Thursday, August 26, 2010

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.

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