Morning Buy/Sell Recommendations

Goldman Sachs:
- Reiterated Outperform on BSX and Underperform on UIS.

Smith Barney:
- Sees modest EPS upside at TYC, EMR, ROK and CBE.
- Reiterated Buy on NMG/A and JCP.
- Reiterated Buy on LPX, target $33.
- Reiterated Buy on LRCX, target $38.
- Said to Buy Semi Equipment stocks aggressively on pullback.
- Reiterated Buy on ROP, target $79.
- Reiterated Sell on GM, target $24.
- Reiterated Buy on BIIB, target $42.

Merrill Lynch:
- Raised RHI to Buy, target $32.
- Raised GDW to Buy, target $73.
- Raised CFC to Buy, target $43.
- Cut DRL to Sell.

Lehman Brothers:
- Raised STJ to Overweight, target $43.
- Rated SAFC, CB, ALL Overweight and MMC, AOC Underweight.

Oppenheimer:
- Raised BXG to Buy, target $17.
- Rated VLI Buy.
- Rated EPD Buy.
- Rated MMP Buy.

JP Morgan:
- Reiterated Overweight on SBL, NVTL, PTEN.
- Cut BBY to Underweight.

CSFB:
- Raised QCOM to Outperform, target $45.

Bear Stearns:
- Rated KERX Outperform, target $18.

UBS:
- Cut CHIR to Reduce, target $32.
- Cut NWAC to Reduce.

Prudential:
- Raised AMD to Overweight, target $25.
- Rated VFC Overweight.

CIBC:
- Rated OSTK Sector Underperform.
- Rated BIVN Sector Outperform, target $12.
- Raised MNT to Sector Outperform, target $43.

Links of Interest

Market Internals
Movers & Shakers
NYSE OrderTrac
I-Watch Sector Overview
NYSE Unusual Volume
NASDAQ Unusual Volume
NASDAQ 100 Heatmap
DJIA Quick Charts
Chart Toppers
Hot Spots
Option Dragon
Real-time Intraday Chart/Quote

Thursday Watch

Late-Night Headlines
Bloomberg:
- The US dollar is rising against the yen and euro after the International Monetary Fund said the US economy will outpace the euro-zone and Japan this year and next.

Wall Street Journal:
- General Motors was asked to provide the SEC with documents related to transactions with Delphi Corp.

Financial Times:
- Newspaper editors should "grasp" the "fast-developing reality" of the effect of growing Internet use on the print industry, citing News Corp. Chairman Rupert Murdoch.

China Daily:
- China aims to triple trade with Arab states in the next five years.

Late Buy/Sell Recommendations
Goldman Sachs:
- Reiterated Outperform on GE and DHR.

Night Trading
Asian Indices are -1.25% to -.25% on average.
S&P 500 indicated +.01%.
NASDAQ 100 indicated +.03%.

Morning Preview
US AM Market Call
NASDAQ 100 Pre-Market Indicator/Heat Map
Pre-market Commentary
Before the Bell CNBC Video(bottom right)
Asian Indices
European Indices
Top 20 Business Stories
In Play
Bond Ticker
Analyst Actions
Macro Calls
Rasmussen Consumer/Investor Daily Indices
CNBC Guest Schedule

Earnings of Note
Company/EPS Estimate
SCH/.12
CREE/.25
DRL/.81
DJ/.10
ETN/1.23
EMMS/-.02
FDC/.50
FITB/.73
GTK/.33
JBHT/.51
LSTR/.27
PEP/.50
PGR/1.89
RMBS/.05
LUV/.05
SUNW/.00
UNH/1.13

Splits
None of note

Economic Releases
8:30 EST
- Initial Jobless Claims for last week are estimated to fall to 330K versus 334K the prior week.
- Continuing Claims are estimated to fall to 2651K versus 2688K prior.
- Business Inventories for February are estimated to rise .5% versus a .9% increase in January.

BOTTOM LINE: Asian indices are lower as exporters in the region decline on fears over slowing demand. I expect US equities to open modestly higher on a bounce from today's sell-off, however stocks may weaken later in the day on continuing worries over slowing growth. The Portfolio is 25% net long heading into tomorrow.

