Wednesday Watch

Late-Night Headlines
Bloomberg:

- The U.S. Commerce Department imposed preliminary duties of as much as 12 percent on $269 million of imports of steel grating and wire strand from China. In two separate decisions announced today, the U.S. said the producers are receiving illegal subsidies from the Chinese government, backing petitions by companies including Insteel Industries Inc., American Spring Wire Corp. and Sumiden Wire Products Corp. Makers of steel grating will face tariffs of 7.4 percent, the Commerce Department said in an e-mailed statement today. Importers of concrete steel wire strand, which is used to reinforce concrete construction applications, will face anti- subsidy duties ranging from 7.5 percent to 12 percent.

- Apollo Group Inc.(APOL) plunged as much as 21 percent in extended trading after the company reported the Securities and Exchange Commission commenced an informal inquiry into the company’s revenue recognition practices. The probe was started by the SEC’s Enforcement Division, Phoenix-based Apollo Group said today in a statement. Shares of Apollo Group fell as much as $15.32 to $57.65 at 4:32 p.m. after U.S. markets closed today. Apollo Group, based in Phoenix, is the parent company of the University of Phoenix, the nation’s largest private university with 443,000 students, most of whom take classes via the Internet. Federal student aid accounted for about 86 percent of company revenue in fiscal 2009, Apollo said today in a filing.

- ‘Jobs Created or Saved’ Is White House Fantasy. “Most analysts predict that the fiscal stimulus will have its greatest impact on growth in the second and third quarters of 2009,” Romer said. “By mid-2010, fiscal stimulus will likely be contributing little to growth.” At first it was just fringe elements, such as conservative blogs and the not-really-a-news-organization Fox News, that pounced on Romer’s statement. Then other news outlets started to question her statement, which seemed to fly in the face of White House assertions that only a small portion of the stimulus -- $120 billion, or 15 percent -- has actually been spent. Most of the criticism of the stimulus coming from the president’s own party has been, “too little, too late,” and here’s Romer saying it’s kaput. No wonder capital spending plans were at an all-time low in the third quarter, according to the NFIB monthly survey. Only 30,383 jobs were created or saved by the American Recovery and Reinvestment Act, according to Recovery.gov, the government’s once-transparent Web site that has become a complex blur of numbers, graphs and pie charts. An extrapolation of what would have happened without the fiscal stimulus isn’t much consolation to the 9.8 percent of the workforce that is unemployed. Nor is Romer’s prescription for the economy and labor market very comforting in light of the trillions of future tax dollars that have been spent, lent or promised by the federal government.

- Visa Inc.(V), the world’s biggest payments network, climbed in extended New York trading after posting results that exceeded most analysts’ forecasts and saying a year-long skid in consumer spending has ended.

Wall Street Journal:

- In a stark reminder of how some battered financial firms remain dependent on government lifelines, GMAC Financial Services Inc. and the Treasury Department are in advanced talks to prop up the lender with its third helping of taxpayer money, people familiar with the matter said. The U.S. government is likely to inject $2.8 billion to $5.6 billion of capital into the Detroit company, on top of the $12.5 billion that GMAC has received since December 2008, these people said. The latest infusion would come in the form of preferred stock. The government's 35.4% stake in the company could increase if existing shares eventually are converted into common equity. The willingness by Treasury officials to deepen taxpayer exposure to GMAC reflects the troubled company's importance to the revival of the auto industry.

- Washington is captivated by the Senate melodrama over the so-called public option, salivating at the ring of Harry Reid's political bell (see below). But the most important health-care questions continue to be about the policy substance—particularly those that Democrats don't want asked. Foremost among them is: How will ObamaCare affect insurance premiums in the private health-care markets? Despite indignant Democratic denials, the near-certainty is that their plan will cause costs to rise across the board. The latest data on this score come from a series of state-level studies from the insurance company WellPoint Inc. At the request of Congressional delegations worried about their constituents—call it a public service—WellPoint mined its own actuarial data to model ObamaCare in the 14 states where it runs Blue Cross plans. The study therefore takes into account market and demographic differences that other industry studies have not, such as the one from the trade group America's Health Insurance Plans, which looked at aggregate national trends. In all of the 14 states WellPoint scrutinized, ObamaCare would drive up premiums for the small businesses and individuals who are most of WellPoint's customers. (Other big insurers, like Aetna, focus on the market among large businesses.) Young and healthy consumers will see the largest increases—their premiums would more than triple in some states—though average middle-class buyers will pay more too. Not even two hours after Wellpoint had presented its materials on the Hill, Democrats were already trashing it—which, considering that it runs to some 238 pages and took weeks to prepare, must have required remarkable powers of digestion and analysis.

