Friday, May 20, 2005

Friday Watch

Late-Night Headlines
- America West Holdings and US Airways Group agreed to merge to create a national low-fare carrier, with $1.5 billion in funding from new investors, vendors and others.
- Crude oil prices may fall for a third week as rising OPEC output boosts inventories and on signs of slowing global economic growth, a Bloomberg survey showed.
- China said it plans to increase export tariffs on textiles and enlarge the list to include single-ply linen yearn.

Wall Street Journal:
- US appliance maker Maytag Corp. agreed to be acquired by buyout firm Ripplewood Holdings LLC for about $1.13 billion.

China Business News:
- Citigroup agreed to buy a stake in China Construction Bank and Bank of America will invest in Bank of China.

Kyodo News Agency:
- Japan yesterday warned North Korea against conducting a nuclear test.

Late Buy/Sell Recommendations
Goldman Sachs:
- Reiterated Outperform on AAP and LIZ.
- Reiterated Underperform on PSS.

Business Week:
- Exelon Corp.(EXC), a producer of nuclear power, may benefit from coming shortages of fossil fuel and generating capacity.
- Shares of Rent-Way(RWY), which owns stores that rent out merchandise such as furniture and computers, may be worth $13 in a possible acquisition by competitor Aaron Rents.
- North Fork Bancorp(NFB), a banking holding company with branches in NY, New Jersey and Connecticut, is an attractive buyout target, possibly for a big rival like Wachovia, Ryan Beck managing director Jacqueline Reeves said.

Night Trading
Asian Indices are -.25% to +.25% on average.
S&P 500 indicated -.02%.
NASDAQ 100 indicated -.07%.

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

Earnings of Note
Company/EPS Estimate

None of note

Economic Releases
None of note

BOTTOM LINE: Asian indices are mixed as more optimism for exporters in the region is offsetting higher energy prices. I expect US equities to open mixed. However, stocks may rise modestly later in the day on short-covering, Fed comments and more optimism. The Portfolio is 100% net long heading into the day.

No comments: