Economy Still Cooking
A larger-than-expected increase in durable goods orders is weighing on stocks
at the open Thursday, but a lower-than-expected increase in employment costs has
helped offer a little optimism about inflationary pressures.
The Nasdaq futures are down 53 points, and the Dow futures are up 2 points.
The S&Ps look to open down a point while the yield on the 10-year
Treasury is holding at 6.02%.
June durable goods increased 10% which was much higher than the 0.1% increase
analysts expected. A large jump in aircraft orders accounted for the increase.
Without the transportation component, the number would have increased just 0.8%.
The employment cost index rose 1.0% for the first quarter, which was lower
than the 1.1% increase that analysts had expected.
Thursday Earnings
Telecom leader WorldCom
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PowerRating) announced second quarter earnings of 46
cents per share which matched analyst expectations. WorldCom closed Wednesday
down 1/2 to 44 3/4 and is trading down to 43 1/4 in pre-market activity.
Internet service provider Earthlink
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PowerRating) posted a
narrower-than-expected loss of 29 cents per share for the second quarter,
beating First Call/Thomson Financial’s estimate of a 36 cents per share loss.
Earthlink closed Wednesday at 14 11/16 and is trading at 14 7/8 in pre-market
activity.
Oil giant Texaco
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PowerRating) said that it earned $1.17 per share for the second
quarter, which was just about in line with the $1.18 per share analysts polled
by First Call/Thomson Financial had expected. Texaco closed Wednesday down 5/16
to 48 5/8.
Wednesday Follow-Up
Amazon
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PowerRating) announced Wednesday losses of 33 cents per share for the
second quarter, beating Street estimates of a 35 cent per share loss. Despite
topping analyst estimates, Amazon continues to move lower. The stock closed
Wednesday at 36 1/16 and is trading down to 30 7/8 in pre-market activity.
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