- Treasury Department pay czar Kenneth Feinberg last week announced sharp cuts in total compensation at the finance and auto companies under his control. But while he cut total compensation by half, he substantially increased one important element—regular salaries, according to a Wall Street Journal analysis. The move reflects the complexity of regulating something that mixes politics and economics. When the banks complained, Mr. Feinberg listened. He adjusted base salaries for the bulk of those employees, in some cases boosting them by hundreds of thousands of dollars, according to an analysis of government data by the Journal. On average, base salaries climbed to $437,896 a year as a result of Mr. Feinberg's review, compared with $383,409 previously, a 14% increase, according to a Journal analysis of Treasury data. Of the 136 employees under Mr. Feinberg's review, 89 saw their base salaries increase. At Citigroup, which is 34%-owned by the U.S., government, Mr. Feinberg agreed to more than double salaries for 13 of the 21 employees, according to the Journal's analysis. Treasury Department officials confirmed the accuracy of the Journal's methodology for calculating the number of employees whose base salaries rose.

- More than three decades after Maynard H. Jackson Jr. became the first African-American mayor of a major Southern city here, the era of uncontested black leadership in the cradle of the civil-rights movement is facing its first true test: A white city councilwoman leads the mayoral race by a wide margin just days before the Nov. 3 election. Recent polls show Mary Norwood, a fiscal conservative who lives in a heavily white, wealthy section of Atlanta, with support ranging from 39% to 46% of likely voters. That puts her potentially within striking distance of winning outright next week or heading into a runoff with one of the two most prominent African-American candidates, City Council President Lisa Borders and former state Sen. Kasim Reed, both of whom have struggled to gather support from even 25% of voters. Most striking in Ms. Norwood's numbers is her level of support among widely fractured African-American voters. An InsiderAdvantage poll on Oct. 16 showed Ms. Norwood leading all candidates among black voters, with nearly a third of African-Americans supporting her. Ms. Norwood's position reflects demographic changes that are scrambling the established political order in parts of the South as well as moderating racial attitudes that increasingly have left African-Americans, whites and other ethnicities open to votes that defy conventional racial blocs.

- One of the technology industry's highest-profile executives has become ensnared in an alleged insider-trading case that is shaking the corporate and financial worlds. A criminal case filed by the Manhattan U.S. Attorney's office earlier this month alleged an unnamed Advanced Micro Devices Inc. executive shared confidential information about the chip maker with a defendant in the case. The AMD executive is Hector Ruiz, then AMD's chairman and previously the company's chief executive, according to a person familiar with the matter.

- Al Qaeda's umbrella group in Iraq claimed responsibility for the twin suicide bombings in the heart of Baghdad that killed at least 155 people, including 24 children trapped in a bus leaving a daycare center.

MarketWatch:

- As U.S. regulators consider reining in excessive energy speculation, the two major U.S. futures exchanges have squared off over whether authorities should impose a blanket cap on positions traders hold on one exchange. The smaller but faster-growing IntercontinentalExchange(ICE) wants the regulator to set a market-wide cap. The older and bigger CME Group Inc.(CME) , which owns the New York Mercantile Exchange, wants individual exchanges to set caps based on the size of the exchange. The outcome of the regulatory decision, expected by year-end, could tilt the intensely competitive playing field for energy futures trading, extending a long-running rivalry between CME's Nymex and ICE.

CNBC.com:

- U.S. Treasury Secretary Timothy Geithner on Tuesday said there were strong arguments for extending many government programs geared at lifting the U.S. economy out of recession.

NY Times:

- Many workers at the Ford Motor Company(F) are signaling that they are unwilling to help the automaker cut its labor costs further, by voting against what would be the third round of concessions in the last two years.

IBD:

- Keeping that high-value, must-have-now data on expensive high-speed memory drives is an easy call. Getting that might-need-someday out to a cheaper, slower drive somewhere else has always been the challenge. That's what Compellent Technologies (CML) does.

CNNMoney.com:

- Research in Motion's (RIMM) BlackBerry, with a 40% share, is still the most popular smartphone among the 4,255 owners who responded to a ChangeWave survey in September. But Apple's (AAPL) iPhone is gaining fast, according to research director Paul Carton.

- Roughly $211 billion separates what the country owes and its self-imposed credit limit. And by Friday, after another week of massive debt sales by the Treasury Department, that gap will likely have narrowed considerably. It is now expected that the $12.104 trillion debt ceiling could be breached by the end of November.

- JPMorgan Chase(JPM) chief executive officer defended the dollar -- and the size of his company -- at a securities industry conference Tuesday. "The ultimate strength of the dollar will depend on the strength of the United States," Dimon said.

Forbes:

- Federal officials plan to ban sales of raw oysters harvested from the Gulf of Mexico unless the shellfish are treated to destroy potentially deadly bacteria - a requirement that opponents say could deprive diners of a delicacy cherished for generations. The plan has also raised concern among oystermen that they could be pushed out of business. The Gulf region supplies about two-thirds of U.S. oysters, and some people in the $500 million industry argue that the anti-bacterial procedures are too costly. They insist adequate measures are already being taken to battle germs, including increased refrigeration on oyster boats and warnings posted in restaurants. Some oyster sellers say the FDA rule smacks of government meddling. The sales ban would take effect in 2011 for oysters harvested in the Gulf during warm months. "We have one man who's 97 years old, and he comes in here every week and gets his oyster fix, no matter what month it is," said Mark DeFelice, head chef at Pascal's Manale Restaurant in New Orleans. "There comes a time when we need to be responsible. Government doesn't need to be involved in this." The anti-bacterial process treats oysters with a method similar to pasteurization, using mild heat, freezing temperatures, high pressure and low-dose gamma radiation. But doing so "kills the taste, the texture," DeFelice said. "For our local connoisseurs, people who've grown up eating oysters all their lives, there's no comparison" between salty raw oysters and the treated kind.

