"we expect GDP to plummet 2.5% in 4Q and see a similar decline in 1Q. In all, we have shaved our 2009 GDP forecast to -0.5% a full percentage point lower that where it was previously, while 2008 is broadly unchanged at 1.5%."

Analyst TJ Marta at RBC says weakness in LEI "stemmed primarily from in M2, stock prices and jobless claims" and "the series has experienced worse declines (than recently) only during recessions."

The stock market trades near the unchanged mark, on what has been a slow start to the busiest week in the second quarter earnings reporting season.
More than 150 S&P 500 companies are set to report their earnings this week. According to Thomson Financial, second quarter earnings are expected to fall 17%, largely due to a 81% drop in financials. Of the 88 S&P 500 that have already reported earnings, 73% have topped expected, 9% have beat, and 18% have fell short of estimates.

Based on data from offshore operator reports submitted as of 11:30 a.m. CST today, personnel have been evacuated from a total of 4 production platforms, equivalent to 0.6% of the 717 manned platforms in the Gulf of Mexico." Also 1 rig was evacuated. No porduction was shut-in so far.

The yen traded near a record low against the euro as Bank of America Corp. said second-quarter profit declined less than analysts estimated.
The pound dropped versus the euro as a report showed U.K. house prices fell in July for the first time since data began in 2002. Bank of America, the largest U.S. consumer and home lender, became the fourth of the nation's five biggest banks to post better-than-estimated results.
``The world looks a little more peaceful for the time being,'' said Alan Ruskin, head of international currency strategy at RBS Greenwich Capital Markets in Greenwich, Connecticut. ``But longer-term concerns about the U.S. economy haven't diminished.''
Bank of America's net income fell to $3.41 billion, or 72 cents a share, the Charlotte, North Carolina-based bank said today in a statement. The average estimate of 21 analysts surveyed by Bloomberg was 54 cents.
The bank added $2.2 billion to loan loss reserves. The world's biggest banks and brokerages have disclosed $447 billion of writedowns and losses because of a credit-market slump triggered by mortgage defaults.
JPMorgan & Chase Co., Citigroup Inc. and Wells Fargo & Co. reported second-quarter results last week that exceeded analysts' estimates.
Futures on the Chicago Board of Trade showed an 8 percent chance the Federal Reserve will increase its 2 percent target rate for overnight lending between banks by a quarter-percentage point at its Aug. 5 meeting, compared with 12 percent odds a week ago.
``The Fed has simply not been in a position to raise interest rates and fight inflation, so people have been shunning the dollar,'' said Neil Mellor, a currency strategist in London at Bank of New York Mellon Corp.
Leading economic indicators dropped 0.1 percent in June after a revised 0.2 percent decline the prior month, the Conference Board reported today. The decrease matched the median forecast of 62 economists surveyed by Bloomberg News.
Currency trading volume today may be about 75 percent of normal levels because of a public holiday in Japan.

"Look to potential peak in energy prices and inflation; look for data confirming weaker growth, including US double dip, weakness in AXJ, and a recoupling in rest of world."

Weather likely to force some evacuations of oil rigs and platforms for safety reasons as storm approaches.

The major indices continue to trade with modest losses. The tech sector is under pressure, with heavy-weights Google (GOOG 469.83, -11.49), Apple (AAPL 162.24, -2.91), and IBM (IBM 127.85, -2.04) acting as drags. Last week, Google reported lower-than-expected earnings, while IBM topped expectations. Apple is set to announce its earnings after the close.
In commodity trading, grains (-2.2%) are down as corn falls 3.0% and soybeans slip 2.2%. The CRB Index (-0.2%) is nearly flat, as the losses are being offset by a 0.8% gain in crude and a 0.6% gain in gold.

