BETWEEN THE HEDGES

Tuesday, October 09, 2007

Wednesday Watch

Posted by Gary .....at 6:12 PM

Late-Night Headlines
Bloomberg:
- Chevron Corp.(CVX), the second-largest US oil company, said third-quarter net income was “significantly below” the record $5.4 billion the company earned in the April-June period.
- Saudi Aramco plans to increase oil exports to China by at least 9% this year, said two company officials.

MarketWatch.com:
- Retailers may see slowest gain in five months as eighth-warmest September in 113 years chills demand for cold-weather apparel.
- Is Google(GOOG) a better buy than Yahoo!? At $600, Web search giant still has lower valuation than rival.

CNNMoney.com:
- Carly Fiorina to join Fox Business Channel. The media company says Former HP chief, ‘one of the foremost business leaders of our time,’ will join Fox Business Channel when it launches.
- 35 Best Places to Retire.

IBD:
- Inflation Worries? Not For Fed, Which Focuses On Growth.

c/net News.com:
- Under mounting pressure from their Republican colleagues, the Democrats on a US House of Representatives panel have finally scheduled a vote on a bill that would extend by four years a soon-to-expire federal ban on Internet access taxes.

USA Today.com:
- Personal chefs aren’t just for the rich anymore.

Reuters:
- Goldman Sachs(GS) shares hit all-time high.

Late Buy/Sell Recommendations
Citigroup:
- Reiterated Buy on (GILD), target $51.

Night Trading
Asian Indices are +.50% to +1.25% on average.
S&P 500 futures -.11%.
NASDAQ 100 futures -.11%.

Morning Preview
US AM Market Call
NASDAQ 100 Pre-Market Indicator/Heat Map
Pre-market Commentary
Pre-market Stock Quote/Chart
Before the Bell CNBC Video(bottom right)
Global Commentary
WSJ Intl Markets Performance
Commodity Movers
Top 25 Stories
Top 20 Business Stories
Today in IBD
In Play
Bond Ticker
Economic Preview/Calendar
Daily Stock Events
Macro Calls
Upgrades/Downgrades
Rasmussen Business/Economy Polling
CNBC Guest Schedule

Earnings of Note
Company/EPS Estimate
- (COST)/.83
- (HST)/.13
- (PGR)/.37
- (MON)/-.16
- (RT)/.21
- (LRCX)/1.26
- (SCHN)/1.34

Upcoming Splits
- None of note

Economic Releases
10:00 am EST
- Wholesale Inventories for August are estimated to rise .3% versus a .2% gain in July.

10:30 am EST
- Bloomberg consensus estimates call for a 1,250,000 barrel crude oil build versus a 1,138,000 barrel increase the prior week. Gasoline supplies are expected to fall by 350,000 barrels versus a 41,000 barrel decline the prior week. Distillate Inventories are estimated to fall by 750,000 barrels versus a 1,173,000 barrel decline the prior week. Finally, Refinery Utilization is estimated to remain unch. versus a .59% increase the prior week.

Other Potential Market Movers
- The Fed’s Rosengren speaking, (HRL) analyst meeting, (PETM) analyst meeting, (MSCC) analyst day, (MMM) investor day, (BFF) investor meeting, Biotechnology Industry Organization Investor Forum could also impact trading today.

BOTTOM LINE: Asian indices are higher, boosted by commodity and automaker stocks in the region. I expect US equities to open mixed and to finish mixed. The Portfolio is 100% net long heading into the day.

DJIA and S&P 500 Close at New All-Time Highs on Fed Commentary

Posted by Gary .....at 4:46 PM

Evening Review
Market Performance Summary
WSJ Data Center
Sector Performance
ETF Performance
Style Performance
Commodity Movers
Market Wrap CNBC Video(bottom right)
S&P 500 Gallery View
Timely Economic Charts
GuruFocus.com
PM Market Call
After-hours Commentary
After-hours Movers
After-hours Stock Quote
In Play

Stocks Higher into Final Hour on Fed Commentary

Posted by Gary .....at 3:07 PM

BOTTOM LINE: The Portfolio is higher into the final hour on gains in my Internet longs, Retail longs, Medical longs and Biotech longs. I have not traded today, thus leaving the Portfolio 100% net long. The overall tone of the market is positive today as the advance/decline line is higher, almost every sector is rising and volume is about average. Weekly same-store-sales rose 2.0% this week, the same as last week, but up from 1.4% in early July. Moreover, weather derivatives show nationwide temperatures moving down to slightly below average for this time of the year for the next seven days, which could help boost cold weather clothing sales. As well, the Rasmussen consumer index rose to 111.7 today, up from 105.6 a week ago and also up from the August average of 106.8 during the peak of the global market turmoil. The investment grade credit default swap index has declined another 8.4% over the last week, and the speculative grade credit default swap index has decreased 3.3% over the same period, both of which are positives. The JPMorgan Emerging Market Debt Index hit a new all-time high yesterday and is up 0.55% over the last week. The Bear Stearns High-Yield Index is 0.47% higher during that period. Overall, I view comments by the Fed’s Poole today as more dovish than I expected. However, fed fund futures now imply a 38% chance for a 25-basis-point cut at the upcoming meeting, down from 48% yesterday and 74% one week ago. The 10-year yield is moving back to unchanged, and stocks are moving higher on these comments and the release of the FOMC minutes. I expect US stocks to trade mixed into the close from current levels as investment manager performance anxiety and short-covering offsets falling odds for a fed rate cut at the October meeting and higher energy prices.