Bloomberg:
- On the site of a former oil exchange built during Calgary’s first energy boom almost a century ago, EnCana Corp. plans to build Canada’s tallest office tower in almost two decades.
- Cendant Corp. will split into four parts and said fourth-quarter earnings won’t meet previous forecasts.
- Mittal Steel won an auction today for Ukraine’s biggest steelmaker Kryvorizhstal with a bid of $4.8 billion, allowing it to increase production capacity and cutting its dependence on coal and iron ore producers.
- Europe can control bird flu and prevent the disease from spreading as it has in Asia, the World Health Organization said.
- Global growth in oil demand may slow because Hurricane Katrina and Rita touched a “demand nerve,” prompting people to buy more fuel-efficient cars, seek out alternative energy sources and step up conservation, said Daniel Yergin, chairman of Cambridge Energy Research Associates.
- Hurricane Wilma crossed southern Florida today, knocking down trees and power lines and flooding low-lying areas on a path to Atlantic Ocean. The storm may cause $2 billion to $6 billion in damages, less than two of the four to hit the state last year.
- President Bush is expected to name White House economic adviser Ben Bernanke later today to succeed Alan Greenspan as Federal Reserve chairman.
- Oil, gasoline, and heating oil fell as Hurricane Wilma passed over Florida, missing refineries along the Gulf of Mexico.
Wall Street Journal:
- Computer Sciences may receive a takeover offer from a group of private-equity firms.
- The US Federal Trade Commission is likely to delay approval of a planned fusion of Boeing’s and Lockheed Martin’s rocket programs for the US government.
- Starwood Hotels & Resorts Worldwide, and HCA Inc. are among US companies that have announced stock buybacks at the same time they send back to the US profit earned overseas, under a special one-year tax break.
- UnitedHealth Group is at the forefront of a health care plan based on the idea that people will choose the best care at the lowest price if they have to pay more of the cost themselves.
- Insurance programs set up by Florida, Louisiana, Mississippi and other states to help owners rejected by private companies face higher rates after the unusually large number of hurricanes prompted a surge in claims.
- Tenet Healthcare, the second largest US hospital chain, plans to invest “hundreds of millions” of dollars to rebuild facilities and repair its central New Orleans hospital damaged by Hurricane Katrina.
- Venture capitalists spent $2.56 billion on Internet startups in the quarter ended Sept. 30, up 37% over the same period a year ago.
NY Times:
- The insolvency filing of Refco Inc., the US futures brokerage, was precipitated by a recently hired employee in the controller’s office, who asked why an interest payment that was larger than usual had been made to the company on an outstanding loan.
- Wal-Mart Stores plans to offer more affordable health insurance for its workers.
- The Bush administration is asking China and Central Asian government to deny airspace to flights the US suspects of carrying weapons technology to or from North Korea.
Monday, October 24, 2005
Sunday, October 23, 2005
Monday Watch
Weekend Headlines
Bloomberg:
- Wal-Mart Stores said October sales are rising within its forecast range.
- President Bush said the US will boost efforts to catch and expel people entering the country illegally, and said he will work with Congress to create a program that gives immigrants legal access to jobs.
- Saudi Arabia is likely to generate $163 billion of oil revenue this year, the most in more than two decades, on higher oil prices and more crude exports, said Samba Financial Group.
Barron’s:
- Ben Bernanke, President Bush’s chief economist, is the most likely successor to Alan Greenspan as chairman of the Federal Reserve, money managers said.
- Altria Group could announce early next year that it’s splitting into three companies, provided two pending legal decisions go its way.
NY Times:
- Three of the five groups bidding for Albertson’s are led by investment firms Kohlberg Kravis Roberts, Thomas H. Lee Partners LP and Yucaipa Companies.
- Risk and uncertainty in Iraq attract small engineering, drilling and contracting companies to the country.
- About 30,000 to 50,000 homes in New Orleans, more than one-fourth of the city’s residences, may be demolished because of damage from Hurricane Katrina.
- The number of New York City children in foster care has declined to about 18,000, about half what is was six years ago and at levels not seen since the mid-1980s.
