Thursday Watch

Late-Night Headlines
Bloomberg:
- The Senate Finance Committee adopted a one-year extension of tax credits for renewable electricity production as part of an economic stimulus measure approved today.
- An economic-stimulus plan approved by a US Senate committee would provide a windfall worth millions of dollars to the same banks, lenders and homebuilders that some say helped cause the subprime-mortgage crisis.
- S&P lowered or may cut ratings on $534 billion of residential mortgage securities and collateralized debt obligations.
- Amazon.com(AMZN), the world’s largest Internet retailer, said fourth-quarter profit more than doubled on higher holiday sales of electronics, video games and toys. The shares fell 12% in late US trading after it forecast operating income that trailed analysts’ estimates.
- Goldman Sachs(GS) and Fidelity Intl. will need to pare holdings in India’s commodity exchanges after the government dropped plans to allow overseas investors to own larger stakes.
- Crude oil fell for the first time in six days after a US government report showed that gasoline demand fell to its lowest in two years.
- Japan’s wages fell at the fastest pace in more than three years in December as bonuses plunged.
- Lenovo Group Ltd., Asia’s second-largest maker of personal computers, tripled profit after increasing sales to customers in the US, India and China.
- Barack Obama said his party needs to select a presidential nominee who will break with the past, in a veiled swipe today at his leading opponent for the Democratic Party’s nomination, Hillary Clinton.
- Romney Questions McCain’s Conservative Credentials in Debate.

CNBC:
- Latest Rate Cut Could Energize Housing Market.
- US Mortgage Applications Near 4-Year High: MBA

CNNMoney.com:
- More than half of the respondents in a recent survey said that prices for gasoline and home heating oil were their number one economic concern for 2008, topping recession, foreclosure, and unemployment.
- Survey: 49% of US tweens buy music on iTunes.

Forbes.com:
- America’s Fastest-Growing Metros.

USA Today.com:
- 58% of delinquent homeowners don’t know their lenders may offer ways to help them keep their homes, and 56% don’t know that free counseling exists to help them, a survey found.

Financial Times:
- John Thain, Merrill Lynch’s(MER) new CEO, said he expected individual credit insurers would receive capital infusions from investors, but that it would be difficult to craft an “industry-wide” bail-out for the beleaguered guarantors.

Late Buy/Sell Recommendations
Citigroup:
- Reiterated Buy on (OI), target $55.

Night Trading
Asian Indices are -.50% to +1.5% on average.
S&P 500 futures -.36%.
NASDAQ 100 futures -.87%.

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Earnings of Note
Company/EPS Estimate
- (MA)/.73
- (MAT)/.73
- (LEA)/.67
- (GR)/.92
- (BMY)/.34
- (LLL)/1.61
- (CVS)/.55
- (HOT)/.66
- (BKC)/.32
- (UA)/.31
- (RTN)/.91
- (ATK)/1.59
- (HOLX)/.49
- (MCK)/.80
- (VRSN)/.29
- (CA)/.26
- (DRIV)/.53
- (MNST)/.38
- (ISRG)/1.05
- (CERN)/.51
- (OMCL)/.27
- (DLB)/.34
- (GOOG)/4.45
- (ERTS)/.91
- (ICE)/.92
- (GMCR)/.11
- (ACS)/.83
- (SAF)/1.44
- (BTU)/.79
- (WYE)/.79
- (MBI)/-2.98
- (PG)/.97
- (ALTR)/.19
- (BUD)/.32
- (CELG)/.31
- (CL)/.89
- (IMCL)/.26

Upcoming Splits
- (PEG) 2-for-1

Economic Releases
8:30 am EST
- Personal Income for December is estimated to rise .4% versus a .4% gain in November.
- Personal Spending for December is estimated to rise .1% versus a 1.1% increase in November.
- The PCE Core for December is estimated to rise .2% versus .2% gain in November.
- Initial Jobless Claims for this week are estimated to rise to 320K versus 301K the prior week.
- Continuing Claims are estimated to rise to 2675K versus 2672K prior.
- The 4Q Employment Cost Index is estimated to rise .8% versus a .8% gain in 3Q.

9:45 am EST
- The Chicago Purchasing Manager report for January is estimated to fall to 52.0 versus 56.4 in December.

Other Potential Market Movers
- The weekly EIA natural gas inventory data, NAPM-Milwaukee, Help Wanted Index, (TEC) Analyst Meeting, Wachovia Healthcare Conference, Banc of America Gaming Conference and Raymond James Growth Airline Conference could also impacting trading today.

BOTTOM LINE: Asian indices are mostly higher, boosted by technology 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.