Tuesday, September 20, 2005

Oil eases back

"The trouble with our times is that the future is not what it used to be." - Paul Valery

Morning News of Note:
  • MSFT: Europe Considers New Charges Against Microsoft Almost 18 months after the European Commission ruled that Microsoft had abused its dominance in the software market, Europe's antitrust authority is considering opening new cases against the company, Neelie Kroes, the competition commissioner, said Monday. The commission ruling resulted in a fine of 497 million euros against Microsoft and an order to change the way it sells software in Europe. (Full Story) NY Times
  • AAPL: Apple to introduce new hardware at Apple Expo Apple Computer is expected to make at least one hardware-related product announcement during this week's Apple Expo, despite the company's decision to cancel its opening keynote presentation at the Paris show, AppleInsider has learned. Based on previous reports, the company appears ripe to update either its PowerBook G4 laptop line, its Power Mac G5 line, or both product lines (Full Story) Apple Insider
  • Housing Starts: U.S. Aug. Housing Starts May Fall to 2.025 Mln Pace Builders probably broke ground on homes at a rate of 2.025 million units a year in August, on pace to surpass the 26-year-high set in 2004, economists said before a U.S. government report today. Housing starts probably fell 0.8 percent from a 2.042 million annual rate in July, based on the median estimate of 55 economists surveyed by Bloomberg News. (Full Story) Bloomberg
  • Coal: BTU sees price of steam coal may stay at current levels around $60/ton and met coal $100/ton for 3yrs; CFO said co may buy 20%-49% stakes in Chinese coal mines and assets; said co sees 20yrs of cont growth in energy sector in China; Chiense demand driven by urbanization and industrialization
  • GOOG: Google to bid on AOL? - CNET News.com: According to the CNET, citing analyst, Google could try to bid for America Online to preempt a Microsoft (MSFT) takeover and protect the $380m in revs Google gets from its biggest partner. "We believe it is entirely possible that Google could consider making a bid for AOL as well," Lauren Rich Fine, of Merrill Lynch, wrote in a report on the implications of an AOL-Microsoft Network deal. "This would certainly protect Google's revs from AOL as well as enable Google to keep 100% of the search ad revs as well as gain a significant amount of content."


Market Comments: Taking its cue from oil prices, the market opened higher this morning as crude prices dropped back to around $66. All eyes will still be on Hurricane Rita to see if it hits the Gulf.

Goldmand Sachs (GS) and Circuit City (CC) both reported strong earnings this morning, with the former helping to lift the financial sector. Chip stocks are also bouncing back (+1.0%) in early trading. Don't expect any big moves until after the Fed meets today. The market will be closely scrutinizing the language the FOMC uses in its statement to guage if the Fed intends to pause in its rate hike cycle, and if it acknowledges Katriana-related weakness.

long GOOG

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