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Thursday, June 29, 2006
Wednesday, June 28, 2006
Thursday Watch
Late-Night Headlines
Bloomberg:
- BlueScope Steel Ltd., Australia’s largest steelmaker, cut its full-year profit estimate for the third time this year. Its shares fell the most in three months.
- The American public has turned against the Fed’s two-year campaign of interest-rate increases, concerned it may hurt the economy by slowing growth, a Bloomberg/LA Times poll shows.
Financial Times:
- Dell Inc.(DELL) has reorganized its Americas division after several quarters of worse-than-expected results, citing an interview with CEO Rollins.
Late Buy/Sell Recommendations
- None of note
Night Trading
Asian Indices are +.75% to +1.25% on average.
S&P 500 indicated +.08%.
NASDAQ 100 indicated +.06%.
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/EPS Estimate
- (ACN)/.46
- (AM)/.26
- (CA)/.20
- (STZ)/.32
- (GIS)/.61
- (MON)/1.20
- (PALM)/.23
- (WOR)/.40
Upcoming Splits
- None of note
Economic Releases
8:30 am EST
- Final 1Q GDP is estimated to rise 5.6% versus a prior estimate of a 5.3% gain.
- Final 1Q GDP Price Index is estimated to rise 3.3% versus a prior estimate of a 3.3% gain.
- Final 1Q Personal Consumption is estimated to rise 5.2% versus a prior estimate of a 5.2% gain.
- Initial Jobless Claims for last week are estimated to rise to 310K versus 308K the prior week.
- Continuing Claims are estimated to fall to 2430K versus 2439K prior.
2:15 pm EST
- The FOMC is expected to raise the benchmark Fed Funds rate 25 basis points to 5.25%.
Bloomberg:
- BlueScope Steel Ltd., Australia’s largest steelmaker, cut its full-year profit estimate for the third time this year. Its shares fell the most in three months.
- The American public has turned against the Fed’s two-year campaign of interest-rate increases, concerned it may hurt the economy by slowing growth, a Bloomberg/LA Times poll shows.
Financial Times:
- Dell Inc.(DELL) has reorganized its Americas division after several quarters of worse-than-expected results, citing an interview with CEO Rollins.
Late Buy/Sell Recommendations
- None of note
Night Trading
Asian Indices are +.75% to +1.25% on average.
S&P 500 indicated +.08%.
NASDAQ 100 indicated +.06%.
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/EPS Estimate
- (ACN)/.46
- (AM)/.26
- (CA)/.20
- (STZ)/.32
- (GIS)/.61
- (MON)/1.20
- (PALM)/.23
- (WOR)/.40
Upcoming Splits
- None of note
Economic Releases
8:30 am EST
- Final 1Q GDP is estimated to rise 5.6% versus a prior estimate of a 5.3% gain.
- Final 1Q GDP Price Index is estimated to rise 3.3% versus a prior estimate of a 3.3% gain.
- Final 1Q Personal Consumption is estimated to rise 5.2% versus a prior estimate of a 5.2% gain.
- Initial Jobless Claims for last week are estimated to rise to 310K versus 308K the prior week.
- Continuing Claims are estimated to fall to 2430K versus 2439K prior.
2:15 pm EST
- The FOMC is expected to raise the benchmark Fed Funds rate 25 basis points to 5.25%.
BOTTOM LINE: Asian indices are higher, boosted by commodity and technology stocks in the region. I expect US equities to open modestly higher and to build on gains into the afternoon, finishing higher. The Portfolio is 75% net long heading into the day.
