Sunday, August 20, 2006

Monday Watch

Weekend Headlines
Bloomberg:
- Israeli special forces raided Lebanon late yesterday to prevent arms from being smuggled to Hezbollah fighters from Iran and Syria, five days after a cease-fire came into effect.
- UN Secretary-General Kofi Annan is “deeply concerned” about Israel’s raid two days ago in eastern Lebanon that endangers the “fragile calm” in the region.
- US Treasuries posted the biggest weekly increase since May after slowing inflation and housing bolstered investor expectations that the Fed may be finished raising rates this year.
- BHP Billiton Plc(BHP) reopened the world’s biggest copper mine and resumed talks with striking workers in Chile.
- Democratic Senator Joe Lieberman, who will run as an independent in the November general election, told CBS’s “Face the Nation” that a proposal by Democratic nominee Ned Lamont to set a deadline for withdrawing US troops from Iraq would incite more sectarian violence and terrorism in the Middle East.
- China’s decision to raise benchmark interest rates and give lenders more discretion over mortgage costs ay curb soaring investment by developers while avoiding a slump in demand from home buyers.
- Thailand and its neighbors including Cambodia are favored by child predators and other sex tourists, attracted by their vulnerable populations, lax laws and reluctant enforcement, aid organizations say.
- Corn may decline and soybeans fall for a seventh straight week as rains and cooler weather in the US Midwest increase prospects for the autumn harvests.

NY Times:
- US District Judge Anna Diggs Taylor ignored statutory arguments when she ruled that the NSA’s terrorist surveillance program was unconstitutional, citing scholars.
- Papa John’s Intl.(PZZA) plans to open more than 800 restaurants outside the US during the next 10 years, focusing on the UK, Mexico, Russia, China, India and Korea.
- Russia’s richest investors are putting their money outside the country as they seek to protect their assets from the government and earn larger profits.

San Jose Mercury News:
- The city of San Jose leads the California Bay Area in the production of solar energy.

LA Times:
- Increased US border patrols, more barriers and high-tech monitoring along the Mexican border has made it more difficult for illegal immigrants to enter the US.

Reuters:
- Contrarian investors are betting that the beaten-up shares of online auction leader eBay(EBAY) have hit bottom.

Guardian:
- Iranian President Mahmoud Ahmadinewjad, who has called for the destruction of Israel, called for the British people to stop supporting Tony Blair, saying the UK prime minister’s foreign policies are harming the country’s reputation.

Yomiuri:
- The Japanese government seeks to exempt oil from economic sanctions that the UN would impose upon Iran if the country refuses to abandon its nuclear program.

Weekend Recommendations
Barron's:
- Had positive comments on (AMP), (AET) and (PG).
- Had negative comments on (NKE) and (HIG).

Night Trading
Asian indices are -.75% to unch. on average.
S&P 500 indicated -.19%
NASDAQ 100 indicated -.35%.

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/Estimate
- (BOBE)/.32
- (LOW)/.60
- (VRNT)/.29

Upcoming Splits
- None of note

Economic Releases
- None of note

BOTTOM LINE: Asian Indices are lower, weighed down by automaker and technology shares in the region. I expect US stocks to open modestly lower and to rally into the afternoon, finishing mixed. The Portfolio is 100% net long heading into the week.

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