Stocks Hurt On Subprime Woes
1 The NYSE composite sank 2.1%, the S&P 500 2%, the Nasdaq 1.9% and the Dow 1.6% in heavy volume as several market leaders came under pressure. Countrywide Fin'l missed profit views and slashed targets, as delinquencies spread beyond subprimes. Home builders and lenders were among the worst hit. The 10-year Treasury yield fell 4 basis points to 4.92%.
Amazon Soars On Strong Growth
2 The e-commerce giant's Q2 profit shot up 280% to 19 cents a share, 3 cents over views. Sales grew 35% -- the best in more than 3 years -- to $2.89 bil. Amazon (NasdaqGS:
AMZN -
News) said it got 2.2 mil orders for the final Harry Potter book. It sees Q3 revenue of $3 bil-$3.175 bil vs. views for $3 bil. Amazon shares surged 18% in late trading to record highs after falling 3.5% ahead of results.
AT&T Tops Views; iPhone Soft?
3 The telecom giant's Q2 profit rose 21% to 70 cents a share ex items, beating views by 3 cents. Revenue was $29.5 bil, or $29.8 bil adjusted. AT&T (NYSE:
T -
News) added 1.5 mil mobile users vs. 1.2 mil in Q1. But the U.S. mobile provider of Apple' (NasdaqGS:
AAPL -
News)s iPhone activated just 146,000 of the handsets June 29-30, far fewer than forecast. AT&T shares fell 1%. Apple, which reports Wed., slid 6%.
Countrywide: Loan Woes Spread
4 The mortgage giant missed EPS views badly and warned on full-year goals, citing "increasingly challenging" housing and mortgage markets. Subprime delinquencies soared, but high-quality loans had problems, too. Countrywide (NYSE:
CFC -
News) shares fell 10% to their lowest close in 3 years. Moody's and Pimco warned of liquidity woes. Lenders, home builders and financials overall sold off hard.
Gen. Plans Troops In Iraq In '09
5 Gen. David Petraeus has developed plans to achieve sustainable security in '09, his spokesman said. The Pentagon emphasized it's just a draft. Separately, President Bush warned against pulling out troops quickly and argued al-Qaida was deeply involved in Iraq. Also, U.S. and Iran agreed after talks in Baghdad to work together on security in Iraq.
Energy Prices Continue To Drop
6 Natural gas prices slid 2.9% to $5.863 per mil Btu, the lowest since Feb. '05. U.S. supplies are swelling. Gasoline futures fell 5.64 cents to $2.0477 a gallon, extending a sharp drop over the past 2 weeks as refineries come back on line. Analysts expect the gov't to say Wed. that U.S. gasoline stockpiles rose last week. Crude futures fell $1.33 to $73.56 a barrel.
AK, U.S. Steel Profits Beat Views
7 U.S. Steel's (NYSE:
X -
News) Q2 EPS fell 14% to $2.66 ex items amid weak flat-rolled shipments. But that still topped views by 31 cents. Sales grew 2.4% to $4.2 bil. Meantime, AK Steel (NYSE:
AKS -
News) more than tripled Q2 EPS to 98 cents, beating views by 28 cents. Sales rose 25% to $1.87 bil. Higher shipments and lower labor costs helped. Steel Dynamics (NasdaqGS:
STLD -
News) missed views late Mon. Shares of all 3 steel makers edged up.
DuPont Misses On Higher Costs
8 The chemical giant said Q2 profit rose 3% to $1.04 a share ex items, 2 cents shy of views. Sales grew 6% to $7.88 bil as the weak dollar boosted int'l volume growth. But weak U.S. housing and auto markets as well as higher energy and research costs hurt. DuPont (NYSE:
DD -
News) sees '07 EPS of $3.15, below views of $3.18. Its shares fell 6% to 49.90.
CME Slips 2% After Q2 Earnings
9 The Chicago Mercantile Exchange (NYSE:
CME -
News) said its earnings rose 18% to $3.69 a share ex items, 3 cents ahead of expectations. Revenue grew 17% to $329 mil, just shy of forecasts. Derivatives trading rose 10% in the quarter after a quiet April. The company said it is focusing on digesting its merger with the Chicago Board of Trade .
Afghan Rebels Killed In Clashes
10 U.S., NATO and Afghan forces have killed over 75 Taliban terrorists in 3 separate battles in southern Afghanistan. Fighting has intensified as NATO-led coalition forces have attacked Taliban strongholds in the south near the Pakistan border. Meanwhile, the fate of 23 S. Korean missionaries held hostage remained unknown.
Published by Investor's Business Daily
Labels: AAPL, AKS, AMZN, CFC, CME, DD, STLD, T, X