Stocks Finish at Session Highs ahead of Fed Announcement
Indices
S&P 500 1,246.00 +.55%
DJIA 10,973.56 +.45%
NASDAQ 2,111.84 +.55%
Russell 2000 688.04 +.16%
Wilshire 5000 12,518.20 +.47%
S&P Barra Growth 576.40 +.49%
S&P Barra Value 667.92 +.60%
Morgan Stanley Consumer 599.92 +.10%
Morgan Stanley Cyclical 802.08 +.41%
Morgan Stanley Technology 481.19 +.58%
Transports 4,730.60 +.56%
Utilities 408.63 +.51%
Put/Call .83 -15.31%
NYSE Arms .75 -50.36%
Volatility(VIX) 15.79 -3.72%
ISE Sentiment 140.00 -2.78%
US Dollar 86.67 +.23%
CRB 338.19 +.33%
Futures Spot Prices
Crude Oil 72.34 +.21%
Unleaded Gasoline 220.59 +.34%
Natural Gas 5.88 -3.60%
Heating Oil 194.60 +.44%
Gold 581.20 +.03%
Base Metals 205.08 +1.37%
Copper 315.05 -1.15%
10-year US Treasury Yield 5.24% +.83%
Leading Sectors
Energy +1.82%
Gaming +1.62%
Steel +1.44%
Lagging Sectors
Alternative Energy -.94%
Airlines -.99%
Restaurants -1.15%
Evening Review
Detailed Market Summary
Market Gauges
Daily ETF Performance
Style Performance
Market Wrap CNBC Video(bottom right)
S&P 500 Gallery View
Economic Calendar
Timely Economic Charts
GuruFocus.com
PM Market Call
After-hours Movers
Real-time/After-hours Stock Quote
In Play
Afternoon Recommendations
CSFB:
- Rated (FRX) and (BRL) Outperform.
Afternoon/Evening Headlines
Bloomberg:
- A tsunami alert system for nations bordering the Indian Ocean is up and running, 18 months after deadly waves triggered by an earthquake slammed into 12 nations across the region and killed an estimated 220,000 people.
- BP Plc(BP) manipulated the price of propane used to heat homes and businesses in the northeastern US in February 2004 and tried to do the same in April 2003, the Commodity Futures Trading Commission said.
- Walt Disney(DIS) named former Procter & Gamble CEO John E. Pepper as its non-executive chairman, succeeding former US Senator George Mitchell.
- Henry Paulson, confirmed today by the US Senate to become Treasury Secretary, said faster global economic growth will help reduce lopsided global trade and investment flows.
AP:
- Sunni insurgents offered to stop attacks on US-led military forces in Iraq if the Iraqi government and President Bush set a two-year deadline for withdrawing all foreign troops.
Financial Times Deutschland:
- Advanced Micro Devices(AMD) aims to win Dell Inc.(DELL) as a customer for its personal computer chips after agreeing to equip Dell servers, citing AMD strategist Margaret Lewis.
S&P 500 1,246.00 +.55%
DJIA 10,973.56 +.45%
NASDAQ 2,111.84 +.55%
Russell 2000 688.04 +.16%
Wilshire 5000 12,518.20 +.47%
S&P Barra Growth 576.40 +.49%
S&P Barra Value 667.92 +.60%
Morgan Stanley Consumer 599.92 +.10%
Morgan Stanley Cyclical 802.08 +.41%
Morgan Stanley Technology 481.19 +.58%
Transports 4,730.60 +.56%
Utilities 408.63 +.51%
Put/Call .83 -15.31%
NYSE Arms .75 -50.36%
Volatility(VIX) 15.79 -3.72%
ISE Sentiment 140.00 -2.78%
US Dollar 86.67 +.23%
CRB 338.19 +.33%
Futures Spot Prices
Crude Oil 72.34 +.21%
Unleaded Gasoline 220.59 +.34%
Natural Gas 5.88 -3.60%
Heating Oil 194.60 +.44%
Gold 581.20 +.03%
Base Metals 205.08 +1.37%
Copper 315.05 -1.15%
10-year US Treasury Yield 5.24% +.83%
Leading Sectors
Energy +1.82%
Gaming +1.62%
Steel +1.44%
Lagging Sectors
Alternative Energy -.94%
Airlines -.99%
Restaurants -1.15%
Evening Review
Detailed Market Summary
Market Gauges
Daily ETF Performance
Style Performance
Market Wrap CNBC Video(bottom right)
S&P 500 Gallery View
Economic Calendar
Timely Economic Charts
GuruFocus.com
PM Market Call
After-hours Movers
Real-time/After-hours Stock Quote
In Play
Afternoon Recommendations
CSFB:
- Rated (FRX) and (BRL) Outperform.
