Monday, November 05, 2007

Tuesday Watch

Late-Night Headlines
- North Korea started disabling its nuclear program under the supervision of US inspectors, a State Department spokesman said.
- The falling dollar isn’t cause for alarm and is part of a “global rebalancing process,” according to David Rosenberg, chief North American economist at Merrill Lynch(MER). “The dollar is no lower today than it was in 1997 – we don’t remember that being a particular Armageddon-type time period,” Rosenberg said.
- Former Fed Chairman Greenspan said the US currency isn’t likely to weaken further against the euro, though over the long term it will fall against Asian currencies.
- Ltd. more than doubled on its first day of trading in Hong Kong, pushing its market value past South Korea’s NHN Corp. to become Asia’s second-biggest Internet company after Yahoo Japan Corp.
- Hedge-fund managers should toughen internal rules for valuing securities and preventing insider trading while giving clients more information about investment risks, according to the industry’s main US lobbying group. The Managed Funds Assoc., whose members include SAC Capital and DE Shaw, called in a new report today for “significantly heightened standards” for preventing trading abuses and preparing for financial crises.
- China is likely to increase gold output by 8% this year, overtaking the US as the world’s second-biggest producer and challenging South Africa’s century-long dominance.
China may become a net exporter of stainless steel next year as output rises faster than demand growth, said Baoshan Iron & Steel, the nation’s second-largest producer of the alloy. Rising output from China, which overtook Japan as the world’s biggest stainless steelmaker last year, may prolong a domestic glut until at least 2010, the China Special Steel Enterprise Association said yesterday.

Wall Street Journal:
- In a sign of the gradual recovery of the corporate loan market, Wall Street investment banks plan to launch on Wednesday an offering of up to $10 billion in loans for Chrysler LLC’s automotive business.

New York Times:
- The Bush administration on Tuesday will propose a significant expansion of the authority of the federal drug and consumer product safety agencies to inspect and certify imports, White House and other administration officials said Monday.

- Growth Led Value Stock Funds For Solid Gains In Volatile Month.

- Airlines improve on-time performance in September.

Commercial Times:
- Google Inc.(GOOG) has orders 1 million mobile phones from High Tech Computer Corp. Mobile phones using its operating system will be available by the second half of next year.

Late Buy/Sell Recommendations

- Reiterated Buy on (GILD), target $51.

Night Trading
Asian Indices are unch. to +1.25% on average.
S&P 500 futures +.29%.
NASDAQ 100 futures +.25%.

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
- (CTSH)/.31
- (ADM)/.61
- (EXPD)/.34
- (JOE)/.10
- (THC)/-.06
- (ISE)/.52
- (JEC)/.65
- (VLO)/1.36
- (EMR)/.75
- (EP)/.22
- (BTU)/.32
- (LEA)/.17
- (TAP)/.93
- (RUTH)/.08
- (BMC)/.42
- (CHK)/.61
- (MTZ)/.19
- (CAR)/.66
- (ONXX)/-.21
- (GBX)/.69
- (PDLI)/.14
- (PSUN)/.13
- (MM)/1.06
- (GLBC)/-1.57
- (NILE)/.18
- (AES)/.28
- (ZOLT)/.23
- (PFGC)/.38
- (GBE)/.08
- (FMCN)/.43

Upcoming Splits
- (ATU) 2-for-1

Economic Releases
- None of note

Other Potential Market Movers
- The Fed’s Bernanke speaking, weekly retail sales reports, (FLEX) analyst meeting, (LLL) investor conference, (SPWR) analyst meeting, (DECK) analyst meeting, (CCJ) analyst meeting and (STR) analyst meeting could also impact trading today.

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

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