Overnight U.S. Stock News

• June S&Ps this morning are trading +7.40 points higher. The US stock market last Thursday moved higher throughout the day (Dow +2.16%, S&P 500 +2.39%, Nasdaq Composite +2.18%). For the week the S&P 500 Index gained 3.2%. Bullish factors for stock prices last Thursday included (1) the 5.3% gain in General Electric after the world's 3rd largest company by market value was raised to "buy" from "neutral" at Merrill Lynch, (2) the 11.7% rise in Fannie Mae and 9% gain in Freddie Mac after both companies were upgraded to "outperform" from "market perform" at Keefe, Bruyette & Woods, citing the government's actions to increase the companies involvement "in stabilizing the mortgage market" by lowering their surplus capital requirements, (3) the surge in banks and brokerages after an analyst at Punk Ziegel & Co. said "the financial crisis is over" and it is a "once in a generation opportunity to buy," and (4) the 8.8% rally in Nike as the world's largest athletic shoemaker sai d Q3 profit rose to 92 cents a share on higher sales in China and Europe, exceeding analysts estimates of 79 cents a share. Bearish factors for stock prices last Thursday included (1) the larger than expected gain in weekly unemployment claims, (2) the 17% plunge in CIT Group as the largest independent US commercial finance company had to draw on its $7.3 billion emergency line of credit after being shut out of short-term debt markets, and (3) the 29% drop in Borders Group as the 2nd largest US bookstore chain suspended its dividend and announced the company may sell itself after losing market share to Wal-Mart and online retailers.

   

• Bank of America (BOA) may be active to the downside this morning after an analyst at Punk Ziegler and Co. predicted the 2nd biggest US bank by assets may take a record $6.5 billion provision in Q1 to cover possible future losses in its home equity and mortgage portfolios.

   

• Bankrate Inc. (RATE) may be active this morning as an article in Barron's over the weekend cited a Needham & Co. analyst predicting the conpany's stock price may rise as much as 25% to $60 in the next year as consumers seek lower interest rates.

   

• Best Buy (BBY) may be active this morning as an article in Barron's over the weekend said the stock may rise 23% to $52 once investors overcome fears of how the company would fare in a recession.

   

• HCP Inc. (HCP) rallied 3.6% in after-hours trading last Thursday after the largest US health-care real-estate investment trust will replace Commerce Bancorp in the S&P 500 Index.

   

• Lehman Brothers (LEH) may be active this morning as the brokerage was cut to "perform" from "outperform" at Oppenheimer citing a "protracted challenging capital markets enviroment.

Today's U.S. Market Focus

• June 10-year T-notes this morning are trading -15.5 ticks lower on the higher US equity market. June T-notes last Thursday moved higher and closed the abbreviated session up +6.5 ticks at a contract high settlement. Bullish factors for T-note prices last Thursday included (1) the larger than expectd increase in weekly initial unemployment claims (+22,000 to 378,000 versus expectations of +4,000 to 357,000 and continuing claims +32,000 to a 3-1/2 year high of 2.865 mln), (2) concerns that the credit crunch is deepening as CIT Group, the largest independent US commercial finance company, fell victim to the freeze in short-term credit markets and had to draw on its $7.3 billion of emergency credit lines after credit-rating downgrades left it unable to finance itself with commercial paper and its CEO said the "protracted disruption" may force the company to sell assets, and (3) the flattening of the yield curve as investors are betting on lower inflation as the economy sl ows and moving further out on the curve in search of yield.

   

• The dollar this morning is trading at a 1-week high with the dollar/yen +0.27 yen and the euro/dollar -0.01 cent. The dollar index last Thursday settled with decent gains. Bullish factors for the dollar last Thursday included (1) the dollar's strength against the world's commodity currencies i.e., Canada, Australia, South Africa, as prices of commodities tumbled on world-wide liquidation late last week of long commodity positions on speculation the global economy is slowing, and (2) the slightly better than expected manufacturing index for Mar in the Philadelphia area. Bearish factors for the dollar last Thursday included (1) the larger than expected jump in weekly unemployment claims, and (2) the rise in German producer prices in Feb to a 14-month high.

   

• May crude oil prices this morning are trading down -$0.71 a barrel and May gasoline is trading -0.73 cents a gallon. May crude oil prices last Thursday continued last Wednesday's sell-off and closed down -$0.70 a barrel at a 2-week low although May gasoline closed up +3.68 cents a gallon. May crude has now sold-off -$11.70 (-10%) from last Monday's contract high of $110.35 a barrel. Bearish factors for crude oil prices last Thursday included (1) the rally in the dollar, (2) overall commodity price weakness as most commodities sold-off last Wednesday and Thursday on fund profit-taking and on fears a global economic slowdown will crimp demand for most commodities, and (3) the prediction by Goldman Sachs that crude oil prices are likely to fall toward $90 a barrel this spring as commodities are underging "cyclical weakness" and fundamentals will reach their "weakest point" in April as economic conditions and high prices weigh on demand. Bullish factors for crude oil pr ices last Thursday included (1) a possible strike by oil workers in Nigeria which would threaten Nigerian production of 2.04 mln bbl of crude oil per day, and (2) the rise in gasoline prices after gasoline inventories in the latest DOE inventory report declined for the 1st time in 19 weeks

