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For the second day in the row, the market was up due to positive earnings reports. The Dow was up by 37.03 points closing at 10,498.59 this afternoon. Additionally, the S&P rose 5.66 points closing at 1,174.07, while the Nasdaq gained 26.14 points to close at 2,046.09.

After a good day yesterday, the Dow was again today due to concern about earnings reports. After uncertain reports, the Dow fell 31.19 points to close at 10,467.40. The Nasdaq closed at 2,047.15 after rising 1.06 points, while the S&P rose 0.48 points to close at 1,174.55. Investors are hoping for positive news tomorrow before the weekend begins.

Microsoft, the world’s largest software maker, doubled their second quarter profits due to lower stock based compensation costs. With sales of Windows for corporations and the popularity of the Xbox video console helping the company beat their expected profits. Microsoft net income rose to $3.46 billion from $1.55 billion last year after sales rose 6.5% to top off at $10.8 billion.

Proctor & Gamble, the largest U.S. household goods maker, also reported good news today with their announcement that due to high sales in Asia, second quarter profit rose 12% to $2.04 billion. With increased prices for Folgers coffee and detergents made last year to counter commodity costs including a 60 percent jump in coffee bean prices, Proctor & Gamble was able to pull in a large profit. Chief Executive A.G. Lafley has begun expanding marketing for mid-priced products in developing market such as China. With this increased focus, P & G may be a winner for investors.

AT&T Corp., the largest U.S. long distance phone provider, stocks jumped today by 7.4% after rumors began circulating that they were in talks with SBC Communications Inc. once again concerning a possible merger. Although the merger was once called “unthinkable,” analysts say that now the merger is definitely a possibility. At the same time, SBC prices dropped as investors became concerned over the possibility of taking on a company with shrinking revenue while still adjusting to the purchase of Cingular Wireless LLC and AT&T Wireless Services Inc.

After rolling out their newest model, the updated 737, this week, Boeing also had great news today as they announced a $7.2 billion order for sixty 7E7s from China. This is biggest order for the company’s new model and the first order from this country. With concerns on the rise as to the potential success of the 7E7, Boeing rejoiced to have the large order from the expanding country.

All the best,
Manuel Jesus-Backus
The Portfolio Crafter