Dow Jones:

- A U.S. House panel voted Tuesday to periodically adjust the thresholds investors must meet in order to qualify for hedge funds and other sophisticated investments. The House Financial Services Committee agreed to an amendment that would direct the Securities and Exchange Commission to adjust for inflation the standards for whether an investor can partake in some funds. Current rules dictate that individuals can invest in more sophisticated funds only if they have a net worth of at least $1 million or an annual income of at least $200,000 over the previous two years. The amendment was included as part of a broader measure aimed at increasing oversight of hedge funds and other private pools of capital. The committee, chaired by Rep. Barney Frank, D-Mass., is scheduled to vote on the broader bill either Tuesday afternoon or Wednesday.

CBS:

- A former cashier for The Home Depot(HD) who has been wearing a "One nation under God" button on his work apron for more than a year has been fired, he says because of the religious reference. The company claims that expressing such personal beliefs is simply not allowed. "I've worn it for well over a year and I support my country and God," Trevor Keezor said Tuesday. "I was just doing what I think every American should do, just love my country." The American flag button Keezer wore in the Florida store since March 2008 says "One nation under God, indivisible."

Rasmussen:

- Most voters trust themselves more than either Congress or President Obama when it comes to the economy, but they have way more confidence in themselves when it comes to the news media. A new Rasmussen Reports national telephone survey shows that 85% of U.S. voters trust their own judgment more than the average reporter when it comes to the important issues affecting the nation. Only four percent (4%) trust the average reporter more.

Miami Herald:

- President Hugo Chavez's popularity has slipped and a majority of Venezuelans view the situation in their country negatively, according to a poll published Tuesday. The survey by the Caracas-based polling firm Datanalisis found that 46 percent responded positively when asked how they view Chavez's presidency, down from 53 percent a month earlier. The survey, published by the Venezuelan newspaper El Universal, also found that 59 percent said they saw the situation in the country as negative.

The Business Insider:

- Nielsen reported a 50% plunge in CNBC vierwership in October year over year. Specially, CNBC has experienced a massive 52% decline in overall viewers during business day hours (5 am - 7 pm), and a not much better 49% drop in its demo (25-54) in the month of October as compared to last year.

- You thought today's consumer news was bad? Just wait. Senator Chris Dodd, who has suffered from the impression that he is too close to the banking industry, has proposed an incredibly stupid immediate rate freeze on credit cards. Tom Brown at Bankingstocks.com explains why this is so stupid.

USA Today.com:

- When it comes to predicted reliability -- coming after years of gab from Detroit about how its cars don't break down anymore -- six American brands rank dead last in Consumer Reports' latest predictions on automotive reliability being released right now. At the other extreme, the best brand is Toyota's Scion.

Reuters:

- Wolfgang Leese, chief executive officer of Salzgitter AG, warned against overoptimism, noting that a recovery in steel-sector demand in recent weeks is not likely to be sustained. The market remains unstable and at best will be flat, he said. The company, Germany’s second-largest steelmaker, will post a loss for 2009.

- Package delivery rivals FedEx Corp (FDX) and United Parcel Service (UPS) faced off for the first time over a bill pending in Congress that would change FedEx workers' labor laws, setting out their positions in a debate on Tuesday in Albuquerque, New Mexico. In question is a reauthorization bill for the Federal Aviation Administration passed in May by the U.S. House of Representatives, under which FedEx employees would be covered by the National Labor Relations Act instead of the Railway Labor Act. The bill is awaiting Senate approval. "It is legislation written by UPS, for UPS and only benefits UPS," said FedEx spokesman Maury Lane. "Everyone else suffers."

- National Australia Bank Ltd, the country's largest lender, expects business lending growth to contract in 2010, Chief Executive Officer Cameron Clyne told a media briefing on Wednesday.

- ABC News said on Tuesday that its weekly measure of U.S. consumer confidence fell to a three-month low, as Americans' views on the buying climate hit their lowest levels this year. The Consumer Comfort Index edged lower to -51 in the week ended Oct. 25 from a -50 the prior week. It was the index's lowest reading since mid-July, and puts the level in close proximity to its record low.

- Illumina Inc (ILMN) posted a lower-than-expected third-quarter profit as expenses rose, and the company cut its 2009 revenue forecast, sending its shares tumbling 21 percent in post-market trading.

