Tuesday Watch

Late-Night Headlines
Bloomberg:
- Treasury Secretary Henry Paulson said his department will soon issue a report with suggestions on how to lower US corporate taxes, which he called “relatively high.”
- Forest Labs(FRX) and Mylan Inc.(MYL) won US approval for a new medicine for high blood pressure after 2 ½ years of delays.
- China is studying extra lending curbs to prevent overheating in the world’s fastest-growing major economy, according to a central bank official.
- The Federal Reserve will make it harder for lenders to charge fees for early repayment of subprime mortgages, according to consumer advocates and a regulator.

MarketWatch.com:
- NetSuite IPO highlights hot software space. Dutch-auction method, Ellison backing expected to increase attention.
- When economic historians tally up the global winners and losers of the 2007 subprime mortgage meltdown, the dollar will be in the loser column – but it’s not likely to stay there throughout the year to come.
- Tech in 2008: Steady, solid growth. Analysts say tech will benefit from utility computing, virtualization trends.

BusinessWeek.com:
- Innovation Predictions 2008.
- Asia-Pacific to Spend $154 Billion on IT. China and India will lead the charge, says research firm IDC, with government spending and green IT initiatives fueling some of the momentum.

USA Today.com:
- Gasoline prices under $3 a gallon, government says.

Reuters:
- President Fidel Castro suggested he doesn’t intend to hold on to power in Cuba and will make way for younger leaders.

Financial Times:
- There is no limit to the amount of money the Federal Home Loan Bank System can lend to support the mortgage finance industry as long as investors are willing to keep on buying its debt at moderate prices, said the system’s regulator.

Late Buy/Sell Recommendations
Citigroup:
- Reiterated Buy on (GM), target $41.

Night Trading
Asian Indices are -.75% to +.50% on average.
S&P 500 futures +.38%.
NASDAQ 100 futures +.23%.

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
- (BBY)/.41
- (GS)/6.34
- (DRI)/.50
- (HOV)/-1.63
- (TTWO)/-.08
- (PRX)/.22
- (PAY)/.37
- (LDK)/.36
- (PALM)/-.10
- (FDS)/.58

Upcoming Splits
- None of note

Economic Releases
8:30 am EST
- Housing Starts for November are estimated to fall to 1179K versus 1229K in October.
- Building Permits for November are estimated to fall to 1150K versus 1170K in October.

Other Potential Market Movers
- The Fed governors meeting on the mortgage situation, weekly retail sales reports, (CHH) analyst meeting, (ALO) analyst meeting, (CBLI) investor update and (BCR) analyst meeting could also impact trading today.

BOTTOM LINE: Asian indices are mixed as gains in financial shares are offsetting losses in commodity stocks in the region. I expect US equities to open mixed and to rally into the afternoon, finishing modestly higher. The Portfolio is 75% net long heading into the day.