Opening Bell Report
The markets opened higher as oil prices retreated from record levels while the financial sector stabilized. The Dow rose 25 points to 11,628 while Nasdaq surged 26 points to 2330.
On the upside
Washington Mutual (NYSE: WM) posted $3.3 billion in losses, but a favorable credit rating from S&P eased worries among investors. Overall, the banking sector continued to rally with shares of Citigroup (NYSE: C) and Wachovia Bank (NYSE: WB) among the morning's biggest gainers.
General Motors (NYSE: GM) reported a 5% decline in 2nd quarter vehicle sales. An increase in global demand nearly offset the weakness in the U.S. market. Investors snapped up the stock, a Dow component.
EMC (NYSE: EMC) posted 2nd quarter results that beat expectations due to record demand for its data storage products and services.
On the downside
Business software maker VMware (NYSE: VMW) which is partially owned by EMC reported higher revenues and earnings due to strong international demand. However, the company offered modest guidance for the current quarter. Analysts promptly downgraded the stock as investors sold off.
ConocoPhillips (NYSE: COP) reported more than $5.4 billion in profits on $71.4 billion in revenues as oil prices surged. However, the stock fell as production levels declined versus year-ago levels.
Boeing (NYSE: BA) posted lower profits blaming the shortfall on a delayed military plane contract. The stock continued to retreat as worries lingered about a slowing global economy and more delayed purchases.
On the upside
Washington Mutual (NYSE: WM) posted $3.3 billion in losses, but a favorable credit rating from S&P eased worries among investors. Overall, the banking sector continued to rally with shares of Citigroup (NYSE: C) and Wachovia Bank (NYSE: WB) among the morning's biggest gainers.
General Motors (NYSE: GM) reported a 5% decline in 2nd quarter vehicle sales. An increase in global demand nearly offset the weakness in the U.S. market. Investors snapped up the stock, a Dow component.
EMC (NYSE: EMC) posted 2nd quarter results that beat expectations due to record demand for its data storage products and services.
On the downside
Business software maker VMware (NYSE: VMW) which is partially owned by EMC reported higher revenues and earnings due to strong international demand. However, the company offered modest guidance for the current quarter. Analysts promptly downgraded the stock as investors sold off.
ConocoPhillips (NYSE: COP) reported more than $5.4 billion in profits on $71.4 billion in revenues as oil prices surged. However, the stock fell as production levels declined versus year-ago levels.
Boeing (NYSE: BA) posted lower profits blaming the shortfall on a delayed military plane contract. The stock continued to retreat as worries lingered about a slowing global economy and more delayed purchases.
In the broad market, advancing issues outpaced decliners by a
margin of more than 2 to 1 on both the NYSE and on Nasdaq. The Russell
2000 which tracks small cap stocks rose 7 points to 723.
