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 
 

The Obama administration, Israel and other Middle East allies are refashioning an Egyptian cease-fire proposal. Sign up here for The Wall Street Journal's morning rundown of the biggest news driving Washington.