Wall Street posted modest gains Monday as investors found confidence in better-than-expected Bank of America results, soothing jitters about the battered financial sector in the wake of the mortgage meltdown.
However, gains were tempered as oil climbed as much as $3 a barrel amid fresh concerns over Iran. Investors were also digesting news that Yahoo and activist investor Carl Icahn have settled their proxy dispute.
Bank of America reported better-than-expected earnings, even as it revealed that its profit plunged 41% in the most recent quarter. The Charlotte, N.C.-based company reported earnings of $3.41 billion, or 72 cents a share, during the second quarter.
Shares of Bank of America were up nearly 11%.
Other banks have reported better-than-expected financial results recently. Citigroup reported a $2.5 billion quarterly loss Friday, which was actually ahead of Wall Street's grimmer projections. On Thursday, Merrill Lynch reported its fourth straight quarterly loss. JPMorgan Chase and Wells Fargo also reported lower profits, but both banks were ahead of Wall Street's expectations.
Leading indicators The Conference Board announced Monday that its index decreased for the second consecutive month in June by 0.1%, in line with a consensus of economists surveyed by Briefing.com.
Energy prices Oil prices rebounded sharply Monday, following the largest four-day slide in oil trading history, as traders focused on a breakdown of nuclear talks with Iran and on Tropical Storm Dolly, which is making its way into the Gulf of Mexico. Light, sweet crude oil for August delivery rose 47 cents to $129.35 a barrel.
The Web portal Yahoo announced a settlement with investor Carl Icahn over its lineup of candidates for board of directors, including the addition of the activist investor himself. Yahoo said the board is being expanded to 11 members, one of whom will be Icahn, along with two other added positions.
Shares of Yahoo slipped by more than 2% in morning trading.
Apple was scheduled to report results after the close. According to Thomson/First Call's survey of analysts, the electronic products maker is expected to report net income of $972.6 million, or $1.08 per share, on sales of $7.4 billion.
Shares of Apple were off slightly in morning trading.
In the bond market, Treasury prices slumped, raising the yield on the benchmark 10-year note to 4.10% from 4.08% late Friday. Bond prices and yields move in opposite directions.
COMEX gold for August delivery rose $4.40 to $962.40 an ounce.

The major indices continue to trade in a range-bound manner, near the unchanged mark. The Dow touches negative territory, with Merck (MRK 36.55, -1.13) acting as a major drag.
The energy sector is up 1.4% as crude prices climb 0.9% to $130.00 per barrel. The sector is enjoying a bit of a rebound bid after falling 9.4% over the last two weeks.
The gains come despite disappointment over an earnings report from Weatherford (WFT 39.49, -1.19). The oilfield equipment and services provider reported a 26% rise in earnings per share, although the results fell short of Wall Street's estimate.

Economist Brian Wesbury at FTA says he ests Q2 real growth at +3%, "more bullish than almost any other economist." He says hsg weakness has not spread and rest of the economy is "downright strong, reflecting relatively low tax rates and loose monetary policy." FTA says real consumption grew at a 2.0% annual rate in Q2 and business investment, trade and govt will add to growth.

Weakness in consumer discretionary (-1.1%), especially retailers (-1.8%), is being offset by strength in financials (+2.0%). As a result, the stock market is trading with a slight gain near the unchanged mark.
The S&P 500 has stuck to a tight trading range this session -- at its high it was up 0.6% and was up 0.1% at its low.

HFE economist Ian Shepherdson notes LEI's "hefty 0.3% downward revision to May, to -0.2% from +0.1%" and says Jun LEI "was saved from a much larger drop by the leap in building permits ahead of the new NYC multifamily home construction code on July 1. The rise in permits added 0.3%, which will reverse in July."

The stock market extends its opening gains, with eight of the ten economic sectors in positive territory. Crude oil prices are unchanged at $128.89 per barrel, a substantial retreat from their session high of $132.05.
Buying interest is concentrated within the financial sector, which is benefiting from a strong 9.8% gain in shares of Bank of America (+2.69). Outside of financials, stocks are trading near the unchanged mark, considering healthcare (-0.2%) is the worst performing sector with only a slight loss.
According to the Conference Board, June leading indicators fell 0.1%, which is in-line with expectations. For the most part, the report is a collection of previously announced economic indicators, including jobless claims, money supply, average workweek, building permits and stock prices. As a result, the report typically has a limited impact on the market.

“There is a new reality in the US: less consumer, more unemployment, profit squeeze. The oil price shock is to blame.”

EUR/USD: $1.5850, $1.5900, $1.5800
USD/JPY: Y106.50, Y106.00, Y105.90, Y107.10
EUR/JPY: Y169.80
GBP/USD: $1.9750
AUS/USD: $0.9785, $0.9635

“LEI (due at 10am) should be -0.2% because of two surprises: permits shot up 11.6% and the consumer price index rose 1.1%, implying a weaker real money stock. The increase in
permits is more of a surprise, making -0.2% a better estimate."

Futures suggest a modestly higher start to the trading day (S&P futures +4.7, Nasdaq futures+9.0). Crude oil is trading up 1.9% at $131.29 per barrel. Merck and Schering-Plough are delaying their earnings reports until after the stock market close instead of this morning, according to Reuters.com. The delay will allow the companies to provide an update regarding a new study of the cholesterol drug Vytorin.
In earnings news, Bank of America reported earnings of $0.72 per share, which is $0.19 better than the consensus estimate. In deal news, European pharmaceutical company Roche Holdings offered to acquire the remainder of Genentech , around 44%, for $43.7 billion, or $89 per share in cash.

Resting back on broken resistance at $1.9950, the level earlier providing a hurdle as rate recovered off early European lows of $1.9908. Below $1.9950 and rate can ease on toward $1.9910/00. Stops noted be3low this area, which if triggered exposes stronger support at
$1.9880. Offers $1.9975/80, stronger between $1.9990/2.0000.

Has given back 40-points after pressing to a fresh high in early NY trade at Y169.91, with traders noting strong offers ahead of Y170.00 barrier interest capping for now.

The dollar was little changed against the yen after Bank of America Corp. said profit declined less than analysts estimated.
The dollar declined against the euro on speculation reports on U.S. home sales and durable-goods orders will encourage the Federal Reserve to delay raising interest rates.
The currency also weakened versus the yen for the first day in four after U.S. Treasury Secretary Henry Paulson told CBS News yesterday the economy is in a ``challenging time'' and probably will have slow growth for months because of higher oil prices. The pound fell after a private industry report showed U.K. house prices dropped the most since at least 2002.
``There are still grave concerns about the slowing U.S. economy,'' said Masashi Kurabe, head of currency sales and trading at Bank of Tokyo-Mitsubishi UFJ Ltd. in Hong Kong, a unit of Japan's largest publicly traded lender by assets. ``I can't be wild with joy over the dollar yet.''
The pound slid for a second day as a Rightmove Plc report showed U.K. house prices fell 2 percent in July from a year earlier, the first annual drop since Britain's most-used property Web site started measuring them in 2002.
Bank of England policy maker David Blanchflower said in an interview with the Guardian newspaper that the U.K. economy is entering a recession that may last more than a year and the central bank must lower interest rates to support the economy.
``Blanchflower said there may be three to four quarters of contraction, and the housing data were weak,'' said Lee Wai Tuck, a currency strategist at Forecast Pte Ltd. in Singapore. ``We'll likely see downward pressure on the pound.''
Sales of previously owned homes in the U.S. declined to a 4.93 million annual pace in June, from 4.99 million in May, as the housing slump headed for a third year, according to the median estimate of economists surveyed.
The National Association of Realtors will release the report on July 24. A day later, the Commerce Department will say sales of new houses dropped to an annual pace of 503,000 from 512,000 in May, a separate survey shows. Sales of existing and new homes are down 35 percent from their July 2005 peak.
Losses in the dollar may be limited after U.S. central bank policy maker Gary Stern said the Fed shouldn't wait for housing and financial markets to stabilize before raising rates.
``We're pretty well-positioned for the downside risks we might encounter from here,'' Stern, president of the Federal Reserve Bank of Minneapolis, said in an interview on July 18. ``I worry a little bit more about the prospects for inflation.''

