Wednesday, October 06, 2004

Wednesday Watch

Earnings of Note
Company/Estimate
DNA/.21
MON/.02
SCHN/.90

Splits
None of note.

Economic Data
None of note.

Recommendations
Goldman Sachs reiterated Outperform on BBY, YHOO, KMI, GE, VNO and SRE.

Late-Night News
Asian indices are modestly higher on strength in commodity-related shares. China will ease controls on loans, property and investment amid concern that tough measures to cool the economy may lead to a "hard landing," the South China Morning Post reported. Pulte Homes CEO Dugas told CNBC that its new-home order growth in the third quarter, excluding Las Vegas, was 24%, Bloomberg reported. Adelphia Communications may refuse to allow Comcast and Time Warner to submit a joint offer to acquire the company, the Wall Street Journal said. US Airways' 3,200 pilots will vote on an agreement that would allow $1.85 billion in pay and benefit reductions over five years that the company said it needs to help avoid liquidating, Bloomberg reported. Electronic Arts said it will set up a development studio in China to tap the nation's growing online games market and earn more sales from Asia, Bloomberg said.

Late-Night Trading
Asian Indices are +.25% to +.50% on average.
S&P 500 indicated +.09%.
NASDAQ 100 indicated +.10%

BOTTOM LINE: I expect U.S. equities to open modestly higher on gains in Asia, positive Fed comments and short-covering. However, the weekly government oil inventories report will likely dictate trading later in the day. The Portfolio is 125% net long heading into tomorrow.

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