Friday Watch

Late-Night Headlines
Bloomberg:
- Ambac Financial Group(ABK) rose in extended NY trading on speculation billionaire Wilbur Ross may buy the company.
- Former Federal Reserve Chairman Alan Greenspan said the US housing slump, which fueled fears of a possible recession, may soon be over.
- Buffett, Flowers Purchases May Mean Bottom Is Near for Insurers.
- Wal-Mart Stores(WMT) CEO Scott discussed with automakers the possibility of selling gasoline-electric hybrid cars and plug-in automobiles at the retailer’s stores.
- Microsoft Corp.(MSFT), the world’s largest software maker, posted a second-quarter profit that surpassed analysts’ estimates and raised forecasts for the year after selling more Xbox 360 games and Windows programs.
- Jane Snorek, who helps manage more than $70 billion in assets at First American Funds, recommends Microsoft(MSFT), Apple(AAPL). (video)
- Federal Reserve policy makers didn’t know about a $7.2 billion trading loss at Societe Generale SA prior to their Jan. 21 decision to reduce interest rates, said a Fed official.
- South Korea’s economy expanded a faster than expected 1.5% in the fourth quarter, stoked by the biggest increase in exports in four years and a pickup in business investment.
- Renesas Technology Corp., the world’s largest privately held chipmaker, plans to boost sales of semiconductors used to control power flow and convert sound into data, helped by demand from carmakers. Sales of so-called discrete and analog chips will probably rise 70% to $1.6 billion in the 12 months ending March 2011.
- The yen headed for a weekly decline against all of the world’s 16 most-active currencies after global stocks gained, encouraging investors to add to holdings of higher-yielding assets funded in Japan.
- IndyMac Bancorp. Inc.(IMB), the second-biggest US mortgage company, has a “good shot” at profitability this year, CEO Perry said. The shares soared 25% in after-hours trading.
- Broadcom(BRCM) reported net revenue for the fourth quarter rose 11.2% from year ago levels. The shares surged 13.3% in after-hours trading.
- Microchip Tech(MCHP) reported net sales rose .6% over the year ago quarter. The shares jumped 6.4% in extended trading.
- ScanSource(SCSC) said second quarter sales rose 17%, led by “record results in our North American and International POS/Bar code units.” The shares rocketed 27% higher in after-hours trading.
- LG Electronics, Asia’s second-largest mobile-phone maker, rose for a third day in Seoul trading after Morgan Stanley and Goldman Sachs Group(GS) raised their price estimates, citing the earnings outlook for 2008.
- Asian stocks advanced, led by technology companies and miners, after US lawmakers agreed on a plan to boost spending and South Korea’s economy grew faster than economists had expected.

Wall Street Journal:
- Washington Sets $150 Billion Plan To Jolt Economy. Package Includes Boost For Big Mortgages, Rebates for Taxpayers.
- Leading Republican presidential contenders agreed in a campaign debate Thursday night that a newly minted agreement on an economic stimulus package marks a good start, but does not do enough to cut taxes.

MarketWatch.com:
- Thousands of dollars may be heading your way. A family of five could collect as much as $2,100 thanks to stimulus package.
- Societe Generale’s letter to customers, investors.

CNBC:
- Highest Yielding Stocks On The Dow.
- Jobs Report Signals Stronger Economy.

NY Times:
- The FDA intends to post inspectors to embassies and consulates in the developing world in hopes of improving the quality of imported food and medicines.

BusinessWeek.com:
- S&P’s latest screen finds five names with eye-popping return on equity – and strong buy ratings from its analysts.
- Google’s(GOOG) Big Mobile Move in Japan.

CNNMoney.com:
- Stop whining about sovereign wealth funds.

Forbes.com:
- The 100 top tech deal makers.
- The Golden Google(GOOG) Touch.

MSNBC.com:
- This week’s surprise rate cut by the Federal Reserve not only held Wall Street and investors in thrall, it’s also kicked into high gear a rush by homeowners across the country to refinance their mortgages at today’s lower rates. In general, a mortgage is deemed "refinanceable" if it is 0.40 percentage point above current average mortgage rates. And the recent drops in mortgage rates have made up to 7 million mortgages, or more than 70 percent of U.S. mortgages, eligible for refinancing, according to Tony Crescenzi, a fixed-income analyst at Miller Tabak.

USA Today.com:
- A shortage of long-haul drivers is spurring trucking companies across the USA to try to recast trucking’s nomadic image and recruit more women, minorities, retired military veterans and those who want a second career.
- Researchers at the Venter Institute in Rockville, Md., have completed phase two of a three-part plan to create synthetic life.
- Rival predicts Delta will likely merge.

Reuters:
- Battered tech darlings look cheap.
- Romney questions McCain’s wisdom on US economy.

Financial Times:
- Private equity firms that are considering setting up their own credit insurers have been studying the experience of competitor Warburg Pincus, which invested $1 billion in troubled MBIA(MBI) late last year.

TimesOnline:
- Did rogue trader set off world market panic?

China Daily:
- Industrial and Commercial Bank of China, China’s largest bank, is prepared to acquire more foreign banks, possibly this year. ICBC will continue its global hunt for new acquisitions in the coming years, with an emphasis on emerging markets. US financial institutions may also be on the ICBC’s shopping list.

Late Buy/Sell Recommendations
Citigroup:
- Reiterated Buy on (PTV), target $35.
- Maintained Buy on (TER), target $17.
- Reiterated Buy on (MSFT), target $41.
- Reiterated Buy on (MHP), target $59.

CSFB:
- Maintained Outperform on NUE, target $75.

Night Trading
Asian Indices are +1.0% to +3.5% on average.
S&P 500 futures +.24%.
NASDAQ 100 futures +.79%.

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
- (CAT)/1.50
- (FO)/1.43
- (HOG)/.82
- (HON).91
- (IDXX)/.40
- (WFT)/.96
- (GWW)/1.27

Upcoming Splits
- (BTJ) 3-for-2

Economic Releases
- None of note

Other Potential Market Movers
- None of note

BOTTOM LINE: Asian indices are sharply higher, boosted by technology and mining stocks in the region. I expect US equities to open modestly higher and to maintain gains into the afternoon. The Portfolio is 100% net long heading into the day.