Tuesday, May 25, 2010

Wednesday Watch

Evening Recommendations
  • Reiterated Buy on (AZO), raised estimates, boosted target to $224.
  • Reiterated Buy on (CVS), target $40.
  • Reiterated Buy on (JCP), target $40.
Night Trading
  • Asian indices are +.25% to +1.25% on average.
  • Asia Ex-Japan Investment Grade CDS Index 160.50 +2.5 basis points.
  • S&P 500 futures +.08%.
  • NASDAQ 100 futures +.18%.
Morning Preview Links

Earnings of Note
  • (TOL)/-.20
  • (AEO)/.17
  • (DBRN)/.57
  • (NTAP)/.43
  • (RUE)/.19
  • (JAS)/.44
  • (PAY)/.26
  • (FRED)/.20
Economic Releases
8:30 am EST
  • Durable Goods Orders for April are estimated to rise +1.3% versus a -1.3% decline in March.
  • Durables Ex Transports for April are estimated to rise +.5% versus a +2.8% gain in March.
10:00 am EST
  • New Home Sales for April are estimated to rise to 425K versus 411K in March.
10:30 am EST
  • Bloomberg consensus estimates call for a weekly crude oil inventory build of +250,000 barrels versus a +162,000 barrel gain the prior week. Gasoline supplies are estimated to rise by +300,000 barrels versus a -294,000 barrel decline the prior week. Distillate inventories are expected to rise by +500,000 barrels versus a -979,000 barrel decline the prior week. Finally, Refinery Utilization is estimated to rise by +.03% versus a -.48% decline the prior week.
Upcoming Splits
  • (EW) 2-for-1
Other Potential Market Movers
  • The Fed's Lacker speaking, Fed's Evans speaking, weekly MBA mortgage applications report, $40 Bln 5-Year T-Note Auction, Barclays Capital Communications/Media/Tech Conference, Citi Healthcare Conference, BofA Merrill Services Conference, Janney Montgomery Scott Consumer Conference, Stephens Spring Investment Conference, UBS Oil/Gas Conference, Kaufman Cloud Computing Conference, (ITRI) Investor Day, (NWL) Analyst Day, (VQ) Analyst Meeting, (ARW) Analyst Meeting, (FSR) Investors Day, (SFG) Investor Meeting, (TMO) Analyst Meeting, (NTRS) Investor Conference, (YHOO) Investor Day and the (EW) Analyst Reception could also impact trading today.
BOTTOM LINE: Asian indices are mostly higher, boosted by commodity and shipping shares in the region. I expect US stocks to open modestly higher and to weaken into the afternoon, finishing mixed. The Portfolio is 75% net long heading into the day.

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