Financial Times:

- The Federal Reserve could order a financial institution to sell a risky division or stop dangerous trading activity if the central bank determined there was a threat to the US financial system, under a draft law released on Tuesday. The landmark bill drawn up by the Treasury and the House financial services committee sets up a council of regulators charged with snuffing out systemic risks and gives the government and the Fed sweeping powers over financial companies at home and overseas. The Fed would require systemically significant companies – including foreign groups that own a large or risky US subsidiary – to abide by “heightened prudential standards”. These include leverage limits, liquidity rules and the drafting of a resolution plan, or “living will”. Companies would be placed in the new category if the council deemed that “material financial distress at the company could pose a threat to financial stability or the economy”. But the draft law goes further than expected – allowing the Fed to require any systemically significant company to “sell or otherwise transfer assets or off-balance sheet items to unaffiliated firms, to terminate one or more activities, or to impose conditions on the manner in which the identified financial holding company conducts one or more activities”. If that does not save a company, the government could seize it and force rival banks that have more than $10bn in assets to repay any taxpayer money used to seize or wind up their competitor.

TimesOnline:

- Loans to eurozone households and businesses fell for the first time ever last month in the latest sign of the continued fragility of the economy and the uncertainity of a recovery. Lending dropped 0.3 per cent in September from a year earlier, according to the European Central Bank (ECB). It was the first year-on-year drop since data was first collected in 1991, the ECB said. The situation mirrors the UK, where a lack of available credit from banks desperate to hoard cash has been seen as a major obstacle to the nation's emergence from recession. Earlier this week, David Cameron, the Conservative leader, said it was "astonishing" that 12 months after the bank rescue lending to businesses was still falling.

Late Buy/Sell Recommendations
Citigroup:

- Upgraded (AKS) to Buy, raised target to $21.

- Reiterated Buy on (X), target $49.

- Reiterated Buy on (NLC), target $24.

- Reiterated Sell on (UA), target $24.

Night Trading
Asian Indices are -1.25% to -.25% on average.

Asia Ex-Japan Inv Grade CDS Index 112.50 +13.50 basis points.
S&P 500 futures -.01%.
NASDAQ 100 futures -.04%.

Morning Preview

BNO Breaking Global News of Note

Google Top Stories

Bloomberg Breaking News

Yahoo Most Popular Biz Stories

MarketWatch News Viewer

Asian Financial News

European Financial News

Latin American Financial News

MarketWatch Pre-market Commentary

U.S. Equity Preview

TradeTheNews Morning Report

Briefing.com In Play

SeekingAlpha Market Currents

Briefing.com Bond Ticker

US AM Market Call
NASDAQ 100 Pre-Market Indicator/Heat Map
Pre-market Stock Quote/Chart
WSJ Intl Markets Performance
Commodity Futures
IBD New America
Economic Preview/Calendar
Earnings Calendar

Conference Calendar

Who’s Speaking?
Upgrades/Downgrades

Politico Headlines
Rasmussen Reports Polling

Earnings of Note
Company/EPS Estimate
- (GT)/.40

- (CCE)/.46

- (OC)/.37

- (IP)/.24

- (WLP)/1.39

- (HES)/.54

- (COP)/.94

- (ITRI)/.50

- (AVB)/1.08

- (CBG)/.10

- (FSLR)/1.75

- (AFL)/1.20

- (CERN)/.61

- (ESRX)/.82

- (OI)/.93

- (LSI)/.03

- (FLS)/2.04

- (RYL)/-1.06

- (SYMC)/.33

- (SPW)/.86

- (GD)/1.40

- (JNY)/.27

Economic Releases

8:30 am EST

- Durable Goods Orders for September are estimated to rise +1.0% versus a -2.6% decline in August.

- Durables Ex Transportation for September are estimated to rise +.7% versus a -.3% decline in August.

10:00 am EST

- New Home Sales for September are estimated to rise to 440K versus 429K in August.

10:30 am EST

- Bloomberg consensus estimates call for a weekly crude oil inventory build of +1,910,000 barrels versus a +1,312,000 barrel gain the prior week. Gasoline supplies are estimated to fall by -1,000,000 barrels versus a -2,214,000 barrel decline the prior week. Distillate supplies are expected to fall by -1,000,000 barrels versus a -784,000 barrel decline the prior week. Finally, Refinery Utilization is estimated to rise by +.28% versus a +.19% gain the prior week.

Upcoming Splits
- None of Note

Other Potential Market Movers
- The Treasury’s 5-Year Note Auction, weekly MBA mortgage applications report, (YHOO) analyst meeting and the Wells Fargo Consumer Conference could also impact trading today.

BOTTOM LINE: Asian indices are lower, weighed down by technology and commodity shares in the region. I expect US equities to open mixed and to weaken into the afternoon, finishing modestly lower. The Portfolio is 75% net long heading into the day.