Wednesday Close

Indices
S&P 500 1,173.79 -1.18%
DJIA 10,403.93 -.99%
NASDAQ 1,974.37 -1.55%
Russell 2000 602.54 -1.71%
DJ Wilshire 5000 11,553.90 -1.21%
S&P Barra Growth 566.94 -1.04%
S&P Barra Value 602.49 -1.31%
Morgan Stanley Consumer 585.52 -.17%
Morgan Stanley Cyclical 729.50 -1.86%
Morgan Stanley Technology 444.88 -1.74%
Transports 3,548.34 -2.68%
Utilities 367.26 -.70%
Put/Call .94 -20.34%
NYSE Arms 1.65 +71.79%
Volatility(VIX) 13.31 +17.79%
ISE Sentiment 175.00 +11.46%
US Dollar 84.40 -.05%
CRB 300.83 -.59%

Futures Spot Prices
Crude Oil 50.34 +.24%
Unleaded Gasoline 148.15 -.19%
Natural Gas 6.98 +.04%
Heating Oil 144.80 +.42%
Gold 430.90 -.02%
Base Metals 125.38 -3.26%
Copper 145.30 -.45%
10-year US Treasury Yield 4.36% +.19%

Leading Sectors
Drugs +1.37%
Hospitals +.22%
Tobacco +.18%

Lagging Sectors
Energy -2.46%
Semis -2.71%
Steel -3.38%

After-hours Movers
AMD +3.2% after missing 1Q estimates and saying it will spin off its memory-chip unit in an IPO that’s worth as much as $600M.
LRCX +3.5% after beating 3Q estimates.
MNT +10.4% after a government panel recommend that US regulators approve Mentor’s silicone breast implants for sale, after the group yesterday voted to reject Inamed’s similar device.
IFIN -3.13% after missing 1Q estimates.
PLAY -4.4% on AAPL report.
SYNA -4.59% on AAPL report.
IMDC -5.05% on MNT news.
MOGN -6.83% after missing 1Q estimates.

Evening Review
Detailed Market Summary
Daily ETF Performance
Style Performance
Market Wrap CNBC Video(bottom right)
Futures Recap
S&P 500 Gallery View
Timely Economic Charts
PM Market Call
Real-time/After-hours Stock Quote
In Play

Afternoon Recommendations
Goldman Sachs:
- Rated ARO Outperform, target $41.

Afternoon/Evening Headlines
Bloomberg:
- Verdant Power LLC, a closely held developer of hydroelectric plants, won approval from US energy regulators to install six 16-foot power-generating turbines at the bottom of New York City’s East River.
- Apple Computer said second-quarter earnings soared more than six-fold as the devices propelled sales and helped win new customers for more profitable Macintosh computers.

Handelsblatt:
- DaimlerChrysler AG expects its US commercial-vehicle business to grow sales by 20% over the next 18 months.

Xinhua:
- China called Japan’s decision to grant Japanese companies energy drilling rights in the East China Sea “a provocation.”

BOTTOM LINE: US stocks finished sharply lower today as long-term interest rates bounced and worries over slowing economic growth and earnings shortfalls rose. The Portfolio finished lower on losses in my Financial, Homebuilding and Tech longs. I added a few new shorts from various sectors in the afternoon, thus leaving the Portfolio 25% net long. One of my new shorts is GMR and I am using a $49.50 stop-loss on this position. The tone of the market weakened meaningfully into the afternoon as the advance/decline finished sharply lower, almost every sector fell and volume was modest. Measures of investor anxiety remained mixed into the afternoon. Overall, today’s market action was negative, considering the fall in energy prices, recent losses and the market’s inability to follow-through on yesterday’s advance.

Mid-day Scoreboard

Indices
S&P 500 1,177.11 -.90%
DJIA 10,441.28 -.64%
NASDAQ 1,981.76 -1.17%
Russell 2000 604.91 -1.32%
DJ Wilshire 5000 11,586.50 -.93%
S&P Barra Growth 568.20 -.82%
S&P Barra Value 604.37 -1.0%
Morgan Stanley Consumer 585.65 -.15%
Morgan Stanley Cyclical 731.76 -1.55%
Morgan Stanley Technology 446.57 -1.37%
Transports 3,563.20 -2.28%
Utilities 367.55 -.62%
Put/Call .79 -33.05%
NYSE Arms 1.45 +50.50%
Volatility(VIX) 12.42 +9.91%
ISE Sentiment 183.00 +16.56%
US Dollar 84.45 +.01%
CRB 300.51 -.69%

