Monday, December 26, 2005

Tuesday Watch

Weekend Headlines
- US toy sales are headed for their third straight annual decline because children like 6-year-old Dawson Painter prefer electronic games.
- President Bush asked Americans to keep the families of US military men and women in mind during the Christmas holiday, saying their wartime sacrifices are protecting the country’s freedoms.
- Eastman Kodak probably generated increased holiday sales of digital cameras and printers, boosting efforts by the world’s largest photography company to shift from its traditional film business.
- said holiday sale worldwide set a record this year on demand for Apple’s iPod music players, video games and jewelry.
- Royal Dutch Shell Plc said it discovered oil off Brazil’s southeastern coast and wants to start producing by the end of the decade.
- The yen is falling by the most against the euro in more than two months and had the biggest loss versus the dollar in a week after reports showed Japanese household spending unexpectedly slid and unemployment increased.
- Crude oil is falling as much as 1.4% in NY on forecasts for milder weather in the US and on expectations heating fuel stockpiles, including natural gas, are adequate to meet winter demand.

NY Times:
- Goldman Sachs and Merrill Lynch are among Wall Street firms investing in online casinos and betting parlors and ignoring the government’s edict that those organizations are illegal.
- Pennsylvania lawmakers are investigating whether the political atmosphere of 18 state-run universities and colleges requires legislation to ban political bias in the classroom.
- The Israeli economy is likely to grow 5% this year, up from 4% in 2004, as its technology industries approach the peak they reached in 2000.

Washington Post:
- Immigrant entrepreneurs in the US are using small vending carts or kiosks in malls as a springboard into retailing.

Economic Daily News:
- Global shipments for flat-panel displays used in computers will see a modest slide in the first quarter of 2006, falling by a single digit from the fourth quarter, citing AU Optronics Executive VP Hui.

- OPEC President Sheikh al-Sabah is visiting Moscow to ask Russia to cooperate on a planned cut in oil production and to learn more about Russia’s plans to supply China.

Weekend Recommendations
- Had positive comments on OSK, COP, APC and FDX.
- Had negative comments on GE and NTRI.

Goldman Sachs:
- Reiterated Outperform on EBAY.

Night Trading
Asian indices are -.50% to +.50% on average.
S&P 500 indicated +.13%.
NASDAQ 100 indicated +.24%.

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

Upcoming Splits
MRTN 3-for-2
KNX 3-for-2
JBLU 3-for-2
WFMI 2-for-1

Economic Releases
10:00 am EST
- Richmond Fed Index for December is estimated to rise to 10 versus a reading of 9 in November.

BOTTOM LINE: Asian Indices are mixed, as declining energy prices are offsetting disappointing economic data from Japan. I expect US stocks to open modestly higher and build on gains later in the day. The Portfolio is 100% net long heading into the week.

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