Morning Update

"New discoveries in science will continue to create a thousand new frontiers for those who still would adventure." - Herbert Hoover

Morning News of Note:

• WMT: Wal-Mart to Nearly Double Number of Stores in China U.S. retailer Wal-Mart Stores Inc. plans to open 42 stores in China by the end of next year, nearly doubling its presence in the country, a senior company official said Monday. Lawrence Lee, Wal-Mart's operations director for eastern China, said the company plans to have 90 outlets in China by the end of 2006 -- up from the current 48, including one in Shanghai that will open Thursday. (Full Story) WSJ
• YHOO: Yahoo Acquires Maker Of 'Widget' Applications Hoping to pave a new path to its popular Web site, Yahoo Inc. has acquired Konfabulator, a tiny software maker that provides a computer platform for monitoring the weather, stock prices and a wealth of other customized information without opening a Web browser. The acquisition, for an undisclosed price, gives Yahoo access to a toolbox of mini-applications - known as widgets - that have built a cult following since Palo Alto, Calif.-based Konfabulator first introduced them for Apple Computer Inc.'s Macintosh in 2002. (Full Story) WSJ
• MOT: Motorola-MOT introduces the Moto Q-FT: Yesterday, MOT introduced a number of new products, including the Moto Q, a mobile communicator powered by MSFT software which is designed to rival RIMM's Blackberry device. The Moto Q device is modelled on the MOT Razr handset design. The Moto Q is expected to come out in Q1 of next year.
• TGT: Target expects July comps to be near the upper end of the planned +4-6% range (58.72 -0.38)
• Yuan: China Won't Revalue Yuan Further for the "Foreseeable Future": In a website statement, the People's Bank of China stated "The notion that the 2 percent revaluation is only an initial adjustment and that the central bank will further adjust the rate in the foreseeable future is wrong. The Chinese Central bank said it wouldn't revalue the yuan again in the "foreseeable future" because companies need time to adjust and the appreciation will help limit the country's trade surplus, according to Bloomberg.

Market Comments: The market opens slightly lower this morning, but has already reversed those early losses and is on the rise. Healthcare stocks look the strongest this am. Pentair (PNR) reported disappointing results, or more specifically offered weak guidance, but I still like the fundamental story there and would use the weakness to add to the stock.

long PNR, WMT