EUR/USD Eased off earlier highs of $1.5907 to $1.5850. Offers $1.5900, $1.5920/30, stronger $1.5950, bids $1.5830/20.
GBP/USD consolidated within the $1,9950-$1,9975
USD/JPY rose from Y106.35 to Y107.16.

The index of leading economic indicators fell in June for the first time in four months, economists forecast a report today will show, signaling growth is likely to slow over the next three to six months. Leading Indicators is due at 1230 GMT.

The dollar declined against the euro on speculation reports on U.S. home sales and durable-goods orders will encourage the Federal Reserve to delay raising interest rates.
The currency also weakened versus the yen for the first day in four after U.S. Treasury Secretary Henry Paulson told CBS News yesterday the economy is in a ``challenging time'' and probably will have slow growth for months because of higher oil prices. The pound fell after a private industry report showed U.K. house prices dropped the most since at least 2002.
``There are still grave concerns about the slowing U.S. economy,'' said Masashi Kurabe, head of currency sales and trading at Bank of Tokyo-Mitsubishi UFJ Ltd. in Hong Kong, a unit of Japan's largest publicly traded lender by assets. ``I can't be wild with joy over the dollar yet.''
The pound slid for a second day as a Rightmove Plc report showed U.K. house prices fell 2 percent in July from a year earlier, the first annual drop since Britain's most-used property Web site started measuring them in 2002.
Bank of England policy maker David Blanchflower said in an interview with the Guardian newspaper that the U.K. economy is entering a recession that may last more than a year and the central bank must lower interest rates to support the economy.
``Blanchflower said there may be three to four quarters of contraction, and the housing data were weak,'' said Lee Wai Tuck, a currency strategist at Forecast Pte Ltd. in Singapore. ``We'll likely see downward pressure on the pound.''
Sales of previously owned homes in the U.S. declined to a 4.93 million annual pace in June, from 4.99 million in May, as the housing slump headed for a third year, according to the median estimate of economists surveyed.
The National Association of Realtors will release the report on July 24. A day later, the Commerce Department will say sales of new houses dropped to an annual pace of 503,000 from 512,000 in May, a separate survey shows. Sales of existing and new homes are down 35 percent from their July 2005 peak.
Losses in the dollar may be limited after U.S. central bank policy maker Gary Stern said the Fed shouldn't wait for housing and financial markets to stabilize before raising rates.
``We're pretty well-positioned for the downside risks we might encounter from here,'' Stern, president of the Federal Reserve Bank of Minneapolis, said in an interview on July 18. ``I worry a little bit more about the prospects for inflation.''

Drops back below $1.5880 to $1.5860 on release of Bank Of America earnings results, coming in at a better $0.72 per share vs expectations of $0.536.

European equity bourses have reversed earlier losses on back of squeeze higher in mining and oil stocks, amid bargain-hunting and on speculation commodity prices were due another run
higher after several sessions of losses. However, financial stocks remain under pressure, with HBOS a leading decliner after it announced poor results from its rights issue. HBOS reported that it has received valid acceptances in respect of around 8.29% of the new shares offered
to shareholders pursuant to the 2 for 5 rights issue announced Apr. 29. CAC-40 is up 37pts (+0.8%), Xetra-DAX is up 54pts (+0.7%) and FTSE-100 is up 33pts (+0.6%).

WTI Nymex crude oil remains firm after US National Hurricane Center in its last update said that Tropical Storm Dolly is about to move into the Gulf of Mexico, with maximum sustained winds of 50 mph. WTI Nymex crude oil is at $130.75, up $1.87 in the electronic session.

