Monday Watch

Weekend Headlines
Bloomberg:

- U.S. stocks staged their steepest weekly surge in 34 years after the Federal Reserve's interest- rate cut and signs the credit crisis is ebbing boosted equities trading at the lowest valuations in two decades. ``There's a lot of inexpensive merchandise out there,'' said Warren Koontz, who oversees $2.5 billion as chief investment officer for large, value stocks at Loomis Sayles & Co. in Boston. ``The most I've seen in 25 years.'' Stocks ``overshot to the downside given almost $5 trillion stimulus into the marketplace in terms of liquidity and capitalization done by governments around the world,'' said David Goerz, chief investment officer at Highmark Capital Management in San Francisco, which oversees $20 billion. ``I wouldn't want to be betting against them at this point.''

- Boeing Co.(BA) machinists start returning to work today after accepting a contract with 15 percent raises, ending a strike that idled the planemaker's factories for eight weeks and cut profit by about $10.3 million a day. The four-year contract was approved last night by 74 percent of the voters, the International Association of Machinists and Aerospace Workers said in Seattle, home to Chicago-based Boeing's manufacturing hub. The first workers are scheduled to return late today with the start of the third shift. The 57-day walkout was the third-longest of seven in the union's 73-year history. Workers who averaged $54,000 a year in salary had to get by on union strike pay of $150 a week. ``I think the union's out of touch with reality'' and shouldn't have gone on strike, said Don Icenogle, 45, an inspector at the plane-development center in Seattle who voted ``yes'' both times. ``This isn't that different a contract from the first one, and yet 57 days later it was approved.''

- The cost of protecting investors in Australian corporate bonds against default declined, according to traders of credit-default swaps. The Markit iTraxx Australia index was quoted 5 basis points lower at 265 points as of 9:53 am in Sydney, Citigroup Inc. data show.

- The benchmark index for U.S. stock options had the biggest weekly drop in 14 months as bank lending rates retreated following the Federal Reserve's sixth interest- rate cut this year. The VIX, as the Chicago Board Options Exchange Volatility Index is known, fell 4.8 percent to 59.89 today, capping a 24 percent decline for the week. ``The market will stay pretty volatile I think even though it looks like we're in a bottoming process'' said Robert Baur, chief economist at Principal Global Investors in Des Moines, Iowa. ``We've got a pretty good recession already baked in.''

- ECB May Follow as Fed, BOJ, India ‘Shocked’ Into Cuts.

- Jean-Claude Trichet is extending the European Central Bank's powers just as it gears up for what may be the fastest round of interest-rate cuts in its 10-year history.

- China's manufacturing contracted as the worst financial crisis since the Great Depression eroded export demand. The Purchasing Managers' Index fell to a seasonally adjusted 44.6 last month from 51.2 in September, the China Federation of Logistics and Purchasing said today in an e-mailed statement. That was the lowest since the gauge was launched in July 2005. A reading below 50 reflects a contraction, above 50 an expansion.

- India's central bank unexpectedly cut interest rates for the second time in two weeks and reduced the amount of money lenders must hold in reserve in a bid to protect the economy from the global slowdown. The Reserve Bank of India lowered its repurchase rate to 7.5 percent from 8 percent, reduced the amount of deposits that lenders need to set aside as reserves to 5.5 percent from 6.5 percent, and cut the amount of money lenders are required to keep in government bonds to 24 percent from 25 percent. The steps signal a U-turn from the Reserve Bank's policy stance just a week ago, when Governor Duvvuri Subbarao said a ``heightened vigil'' was needed to fight inflation.

- Steel Authority of India Ltd., the country’s second-biggest steelmaker, and rival Essar Steel Ltd. cut November prices to cope with falling demand. Prices of flat and long products have been cut by as much as $121 a ton, said RK Singhal, a spokesman for Steel Authority. The reductions mean that the price of Steel Authority’s benchmark hot-rolled products will fall by more than 10%, according to Niraj Shah, an analyst at Centrum Broking Pvt.

- Gold, the metal that rallied during every US recession in the past three decades, may drop to a two-year low as the threat of deflation curbs bullion’s appeal. The number of gold futures held in New York plunged 484% since its Jan. 15 peak, according to Bloomberg. The metal may drop to $600 by year-end for the first time since 2006, said Joel Crane, a Deutsche Bank AG strategist in NY.

