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Friday Watch

Late-Night Headlines
Bloomberg:
- Standard & Poor's ended a review of its ratings on MBIA Inc.(MBI) and Ambac Financial Corp.(ABK), the two largest bond insurers, without changing their ratings. MBIA's MBIA Insurance Corp. and Ambac's Ambac Assurance Corp. remain AA rated, New York-based S&P said today in separate statements. MBIA Insurance's capital levels remain ``well above the level required for a 'AA' rating,'' S&P said. Ambac Assurance's efforts to cancel protection on mortgage-linked CDOs also ``are starting to bear fruit,'' the firm said. MBIA jumped 10.4% in after-hours trading, while Ambac rose 14.0%.
- Gold dropped below $800 an ounce in Asian trading amid speculation the U.S. currency will gain, damping demand for a haven against a weakening dollar. Gold for immediate-delivery fell $8.38 to $798.25 an ounce in Asian trading, a 1 percent decline from yesterday in New York.
- Crude oil fell for a second day on speculation that fuel-consumption declines in the U.S. will spread to other countries as their economies slow. Gasoline demand was down 2.1 percent through July as record prices and slower economic growth cut consumer spending, an American Petroleum Institute report showed Aug. 13. Europe's economy contracted for the first time since the introduction of the euro almost a decade ago, a report showed yesterday. ``The market is much more focused on demand destruction than on supply concerns,'' said Nauman Barakat, senior vice president of global energy futures at Macquarie Futures USA Inc. in New York. ``The concern now is that the demand destruction in the U.S. will spread like a virus to other countries.'' Exxon Mobil Corp. Chief Executive Officer Rex Tillerson said in an ABC News interview Aug. 13 that oil prices don't reflect supply and demand, and are being influenced by such factors as a weak dollar.
- Goldman Sachs Group Inc.(GS) reversed course on its dollar forecast, saying the greenback has `bottomed'' as global growth weakens, oil prices decline and the U.S. trade balance improves. The U.S. currency, after reaching a 5 1/2 month high of $1.48 per euro, will climb to $1.45 per euro in three months, analysts led by Thomas Stolper wrote in a research note. Goldman had forecast a decline to $1.56 for the same period. From today's 109.8 yen, the dollar will strengthen to 110 yen in three months, up from a previous forecast of 106. ``The most important driver is clearly much weaker growth outside the U.S., particularly in the euro zone, the U.K. and Australia,'' said Jens Nordvig, a strategist at Goldman in New York, in an interview. ``We have seen a massive move in European rate expectations. This shows that the dollar can gain even with the Federal Reserve on hold.''
- Australia's dollar headed for its fourth consecutive weekly decline, the longest losing streak since October 2006, as prices of commodities dropped and traders added to bets the central bank will reduce interest rates. The currency slid 2 percent this week after gold, its third most valuable raw material export, dropped 5.8 percent. Reserve Bank of Australia Deputy Governor Ric Battellino said yesterday the central bank ``is in a position to consider'' cutting interest rates even before inflation slows. ``With the RBA reinforcing market expectations that they are likely to start lowering the official cash rate as soon as September, we remain bearish,'' Deutsche Bank AG currency strategists including London-based Bilal Hafeez and Sydney-based John Horner, wrote in a research note yesterday. ``We continue to target a fall to 85 U.S. cents on this move.'' Goldman Sachs Group Inc. revised its forecast for the Aussie yesterday, saying that the Australian and New Zealand dollars faced challenges on the ``domestic front from slowing activity.'' The firm now expects the currency to buy 86 cents in three months, compared with a pervious forecast of 96 cents.
- Soros Fund Management LLC, led by billionaire investor George Soros, bought an $811 million stake in Petroleo Brasileiro SA(PBR) in the second quarter, making the Brazilian state-controlled oil company its largest holding. As of June 30, the stake made up 22 percent of the $3.68 billion of stocks and American depositary receipts held by the fund, according to a filing with the U.S. Securities and Exchange Commission. Petrobras has plunged 28.4% since June 30.
- New Zealand's retail sales fell by the most in at least 13 years in the second quarter, when adjusted for inflation, as spiraling food and fuel prices left consumers with less to spend on dining out and clothes.
- OPEC is pulling in more money from oil sales than the U.S. government is raising from individual taxpayers. The cartel's revenue may reach $1.174 trillion this year, edging U.S. personal income tax receipts for the first time since 1980, when gasoline shortages and the Iranian hostage crisis transfixed the country. The scale of wealth at stake helps explain why offshore oil drilling is the subject of renewed debate in Congress, while business leaders including oil billionaire T. Boone Pickens back crash courses in renewable energy. As rising gasoline prices hobble U.S. companies from General Motors Corp. to Starbucks Corp., Middle East investors are accumulating stakes in global banks and purchasing icons like the Chrysler Building in New York. ``This is potentially an empire-ending problem,'' said Robert Zubrin, author of ``Energy Victory,'' a prescription for achieving U.S. energy independence. ``We're being brought low, and at the same time, someone else is being built up.'' Over three years, the 13 OPEC members, including Saudi Arabia, Iran and Venezuela, might bring in $3.5 trillion. That's almost equal to the market value of the Dow Jones Industrial Average, the benchmark U.S. stock index.
- Autodesk Inc.(ADSK), the biggest maker of engineering-design software, advanced 8.9% in late trading after the company forecast third-quarter and full-year revenue that topped some analysts' estimates.
- Kohl's Corp.(KSS), the fourth-largest U.S. department-store chain, reported second-quarter profit that fell less than analysts' estimates after the company slowed new orders and reduced the amount of goods it had to sell on clearance. Full-year profit may decline less than it previously expected, Kohl's said, sending its shares 4.0% higher in late New York trading.
- The Taiwan dollar's decline this month was caused by foreign fund outflows, including those made by Royal Philips Electronics NV, the Commercial Times reported, citing an unidentified central bank official.
- Copper prices may fall a further 10% to 15% in the short term amid economic growth concerns and weaker demand from China, the world’s largest consumer of the metal, UBS AG said today.