Resistance 3: Y108.40
Resistance 2: Y107.70
Resistance 1: Y107.00
Current price: Y106.65
Support 1: Y106.00
Support 2: Y105.40
Support 3: Y104.60
Comments: Techs on dollar hasn’t changed. Key resistance is around channel line from Jun 25 on Y107.00/10. Above the target is around Y107.70 and Y108.40 (Jun 25 high). Friday’s lows comes at Y106.00 (support). Stronger level is near 50% Fibo on Y105.40. Below losses may widen to Y104.60.

Resistance 3: Chf1.0380
Resistance 2: Chf1.0310
Resistance 1: Chf1.0250
Current price: Chf1.0205
Support 1: Chf1.0180
Support 2: Chf1.0130Support 3: Chf1.0080Comments: Dollar retreats a bit, holding under the channel line from Jul 16 on Chf1.0180. break under will widen losses to Chf1.0130 and then – to Chf1.0080. Strong resistance is around Chf1.0250 (Jul 17 high). Above the key level comes at channel line from Jun 13 on Chf1.0310. Break above will fuel bullish momentum and open the way to Chf1.0380.

Resistance 3: $2.0130
Resistance 2: $2.0070
Resistance 1: $2.0000
Current price: $1.9965
Support 1: $1.9900
Support 2: $1.9840
Support 3: $1.9800
Comments: Sterling rises. Resistance comes at Friday’s highs on $2.0000 with a break above will target $2.0070 (Jul 17 high). Stronger level comes at $2.0130 (Jul 15 high). Support is around Friday’s lows on $1.9900. Below correction may extend to $1.9840 and $1.9800/10.

Resistance 3:$1.6030
Resistance 2: $1.5950
Resistance 1: $1.5910
Current price: $1.5883
Support 1: $1.5800
Support 2: $1.5780
Support 3: $1.5610
Comments: Techs on euro hasn’t changed. Euro holds within the range, keeping optimistic tone. Strong resistance is around upper level of the channel at $1.5900/10. Above the target comes at Jul 16 high on $1.5950, further – near life-time high on $1.6030. Strong support comes near channel line from Jun 13 on $1.5830. Below rate may dip to $1.5780 with stronger support is around Jul 07 low on $1.5600/10.

EUR/USD: $1.5850, $1.5900, $1.5800
USD/JPY: Y106.50, Y106.00, Y105.90, Y107.10
EUR/JPY: Y169.80
GBP/USD: $1.9750
AUS/USD: $0.9785, $0.9635

EUR/USD touched a high of $1.5908, with reported offers to $1.5910 able to cap this latest upside push. Some analysts has suggested that rate may retreat to $1.5825. Stops above $1.5950.

USD/CHF breaks back below Chf1.0200, with traders now reporting bids coming in around the Chf1.0180 level. Techs also note near-term support at Chf1.0177 (5-day m/a).

EUR
Bids: $1.5820, $1.5800
Offers: $1.5875/85, $1.5920/25, $1.5950

JPY
Bids: Y106.50, Y106.00
Offers: Y107.00, Y107.20

GBP
Bids: $1.9900, $1.9880, $1.9855/45

Offers: $1.9960/70, $2.0000

The dollar declined against the yen for the first day in four on speculation reports on U.S. home sales and durable-goods orders will encourage the Federal Reserve to delay raising interest rates.
The currency also traded near a record low versus the euro after U.S. Treasury Secretary Henry Paulson told CBS News yesterday the economy is in a ``challenging time'' and probably will have slow growth for months because of higher oil prices.
The pound fell after an industry report showed U.K. house prices dropped the most since at least 2002. The pound slid for a second day as a Rightmove Plc report showed U.K. house prices fell 2% in July from a year earlier, the first annual drop since 2002.