- Wall Street's 139-year-old jewel, Goldman Sachs(GS), saved itself by changing into a commercial bank. Now it must compete in a world where its culture, network and trading acumen may not be enough to make it sparkle.

- Panasonic Corp., the world's largest maker of consumer electronics, reached to a preliminary agreement to buy Sanyo Electric Co., the Nikkei newspaper said.

Wall Street Journal:

- McCain’s Honor. A curiosity of this Presidential campaign has been the way former media idolaters of John McCain have suddenly turned on him. They now claim to be horrified by his choice of Sarah Palin, or by his ad hoc economic decision-making, or his TV ads, or something. Whom do they think they've been praising all these years?

- The GOP’s vice-presidential pick says she’d work on energy, government reform and special-needs kids in the White House.

Barron’s:

- Steve Leuthold, who manages $4 billion at Leuthold Weeden Capital Management in Minneapolis, says the US Leuthold has become “a very convinced and optimistic bull” based on a valuation model that is “the most positive we have seen since 1984,” Barron’s said. Biotechnology stocks are attractive because they aren’t tied closely to the economic decline and operate with fewer government regulations. Many are potential acquisition targets, Leuthold said. Technical analysis also indicates that smaller stocks are re-emerging as market leaders, Leuthold said. equity market may hit bottom this month and recommends biotechnology, small-capitalization stocks.

- US stocks will rally until year-end as the US dollar strengthens against the euro, institutional investors told Barron’s in its “Big Money” poll. The DJIA may rally to 10,642 by Dec. 31, money managers who are “bullish”(50%) said, while those who are “bearish”(17%) see the Dow at 9,500. By mid-2009, the bulls anticipate the Dow rising to 11,621, while the bears expect it to decline to 9,379.

NY Times:

- Prostitute-Friendly Ballot Measure Finding Support.

San Francisco Chronicle:

- Despite the economic downturn, Salesforce.com(CRM) in San Francisco is one company that's still growing.

Reuters:

- Zhu Min, vice president of Bank of China Ltd., said the global financial crisis will hurt China and the country is only beginning to feel the impact, citing Zhu. China has already seen “a sharp slowdown in industrial profit growth and fiscal income” and the crisis will “precede economic and political turmoil by eight to 12 months,” Zhu said at a conference.

Financial Times:

- Polygon, the Anglo-US hedge fund group which built a name for investor activism at companies such as British Energy, is suspending redemptions in its flagship $4bn Global Opportunities multi-strategy fund while it unwinds the fund and returns money to investors.

TimesOnline:
- European hedge fund giant GLG Partners Inc. is sending a letter to investors this weekend saying it will launch a “liquidity review” of its funds to decide the best way to preserve capital. GLG will stop investors from making withdrawals from its Market Neutral fund for six months and will tell investors looking to leave its Emerging Market fund they will not get a full return because some of the funds investments are too illiquid to sell.

- British business leaders are calling for the Bank of England’s monetary policy committee to cut interest rates by as much as 100 basis points this week to prevent a deep recession, citing economists and executives.

Telegraph:

- Are the hedge-funders a spent force? The days of excess are being replaced by an era of relative austerity. Celia Walden on how the masters of the universe are coping.

Estado de Sao Paulo:

- More than half of Brazilian companies plan to curb investments next year as the credit freeze worsens, citing a survey by a national industry group. About 57% of 658 companies in the country’s main industrial state will slow spending in 2009, citing a survey by the Sao Paulo State Federation of Industries. Only 16% will boost budgets, and the rest plan to maintain current levels. Brazilian credit is the scarcest its been in 20 years, citing Paulo Skaf, president of the group known as Fiesp.

China Daily:
- The government should find the right balance between curbing inflation and maintaining a stable economic growth, China’s Premier Wen Jiabao said on Saturday. "We must be aware that this year would be the worst in recent times for our economic development," Wen said in an article published in the Qiushi journal. Though maintaining economic growth is important, "we should fully understand the harms (serious) inflation can cause to economic growth, people's livelihood and social stability", Wen wrote.

The Australian:

- News Corporation(NWS/A) chairman Rupert Murdoch has warned that Barack Obama could worsen the world financial crisis if he is elected US president next week and implements protectionist policies. In an interview with The Weekend Australian before delivering the first of six Boyer lectures on ABC radio tomorrow afternoon, Mr Murdoch said the Democrats' policies would result in "a real setback for globalization" if implemented. Mr Murdoch said he did not know whether Senator Obama would implement all of the protectionist measures espoused by the party. "Presidents don't often behave exactly as the campaign might have suggested because they become prisoners of all sort of things - mainly circumstances and events," Mr Murdoch said.