Afternoon/Evening Headlines
Bloomberg:
- A tsunami alert system for nations bordering the Indian Ocean is up and running, 18 months after deadly waves triggered by an earthquake slammed into 12 nations across the region and killed an estimated 220,000 people.
- BP Plc(BP) manipulated the price of propane used to heat homes and businesses in the northeastern US in February 2004 and tried to do the same in April 2003, the Commodity Futures Trading Commission said.
- Walt Disney(DIS) named former Procter & Gamble CEO John E. Pepper as its non-executive chairman, succeeding former US Senator George Mitchell.
- Henry Paulson, confirmed today by the US Senate to become Treasury Secretary, said faster global economic growth will help reduce lopsided global trade and investment flows.
AP:
- Sunni insurgents offered to stop attacks on US-led military forces in Iraq if the Iraqi government and President Bush set a two-year deadline for withdrawing all foreign troops.
Financial Times Deutschland:
- Advanced Micro Devices(AMD) aims to win Dell Inc.(DELL) as a customer for its personal computer chips after agreeing to equip Dell servers, citing AMD strategist Margaret Lewis.
BOTTOM LINE: The Portfolio finished slightly higher today on gains in my Internet longs, Retail longs and Biotech longs. I covered some of my (EEM), (IWM) and (QQQQ) shorts earlier in the day, thus leaving the Portfolio 75% net long. The tone of the market was modestly positive today as the advance/decline line finished slightly higher, sector performance was mixed and volume was below average. Measures of investor anxiety were lower into the close. Overall, today's market performance was mildly bullish. A number of market leading stocks posted outsized gains. As well, bears were unable to capitalize on yesterday's weakness. The 4-basis-point rise in the 10-year yield likely capped an otherwise more vigorous rally. I suspect long-term rates may fall on tomorrow's Fed rate hike. Natural gas is trading at new cycle lows, falling another 4%. I continue to expect stocks to finish the last two days strongly.
Today's Headlines
Bloomberg:
- Senate Majority Leader Bill Frist said he expects an “overwhelming majority” of senators to vote tomorrow for Henry Paulson to be the next US Treasury secretary.
- DaimlerChrysler AG plans to sell the two-seat Smart mini-car in the US, betting a fuel-efficient vehicle that fits on a pool table will help end eight years of losses at is Smart division.
- Russian President Putin told his security services to find and kill those responsible for the deaths of four Russian diplomats in Iraq.
- Pessimism about US stocks rose to the highest level since October 2002 last week, according to Investors Intelligence, a very bullish development.
- The US government needs to step in and regulate the $1.2 trillion hedge-fund industry or states will “join forces” and oversee the private investment pools, the attorney general of Connecticut told senators.
- US Dept. of Energy Secretary Samuel Bodman announced today that the DOE has approved two loan requests totaling 750,000 barrels of crude oil from the Strategic Petroleum Reserve to two Louisiana refineries.
Wall Street Journal:
- US money managers are gaining enthusiasm for large-capitalization stocks and losing interest in small-cap shares.
- Mitsubishi UFJ Financial Group, the world’s biggest lender by assets, is in talks with the US Fed about obtaining “financial holding company” status, a move that would allow the Japanese bank to expand into underwriting, insurance and investment banking in the US.
- A small group of hedge fund managers is heading a campaign to deter Congress and the SEC from tightening regulations over the business.
- HJ Heinz(HNZ) is trying to rebuild relations with McDonald’s 33 years after being cut off for not supplying enough ketchup during a tomato shortage.
- Two Detroit-area auto dealers are offering modified versions of the Hummer H2 and H3 they say can get 25 miles per gallon in highway traffic compared with the usual 19 to 20.
- United Parcel Service(UPS) and the US Postal Service reached an agreement on a deal that will put mail on UPS planes and may improve the post office’s reliability.
- US securities firms face two civil antitrust lawsuits in connection with the part they allegedly play in “naked short-selling.”
USA Today:
- 33% US adults said they are changing their summer vacation plans because of higher gas prices.
AP:
- Dallas Mavericks owner Mark Cuban and Hall of Fame quarterback Dan Marino have joined a bid to buy the NHL’s Pittsburgh Penguins.
NY Times:
- President Bush’s administration will issue new welfare rules today that will prompt states to move more people from welfare to work, representing the biggest policy change since 1996.
