Wednesday, December 12, 2007

Thursday Watch

Late-Night Headlines
Bloomberg:
- Bill Gross, manager of the world’s biggest bond fund, said a plan by the Federal Reserve and European central banks to alleviate a global credit crunch will help break the reluctance among banks to lend.
- China’s industrial production grew at the slowest pace this year, suggesting weaker export growth and government curbs on lending are starting to cool the world’s fastest-growing major economy.

- The risk of Asia-Pacific companies, including National Australia Bank Ltd., defaulting on their debt fell after the Federal Reserve announced a joint effort with four other central banks to alleviate a credit squeeze.

Wall Street Journal:
- In the biggest coordinated show of international financial force since Sept. 11, 2001, the Federal Reserve yesterday joined four other central banks in a plan aimed at coaxing banks to lend more readily at a time when fear has seized up world credit markts.

BusinessWeek.com:
- Holiday Shoppers Plan to Flock Online.

CNNMoney.com:
- Despite the day-to-day turmoil, the stock market damage has been limited, with the Dow and S&P 500 clinging to levels not far from record highs.
- GM dominates ‘Car of the Year’ nominee list. General Motors products capture four of six nominations in two categories for prestigious auto journalists’ award.

IBD:
- Host Of Comparison-Shopping Web Sites Emerge.

USA Today.com:
- China talks introduce world of import controls.

Globeandmail.com:
- Even as many investors fret that US consumers could slow spending sharply, possibly tipping the US into recession, Tobias Levkovich, chief US equity strategist at Citigroup Global Markets, recommends a look at US retailing stocks, along with media issues, given what he considers are those groups’ attractive valuations.

Late Buy/Sell Recommendations
Citigroup:

- Reiterated Buy on (CCE), target $31.

CSFB:
- Reiterated Outperform on (T), raised target to $50.

Night Trading
Asian Indices are -1.50% to unch. on average.
S&P 500 futures -.15%.
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
- (COST)/.59
- (LEH)/1.44
- (JOSB)/.33
- (CIEN)/.41
- (NOVL)/.04
- (LEAP)/-.04
- (ZQK)/.53

Upcoming Splits
- (DNR) 2-for-1

Economic Releases
8:30 am EST

- The Producer Price Index for November is estimated to rise 1.5% versus a .1% gain in October.
- The PPI Ex Food & Energy for November is estimated to rise .2% versus unch. in October.
- Advance Retail Sales for November are estimated to rise .6% versus a .2% gain in October.
- Retail Sales Less Autos for November are estimated to rise .6% versus a .2% gain in October.
- Initial Jobless Claims for this week are estimated to fall to 335K versus 338K the prior week.
- Continuing Claims are estimated at 2599K versus 2599K prior.

10:00 am EST
- Business Inventories for October are estimated to rise .3% versus a .4% gain in September.

Other Potential Market Movers
- The weekly EIA natural gas inventory data, (PBG) investor day, (AMD) analyst day, (SMG) analyst day, (ZGEN) analyst meeting, (JAV) analyst meeting, (UTX) analyst meeting, Thomas Weisel Telecom Technologies of Tomorrow Conference, Merrill Lynch Growth Industrial Conference and RBC Healthcare Conference 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 75% net long heading into the day.

No comments: