 versus 54.2 in September.

10:00 am EST
- Construction Spending for September is estimated to fall .5% versus a .2% gain in August.

10:30 am EST
- Bloomberg consensus estimates call for a weekly crude oil build of 400,000 barrels versus a -5,288,000 barrel drawdown the prior week. Gasoline supplies are expected to fall by -200,000 barrels versus a -1,931,000 barrel decline the prior week. Distillate inventories are estimated to fall by -1,000,000 barrels versus a -1,847,000 barrel decline the prior week. Refinery Utilization is expected to rise by .50% versus a -.21% decline the prior week.

2:15 pm EST
- The Fed is expected to lower the benchmark fed funds rate by 25 basis points to 4.5%.

Other Potential Market Movers
- The ADP Employment Change report, weekly MBA Mortgage Applications report, NAPM-Milwaukee and (GR) analyst meeting could also impact trading today.

BOTTOM LINE: Asian indices are mostly lower, weighed down by commodity 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.