AMR Corp. (NYSE: AMR), the parent of American Airlines, expects to record a non-cash charge of nearly $1.3 billion in the second quarter, the company said in a filing with the Securities and Exchange Commission. The company also indicated it may cut nearly 7,000 jobs, or 8% of its workforce.
A federal judge in New York ruled Tuesday that Google Inc. (NASDAQ: GOOG) doesn't have to turn over source code for the search function in its YouTube video service as part of an ongoing $1 billion copyright-infringement lawsuit filed by Viacom Inc. (NYSE: VIA), but it does have to turn over records of every video watched by YouTube users, including their login names and IP addresses, be turned over to the entertainment giant. If this doesn't seem like a consumer privacy violation, I'm not sure what is.
Meanwhile, Apple Inc. (NASDAQ: AAPL) is also encountering some law suits. This time CEO "Steve Jobs and other managers were accused in an investor lawsuit against the company of backdating stock-option awards to maximize their personal profit." According to Bloomberg, Shareholder Martin Vogel and co-plaintiff Kenneth Mahoney said in the new complaint that Apple executives hid the cost of the backdated options from shareholders, leading the company to file false financial statements.
Stock futures were mixed early Thursday morning, the last and shortened day of trading this week -- markets will close at 1 p.m. EDT. Oil, again, has reached new highs as investors awaited the ECB decision on interest rate. Wall Street is also anxious about the upcoming jobs report, especially after Wednesday the ADP employment figures were worse than expected. Today's session will likely be choppy.
Despite starting the day on a positive note Wednesday, U.S. stocks ended sharply lower after the ADP employment figures damped mood on the Street. Also, crude oil prices rose sharply and an analyst warned that General Motors (NYSE: GM) may have to consider bankruptcy at some point; GM stock closed below $10 a share. The Dow industrials tumbled 166 points, or 1.46%, entering bear territory -- down over 20%, the Nasdaq Composite lost 53 points, or 2.32%, and the S&P 500, fell 23 points, or 1.82% - the only major index still not in bear territory.
Soon, at 7:45 a.m. EDT, the European Central Bank will announce its decision on interest rates. The ECB is widely expected to increase rates, which in turn could further weaken the dollar, driving oil prices higher.
Then, at 8:30 a.m., the Labor Department will release the June payroll figures. Economists expect the unemployment rate to fall to 5.4% from 5.5% last month, but job losses are expected to rise to 60,000 positions, up from 49,000 in May, according to Briefing.com.
At 10:00 a.m., the June ISM services index will be released, and another decline is expected.
Soleil upgraded Alcoa (NYSE:AA) to "hold" from "sell", according toBriefing.com. The news service also reports that Citigroup upgraded Peabody Energy (NYSE:BTU) to "buy" from "hold".
D.A. Davidson raised it price target on Talbots (NYSE:TLB) from $7.50 to $12.50, according to the AP.
Douglas A. McIntyre is an editor at 247wallst.com.
Deutsche Bank (NYSE: DB) shares are trading 4.2% higher in premarket action after the bank, seeking to calm investors, said it expects a profit in its second quarter.
While AT&T Inc. (NYSE: T) unveiled its pricing strategy for Apple Inc. (NASDAQ: AAPL)'s 3G iPhone to go on sale July 11 with a $199 and $299 (with contract) price points as expected, Canadians are outraged over Rogers Communications Inc. (NYSE: RCI)'s 3G iPhone rates and have created an online petition that collected over 19,000 signatures already.
AstraZeneca (NYSE: AZN) rose in Europe and is rising over 2.7% in premarket trading after winning a court case against Teva Pharmaceutical (NASDAQ: TEVA) and the Sandoz unit of Novartis (NYSE: NVS) over patents on its Seroquel schizophrenia drug.
U.S. stock futures were higher Wednesday morning, as Wall Street could try to having yet another positive session. While Starbucks news of store closing and reports Microsoft may still be interested in Yahoo helped lift sentiment, UnitedHealth already issued a warning this morning. Employment data is also on tap before the market opens.
U.S. stocks finally ended higher on Tuesday. Surprisingly, it was car sales that helped the mood on the Street as as June sales came in not as bad as expected. The Dow industrials ended 32 points higher, or 0.28%, the S&P 500 added 4 points, or 0.38%, and the Nasdaq Composite added 11 points, or 0.52%.
Today, investors will have the ADP June private sector employment figures to chew on ahead of the government's report tomorrow. The employment report is expected to be released at 8:15 a.m. EDT. Then, at 10 a.m., May factory orders are due out.
Also on the docket today is weekly crude inventories, usually released at 10:30 a.m. EDT. While oil came off highs Tuesday due to a slightly stronger dollar, it again rose above $141 a barrel Wednesday, due to persistent supply concerns that has analysts warning of higher prices yet. An IEA report saying supplies will remain tight and demand will likely grow despite higher prices helped push prices higher.