Weekend Recommendations
Barron's:
- Made positive comments on (MI), (TAP), (KEY), (FITB), (ORCL), (CVS), (GENZ) and (MET).

- Made negative comments on (CHD).

Citigroup:

- Reiterated Buy on (PCLN), target $83.

- Added (AOC) and (MMC) to Top Picks Live List and deleted (AIZ) and (ACV).

Night Trading
Asian indices are +1.25% to +5.0% on avg.
S&P 500 futures +.81%.
NASDAQ 100 futures +.77%.

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
Upgrades/Downgrades
Rasmussen Business/Economy Polling

Earnings of Note
Company/Estimate
- (ASF)/.45

- (SPG)/1.57

- (GT)/.30

- (AMT)/.13

- (VIA/B)/.55

- (N)/-.01

- (PPS)/.43

- (MA)/2.23

- (FST)/1.40

- (ADP)/.50

- (PBI)/.69

- (MHK)/1.11

- (SYY)/.47

- (APC)/1.48

Upcoming Splits

- None of note

Economic Releases

10:00 am EST

- ISM Manufacturing for October is estimated to fall to 41.5 versus 43.5 in September.

- ISM Prices Paid for October is estimated to fall to 48.0 versus 53.5 in September.

- Construction Spending for September is estimated to fall .8% versus a 0.0% gain in August.

Afternoon:

- Total Vehicle Sales for October are estimated to fall to 12.0M versus 12.5M in September.

Other Potential Market Movers
- The Fed’s Lacker speaking, (NITE) analyst meeting and Oppenheimer Healthcare Conference could also impact trading today.

BOTTOM LINE: Asian indices are sharply higher, boosted by technology and financial shares in the region. I expect US stocks to open modestly higher and to maintain gains into the afternoon. The Portfolio is 100% net long heading into the week.

Weekly Outlook

Click here for Wall Street Week Ahead by Reuters.

Click here for stocks in focus for Monday by MarketWatch.

There are a number of economic reports of note and several significant corporate earnings reports scheduled for release this week.

Economic reports for the week include:

Mon. – Total Vehicle Sales, ISM Manufacturing, ISM Prices Paid, Construction Spending

Tues. – Factory Orders, weekly retail sales

Wed. – Weekly MBA mortgage applications report, weekly EIA energy inventory report, Challenger Job Cuts, ADP Employment Change, ISM Non-Manufacturing

Thur. – Preliminary 3Q Non-farm Productivity, Preliminary 3Q Unit Labor Costs, Initial Jobless Claims, ICSC Chain Store Sales

Fri. – Change in Non-farm Payrolls, Unemployment Rate, Average Hourly Earnings, Wholesale Inventories, Pending Home Sales, Consumer Credit

Some of the more noteworthy companies that release quarterly earnings this week are:

Mon. – Goodyear Tire(GT), American Tower(AMT), Viacom(VIA/B), Forest Oil(FST), Mastercard(MA), Post Properties(PPS), Automatic Data Processing(ADP), NetSuite(N), Anadarko Petroleum(APC), Pitney Bowes(PBI), SYSCO(SYY), Mohawk Industries(MHK)

Tues. – Dean Foods(DF), St Joe(JOE), Archer-Daniels(ADM), Emerson Electric(EMR), Pappa John’s(PZZA), Rowan Cos(RDC), Louisiana-Pacific(LPX), Kenneth Cole(KCP), Vornado Realty(VNO)

Wed. – Foster Wheeler(FWLT), Corinthian Colleges(COCO), Checkpoint Systems(CKP), Quanta Services(PWR), Time Warner(TWX), IAC/InterActiveCorp(IACI), Marsh & McLennan(MMC), Medco Health(MHS), Duke Energy(DUK), Transocean(RIG), Polo Ralph Lauren(RL), News Corp.(NWS/A), Cisco Systems(CSCO), Vulcan Materials(VMC), Conseco(CNO), THQ Inc.(THQI), Devon Energy(DVN), Las Vegas Sands(LVS), McDermott Intl.(MDR), Whole Foods(WFMI)