Futures Spot Prices
Crude Oil 50.25 -3.10%
Unleaded Gasoline 148.20 -3.44%
Natural Gas 7.02 -1.04%
Heating Oil 143.90 -1.79%
Gold 431.10 +.42%
Base Metals 125.38 -3.26%
Copper 145.70 -2.61%
10-year US Treasury Yield 4.39% +.79%

Leading Sectors
Drugs +1.26%
Tobacco +.33%
Hospitals +.26%

Lagging Sectors
Transports -2.14%
Semis -2.15%
Steel -3.33%

BOTTOM LINE: US stocks are lower mid-day on worries over slowing growth and a bounce in long-term interest rates. The Portfolio is slightly lower on losses in my Homebuilding, Tech and Financial longs. I exited a number of Tech and Homebuilding longs this morning, thus leaving the Portfolio’s market exposure 50% net long. The tone of the market is negative as the advance/decline line is weak, almost every sector is lower and volume is modest. Measures of investor anxiety are mixed. Today’s overall market action is negative, considering the decline in commodity prices, the market’s oversold state and its inability to add to yesterday’s gains. Investors appear to be factoring in the possibility of a recession sooner than I had anticipated. With commodity prices breaking down and economic data coming in bellow expectations, Fed comments will become even more important. Any sign that the pace of rate hikes will slow should spur equities. I believe this will occur over the coming weeks. I continue to expect lower energy prices, low interest rates and modestly improving employment prospects to boost economic growth in the second half. I expect US stocks to trade mixed into the close as lower energy prices offset worries over slowing growth.

Today's Headlines

Bloomberg:
- ASML Holding NV, Europe’s largest maker of equipment used to make semiconductors, forecast a drop in orders this quarter from the previous three months.
- Abu Dhabi, holder of the world’s fifth-largest oil reserves, will offer stakes in its five biggest fields to foreign companies such as Exxon Mobil to boost output capacity by 25%.
- The OECD plans to cut its growth estimates for this year and next because of weaker-than-expected economies in Japan and Europe.
- Joseph Perella and Terry Meguid, Morgan Stanley’s top two investment bankers, plan to resign as the exodus of senior managers from the world’s No. 2 securities firm gathers pace.
- Siebel Systems said Michael Lawrie stepped down as CEO, less than a year after raking the reins from Thomas Siebel.
- Merck said it probably earned first-quarter profit of 62 cents a share, more than the company had forecast.
- Crude oil is falling more than $1 a barrel to a seven-week low after an Energy Dept. report showed that US inventories climbed for a ninth consecutive week as OPEC boosted production.

Wall Street Journal:
- California officials expect the state to be able to handle summer electricity demand if temperatures are normal, but a hot season could mean shortages in the south of the state.
- A food workers’ union said it filed claims of unfair labor practices against Wal-Mart Stores to press the retailer to release documents.
- The US Congress is due to start a debate today on the Central American Free Trade Agreement.
- The House Energy and Commerce Committee gave federal regulators primary authority over the location of liquefied natural gas terminals on US coasts.
- The SEC will postpone the deadline for requiring companies to start expensing employee stock options.
- Amazon.com had an injunction imposed against it lifted by a state appellate court in a dispute with Toys “R” Us over exclusivity rights.

Dow Jones:
- Brijot Imaging Systems, a security company that has licensed millimeter-wave technology from Lockheed Martin, plans to deliver camera systems that can spot weapons on people from 45 feet.

NY Times:
- The rising cost of steel is forcing US developers to scale back or drop projects.
- Yahoo! said it will give free Web sites to small businesses.
- US companies reported about a 12% average return on pension investments last year.

Metal Bulletin:
- Copper production at a mine in Chile owned by Anglo American Plc and Falconbridge Ltd. dropped to 65% of capacity because of technical problems.

San Francisco Chronicle:
- A California legislative committee approved a bill that would allow terminally ill patients in the state to hasten their death.

Tehran Times:
- Iran is China’s third-largest supplier of crude oil, after Saudi Arabia and Angola.