Barron’s:
- Oil Seen Dropping Under $90 by Year End. First Global OIL AT $30-$50 A BARREL? We don't know about you, but this wouldn't surprise us at all. Our Quant side flagged the move in crude oil prices on May 30. They were, as nearly always, right on the money. And now it's time for the data crunchers like us to get into action. It is our firm belief that crude oil represents a true bubble. The tests of a true bubble are that it should have little connection with fundamental data; that the bubble's very existence should create ample nonsensical stories as to why the bubble is for ...

Wall Street Journal:
- The two-year-old hedge fund founded by Jonathan Wood, a former UBS AG trader, is down about 85% from its inception through July, according to a person familiar with the matter. Mr. Wood, known as an outspoken investor, has seen his investments in several high-profile casualties of the global financial crisis sour including Bear Stearns Cos., Countrywide Financial Corp., and U.K. bank Northern Rock. An added sting for investors: They haven't been able to cash out because they agreed not to withdraw money for up to five years from when they signed up.
- Data emerging on players in the commodities markets show that speculators are a larger piece of the oil market than previously known, a development enlivening an already tense election-year debate about traders' influence. Last month, the main U.S. regulator of commodities trading, the Commodity Futures Trading Commission, reclassified a large unidentified oil trader as a "noncommercial" speculator. The move changed many analysts' perceptions of the oil market from a more diversified marketplace to one with a heavier-than-thought concentration of financial players who punt on big bets.
- Apple Inc.(AAPL) is working on a software update for the iPhone that would address problems causing the handset to drop some calls. Hundreds of users of the iPhone 3G have posted complaints online about disconnected calls. A software fix will be available in coming weeks. AT&T(T), the exclusive provider of iPhone service in the US, declined to say whether the device drops more calls than other phones that work with its network.
- China Property Stocks Recovery May be a Way Off. China's property market is sputtering through its roughest patch in a decade, and developers' share prices have suffered a prolonged drubbing.
- Yahoo(YHOO) and Microsoft(MSFT) executives seeking signs of success in their chase again Google(GOOG) will have to keep waiting. The Mountain View search giant remains far bigger – and it is growing far faster. EMarketer’s 2008 online advertising forecasts show Google growing U.S. online ad revenue 27% in 2008 to $7.6 billion. That’s nearly twice the estimated growth rate for the next fastest gainer, Microsoft, which will grow 14% to $1.6 billion. The numbers, expected to be released Friday, underscore just what this year’s dance between Yahoo and Microsoft has been about. Alone, each player looks increasingly marginalized. Even together, their overall ad revenues seriously trail Google’s.

