Tuesday, December 21, 2004

Tuesday Watch

Earnings of Note

ADSK 2-for-1

Economic Data
None of note.

Goldman Sachs reiterated Outperform on BSX, IP and SPP. Goldman reiterated Attractive View of the Internet sector.

Late-Night News
Asian indices are mostly higher, led by financial stocks in the region. A former American Online worker reached a tentative deal with federal prosecutors in a case accusing him of selling millions of stolen e-mail addresses to so-called spammers, the AP reported. China shouldn't rush to tighten its fiscal policy because there is not sign of higher inflation and the economy overall isn't overheated, the official Xinhua news agency said. Donald B. Marron, the former chief executive officer of Paine Webber Group, may be among the top candidates to replace Fannie Mae CEO Franklin Raines should the company decide to fire him, Bloomberg reported. U.S. stocks may rise more than expected next year amid speculation that President Bush's plan to privatize Social Security will spur cash inflows, according to Tobias Levkovich, chief US equity strategist for Citigroup Global Markets. Enron Corp. legal advisers led by NY law firm Weil Gotshal & Manges asked a judge to approve more than $780 million in fees, the most ever in a bankruptcy case, Bloomberg said. OAO Yukos Oil said it will sue to recover more than $20 billion of damages after the government confiscated its biggest unit, prompting concern cargoes may be seized by foreign courts, Bloomberg reported.

Late-Night Trading
Asian Indices are unch. to +.50% on average.
S&P 500 indicated -.02%.
NASDAQ 100 indicated unch.

BOTTOM LINE: I expect U.S. equities to open modestly lower and to rise later in the afternoon ahead of a number of economic reports. The Hennessee Hedge Fund Short-Biased Index, which was up 15.81% at the end of August, is now only ahead by 1.57% this year. I suspect many short-biased funds and "market neutral" funds that are hovering near breakeven for the year will be quick to cover into year-end to keep their performance positive for the year. The Portfolio is 100% net long heading into tomorrow.

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