Tuesday, December 13, 2005

Wednesday Watch

Late-Night Headlines
- Iraqi’s first election of a permanent government since the ousting of dictator Saddam Hussein may reduce the power of the governing Shiite Muslim coalition.
- Boeing beat larger rival Airbus SAS to win an order worth as much as $15.5 billion for 115 airplanes from Qantas Airways Ltd., Australia’s largest carrier.

Financial Times:
- US airlines may recruit 2,500 new pilots next year after an increase in the number of low-cost carriers, regional airlines and business planes, citing Kit Darby, a pilot consultant at Atlanta-based Air Inc.

- Morgan Stanley will pay “huge” bonuses even amid earnings that have fallen 25% this year, Crain’s NY Business reporter Aaron Elstein said.

Business Week:
- Legal music downloads are slowing down this quarter in spite of brisk sales of Apple Computer’s iPod portable music player, citing data from Nielsen SoundScan. Music downloads may pick up after Christmas because sales of iTunes gift cards are “off the charts,” the magazine said.

Late Buy/Sell Recommendations
Goldman Sachs:
- Reiterated Outperform on GE.
- Reiterated Underperform on GXP, SIE and ELNK.

Night Trading
Asian Indices are -.50% to +.25% on average.
S&P 500 indicated -.07%.
NASDAQ 100 indicated -.15%.

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 Trade Deficit for October is estimated to shrink to -$62.8 billion from -$66.1 billion in September.
- The Import Price Index for November is estimated to fall .5% versus a .3% decline in October.

10:30 am EST
- Bloomberg consensus estimates call for a weekly crude drawdown of 1.5 million barrels. Gasoline inventories are estimated to rise 1.0 million barrels and distillate supplies are expected to rise 800,000 barrels. Finally, refinery utilization is expected to rise 0.45%.

BOTTOM LINE: Asian indices are mostly lower after a Japanese manufacturing survey failed to meet expectations. I expect US equities to open lower and to rally modestly into the afternoon, finishing mixed-to-lower. The Portfolio is 75% net long heading into the day.

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