Wednesday Watch

Late-Night Headlines
Bloomberg:
- Andrew Liveris, CEO of Dow Chemical(DOW), Doesn’t See Recession for US in 2008. (video)
- Copper Jumps the Most in Three Weeks as US Growth Concerns Ease.
- Uranium fell to a three-month low after Australia and Kazakhstan, two of the world’s three-biggest producers, reported higher output.
- Lehman Brothers Holdings(LEH) boosted the dividend on its stock by 13%, extending a 12-year streak of increases after posting smaller mortgage losses than rivals.
- The FBI is investigating 14 corporations for possible accounting fraud and other crimes related to the subprime lending crisis, officials said.
- Yahoo! Inc.(YHOO) said fourth-quarter profit fell 23% and projected revenue that missed some estimates after some customers switched to Google Inc.(GOOG) for online searches. The shares fell 10% in extended trading.
- JB Hunt Transport Services(JBHT) reported fourth quarter revenue rose 11% from year ago levels. The stock jumped 6.1% in after-hours trading.
- China deployed half a million soldiers to help restore transport links, power supplies and clear debris as the nation’s worst snowstorms in 50 years stranded migrant workers before the Lunar New Year holidays.

Wall Street Journal:
- Ford Motor(F) plans to bring its European commercial van, known as Transit Connect, to the US.
- The SEC and the China Banking Regulatory Commission will sign an agreement to allow Chinese banks to develop US mutual funds. The agreement is expected to be signed in the next few days and will let Chinese citizens invest savings in US markets.
- Arizona Sen. John McCain won Florida’s presidential primary, according to media projections, thrusting him into the forefront of the Republican race.

MarketWatch.com:
- The NY Insurance Department said on Tuesday that it hopes to have enough time to resolve bond insurer problems, ahead of possible decisions by rating agencies S&P and Moody’s Investors Service to downgrade leading companies in the $2.4 trillion industry.

CNBC:
- French Trader: Bosses Knew About Risky Trades.

Forbes.com:
- WaMu CEO Sees Boost From Fed Rate Cuts.

MSNBC.com:
- Former NYC mayor Rudy Giuliani will endorse Senator John McCain as the Republican nominee for president on Wednesday.

USA Today.com:
- Independent hotels cater to elite business travelers.
- Airlines blame fuel prices for losses but see solid demand.

Australian:
- Rio Tinto Group’s(RTP) advisers say BHP Billiton(BHP) can afford to increase its takeover offer to as much as five shares for one.

Business Times:
- Government of Singapore Investment Corp. could still invest in another distressed bank if the deal is worthwhile, citing Tony Tan, deputy chairman of the fund.

Late Buy/Sell Recommendations
Citigroup:
- Reiterated Buy on (LEA), target $42.
- Reiterated Buy on (GKSR), target $49.
- Reiterated Buy (STLD), target $66.

Night Trading
Asian Indices are -1.0% to unch. on average.
S&P 500 futures -.27%.
NASDAQ 100 futures -.30%.

Morning Preview
US AM Market Call
NASDAQ 100 Pre-Market Indicator/Heat Map
Pre-market Commentary
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Before the Bell CNBC Video(bottom right)
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Today in IBD
In Play
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Economic Preview/Calendar
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Rasmussen Business/Economy Polling
CNBC Guest Schedule

Earnings of Note
Company/EPS Estimate
- (D)/.55
- (AGN)/.58
- (BHI)/1.28
- (SEE)/.43
- (RCL)/.34
- (NCR)/.52
- (K)/.44
- (CEG)/1.42
- (WWW)/.44
- (MRK)/.73
- (KFT)/.44
- (EK)/.50
- (HES)/1.72
- (SO)/.24
- (BA)/1.33
- (UPS)/1.13
- (ITW)/.84
- (PHM)/-.76
- (SBUX)/ .27
- (AFL)/.80
- (NVLS)/.37
- (MUR)/1.24
- (ADS)/.68
- (AMZN)/.47
- (MBI)/-2.98
- (OI)/.42
- (MO)/.97

Upcoming Splits
- (KWK) 2-for-1

Economic Releases
8:30 am EST
- Advance 4Q GDP is estimated to rise 1.2% versus a 4.9% gain in 3Q.
- Advance 4Q Personal Consumption is estimated to rise 2.6% versus a 2.8% gain in 3Q.
- Advance 4Q GDP Price Index is estimated to rise 2.6% versus a 1.0% gain in 3Q.
- Advance 4Q Core PCE is estimated to rise 2.5% versus a 2.0% gain in 3Q.

2:15 pm EST
- The FOMC is expected to lower the benchmark fed funds rate to 3.0% from 3.5%.

Other Potential Market Movers
- The ADP Employment Change report, weekly EIA energy inventory report, weekly MBA mortgage applications report, (NNDS) Investor Day, (BLC) Analyst Meeting, (VDSI) Investor Conference and (CLWR) Investor Day could also impacting trading today.

BOTTOM LINE: Asian indices are mostly lower, weighed down by shipbuilding and utility 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.