General News:
– Jobless claims were 301,000. 310,000 was expected.
– Durable good orders rose 1.4% versus expectations of 1.9%. Ex-transportation orders fell 0.5%, 0.6% was expected. Non-defense cap good & air orders fell 0.7% after falling 1.5% in May and rising 2.0% in April. Computer and electronic orders were weak and machinery orders rose 2.6%. Metal orders were mixed.
– The Financial Times is reporting that banks involved with the Alliance Boots/KKR deal have had problems with the debt and have sold loans at a discount, which exceeds the bank fees of 250 bps leaving them with sizable losses.
– The Internet continues to crush traditional media: The Washington Post ran a story talking about falling advertising at the NY Times and Tribune.
– Sales of new homes fell in June by the largest amount in five months as the housing industry continued to struggle with its worst downturn in 16 years. The median home price also fell.
Asia/Europe:
Asia:
– Bank of Japan Noda said there is no preset time for a rate hike, but rates need to be adjusted higher if prices move as forecast.
– June Japanese corporate service prices rose 1.4% year over year, in line with expectations.
– Hong Kong exports rose 11.1% in June, in line with expectations.
– China is considering a ban on residential property pre-selling.
Europe:
– UK nationwide home prices rose 9.9% year over year. 10.6% was expected.
– UK June mortgage approvals were 75,318 versus 77,443.
– Italian retail confidence soured to 109.6 from 110.9.
– European Zone M3 grew 10.9% when 10.7% was expected.
– The maximum rate hike in Germany is seen at 50 bps and will come around September or October.
Corporate News:
– Dow Chemical Co. (DOW) said its second-quarter profit edged up 2%as international growth offset weakness in the North American housing and automotive sectors and the effect of rising petroleum prices on its plastics business.
– Office products retailer Office Depot Inc. (ODP) said its profits dipped 8% in the second quarter as weak sales in North America offset double-digit growth in international revenues.
– Kellogg Co. (K) said its second-quarter profit rose 13% on strong revenue growth and improved margins. The maker of breakfast cereals and other food earned $301 million, or 75 cents per share, in the three months ended June 30 from $267 million, or 67 cents per share.
– US Airways Group Inc. (LCC) said its second-quarter profit fell 14% on higher maintenance and other expenses, but results topped Wall Street’s expectations and the carrier began recalling furloughed flight attendants and pilots.
– Job cuts, slimmer losses in North America and good sales overseas helped Ford Motor Co. (F) post surprise second-quarter earnings Thursday of $750 million, its first profitable quarter in two years.
– Exxon Mobil Corp. (XOM), the world’s largest publicly traded oil company, said its second-quarter profit fell 1% from a year ago as lower natural gas prices and production declines hurt results.