Stocks Finish Mostly Lower, Weighed Down by Gaming, Road & Rail, Steel and Homebuilding Shares

Evening Review
BNO Breaking Global News of Note

Google Top Stories

Bloomberg Breaking News

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MarketWatch News Viewer

Briefing.com In Play

SeekingAlpha Market Currents

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Stocks Mostly Lower into Final Hour on Economic Worries, More Shorting, Higher Energy Prices

BOTTOM LINE: The Portfolio is slightly lower into the final hour on losses in my Technology longs and Financial longs. I have not traded today, thus leaving the Portfolio 75% net long. The tone of the market is negative as the advance/decline line is lower, most sectors are declining and volume is slightly above average. Investor anxiety is high. Today’s overall market action is mildly bearish. The VIX is rising +1.32% and is high at 24.72. The ISE Sentiment Index is around average at 142.0 and the total put/call is above average at 1.0. Finally, the NYSE Arms has been running above average most of the day, hitting 2.12 at its intraday peak, and is currently 1.06. The Euro Financial Sector Credit Default Swap Index is rising +3.56% today to 63.67 basis points. This index is down from its record March 10th high of 208.75. The North American Investment Grade Credit Default Swap Index is rising +2.33% to 102.03 basis points. This index is also well below its Dec. 5^th record high of 285.99. The TED spread is down -1 basis point to 22 basis points. The TED spread is now down 442 basis points since its all-time high of 463 basis points on October 10th. The 2-year swap spread is rising +1.16% to 38.13 basis points. The Libor-OIS spread is unch. at 12 basis points. The 10-year TIPS spread, a good gauge of inflation expectations, is unch. at 2.0%, which is down 65 basis points since July 7th. The 3-month T-Bill is yielding .06%, which is up +1 basis point today. Cyclicals are weak again today, falling another -2.1%. As well, many tech stock leaders are substantially underperforming today and the Transports remain under pressure. The US dollar continues to trade well and bonds look higher near-term. On the positive side, Energy, Education, HMO, Drug, Biotech, Medical, Telecom and Computer Service shares are all higher on the day. Given today’s news, the bears had another chance to gain meaningful traction, but have failed thus far. I want to see the market’s reaction to tomorrow’s economic data before further shifting market exposure. Nikkei futures indicate a -22 open in Japan and DAX futures indicate an +1 open in Germany tomorrow. I expect US stocks to trade mixed-to-lower into the close from current levels on economic worries, more shorting, higher energy prices and profit-taking.

Today's Headlines

Bloomberg:

- Confidence among U.S. consumers unexpectedly fell for a second month in October, reinforcing the views of Federal Reserve policy makers who say household spending will be restrained by rising unemployment. The Conference Board’s confidence index dropped to 47.7, trailing the lowest economist forecast, from a revised 53.4 in September, a report from the New York-based private research group showed today. A measure of employment availability slid to a 26-year low. The share of consumers who said jobs are plentiful dropped to 3.4 percent from 3.6 percent, according to today’s report from the Conference Board. The proportion of people who said jobs are hard to get increased to 49.6 percent, the highest level since May 1983, from 47 percent. Buying plans for automobiles, homes and major appliances within the next six months all decreased this month, today’s report showed. Consumers “remain quite pessimistic about their future earnings, a sentiment that will likely constrain spending during the holidays,” Lynn Franco, director of the Conference Board Consumer Research Center, said in a statement.

- American International Group Inc.(AIG), the insurer bailed out by the US, is among companies that may have the ratings of mortgage-guaranty units cut by Standard & Poor’s on the prospect of further losses. “Conditions may have become more difficult for the mortgage insurers since we last conducted an extensive review of the sector in April,” analysts led by Ron Joas said today in a statement. “Mortgage insurers are experiencing a sharper and more rapid transition of delinquencies into prime books of business than we expected.” Old Republic International Corp., PMI Group Inc., Radian Group, Genworth Financial Inc. have units facing downgrades as does NY-based AIG’s United Guaranty, Joas said.

- New York Fed’s Secret Choice to Pay for Swaps Hits Taxpayers. Among AIG’s bank counterparties were New York-based Goldman Sachs Group Inc.(GS) and Merrill Lynch & Co., Paris-based Societe Generale SA and Frankfurt-based Deutsche Bank AG. The deal contributed to the more than $14 billion that over 18 months was handed to Goldman Sachs, whose former chairman, Stephen Friedman, was chairman of the board of directors of the New York Fed when the decision was made. Friedman, 71, resigned in May, days after it was disclosed by the Wall Street Journal that he had bought more than 50,000 shares of Goldman Sachs stock following the takeover of AIG. He declined to comment for this article.

- Steel inventories held by large Chinese companies jumped 10 percent in the first nine months of the year, adding to evidence of rising oversupply in the world’s largest producer of the metal. Inventories held by the companies rose 660,000 metric tons to 7.2 million tons as of the end of September, the Ministry of Industry and Information Technology said today on its Web site, without identifying the companies. Traders at 24 major cities held 11.2 million tons of steel at the end of last month, up 290,000 tons from a month earlier, it said.

- U.S. Steel Corp.(X) and AK Steel Holding Corp.(AKS) fell in New York trading after reporting lower third-quarter results and offering fourth-quarter outlooks that disappointed investors.