- Iraqi Prime Minister Nuri al-Maliki said the country’s new amnesty plan won’t allow pardons for people who attacked US soldiers “out of respect” for their contributions.
- The US Episcopal Church may lose full membership of the Anglican Communion if it doesn’t renounce same-sex unions and gay bishops, citing the Church of England’s Archbishop of Canterbury.
- Three-time heavyweight boxing champ Muhammad Ali plans to introduce a line of reduced-calorie snacks and beverages aimed at curbing youth obesity.
Washington Post:
- Military commanders said they expect to reach their target of training and equipping more than 325,000 members of the new Iraqi security forces by the end of the year.
Daily Telegraph:
- Global mergers and acquisitions activity may reach a record $3,500 billion this year, citing Thomson Financial.
Wall Street Journal Asia:
- China’s cabinet plans a two-day meeting this year to set new policies for the nation’s financial system.
- Senate Majority Leader Bill Frist said he expects an “overwhelming majority” of senators to vote tomorrow for Henry Paulson to be the next US Treasury secretary.
- DaimlerChrysler AG plans to sell the two-seat Smart mini-car in the US, betting a fuel-efficient vehicle that fits on a pool table will help end eight years of losses at is Smart division.
- Russian President Putin told his security services to find and kill those responsible for the deaths of four Russian diplomats in Iraq.
- Pessimism about US stocks rose to the highest level since October 2002 last week, according to Investors Intelligence, a very bullish development.
- The US government needs to step in and regulate the $1.2 trillion hedge-fund industry or states will “join forces” and oversee the private investment pools, the attorney general of Connecticut told senators.
- US Dept. of Energy Secretary Samuel Bodman announced today that the DOE has approved two loan requests totaling 750,000 barrels of crude oil from the Strategic Petroleum Reserve to two Louisiana refineries.
Wall Street Journal:
- US money managers are gaining enthusiasm for large-capitalization stocks and losing interest in small-cap shares.
- Mitsubishi UFJ Financial Group, the world’s biggest lender by assets, is in talks with the US Fed about obtaining “financial holding company” status, a move that would allow the Japanese bank to expand into underwriting, insurance and investment banking in the US.
- A small group of hedge fund managers is heading a campaign to deter Congress and the SEC from tightening regulations over the business.
- HJ Heinz(HNZ) is trying to rebuild relations with McDonald’s 33 years after being cut off for not supplying enough ketchup during a tomato shortage.
- Two Detroit-area auto dealers are offering modified versions of the Hummer H2 and H3 they say can get 25 miles per gallon in highway traffic compared with the usual 19 to 20.
- United Parcel Service(UPS) and the US Postal Service reached an agreement on a deal that will put mail on UPS planes and may improve the post office’s reliability.
- US securities firms face two civil antitrust lawsuits in connection with the part they allegedly play in “naked short-selling.”
USA Today:
- 33% US adults said they are changing their summer vacation plans because of higher gas prices.
AP:
- Dallas Mavericks owner Mark Cuban and Hall of Fame quarterback Dan Marino have joined a bid to buy the NHL’s Pittsburgh Penguins.
NY Times:
- President Bush’s administration will issue new welfare rules today that will prompt states to move more people from welfare to work, representing the biggest policy change since 1996.
- Iraqi Prime Minister Nuri al-Maliki said the country’s new amnesty plan won’t allow pardons for people who attacked US soldiers “out of respect” for their contributions.
- The US Episcopal Church may lose full membership of the Anglican Communion if it doesn’t renounce same-sex unions and gay bishops, citing the Church of England’s Archbishop of Canterbury.
- Three-time heavyweight boxing champ Muhammad Ali plans to introduce a line of reduced-calorie snacks and beverages aimed at curbing youth obesity.
Washington Post:
- Military commanders said they expect to reach their target of training and equipping more than 325,000 members of the new Iraqi security forces by the end of the year.
Daily Telegraph:
- Global mergers and acquisitions activity may reach a record $3,500 billion this year, citing Thomson Financial.
Wall Street Journal Asia:
- China’s cabinet plans a two-day meeting this year to set new policies for the nation’s financial system.
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