Tuesday, December 14, 2004

Tuesday Watch

Earnings of Note

BLUD 3-for-2

Economic Data
Trade Balance for October estimated at -$53.0B versus -$51.6B in September.
Industrial Production for November estimated up .2% versus a .7% gain in October.
Capacity Utilization for November estimated at 77.8% versus 77.7% in October.
FOMC expected to raise 25 basis points to 2.25%.

Goldman Sachs reiterated Outperform on AGN, A, CIL, BAX and CAT. Goldman reiterated Underperform on RAI.

Late-Night News
Asian indices are higher on strength in exporters after a better-than-expected retail sales report in the US. Goodyear Tire & Rubber will renew efforts to raise cash by selling operations not related to tire-making, including a unit that makes hoses and conveyor belts, the Daily Deal reported. General Electric and other companies have invested billions of dollars into struggling airlines as a way to avoid potentially massive losses from a bankrupt carrier, the Wall Street Journal reported. Verizon Communications may bid for Sprint, with the backing of Britain's Vodafone Group Plc, its partner in Verizon Wireless, the Wall Street Journal said. Google will announce tomorrow that it will convert more than 15 million books and documents from research institutions such as Stanford University and Oxford University into Internet-searchable files, the NY Times reported. Frontline Ltd., the world's biggest tanker company, said it's considering a bid for General Maritime Corp., a move that would create a company able to ship about five days of OPEC oil production, Bloomberg reported.

Late-Night Trading
Asian Indices are +.50%. to +1.0% on average.
S&P 500 indicated -.04%.
NASDAQ 100 indicated unch.

BOTTOM LINE: I expect U.S. equities to open modestly higher on optimism over merger activity, better-than-expected economic reports and gains in Asia. I also expect the Fed to raise 25 basis points and to reiterate their plans to continue raising at a "measureed pace." The Portfolio is 125% net long heading into tomorrow.

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