MarketWatch.com:
- Fraud allegations reportedly deter giant China IPO. ITAT Group Ltd., China's fast-growing retail giant, may be suspending plans for a $1 billion initial public offering in Hong Kong due to allegations of doctored sales figures and other improper accounting, according to a Wall Street Journal report.
- You can actually see this process of trend-testing underway in the Adens' discussion of gold: "As we write, for one of the first times in seven years, gold is seriously testing its major trend. It's slipping below its key 65-week moving average at $819. The only other two times this temporarily happened was in 2004 and 2005. This is now important to watch because if December gold stays clearly below $819 this week, the major trend will turn bearish for the first time since 2001. This is an alert!
- General Motors Corp.(GM) flashed the first production photos of its Chevy Volt Thursday and said the much-anticipated plug-in hybrid continues to roll toward its planned debut in late 2010.

CNBC.com:
- Billionaire investor Carl Icahn reported on Thursday that he owned 55 million shares in Yahoo (YHOO) as of June 30, and that he had increased his stake in Motorola (MOT) to 144.1 million shares from 115.6 million shares the prior quarter. Meanwhile, billionaire investor George Soros raised his stake in Wall Street firm Lehman Brothers (LEH) and Bill Gates' charitable foundation revealed holdings in Crocs(CROX) and Dick's Sporting Goods(DKS), among others.

NY Times:
- As a military conflict between Russian and Georgia ends its first week, a number of big Wall Street banks are beginning to reassess the stability of their businesses in Russia.
- T-Mobile will be the first carrier to offer a mobile phone powered by Google’s(GOOG) Android software, according to people briefed on the company’s plans. The phone will be made by HTC, one of the largest makers of mobile phones in the world, and is expected to go on sale in the United States before Christmas, perhaps as early as October.

IBD:
- Buffalo Wild Wings(BWLD): Taking Good Care Of Customers Helps Avoid Restaurant Slowdown.

SI.com:
- Just nine months before the Beijing Olympics, the Chinese government's news agency, Xinhua, reported that gymnast He Kexin was 13, which would have made her ineligible to be on the team that won a gold medal this week. The Associated Press found the Xinhua report on the site Thursday morning and saved a copy of the page. Later that afternoon, the Web site was still working but the page was no longer accessible. Sports editors at the state-run news agency would not comment for publication. If the age reported by Xinhua was correct, that would have meant He was too young to be on the Chinese team that beat the United States on Wednesday and clinched China's first women's team Olympic gold in gymnastics. He is also a favorite for gold in Monday's uneven bars final.

Reuters:
- Hedge fund Turnberry Capital Management LP, which specializes in distressed debt, is telling investors that it plans to shut down and return their money after many asked for it back.
- U.S. video game sales rose 28 percent in July from a year earlier, boosted by continued strong demand for Nintendo Co Ltd's Wii console, according to data from research firm NPD on Thursday. U.S. sales of video game hardware, software and accessories totaled $1.19 billion in July, with software sales growing 41 percent and hardware sales rising 17 percent, NPD said.
- Many players snapped up call options in Onyx Pharmaceuticals Inc (ONXX) on Thursday in hopes that the strength in the drugmaker's stock would continue after it broke through a key technical level. Onyx shares jumped 9.5 percent to close at $44.79 on the Nasdaq, its highest level since mid-February. Its option volume was also brisk, running six times the normal level.
- U.S. presidential hopeful Sen. John McCain said Thursday he supports a strong dollar and said the currency would respond to the economy if the right policies were implemented to make it grow faster. "I'm for strengthening the dollar. But I also think we've got to have the economic policies in place for a stronger economy that will, over time, make sure that the dollar will be stronger," McCain, the presumptive Republican nominee, said during a talk at the Aspen Institute. Noting that there are a number of economists worried by the dollar's decline who want it to strengthen, McCain said: "I'm all for it. And I love to talk it up, talk up the strong dollar, and I will."

Financial Times:
- Wal-Mart(WMT), the world’s largest retailer, said yesterday it was seeing evidence of the slowdown in US consumer demand spreading to developing markets as customers deal with growing food and energy costs. The retailer also highlighted concerns over inflation in China, where it was running at approximately 8 per cent during the second quarter.