Thur. – Wendy’s(WEN), Dynegy(DYN), Warnaco(WRC), Williams Cos(WMB), Grub & Ellis(GBE), Qualcomm(QCOM), Walt Disney(DIS), Flour Corp.(FLR), Dolby Labs(DLB), Avis Budget(CAR), CB Richard Ellis(CBG), Onyx Pharmaceuticals(ONXX), Nvidia Corp.(NVDA), BearingPoint(BE), priceline.com(PCLN), El Paso(EP), Beazer Homes(BZH), AutoNation(AN), OfficeMax(OMX)

Fri. – Anheuser-Busch(BUD), Sprint Nextel(S), Ford Motor(F), Berkshire Hathaway(BRK/A), Imclone(IMCL)

Other events that have market-moving potential this week include:

Mon. – Fed’s Lacker speaking, (NITE) analyst meeting, Oppenheimer Healthcare Conference

Tue. – (FFIV) analyst meeting, Fed’s Fisher speaking, Oppenheimer Healthcare Conference, Goldman Sachs Software Conference

Wed. – (L) investor meeting, (SLE) analyst meeting, (CEPH) analyst day, Goldman Sachs Industrials Conference, Keefe Bruyette Woods Brokerage Conference, Goldman Sachs Software Conference

Thur. – Fed’s Warsh speaking, (CTV) financial analyst conference, (ILMN) analyst day, (SRP) analyst meeting

Fri. – Fed’s Lockhart speaking

BOTTOM LINE: I expect US stocks to finish the week modestly higher on an end to political uncertainty, seasonal strength, bargain-hunting, technical buying, less credit market angst, diminishing financial sector pessimism, less forced selling and short-covering. My trading indicators are giving mostly bullish signals and the Portfolio is 100% net long heading into the week.

Market Week in Review

S&P 500 968.75 +10.49%*

Click here for the Weekly Wrap by Briefing.com.

*5-Day Change

Weekly Scoreboard*

Indices
S&P 500 968.75 +10.49%
DJIA 9,325.01 +11.29%
NASDAQ 1,720.95 +10.88%
Russell 2000 537.52 +14.09%
Wilshire 5000 9,732.07 +10.86%
Russell 1000 Growth 397.85 +11.37%
Russell 1000 Value 521.37 +10.24%
Morgan Stanley Consumer 565.72 +6.48%
Morgan Stanley Cyclical 534.96 +8.84%
Morgan Stanley Technology 376.53 +10.75%
Transports 3,885.83 +12.68%
Utilities 378.42 +6.99%
MSCI Emerging Markets 25.09 +24.11%

Sentiment/Internals
NYSE Cumulative A/D Line 22,974 +22.26%
Bloomberg New Highs-Lows Index -442 +86.93%
Bloomberg Crude Oil % Bulls 57.0 +90%
CFTC Oil Large Speculative Longs 185,108 +5.91%
Total Put/Call .93 -23.77%
OEX Put/Call 1.15 +7.48%
ISE Sentiment 121.0 +6.14%
NYSE Arms .93 -30.07%
Volatility(VIX) 59.89 -24.31%
G7 Currency Volatility (VXY) 23.03 +1.23%
Smart Money Flow Index 6,701.71 +6.82%
AAII % Bulls 37.14 -4.13%
AAII % Bears 40.57 +4.72%

Futures Spot Prices
Crude Oil 67.81 +4.97%
Reformulated Gasoline 149.59 +2.11%
Natural Gas 6.78 +5.78%
Heating Oil 208.42 +5.26%
Gold 718.20 -2.42%
Base Metals 135.74 +9.75%
Copper 182.90 +7.74%
Agriculture 289.60 +5.90%

Economy
10-year US Treasury Yield 3.96% +27 basis points
10-year TIPS Spread .91% +21 basis points
TED Spread 2.65% -2 basis points
N. Amer. Investment Grade Credit Default Swap Index 200.94 -8.66%
Emerging Markets Credit Default Swap Index 681.18 -18.31%
Citi US Economic Surprise Index -71.40 -64.14%
Fed Fund Futures imply 55.3% chance of 50 basis point cut, 44.7% chance of 25 basis point cut on 12/16
Iraqi 2028 Govt Bonds n/a
4-Wk MA of Jobless Claims 475,500 -1.0%
Average 30-year Mortgage Rate 6.46% +42 basis points
Weekly Mortgage Applications 476,700 +16.81%
Weekly Retail Sales +.7%
Nationwide Gas $2.50/gallon -.28/gallon
US Heating Demand Next 7 Days 30.0% below normal
ECRI Weekly Leading Economic Index 112.95 -.95%
US Dollar Index 85.63 -.93%
Baltic Dry Index 851 -22.78%
CRB Index 268.39 +4.84%

