Penny Stock Wallbusters

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Before the Bell: U.S. stock markets unsettled
Posted Aug 5th 2009 7:30AM by Jonathan Berr

U.S. stock markets may be poised to rise, extending their gains from earlier this week, as traders bet that the worst of the steepest economic decline since the Great Depression is ending. Then again, they may end their recent winning streak.

It's one of those days.

S&P Futures expiring in September were little changed as investors digested the latest batch of earnings news. These recent quarterly reports have been largely viewed positively. Some investors may be worrying if stock valuations have gotten too rich.

Better-than-expected earnings were reported from a variety of companies, including heavy equipment maker organic grocer Whole Foods Markets Inc. (WFMI) to Caterpillar Inc. (CAT) to consumer products maker Clorox Co. (CLX) and toymaker Hasbro Inc. (HAS). Consumers may be coming out of their funk, boosting spending by 0.4% in June, an inrease from 0.1% a month earlier.
Some media reports are arguing that back-to-school sales may be better than expected. Oil prices also dropped to near $71 on the New York Mercantile Exchange.

The leading indexes in Europe and Asia were mixed. Europe's Dax and FTSE 100 Index posted gains, while Japan's Nikkei and the Shanghai Composite Index in China fell. Profit-taking appeared to be a factor in Asia.

U.K. bank Lloyd's Banking Group Plc. (LYG) shares soared after it said provisions for bad loans will decline "significantly." Of course, it posted a first-half loss of 3.1 billion pounds ($5.2 billion), according to Bloomberg News. The news service also reported that the U.K. services and manufacturing sectors showed more robust growth than economists had expected.

Foreign firms are scrambling to tap into the Chinese stock market, which is up more than 90% this year. Among the companies seeking a listing is HSBC Holdings Plc., (HBC) which was founded in China and Hong Kong 144 years ago. China's $586 billion stimulus package is credited with the robust performance of the world's most populous country, though some economists argue that a second one is needed.