Market Focused on Earnings and CCI

albena
30 Nov, -0001
New York City

Futures were up in early trading, pointing to a higher opening for stocks after in its late Monday

U.S. MARKET AVERAGES

U.S. stock futures were higher in early trading, following Monday's earnings report from Texas Instruments ((TXN)) which reported a better-than-expected earnings and said it would lift its dividend. The company’s shares gained nearly 6% in after-hours trading.

While Texas Instruments sound financial results and guidance boosted its European peer STMicroelectronics, quarterly results from German chipmakers Infineon Technologies and Taiwan Semiconductor Manufacturing limited the gains made by the chip segment as
Infineon's loss was deeper-than-expected and Semi profit declined 22%.

Automakers Peugeot and Nissan each reported drop in earnings, while BP and Reuters both declined after disclosing increased investment plans.

On Tuesday stocks could also get a boost by oil prices trading lower after Monday's rally that took the crude prices to the $59 mark.

ECONOMIC NEWS

The Conference Board is due to release its Consumer Confidence Index for July at 10 a.m. EDT Tuesday. Economists expect a minimal increase to 106.0 versus 105.8 in June.

INTERNATIONAL MARKET NEWS

European stock markets were near the flat line on Tuesday, dragged by the weaker U.S. trading overnight and by a few slightly disappointing earnings releases from the chip maker Infineon Technologies and automaker Peugeot SA. Germany's DAX 30 index inched 0.1% lower at 4,436.41, while France's CAC 40 index gained 0.1% at 4,424.35. The U.K.'s FTSE 100 index remained stable at 5,270.50.

In Asia, Japanese shares closed lower Tuesday, while regional bourses ended mixed. The Nikkei 225 index ended down 0.2% to 11,737.96. The broader Topix Index also slid. Taiwan's Weighted Index lost 0.9% to 6,366.16 after earnings from chip giant Taiwan Semiconductor. Hong Kong's Hang Seng Index dropped 0.2% to 14,769.93. Among the gainers, Australia's All Ordinaries Index added 0.06% to 4,338.10. China's Shanghai Composite closed up 2.6% at 1,072.80 and Singapore's Straits Times Index gained 0.5%.

ENERGY, METALS AND CURRENCIES MARKETS

The U.S. dollar was higher versus other major currencies in European trading Tuesday. The euro traded at $1.1999, down versus $1.2049 late Monday in New York. The greenback bought 112.20 Japanese yen, up from 111.50. The British pound was quoted at $1.7368, down from $1.7444.

Gold traded in London at $424.50 bid per troy ounce, down from $425.50 late Monday. In Zurich the bid price was $424.50, down vs. $425.85. Gold lost 20 cents in Hong Kong to close at $425.05.

Crude-oil prices slipped 35 cents to $58.65 a barrel in early trading Tuesday.

Treasury prices were higher, cutting the yield on the 10-year note to 4.23% vs. the 4.25% level late Monday.

EARNINGS NEWS

Late Monday, Texas Instruments ((TXN)) reported 2Q net income of $628 million, or 38 cents a share, versus net income of $441 million, or 25 cents a share last year. The latest results included a gain of 6 cents a share for a tax-related benefit. The company also raised its quarterly dividend to 3 cents vs. 2.5 cents.

Starwood Hotels ((HOT)) released 2Q results Tuesday morning, reporting earnings for the quarter of $0.70 per share, excluding one-time items, up vs. $0.50 per share last year and above the $0.65 per share seen by analysts. The company expects 3Q profit of $0.51 per share vs. analysts' estimates of $0.50 per share.

Health Management Associates ((HMA)) reported a 3Q profit of $0.39 per share, excluding one-time items, up versus $0.36 per share a year ago and in line with analysts' expectations. The company posted total revenue for the period of $953.3 million, up vs. last year's $817.3 million.

Verizon Communications will post its 2Q before the opening bell Tuesday. Analysts are looking for earnings of 64 cents a share, flat with last year’s. DuPont Co. is also scheduled to report 2Q earnings and analysts expect 96 cents a share.

Online retailer Amazon.com is slated to report 2Q earnings, seen at 10 cents a share by analysts. Videogame publisher Electronic Arts is to release 1Q results and analysts forecast a loss of 24 cents. Also reporting Tuesday are Lockheed Martin, Sun Microsystems, L-3 Communications, Countrywide Financial, 7-Eleven, Black & Decker, Blockbuster and Omnicom Group.

CORPORATE NEWS

BP, the world's No.2 oil company by market capitalization, reported a 29% jump in profit for 2Q as the company continued benefiting from soaring oil prices. The company also disclosed a $700 million charge to settle claims from a deadly Texas refinery explosion. BP said its profit on a replacement-cost basis came at $4.98 billion, up versus $3.87 billion last year. The company's profit was bolstered by a 46 percent increase in oil prices during the quarter.

Danaher Corp. said it agrees to bid $950 million in cash, or SFr500 per Swiss listed share, for Leica Geosystems. Danaher already held 4% of Leica, a measuring equipment maker. The deal will increase earnings by 5 cents a share in 2006, according to Danaher.

OTHER NEWS

The dollar advanced versus the euro and yen Tuesday, as China signaled it has no plans of revaluing its currency again anytime soon. The Chinese central bank said it wasn't correct to expect the revaluation was only an initial adjustment.