Big Let Down From Intel, Here’s Who’s On Deck

Stocks
opened weak but turned green this mid-day.

Intel
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reported earnings that
jumped 96% to $1.76 billion with revenue up 18%. The company projected Q3
revenue to reach at least $8.6 billion but warned of lower gross margins and
increasing inventory levels. New York Times
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reported earnings
that rose 3.9% to $75.7 million with revenue up 2.7%. The publisher also warned
of a slowdown in advertising growth.

Bank of America
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posted
earnings of $3.85 billion, beating estimates by 12 cents with revenue up 35% to
$13.19 billion. The higher profit included a one-time $795 million securities
gain. According to Reuters, Harrah’s Entertainment
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is close to
a deal to purchase Caesars Entertainment
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for about $10 billion.

Advanced Micro Devices
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and Apple
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are expected to report earnings after the bell today with earnings
of 9 and 15 cents.

Dow +11.93 10259.79
S&P 500 +1.83 1116.97
Nasdaq -2.44 1928.10

Strong today are:


Networking

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+2.72%, Healthcare
Provider

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+2.18%,
Biotechs
 
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+1.74%,

Weak today are:


Semis

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-3.57%,

Airlines
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-1.00%.

Economic news release include
export prices ex-ag that fell 0.1%, import prices ex-oil was unchanged. Retail
sales dropped 1.1% and retail sales ex-autos dipped 0.2%.

10-year Notes are -30 at
110

The dollar
is -0.21 at 87.80

Gold is +2.90 at 406.50

Crude Oil is +0.25 at
39.35

Volume is 680 million on
the NYSE, and 1,010 million on the Nasdaq.

Market breadth is mixed.

NYSE Issues
Advancing 1851 Up Vol 394
Declining 1220 Down Vol 278
Ratio 1.51 1.42
Nasdaq
Advancing 1488 Up Vol 460
Declining 1405 Down Vol 600
Ratio 1.06 1.30

Top Dow stocks are:

McDonalds
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,
+4.03%, Microsoft
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, +2.50%, 3M
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, +1.35%, Johnson & Johnson
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,
+1.27%

Stocks in the news:

McDonalds
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said they expect
earnings of 47 cents a share with same-store sales climbing 7.8% — the highest
second quarter same-store sales since 1987.

Juniper Networks
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surged after surprising Wall Street with earnings of 8 cents a share on sales of
$306.9 million. The company also upped its second half of the year sales to $765
million.

Genzyme
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reported earnings of $78.2
million with revenue up at $549.6 million. The company also raised FY earnings
to $1.75 a share.

Ericsson
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rose after getting a $210
million deal to supply GSM equipment to Swedish telecom VimpelCom
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.

Brice Wightman

bricew@tradingmarkets.com