TimesOnline:
- Western oil demand set for biggest fall in 25 years. Demand in the economies of the Organization of Economic Co-operation and Development (OECD) countries is set to average 48.6 million barrels per day this year, a decline of 1.3 per cent or 620,000 barrels from 49.2 million in 2007, the International Energy Agency says. Globally, oil consumption is expected to grow slightly this year by 760,000 barrels per day to an average of 86.8 million barrels, the weakest global growth rate since 2002. Some analysts believe that oil demand in non-OECD countries will fall to its weakest level for years and could brush close to zero. Beijing's push to stockpile fuel in the run-up to the Games to ensure there are no shortages is likely to lead to a fall in demand over the next few months as those supplies are used up. Weaker economic growth driven by falling demand for manufactured goods from developed countries is likely to be another factor dragging on non-OECD oil demand for the remainder of this year.

International Herald Tribune:
- Two California companies said Thursday that they would each build solar power plants that were 10 times bigger than the largest now in service, creating the first true utility-scale use of a technology now mostly confined to rooftop supplements to conventional power supplies. The solar power will be sold to Pacific Gas & Electric, which is under a state mandate to get 20 percent of its electricity from renewable sources by 2010.

China Daily:
- Growth in China Exports to US Halves. The growth of China exports to the United States, the country's second-largest trading partner, slowed in the first half of the year, the General Administration of Customs said on its website Thursday. China's exports to the US in the first six months totaled $116.79 billion, up 8.9 percent from the same period last year. The growth rate was 9 percentage points lower than a year earlier.

South China Morning Post:
- Hongkongers are tightening their purse strings as consumer confidence has plunged to a near three-year low amid rising inflation, a survey indicates.

Late Buy/Sell Recommendations
Citigroup:
- Reiterated Buy on (URBN), raised estimates, target $39.
- Reiterated Buy on (GME), target $66.
- Upgraded (PCLN) to Buy, target $130.

Night Trading
Asian Indices are -.50% to +.25% on average.
S&P 500 futures +.26%.
NASDAQ 100 futures +.18%.

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Economic Releases
8:30 am EST
- The Empire Manufacturing Index for August is estimated to rise to -4.2 versus -4.9 in July.

9:00 am EST
- Net Long-term TIC Flows for June are estimated to fall to $60.0 billion versus $67.0 billion in May.

9:15 am EST
- Industrial Production for July is estimated unch. versus a .5% increase in June.
- Capacity Utilization for July is expected to fall to 79.8% versus 79.9% in June.

10:00 am EST
- Preliminary Univ. of Mich. Consumer Confidence for August is estimated to rise to 62.0 versus a reading of 61.2 in July.

Other Potential Market Movers
- The Fed’s Evans speaking could also impact trading today.

BOTTOM LINE: Asian indices are slightly lower, weighed down by commodity shares in the region. I expect US equities to open mixed and to rally into the afternoon, finishing modestly higher. The Portfolio is 100% net long heading into the day.

Stocks Finish Higher, Boosted by Gaming, Bank and Homebuilding Shares

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In Play

Stocks Rising into Final Hour on Lower Commodity Prices, Short-Covering, Less Financial Sector Pessimism

BOTTOM LINE: The Portfolio is higher into the final hour on gains in my Internet longs, Medical longs, Gaming longs, Alternative Energy longs and Commodity shorts. I have not traded today, thus leaving the Portfolio 100% net long. The tone of the market is positive as the advance/decline line is higher, sector performance is mostly positive and volume is about average. Investor anxiety is above average. Today’s overall market action is bullish. The VIX is falling 4.45% and is still above-average at 20.57. The ISE Sentiment Index is low at 112.0 and the total put/call is below average at .81. Finally, the NYSE Arms has been running around average most of the day and is currently .95. The Euro Financial Sector Credit Default Swap Index is falling .69% today to 80.56 basis points. This index is up from a low of 52.66 on May 5^th, but down from 129.46 basis points on March 20^th. The North American Investment Grade Credit Default Swap Index is falling .39% today to 134.91 basis points. The TED spread is falling 2.89% to .94. The 10-year TIPS spread, a good gauge of inflation expectations, is rising 2 basis point to 2.17%, which is the lowest since October 14, 2003 and down 46 basis points in less than six weeks. Given today’s perceived “bad” economic data and more evidence that Europe is weakening considerably, today’s broad market action is even more bullish. The Russell 2000 and Naz continue to lead. The US dollar index continues to slice through overhead resistance and has risen in 17 of the last 22 days. The index will likely pause around the 77.0-78.0 level, before another surge higher begins during 4Q. As well, Goldman Sachs is calling a bottom in the US dollar today. India’s Sensex appears to be rolling over again, falling another 2.4% last night on inflation concerns and slowing growth. Emerging market inflation will likely remain far more sticky than US inflation, despite falling commodity prices, as rising unit labor costs are much more of an issue in those markets. Despite the recent substantial decline in crude, it is interesting to note that the oil volatility index(OVX) has declined to 46.63 today from a high of 54.19 on July 21^st. Much like the VIX for stocks, I would expect to see this spike near a meaningful bottom in oil. Nikkei futures indicate an +4 open in Japan and DAX futures indicate an +30 open in Germany tomorrow. I expect US stocks to trade mixed-to-higher into the close from current levels on short-covering, lower commodity prices, less financial sector pessimism and bargain-hunting.

