Monday, June 18, 2007

Tuesday Watch

Late-Night Headlines
- The perceived risk of owning BHP Billiton Ltd.(BHP) bonds rose on concern the world’s largest mining company may need to borrow to finance any bid for aluminum producers Alcoa(AA) or Alcan(AL).
- Republican presidential candidate Rudy Giuliani said he’s against raising taxes on hedge-fund managers and private-equity partners who classify their pay as capital gains. Giuliani said he disagreed with former Clinton administration Treasury Secretary Robert Rubin, who suggested last week that Congress should more than double tax rates for those executives.

Financial Times:
- Europe’s biggest hedge funds recruited Andrew Large, former Bank of England deputy governor, to conduct a study into voluntary standards for the industry in a bid to pre-empt politically imposed regulation.

Daily Telegraph:
- Richard Buxton, a senior executive at one of Pearson Plc’s largest shareholders, said he was opposed to the publisher bidding for Dow Jones(DJ).

Shanghai Securities News:
- China’s shipbuilding industry loses $262 million for every 1% gain in the value of the yuan against the US dollar, citing Zhang Xiangmu, a manager at the Commissioner of Science Technology and Industry for National Defense.

Late Buy/Sell Recommendations

- Reiterated Buy on (YHOO), target lowered to $34.

Night Trading
Asian Indices are unch. to +.25% on average.
S&P 500 indicated -.07%.
NASDAQ 100 indicated -.17%.

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 Business/Economy Polling
CNBC Guest Schedule

Earnings of Note
Company/EPS Estimate
- (ATU)/.93
- (BBY)/.50
- (CCL)/.47
- (CLC)/.38
- (DRI)/.69
- (FDS)/.52
- (LZB)/.07
- (PRGS)/.41
- (SHRP)/-.89

Upcoming Splits
- (SEIC) 2-for-1
- (AGN) 2-for-1
- (ESRX) 2-for-1

Economic Releases
8:30 am EST
- Housing Starts for May are estimated to fall to 1472K versus 1528K in April.
- Building Permits for May are estimated to rise to 1473K versus 1457K in April.

Other Potential Market Movers
- The Fed’s Minehan speaking, former Fed head Volcker speaking, weekly retail sales reports, William Blair Growth Stock Conference, (ALKS) Analyst Day and (TYC) analyst meeting
could also impact trading today.

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

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