Monday, August 15, 2005

Monday Watch

Weekend Headlines
Bloomberg:
- Wal-Mart Stores said August sales at its US stores open at least a year are rising within its forecast range as food sales outpaced general merchandise for the fifth straight week.
- Delta Air Lines is seeking financing from its lenders that will allow it to keep flying if it declares bankruptcy.
- The US dollar is rising against the euro and yen in Asia on expectations a Treasury Department report today will show international investors increased buying of US assets.
- The role of Islam and how much autonomy to grant various geographical regions remained at issue as Iraqis sought to meet tomorrow’s deadline for drafting a constitution.

Barron’s:
- The number of US residents with diabetes is forecast to rise to more than 30 million in about 20 years from 17 million now, and the cost of treating the disease annually may approach $200 billion by then.
- IPOs of US stocks raised $22 billion, with 113 companies going public through Aug. 9.

New York Times:
- The NHL approved Comcast’s offer to carry two regular-season games per week starting this season.
- The leaders of Iraq’s three main ethnic groups – the Kurds, Shiites and Sunnis – have agreed on a formula to share the country’s oil wealth between the central government and the 18 regional provinces.
- Americans have resorted to more creative ways to get around rising gas prices such as using Web sites that keep track of the cheapest prices or showing up for free gas giveaways.
- Increasing corruption among Russian government officials during Vladimir Putin’s presidency is now seen as part of the cost of doing business in the country.

LA Times:
- Tighter enforcement along the border with Mexico has caused a shortage of farm workers in California’s Central Valley.

Washington Post:
- Travelers will no longer have to pull their shoes off at airport security checkpoints under rule changes being considered by the Homeland Security Department.
- Iraqi Sunni Muslims battled insurgents to defend their Shiite neighbors yesterday in Ramadi, a development that may signal increasing resistance to foreign-born terrorists such as Abu Musab al-Zarqawi.

Time Magazine:
- Iran has forged ties with some militant and insurgent groups in Iraq and is funding Islamic fundamentalist politicians there as it seeks to build influence.

Financial Times:
- Lenovo Group Ltd. will use the Think brand on its high-end products.

The Mail on Sunday:
- Wal-Mart Stores has held talks with Carrefour SA that might lead to a takeover bid for the French supermarket owner.

Weekend Recommendations
Bulls and Bears:
- Had guests that were positive on SNY, INMD, DELL, mixed on MDT and negative on BIDU.

Forbes on Fox:
- Had guests that were positive on AMR, DIS, OKE and mixed on APA, XOM, SJM.

Cashin' In:
- Had guests that were positive on XMSR, SIRI, AKAM, MNT, TSRA, UTSI, mixed on DYN and negative on BIDU, SBSA.

Cavuto on Business:
- None of note

Barron's:
- Had positive comments on IMAX, VNO, JNJ, BXP, PXD and AVB.

Goldman Sachs:
- Reiterated Outperform on A.
- Reiterated Underperform on PFG.

Night Trading
Asian indices are -.50% to +.25% on average.
S&P 500 indicated -.01%.
NASDAQ 100 indicated +.06%.

Morning Preview
US AM Market Call
NASDAQ 100 Pre-Market Indicator/Heat Map
Pre-market Commentary
Before the Bell CNBC Video(bottom right)
Global Commentary
Asian Indices
European Indices
Top 20 Business Stories
In Play
Bond Ticker
Daily Stock Events
Macro Calls
Rasmussen Consumer/Investor Daily Indices
CNBC Guest Schedule

Earnings of Note
Company/Estimate
A/.26
LOW/1.02
SNIC/.14

Upcoming Splits
None of note

Economic Releases
8:30 am EST
- Empire Manufacturing for August is estimated to fall to 18.5 from 23.9 in July.

9:00 am EST
- Net Foreign Security Purchases for June are estimated to rise to $64.5B versus $60.0B in May.

1:00 pm EST
- The NAHB Housing Market Index for August is estimated at 70 versus a reading of 70 in July.

BOTTOM LINE: Asian Indices are mostly lower as record energy prices pressure exporters in the region. I expect US stocks to open mixed as economic optimism offsets high energy prices. The Portfolio is 50% net long heading into the week.

No comments: