Friday Watch

Late-Night Headlines
Bloomberg:
- The cost to protect investment-grade bonds from default fell as dealers started trading a new series of benchmark credit-default swap indexes that replace companies that have dropped below investment grade.
- The yen is falling against the 16 most-active currencies on speculation investors were resuming purchases of higher-yielding assets funded by loans in Japan.
- Microsoft Corp.(MSFT) co-founder Bill Gates is America’s richest individual for the 14^th consecutive year, followed by his friend Warren Buffett, according to Forbes magazine’s 400 Richest Americans list.
- Oracle Corp.(ORCL), the world’s largest software maker, posted a 25% jump in first-quarter profit, beating analysts’ estimates, after sales of new programs rose the most in 10 years.
- Nike Inc.(NKE), the world’s largest athletic-shoe maker, said first-quarter profit rose more than analysts anticipated on higher international sales and a tax gain, causing the shares to rise as much as 4.4%.

Wall Street Journal:
- As Oil Hits High, Mideast Buers Go on a Spree.

NY Times:
- Helped by Generics, Inflation of Drug Costs Slows.
- Viacom Chief’s Remark on Spielberg Stirs a Furor.

CNNMoney.com:
- Congress Is Urged To Limit Response To Mortgage Crisis.
- Bankers marketing the $5 billion loan for First Data Corp.’s(FDC) leveraged buyout have already found more than enough buyers for the deal, people familiar with the situation said Thursday.
- Google(GOOG) at $600 a share? Yes: here’s why.
- How Goldman Sachs defies gravity.

Forbes.com:
- Credit Easing Gives Bond Guarantors Bump.

Financial Times:
- Carlyle agreed on Thursday to sell a 7.5% stake in itself to an arm of Abu Dhabi’s government – the latest US private equity group to bring in a sovereign wealth fund as a big investor.
- A top fundraiser to presidential hopeful Hillary Clinton and other Democratic lawmakers was on Thursday charged with defrauding investors of more than $60 million and violating campaign finance rules.
- The US on Thursday signaled fresh steps to improve liquidity in credit markets and guard against future shocks to the global financial system.

Reuters:
- US mortgage lenders are cutting advertising budgets due to a global credit squeeze, but they are not likely to reduce Internet search marketing anytime soon, executives at search leader Google Inc.(GOOG) said on Thursday.

Guardian:
- Google Inc.(GOOG) is considering entering the UK wireless market after Ofcom, the telecommunications regulator, proposed retrieving more than a third of the 2G mobile phone spectrum used by Vodafone Group Plc and O2 Plc for 22 years to open it for new entrants.

China Daily:
- ZTgame, China’s third-largest online games provider, may sell shares in the US by the end of the year, citing the company’s financial adviser.

Late Buy/Sell Recommendations
Citigroup:
- We attended the Shop.org 2007 Annual Summit in Las Vegas. Attendance was strong, and we had an opportunity to interact with a broad range of suppliers and retailers. Based on the keynote presentations, and discussions with vendors, we found the following key themes & takeaways: 1) E-Commerce Expectations Remain Robust 2) Focus on Basics to Improve Conversion Rates 3) Industry Remains Competitive, More Promotions Expected and 4) No Sign of Consumer Weakness.

Morgan Stanley:
- Reiterated Overweight on (PCLN), target raised to $108.

Business Week:
- Apple Inc.(AAPL) may rise 50% in the next 12 months, citing an analyst. Shares of the maker of iPods and iPhones could reach $211, predicted Eugene Munster of Piper Jaffray.

Night Trading
Asian Indices are -.50% to +.25% on average.
S&P 500 futures -.01%.
NASDAQ 100 futures +.05%.

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
- None of note

Upcoming Splits
- None of note

Economic Releases
- None of note

Other Potential Market Movers
- The Fed’s Warsh speaking, Fed’s Plosser speaking, Fed’s Kohn speaking, Fed’s Mishkin speaking, (SYY) analyst meeting, (AGP) Investor Day, (POOL) Analyst Day and (KMT) Management Meeting could also impact trading today.

BOTTOM LINE: Asian indices are mostly lower, weighed down by automaker and financial 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.