Today's Headlines

Bloomberg:
- States Double Down on Hedge Funds as Returns Slide. Public pension funds in the U.S. are increasing bets on high-risk hedge funds and real estate in an attempt to fill deficits in retirement plans and make up for their worst performance in six years. New York Comptroller Thomas DiNapoli is asking lawmakers to increase a cap limiting the amount of so-called alternative investments in the state's Common Retirement Fund, the third- biggest U.S. public pension at $153.9 billion. South Carolina's retirement system adopted a plan in February to invest as much as 45 percent of its $29 billion in hedge funds, private equity, real estate and other alternatives, from nothing 18 months ago. Alternative investments typically include private equity, hedge funds, real estate and commodities. That category is expanding to include timber and infrastructure. Commodity prices in July fell 10 percent, the biggest decline since March 1980, as measured by the Reuters/Jefferies CRB Index. The index has plunged 19 percent from its July 3 peak. ``Chasing performance, especially in a public fund, can be a dangerous thing,'' said Stan Rupnik, the chief investment officer at the Teachers' Retirement System of the State of Illinois.
- The euro dropped to a 5 1/2-month low against the dollar after crude oil fell and a report showed Europe's economy contracted for the first time since the 15- nation currency was introduced almost a decade ago. Europe's currency has declined 7.6 percent since touching a record high in July as traders reduced speculation that the European Central Bank will raise interest rates and oil tumbled. The pound fell to the lowest level in 22 months against the dollar on concern Britain's economy is falling into a recession. ``Not only is the European economy weakening, but the growth outlook is to remain weak,'' said Michael Woolfolk, senior currency strategist in New York at Bank of New York Mellon, the world's largest custodial bank, with more than $23 trillion in assets. ``A further move down in crude oil will be a bullish sign for the dollar.''
- Jumbo mortgage borrowers may pay lower interest rates after a trade group loosened restrictions on a market for Fannie Mae(FNM) and Freddie Mac(FRE) mortgage bonds to combat the housing slump. The Securities Industry and Financial Markets Association will permit the larger loans that Fannie and Freddie will be financing to be accepted into the main market for mortgage bonds in limited amounts. That may boost rates on loans of less than $417,000 and cut the costs of some larger, or ``jumbo,'' loans. Revised guidelines for the so-called To Be Announced market will permit securities composed of as much as 10 percent of the bigger loans, New York-based Sifma said in a statement today.
- The cost of protecting Russian bonds from default rose to the highest in four months after Georgian officials said Moscow had stalled its withdrawal from the region, two days after the countries agreed a peace plan. Credit-default swaps on Russian government debt climbed 9 basis points to 123, highest since April 16, according to CMA Datavision prices at 3 p.m. in London.
- Wal-Mart Stores Inc.(WMT) said second- quarter profit rose 17 percent as consumers spent more on lower-priced medicine and food.
- OAO Mechel(MTL), attacked by Vladimir Putin for inflating Russian coking-coal prices, was ordered to cut tariffs for domestic steelmakers ``considerably'' after an antitrust probe found the company violated competition law. The company faces a fine at the ``lower end'' of a 1-to-15 percent range of the previous year's coking-coal sales, Igor Artemyev, head of the Federal Antimonopoly Service, told reporters in Moscow today.
- Soybeans Plunge as Reports Show Slowing Demand. In the week ended Aug. 7, exporters canceled 49,700 metric tons of previously purchased soybeans for delivery before Sept. 1, the U.S. Department of Agriculture said today. China, the biggest buyer, canceled 56,300 tons. Demand for soybeans by makers of animal feed and vegetable oil fell 6.7 percent in July from a year earlier, the National Oilseed Processor Association said today.
- The U.S. highway death rate fell last year to the lowest since recordkeeping began in 1975 as automakers built safer cars and motorists started cutting back on driving. The death toll decreased 4 percent to 41,059, the lowest since 1994. Fatalities still rose for motorcycle riders.
- Billionaire Nelson Peltz and his Trian hedge-fund group sold its stake in Starbucks Corp.(SBUX) added shares of Hansen Natural Corp.(HANS), sending the Monster Energy drink maker up as much as 13 percent in Nasdaq trading. Peltz picked up shares of Hansen and retailer Target Corp.(TGT) as of June 30, according to filings today by Peltz's funds with the U.S. Securities and Exchange Commission. He also added shares of tobacco companies UST Inc., Philip Morris International Inc. and Lorillard Inc.
- India's inflation soared to a 16- year high and may accelerate further after the government approved wage increases for civil servants. Wholesale prices rose 12.44 percent in the week to Aug. 2, after increasing 12.01 percent in the previous week, the commerce ministry said in New Delhi today.
- Europe's economy contracted for the first time since the introduction of the euro almost a decade ago as faltering sales undermined investment by companies and soaring costs eroded consumer spending power. Gross domestic product fell 0.2 percent in the second quarter from the first, when it increased 0.7 percent, the European Union statistics office in Luxembourg said today.
- The world's coal, grain and ore shippers, after the longest losing streak since 2005, may face another two years of declines as the fleet expands and slower global economic growth curbs demand for raw materials.

