"Have confidence that if you have done a little thing well, you can do a bigger thing well too." - Joseph Storey
Morning News of Note:
- AIG: co's lawyers in talks w/ SEC and NY AG to settle cahrges that AIG polished its financial results in recent years; negotiations at earl ystage but partial settlement might be reached at end of July; NY AG source indicated that eventual settlement may incl relatvely modest fine but not a lg restitution fund -- WSJ
- COAL: India facing chronic and worsening shortage of coal; Coal India unable to keep up with rising demand; ironic considering India has 4th lgst coal reserves, 92 bln tons -- AWSJ // McCloskey Coal report est global coking coal supplies may exceed deamnd after 2007 as producers open new mines and ports increase capcity; est miners to add 84m tons of new coking coal capcity before 2010, 90m tons by 2015; est global coking coal prices to remain little changed through 2007 -- Australian Financial Review // Chinese 1H coal imports up 56% y/y to 12.1m tons
- U.S. and U.K. governments: have drawn up plans to withdraw troops from Iraq, the Mail on Sunday said, citing a leaked memo by British Defense Secretary John Reid. The U.S. would cut force levels from 176,000 to 66,000 by early 2006 under the plans, while the U.K. would reduce its forces from 8,500 to 3,000, the newspaper said. The Ministry of Defense confirmed the authenticity of the document, according to the Mail. The memo refers to a dispute between commanders in Iraq, who are cautious about withdrawal, and U.S. commanders at the Pentagon "who favor a relatively bold reduction,'' the newspaper said.
- WMT: reaffirms July SSS guidance up 3-5%; food sales outpaced general items for first time in 5wks (Saturday)
Market Comments: The market is strong out of the gate this am, building on Friday's gain. The Nasdaq is leading the way (see my post below from this weekend). Earnings season starts in earnest this week, so expect plenty of surprises and volatility. You should check when your stocks are reporting earnings, so that you are not suprised by anything.
While most tech stocks are higher, GOOG is conspicuously in the red. This stock has been a leader all year, so I would like to see it partcipate today. I sold my shares into the last runup, and have yet to decide if I want to repurchase them before the company reports.