- The dollar and yen rose against most of their major counterparts after a report showed consumer confidence fell this month in the U.S., reducing demand for higher yields in other countries. The greenback advanced versus the euro for a third day in the longest stretch of gains since August on concern global growth will fail to justify the valuations assigned to stocks and commodities.

- Climate change legislation proposed in the U.S. Senate has revived a fight over the cost of combating global warming between coal-dependent states and those that get energy from cleaner sources. In a draft of a letter to the climate legislation’s sponsors, Senator Tom Harkin, an Iowa Democrat, said the House and Senate bills put coal at a disadvantage and that he wants to revise how free pollution permits would be distributed.

- Eight U.S. service members were killed today in several bombings in southern Afghanistan, the NATO-led force in the country said in an e-mailed statement.

- The euro will decline to the lowest level in three weeks versus the dollar after breaching a support level at $1.4845, according to Citigroup Inc. “A firm breach” of the level, where buy orders are clustered, would “open the way for a move down” to the 55-day moving average at $1.4578, technical analysts Tom Fitzpatrick and Shyam Devani wrote today.

- The stabilization in U.S. home prices won’t last, according to economists at Goldman Sachs Group Inc. in New York. Their counterparts at BofA Merrill Lynch Global Research see a “treat” rather than a retreat. “The risk of renewed home price declines remains significant,” Alec Phillips, an economist based in Goldman’s Washington office, said in an Oct. 23 note to clients. “Our working assumption is a further 5 percent to 10 percent decline by mid-2010.” “We should expect subdued home price appreciation over the next few years,” wrote Merrill Lynch’s Ethan Harris and Drew Matus on the same day.

Wall Street Journal:

- House lawmakers will propose a $20 billion fee on medical device makers, while Senate leaders have whittled down their plans to tax the industry to pay for the health overhaul. The Senate bill assembled by Senate Majority Leader Harry Reid (D., Nev.) is expected to levy a fee of between $15 billion and $20 billion over a decade on device makers, according to an individual familiar with the plan. The plan passed by the Senate Finance Committee earlier this month called for a $40 billion tax over that time, based on the companies' market share. Details were still being worked out Monday. "They're in a complete panic," said one House aide. The House version of the fee doesn't remove the sting entirely, but it would whittle down and delay a financial hit the industry says will hurt product innovation.

- Technology companies are launching big advertising campaigns as they wager on a pickup in business spending and jockey to have their products stand apart in an environment where new customers are hard to find and competition is intensifying. Companies such as Google(GOOG) Inc. have recently embarked on major ad pushes. This month, Google rolled out globally an ad campaign to flag its Gmail service and Google Docs word processing and spreadsheets. It's an unusual move for the Internet giant, which has done little traditional advertising. On Thursday, Juniper Networks Inc., a maker of networking gear, is starting its first-ever global campaign to raise awareness of its brand. Its bigger rival Cisco Systems Inc. last week launched new radio, print and online campaigns promoting a line of products for small businesses and a new system for corporate computer rooms. The moves come as businesses and consumers start buying technology again, after cutting back on such purchases for most of the year.

- With critical-care specialists in short supply, remote monitoring offers a high-tech solution. Bleeding heavily after an emergency C-section last year, Jennifer Gale ended up in the intensive-care unit at Holmes Hospital in Melbourne, Fla. Throughout the night, the critical-care specialist on duty closely watched her vital signs, ordering additional units of blood until her condition stabilized. But the doctor wasn't at her bedside—or even in the hospital. Working from a command center in a nearby office building, he was remotely monitoring her and other patients in six intensive-care units in three different hospitals operated by Rockledge, Fla.-based health system Health First. The monitoring system, known as an eICU, uses two-way video cameras and software that tracks patients' vital signs and instantly registers any changes in lab test results or physical condition. That enables doctors in the command center to spot early warning signs that a patient is taking a turn for the worse, advise bedside staff on giving medications and treatments, and point out potential errors or oversights.

- Hedgies and other large speculators covered their short positions in copper last week. A good sign for the economy? Writing in BofA Merrill’s “Hedge Fund Monitor” research note, Mary Ann Bartels notes that “large speculators covered copper last week to a net long [positions of about $200 million in notional value] from a net short [position of about $100 million in notional value] previously.

MarketWatch.com:
- 7 hidden economic indicators to watch.

- Goldman Sachs Group Inc.(GS) defended a range of trading practices currently under regulatory scrutiny, including dark pools and short selling, in a report to the Securities and Exchange Commission and a series of posting on its Web site.

CNBC:

- The latest Consumer Reports survey of people who have bought more than 1.4 million vehicles, is further proof of the gulf between Ford(F) and its fellow Big 3 auto makers, GM and Chrysler. While Consumer Reports now lists Ford as being on par with Asian automakers, GM and Chrysler continue to struggle. Just compare the Consumer Reports numbers:

- Five Reasons US Retailers May Have Jollier Holiday This Year.

