Monday, November 20, 2006

Tuesday Watch

Late-Night Headlines
Bloomberg:
- The Chicago Board Options Exchange Volatility Index(VIX) closed below 10 for the first time since 1994, suggesting investors have more confidence stocks will rise. In the three years after the VIX last closed below 10 in January 1994, the S&P 500 rallied 60%.
- Southwest Air(LUV) would consider buying gates, planes and other assets sold in a merger of US Air Group and Delta Air, CEO Kelly said.
- Members of the NY Merc’s Comex division have approved a measure to allow electronic trading of gold, copper and other metals contracts.
- CBS Corp.(CBS) asked an appeals court to throw out a FCC finding that the network violated indecency standards when it showed Janet Jackson’s breast during the 2004 Super Bowl. CBS argued in its filing that the FCC’s “zero tolerance” indecency policy is a violation of its right to free speech.
- US commercial construction starts fell 13.9% year-over-year in October, the sixth decline in the last seven months.
- Korean Air Lines, South Korea’s largest carrier, ordered 25 Boeing Co. planes, its largest ever deal.
- Andres Manuel Lopez Obrador, the former Mexico City mayor who lost his bid for president in July elections, swore himself in as the “legitimate” head of state at a rally today in Mexico City.
- Australia’s biofuels production capacity is expanding faster than demand and the industry risks running into oversupply later this decade, an industry consultant said.

London-based Times:
- Nasdaq Stock Market Inc.(NDAQ) is planning two share issues to help finance its bid for London Stock Exchange Group Plc.

Nihon Keizai:
- The Japanese government will downgrade its view of the country’s economy for the first time in almost two years.

China Business News:
- China’s government has ordered Shandong Xinfa Huayu Alumina Co. to stop building a 1.2 million ton-a-year alumina plant after surging domestic capacity caused prices to plummet.

Late Buy/Sell Recommendations
Citigroup:
- Reiterated Buy on (MCD), target $47.
- Reiterated Buy on (PAYX), target $47.

Night Trading
Asian Indices are +.25% to +.50% on average.
S&P 500 indicated -.06%.
NASDAQ 100 indicated unch.

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
Conference Calendar
Daily Stock Events
Macro Calls
Rasmussen Consumer/Investor Daily Indices
CNBC Guest Schedule

Earnings of Note
Company/EPS Estimate
- (BGP)/-.64
- (BWS)/.83
- (CBRL)/.57
- (CWTR)/.17
- (DE)/.94
- (DELL)/.24
- (DLTR)/.32
- (EV)/.33
- (GME)/.22
- (JCG)/.21
- (JBX)/.66
- (MWRK)/-.12
- (PSS)/.42
- (PERY)/.71
- (TECD)/.22
- (UNFI)/.29

Upcoming Splits
- None of note

Economic Releases
- None of note

BOTTOM LINE: Asian indices are higher, boosted by technology 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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