EUR/USD held within the $1.5800/80 range.
GBP/USD printed high on $1.9985 before sliding to the lows on $1.9905.
USD/JPY fell from Y106.95 to Y106.50.

Sales of previously owned homes in the U.S. declined to a 4.93 million annual pace in June, from 4.99 million in May, according to the median estimate of economists. The National Association of Realtors will release the report on July 24.

Japan stocks fell, capping the Topix index's longest weekly losing streak in seven years, as tumbling crude prices sent oil explorers lower. Shares extended declines after a newspaper report U.S. mortgage lender Freddie Mac will raise $10 billion in new equity.
Inpex Holdings Inc., Japan's biggest oil explorer, sank to the lowest in more than two months after crude declined 11 percent in three days. Sony Corp. led a drop by electronics producers on concern the global economy is weakening.
Sony, the maker of the PlayStation 3 game console, lost 1.8 percent to 4,310 yen. Matsushita Electric Industrial Co., the world's largest maker of consumer electronics, declined 2.1 percent to 2,130 yen.
Manufacturing in the Philadelphia region shrank in July for an eighth-straight month as orders and employment sank, adding to evidence the U.S. economy has yet to begin a recovery.
Mizuho lost 0.6 percent to finish at 541,000 yen. Mitsubishi UFJ Financial Group Inc., the country's biggest lender by value, declined 0.4 percent to 951 yen after rising as much as 3 percent in the morning.
The Nikkei recorded a 1.8 percent drop in the last five days, while the Topix fell 2.6 percent. Both gauges have declined for the past six weeks, which is the longest stretch of losses for the Topix since September 2001.

European stocks posted the first weekly gain since May, after Citigroup Inc.'s smaller-than-estimated loss outweighed disappointing earnings at Merrill Lynch & Co. and Microsoft Corp.
Royal Bank of Scotland Group Plc and BNP Paribas SA led the Dow Jones Stoxx 600 Banks Index to its biggest three-day advance in five years. Air France-KLM Group, Europe's largest airline, and Daimler AG, the world's second-biggest maker of luxury cars, also rallied for a third day as oil posted a 10 percent weekly decline.
The Stoxx 600 added 1.6 percent to 280.69 Friday, extending this week's gain to 3.8 percent. Shares climbed as Citigroup joined JPMorgan Chase & Co., Wells Fargo & Co. and Nokia Oyj this week in reporting better-than-expected earnings.
Royal Bank, the second-biggest U.K. bank, jumped 10 percent to 197.6 pence. BNP, the largest French bank, gained 6.6 percent to 62.50 euros.
Citigroup reported a second-quarter net loss of $2.5 billion, compared with a loss of $3.67 billion estimated by analysts
Merrill, the third-biggest U.S. securities firm, yesterday posted a net loss of $4.65 billion, exceeding the firm's $1.96 billion first-quarter loss. Microsoft, the world's biggest software maker, posted fourth-quarter profit that trailed analyst estimates and gave a disappointing forecast.
Air France climbed 4.7 percent to 15.88 euros. British Airways Plc, the region's third-biggest, rallied 6.5 percent to 242 pence.
Daimler gained 3.8 percent to 41.09 euros.

Most U.S. stocks fell Friday, led by technology shares, as disappointing results at Google Inc. and Microsoft Corp. overshadowed Citigroup Inc.'s smaller-than- estimated loss, extending the yearlong earnings slump.
The Standard & Poor's 500 Index lost 1.86 point, or 0.2 percent, to 1,258.46 Friday, paring its gain this week to 1.6 percent. The Dow average climbed 36.64, or 0.3 percent, to 11,483.30.
The Nasdaq Composite Index fell 29.04, or 1.3 percent, to 2,283.26.

