Thursday Watch

Late-Night Headlines
Bloomberg:
- The euro fell for a third day against the US dollar and the yen on speculation European Central Bank President Jean-Claude Trichet will signal borrowing costs may need to be cut to bolster growth.
- MBIA Inc.(MBI), plans to raise an additional $750 million by selling about 50.3 million common shares, bolstering capital in an attempt to retail its AAA rating.
- Federal Reserve Chairman Ben S. Bernanke said the central bank is “closely monitoring developments” with bond insurers, including the potential effects of ratings downgrades for banks.
- Cisco Systems(CSCO) forecast third-quarter sales that fell short of analysts’ estimates, spurring a 7.4% drop in the stock.
- Fadel Gheit, Managing Director of Oppenheimer, Says Oil Market ‘Bubble’ May End.
- Robert Toll Says Housing Market ‘Might Be Bottoming’: (video).
- US mortgage servicers helped 545,000 subprime borrowers stay in their homes in the second half of last year by modifying loans or setting up repayment plans.
- Ethanol in Chicago and three sport markets declined after a government report showed that gasoline inventories rose to a nine-year high.

Wall Street Journal:
- Airlines Merger Talks May Lead to Double Wedding.
- Candidates Mobilize As Race Grinds On.

MarketWatch.com:
- Investment banks say capital is still available. Merrill, Lehman give update on exposure to bond insurers.
- AT&T(T) expanding high-speed wireless network. Move likely foreshadows introduction of updated iPhone.

CNBC.com:
- Recession Nerves = Great Buying Opportunity.

NY Times:
- Clinton Lent Campaign $5 Million, May Lend More.

IBD:
- EBay(EBAY) Could gain In A Yahoo Acquisition.

Financial Times:
- The SEC is looking at whether Societe Generale violated US securities laws as it unwound and revealed its loss from Jerome Kerviel’s allegedly rogue derivatives trades.
- S&P unveils ratings overhaul.

National Post:
- Buffett ‘Huge Bull’ on US Economy.

Late Buy/Sell Recommendations
Citigroup:
- Maintained Buy on (WXS), target $49.

Night Trading
Asian Indices are -1.0% to unch. on average.
S&P 500 futures -.65%.
NASDAQ 100 futures -1.53%.

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
- (DO)/1.67
- (ASF)/.48
- (MDC)/-.65
- (MLNM)/.13
- (TBL)/.50
- (DHI)/-.45
- (EXPE)/.32
- (IP)/.64
- (LH)/1.00
- (AN)/.32
- (ENER)//-.13
- (COV)/.56
- (MCO)/.47
- (IT)/.36
- (AET)/.88
- (PEP)/.80
- (APA)/2.48
- (PBI)/.69
- (GNW)/.68
- (MFE)/.44
- (BMC)/.50
- (SINA)/.32
- (OMTR)/.08
- (AG)/.61
- (BWA)/.70
- (TRA)/.66

Upcoming Splits
- None of note

Economic Releases
8:30 am EST
- Initial Jobless Claims for this week are estimated to fall to 342K versus 375K the prior week.
- Continuing Claims are estimated to fall to 2715K versus 2716K prior.

10:00 am EST
- Pending Home Sales for December are estimated to fall 1.0% versus a 2.6% decline in November.

3:00 pm EST
- Consumer Credit for December is estimated at $7.4 billion versus $15.4 billion in November.

Other Potential Market Movers
- The Fed’s Fisher speaking, Fed’s Lockhart speaking, weekly EIA natural gas inventory report, (ELY) analyst meeting, (PETD) analyst meeting, Thomas Weisel Tech/Telecom/Internet Conference, CSFB Energy Conference, CSFB Financial Services Forum and Merrill Global Pharma/Biotech/Medical Device Conference could also impact trading today.

BOTTOM LINE: Asian indices are lower, weighed down by automaker and technology stocks in the region. I expect US equities to open modestly lower and to rally into the afternoon, finishing mixed. The Portfolio is 50% net long heading into the day.