Wednesday, January 10, 2007

Thursday Watch

Late-Night Headlines
Bloomberg:
- Crude oil is falling to $52.94/bbl. in NY after a US government report showed demand plunged to its lowest in more than two years. “There’s really no one who is going to buy this thing. It’s catch a falling knife syndrome,” said Randy Simpson, vp of supply and trading at New West Petroleum Inc. in Sacramento, California. “The market seems very well supplied.” Oil has now plunged 32% from July 14, 2006 highs.
- President Bush announced that he’s sending more than 20,000 additional troops to Iraq, and said the US erred by not deploying more forces when sectarian violence began spiraling out of control last year.
- Cisco Systems(CSCO) sued Apple Inc.(AAPL) for trademark infringement over Apple’s use of the iPhone name. Apple called the lawsuit "silly," according to Dow Jones.
- Obesity surgeries for older Americans soared almost 21-fold to more than 15,000 procedures a year from 1998 to 2004, said a US government report.
- The Tokyo Stock Exchange is close to announcing an agreement with NYSE Group(NYX) that will strengthen ties between the world’s two largest equity markets, said Japan’s Minister for Financial Services.
- The European Central Bank will probably leave its benchmark interest rate unchanged as President Jean-Claude Trichet waits for more evidence of accelerating inflation before raising borrowing costs.
- Cerberus Capital Management LP, the NY-based buyout firm, is considering a bid for Equity Office Properties Trust(EOP) that may top Blackstone Group LP’s $36 billion offer.
- Goldman Sachs JBWere Pty, the Australian affiliate of the world’s most profitable investment bank, cut its price forecast for copper and zinc this half after investment funds sold the metals.
- The US must embrace “bold” energy policies to reduce its reliance on foreign sources of oil, Robert Hormats, vice chairman of Goldman Sachs Intl., told a Senate panel.
- Oil Search Ltd., Papua New Guinea’s biggest oil and gas producer, said it found oil at an exploration well in Egypt.

Financial Times:
- Wal-Mart Stores(WMT), Tesco Plc, Carrefour SA and Metro AG have agreed a set of workplace guidelines aimed at abolishing sweatshop issues, such as child labor and unpaid wages, from their supply chains.

London-based Times:
- Telefonica SA’s O2 Plc unit has held preliminary talks to gain some rights in Europe and the UK to Apple Computer’s iPhone.

Late Buy/Sell Recommendations
Morgan Stanley:
- Reiterated Overweight on (GILD), raised target to $81.

CSFB:
- Reiterated Outperform on (T), raised target to $39.

Night Trading
Asian Indices are -.50% to +.75% on average.
S&P 500 indicated +.11%.
NASDAQ 100 indicated +.10%.

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
- (IHS)/.35
- (MTB)/1.88
- (MTG)/1.53
- (SRR)/.02

Upcoming Splits
- None of note

Economic Releases
8:30 am EST
- Initial Jobless Claims for last week are estimated to fall to 320K versus 329K the prior week.
- Continuing Claims are estimated to rise to 2450K versus 2446K prior.

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

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