Monday, December 19, 2005

Tuesday Watch

Late-Night Headlines
- About 500 pounds of commercial explosives were stolen yesterday from an Albuquerque business licensed by the US government.
- President Bush’s job-approval rating rose 8 percentage points in one month to 47%, with the public viewing his handling of the war in Iraq more favorably, according to an ABC News/Washington Post poll.
- Honda Motor said its auto sales may rise 4% next year in the US, helped by demand for its redesigned Civic and other new vehicles.
- Japan’s government, the world’s biggest debtor, will reduce bond sales for the first time in nine years as it cuts spending and economic growth boosts tax receipts.

Financial Times:
- Average company dividend pay-out ratios are to rise by 60% over the next four years, citing a report by Eaton Vance, the largest US manager of funds designed to minimize taxes.
- US hotels may report record profits on higher room rates, tighter supply of accommodation and a recovery in business travel since September 2001, citing research by PricewaterhouseCoopers LLP.

Xinhua News:
- Wuhan Iron & Steel Group, China’s third-largest steelmaker, acquired Liiuzhou Iron & Steel Group as the industry consolidates amid an oversupply of steel.

- The al-Qaeda terrorist network has lost 70% of its highest-ranking members in the international war against terrorism, citing Sergei Lebedev, director of Russia’s Foreign Intelligence Service.

Late Buy/Sell Recommendations
Goldman Sachs:
- Reiterated Outperform on CFC, UVN and EBAY.
- Reiterated Underperform on HRB, STXS and TCO.

Night Trading
Asian Indices are -.25% to +.50% on average.
S&P 500 indicated -.05%.
NASDAQ 100 indicated -.06%.

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

Upcoming Splits
- None of note

Economic Releases
8:30 am EST
- The Producer Price Index for November is estimated to fall .5% versus a .7% rise in October.
- The PPI Ex Food & Energy for November is estimated to rise .2% versus a .3% fall in October.
- Housing Starts for November are estimated to rise to 2020K versus 2014K in October.
- Building Permits for November are estimated to fall to 2090K versus 2103K in October.

BOTTOM LINE: Asian indices are mixed as gains in financial shares are offsetting losses in commodity stocks in the region. I expect US equities to open mixed and to trade modestly lower into the afternoon. The Portfolio is 50% net long heading into the day.

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