Weekend HeadlinesBloomberg:- The average US gasoline pump price fell 24 cents in the past two weeks to $2.42/gallon, the biggest decline in almost a year, as supplies stayed ahead of demand, Trilby Lundberg said, citing her survey of about 7,000 filling stations nationwide.
- Crude oil is falling to a 6-month low in NY as Iran’s President said his country is open to discussion on its nuclear program.
- The yen may fall to a 20-year low as individual investors in Japan join speculators on the Chicago Mercantile Exchange in selling the currency.
- Gilead Sciences(GILD) licensed eight Indian producers of generic drugs to make cheaper versions of the Viread AIDS medication, the company’s best-selling pill, for 95 countries where most people can’t afford treatment.
- European Central Bank President Jean-Claude Trichet said labor productivity is the biggest problem facing the economy of the dozen euro nations.
- US Treasury 10-year notes had their biggest weekly advance since April 2005 as traders raised bets the Fed will begin lowering interest rates.
- Honda Motor(HMC) will introduce a diesel car that meets California’s emission standards and a fuel cell-powered sports car within three years as it vies with Toyota Motor(TM) for buyers of fuel-efficient autos.
- Noble Group Ltd., which accounts for 10% of ethanol exports from Brazil, may start investing in production plants in the South American nation to benefit from forecasts of rising global demand.
- Mutual fund investors, captivated by oil’s 88% rise in two years, increased their energy holdings in 2006 just in time to lose $4.5 billion. That’s the damage US oil and gas funds recorded as crude plunged 23% from July highs, according to data compiled by Bloomberg. A total of $23.5 billion poured into energy mutual funds in the 12 months ended July 31, according to Financial Research Corp. in Boston. As well,
about $67.4 billion is invested in 525 energy and commodity hedge funds, more than double the $30 billion at the start of the year, according to Energy Hedge Fund Center. There were 180 such funds in October 2004.
Wall Street Journal:- The richest US taxpayers earned 19% of total income in 2004 versus 20.8% in 2000, citing IRS data on tax returns.
Barron’s:- Morgan Keegan topped the list for best returns in the past year and past six months, while Charles Schwab(SCHW) had the best returns over the past three-and five-year periods, according to Barron’s semi-annual ranking of brokerages’ top share recommendations.
Forbes:-
Really, really cheap oil is coming.
NY Times:- Ford Motor’s(F) chief sales analyst, George Pipas, expects the market for sport-utility vehicles to continue declining despite the recent drop in gas prices.
- New rules adopted in May 2005 reduced the waiting time for patients awaiting lung transplants in the US by granting organs to those who need them most.
- Congress may close the so-called Enron Corp. loophole, which allows unregulated over-the-counter trading of energy commodities, because of Amaranth Group’s loss of $6 billion on natural gas trades. The Oil and Gas Traders Oversight Act of 2006, which would require regulation of energy commodity trading, has unanimous consent to come up before the Senate.
Washington Post:- A half-dozen bills before Congress would protect as much as 1 million acres of wilderness areas while allocating a portion to real estate developers and local communities as trade-offs.
Crain’s Chicago Business:- UAL Corp.’s United Airlines(UAUA), the world’s second largest airline, hired Goldman Sachs(GS) to explore strategic options, including possible mergers with other carriers.
AP:- Boyd Gaming Corp.(BYD) gave up its bid to develop a slot-machine casino in Limerick, Pennsylvania, because the township board of supervisors didn’t support the plan.
NY Post:- Tribune Co.(TRB), owner of Newsday and the LA Times, chose Merrill Lynch to conduct any auction of the company or assets.
Star-Ledger:- NY Waterway and Billybey Ferry Co. will reduce ferry fares from Jersey City, New Jersey, to Wall Street when they take over the route Oct. 2.
Seattle Post-Intelligencer:- Microsoft Corp.(MSFT) has donated more than $2.5 billion to charities since 1983, including cash, software, employee contributions and company matching funds.
Financial Times:- Hedge funds that have invested billions of dollars in reinsurance companies and catastrophe bonds are expected to receive high returns as a mild hurricane season looks more likely.
Economic Daily News:- Taiwan Semiconductor Manufacturing(TSM) said the island’s customized chipmakers will improve sales within the next six months after their clients use up inventories, citing company Vice Chairman Tseng Fan-chen.
The Standard:- China doesn’t need further tightening measures to cool the economy, citing Qiu Xiaohua, head of the government’s National Bureau of Statistics. The measures “are effective, we will continue with them and keep a close eye on their outcome,” Qui said.
Der Spiegel:- DaimlerChrysler(DCX) is close to agreeing with Chery Automobile on a contract to buy cheap, small cars from the Chinese company that it will sell in the US.
The Business:- Saudi Arabia plans to step up production to 13.5 million barrels of oil a day by 2011 to counter supply disruptions, citing new projections given to bankers in London. Previously, Saudi Arabia was aiming to stabilize its production at about 12 million barrels a day. Saudi Arabia is planning to invest $30 billion in “downstream” projects in coming years and officials are meeting bankers this week to discuss funding.
- BT Group Plc has joined forces with T-Mobile International AG as part of its effort to grow revenue by 50% a year from its combined fixed and mobile-phone service to businesses in the US.
Globe and Mail:- Pakistan must rein in religious schools, called maddrassas, if neighboring Afghanistan is ever to know peace, Afghan President Hamid Karzai said. Such schools preach hatred for Afghanistan and the rest of the world, Karzai said.
Gulf News:- Middle East oil producing states will spend $395 billion on energy infrastructure between 2007 and 2011, citing the Arab Petroleum Investment Corp., a Saudi Arabia-based agency that provides funding for oil and gas related projects in the Arab world.
Weekend RecommendationsBarron's: - Made positive comments on (NJ) and (DE).
Citigroup:- Reiterated Buy on (RHAT), target $33.
Morgan Stanley:- Reiterated Overweight on (PCLN), target $40.
Night Trading Asian indices are unch. to +.25% on average.
S&P 500 indicated +.08%
NASDAQ 100 indicated +.11%.
Morning PreviewUS AM Market CallNASDAQ 100 Pre-Market Indicator/Heat MapPre-market CommentaryBefore the Bell CNBC Video(bottom right)
Global CommentaryAsian IndicesEuropean IndicesTop 20 Business StoriesIn PlayBond TickerDaily Stock EventsMacro CallsRasmussen Consumer/Investor Daily IndicesCNBC Guest ScheduleEarnings of NoteCompany/Estimate- (JLG)/.41
- (WAG)/.41
Upcoming Splits- None of note
Economic Releases10:00 am EST- Existing Home Sales for August are estimated to fall to 6.2M versus 6.33M in July.
BOTTOM LINE: Asian Indices are mostly higher, boosted by technology shares in the region. I expect US stocks to open modestly lower and to rally into the afternoon, finishing modestly higher. The Portfolio is 75% net long heading into the week.