Best Performing Style
Small-cap Value +14.69%

Worst Performing Style
Large-cap Value +10.24%

Leading Sectors
Gaming +32.4%
Homebuilders +26.41%
Airlines +19.47%
Retail +19.01%
Networking +17.04%

Lagging Sectors
Utilities +6.99%
Tobacco +6.89%
Software +6.74%
Insurance +4.64%
HMOs -1.23%

One-Week High-Volume Gainers

One-Week High-Volume Losers

*5-Day Change

Stocks Surging into Final Hour on Less Credit Market Angst, Diminishing Financial Sector Pessimsim, Bargain-Hunting and Short-Covering

BOTTOM LINE: The Portfolio is higher into the final hour on gains in my Medical longs, Gaming longs, Biotech longs and Retail longs. I have not traded today, thus leaving the Portfolio 100% net long. The tone of the market is very positive as the advance/decline line is substantially higher, most sectors are rising and volume is about average. Investor anxiety is above average. Today’s overall market action is very bullish. The VIX is falling 9.11% and is very elevated at 57.25. The ISE Sentiment Index is below average at 129.0 and the total put/call is above average at .98. Finally, the NYSE Arms has been running high most of the day, hitting 1.44 at its intraday peak, and is currently .66. The Euro Financial Sector Credit Default Swap Index is falling 4.28% today to 93.0 basis points. This index is up from a low of 52.66 on May 5th, but down from 157.81 on Sept. 16th. The North American Investment Grade Credit Default Swap Index is falling 1.04% to 199.35 basis points. The TED spread is falling 8.06% to 259 basis points. The TED spread is now down 205 basis points in about three weeks. The 2-year swap spread is up .63% to 120.0 basis points. The Libor-OIS spread is falling 6.64% to 237 basis points. The 10-year TIPS spread, a good gauge of inflation expectations, is falling 6 basis points to .84%, which is down 179 basis points in about four months and at the lowest level since February 1999. Many market leading stocks are posting another day of massive gains, substantially outperforming the broad market. (GS) is putting in a nice reversal today, which is helping to propel the (XLF) to session highs. As well, (AAPL), which had been under meaningful pressure early, is helping propel the Nasdaq to session highs as it recoups losses. I still think (AAPL) is an excellent buy around current levels. Gauges of credit market angst are improving at a fairly rapid rate. Nikkei futures indicate an +500 open in Japan and DAX futures indicate an +123 open in Germany on Monday. I expect US stocks to trade modestly higher into the close from current levels on short-covering, less financial sector pessimism, diminishing forced selling, less credit market angst and bargain-hunting.

Today's Headlines

Bloomberg:
- The cost of borrowing dollars for three months in London fell, capping the first monthly decline since May, after central banks provided cash and cut interest rates to unlock the supply of credit. The London interbank offered rate, or Libor, for such loans slid 16 basis points to 3.03 percent today, the 15th consecutive drop, according to the British Bankers' Association. The overnight rate decreased 32 basis points to an all-time low of 0.41 percent, down from almost 6.88 percent on Sept. 30. ``The situation in the money markets has improved after all the actions by central banks,'' said Patrick Jacq, a senior fixed- income strategist in Paris at BNP Paribas SA. ``Given the point that we were at and where we are now, it seems the worst might be behind us.''

- The European Central Bank has embarked on the fastest round of interest-rate cuts in its history as the financial crisis threatens to cripple the economy, a survey of economists shows. The Frankfurt-based ECB will slash its benchmark rate to 2.5 percent by April, according to the median of 28 forecasts in the Bloomberg News survey. That would see the rate drop 1.75 percentage points from its 4.25 percent peak in six months, outpacing the ECB's last easing cycle between May 2001 and June 2003.

- Interest rates on U.S. commercial paper fell to about the lowest in four years after the Federal Reserve said it absorbed more than 9 percent of the market. Interest rates on the highest-ranked 30-day commercial paper dropped 39 basis points to 2.02 percent, about the lowest in four years, according to yields offered by companies and compiled by Bloomberg. Yields on overnight and seven-day paper fell to the lowest levels in at least 13 years, Bloomberg data show. The U.S. commercial paper market expanded for the first time in seven weeks as the Fed purchased $145.7 billion of 90-day paper from companies including American Express Co. and General Electric Co., part of its efforts to free up lending. Commercial paper sales seized up after Lehman Brothers Holdings Inc. filed for bankruptcy on Sept. 15, prompting investors to seek safety. The program has ``worked extremely well,'' said Randy Harrison, managing director and co-head of short-term products at New York-based Citigroup Inc.

