Friday, April 21, 2006
Thursday, April 20, 2006
Friday Watch
Late-Night Headlines
Bloomberg:
- Hong Kong’s stock market has replaced Canada’s as the world’s sixth biggest, as more Chinese companies such as China Construction Bank carried out initial public offerings in the city.
- General Motors Corp.(GM) said its China affiliate more than doubled its profit in the period, helping the world’s largest carmaker improve its performance.
Business Week:
- The shares of Sprint Nextel Corp.(S) are cheap and may produce an annual return of 27% for the next three years, citing Ivan Krsticevic, senior portfolio manager at Elliott Management.
Late Buy/Sell Recommendations
Goldman Sachs:
- Raised AUO to Neutral from Underperform.
Night Trading
Asian Indices are -.50% to +.50% on average.
S&P 500 indicated +.08%.
NASDAQ 100 indicated +.24%.
Morning Preview
US AM Market Call
NASDAQ 100 Pre-Market Indicator/Heat Map
Pre-market Commentary
Before the Bell CNBC Video(bottom right)
Global Commentary
Asian Indices
European Indices
Top 20 Business Stories
In Play
Bond Ticker
Daily Stock Events
Macro Calls
Rasmussen Consumer/Investor Daily Indices
CNBC Guest Schedule
Earnings of Note
Company/EPS Estimate
- (MMM)/1.14
- (ACI)/.58
- (BSG)/.17
- (F)/.25
- (FO)/1.02
- (GDT)/.33
- (IR)/.72
- (MYG)/-.02
- (MCD)/.49
- (RSH)/.17
- (RCL)/.48
- (SLB)/.54
- (PCU)/3.07
- (WYE)/.73
Upcoming Splits
- (CW) 2-for-1
Economic Releases
- None of note.
Bloomberg:
- Hong Kong’s stock market has replaced Canada’s as the world’s sixth biggest, as more Chinese companies such as China Construction Bank carried out initial public offerings in the city.
- General Motors Corp.(GM) said its China affiliate more than doubled its profit in the period, helping the world’s largest carmaker improve its performance.
Business Week:
- The shares of Sprint Nextel Corp.(S) are cheap and may produce an annual return of 27% for the next three years, citing Ivan Krsticevic, senior portfolio manager at Elliott Management.
Late Buy/Sell Recommendations
Goldman Sachs:
- Raised AUO to Neutral from Underperform.
Night Trading
Asian Indices are -.50% to +.50% on average.
S&P 500 indicated +.08%.
NASDAQ 100 indicated +.24%.
Morning Preview
US AM Market Call
NASDAQ 100 Pre-Market Indicator/Heat Map
Pre-market Commentary
Before the Bell CNBC Video(bottom right)
Global Commentary
Asian Indices
European Indices
Top 20 Business Stories
In Play
Bond Ticker
Daily Stock Events
Macro Calls
Rasmussen Consumer/Investor Daily Indices
CNBC Guest Schedule
Earnings of Note
Company/EPS Estimate
- (MMM)/1.14
- (ACI)/.58
- (BSG)/.17
- (F)/.25
- (FO)/1.02
- (GDT)/.33
- (IR)/.72
- (MYG)/-.02
- (MCD)/.49
- (RSH)/.17
- (RCL)/.48
- (SLB)/.54
- (PCU)/3.07
- (WYE)/.73
Upcoming Splits
- (CW) 2-for-1
Economic Releases
- None of note.
BOTTOM LINE: Asian indices are mostly higher, boosted by technology stocks in the region. I expect US equities to open mixed and to rally modestly into the afternoon. The Portfolio is 75% net long heading into the day.
***Alert***
I will be unable to post the Thursday Close due to a scheduling conflict. I will post the Friday Watch later this evening.
