Tuesday Watch

Late-Night Headlines
Bloomberg:
- Victor Shum, senior principal at Purvin & Gertz, says $100 Oil ‘Unsunstainable’ (video)
- Sales of gold scrap in India, the world’s biggest buyer of the precious metal, have increased as record prices prompt housewives and other consumers to recycle more old jewelry, curbing demand for new supplies of bullion. Purchases by India in the three months ended December, the traditional peak consumption season, slumped 77% from a year earlier to 40 tons, the Bombay Bullion Assoc. Ltd. said last week.
- Federal Reserve Chairman Ben Bernanke told US House Speaker Nancy Pelosi during a private meeting today that he agrees some economic stimulus is needed.
- Taiwan’s stocks surged, pushing the island’s benchmark to its biggest two-day rally in 3 ½ years, on speculation the opposition Kuomintang party’s landslide victory in parliamentary elections will ease curbs on Chinese investment.
- AT&T(T), Verizon Wirless(VZ) and Google Inc.(GOOG) won clearance to bid for airwaves next week in a US government auction that aims to spur innovation in the mobile-phone market and raise as much as $15 billion.
- Japan’s bonds may rise as investors start betting that the central bank will cut rather than raise interest rates, Fukoku Mutual Life Insurance said.
- Samsung Profit Beats Estimates on Display Earnings.
- LG.Philips Gains After Company Has Record Net Income.

Wall Street Journal:
- The Heritage Foundation ranked the United States as the world’s fourth most free economy.

MarketWatch.com:
- How bad is inflation, really? The bond market is not betting that inflation will get worse.

CNNMoney.com:
- Detroit’s ‘new’ idea: Cars Americans want.
- Countrywide bankruptcy ‘a malicious rumor’

Forbes.com:
- Banks’ Kitchen-Sink Quarter.

IBD:
- Google(GOOG), Microsoft(MSFT) Look To Connect In 411 Phone Busines.

USA Today.com:
- Toyota pursues alternative fuel-saving technology.

Reuters:
- Hedge fund Lone Pine reports American Eagle(AEO) stake.
- Citigroup(C) is likely to announce on Tuesday a significant dividend cut, at least $10 billion of new capital and a writedown of as much as $20 billion.

Financial Times:
- Britain will be told by the European Commission to increase its use of renewable energy from about 2% to as much as 14% by 2020, citing EC and UK officials.

Late Buy/Sell Recommendations
Citigroup:
- Maintained Buy on (FIC), target lowered to $37.
- Reiterated Buy on (AAPL), target $215.
- Reiterated Buy on (IBM), raised estimates, target $142.

Night Trading
Asian Indices are -1.0% to -.25% on average.
S&P 500 futures -.35%.
NASDAQ 100 futures -.15%.

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
- (USB)/.59
- (STT)/1.35
- (FRX)/.75
- (C)/-.97
- (MI)/.18
- (INTC)/.40
- (LLTC)/.41
- (FUL)/.52
- (CPKI)/.22
- (CBSH)/.77

Upcoming Splits
- (STAN) 2-for-1

Economic Releases
8:30 am EST
- The Producer Price Index for December is estimated to rise .2% versus a 3.2% gain in November.
- The PPI Ex Food & Energy for December is estimated to rise .2% versus a .4% gain in November.
- Advance Retail Sales for December are estimated unch. versus a 1.2% increase in November.
- Retail Sales Less Autos for December are estimated to fall .1% versus a 1.8% decline in November.
- Empire Manufacturing for January is estimated to fall to 10.0 versus 10.3 in December.

10:00 am EST
- Business Inventories for November are estimated to rise .4% versus a .1% gain in October.

Other Potential Market Movers
- The weekly retail sales reports, (SVR) Analyst Meeting, (RBA) Analyst Meeting, Cowen Consumer Conference and National Retail Federation Conference could also impact trading today.

BOTTOM LINE: Asian indices are mostly lower, weighed down by automaker and real estate 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.