SCH Up 7%…Here’s Why

Stocks are
flat with crude rising to over $42 a barrel.

Richard Grasso counter-sued the NYSE and John Reed in an attempt to collect
at least $50 million for breach of contract. Ford
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reported earnings
that more than doubled to $1.2 billion and upped FY earnings estimates by 15
cents. This was the third time this year Ford raised its earnings forecast. The
majority of the earnings came from its finance arm, which offset weakness in its
auto sales. Alan Greenspan delivers his semi-annual monetary policy testimony to
the Senate Banking Committee today.

Wells Fargo
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reported earnings that rose 12% to 1.71 billion with revenue up 7% to $7.4
billion. The company’s lending income rose 6% to $4.23 billion with net interest
margin falling to 4.83% from 5.09% a year ago. Altria
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posted
earnings of $2.63 billion with revenue up 10.5% to $23.01 billion. The company
affirmed its full-year earnings forecasts and is expected to reach $4.50 a
share.

Charles Schwab CEO David
Pottruck resigned under pressure, with founder Charles Schwab taking over as
chief exec. The detail-oriented Pottruck joined Schwab from Shearson in the
1980s. SCH is trading up 7% on the news.

Dow +9.93 10103.89
S&P 500 +1.04 1101.93
Nasdaq +14.54 1897.10

Strong today are: Internet
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+3.46%, Airlines
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+1.80%, Retail
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,
+1.74%, Disk Drives
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+1.13% Semis
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-1.27%.

Weak today are: Oil Services

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-1.37%, Insurance
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-1.06%.

Economic news releases include:
Housing starts that fell to 1802K, Building permits also dropped to 1924K.

10-year Notes are -70 at
111 035

The dollar
is +0.36 at 87.71

Gold is -5.10 at 402.00

Crude Oil is +0.32 at
41.96

Volume is 588 million on
the NYSE, and 679 million on the Nasdaq.

Market breadth is positive

NYSE Issues
Advancing 1520 Up Vol 305
Declining 1547 Down Vol 245
Ratio 1.02 1.24
Nasdaq
Advancing 1638 Up Vol 490
Declining 1231 Down Vol 163
Ratio 1.33 3.01

Top Dow stocks are:

Home Depot
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,
+1.68%, 3M
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, +1.05%, Hewlett Packard
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+1.06%,
IBM

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, +0.91%.

Stocks in the news:

EMC
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posted earnings of $193 million with revenue up 33% to $1.97 billion. The
company said they were on track to reach mid-teens in operating margin
s
and expects earnings to reach 8 cents a share with revenue around $2 billion for
Q3.

Flextronics
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reported a profit
of $74.3 million with revenue up 25% to $3.88 billion. For Q2, it expects EPS of
15 cents a share.

Avery Dennison

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fell after reporting earnings of $68.5 million with net
sales up 11% to $1.32 billion.

Brice Wightman

bricew@tradingmarkets.com

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