Monday, July 16, 2007

Tuesday Watch

Late-Night Headlines
Bloomberg:
- President Bush said Palestinians have arrived at a “moment of choice” between accepting the violent path Hamas has charted against Israel or a more peaceful route to a Palestinian state.
- Demand for services in Japan unexpectedly fell in May, suggesting waning consumer spending is slowing growth in the world’s second-largest economy.

Wall Street Journal:
- Google Inc.(GOOG) is working on a new service to let mobile-phone users find and buy items such as ringtones. Under the new system, users will get a list of companies that provide the content they’re seeking and links to allow them to purchase the material.
- News Corp(NWS/A) reached a tentative agreement for the purchase of Dow Jones & Co.(DJ) at its original $5 billion offer price. The deal will be put to the full Dow Jones board tomorrow evening for its approval, said people familiar with the situation.
- The leading Republican presidential candidates have received more campaign donations from private-equity firms than Democrats, a shift from past fund-raising patterns as Democrats view the industry as a source of new taxes.

Crain’s Chicago Business:
- The Chicago Tribune will begin selling ads on its front page and the first page of two other sections.

Daily Telegraph:
- Democratic Representative Keith Ellison, the first Muslim congressman in the US, compared President Bush to Adolf Hitler. The Democratic congressman, who addressed a gathering of atheists in his hometown of Minnesota, also suggested Bush may have been responsible for the Sept. 11 attacks.

21st Century Business Herald:
- China’s state investment company that is being set up to manage the nation’s foreign-exchange reserves, will book profits in US dollars, citing a financial researcher.

Late Buy/Sell Recommendations
Keybanc:
- Rated (PWR), (EME) and (JEC) Buy.

Night Trading

Asian Indices are -.25% to +.25% on average.
S&P 500 futures unch.
NASDAQ 100 futures -.02%.

Morning Preview
US AM Market Call
NASDAQ 100 Pre-Market Indicator/Heat Map
Pre-market Commentary
Pre-market Stock Quote/Chart
Before the Bell CNBC Video(bottom right)
Global Commentary
WSJ Intl Markets Performance
Commodity Movers
Top 25 Stories

Top 20 Business Stories
Today in IBD
In Play
Bond Ticker
Economic Preview/Calendar
Daily Stock Events
Macro Calls
Upgrades/Downgrades
Rasmussen Business/Economy Polling
CNBC Guest Schedule

Earnings of Note
Company/EPS Estimate
- (ADTN)/.29
- (CHB)/.08
- (SCHW)/.23
- (KO)/.82
- (CCK)/.45
- (CSX)/.64
- (FRX)/.77
- (INTC)/.19
- (JEF)/.39
- (JNJ)/1.00
- (KEY)/.70
- (MER)/2.02
- (PPDI)/.36
- (RF)/.69
- (SLM)/.73
- (STT)/1.01
- (USB)/.67
- (WFC)/.67
- (YHOO)/.11

Upcoming Splits
- (IOSP) 2-for-1

Economic Releases
8:30 am EST

- The Producer Price Index for June is estimated to rise .2% versus a .9% gain in May.
- The PPI Ex Food & Energy for June is estimated to rise .2% versus a .2% gain in May.

9:00 am EST
- Net Long-term TIC Flows for May are estimated to fall to $70.0B versus $84.1B in April.

9:15 am EST
- Industrial Production for June is estimated to rise by .5% versus unch. in May.
- Capacity Utilization for June is estimated to rise to 81.6% versus 81.3% in May.

1:00 pm EST
- The NAHB Housing Market Index for July is estimated to rise to 27 versus a reading of 26 in June.

Other Potential Market Movers
- The Fed’s Hoenig speaking, weekly retail sales reports, (AMAT) Analyst Meeting, AG Edwards E&P Conference and SEMICON West could also impact trading today.

BOTTOM LINE: Asian indices are slightly lower, weighed down by insurance 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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