Look At These Earnings!

Stocks were
higher, with tech stocks leading the charge.

All major indices climbed on stronger volume.
Positive economic reports started the day, along with a pullback in oil. The Dow
and the S&P could make their first up-week since June 18. The Russian Ministry
of Justice lifted a previously imposed ban on Yukos’ property transactions Yukos
produces 1.7 million bpd.  Oil giant Exxon Mobil
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reported
Q2 earnings that rose 39% to $5.79 billion with a 24% rise in revenue on high
oil prices and demand. Its daily crude oil output rose to 4% with daily average
oil and gas production at 4.08 million barrels. XOM closed at an all-time high
of 46.10.

TXU Corp
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reported a loss of $600 million on one-time charges that exceed $1 billion that
related to share buyback and restructuring transactions. The company upped its
earnings outlook to $2.60 a share as its operating revenue rose 6.8% to $2.3
billion for the quarter. Aetna
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rose after posting earnings of
$286 million with revenue rising 9% to $4.9 billion.

The SEC is investigating
Krispy Kreme’s

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franchise repurchases; shares fell 10%. The stock
is at its lowest level in almost three years, closing down 3.01 to 15.65.

After the bell, KLA-Tencor
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reported Q4 of 0.48, beating by 0.03 and beat on revenues. The net
was $96 million on $450 million revenue. Adaptec
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beat by 0.02
but was light on sales. Thoratec
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beat and guided higher; the
stock traded up after hours. Multimedia Games
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missed by 0.02
and missed on revenues; the stock traded down after hours. THQ Inc.
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beat by a penny.  Gilead
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  reported Q2 GAAP of 0.49
vs. an estimate of $ 0.46; product revenue was up 36%, beating estimates; the
results included an after-tax gain of $1.6 million. The stock traded up after
hours. Varian Medical
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beat by 0.02; NetGear
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beat by 0.03. American Power
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missed by 0.07 but beat on
revenues.

Dow +12.17 10129.24
S&P 500 +5.01 1100.43
Nasdaq +22.80 1881.06

Strong today were:
Healthcare

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 +4.00%, Internet
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+3.13%,
Airlines

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+2.92%,  Semis
(
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+2.44%.

Economic news releases today
include: Employment cost index that rose by 0.9%, initial claims higher at 345K,
and help wanted index at 38.

10-year Notes were +045
at 109 310

The dollar
was +0.20 at 89.97

Gold was -2.10 at 387

Crude Oil was -0.12 at
42.78.

Volume was 1.5 billion
on the NYSE, and 1.7 billion on the Nasdaq.

Market breadth was positive

NYSE Issues
Advancing 2262 Up Vol 980
Declining 1023 Down Vol 398
Ratio 2.21 2.46
Nasdaq
Advancing 1970 Up Vol 1227
Declining 1085 Down Vol 341
Ratio 1.81 3.59

Stocks in the news:

Georgia-Pacific
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reported
earnings of $220 million with revenue up 6.2% to $5.19 billion.

Raytheon
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posted a net loss of $108 million
with sales up 11% to $4.9 billion. Its  government and defense production
backlog exceed $29.5 billion.

Taro Pharmaceutical
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tanked after missing earnings forecasts by a wide margin, with a loss of $8.9
million vs. estimates of 44 cents a share by Thomson First Call.

General Motors
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fell after receiving downgrades
from Lehman Brother and Goldman Sachs.

Brice Wightman

bricew@tradingmarkets.com