Citi Investment Research maintained its "hold" rating on Biogen Idec (NASDAQ:BIIB) saying the firm "is poised to gain from higher prices for multiple sclerosis drugs," according to the AP.
Merrill Lynch downgraded GM (NYSE:GM) to "underperform" from "buy", according toBriefing.com. Bernstein upgraded Exxon Mobil (NYSE:XOM) to "outperform" from "market perform", the news service also reported.
Douglas A. McIntyre is an editor at 247wallst.com.
Deutsche Telekom (NYSE:DT) was upgraded to "overweight" from "neutral" at JP Morgan, according toMarketWatch. The financial news site also reports that France Telecom (NYSE:FTE) was upped to "buy" from "neutral" at Merrill Lynch.
Stifel Nicolaus & Co reiterated its "hold" rating on Campbell Soup (NYSE:CPB) ahead of the company annual meeting according to the AP.
Merrill Lynch resumed coverage of Home Depot (NYSE:HD) with an "underperform" rating, according toBriefing.com. The news service also reports that JP Morgan initiated Comcast (NASDAQ:CMCSA) with an "overweight" rating.
Douglas A. McIntyre is an editor at 247wallst.com.
Starbucks (NASDAQ: SBUX) recently began very wide distribution of Pike Place Roast. It tastes more like the coffee most people brew at home. It is inexpensive. It has drawn new customers to the coffee retailer.
And some people think it tastes like sewage.
According toThe Wall Street Journal, "the new strategy, which played down the company's more-established robust roasts, has touched off a debate about what customers think Starbucks should stand for: bold coffee for connoisseurs or a tamer brew for the masses?"
Starbucks founder Howard Schultz has been concerned about bringing the company back to it roots, the look and intimate feel of the company's early stores, but the new drink seems to run counter to that.
The Pikes Place product says much about what is wrong with Starbucks. Its appeal has been the originality of its products, but it needs coffee that will help its sales, which have been weak, grow again. Starbucks seems to be of two minds, which is never good for a company working on turning itself around.
With the economy in the dumps, what Starbucks does may not matter for now. Traffic is being hurt by consumer spending. The shares in the company are way down. Pike Place is just another cup of coffee.
Douglas A. McIntyre is an editor at 247wallst.com.
U.S. futures indicate a mixed to lower opening Monday morning.
Oil prices continue to serve as a powerful market mover, as oil surged past the $143 mark in Monday trading on the ICE Futures exchange in London. On Friday, oil futures charged to a record $142.99 before closing at $140.21.
Inflation in Europe rose to 4% for the month of June, higher than the estimate of 3.9%. Higher inflation comes even as economic growth is slowing, and makes an increase in interest rates by the European Central Bank more likely.
The U.S. Federal Reserve, however, is less likely to respond to higher inflation with a rate hike. Accordingly, the dollar continues to weaken as traders continue to move into the euro and yen.
Some analysts are now saying that the current market will likely resemble the 1974 bear market before all is said and done. Higher inflation and lower liquidity show no signs of changing direction, and the main question now is how long the bear market will last. Some pessimists are saying it could be a decade.
In stock news, Carl Icahn is planning to file a definitive proxy in his battle for Yahoo! Inc. (NASDAQ: YHOO) this week. The proxy should inform investors of just how far Icahn wants to go in shaking up Yahoo!'s management. For those wishing to keep up with Icahn's latest moves, be sure to check his blog regularly.
Alcatel-Lucent (NYSE:ALU) was raised to "neutral" from "underperform" at Merrill Lynch, according to24/7 Wall St. The financial website also reports that Whole Foods Market (NASDAQ:WFMI) was cut to "neutral" from "buy" at UBS.
Citigroup added Google (NASDAQ:GOOG) to its Top Picks Live list, according toBriefing.com. The news service reports that Time Warner (NYSE:TWX) was also added to the list.
Societe Generale raised its rating on BP (NYSE:BP) to "hold" from "sell" according toMarketWatch.
Since Apple Inc (NASDAQ: AAPL) is no longer insisting on revenue sharing from mobile operators selling its iPhone, China Mobile Ltd (NYSE: CHL) said this cleared the biggest hurdle in bringing the iPhone to mainland China. They just have to resolve some practical issues now.
KB Home (NYSE: KBH) shares climbed over 5.8% in after-hours trading Thursday. The builder is to report results this morning, a quarterly loss is expected.
Sony Ericsson, the joint venture between Sony (NYSE: SNE) and Ericsson (NASDAQ: ERIC) warned Friday it might not see any profit growth in the second quarter, due to slowing demand for some of its higher-priced phones and a delay in shipping new models to the market and will also experience a gross margin squeeze. ERIC shares are down about 6% in premarket trading.
Before the bell: Futures mixed ahead of ECB, Jobs data; oil nears $146; NVDA plunges
U.S. futures indicate a mixed to lower opening Monday morning. 
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