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Old 07-10-2009, 06:37 AM   #1
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Default Stock futures fall as Chevron warning sparks jitters

Reuters - U.S. stock index futures pointed to a lower open on Friday after Chevron Corp warned about its second-quarter earnings, raising the specter of a weaker-than-expected second-half economic recovery and anemic corporate profits.




Stock futures fall as Chevron warning sparks jitters
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Old 07-11-2009, 01:51 AM   #2
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Red face

Don't believe the pre-mature reports of recovery, its still a long way off...

Stocks down for 4th straight week
July 10, 2009: Chevron's profit warning drags on blue chips ahead of an onslaught of quarterly reports. Dow and S&P 500 slide for fourth straight week.
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Blue chips slipped Friday after a profit warning from Chevron dragged on oil stocks, but the Nasdaq managed modest gains for the day at the end of a down week for Wall Street. The Dow Jones industrial average (INDU) lost 37 points, or 0.4%. The S&P 500 (SPX) index fell 3 points, or 0.4%. The Nasdaq (COMP) rose 3 points, or 0.2%. The Dow and S&P 500 both closed lower for their fourth straight week. The Nasdaq closed lower for the third of four weeks.

Stocks have surged last spring as investors bet that the worst of the recession had already happened. But recent signs that the slowdown is far from over have driven markets lower. Since peaking on June 11 with an advance of 40% off its March 9 lows, the S&P 500 has lost 7%. Alcoa began the second-quarter reporting period Wednesday, announcing a narrower-than-expected quarterly loss. Results really pick up next week, when Goldman Sachs, JPMorgan Chase, Intel and General Electric all report.

S&P 500 companies are expected to see profits decline by 36% from a year ago, according to the latest figures from Thomson Reuters. In the first quarter, investors responded well to results that met, let alone beat, lowered forecasts. While the bar is set pretty low for the second quarter too, just meeting expectations won't be enough this time around. "Investors are going to expect companies to hit the high end of forecasts," said Jack Ablin, chief investment officer at Harris Private Bank. "They want to see revenue growth and tangible evidence of improvement."

Oil:
See also:

What's killing banks on Main Street?
July 10, 2009: Bad loans are only one part of the problem; disastrous investments and risky funding sources have also helped to bring about the latest batch of bank failures.
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On just about every Friday afternoon, bank regulators announce the latest batch of bank failures...they've shuttered 52 so far this year and the pace could well pick up. Behind these causalities is a dangerous mix of risky funding techniques and loans to local businesses that simply went bad.

Most of the banks that have failed so far this year were ultimately done in by the large number of loans they issued to local residential and commercial real estate developers, who in turn were hit by the flagging economy. For example, when Nevada's Silver State Bank failed last September approximately two-thirds of its entire loan portfolio consisted of real estate development and commercial construction loans.

Other banks simply succumbed to broader economic factors that were beyond their control. When milk prices suffered a steep decline earlier this year, many Colorado dairy producers found themselves unable to make good on their loan obligations, which only further squeezed ailing lender New Frontier. Regulators closed the Greeley, Colo.-based bank in April.

And with the commercial real estate market and small business sectors still struggling, some experts worry that the lenders that service them will be hit particularly hard in the months ahead. "We are seeing more stress on the commercial real estate side than at the end of last year," said Karen Dorway, president and director of research at the bank rating and research firm Bauer Financial.

Lots of liquidity
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