Sixty-seven S&P 500 companies that reported second-quarter earnings missed the analyst estimate by 0.9 percent on average, according to data compiled by Bloomberg. As of the close of trading yesterday, results were running 6.7 percent ahead of forecasts. Analysts project profits fell 16 percent during the period, the fourth consecutive decline. That would be the longest streak in six years, Bloomberg data show.
The combined value of global equities has fallen by about $13.5 trillion since October as more than $447 billion in credit- related losses prolong the global economy's slump and rising commodity prices stoke inflation.
U.S. stocks have fared better than European and Asian equities, measured by the performance of broad benchmark indexes. The S&P 500's 14 percent drop this year compares with losses of 17 percent for the U.K.'s FTSE 100 Index, 21 percent for the German DAX Index and 15 percent for Japan's Topix Index.
Better-than-expected reports from Citigroup, JPMorgan Chase & Co. and Wells Fargo & Co. this week eased investor concern about how much more capital financial institutions need to raise because of the U.S. housing slump. S&P 500 companies in that industry surged more than 20 percent since July 15, the steepest three-day gain on record.
Citigroup gained $1.55, or 8.6 percent, to $19.52 for the biggest advance in the Dow average. The biggest U.S. bank by assets, which is still down 33 percent in 2008, posted a loss of 49 cents a share from continuing operations. That was less than the 60-cent loss analysts estimated on average in a Bloomberg survey. Citigroup took about $7.2 billion of credit-market writedowns.
Merrill Lynch & Co. fell 76 cents to $29.97, limiting financials' advance. The third-biggest U.S. securities firm reported its fourth straight quarterly loss. Merrill lost $4.65 billion as it added $9.7 billion to its tally of credit-market writedowns. Analysts at Citigroup Inc., Oppenheimer & Co. and Wachovia Corp. had predicted the company would book charges of at least $5 billion.
Google fell $50.87, or 9.5 percent, to $482.57. The company posted second-quarter profit of $3.92 a share, excluding costs such as stock compensation. Analysts estimated $4.73 on average in a Bloomberg survey. Google reported a slowdown in the growth of consumers clicking on Web ads and higher-than-expected research and legal expenses.
Microsoft retreated $1.90, or 6.9 percent, to $25.62. The world's biggest software maker reported 2.3 percent less fourth- quarter profit than analysts estimated. The company, whose shares have fallen 28 percent this year, predicted first-quarter earnings as low as 47 cents a share. Analysts polled by Bloomberg anticipated 49 cents a share, on average.
Advanced Micro Devices Inc. fell 13 percent to $4.62, its biggest drop since October 2006 and the most in the S&P 500. The chipmaker reported a wider loss after writing down the value of its 2006 purchase of ATI Technologies Inc. by $880 million. Chief Executive Officer Hector Ruiz resigned, passing the reins to Chief Operating Officer Dirk Meyer.
The S&P 500 Information Technology Index slumped 1.6 percent, its first retreat in four days.

The dollar headed for a weekly advance against the euro, rebounding from a record low on signs U.S. investment banks will withstand credit-market losses stemming from the collapse of the subprime-mortgage market.
The U.S. currency rose versus the yen today after Citigroup Inc., the biggest U.S. bank, reported better-than-expected second-quarter results.
``The risk of a systematic meltdown has been reduced,'' said Benedikt Germanier, a currency strategist in Stamford, Connecticut, at UBS AG, the world's second-largest foreign- exchange trading firm. ``It lends some support to the dollar.''
The dollar traded at $1.5834 per euro in New York Friday, compared with $1.5863 Thursday and $1.5938 at the end of last week. It dropped to an all-time low of $1.6038 on July 15. The currency climbed to 106.88 yen from 106.28 yen Thursday. The Japanese currency traded at 169.23 per euro, from 168.58 and 169.46 on July 11.

Crude oil fell for a fourth day of the last week, capping the biggest weekly decline in more than three years, as the Bush administration's decision to participate in nuclear talks with Iran eased concern of a possible military conflict. A slowing global economy, faltering U.S. fuel demand and rising supplies helped push futures to their biggest weekly dollar decline ever. Prices tumbled 11% last week on reduced tension between the U.S. and Iran, which holds the world's second- largest oil reserves.

