Monday, November 12, 2007

Tuesday Watch

Late-Night Headlines
- Investors should bet on a decline in the euro as the European Central Bank may step in and sell its currency to protect exports and economic growth, according to UBS AG.
- Billionaire Carl Icahn’s activist hedge funds posted their first quarterly decline since they opened three years ago because of volatile markets and losses on stocks including WCI Communities(WCI) and Lear Corp.(LEA).
- China’s inflation rebounded to a decade high in October as food prices climbed, adding pressure for the central bank’s sixth interest-rate increase this year.

- The US is evaluating whether existing automobiles can safely handle a greater concentration of ethanol than the 10% currently blended into gasoline, a finding that would boost demand for the biofuel.
- Japan’s economy grew faster than economists forecast in the third quarter as an unexpected increase in consumer spending counters a drop in housing construction.
Japanese bonds gained, pushing 10-year yields to the lowest since February 2006, on speculation central bank Governor Toshihiko Fukui will signal plans to keep borrowing costs unchanged in coming months.
- Indonesia cut its forecast for export growth next year on concern soaring energy prices will cause a global slowdown, sapping demand for commodities including palm oil and tin, Trade Minister Mari Pangestu said.
- Copper prices fell 2.1% in Asia as LME-monitored stockpiles rose to a seven-month high.
- Jonathan Barratt, managing director of Commodity Broking Services, says the slump in copper foreshadows oil rally’s end.
- InterContinental Hotels Group and Wyndham Worldwide executives said they don’t see slower spending by US consumers and higher prices for oil affecting their operations.

Wall Street Journal:
- Predictions of the demise of bond insurers could be premature, particularly if they succeed in securing lifelines from a deep-pocketed insurance salesman in Omaha, Neb.

NY Times:
- Voter Anger May Free Up Energy Bills.
- wants to become a platform like Microsoft’s Windows operating system, a product so popular that it is the foundation for a veritable ecosystem of software developers.

- Large hotel chains are upgrading their TV programming as digital technology expands possibilities and cable-obsessed travelers demand more of what they have at home.
- America crazy about breadbox on wheels called Smart car.

Financial Times:
- Accelerating investment in US railroads’ capacity could come to a halt if proposed legislation to re-regulate many of the railroad’s prices is brought into force, the CEOs of three of the top five US railroads have warned.

Late Buy/Sell Recommendations

- Reiterated Buy on (HEW), target $44.

Night Trading
Asian Indices are -1.50% to +.50% on average.
S&P 500 futures +.40%.
NASDAQ 100 futures +.10%.

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
- (PPC)/1.14
- (FOSL)/.34
- (TJX)/.55
- (HD)/.59
- (WMT)/.67
- (FIG)/.26
- (EXM)/1.01
- (BIG)/.12
- (PBY)/.02

Upcoming Splits
- (MPR) 4-for-3
- (TNP) 2-for-1
- (CRS) 2-for-1
- (APAGF) 4-for-1

Economic Releases
2:00 pm EST

- The Monthly Budget Deficit for October is estimated to widen to -$59.0 billion versus -$49.3 in September.

3:00 pm EST
- Pending Home Sales for September are estimated to fall -2.5% versus a -6.5% decline in August.

Other Potential Market Movers
- The weekly retail sales reports, IBD/TIPP Economic Optimism Index, (TSS) analyst presentation, (MCD) analyst meeting, (AMP) analyst meeting, (ITT) analyst day, Piper Jaffray Global Internet Summit, Deutsche Bank Gaming Forum, Morgan Stanley Global Consumer & Retail Conference, Piper Jaffray Industrial Growth & Business Services Symposium, JMP Securities Healthcare Conference, UBS Global Tech & Services Conference, Goldman Sachs Global Shipping Conference, Bear Stearns SMid Cap Conference and Merrill Lynch Banking & Financial Services Conference could also impact trading today.

BOTTOM LINE: Asian indices are mostly lower, weighed down by commodity stocks in the region. I expect US equities to open modestly lower and to rally into the afternoon, finishing mixed. The Portfolio is 50% net long heading into the day.

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