Thursday, December 20, 2007

Friday Watch

Late-Night Headlines
- MBIA Inc.(MBI) has announced that in response to media and other inquiries received as a result of information the Company posted on December 19, 2007 on its Web site relating to its collateralized debt obligation exposure, the Company is issuing the following statement: The inflation posted on December 19,2007 discloses no additional Multi-Sector CDO exposure. MBIA discussed its exposure to CDO transactions with inner CDOs during a conference call for investors on August 2, 2007. The stock surged 11% in after-hours trading.
- Toshihiko Fukui’s final act as governor of the Bank of Japan may be to cut borrowing costs for the first time in more than six years.
- Sharp Corp., Japan’s largest maker of liquid-crystal displays, rose the most in two weeks in Tokyo trading after a report said Toshiba Corp. may buy its LCD panels.

NY Times:
- Genentech(DNA) appears to have resolved a dispute with ophthalmologists that will allow its drug Avastin to continue to be used to treat eye diseases, both sides said.
- Research In Motion(RIMM) on Thursday saw earnings more than double for its fiscal quarter amid continued strong demand for the company’s BlackBerry line of smart-phone devices.
- NetSuite CEO: Ellison played critical role. Buy Nelson says software on-demand marks changing of the guard in industry.
- If you’re a contrarian, you’ll probably like Eastman Kodak(EK), which is currently a pariah on the Street.
- The FCC’s auction of wireless spectrum is swarming with participants, some of which you might not expect – including Chevron(CVX) and Vulcan’s Paul Allen.
- Record Online Sales in Britain. Christmas came early to online retailers as Internet sales have skyrocketed more than 65% higher than during last year’s holiday period.
- Toy makers close in on safety plan. Group representing companies hopes to get regulators’ OK on tougher testing measures.
- CEO Interview: John Riccitiello, Electronic Arts(ERTS).

- Starbucks-Dunkin’ faceoff may stir market share in hot industry.

- Washington Mutual(WM) said on Thursday it is cooperating with a SEC inquiry into the handling and reporting of mortgage loans that may have been based on inflated home appraisals.

China Securities Journal:
- China’s economy may expand 10.9% next year and inflation may rise 4.5%, the central bank’s research bureau forecast in a report today.

Late Buy/Sell Recommendations

- In general, we garnered little new from Micron’s(MU) earnings report. We maintain our generally positive view, therefore, predicated on capital spending declines, 200mm decommissioning and NT price stabilization. We note that Micron did point to above seasonal demand conditions for CY1Q08, echoing commentary from other parts of the supply chain. This bodes well for Intel(INTC), our top idea, where strong demand will support upside to consensus margin for 1Q08 and 2Q08(as inventories prove difficult to build).

Morgan Stanley:
- Reiterated Overweight on (CELG), target $79.

- Reiterated Outperform on (CELG), target lowered to $65.

Night Trading
Asian Indices are +.75% to +1.25% on average.
S&P 500 futures +.14%.
NASDAQ 100 futures +.29%.

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
- (CC)/-.31
- (WAG)/.44

Upcoming Splits
- None of note

Economic Releases
8:30 am EST

- Personal Income for November is estimated to rise .5% versus a .2% decline in October.
- Personal Spending for November is estimated to rise .7% versus a .2% gain in October.
- The PCE Core for November is estimated to rise .2% versus a .2% gain in October.

10:00 am EST
- Final Univ. of Mich. Consumer Confidence for December is estimated at 74.5 versus 74.5 in November.

Other Potential Market Movers
- None of note

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

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