NY Times:

- Maurice R. Greenberg, who built the American International Group into an insurance behemoth with an impenetrable maze of on- and offshore companies, is at it again. Even as he has been lambasting the government for its handling of A.I.G. after its near collapse, Mr. Greenberg has been quietly building up a family of insurance companies that could compete with A.I.G. To fill the ranks of his venture, C.V. Starr & Company, he has been hiring some people he once employed.

zerohedge:

- Did Goldman’s(GS) CFO Lie To The Investing Public on September 16, 2008? Following on the earlier article posted on Bloomberg discussing how the NY Fed singlehandedly (and secretly) made the decision to defraud taxpayers out of tens of billions when deciding that AIG counterparties would be made whole with no incipient haircuts, Janet Tavakoli submits the following:

Washington Post:

- The nation's preeminent seniors group, AARP, has put the weight of its 40 million members behind health-care reform, saying many of the proposals will lower costs and increase the quality of care for older Americans. But not advertised in this lobbying campaign have been the group's substantial earnings from insurance royalties and the potential benefits that could come its way from many of the reform proposals. The group and its subsidiaries collected more than $650 million in royalties and other fees last year from the sale of insurance policies, credit cards and other products that carry the AARP name, accounting for the majority of its $1.14 billion in revenue, according to federal tax records. It does not directly sell insurance policies but lends its name to plans in exchange for a tax-exempt cut of the premiums. The organization, formerly known as the American Association of Retired Persons, also heavily markets the policies on its Web site, in mailings to its members and through ubiquitous advertising targeted at seniors. The group's dual role as an insurance reformer and a broker has come under increasing scrutiny in recent weeks from congressional Republicans, who accuse it of having a conflict of interest in taking sides in the fierce debate over health insurance. Three House Republicans sent a letter to AARP on Monday complaining that the group was putting its "political self-interests" ahead of seniors.

- Republican Robert F. McDonnell carries a double-digit lead over Democrat R. Creigh Deeds in the final week of the campaign for Virginia governor, according to a new Washington Post poll. The Republican, briefly buffeted in the polls by voters' initial reaction to the publication of his 1989 graduate school thesis, has rebounded to big advantages on the top issues, particularly taxes, and is now seen as the more effective leader, more honest and more empathetic. McDonnell is also buoyed by support outside Northern Virginia, where he is outperforming all other top-of-the-ticket Republican candidates this decade. Statewide, McDonnell leads Deeds among likely voters by 55 to 44 percent.

LA Times:

- Reporting from Washington - President Obama and administration officials today will announce $3.4 billion in spending projects to modernize the nation's electric power system. The president will offer details on funding for the "smart grid" during an appearance at a solar plant in Arcadia, Fla.

Rassmussen:

- The Rasmussen Reports daily Presidential Tracking Poll for Tuesday shows that 29% of the nation's voters Strongly Approve of the way that Barack Obama is performing his role as President. Forty percent (40%) Strongly Disapprove giving Obama a Presidential Approval Index rating of -11 (see trends).

Politico:

- It’s time for your close-up, Mr. President. Now that Senate Majority Leader Harry Reid (D-Nev.) has announced he’ll try to push through a health care reform bill with a public option, liberals are turning their focus — and their frustrations — on Barack Obama, the man who brought them to the outskirts of the progressive promise land. Even before Reid announced Monday that he would back a public option plan that would allow individual states to opt out of the controversial plan, progressives had begun to shift from pressuring legislative leaders to stiffening Obama’s spine on the issue. Democratic senators and House members didn’t need to shift their attention to 1600 Pennsylvania Ave.: They have been grumbling for weeks that Obama needs to step up. “I hope the president speaks out strongly for the public option — this health care bill really becomes his at this point,” said Sen. Sherrod Brown (D-Ohio), one of about 30 Democrats who have pressured Reid to back the controversial option.

- Sen. Joe Lieberman (I-Conn.) said Tuesday that he’d back a GOP filibuster of Senate Majority Leader Harry Reid’s health care reform bill. Lieberman, who caucuses with Democrats and is positioning himself as a fiscal hawk on the issue, said he opposes any health care bill that includes a government-run insurance program — even if it includes a provision allowing states to opt out of the program, as Reid’s has said the Senate bill will. "We're trying to do too much at once," Lieberman said. “To put this government-created insurance company on top of everything else is just asking for trouble for the taxpayers, for the premium payers and for the national debt. I don’t think we need it now." Lieberman added that he’d vote against a public option plan “even with an opt-out because it still creates a whole new government entitlement program for which taxpayers will be on the line."

Reuters:

- Intel Corp (INTC), the world's largest chipmaker, expects a rise in corporate spending on personal computers in 2010, Chief Executive Paul Otellini said on Tuesday.

- U.S. regulators looking into high-frequency trading have asked the industry if

institutions are flocking to so-called dark pools and increasing market volatility, sources familiar with the SEC's line of questioning said on Monday. The Securities and Exchange Commission is not expected to release a discussion paper on high-frequency trading and other market developments being scrutinized by some lawmakers at least until December, the sources said. High-frequency trading now accounts for an estimated 50 percent to 70 percent of all U.S. equity trading and is growing fast in other regions and asset classes. In it, banks, hedge funds, and independent shops use ultra-quick algorithms to make markets and capitalize on tiny spreads and market imbalances. Some politicians and investors have raised concerns the practice, which effectively replaced traditional market-makers

over the last decade, creates a two-tiered market favoring the most sophisticated players.

