Weekend HeadlinesBloomberg:- The military wing of the Hamas movement that controls the Palestinian government fired rockets into Israel in retaliation for attacks in Gaza yesterday, ending a 16-month truce.
- Finance ministers from the G-8 said the global economy is still “strong” after stocks tumbled around the world.
- The US dollar posted its first weekly rally versus the euro since January as Fed officials made hawkish comments and as investors fled emerging markets for US assets.
- The Australian stock market may end a three-year winning streak because of falling metals prices and rising borrowing costs.
- Treasury investors, who two weeks ago questioned Fed Chairman Bernanke’s resolve in fighting inflation, are giving him a vote of confidence.
- Tropical Storm Alberto, the first named storm of the Atlantic Ocean’s 2006 hurricane season, won’t be windy enough to become a hurricane, forecasters said.
- The number of foreign troops in Iraq will drop to fewer than 100,000 by January and most will have left within 18 months, according to that nation’s national security adviser.
- A more peaceful world and fewer major wars globally led to a decrease in the number of refugees last year to 8.4 million, a 26-year low, according to the United Nations agency that cares for people driven from their homes by wars and natural disasters. The number of refuges declined for the fifth straight year, the UN High Commissioner for Refugees said in a recent report. The agency attributed much of the decline to 752,100 Afghans and 56,200 Iraqis who returned home.
Wall Street Journal:- Banco Bilbao Vizcaya Argentaria SA is considering buying Texas Regional Bancshares(TRBS) to expand its US-Mexico unit, the most profitable.
NY Times:- Job applicants may find their postings on Internet sites offend future employers who have started conducting background checks of prospects on the Web.
Washington Post:- Newt Gingrich, former Georgia congressman and House speaker, may run for the Republican presidential nomination in 2008 if no single Republican candidate has emerged by late next year.
- More immigrants seeking to live in the US are buying US businesses to get “investor visas.”
LA Times:- Los Angeles’s homicide rate has fallen 11% in the first six months of this year.
San Diego Union-Tribune:-
Southern California’s slowing housing sales won’t erode equity gains homeowners have amassed in the past years, citing a report by Harvard University.
Barron’s:- Merrill Lynch’s(MER) Saly Glassman won the No. 1 spot in Barron’s list of the top 100 women financial advisers for her management of $1.05 billion.
Financial Times:- Millions of dollars are being transferred out of traditional tax havens and into states such as Delaware, Nevada and Wyoming in the US where information sharing with tax authorities is less strict.
- Emerging Markets are heading for a “period of vulnerability,” citing Charles Dallara, managing director of the Institute of International Finance.
Der Spiegel:- John Browne, CEO of BP Plc, said it’s “very probable” that oil prices will drop to about $40 a barrel in the medium term, citing an interview. Oil prices of $25 to $30 a barrel are possible “in the very long term,” Brown said.
Mail on Sunday:- Signet Group Plc, the world’s largest jeweler, is in talks with US rival Zale Corp.(ZLC) about a possible $4.2 billion alliance.
Weekend RecommendationsBarron's: - Had positive comments on (LM), (WEBX), (APA), (APC), (XTO), (ELY), (ROLL), (PDCO), (GNTX) and (GRMN).
Night Trading Asian indices are -.75% to unch. on average.
S&P 500 indicated unch.
NASDAQ 100 indicated +.10%.
Morning PreviewUS AM Market CallNASDAQ 100 Pre-Market Indicator/Heat MapPre-market CommentaryBefore the Bell CNBC Video(bottom right)
Global CommentaryAsian IndicesEuropean IndicesTop 20 Business StoriesIn PlayBond TickerDaily Stock EventsMacro CallsRasmussen Consumer/Investor Daily IndicesCNBC Guest ScheduleEarnings of NoteCompany/Estimate- (LEH)1.61
Upcoming Splits- (BECN) 3-for-2
- (CEDC) 3-for-2
Economic Releases2:00 pm EST- The budget deficit for May is estimated to widen to -$39.0B versus -$35.4B in April.
BOTTOM LINE: Asian Indices are mostly lower, weighed down by exporting shares in the region. I expect US stocks to open modestly lower and to rise into the afternoon, finishing mixed. The Portfolio is 75% net long heading into the week.