Stocks Mixed into Final Hour as Commodity Decline is Offset by Healthcare Rise
BOTTOM LINE: The Portfolio is about even into the final hour as gains in my Computer longs and Energy-related shorts are offsetting losses in my Networking longs. I added back IWM and QQQQ shorts today, thus leaving the Portfolio 75% net long. The tone of the market is negative as the advance/decline line is lower, sector performance is mixed and volume is heavy. The AAII percentage of Bulls fell to 33.73% this week from 45.36% the prior week. This reading is now at below average levels. The AAII percentage of Bears jumped to 40.83% this week from 27.84% the prior week. This reading is now at above average levels. Considering the major averages are approaching six-year highs, these numbers are somewhat stunning and bode well for further gains. I expect bullish sentiment to rise next week. I expect US stocks to trade mixed into the close from current levels as short-covering offsets profit-taking.
Today's Headlines
Bloomberg:
- Russia today rejected a call from the US to halt construction of a nuclear plant in Iran.
- Hedge funds around the world pulled in a net $24 billion during the first quarter as investors flocked to companies such as Convexity Capital Management LP, owned by former Harvard Univ. endowment manager Jack Meyer.
- The US will crack down on companies that hire undocumented immigrants, Homeland Security Secretary Chertoff pledged today, telling businesses to expect stepped-up raids and criminal sanctions against executives.
- Manufacturing in the Philadelphia area strengthened this month as companies geared up in response to rising domestic and overseas demand, a Fed survey showed.
Wall Street Journal:
- A Goldman Sachs Group(GS) hedge fund led by ex-academics using techniques developed at the Univ. of Chicago was a big contributor in a group of alternative investments increasing profit at the NYC-based brokerage.
- Scott McNealy, Sun Microsystems’(SUNW) chairman and CEO, hasn’t hitherto enjoyed the best of relationships with Wall Street, but that may be changing.
- Weyerhaeuser(WY), the world’s biggest lumber company, said it will realign its wood, paper and pulp units as part of a broader reorganization the company expects will allow the businesses to respond more quickly to market demand.
- The US Office of the Director of National Intelligence will make safeguarding individual privacy rights a top priority.
NY Times:
- Strong demand for super-sized tires used by earthmover machines has caused a shortage, and spurred companies such as France’s Michelin & Cie. to build new plants to keep up with up with customers’ orders.
USA Today:
- Construction of the US Embassy in Iraq is on schedule and within budget.
Peninsula:
- Qatar plans to raise oil production capacity at its Shaheen field by 54% to 525,000 barrels a day in 2009 to account for half the country’s total output.
- Russia today rejected a call from the US to halt construction of a nuclear plant in Iran.
- Hedge funds around the world pulled in a net $24 billion during the first quarter as investors flocked to companies such as Convexity Capital Management LP, owned by former Harvard Univ. endowment manager Jack Meyer.
- The US will crack down on companies that hire undocumented immigrants, Homeland Security Secretary Chertoff pledged today, telling businesses to expect stepped-up raids and criminal sanctions against executives.
- Manufacturing in the Philadelphia area strengthened this month as companies geared up in response to rising domestic and overseas demand, a Fed survey showed.
Wall Street Journal:
- A Goldman Sachs Group(GS) hedge fund led by ex-academics using techniques developed at the Univ. of Chicago was a big contributor in a group of alternative investments increasing profit at the NYC-based brokerage.
- Scott McNealy, Sun Microsystems’(SUNW) chairman and CEO, hasn’t hitherto enjoyed the best of relationships with Wall Street, but that may be changing.
- Weyerhaeuser(WY), the world’s biggest lumber company, said it will realign its wood, paper and pulp units as part of a broader reorganization the company expects will allow the businesses to respond more quickly to market demand.
- The US Office of the Director of National Intelligence will make safeguarding individual privacy rights a top priority.
NY Times:
- Strong demand for super-sized tires used by earthmover machines has caused a shortage, and spurred companies such as France’s Michelin & Cie. to build new plants to keep up with up with customers’ orders.
USA Today:
- Construction of the US Embassy in Iraq is on schedule and within budget.
Peninsula:
- Qatar plans to raise oil production capacity at its Shaheen field by 54% to 525,000 barrels a day in 2009 to account for half the country’s total output.
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