Friday Watch

Late-Night Headlines
Bloomberg:
- General Motors Corp.(GM) will spend more than $500 million to build a new small car in Ohio, part of a campaign to replace slow-selling trucks with more fuel-efficient models just as oil prices begin to retreat from record highs. Chief Executive Officer Rick Wagoner announced the investment today in Lordstown, where GM will assemble the Chevrolet Cruze in 2010. Ford Motor Co., Toyota Motor Corp. and Nissan Motor Co. plan similar moves. The race to supplant trucks with cars echoes the push in the 1990s to add sport-utility vehicle factories as gasoline below $1.25 a gallon made those trucks cheap to drive. The automakers are now planning to shut or reconfigure their truck plants as $4- a-gallon fuel scares buyers away.
- Global cotton consumption will drop in the next year, rather than increase as expected a month ago, because of a decline in China, the world’s biggest user, UK-based research firm Cotlook Ltd. said. The consumption estimate includes a decline of 300,000 tons in China because of rising production costs, a shortage of electricity and an “unfavorable” economic climate, Cotlook said. World production will reach 24.05 million tons, 78,000 tons more than expected last month, as rains improved crop prospects in India, the largest grower after China.
- Dell Inc.(DELL), the third-biggest server maker, posted the biggest gains in the market for computers used to run corporate networks and Web sites last quarter, according to research firm Gartner Inc. Dell's server sales rose 15 percent, compared with an 11.5 percent gain at top-ranked International Business Machines Corp.(IBM) and a 2.9 percent increase at second-place Hewlett-Packard Co.(HPQ), Stamford, Connecticut-based Gartner said today in a statement.
- Gap Inc.(GPS), the largest U.S. clothing retailer, said second-quarter profit rose 51 percent after it discounted fewer jeans and T-shirts. The shares rose 3.6% in after-hours trading.
- Foot Locker(FL) rose 8.3% in extended trading. The owner of more than 3,750 shoe stores said annual profit may profit may be as high as 85 cents a share excluding some charges. Analysts polled by Bloomberg estimated 71 cents on average.

Wall Street Journal:
- Time Warner Inc.’s(TWX) Warner Bros. Pictures plans to make fewer films and spend more money on them following the success of “The Dark Knight,” citing President Jeff Robinov. Robinov wants to release as many as eight movies a year by 2011, many of them centered on characters from the studio’s DC Comics unit.
- Freddie Mac executives are sounding out private-equity firms and other investors about the possibility of buying new common or preferred shares in the mortgage company.

IBD:
- Network General Acquisition Gives NetScout(NTCT) A Good Hand To Play.

CNNMoney.com:
- Job boom could be coming soon. Economists at the Univ. of Michigan predict that 3.5 million jobs will be created in the next two years.

NY Post:
- Barack Obama's long-lost half-brother has surfaced in Kenya - living like a recluse on less than $1 a month and hiding his family ties.

USA Today.com:
- Airline profitability shows progress as fuel costs ease.

Financial Times:
- Investors pulled their money out of Russia in the wake of the Georgia conflict at the fastest rate since the 1998 rouble crisis, new figures showed on Thursday. Russian debt and equity markets have also suffered sharp falls since the conflict began on August 8, with yields on domestic rouble bonds increasing by up to 150 basis points in the last month. The moves come as President Dmitry Medvedev faces pressure from business leaders concerned that the impact of the global credit crisis is starting to be felt in Russia.
- Economic growth has shown scant sign of returning to the eurozone in August with private sector output contracting for the third consecutive month, an influential survey revealed on Thursday. Purchasing managers' indices suggested the 15-country zone remained on the brink of recession, with the performances of Germany and France deteriorating noticeably in August.

TimesOnline:
- The International Olympic Committee has ordered an investigation into mounting allegations that Chinese authorities covered up the true age of their gold-medal winning gymnastics star because she was too young to compete. An IOC official told The Times that because of "discrepancies" that have come to light about the age of He Kexin, the host nation’s darling who won gold in both team and individual events, an official inquiry has been launched that could result in the gymnast being stripped of her medals.
- Russia fighting machine is showing its age, say military analysts.

Livemint.com:
- Apple’s(AAPL) iPhone 3G set to create waves in India. Few diminutive devices have so besotted the world’s imagination in recent times as Apple Inc.’s iPhone. The second edition of the mobile phone officially launches in India on Thursday midnight.

Thanh Nien:
- Many companies listed on Vietnam’s stock exchanges plan to cut their earnings estimates this year because of a slowing economy.

Late Buy/Sell Recommendations
Citigroup:
- Reiterated Buy on (PLCE), target $44.
- Maintain Buy on (HNZ), target $59.
- Reiterated Buy on (TECD), target $45.
- Reiterated Buy on (FE), target $82.

Night Trading
Asian Indices are -.75% to +.25% on average.
S&P 500 futures -.17%.
NASDAQ 100 futures -.20%.

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
Upgrades/Downgrades
Rasmussen Business/Economy Polling

Earnings of Note
Company/EPS Estimate
- (ANN)/.48
- (PERY)/-.02
- (SKIL)/.07

Upcoming Splits
- (SYNA) 3-for-2

Economic Releases
- None of note

Other Potential Market Movers
- None of note

BOTTOM LINE: Asian indices are mostly lower, weighed down by financial shares 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.