Wednesday, November 07, 2007

Thursday Watch

Late-Night Headlines
- First Solar(FSLR), a Phoenix-based power-module maker, said third-quarter profit soared 10-fold on rising demand for its thin-film technology. First Solar gained as much as 24% in after-market trading.
- Copper fell to an eight-week low on concern that rising inventories are signaling weaker demand for the metal used in pipes and wires.
- China, the world’s second-largest energy users, plans to increase natural gas production by 50% from last year’s levels by 2010.
- Washington Mutual(WM), the largest US savings and loan, fell the most in 20 years after Democratic NY Attorney General Andrew Cuomo said he found a “pattern of collusion” on mortgage appraisals linked to the company.
- Morgan Stanley(MS) said its subprime mortgages and related securities lost $3.7 billion in the past two months, after prices sank further than the firm’s traders expected.

Wall Street Journal:
- More than four million Chinese-made toys sold in the US as Aqua Dots are being recalled after reports that children became seriously ill after swallowing beads containing a chemical that causes a reaction in the body that mimics a date-rape drug’s effect.
- Tax bill has small businesses seeing red. The House’s top tax-writer claims that small business owners would enjoy “overwhelming” relief under a major reform bill he recently introduced. So why are small business advocates underwhelmed – and in many cases downright worried?

- As Oil Nears $100, Look Out Below. Analysts say that if speculators flee the market en masse, prices could drop even more quickly than they’ve risen. Speculators have played a growing role in the oil market in recent years. There are 595 hedge funds that engage in at least some energy trading now, more than triple the 180 funds involved just three years ago. The assets involved in such trading total more than $200 billion, up more than 60% from the beginning of the year.

- Fed officials hint at potential for lower rates.

Late Buy/Sell Recommendations

- Reiterated Buy on (MHS), target $112.
- Upgraded (FWLT) to Buy, target raised to $197.
- Reiterated Buy on (UTHR), raised target to $130.
- Reiterated Buy on (RL), target $85.

Night Trading
Asian Indices are -3.0% to -2.50% on average.
S&P 500 futures -.90%.
NASDAQ 100 futures -1.48%.

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
Rasmussen Business/Economy Polling
CNBC Guest Schedule

Earnings of Note
Company/EPS Estimate
- (BRL)/.72
- (DF)/.15
- (LAMR)/.14
- (URBN)/.24
- (CVC)/-.07
- (CEP)/.46
- (HANS)/.49
- (MMC)/.31
- (GBE)/.08
- (CCU)/.38
- (ENER)/-.07
- (DYN)/.14
- (ROK)/1.06
- (F)/-.47
- (STN)/.41
- (CELL)/.13
- (QCOM)/.53
- (CPKI)/.23
- (HTCH)/.09
- (DIS)/.41
- (CEPH)/.85
- (NVDA)/.36
- (DLB)/.26
- (PCLN)/1.29
- (PSUN)/.13
- (CXW)/.25
- (FORM)/.40

Upcoming Splits
- None of note

Economic Releases
8:30 am EST

- Initial Jobless Claims for this week are estimated to fall to 325K versus 327K the prior week.
- Continuing Claims are estimated to fall to 2560K versus 2588K prior.
- The Trade Deficit for September is estimated to widen to -$58.5 billion versus -$57.6 billion in August.
- The Import Price Index for October is estimated to rise 1.2% versus a 1.0% gain in September.

10:00 am EST
- Preliminary Univ. of Mich. Consumer Confidence for November is estimated to fall to 80.0 versus 80.9 in October.

Other Potential Market Movers
- The Fed’s Bernanke speaking, ECB Policy Meeting, (QLTI) analyst day, (BBI) analyst meeting, (MEI) Investor Day, (BRCM) analyst day, (JDSU) analyst meeting, (CY) analyst meeting, (JNJ) analyst meeting, (ATHR) analyst day, (DNR) analyst meeting, Merrill Lynch Global Energy Conference, Goldman Sachs Industrial Conference, Goldman Sachs Capital Goods Conference and Bank of America Investment Conference could also impact trading today.

BOTTOM LINE: Asian indices are sharply lower, weighed down by financial and automaker stocks in the region. I expect US equities to open modestly lower and to maintain losses into the afternoon. The Portfolio is 75% net long heading into the day.

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