Monday, November 13, 2006

Tuesday Watch

Late-Night Headlines
Bloomberg:
- Fidelity Investments sold most of its Yahoo!(YHOO) stake over the last four months as the stock fell.
- Japan’s economy grew at an annualized 2% in the three months ended Sept. 30, the Cabinet office said in Tokyo. Second quarter growth was revised to 1.5% from 1%.
- Drew Matus, a senior economist at Lehman Brothers(LEH) says US consumer spending may be accelerating.
- Sony Corp.(SNE) said its PlayStation 3 can’t play software titles designed for older consoles properly, marring the company’s launch of its newest machine after a shortage.

Financial Times:
- NATO advisers are warning the alliance needs to guard against attempts by Russia to create an “OPEC for natural gas” that would strengthen Moscow’s leverage over Europe. An economic study warned that Russia may try to build a gas cartel that would include Algeria, Qatar, Libya, the countries of central Asia and possibly Iran. Russia supplies 24% of Europe’s natural gas.

Guardian:
- The US government is lobbying UK ministers to allow the world’s largest drug companies unrestricted access to the UK’s National Health Service as it begins to adapt free-market reforms.

New Straits Times:
- Malaysia will more than double production of biodiesel next year, citing the Minister for Plantation Industries and Commodities.

Late Buy/Sell Recommendations
Citigroup:
- Reiterated Buy on (BEAS), target $18.
- Reiterated Buy on (LUV), target $19.40.

Night Trading
Asian Indices are +.25% to +1.0% on average.
S&P 500 indicated +.02%.
NASDAQ 100 indicated -.03%.

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
- (ANF)/1.10
- (A)/.53
- (AEOS)/.65
- (ADI)/.40
- (BJ)/.26
- (DHI)/.69
- (FOSL)/.30
- (HD)/.75
- (PBY)/-.05
- (PPC)/.14
- (ROST)/.31
- (SKS)/.03
- (SCHS)/1.22
- (SPLS)/.36
- (SNS)/.27
- (TGT)/.55
- (TJX)/.46
- (WMT)/.60

Upcoming Splits
- None of note

Economic Releases
8:30 am EST
- The Producer Price Index for October is estimated to fall .5% versus a 1.3% decline in September.
- The PPI Ex Food & Energy for October is estimated to rise .1% versus a .6% increase in September.
- Advance Retail Sales for October are estimated to fall .4% versus a .4% decline in September.
- Retail Sales Less Autos for October are estimated to fall .2% versus a .5% decline in September.

10:00 am EST
- Business Inventories for September are estimated to rise .6% versus a .6% increase in August.

BOTTOM LINE: Asian indices are higher, boosted by technology and 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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