- Investors withdrew a record $70.7 billion from US stock mutual funds in October, according to data compiled by TrimTabs Investment Research, raising questions about how long they will stay out of the market. Redemptions by individual investors and institutions jumped 26% from the previous high of $56 billion in September.

- Mark Fleming, chief economist at First American CoreLogic, says FDIC plan may stem foreclosures. (video)

- JPMorgan Chase & Co.(JPM), the largest U.S. bank by market value, plans to modify terms on $110 billion of mortgages and forgo foreclosure proceedings on all real-estate loans while the changes are implemented in the next 90 days. The offer extends to customers of Washington Mutual Inc., the savings and loan JPMorgan agreed to buy last month, the New York-based bank said today in a statement. Loan modifications may include interest-rate or principal reductions. The bank said it will establish 24 regional counseling centers to provide face-to- face help in areas with high delinquency rates.

- Commodities headed for their worst month since at least 1956 on concern that a slump in global economic growth will sap demand for raw materials. The Reuters/Jefferies CRB Index of 19 raw materials has plunged 24 percent this month, the steepest decline in at least a half-century. Crude oil is set for a record monthly drop, copper its biggest retreat in two decades and gold its worst performance in 25 years.

- Gold futures fell, heading for the biggest monthly plunge in 28 years, as the dollar climbed, reducing the appeal of the precious metal as an alternative investment. This month, the price has dropped 17 percent, the most since March 1980. Gold may fall to $620 should the dollar strengthen to $1.20 against the euro, said Joel Crane, a metals strategist at Deutsche Bank AG in New York. ``Cash is just more predictable than gold now,'' he said.

- Russia's ruble had its biggest monthly decline in 9 1/2 years against the dollar as the global credit crunch reduced demand for emerging-market assets. Investors took $72 billion out of Russia in October, according to BNP Paribas SA, sending the Micex Index 30 percent lower and pushing the yield on the 30-year government bond to a seven-year high. A decline in oil spurred banks such as Citigroup Inc. to predict the ruble will be devalued.

- The Federal Reserve Bank of New York said it's ``hopeful'' that one or more credit-default swap clearinghouses will begin guaranteeing trades in November or December as it pushes dealers to reduce market risks.

Wall Street Journal:

- The NYSE is easing its rules on specialists to allow them to place orders for 30 minutes after the closing bell in a bid to curb violent last-minute price swings, citing a regulatory filing.

- ECB, BoE Must Loosen Monetary Policy to Aid Recovery.

- Firms have been paring down a massive inventory of credit-default swap holdings as regulators continue a push for a central clearinghouse for the often-opaque market. Data released Friday by the International Swaps and Derivatives Association showed that credit default swap contracts tied to around $25 trillion in debt have been torn up in the year to date.

NY Times:
- Walt Disney(DIS) is focusing on its nascent Fairies business to drive growth.

- Google(GOOG) Ads Will Be More Prominent.

Dallas Morning News:

- Hedge fund operator and oil prognosticator T. Boone Pickens liquidated one of his hedge funds last month as the stock markets plunged. The Dallas billionaire converted his energy equity fund to cash and offered investors the opportunity to withdraw their money early. The fund started with $2 billion and could be down to around $400 million to $500 million after withdrawals, according to someone familiar with the fund. The fund was down 60 percent this year after heady gains in previous years. Mr. Pickens' commodity fund has lost 84 percent of its value this year.

AP:

- AP poll: 1 in 7 voters still persuadable.

International Herald Tribune:

- Dozens of hedge funds have told investors that they cannot get their money back right now as managers try to limit a wave of redemptions to safeguard all their clients' investments - as well as their own futures. Only a few months ago, hundreds of the world's estimated 9,000 hedge fund managers made it tough for wealthy investors to put money into their funds by requiring minimum investments of $1 million or more and charging heavy fees. Now managers are making it hard for investors to get out.

Globe and Mail:
- He’s the first call on The Street. He can raise $40 million in two minutes. And now hedge-fund superstar Rohit Sehgal is afraid to open his e-mail.