Monday, November 26, 2007

Tuesday Watch

Late-Night Headlines
- Citigroup(C), the US bank searching for a new CEO as it faces at least $8 billion of writedowns, agreed to sell as much as 4.9% of the company to the government of Abu Dhabi for $7.5 billion.
The yen declined against all of the world’s 16 most-active currencies after Abu Dhabi Investment Authority agreed to invest in Citigroup(C), prompting investors to buy higher-yielding assets with loans from Japan.
- The yen’s gain to a more than two-year high against the dollar may stall, according to a technical indicator some traders use to predict currency movements. The dollar’s 14-day relative strength index to the yen was 26.59 today. A level below 30 signals a reversal in direction. Futures traders also raised their bets to the most in almost three years on the yen to advance against the dollar, suggesting the Japanese currency is vulnerable to a decline.

Wall Street Journal:
- Google Inc.(GOOG) is planning to offer a service that allows people to store files such as word-processing documents, pictures and music files on the Internet company’s hard drives. The service would allow customers to access the files through the Internet, with some storage being offered for free and additional space costing a fee.
- Pardus Capital Management LP, the $3 billion hedge fund that owns stakes in Delta Air Lines(DAL) and UAL’s United Airlines, is seeking their merger, a push that may be winning support from other shareholders.
- Obsessive attention to a company’s financial condition and surrounding Wall Street sentiment is giving mutual fund manager Tim Guinness reason to stick with technology sector stocks.
- The “Bold Bulls” is my name for the three letters that called the end of the bear market after a particularly dramatic down day in early 2003: Index Rx, Marketimer, Profitable Investing. I check in with the Bold Bulls whenever the markets get particularly interesting.

- An auction of wireless airwaves could create a new breed of wireless players that lease network space to upstarts.
- Online retailers hit 4.6 million visitors a minute. Cyber Monday traffic and sales reported at a blistering pace.

- Widgets make a big splash on the Net.
- Sony(SNE), Apple(AAPL) and other tech companies want more computer programmers to write software for their products – even if the programmers aren’t employees.

Financial Times:
- US online retail sales have been growing at better-than-expected rates in the run-up to the holidays, according to Wall Street analysts and internet retailers.

Late Buy/Sell Recommendations

- Reiterated Buy on (MAR), target $62.
- Reiterated Buy on (WSH), target $47.
- Reiterated Buy on (DKS), target $37.

Night Trading
Asian Indices are -1.75% to -.25% on average.
S&P 500 futures +.84%.
NASDAQ 100 futures +.59%.

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
- (JTX)/-.60
- (AEO)/.45
- (TECD)/.60
- (SPLS)/.40
- (DBRN)/.31
- (TLB)/-.23
- (PBY)/.02
- (SMTC)/.21
- (CENT)/.03
- (HDL)/-.20
- (PLL)/.57
- (ADI)/.39
- (MRVL)/.08

Upcoming Splits
- None of note

Economic Releases
10:00 am EST

- Consumer Confidence for November is estimated to fall to 91.0 versus 95.6 in October.

Other Potential Market Movers
- The Fed’s Evans speaking, Fed’s Plosser speaking, weekly retail sales reports, S&P/CaseShiller Home Price Index, Richmond Fed Manufacturing Index, CSFB Tech Conference, Piper Jaffray Healthcare Conference, Friedman Billings Investor Conference, Lazard Healthcare Conference, JPMorgan Homebuilding & Building Products Conference, CIBC Mid & Small Cap “Best Ideas” Conference and Merrill Lynch Health Services Conference could also impact trading today.

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

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