Iran has said it may blockade the Strait of Hormuz, the shipping lane for a fifth of the world's crude, if its nuclear facilities are attacked. The country is the second-biggest producer in the Organization of Petroleum Exporting Countries.
U.S. fuel consumption fell 3% in the first half of 2008, the biggest decline for the period in 17 years, as high prices and a slowing economy curbed demand, the American Petroleum Institute said.

Resistance 3: Y108.40
Resistance 2: Y107.70
Resistance 1: Y107.00
Current price: Y106.81
Support 1: Y106.00
Support 2: Y105.40
Support 3: Y104.60
Comments: Techs on dollar hasn’t changed. Key resistance is around channel line from Jun 25 on Y107.00/10. Above the target is around Y107.70 and Y108.40 (Jun 25 high). Friday’s lows comes at Y106.00 (support). Stronger level is near 50% Fibo on Y105.40. Below losses may widen to Y104.60.

Resistance 3: Chf1.0380
Resistance 2: Chf1.0310
Resistance 1: Chf1.0250
Current price: Chf1.0223
Support 1: Chf1.0180
Support 2: Chf1.0130
Support 3: Chf1.0080
Comments: Dollar retreats a bit, holding under the channel line from Jul 16 on Chf1.0180. break under will widen losses to Chf1.0130 and then – to Chf1.0080. Strong resistance is around Chf1.0250 (Jul 17 high). Above the key level comes at channel line from Jun 13 on Chf1.0310. Break above will fuel bullish momentum and open the way to Chf1.0380.

Resistance 3: $2.0130
Resistance 2: $2.0070
Resistance 1: $2.0000
Current price: $1.9918
Support 1: $1.9900
Support 2: $1.9840
Support 3: $1.9800
Comments: Sterling weakens. Resistance comes at Friday’s highs on $2.0000 with a break above will target $2.0070 (Jul 17 high). Stronger level comes at $2.0130 (Jul 15 high). Support is around Friday’s lows on $1.9900. Below correction may extend to $1.9840 and $1.9800/10.

Resistance 3:$1.6030
Resistance 2: $1.5950
Resistance 1: $1.5900
Current price: $1.5855
Support 1: $1.5800
Support 2: $1.5780
Support 3: $1.5610
Comments: Euro holds within the range, keeping optimistic tone. Strong resistance is around upper level of the channel at $1.5890/00. Above the target comes at Jul 16 high on $1.5950, further – near life-time high on $1.6030. Strong support comes near channel line from Jun 13 on $1.5830. Below rate may dip to $1.5780 with stronger support is around Jul 07 low on $1.5600/10.

High Low Close
EUR/USD 1.5886 1.5804 1.5839
USD/JPY 106.99 105.95 106.93
GBP/USD 1.9995 1.9905 1.9981
USD/CHF 1.0251 1.0173 1.0221

EUR/JPY 169.45 168.21 169.39
EUR/GBP 0.7958 0.7920 0.7925
GBP/JPY 213.70 211.55 213.64
GBP/CHF 2.0449 2.0318 2.0428

Change % Change Last
Nikkei 225 -84.25 (-0.65%) 12803.70
Topix -11.22 (-0/7%) 1252.43
DAX 30 +111.38 (+1.78%) 6382.65
САС 40 +73.37 (+1.74%) 4299.36
FTSE 100 +90.10 (+1.70%) 5376.40
Dow +49.91 (+0.44%) 11496.57
Nasdaq -29.52 (-1.28%) 2282.78
S&P +0.36 (+0.03%) 1260.68
10YR 96 -23/32 4.08% 98 9/32
OIL NYMEX -0.41 (-0.32%) $128.88

Japan Marine Day
14:00 USA Leading indicators (June) -0.3% 0.1%