Friday, October 13, 2006

Friday Watch

Late-Night Headlines
Bloomberg:
- Home Depot(HD) altered its management structure to remove the layer between the store leaders and CEO Bob Nardelli.
- The University of Chicago Graduate School of Business is the best in the US, according to a Business Week survey of best business schools.
- An initial vaccination for avian influenza may prime people’s immune systems to respond better to subsequent shots against different variations of bird flu, according to a University of Rochester study.
- The US can stop importing oil by 2030 with policies that support converting coal to liquid fuels, farming more crops to make ethanol and improving vehicle efficiency, said governors of Montana and West Virginia.

Reuters:
- Federal Reserve Bank of St. Louis President William Poole said he would support a cut in interest rates if the US economy stalls, citing an interview with Poole. The risk of inflation has eased “a bit” in the past eight to ten weeks, citing Poole. He sees more risk to growth than prices.

Wall Street Journal:
- China’s main government-backed labor body will push companies including Eastman Kodak(EK) and Dell Inc.(DELL) to install unions after success with Wal-Mart Stores(WMT).

London-based Times:
- Amaranth Advisors LLC’s collapse after losing $6.5 billion betting on natural gas was “anything but unforeseeable,” citing Christopher Fawcett, director of hedge fund manager Fauchier Partners. Amaranth is dismantling after its two main funds fell as much as 70% in September, the most costly collapse ever for hedge-fund investors.

China Securities Journal:
- China’s money supply growth slowed last month and the amount of new yuan lending decreased. M2, the broadest measure of money supply rose 16.8% last month compared with 17.9% in August.

AP:
- The Islamist Hamas movement wants to join a coalition Palestinian government even though it will not recognize Israel, citing the group’s exiled political leader Khaled Mashaal.

Daily Yomiuri:
- Japan raised its security alert to protect itself against the threat of terrorist attacks by North Korean agents.

Late Buy/Sell Recommendations
Business Week:
- Nu Skin Enterprises(NUS), a direct seller of skin-care products, may rise 42% because sales will increase on a new license to sell goods in China, citing Heartland Advisors’ Rodney Hathaway, who owns shares.
- NewAlliance Bancshares(NAL), a $7 billion regional bank in Connecticut, has climbed about $15 a share, close to a 52-week high, because of takeover speculation, citing Collyn Gilbert of investment firm Ryan Beck.

Night Trading
Asian Indices are +1.0% to +1.25% on average.
S&P 500 indicated unch.
NASDAQ 100 indicated +.07%.

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
- (GE)/.49
- (JBHT)/.37
- (RF)/.71

Upcoming Splits
- None of note

Economic Releases
8:30 am EST:
- The Import Price Index for September is estimated to fall 1.3% versus a .8% rise in August.
- Advance Retail Sales for September are estimated to rise .2% versus a .2% gain in August.
- Retail Sales Less Autos for September are estimated to rise 0.0% versus a .2% gain in August.

10:00 am EST:
- The Preliminary Univ. of Mich. Consumer Confidence reading for October is estimated to rise to 86.5 versus a reading of 85.4 in September.
- Business Inventories for August are estimated to rise .5% versus a .6% gain in July.

BOTTOM LINE: Asian indices are higher, boosted by technology shares in the region. I expect US equities to open modestly higher and to maintain gains into the afternoon. The Portfolio is 100% net long heading into the day.

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