Thread: Market News

Briefing.com:
08:00 am : S&P futures vs fair value: -5.7. Nasdaq futures vs fair value: -12.0. Early indications are pointing to a sharply lower open for the cash market. Google (GOOG) missing expectations for just the second time since its 2004 IPO and Microsoft (MSFT) merely matching forecasts, after a long history of upside surprises, set the negative tone last night and leave investors again questioning the tech sector's optimistic growth prospects.
With the Dow finally closing above 14,000 and logging its 32nd record finish this year, a huge shortfall from Caterpillar (CAT) is also giving investors a reason to take some money off the table. CAT's 5% pre-market plunge more than offsets a 1% early surge in shares of fellow Dow component Citigroup (C) following its record quarter.

SP500 back to 1540

Briefing.com:
2:30 pm : Onward and upward continues to be the mantra in the afternoon session; the bulls, however, still have a long way to go since market breadth remains decidedly bearish. As reflected in the A/D line, decliners on the NYSE hold a more than 3-to-1 edge over advancers while those on the Nasdaq hold about a 2.5-to-1 margin.
The ratio of down to up volume, however, is even more divergent which further dictates the conviction with which sellers feel the market has gotten ahead of itself. All 10 sectors are still under pressure and the day's worst performer continues to be the most influential one of them all, Financials (-1.2&#37.

Briefing.com
Bond Watch: Reaction to Risk Bounces Bonds (BONDX) : The marketplace is starting to take another look at risk, pricing in more vig on issues coming to market while spreads widen. Expectations that the problems in the subprime world are starting to play out in other areas of the financial world, spreading like a rash with hedgers starting to scratch 1st. Bonds reaped the benefits as safe-haven buying stepped up & talk of some being forced out of certain riskier instruments or adding some protection buying bonds. There is the potential for a steep fall off in prices, however, as the recent volatile swings have been on generally spotty volumes so support could be sketchy. The week ahead has a few items that could push prices around some as well as a couple of auctions in the mix. The curve trade worked its way steeper with the 2-10-yr yield spread headed out at 18.3, well within the week's fairly tight range. The dollar retraced some of its losses against the majors but still went out looking severely wounded. Spot gold is benefiting in the meantime all the way up to 683.30 (+5.80) as the buck falls apart while crude oil pulled back a little to 75.57 (-0.35). Next week brings housing & a first look at Q2 GDP & not too much else. The euro is at 1.3822 & the yen is at 121.2450 while the 10-yr yield is at 4.954%. For more bond & economic commentary click here.

08:00 am : S&P futures vs fair value: +5.8. Nasdaq futures vs fair value: +4.3. After selling off across the board Friday, stocks look poised to bounce back this morning. Per usual for a Monday morning, there is some M&A news of note. Transocean (RIG) and GlobalSantaFe (GSF) agreed to a merger of equals valued at nearly $53 bln while United Rentals (URI) agreed to be taken private for $6.6 bln, including the assumption of debt.
S&P 500 futures recently touched their best levels of the morning, though, after Merck (MRK) topped Wall Street expectations and boosted its full-year forecasts. The Dow component is up 4% in pre-market action.

http://biz.yahoo.com/prnews/070723/lam052.html?.v=94

TI Reports 2Q07 Financial Results
Monday July 23, 4:30 pm ET

- TI Revenue Up 7% Sequentially

- EPS of $0.42, Up 20% Sequentially

- Record Gross Margin as Company Progresses Toward Higher Profitability Goals

http://biz.yahoo.com/ap/070723/earns...ress.html?.v=2

American Express 2Q Profit Climbs 12 Percent on Record Card Member Spending

NEW YORK (AP) -- American Express Co. posted a 12 percent jump in its second-quarter profit, the nation's third-largest credit card brand said Monday, fueled by record spending by card members.

Tomorrow before the open look for the following companies to report: AKS, T, BIIB, BJS, BOW, BNI, CRDN, CME, CPO, CFC, SSP, LM, LXK, LMT, MCD, NOC, OXY, BTU, PEP, DGX, SAOA, TLAB, X, UAUA, UPS, WU, and XTO.

http://www.reuters.com/article/marke...0070724?rpc=44

TOKYO, July 24 (Reuters) - Japanese government bond futures drifted up to a six-week high on Tuesday in quiet trade as Tokyo shares erased earlier gains, prompting investors to add positions in JGBs.
Activity was subdued as many market players kept to the sidelines on lingering worries that problems in the subprime mortgage sector could spill over into the broader economy.
Bond investors initially sold JGB futures after U.S. Treasuries retreated overnight from recent rallies that had been driven by mounting problems in subprime mortgage industry that prompted a flight to quality.

8:00am ET
[BRIEFING.COM] S&P futures vs fair value: -4.0. Nasdaq futures vs fair value: -7.8. Early indications are pointing to a lower open for the cash market as investors sift through a plethora of earnings reports but appear less than enthused. Last night, soft Q3 guidance from Texas Instruments (TXN) and American Express (AXP) posting an 85% jump in loss provisions initially set a negative tone.
A Q2 earnings shortfall from DuPont (DD) and reports that the Allison Transmission unit of fellow Dow component General Motors (GM) has hit a snag trying to get debt-financing for its proposed $3.1 bln LBO have exacerbated the futures market's bearish bias.

9:00am ET
[BRIEFING.COM] S&P futures vs fair value: -9.2. Nasdaq futures vs fair value: -12.8. Pre-market sentiment continues to deteriorate as renewed debt concerns and the bulk of earnings reports continue to reflect the impact of sluggish economic growth. AT&T (T) posted a 61% jump in Q2 profits, but the activation of only 146,000 iPhone subscribers is being viewed as a disappointment. McDonald's (MCD) merely matching Wall Street expectations also leaves investors without a standout report like the one fellow Dow component Merck (MRK) delivered a day earlier.

Amazon.com earnings surge in second quarter

By Dan Gallagher
Last Update: 4:08 PM ET Jul 24, 2007

SAN FRANCISCO (MarketWatch) - Amazon.com said Tuesday afternoon that second-quarter earnings surged more than 250% from the same period last year amid a strong growth in sales. For the period ended June 30, the online retail giant reported earnings of $78 million, or 19 cents a share, compared to earnings of $22 million, or 5 cents a share, for last year's second quarter. Revenue grew 35% to $2.89 billion for the quarter compared with $2.14 billion last year. Analysts were looking for the company to earn 16 cents a share on revenue of $2.81 billion for the June quarter, according to consensus estimates from Thomson First Call.

http://www.marketwatch.com/news/stor...FEED3C8D9D5%7D