- Iraqis probably approved the nation’s new constitution, citing official partial results from 13 of the country’s 18 provinces and likely results from two others in the Oct. 15 referendum.
- Asian technology stocks, the region’s worst performers this year, may recoup their losses as companies’ earnings reports signal that demand for products such as mobile phones and display screens is rising.
- The US gasoline pump price slid 25 cents in the past two weeks to an average $2.66 a gallon, Tilby Lundberg said, citing her survey of about 7,000 filling stations nationwide. Prices dropped because the refineries shut by Hurricanes Katrina and Rita are recovering and demand is dropping, said Lundberg.
- Hurricane Wilma gained speed ahead of its forecasted arrival in South Florida tomorrow morning after battering Mexico’s Yucatan Peninsula for three days with winds of 100 mils an hour.
Washington Times:
- The White House may have begun making contingency plans for the withdrawal of Harriet Miers’ nomination to the US Supreme Court.
Washington Post:
- US aid sent to earthquake-ravaged Pakistan is improving America’s image in the Muslim country.
- The US views a UN report linking top Syrian officials to the murder of Lebanon’s former prime minister as an opportunity to erode the power of President Bashar Assad and possibly foster democracy in the country.
EE Times:
- iSuppli Corp.’s teardown analysis of Apple Computer’s new video-capable iPod reveals an important new component supplier for the unit, Broadcom Corp.
Financial Times:
- About 55% of Japanese institutional investors put money into hedge funds at the end of last year, compared with 28% of US professional investors and 10% in the UK, citing Greenwich Associates.
- European Union member states are not increasing research and development spending by as much as the US and Asia, citing UK government research.
- General Motors Corp. may increase production of smaller vehicles as more US consumers buy fuel-efficient vehicles due to high energy prices, citing an interview with CEO Wagoner.
- Schering-Plough, maker of the Zetia Cholesterol drug, has “cash flexibility” to be able to plan for deals for new drugs or with other companies.
Sunday Telegraph:
- Ericsson AB and Alcatel SA are leading the race to acquire UK phone-equipment maker Marconi Corp.
Sunday Times:
- Cendant Corp. is considering plans to split itself into four businesses and may make announcement this week.
Observer:
- Roche Holdings AG has been accused by Gilead Sciences of “serious failings” in the production of bird-flu medication Tamiflu.
Weekend Recommendations
Barron's:
- Had positive comments on BSX, CA and VZ.
Goldman Sachs:
- Reiterated Outperform on ECL, SLB and MUR.
- Reiterated Underperform on KEA and UIS.
Night Trading
Asian indices are -.50% to -.25% on average.
S&P 500 indicated +.03%.
NASDAQ 100 indicated unch.
Morning Preview
US AM Market Call
NASDAQ 100 Pre-Market Indicator/Heat Map
Pre-market Commentary
Before the Bell CNBC Video(bottom right)
Global Commentary
Asian Indices
European Indices
Top 20 Business Stories
In Play
Bond Ticker
Daily Stock Events
Macro Calls
Rasmussen Consumer/Investor Daily Indices
CNBC Guest Schedule
Earnings of Note
Company/Estimate
AFL/.64
ALTR/.20
AXP/.70
ACF/.45
ACI/.28
AX/.22
CD/.46
CCU/.38
HCA/.61
KMB/.94
LNCR/.50
MRK/.62
PBI/.66
SGP/.06
TXN/.40
Upcoming Splits
ATVI 4-for-3
Economic Releases
None of note
Bloomberg:
- Wal-Mart Stores said October sales are rising within its forecast range.
- President Bush said the US will boost efforts to catch and expel people entering the country illegally, and said he will work with Congress to create a program that gives immigrants legal access to jobs.
- Saudi Arabia is likely to generate $163 billion of oil revenue this year, the most in more than two decades, on higher oil prices and more crude exports, said Samba Financial Group.
Barron’s:
- Ben Bernanke, President Bush’s chief economist, is the most likely successor to Alan Greenspan as chairman of the Federal Reserve, money managers said.
