Wednesday, February 02, 2005

Wednesday Watch

Late-Night News
Asian indices are mostly higher on gains in technology and commodity-related shares in the region. Delta Air Lines aims to get "within 10%" of the cost structure of low-cost carriers by 2006, the Financial Times said. Venezuelan President Chavez said he intends to sell the country's interests in eight US oil refineries owned through Citgo Petroleum, the Wall Street Journal reported. North Korea most likely sold the processed uranium, used in atomic weapons, to Libya that was confiscated nine months ago, the NY Times said. Nissan Motor and Hyundai Motor sold more cars and trucks in the US in January, giving Asian automakers a record share of the world's largest vehicle market, Bloomberg said. Aluminum and zinc prices will probably rise the most among base metals this year because of a lack of raw material and disruptions at refineries in China, Citigroup analysts said. Howard Dean, former Vermont governor and presidential candidate, appears to be on the verge of becoming the new leader of the Democratic National Committee after one of his opponents dropped out of the race, the NY Times said. President Bush's 40-minute state of the union address Wednesday night will equally focus on domestic and foreign issues, Bloomberg reported.

Late Recommendations
Goldman Sachs: Reiterated Outperform on DKS, AIG and UDR. Reiterated Underperform on OMI and UCL. Reiterated Outperform on GOOG, raised estimates 25% and increased implied value to $265.

Night Trading
Asian Indices are -.25% to +.75% on average.
S&P 500 indicated +.12%.
NASDAQ 100 indicated +.23%.

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

MCRS 2-for-1
WWW 3-for-2

Economic Data
FOMC expected to raise the Fed Funds Rate 25 basis points to 2.50%.

BOTTOM LINE: I expect US equities to open modestly higher in the morning on strength in technology stocks and lower energy prices. Stocks may add to gains later in the day on optimism over the possibility of meaningful US reforms, short-covering, declining long-term interest rates, less hawkish Fed comments and strong earnings reports. The Portfolio is 100% net long heading into tomorrow.

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