Monday, June 07, 2004

Monday Watch

Earnings of Note

RIMM 2-for-1

Economic Data
Consumer Credit for April estimated at $6.0 billion versus $5.7 billion in March.

Weekend Recommendations
Forbes on Fox had guests that were positive on SU, PRU and mixed on HMA. Bulls and Bears had guests that were positive on MWY, CNA, MEE, CNX, ACI, mixed on PFE, JNJ, ACN, VAR, DIS, XOM, EAT and negative on JNPR, AMAT and TMA. Cashin' In had guests that were positive on WWU, DGX, MAR, YHOO and mixed on TOM. Louis Rukeyser's Wall Street had guests that were positive on WYE, VIA, ACI, CECO, SPLS, JEC, PFE, TEVA and AIG. Wall St. Week w/Fortune had guests that were positive on WTW, G, TOL, WCI, PHM, ATH, SGEN, LEA, EADS, BAC, PRU, SUNW and NEM. Barron's had positive columns on KRB, LAB and CEG.

Weekend News
Wipro, India's third-largest software services company, plans to buy a company in the U.S., the Economic Times reported. Alcatel SA, the world's largest maker of broadband Internet equipment, sees the beginning of a rebound and expects its markets to expand faster than the economy, Le Figaro reported. Former U.S. President Ronald Reagan, who championed shrinking government at home and ending communism abroad, died after a lengthy struggle with Alzheimer's disease, ABC news reported. The U.S. agreed to South Korea's proposal on a plan to end North Korea's nuclear weapons program, Yonhap news reported. Militants loyal to al-Sadr started withdrawing yesterday from the Iraqi cities of Najaf and Kufa, where they have been fighting U.S. forces since April, the New York Times reported. Abbott Labs may take in $2 billion in sales from its Norvir AIDS medicine in the next 10 years, the Chicago Tribune reported. U.S. armed forces recruitment hasn't been affected by the conflict in Iraq and the recruiters are close to achieving their annual quotas, the LA Times said. Speculation that General Mills might be taken over by Nestle is probably wrong, the Wall Street Journal reported. MGM Mirage's $7.65 billion bid for rival casino company Mandalay Resort Group is an attempt to gain dominance over the Las Vegas Strip, Bloomberg reported. Experimental medicines from Pfizer, Genentech and Onyx Pharmaceuticals may offer new weapons for kidney-cancer patients who currently have few treatment options, Bloomberg reported. ImClone Systems' Erbitux medicine helped patients with head and neck cancers live twice as long as those who received the standard treatment in a recent study, Bloomberg reported. Texas Instruments won its first order from Samsung Electronics for a chip that runs cameras and video players in mobile phones, Bloomberg said.

Late-Night Trading
Asian indices are sharply higher, +1.0% to +3.0% on average.
S&P 500 indicated +.43%.
NASDAQ indicated +.41%.

BOTTOM LINE: I expect U.S. stocks to open higher in the morning on a delayed positive reaction to Friday's employment report, declining energy prices, strength in Asia, positive news in the fight against cancer, no significant terrorist attacks over the weekend and continuing improvements in Iraq. The Portfolio is 125% net long heading into tomorrow.

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