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Pisani: Tougher Earnings

Europe is up, as are U.S. stocks, on hope that the EU will complete talks with Greece on a financial aid package that could be announced this weekend.

Regardless. Everyone know this does nothing to alleviate the long-term problems, and there continues to be a widespread belief on the Street that the only viable solution is an eventual restructuring, where Greece defaults on its debt and offers to pay, say, 50 cents on the dollar.

Meanwhile, investors are getting nervous about China. The Shanghai Composite Index in down another 1.1 percent to its lowest level since October of last year.

Elsewhere, earnings a bit tougher this morning.

1) ExxonMobil earnings of $1.33 missed consensus, there appears to be some tax issues here. Exploration and Production was light, Chemicals was a bit stronger. Downstream beginning to recover (refining has been a disaster for everyone).

2) Potash reported earnings of $1.47, at the high end of their guidance and above consensus of $1.39.

Guidance for the full year was raised to $4.50-$5.25 from $4.00-$5.00 but is still well below consensus of $5.52. It seems clear the Street was expecting a more aggressive raise in guidance; while global shipments in 2010 are still below historic trend levels, it's likely that the company is lowballing guidance.

3) Starwood reported adjusted earnings from continuing operations of $0.13, above consensus of $0.02. Guidance for the current quarter and the full year are also above consensus—2010 was raised to $0.88, up from prior guidance of $0.63, and above consensus of $0.75. Revenue per available room (RevPAR) for the second quarter is expected to be up 9 to 11 percent.

4) Motorola up 7 percent in premarket trading after eking out a surprising profit in the first quarter, pulling in $0.02 a share, beating analysts' expectations of a loss of a penny. Motorola selling more smart phones than Wall Street anticipated after a business reorganization that was focused on Google software. The mobile phone company forecasting earnings of 3-5 cents a share for the second quarter.

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