Sunday, October 22, 2006

Monday Watch

Weekend Headlines
Bloomberg:
- The US gasoline pump price fell eight cents in the past two weeks to $2.20/gallon, the lowest this year, as crude oil prices declined, Trilby Lundberg said, citing her survey of about 7,000 filling stations nationwide.
- Marsh & McLennan, the world’s largest insurance broker, may sell for about $17.5 billion should Willis Group Holdings Ltd. make an offer for its larger rival, according to an analyst at Keefe, Bruyette & Woods.
- Assets at commodity hedge funds rose 87% in the past year.
- Oil is falling for a second day in NY amid speculation that OPCE members will fail to cut production by as much as planned.
- Access Economics expects commodity prices to fall over the next five years as a result of new global supplies, prompting the value of the Australian dollar to decline.
- Fed officials, satisfied that core inflation is slowly declining and likely to continue doing so, will make no change in their 5.25% target for the overnight lending rate then they meet this week.

Wall Street Journal:
- Ripplewood Holdings LLC, a NY-based buyout firm, is preparing a bid for Delphi Corp.(DPHIQ) that may exceed $10 billion.
- Bank of America(BAC) has expanded its Manhattan deposits to $19 billion from less than $400,000 in 2001 by using sales techniques borrowed from Gap Inc.(GPS) and Wal-Mart Stores(WMT).

Barron’s:
- James Paulson, strategist for Wells Capital Management in Minneapolis, said oil should be about $50 a barrel based on the prices of non-energy commodities.

Investment Dealer’s Digest:
- Next generation stents are on their way from start-up companies.

NY Times:
- General Motors(GM), Whole Foods Market(WFMI) and Staples(SPLS) are among companies that buy power from businesses that install solar cells on the roofs of corporate buildings.
- Two US Senate committees are examining how the SEC handled an investigation into alleged insider trading by hedge fund Pequot Capital Management.

Mercury News of San Jose:
- The jobless rate in Silicon Valley declined to 4.5% in September from 4.7% in August and 5.3% in the year-ago period.

Oil and Gas Journal:
- US oil and gas drilling reached its highest quarterly level in more than two decades with an estimated 12,687 completions in the 3 months ended Sept. 30, the American Petroleum institute said.

Financial Times:
- Hedge funds managers may leave the UK because of proposed changes to the rules on taxing offshore funds, citing lawyers.

Sunday Telegraph:
- Time Warner(TWX) is considering a sale of its AOL Internet unit, citing an interview with AOL CEO Miller.

Chosun Ilbo:
- North Korean Leader Kim Jong Il takes more than 50% of the wages earned by workers at the Gaeseong Industrial Complex, an industrial park run by South Korean companies in North Korea.

Legal Daily:
- China’s Ministry of Land and Resources will restrict local government’s land approval planned for 2007 to control investment growth.

Economic Observer:
- PetroChina Co. has found as much as 1 billion metric tons of new crude oil reserves in its Daqing field, citing Feng Zhiqiang, deputy general manager of the company’s Daqing unit.

Weekend Recommendations
Barron's:
- Made positive comments on (JNY), (BKS), (NME) and (A).

Night Trading
Asian indices are unch. to +.25% on average.
S&P 500 indicated +.17%
NASDAQ 100 indicated +.20%.

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
- (ACL)/1.07
- (ATHR)/.18
- (AXP)/.76
- (AMGN)
- (T)/.58
- (BRO)/.28
- (ETH).55
- (FDC)/.29
- (F)/-.61
- (HAL)/.54
- (HAS)/.50
- (KMB)/.98
- (KFT)/.45
- (PBI)/.66
- (SLAB)/.23
- (TXN)/.45
- (VECO)/.16
- (WFT)/.65

Upcoming Splits
- (ICLR) 2-for-1

Economic Releases
- None of note

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

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