Stocks To Keep Your Eye On - 07/09/07

· Alcoa (AA), the world's largest aluminum company, kicks off another earnings season on Monday. AA EPS estimate is $ 0.84.

· Homebuilders (BZH, TOL, KBH, MTH, HOV etc.) all had strong days on Friday, many with bullish engulfing patterns. Watch for breakouts in a strong market.

· Intercontinental Exchange Inc. (ICE), in a battle with Chicago Mercantile Exchange Holdings Inc. (CME) for control of the Chicago Board of Trade (BOT), has decided against increasing its offer for CBOT Holdings Inc., according to a published report.

· Shares in Illinois Tool Works Inc (ITW) could rise more than 20 percent in the next year on acquisitions and robust demand for infrastructure projects, Barron's reported in its July 9 issue.

· Package delivery company FedEx Corp. (FDX) could become a target for private equity buyers because of its modest valuation and turnaround potential, Barron's reported in its July 9 issue.

· Watch KMT, DNB, and ARD for long breakouts.

· Watch XEL, O, and DNA for short breakdowns.

-MM