TOP STORIES
GENERAL MOTORS PROFIT FALLS 80%
GM reported an 80% drop its 2Q net profit, with earnings hit by
$1.5 billion in charges related to vehicle recalls and money set
aside to fund a compensation plan for victims of car accidents
linked to defective ignition-switches. Shares fell 2%.
FORD 2Q PROFIT RISES 6%
Ford Motor's 2Q net income rose 6% to $1.3 billion, driven by a
record quarter in North America, strong results in Asia and the
first quarterly profit in Europe in three years. Revenue fell 1% to
$37.4 billion. Shares rose 1%.
WAL-MART'S U.S. CHIEF SIMON TO LEAVE
Wal-Mart Stores' U.S. chief Bill Simon, who struggled to lift
sales as it fought off competition from dollar stores and online
retailers, will be leaving the company Aug. 8, the retailer
said.
U.S. JOBLESS CLAIMS DROP TO LOWEST LEVEL SINCE 2006
New applications for unemployment benefits plunged last week,
reaching an eight-and-a-half-year low and suggesting increasing
strength in the labor market.
UNITED CONTINENTAL 2Q PROFIT RISES 68%
United Continental Holdings earned $789 million, or $2.01 a
share, as passenger revenue climbed. Excluding items, EPS was
$2.34. Revenue rose 3.3% to $10.33 billion. Results beat market
expectations. Shares rose 6%.
AMERICAN PROFIT CLIMBS, SETS CAPITAL DEPLOYMENT PLAN
American Airlines unveiled a capital deployment plan that will
cut its debt, provide additional pension contributions and return
capital to shareholders as it announced its highest quarterly
profit on record in the second quarter.
CATERPILLAR'S 2Q REVENUE DISAPPOINTS
Caterpillar earned $999 million, or $1.57 a share, amid lower
operating costs and strong construction results, while its
mining-related business continued to post weak results. Earnings
topped analysts' view; revenue came up short. Shares fell 2%.
ENERGY FUTURE SCRAPS RESTRUCTURING PACT
Energy Future Holdings is terminating the restructuring support
agreement it brought with it when it filed for Chapter 11
bankruptcy in April and making plans for an auction, according to a
filing with the SEC.
U.S. STOCKS LITTLE CHANGED
U.S. stocks traded little changed, bolstered by positive
economic data out of China and Europe. U.S. companies continue to
report earnings that are broadly beating Wall Street expectations,
which are also supporting markets.
BREITBURN ENERGY, QR ENERGY TO MERGE IN $2 BILLION DEAL
Breitburn Energy Partners said it would acquire QR Energy in an
equity-and-cash deal valued at nearly $2 billion, creating the
largest, oil-weighted upstream oil and gas master limited
partnership.
NOKIA BOOSTED BY SALE OF HANDSET UNIT TO MICROSOFT
Shares of Nokia surged after the Finnish mobile network company
said its expectations for 2014 have improved, and as its financial
performance in the latest quarter was boosted by the sale of its
handset business to Microsoft.
======= DOW JONES NEWSWIRES ANALYSIS AND COMMENTARIES =======
Analysis
SOUTH KOREA TO SPUR GROWTH VIA SPENDING
South Korea unveiled a $40 billion stimulus package aimed at
propping up a weakening economy, but some observers said the
measures risk worsening already-high debt levels, writes Alastair
Gale.
Capital Journal Daybreak
NEW PUSH TO LURE HAMAS INTO TRUCE
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