- Chevron's(CVX) crude oil production in Angola will rise by a quarter in the next two years and it expects new discoveries to boost the country's oil production further, Ali Moshiri, Chevron's president for Africa and Latin America said. Chevron is one of Angola's largest oil producers, responsible for operating oilfields with an output of over 500,000 barrels per day (bpd) of oil in 2008, of which 145,000 bpd was its own equity oil. Two new oilfields, Mafumeira Norte and Tombua-Landana, came onstream in 2009 with peak production for both fields expected to be reached in 2011, totalling an extra 130,000 bpd. "We see great potential in Angola and our investment is sustainable. It is one of the most active areas in Africa for us at the moment," Moshiri told Reuters.

- IBM (IBM) said its board approved an additional $5.0 billion in share repurchases, bringing the company's total stock buyback program to $9.2 billion in a reflection of its strong cash flow. The buyback would add to around $4.2 billion remaining at the end of September from a previously approved plan, with the total amount representing around 5.9 percent of IBM's $157 billion market capitalization.

- As of Oct. 15, short interest on the NYSE rose 2.9 percent to about 13.4 billion from 13.1 billion shares held short at the end of September, and amounted to 3.5 percent of total shares outstanding, the NYSE said. Nasdaq said on Monday short interest in that exchange edged up 0.5 percent to 6.37 billion shares.

Financial Times:

- We must overturn the status quo in derivatives by Ken Griffin.

- George Soros, the fund manager, has pledged $50m to back a new think-tank with the mission of reconceiving the field of economics, which he describes as “a dogma whose time has passed”. The group, to be called the Institute of New Economic Thinking, will gather luminaries in the field of economics to reflect on the ideas that allowed the latest economic crisis to transpire and to bring new ideas to a profession that some argue has become too deeply entrenched in free-market ideology. The group’s advisory board will be studded with economists such as Jeffrey Sachs, George Akerlof, Kenneth Rogoff and Joseph Stiglitz as well as public commentators such as Anatole Kaletsky and John Kay, a Financial Times columnist. Mr Soros is pledging $5m a year for 10 years. Through INET, he will be indirectly funding his philosophy of “reflexivity” – that markets tend to influence perceptions of reality, which in turn feed back into markets.“The ideologists in the free markets are still in command and I think they’ll be very difficult to remove because they have tenure,” Mr Soros said in an interview with the Financial Times. INET will fund research, fellowships and workshops aimed at explaining the flaws in the current financial system.

TimesOnline:

- People will need to turn vegetarian if the world is to conquer climate change, according to a leading authority on global warming. In an interview with The Times, Lord Stern of Brentford said: “Meat is a wasteful use of water and creates a lot of greenhouse gases. It puts enormous pressure on the world’s resources. A vegetarian diet is better.”

Sydney Morning Herald:

- Apple(AAPL) is preparing to release a groundbreaking tablet computer in Australia and around the world early next year and has been in discussions with media companies about including their content on the device. The tablet is tipped to be a larger version of the iPhone. It is small enough to carry in a handbag but too big to fit in a pocket. It will have a touch screen and be targeted at users who mainly want to surf the web, read books and newspapers or watch movies.

Digitimes:

- OmniVision Technologies(OVTI) has notified clients to expect upcoming limited supply of CMOS image sensors (CIS) due to strong iPhone 3GS demand for the end-year holiday season, according to market sources. Tight supply is not expected to ease until late November 2009, the sources pointed out. Apple has increased fourth-quarter orders for the iPhone 3GS to its Taiwan-based manufacturing partners Foxconn Electronics (Hon Hai Precision Industry) and Primax Electronics by 17-20%, noted the sources. Notebook vendors are gearing up to introduce new models following the launch of Windows 7 which will also tighten the supply of CIS, the sources added.

- September 2009 shipments of large-area TFT-LCD panels reached 52 million units, up 2% sequentially and 25% on year, setting a new record for monthly large-area TFT-LCD shipments, according to DisplaySearch. Large-size TFT-LCD revenues reached US$6.8 billion, up 6% sequentially and 15% on year.

Xinhua:
- China will likely reduce its energy intensity by 5% this year, citing Xie Zhenhua, vice chairman of the National Development and Reform Commission. The government’s goal of paring by one-fifth the amount of energy consumed for each unit of GDP in the five years ending 2010 is “within reach,” Xie said.

Indiatimes:
- Mobile chip maker Qualcomm Inc(QCOM) said it hopes to launch its Rs 10,000 (around $210) personal computer alternative 'Kayak' in India in the second half of next year. The San-Diego-based wireless technology provider is in talks with major Indian telecom service providers like Bharti Airtel and Reliance Communications to bring the product in India.