Wednesday, July 20, 2005

Wednesday Watch

Late-Night Headlines
Bloomberg:
- Nomura Holdings, Japan's largest securities firm, plans to expand its US investment banking business to win more fees in the world's biggest market after benefiting in Europe from a venture with Rothschild Group.
- President Bush selected John G. Roberts Jr., a Washington federal appeals court judge, to fill the vacancy on the US Supreme Court.
- China, producer of one-third of the world's steel, will force mills to merge and shut small, polluting furnaces to curb expansion of the industry and prevent a glut of the metal on world markets.
- China's economic growth unexpectedly picked up in the second quarter as exports surged and investment in power plants, coal mines and other fixed assets gathered pace.

NY Times:
- Forty-six people in California have been charged with lying to US officials to get their pilots licenses.

Financial Times:
- Japan and China's private equity investments fell in the first half of the year as regulations, tax policies, and increasing domestic competition affected foreign acquirers.

Guardian:
- The US and Europe are at the forefront of a "crazy" global airline industry which encourages governments to prop up failing carriers, citing British Airways Plc Chairman Martin Broughton.

Times of India:
- Starbucks Corp. may soon announce an Indian joint venture partner as part of a plan to start business locally.

China Times:
- China last week test-fired its M-9 short-range missile and is preparing its annual military exercise on and around the southeastern island of Dongshan adjacent to Taiwan.
- China's investment in coal extraction, power facilities and railways increased 81%, 37% and 48% respectively during the first half of the year from the first half.

Late Buy/Sell Recommendations
Goldman Sachs:
- Reiterated Outperform on YHOO, XTO, BSX, WFC and CAKE.

Night Trading
Asian Indices are +.50% to +.75% on average.
S&P 500 indicated -.35%.
NASDAQ 100 indicated -.66%.

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
ALL/1.51
MO/1.33
AMR/.15
BK/.50
COF/1.75
CAL/.20
EK/.80
EBAY/.18
FFIV/.34
GD/1.62
GM/.03
GDW/1.15
HON/.50
JPM/.64
LRCX/.44
MACR/.21
PFE/.44
QCOM/.25
QLGC/.43
RYL/1.80
STJ/.36
UTX/.85
VRSN/.26
WYE/.70

Upcoming Splits
AMX 3-for-1

Economic Releases
10:00 am EST
- Greenspan Report on Economy & Policy

BOTTOM LINE: Asian indices are higher, led by commodity stocks in the region. I expect US equities to open lower, spurred by tech shares. However, stocks may rally late in the day on optimism for a stronger second half. The Portfolio is 100% net long heading into the day.

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