- Altria Group could announce early next year that it’s splitting into three companies, provided two pending legal decisions go its way.
NY Times:
- Three of the five groups bidding for Albertson’s are led by investment firms Kohlberg Kravis Roberts, Thomas H. Lee Partners LP and Yucaipa Companies.
- Risk and uncertainty in Iraq attract small engineering, drilling and contracting companies to the country.
- About 30,000 to 50,000 homes in New Orleans, more than one-fourth of the city’s residences, may be demolished because of damage from Hurricane Katrina.
- The number of New York City children in foster care has declined to about 18,000, about half what is was six years ago and at levels not seen since the mid-1980s.
- Iraqis probably approved the nation’s new constitution, citing official partial results from 13 of the country’s 18 provinces and likely results from two others in the Oct. 15 referendum.
- Asian technology stocks, the region’s worst performers this year, may recoup their losses as companies’ earnings reports signal that demand for products such as mobile phones and display screens is rising.
- The US gasoline pump price slid 25 cents in the past two weeks to an average $2.66 a gallon, Tilby Lundberg said, citing her survey of about 7,000 filling stations nationwide. Prices dropped because the refineries shut by Hurricanes Katrina and Rita are recovering and demand is dropping, said Lundberg.
- Hurricane Wilma gained speed ahead of its forecasted arrival in South Florida tomorrow morning after battering Mexico’s Yucatan Peninsula for three days with winds of 100 mils an hour.
Washington Times:
- The White House may have begun making contingency plans for the withdrawal of Harriet Miers’ nomination to the US Supreme Court.
Washington Post:
- US aid sent to earthquake-ravaged Pakistan is improving America’s image in the Muslim country.
- The US views a UN report linking top Syrian officials to the murder of Lebanon’s former prime minister as an opportunity to erode the power of President Bashar Assad and possibly foster democracy in the country.
EE Times:
- iSuppli Corp.’s teardown analysis of Apple Computer’s new video-capable iPod reveals an important new component supplier for the unit, Broadcom Corp.
Financial Times:
- About 55% of Japanese institutional investors put money into hedge funds at the end of last year, compared with 28% of US professional investors and 10% in the UK, citing Greenwich Associates.
- European Union member states are not increasing research and development spending by as much as the US and Asia, citing UK government research.
- General Motors Corp. may increase production of smaller vehicles as more US consumers buy fuel-efficient vehicles due to high energy prices, citing an interview with CEO Wagoner.
- Schering-Plough, maker of the Zetia Cholesterol drug, has “cash flexibility” to be able to plan for deals for new drugs or with other companies.
Sunday Telegraph:
- Ericsson AB and Alcatel SA are leading the race to acquire UK phone-equipment maker Marconi Corp.
Sunday Times:
- Cendant Corp. is considering plans to split itself into four businesses and may make announcement this week.
Observer:
- Roche Holdings AG has been accused by Gilead Sciences of “serious failings” in the production of bird-flu medication Tamiflu.
Weekend Recommendations
Barron's:
- Had positive comments on BSX, CA and VZ.
Goldman Sachs:
- Reiterated Outperform on ECL, SLB and MUR.
- Reiterated Underperform on KEA and UIS.
Night Trading
Asian indices are -.50% to -.25% on average.
S&P 500 indicated +.03%.
NASDAQ 100 indicated unch.
Morning Preview
US AM Market Call
NASDAQ 100 Pre-Market Indicator/Heat Map
Pre-market Commentary
Before the Bell CNBC Video(bottom right)
Global Commentary
Asian Indices
European Indices
Top 20 Business Stories
In Play
Bond Ticker
Daily Stock Events
Macro Calls
Rasmussen Consumer/Investor Daily Indices
CNBC Guest Schedule
Earnings of Note
Company/Estimate
AFL/.64
ALTR/.20
AXP/.70
ACF/.45
ACI/.28
AX/.22
CD/.46
CCU/.38
HCA/.61
KMB/.94
LNCR/.50
MRK/.62
PBI/.66
SGP/.06
TXN/.40
Upcoming Splits
ATVI 4-for-3
Economic Releases
None of note
BOTTOM LINE: Asian Indices are mostly lower, dragged down by electronics and steel producing companies in the region. I expect US stocks to open mixed and to rally modestly later in the day. The Portfolio is 100% net long heading into the week.
Friday, October 21, 2005
***Alert***
I will remain unable to post as much as usual over the weekend due to a scheduling conflict.
Weekly Scoreboard*
Click here for the Weekly Wrap by Briefing.com.
Indices
S&P 500 1,179.59 -.59%
DJIA 10,215.22 -.70%
NASDAQ 2,082.212 +.84%
Russell 2000 632.73 -.07%
DJ Wilshire 5000 11,773.11 -.43%
S&P Equity Long/Short Index 1,050.47 -1.47%
S&P Barra Growth 568.45 -.55%
S&P Barra Value 606.94 -.63%
Morgan Stanley Consumer 577.59 -.31%
Morgan Stanley Cyclical 686.77 -.55%
Morgan Stanley Technology 497.65 +1.64%
Transports 3,623.72 -.39%
Utilities 386.66 -1.86%
S&P 500 Cum A/D Line 6,402.00 +3.30%
Bloomberg Crude Oil % Bulls 8.0 -82.98%
Put/Call 1.0 -4.76%
NYSE Arms 1.16 +65.67%
Volatility(VIX) 16.12 +8.34%
ISE Sentiment 143.00 -10.06%
AAII % Bulls 43.11 +10.65%
US Dollar 90.26 +.97%
CRB 322.51 -1.57%
Futures Spot Prices
Crude Oil 60.63 -2.29%
Unleaded Gasoline 163.99 -5.75%
Natural Gas 12.87 -3.22%
Heating Oil 186.65 -4.04%
Gold 468.70 -1.59%
Base Metals 131.26 -.32%
Copper 179.45 -1.51%
10-year US Treasury Yield 4.38% -2.23%
Average 30-year Mortgage Rate 6.10% +1.16%
Leading Sectors
I-Banks +2.85%
HMOs +2.44%
Restaurants +2.39%
Lagging Sectors
Drugs -3.77%
Oil Tankers -4.34%
Energy -4.86%
One-Week High-Volume Gainers
One-Week High-Volume Losers
*5-Day % Change
Indices
S&P 500 1,179.59 -.59%
DJIA 10,215.22 -.70%
NASDAQ 2,082.212 +.84%
Russell 2000 632.73 -.07%
DJ Wilshire 5000 11,773.11 -.43%
S&P Equity Long/Short Index 1,050.47 -1.47%
S&P Barra Growth 568.45 -.55%
S&P Barra Value 606.94 -.63%
Morgan Stanley Consumer 577.59 -.31%
Morgan Stanley Cyclical 686.77 -.55%
Morgan Stanley Technology 497.65 +1.64%
Transports 3,623.72 -.39%
Utilities 386.66 -1.86%
S&P 500 Cum A/D Line 6,402.00 +3.30%
Bloomberg Crude Oil % Bulls 8.0 -82.98%
Put/Call 1.0 -4.76%
NYSE Arms 1.16 +65.67%
Volatility(VIX) 16.12 +8.34%
ISE Sentiment 143.00 -10.06%
AAII % Bulls 43.11 +10.65%
US Dollar 90.26 +.97%
CRB 322.51 -1.57%
Futures Spot Prices
Crude Oil 60.63 -2.29%
Unleaded Gasoline 163.99 -5.75%
Natural Gas 12.87 -3.22%
Heating Oil 186.65 -4.04%
Gold 468.70 -1.59%
Base Metals 131.26 -.32%
Copper 179.45 -1.51%
10-year US Treasury Yield 4.38% -2.23%
Average 30-year Mortgage Rate 6.10% +1.16%
Leading Sectors
I-Banks +2.85%
HMOs +2.44%
Restaurants +2.39%
Lagging Sectors
Drugs -3.77%
Oil Tankers -4.34%
Energy -4.86%
One-Week High-Volume Gainers
One-Week High-Volume Losers
*5-Day % Change
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