Wall Street Journal:
- Senator John McCain called on the U.S. and its allies to pressure Russia to permanently withdraw from Georgia and said international monitors should be sent to the country to avert a humanitarian disaster. The North Atlantic Treaty Organization should grant Georgia and Ukraine membership, McCain added in a commentary published in today's Wall Street Journal. He also called for countries to review their relationships with Russia and demand that Russian leaders promote stability and peace in the region.
- Russia may have targeted key pipelines in Georgia carrying oil and gas to the Mediterranean as a warning to the West, citing Georgian officials. A line of 45 bomb craters were seen close to the buried Baku-Tbilisi-Ceyhan pipeline in a remote field in Georgia 15 miles south of the capital; Russia denied attempting to bomb the pipelines and the Journal said based on the evidence, there had either been an attempt to destroy it or a deliberate near-miss intended as a warning. The BTC, operated by BP Plc, carries 850,000 barrels of crude oil a day from Azerbaijan to Turkey, equal to 1% of global demand.
- US Commodity-Based ETFs Gain Traction With Investors.
- John McCain will unveil a technology agenda that bundles previously announced pro-business proposals with continued support for a hands-off approach to regulation. The plan, dubbed "John McCain and American Innovation," is set to be released Thursday on the Republican presidential candidate's campaign Web site. It will call for a 10% tax credit on wages paid to all research-and-development employees. At the same time, it will reiterate Sen. McCain's opposition to Internet taxes and new laws guaranteeing net neutrality, the idea that Internet providers must treat all legal Internet traffic equally. The goal of the plan, said McCain spokesman Taylor Griffin, is to create "good, high-paying, innovation-oriented 21st-century jobs." Several CEOs have signed on to support Sen. McCain, including Ms. Whitman, Cisco Systems Inc.'s John Chambers and former Hewlett-Packard Co. CEO Carly Fiorina.

NY Times:
- Demand for Home Geothermal Heat Pumps Grows in US.
- Ron Insana made a big name for himself reporting and interviewing Wall Street hotshots as an anchor on CNBC. But so far, his foray into the hedge fund world hasn’t been such a hit. Nevertheless, Mr. Insana has reportedly landed a new position at one of the hedge-fund industry’s most prominent firms: SAC Capital.