Today's U.S. Earnings Reports

Earnings reports (confirmed releases for companies with market caps above $10.0 bln listed by mkt cap): WAG-Walgreen (BEST earnings consensus $0.67 per share), AMB-AMB Property (.54), TIF-Tiffany & Co. (1.21), SONC-Sonic Corp. (.15)

insert.a.chart.WAG

Global Financial Calendar

Monday 3/24/2008
United States
1000 ET	Feb existing home sales expected –0.8% to 4.85 mln, Jan –0.4% to 4.89 mln.
1000 ET	Fed TAF auction of $50 bln.
1300 ET	Weekly 3-mo and 6-mo T-Bill auctions.
n/a	Treasury announces amounts of 2-yr and 5-yr T-notes to be auctioned (previous $26 bln 2-yr and $16 bln 5-yr).
France
n/a	Markets closed for Easter Monday Holiday.
Germany
n/a	Markets closed for Easter Monday Holiday.
United Kingdom
n/a	Markets closed for Easter Monday Holiday.

Morning Quote Board

Morning Quotes (ET)	Last	Chg	%chg	Updated
US Stock Futures
S&P (Globex) (M8)	1332.10	7.40	0.56%	07:16:20
DJIA (CBOT) (M8)	12379	51	0.41%	07:16:20
European Stocks
Europe DJ Stoxx 50	2941.32	0.00	0.00%	3/20/2008
London UK FTSE Index	5495.20	0.00	0.00%	3/20/2008
German Dax Index	6319.99	0.00	0.00%	3/20/2008
French CAC 40 Index	4533.72	0.00	0.00%	3/20/2008
Asian-Pacific Stocks
Japan Nikkei Index	12480	-2	-0.02%	03:00:15
Hong Kong Hang Seng	21108	0	0.00%	3/20/2008
China CSI 300 Index	3857	-181	-4.48%	03:01:12
Taiwan TAIEX Index	8865	340	3.99%	01:46:00
Australian S&P 200	5127.5	0	0.00%	3/20/2008
Singapore Str. Times	2927.79	102.88	3.64%	05:10:02
South Korea KOSPI 200	211	1.31	0.62%	02:01:50
Bombay Sensex 30	15289	294.57	1.96%	06:28:13
Karachi KSE-100	15182	188	1.25%	05:15:43
US Interest Rates
10yr T-notes (CBT)(M8)	119.110	-0.155	-0.40%	07:16:58
Cash 10yr T-note Price	101.040	-0.085	-0.26%	07:26:31
Cash 10yr T-note Yield	3.363	0.030	0.89%	07:26
5yr T-note (CBT)(M8)	114.090	-0.125	-0.33%	07:16:18
Cash 5yr T-note Price	101.145	-0.090	-0.28%	07:26:31
Cash 5yr T-note Yield	2.435	0.060	2.53%	07:26
30-yr T-bond (CBT)(M8)	120.19	-0.12	-0.31%	07:15:33
Cash 30yr T-bond Price	103.000	-0.210	-0.63%	07:26:31
Cash 30yr T-bond Yield	4.198	0.038	0.91%	07:26
Eurodollars (CME)(M8)	97.700	-0.050	-0.05%	07:07:51
Eurodollars (CME)(U8)	97.795	-0.070	-0.07%	07:07:51
Asian & European Rates
10-yr JGBs (TSE) (M8)	140.65	-0.25	-0.18%	02:00:00
EuroyenTibor(SGX)(M8)	99.215	-0.040	-0.04%	06:50:15
Bunds (Eurex) (M8)	117.55	0	0.00%	02:21:25
Euribor (Eurex) (M8)	95.625	0	0.00%	02:21:25
UK Gilts (Liffe) (M8)	111.83	0	0.00%	3/20/2008
Short Stlg (Liffe) (M8)	94.45	0	0.00%	3/20/2008
Forex
US Dollar/Japanese Yen	99.84	0.27	0.27%	07:26:55
EuroFX / US Dollar	1.5442	0.0010	0.10%	07:26:56
SwissFranc/US Dollar	1.0134	0.0041	0.41%	07:26:55
British Pound (per USD)	1.9844	0.0024	0.24%	07:26:40
Canadian Dlr (perUSD)	1.0266	0.0031	0.31%	07:26:44
Yen (Globex) (M8)	1.0055	-0.0132	-1.32%	07:16:49
Euro FX (Globex) (M8)	1.5377	0.0016	0.10%	07:16:57
SwissFranc (Globex)(M8)	0.9865	-0.0036	-0.36%	07:16:33
British Pound(Glbx)(M8)	1.9706	0.0015	0.08%	07:17:02
Canadian$ (Globex)(M8)	0.9726	0.0024	0.25%	07:16:55
Commodities
Gold (Comex) (J8)	919.8	-0.2	-0.02%	06:56:24
Copper (Comex) (K8)	359.0	1.7	0.46%	06:48:48
Crude Oil (Nymex) (K8)	101.10	-0.74	-0.73%	06:57:01
Gasoline (Nymex) (K8)	260.5	-0.73	-0.28%	06:54:19
Heating Oil(Nymex)(K8)	289.43	-1.21	-0.42%	06:56:14
NaturalGas(Nymex)(K8)	9.118	-0.022	-0.24%	06:28:21