Stocks are mixed in mid-day trading while investors eye the
release of minutes from the last meeting of the Federal Open Market
Committee, due at 2 pm. EST. Also, a new report showed the US May
trade deficit is bigger than analysts had expected.
Before the market open, a report showed the U.S. trade deficit
widened more than expected, to $50.2 billion in May. It's the
widest gap since Fall 2008. The June quarter earnings season got
underway with results from materials staple Alcoa (
), which met the Street's Q2 earnings estimates and beat on
Overseas, euro-zone finance ministers said late Monday they were
prepared to adopt further measures "that will improve the euro
area's systemic capacity to resist contagion risk," according to
news reports. But officials stopped short of announcing any
specific measures. Italy successfully sold 6.75 billion euros ($9.4
billion) of 12-month bills. Concern that Italy's chance of default
is rising with expensive bond yields knocked back global stocks to
start the week.
In company news:
Shares of Cisco Systems (
) are higher after Bloomberg, citing two people familiar with the
situation, reported the company could cut as many as 10,000 jobs,
or about 14% of its workforce. About 7,000 jobs will be cut by the
end of August. Another 3,000 people will take early retirement
buyouts, the report said.
Seattle Genetics (
) is down after federal regulators said its drug brentuximab for
Hodgkin's lymphoma and a less common type of the disease may
require more data on benefits, according to Bloomberg.
Shares of Deutsche Bank (
) are down after Bloomberg reported that the German Bank and its
MortgageIT unit are seeking dismissal of a $1 billion lawsuit by
the U.S. government. The suit claims Deutsche Bank lied to qualify
thousands of high-risk mortgages for the insurance by the Housing
and Urban Development Department's Federal Housing
Boston Scientific (
) is up just over 1% in mid-morning trading after announcing today
that it has completed patient enrollment in the ASTI post-market
clinical follow-up study. The trial is designed to evaluate its
Adapt Monorail Carotid Stent System in combination with its
FilterWire EZ Embolic Protection System for treatment of carotid
artery disease in patients at high risk for carotid surgery.
Netflix (NFLX) is up slightly, at $291.60 after the company
unveiled a new DVD-only subscription plan for $7.99 per month,
targeted at customers who don't have access to broadband service.
Previously, Netflix subscribers had to pay $9.99 for unlimited DVD
rentals and subscription access, or $4.99 for just two DVDs per
month. Analysts believe that focusing on its DVD business hedges
the company's potential loss of streaming content, according to a
report by Zack's.
In other earnings news:
--Novellus (NVLS) is down sharply after the company reported Q2
sales of $350.2 million, just below the analyst consensus of $352
million on Thomson Reuters. EPS was $0.79, vs. expectations of
$0.76 per share.
--Fastenal (FAST) says Q2 sales were $701.730 million and EPS
were $0.32. The Thomson Reuters mean was for $$688.58 million and
$0.30 per share.
Commodities are higher as August gold contracts are up 0.16% to
$1,552 an ounce while August crude oil contacts are up 0.91% to
$95.80 a barrel.
In energy ETFs, the United States Oil Fund (USO) is up 0.99% to
$37.67 and the United States Natural Gas fund (UNG) is up 0.56%, to
In precious metal ETFs, the SPDR Gold Trust (GLD) is down 0.2%
at $151.30. Market Vectors Gold Miners (GDX) is up 1.26% to $56.32.
iShares Silver Trust (SLV) is down 1.17% to $34.49.
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