The Detroit News:
- Detroit home sales improve. Purchases go up 20%, foreclosures drop 17% in four-county area in July from last year. In the four-county region of Wayne, Oakland, Macomb and Livingston, 4,245 homes were sold in July, a 20 percent gain over the 3,538 sold in the same month last year, according to data from RealComp, the Farmington Hills-based multiple listing service. The number of pending home sales -- where an offer has been accepted but the deal isn't yet closed -- was up as well, to 5,971, a 34.1 percent increase from last July. It was the seventh month in a row that Metro Detroit home sales were up year over year. All told, year-to-date sales in Metro Detroit are up 13.38 percent over the January-July period of last year. "It seems that we're on an upward trend this year," said Don Grimes, senior research economist at the University of Michigan. "This is good news, especially for a state like Michigan." According to data from RealtyTrac, an online marketplace for foreclosed properties, Michigan's foreclosure rate of one in every 389 properties with a filing still ranked seventh in the country, but was down 17 percent from a year ago.

EETimes:
- The rumors were flying at the Flash Memory Summit here. The big rumor is that Seagate Technology Inc.(STX) is interested in buying all or part of SanDisk Corp.(SNDK), according to sources in the industry.

AP:
- Oil prices pulled back Thursday, erasing most of the gains from the previous day's rally, as waning U.S. demand for energy overshadowed supply threats from the conflict in Georgia. the pump, retail gas prices slid further. A gallon of regular fell about a penny overnight to a new national average of $3.778, according to auto club AAA, the Oil Price Information Service and Wright Express. "It's just a market that has all the feeling of continuing to work lower until we get some definitive evidence that demand is going to improve because of lower pump prices, and that seems a long ways off," said Jim Ritterbusch, president of energy consultancy Ritterbusch and Associates in Galena, Ill. "According to our calculations, the exchange rate development has contributed $12.30 per barrel to the decline in oil prices since mid-July, when the US dollar hit a low of 1.6 against the euro," said Vienna's JBC Energy in a research note. "Since then the greenback has improved by 6.9 percent."

VentureBeat:
- Over the past few days, we’ve gotten multiple confirmations from reliable sources that the first phone built on Google’s Android platform will launch in the next several weeks. It will be an HTC phone, likely the HTC Dream, and will be launched internationally on the T-Mobile network. A window of between Oct 15 and Nov 30 is most likely, according to these sources.

USA Today:
- It may be Barack Obama's party, but that may not prevent an emotional show of support for former rival Hillary Rodham Clinton at the Democratic National Convention later this month. Aides to Obama, who will formally accept the Democratic nomination in Denver on Aug. 28, are girding for the possibility that Clinton's backers will force a roll call vote that would demonstrate the extent of support for the New York senator.

Reuters:
- Precisely targeted radiation therapy can eradicate tumors that have spread to other parts of the body, offering more months or years of life to patients who have no other options, U.S. researchers reported on Wednesday.
- Texas oil billionaire T. Boone Pickens said on Thursday crude prices may soon fall as low as $110 a barrel amid falling gasoline demand, but should not sink below $100 because the United States depends heavily on oil imports. Pickens' hedge fund BP Capital, which manages about $7 billion in assets, sank about 35 percent in July, according to a report this week in the New York Post.
- ImClone Systems(IMCL) hired JPMorgan Chase(JPM) to help it review alternatives. NY-based ImClone hired the securities firm to evaluate options including Bristol-Myers Squibb’s $5.2 billion offer or a split of the company.

Daily Telegraph:
- The UK's financial industry watchdog, the Financial Services Authority, has been blamed for soaring oil prices by an American economics professor. Professor Michael Greenberger, a former official at US regulator the Commodity Futures Trading Commission (CFTC), said the FSA had "let the British people down" because it failed to clamp down on speculation in the market. In an interview for BBC Radio 4's The Investigation - to be broadcast tonight - Prof Greenberger, former director of the CFTC's trading and markets division, said: "The FSA has let the British people down. If the FSA adopted limits on speculation, you would see the price of gasoline drop in the United Kingdom."

Reforma:
- Mexico will gradually increase gasoline prices until they equal those in the US. The goal is to bring local price of gasoline, which is currently $2.73/gallon, in line with that of the US, which is $3.82/gallon, citing Energy Minister Georgina Kessel.

Bear Radar

Style Underperformer:

Large-cap Growth +.46%

Sector Underperformers:

Gold irlind (-3.60%), Oil Service (-2.06%) and Energy (-1.92%)

Stocks Falling on Unusual Volume:

MDR, FTO, TRLG, CHDX, PAAS, OVTI, GSOL, FLO and XOP

Stocks With Unusual Put Option Activity:

1) HANS 2) ADSK 3) OTEX 4) BGG 5) NTES