Tuesday, February 08, 2005

Tuesday Watch

Late-Night News
Asian indices are mixed as shares of exporters are rising and healthcare stocks are declining in the region. Altria Group, parent of Philip Morris and Kraft Foods, may separate into two or three units "sooner rather than later," the Financial Times said. The Athens Exchange may set up a freight futures clearing house to settle bets on the direction of shipping rates, shipping daily Lloyd's List said. Almost one-fifth of the world's shipping fleet is Greek owned, Bloomberg said. News Corp.'s Fox network coverage of yesterday's Super Bowl drew 1 percent lower television audience ratings than last year's game, Bloomberg reported. Israeli Prime Minister Ariel Sharon and Palestinian Authority President Mahmoud Abbas will declare their intent to halt violence at a summit today in Egypt, Bloomberg reported. Fujitsu Ltd. will increase investment in semiconductors by about 80% next business year to meet demand for its smaller and low-power chips used in digital cameras, computer servers and other electronics, Bloomberg said. The falling unemployment rate is approaching a level that could cause an acceleration of inflation and pressure central bankers to keep raising the benchmark interest rate, said Bruce Kasman, head of economic research at JP Morgan. The US dollar is rising against the yen after Federal Reserve Governor Bies said the US is attracting "a tremendous amount" of overseas investment to help offset deficits, Bloomberg reported. Iran's rejection of a $2.25 billion cell-phone project led by Turkey's Turkcell Iletisim Hizmetleri AS signals a growing hostility to foreign investment that may undermine European efforts to avoid a confrontation over the country's nuclear ambitions, the Wall Street Journal reported.

Late Recommendations
-Goldman Sachs: Reiterated Outperform on AGN, MSFT, SYK, DELL and FSL.

Night Trading
Asian Indices are -.25% to +.25% on average.
S&P 500 indicated -.01%.
NASDAQ 100 indicated unch.

Morning Preview
US AM Market Call
NASDAQ 100 Pre-Market Indicator/Heat Map
Pre-market Commentary
Before the Bell CNBC Video(bottom right)
Asian Indices
European Indices
Top 20 Business Stories
In Play
Bond Ticker
Analyst Actions
Macro Calls
CNBC Guest Schedule

Earnings of Note

None of note.

Economic Data
None of note.

BOTTOM LINE: I expect US equities to open modestly lower in the morning on continuing worries over future earnings growth. However, stocks may rise later in the afternoon on lower energy prices and interest rates. I am looking to add to my GOOG long in the $187-$192 area before the widely publicized lock-up expiration on Feb. 14. The Portfolio is 125% net long heading into tomorrow.

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