Stocks Cut Major Losses to Finish Mixed

Word on the Street

• President Barack Obama moved closer to securing his second major legislative victory. The Senate voted 60-38 to limit debate and allow the legislation to move toward a final vote on the bill. The bill would set up a mechanism for liquidating failing financial firms whose collapse would shake markets.
• BP PLC (BP) began the test on its latest cap to the oil well that could staunch all or most of the gushing flow of crude that has been polluting the Gulf of Mexico for months. The test will take at least six hours and could last up to 48 hours.
• The first delivery of Boeing’s (BA) new 787 jetliner may get pushed into early 2011 because of inspections and instrument changes on the flight test aircraft. It’s the first time Boeing has acknowledged that problems encountered with production and quality issues could hurt the latest schedule laid out.
• JP Morgan Chase (JPM) reported that that its second-quarter profit jumped 76% as results were boosted by a $1.5 billion reduction in the group’s loan loss reserves. The bank said second-quarter earnings soared to $4.8 billion, or $1.09 per share, from $27.7 billion, or 28 cents per share, blowing past Wall Street’s expectations.
• U.S. June Producer Prices Fall – Producer prices fell for the third consecutive month as the PPI declined 0.5% in June after falling 0.3% in May. The entire decline can be attributed to a continued weakening in food prices, which fell 2.2%.
• TCF Financial Corp. (TCB) reported its 61st consecutive profitable quarter today. Net interest income rose nearly 13 percent to $176.5 million due to decreased rates paid on deposits and growth in loans and leases.
• Initial jobless claims dropped by 29,000 last week, according to the Department of Labor. It was the second straight week that initial claims dropped, a sign that the American jobs market may be starting to recover.
• Foreclosures Fall 5% – Foreclosures continued their slow decline in June, falling at the same month-over-month rate of 3% as in May. According to RealtyTrac, one of every 78 U.S. housing units, or 1.28% of the total, was subject to at least one foreclosure filing in the first six months of the year.

Other Interesting Tidbits

• Speaking Up for American Capitalism – Business has taken a pounding on Capitol Hill and at the White House and for the most part has remained silent. It’s time to make our case.
• Could the Dow fall to 1,000? – A recent dive in the market and some pessimistic predictions have investors running scared again. Here’s a look at some worst-case scenarios and how to prepare
• 3 Ways to Invest in the Small-Cap Rally – S&P recommends these funds because of their low volatility rating.