Monday Watch

Weekend Headlines
Bloomberg:
- Citigroup Inc.(C) Chairman and CEO Charles Prince resigned after $6.5 billion of writedowns and losses from the credit markets and shares of the biggest US bank slumped to a four-year low.
- Ford Motor(F) and the union representing its 58,500 US factory workers reached a tentative contract agreement, the United Auto Workers said.
- Iraq will take “visible measures” to crack down on Kurdish guerrillas to dissuade Turkey from launching military operations against rebel bases in the country’s north, Iraqi Foreign Minister Hoshyar Zebari said.
- The hedge-fund industry is grappling with its first shakeout in a decade as investors increasingly recoil from startups considered susceptible to the toxic shocks of this year’s credit markets. New hedge funds are opening at the slowest pace since 2003 with almost all of the $164 billion of new investments going to managers with proven records, data compiled by Chicago-based Hedge Fund Research Inc. show.
- Former Prime Minister Benazir Bhutto accused President Pervez Musharraf of staging a “second coup” in Pakistan by imposing emergency rule and said judges, lawyers and opposition parties will protest the move today.
- Berkshire(BRK/A) Profit Surges 64% on Sale of PetroChina(PTR) Stake.

Wall Street Journal:
- Ford Motor(F) told labor leaders at its Jaguar and Land Rover units to be ready to meet potential buyers as soon as Nov. 20 after receiving three “firm bids.”
- With two months left in 2007, the winners and losers on Wall Street are shaping up. Technology stocks have taken the lead down the stretch. At the back of the pack: financials.

NY Times:
- Citigroups’s(C) board is highly likely to name Robert E. Rubin, the former Treasury secretary and an influential adviser to its embattled leader, as its interim chairman at an emergency meeting today, according to a person briefed on the situation.
- Why Google(GOOG) Turned Into a Social Butterfly.
- Wireless Workplaces, Touching the Sky.

CNBC.com:
- American International Group(AIG) shareholder and former CEO Maurice “Hank” Greenberg said on Friday he was considering “strategic alternatives” for the world’s largest insurer.
- Fink Considers Merrill Lynch(MER) CEO Position.

MarketWatch.com:
- Citigroup(C) shares open 5.8% higher in Tokyo debut.
- Excess body weight, even just a little, increases your risk of cancer, according to a study released this week by the American Institute for Cancer Research. But staying active and following six rules for good eating can turn the odds back in your favor, researchers says.
- Legg Mason’s Miller: Buy financials, housing stocks. Fund manager says today’s battered sectors are market’s next leaders.

IBD:
- 166,000 New Jobs Created Last Month, Double Expectations.
- Living In a Networked World. Video is a voracious consumer of network capacity. YouTube – and other “Web 2.0”-oriented sites – are driving demand for more gear to handle that growing traffic.

Time:
- Invention Of the Year: The iPhone.

Zacks.com:
- Third-quarter growth remains strong thus far and has held above double digits for the past week. The median company has reported growth of 11.1%. The surprise ratio is at 2.73:1 and the median surprise is just under 3%. At last report, these three metrics stood at 11.8%, 2.68:1, and 3% respectively. Every sector currently boasts more positive surprises than negatives and the surprise ratio has continued its steady rise over the past week.

Business Week:
- Oil or gas? Prices may lead to switch. With his furnace sputtering its final gasps, Charles Comito decided its was time to trade in his heating oil system for natural gas this year. The switch cost $4,400, a price he says will be worthwhile.

CNNMoney.com:
- Big solar power plant planned for California’s central coast.

Oil & Gas Journal:
- Doubling of oil recovery efficiency seen possible.

Financial Times:
- Britons may buy as many as 200,000 Apple Inc.(AAPL) iPhones over Christmas and the New Year, citing Telefonica SA’s 02 unit, one of the retailers.
- Democrats wake up to being the party of the rich. A legislative proposal that was once on the fast track is suddenly dead. The Senate will no consider a plan to extract billions in extra taxes from mega-millionaire hedge fund managers.

TimesOnline:
- Saudi Arabia is hub of world terror. The desert kingdom supplies the cash and the killers. Saudis make up half of foreign fighters in Iraq.

Reuters:
- Google Inc.(GOOG) will announce its mobile phone strategy next week, including an operating system and deals with several service providers and handset makers.
- Oil prices fell on Monday, pulling back from previous session’s 2.5% surge, as easing tensions in the Middle East encouraged investors to take profits.
- Canada’s CIBC said on Sunday it would sell a major part of its US capital markets business to Oppenheimer Holdings as it focuses on its core operations.

Mainichi:
- Toyota Motor(TM) plans to develop robots to help with household chores and nursing care as part of its “Global Vision 2020” plan unveiled yesterday. Toyota aims to make the home-use robot business a center of future growth in light of Japan’s aging society and the growing prominence of women in society.

MEED:
- Arab Gulf states offered to provide enriched uranium to Iran, aiming to resolve the international standoff over the country’s nuclear program, citing a top Saudi official. Under the plan, Saudi Arabia, Bahrain, Kuwait, Oman, the United Arab Emirates and Qatar will set up a nuclear enrichment plant in a “neutral” country, citing Saudi Arabian Foreign Minister Prince Saud Al-Faisal.

Weekend Recommendations
Barron's:
- Made positive comments on (NTRS), (GRMN), (AAPL), (GOOG), (RIMM), (AKAM) and (KCP).
- Made negative comments on (DPTR), (BIDU) and (MAT).

Citigroup:
- Reiterated Buy on (RIMM), Top handset pick.
- Reiterated Buy on (BRCM), target $49.
- Reiterated Buy on (INTC), target $33. Despite some suggestion that Intel would build inventory in 4Q07, we now view this as an unlikely scenario. Essentially, at the mid-point of Intel’s revenue guidance, we now expect inventories to decline q/q, marking the 3^rd quarter in a row of falling inventories to decline q/q, marking the 3^rd quarter in a row of falling inventories.
- Reiterated Buy on (ATVI), raised estimates, target $29.

Morgan Stanley:
- Reiterated Overweight on (ERTS), raised estimates.

Night Trading
Asian indices are -1.50% to -1.0% on avg.
S&P 500 futures -.42%.
NASDAQ 100 futures -.38%

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/Estimate
- (BKC)/.33
- (MVL)/.29
- (CAH)/.87
- (DNB)/1.01
- (DIVX)/.12
- (SIE)/.59
- (CUZ)/.08
- (FST)/.55
- (CECO)/.23
- (ATVI)/-.02
- (WMS)/.19
- (SYY)/.41
- (JAVA)/.03

Upcoming Splits
- (ATU) 2-for-1

Economic Data
10:00 am EST
- ISM Non-Manufacturing for October is estimated to fall to 54.0 versus 54.8 in September.

Other Potential Market Movers
- The (NUS) analyst meeting, JPMorgan SMid Cap Conference, CIBC Healthcare Conference and UBS Building Conference could also impact trading today.

BOTTOM LINE: Asian indices are lower, weighed down by commodity and financial shares in the region. I expect US stocks to open modestly lower and to rally into the afternoon, finishing mixed. The Portfolio is 100% net long heading into the week.