N AMERICAN MORNING BRIEFING: Stocks Look For 5th Rise In Row

28th Jul 2010 11:27

DJIA Futures 10505.0 +11.0 +0.1% S&P 500 Futures 1112.0 +1.6 +0.1% Nasdaq Futures 1890.0 +4.0 +0.2% Above are as of 0545 ET FTSE 100 5364.7 -0.9 flat Xetra DAX 6213.4 +6.0 0.1% CAC40 3687.1 +20.7 0.6% Above are as of 0545 ET Nikkei 225 9753.2 +256.4 +2.7% Hang Seng 21091.2 +117.8 +0.6% Above are closing prices BREAKING NEWS: *Newmont Mining Increases Qtrly Div By 50% SNAPSHOT: -Stocks seen higher; Treasurys stable; dollar mixed; Nymex crude higher $77.58; gold higher at $1162.03. -Watch for Boeing, ConocoPhillips, Comcast as highlists of long list of earnings; -IMF Divided On Yuan Exchange Rate; PBOC HU:Yuan Rise Helps Economy, Fights Inflation; BOJ Kamezaki: Japan Economy Could Briefly Slow In 4Q OPENING CALL: The four-day rising streak looks set to continue, with David Jones, chief market strategist of IG Index, saying he's expecting stocks to open higher. Once again, stocks are taking their cue from the upbeat mood in Europe, which in turn is buoyed by the feel-good factor from the pan-Europe bank stress tests. He says, however, that the Dow is getting close to the 10600 level, which proved a barrier after the run-up in June. "If we crack 10600 it will make for even more momentum," Jones said. European shares advanced for the seventh straight session on Wednesday, helped by earnings-related gains from BBVA, Infineon Technologies and Atos Origin on a busy day for corporate news flow. EQUITIES: A slew of announcements late Tuesday underlined the increased interest in social-network-based games. Google Inc. (GOOG) is in talks with several makers of popular online games as it seeks to develop a broader social-networking service that could compete with Facebook Inc., the Wall Street Journal reports. It is unclear when Google may launch the new gaming offering and the plans aren't finalized, but people briefed on the matter said the games would be part of broader social-networking initiative that is under development by the Mountain View, Calif., company. On the same theme, Walt Disney Co. (DIS) late Tuesday confirmed it will purchase online social-network gaming company Playdom Inc., agreeing to pay at least $563.2 million. Disney also said it is looking to add to its digital gaming portfolio and tap more opportunities in the fast-growing social networking world. That announcement came just hours after video game retailer GameStop Corp. placed its own stake in the social-game market with its acquisition of Kongregate Inc. The site claims 10 million monthly users. Major earnings due Wednesday include Boeing, Comcast, ConocoPhillips and Coca-Cola Enterprises. BONDS: Treasurys were stable ahead of fresh supply lined up later in the session. European equities and the euro have come off highs, helping support safe havens slightly. The Treasury auctioned $37B of 5-year notes, after a $38B auction of two-year bonds recorded the lowest yield on record Tuesday. The Treasury will sell $29B of seven-year notes Thursday. The 2-year note was at 99-30/32 to yield 0.656%; the 10-year note was little changed at 103-25/32 to yield 3.05%; the 30-year bond was lower at 104-30/32, yielding 4.087%. FOREX: Another attempt by the euro to establish itself over $1.30 failed Wednesday as investors appeared keen to take profits on any gains. Overall, global market sentiment remained positive, with sterling also rallying at the start of the session. However, domestic economic data remained soft and the outlook for the global recovery remained uncertain, investor confidence was fragile. By 0515 ET, the dollar was flat in Europe at Y87.98, while the euro was down at $1.3005 and the pound had fallen to $1.5565. COMMODITIES: Oil futures were edging higher, reversing earlier losses, although analysts expected prices to be fairly stable ahead of the release of DOE weekly oil inventory data, due at 10.30 ET. Prices slumped Tuesday afternoon, triggered by Wall Street falls that were later compounded by bearish API weekly inventory statistics. Crude stockpiles built 3.1m bbls for the week ended July 23, according to the API, against expectations of a draw after a tropical storm last week disrupted oil production in the Gulf of Mexico. The API reported "a massive rise in (crude) imports of 1.6 million b/d," noteed David Wech of JBC Energy. He added: "Further bearish news came from a counter seasonal build in gasoline stocks of 880,000 barrels." Spot gold was holding steady in Europe Wednesday as physical demand picked up following the previous day's sharp selloff. Traders said gold's correction has further to run, with a test of support 200-day moving average likely in the near-term. =======TODAY'S CALENDAR======= ET PERIOD 0700 Jul 23 MBA Weekly Mortgage Applications Survey 0830 Jun Advance Report on Durable Goods 1030 Jul 23 EIA Weekly Petroleum Status Report 1400 Federal Reserve Beige Book 1430 Senate Banking Committee votes on nominee for Federal Reserve vice Chair OTHER TOP STORIES OF THE DAY: ABC ENTERTAINMENT PRESIDENT QUITS ABC Entertainment President Stephen McPherson resigned Tuesday, amid the network's difficulties maintaining a solid roster of hit shows. With the exception of last season's new sitcom "Modern Family," Mr. McPherson has had trouble assembling a slate of hits to take over for series like "Lost," "Desperate Housewives" and "Grey's Anatomy." 'BP SQUAD' LOOKS AT BP, REGULATOR TIES - WASH POST U.S. investigators have descended on New Orleans in a criminal probe into whether too-cozy ties between BP PLC (BP) and federal regulators contributed to the Gulf oil spill, the Washington Post reported Wednesday. The team of investigators dubbed the "BP Squad" includes officials from the Environmental Protection Agency, the U.S. Coast Guard and other federal agencies, sources told the Post. AMAZON'S $189 KINDLE OUT OF STOCK Amazon's (AMZN) decision last month to cut the price of its Kindle electronic book reader certainly seems to be working. The Internet retailer boasted last week that Kindle sales had tripled since the price cut, although it gave no specific figures. Now Amazon's Web site says the $189 Kindle is temporarily out of stock. TELEFONICA, PT SET DEAL ON VIVO Spain's Telefonica (TEF) said it has reached a preliminary agreement with Portugal Telecom to purchase the stake that the Portuguese company owns in Brazil's Vivo Participacoes. ARCELORMITTAL SWINGS TO PROFIT ArcelorMittal (MT), the world's largest steelmaker, Wednesday said it swung to a net profit in the second quarter on a slow recovery in demand but said the third quarter will be hit by a seasonal dip in demand and economic slowdown in China. EX-PBOC ADVISER: CHINA GDP GROWTH LIKELY TO STAY HIGH FOR NEXT 30 YEARS China's economic growth will likely remain high for the next 30 years because of abundant labor supply and high savings rates, Fan Gang, a former adviser to China's central bank, said Wednesday. BOJ KAMEZAKI: YEN RISE MAY HURT EXPORTERS IN SHORT TERM Bank of Japan policy board member Hidetoshi Kamezaki said Wednesday that although the yen's rise may hurt Japanese exporters in the short term, the domestic economy is expected to continue improving. -By Gren Manuel, Dow Jones Newswires; +44 207 842 9279; [email protected] (MORE TO FOLLOW) Dow Jones Newswires July 28, 2010 06:27 ET (10:27 GMT)