Russian, Chinese Stocks Look Even Weaker

Bob Pisani has the day off. This post is from his producer, Robert Hum.

U.S. stock futures point towards a flat open this morning, following the market’s best week since April. The dollar index is a bit higher this morning, while commodities are slightly lower. The dollar index has been up for six straight days, prior to today.

Keep an eye on more weakness in Russian and Chinese stocks today. Over the weekend, tensions escalated between Georgia and Russia, as fighting continued. In China, the Shanghai composite hit new lows again, falling 5 percent as inflation worries remain in focus. The country’s PPI came in with a greater-than-expected gain of 10 percent from a year ago. China’s benchmark index is now down more than 9 percent over the past two trading days.


Waste Managementraised its all-cash offer for Republic Servicesto $37 per share, a 9 percent increase from its prior $34 per share bid. Republic Services had previously spurned the initial offer as it remained committed to its own $6.2 billion offer to acquire rival Allied Waste.

After the close on Friday, Berkshire Hathawayreported Q2 earnings fell 7.6% on weak insurance results. Insurance underwriting operating earnings fell 43%. Despite the weakness, earnings still beat analysts’ estimates.

The president of UPS’s international business shot down reports that the company was weighing a bid for the Dutch package delivery company TNT. The executive told Reuters that such an acquisition would be “something that devalues our shares.” However, others believe acquiring TNT would provide UPS with a greater presence in the European and Asian markets

Diebold announced preliminary Q2 results that beat analysts’ estimates. It saw strong demand for its ATMs and raised its full-year guidance. Diebold’s stock is up 3 percent pre-open.

Finally, FBR lowered its price target for Fannie Mae, as it believes the company would need to raise $5-$10 billion in additional capital.

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