Thursday Watch

Evening Recommendations
Citigroup:

• Reiterated Buy on (ABX), target $50.

Morgan Stanley:

• Rated (CREE) Overweight, target $75. We forecast 50+% annual growth rates. CREE is 34% below its 52-week high; we believe the sell-off is overdone as our channel checks indicate the demand remains strong.
  

Night Trading

• Asian equity indices are +.25% to +.75% on average.
• Asia Ex-Japan Investment Grade CDS Index 130.0 unch.
  
• Asia Pacific Sovereign CDS Index 123.0 +2.75 basis points.
  
• S&P 500 futures +.21%.
  
• NASDAQ 100 futures +.21%.

Morning Preview Links

Earnings of Note
Company/Estimate

• (PDCO)/.44
• (GRB)/.02
• (IRF)/.26
• (MCRS)/.41
• (NOVL)/.07
• (OVTI)/.35
• (JCG)/.46

Economic Releases
8:30 am EST

• Initial Jobless Claims for last week are estimated to fall to 490K versus 500K the prior week.
• Continuing Claims are estimated to rise to 4495K versus 4478K prior.
  

Upcoming Splits

• None of note
  

Other Potential Market Movers

• The 2Q Mortgage Delinquencies report, 2Q MBA Mortgage Foreclosures report, RPX Composite Index for June, $29 Billion 5-Year Treasury Notes auction, (FLR) analyst meeting and the EnerCom Oil & Gas Conference could also impact trading today.
  

BOTTOM LINE: Asian indices are higher, boosted by technology and commodity shares in the region. I expect US stocks to open mixed and to rally into the afternoon, finishing modestly higher. The Portfolio is 100% net long heading into the day.