Stocks are down in mid-day trading as the debt drama that has
gripped Washington, D.C. for much of the last three weeks is coming
to an end. Following a key vote in the House of Representatives
yesterday, the Senate voted to approve a bill to increase the U.S.
debt limit. Worries persist despite passage of the bill as analysis
yesterday and today says the U.S.'s AAA credit rating may still be
vulnerable, which contributed to a volatile stock session
In the latest economic data, U.S. personal income in June is up
0.1%, which is the smallest gain since last November, the Commerce
Department said. Spending was weaker than expected, falling 0.2%,
which was first decline in nearly two years.
In company news:
Shares of Barclays (
) are higher as the company said it is cutting 3,000 jobs this year
amid falling investment banking profits, according to a Bloomberg
report on the matter. Already, the bank has cut 1,400 positions
Shares of Teva Pharmaceuticals (
) are higheras the company said that its new oral contraceptive
ZOELY scored a marketing authorization in the European Union,
according to a company statement. This clears the way to allow the
product to be launched in Europe by the end of 2011, the statement
said. Also this morning, Oppenheimer reportedly downgraded Teva (
) to Perform from Outperform.
Shares of Apple Inc. (
) are higher as Bloomberg reports the company won an agreement with
Samsun Electronics that the South korean electronics maker would
not sell the most recent version of its tablet computer in
Australia until a patent there is resolved. A lawyer for Apple said
the Samsung Galaxy Tab 10.1 infringes on 10 Apple patents, the
) is down after it recalls 1.22 million pickup trucks due to a
corrosion issue. The company said it is recalling the trucks in the
United States and Canada to replace straps that hold fuel tanks in
place and could corrode and break. As a result of the corrosion,
one or both straps may fail, causing fuel lines to separate from
the tank or in some cases the tank to fall to the ground, Ford
said. Either scenario could result in a fuel leak or fire.
In the latest earnings news:
) says Q2 adjusted EPS were $0.27, on sales of $936 million.
Estimates were for $0.15 per share in earnings on sales of $910.14
--Pfizer (PFE) reports Q2 revenue of $17 billion, ahead of the
analyst consensus of $16.98 billion on Thomson Reuters. EPS was
$0.60, a penny above expectations. For the full year 2011, the
company expects revenue of $65.2 to $67.2 billion and EPS of $2.16
to $2.26 per share. The Street is at $66.6 billion in revenue and
earnings of $2.25 per share.
--Duke Energy (DUK) reports Q2 adjusted EPS of $0.33, down from
$0.34 a year earlier but beating by 2 cents the Thomson Reuters
mean analyst estimate for $0.31. Revenue rose to $3.5 billion. The
Street expected $3.3 billion.
--OfficeMax (OMX) says Q2 sales were $1.6476 billion, above the
Thomson Reuters mean for $1.63923 billion. It earned an adjusted
$0.07 per share, better than forecasts for breakeven. It sees Q3
sales in line with a year ago. 2H sales are seen slightly up from a
--Synchronoss Technologies (SNCR) is sharply higher in morning
trade after it reported second quarter earnings late yesterday.
SNCR late Monday reported Q2 non-GAAP EPS of $0.21 on non-GAAP
sales of $55.4 million. The Street view is for EPS of $0.20 on
sales of $54.61 million.
--Coach (COH) says Q4 sales were $1.03 billion and it earned
$0.68 per share. Estimates were for $0.65 per share on sales of
Commodities are higher as December gold contracts are up 0.99%
to $1,638 an ounce while September crude oil contacts are up 0.06%
to $94.95 a barrel.
In energy ETFs, the United States Oil Fund (USO) is down 0.19%
to $37.13 and the United States Natural Gas fund (UNG) is down
0.43%, to $10.43.
In precious metal ETFs, the SPDR Gold Trust (GLD) is up 1.01% at
$159.32. Market Vectors Gold Miners (GDX) is up 1.27% to $58.09.
iShares Silver Trust (SLV) is up 1.91% to $39.02.
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