Tuesday, October 24, 2006

Wednesday Watch

Late-Night Headlines
Bloomberg:
- Microsoft(MSFT) said it will offer coupons for copies of Windows Vista and Office 2007, costing the company about $1.5 billion in sales in the current quarter.
- The vaccine that helps protect people from influenza is safe for infants and toddlers from 6 months to 2 years old, a study of 45,000 children found.
- Phillip Goldstein, the investment manager who successfully blocked the SEC from requiring hedge funds to register, asked the agency to exempt him from stock disclosure rules.
- Major League Baseball and its players union agreed on a new labor contract, avoiding a work stoppage for only the second time in 34 years amid a business boom for the sport.
- Asian stocks, trading at a five-month high, may have run ahead of expectations for earnings and economic growth, according to Richard Patterson, Citigroup’s head of Asian sales trading.
- The majority of players treated on the field during this year’s World Cup weren’t injured, underlining a growing problem in soccer, the tournament organizer’s top medic said.

Financial Times:
- Ford Motor(F) will not pursue alliances with other carmakers and will keep the Jaguar brand, citing an interview with CEO Mulally.
- China’s economic growth may fall below 10% in 2007 as government curbs on investment and liquidity take effect, the National Development and Reform Commission’s Academy of Macroeconomic Research said.
- Japan, the world’s largest oil consumer after the US and China, imported 8.1% less crude oil in September than a year earlier, the fifth straight monthly decline.

Late Buy/Sell Recommendations
Citigroup:
- Reiterated Buy on (LXK), target $72.
- Reiterated Buy on (ROP), target $54.

Night Trading
Asian Indices are unch. to +.50% on average.
S&P 500 indicated -.11%.
NASDAQ 100 indicated -.04%.

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
- (AMG)/1.34
- (APD)/.92
- (ATI)/1.36
- (MO)/1.41
- (BUD)/.81
- (ABI)/.25
- (AVB)/.58
- (BEBE)/.21
- (BA)/.63
- (BOB)/.18
- (CBG)/.36
- (CL)/.72
- (COP)/2.40
- (CVG)/.29
- (CCI)/-.10
- (EL)/.19
- (FFIV)/.51
- (FORM)/.33
- (GM)/.49
- (HET)/.99
- (IMCL)/.45
- (JCI)/1.85
- (JNY)/.66
- (KOMG)/1.09
- (MCHP)/.36
- (MNST)/.31
- (MCO)/.52
- (NSC)/.81
- (PFCB)/.21
- (PX)/.73
- (PHM)/.76
- (RSH)/.17
- (RAI)/1.02
- (SEE)/.78
- (SGR)/.18
- (SRCL)/.59
- (SWFT)/.51
- (SYMC)/.26
- (TROW)/.49
- (TEX)/.94
- (TDW)/1.32
- (TSCO)/.47
- (TRID)/.25
- (WY)/.87
- (ZMH)/.75

Upcoming Splits
- (HLSH) 1-for-5

Economic Releases
10:00 am EST
- Existing Home Sales for September are estimated to fall to 6.23M versus 6.3M in August.

2:00 pm EST
- The FOMC is expected to leave the benchmark Fed Funds Rate at 5.25%.

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

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