To: Smiling Bob who wrote (9178 ) 1/3/2006 9:02:22 AM From: Smiling Bob Read Replies (3) | Respond to of 19256 DOW 10717- will end today little changed at best. Possibly down 20-25 points-Any upmove will quickly see profit-taking- WMT holiday sales will remind WS of where we're heading ---- Stocks Set to Open Higher to Start 2006 Tuesday January 3, 8:30 am ET Stocks Are Set to Open Higher to Start 2006; Fed Minutes Ahead LONDON (AP) -- U.S. stock market futures were surging to a strong start in 2006, with views on the interest-rate cycle right back at the forefront ahead of the release of Federal Open Market Committee minutes. The health-care sector also is likely to draw attention Tuesday after an upgrade of Johnson & Johnson and another biotech pact inked by Wyeth. ADVERTISEMENT Dow Jones futures were recently up 46 points, S&P 500 futures climbed 5 points, and Nasdaq 100 futures rose 6 points. Overseas markets also were bullish, with gains in Europe and Asia markets, though volumes were still on the light side. Tokyo was still shut for a holiday. U.S. stocks had finished 2005 on a bearish note on Friday, with the Dow industrials suffering its first yearly loss since 2002. The dollar was noticeably lower against the euro and the yen ahead of the FOMC release, as well as an expected decline in the ISM December manufacturing survey. One euro recently was worth $1.1886 while a dollar traded at 117.15 yen. Markets will be looking to see whether the Fed, in addition to dropping the word "accommodative" to describe its interest-rate policy, offered up any more clues on how much longer it will ratchet up rates. Front-month crude oil futures were holding above $61 a barrel. While a weekend crisis between Russia and the Ukraine over natural-gas deliveries looks to have abated, the news highlights the fragility of energy supplies, some said. "It does highlight the innate tightness of energy supplies, not only in the U.S. and China but Europe too, and the general dependence on remote and politically uncertain sources of supply," said Roger Richards, an analyst at Dryden Wealth Management. Of companies in focus, Johnson & Johnson, a component of the Dow industrials, was upgraded to overweight from neutral by J.P. Morgan, with the broker expecting 2006 guidance to be a positive catalyst for the stock. Up to seven drugs may be approved or awaiting approval in 2006 to 2007, the broker added. The same broker upgraded Baxter International Inc. to overweight from neutral. Separately, Baxter agreed to license Innovata's Adept adhesion reduction biomaterial for an undisclosed sum. Wyeth has agreed to develop and market antibody-like drugs from privately-held Trubion Pharmaceuticals in a deal worth up to $800 million, The Wall Street Journal reported, citing a Wyeth executive. Wyeth, which signed two biotech pacts in December, will pay $40 million upfront with milestones potentially reaching $800 million, the report said. Wyeth also agreed to take a stake in Trubion if the company goes public, the report said. Outside of the health care sector, Affiliated Computer Services Inc. is reportedly close to selling itself to a consortium of private equity investors for $8 billion in a deal that may close by the end of the week, The New York Times reported. The group is prepared to pay up to $65 a share, the report said. The same newspaper reported that Liberty Media Corp. unit Starz Entertainment will introduce a service to let people download movies from the Internet for $9.95 a month.