CNN/Money  
graphic
Markets & Stocks
graphic
Banking on earnings
Better-than-expected profit reports from Citigroup, B of A, Intel upgrade, give lift to equities.
July 14, 2003: 7:21 AM EDT
By Mark Meinero and Meghan Collins, CNN/Money Staff Writers

NEW YORK (CNN/Money) - Stocks prepared to charge out of the gate Monday, as sentiment ran high ahead of the opening bell on better-than-expected earnings from two of the top U.S. banks, Citigroup and Bank of America, and an analyst upgrade of Intel.

Paper maker Boise Cascade's $1.3 billion agreement to office supplies retailer OfficeMax is also likely to garner some attention for U.S. stock markets Monday.

At 7:15 a.m. ET, futures pointed to a higher start for the major indexes, which are coming off a winning week.

Before the start of trading, positive earnings from some top financial names boosted investor enthusiasm.

Citigroup (C: Research, Estimates), the nation's leading financial services company, posted a second-quarter profit of 83 cents a share, up from 75 cents a year earlier and three cents above Wall Street's estimate, according to a consensus of analysts surveyed by earnings tracker First Call.

Citigroup shares rose 1.2 percent in European trading Monday.

 
Click above for details of Friday's advance

Meanwhile, another of the top national banks, Bank of America (BAC: Research, Estimates), said it earned $1.80 a share for the quarter, well above analyst's $1.57 average estimate and coming above last year's $1.40 per share for the same quarter.

Bank of America shares rose nearly 3 percent in European trading.

Some regional banking leaders including BB&T (BBT: Research, Estimates) and M&T Bank (MTB: Research, Estimates) are also set to report Monday.

Investors have been closely watching earnings reports for the second quarter for any signs that conditions in corporate America may be improving. U.S. equities markets have seen a huge rally since the start of the year on the hope that better times are ahead for the economy in the second half.

Another important factor in Monday's trading could be a Merrill Lynch upgrade of No. 1 chipmaker Intel (INTC: Research, Estimates) to "buy" from "neutral." Intel's shares gained nearly 1 percent in European trading. Intel is set to report is quarterly results Tuesday after the close of trading.

The tech sector has been a leader in the rally in the first half of 2003, and investors continue to draw enthusiasm from tech bellwethers.

Merger madness continued Monday. Boise Cascade (BCC: Research, Estimates), signaling a move out of its core paper products business, announced that it has agreed to acquire No. 3 office products retailer OfficeMax (OMX: Research, Estimates) for nearly $1.2 billion. The cash-and-stock deal values OfficeMax at $9 a share, a 25 percent premium from its closing price of $7.18 Friday.

The Dow Jones industrial average begins the week close to 9,120 after gaining 0.5 percent for the week, thanks in large part to Friday's 83-1/2 point rally. The Nasdaq composite index is close to 1,734 following last week's 4.2 percent advance; that includes an 18-point burst Friday. (see chart for details)

Asian-Pacific stocks ended higher Monday, with Tokyo's Nikkei up 1.3 percent. European markets mostly rose in midday trading. (Check the latest on world markets)

Among U.S. stocks trading in Europe, Walt Disney (DIS: Research, Estimates) rose nearly 2 percent. The entertainment company had the No. 1 picture at the box office this weekend, the action adventure "Pirates of the Caribbean: The Curse of the Black Pearl," which took in a surprisingly strong $46.4 million.

Treasury prices turned lower in early trading, with the 10-year note yield holding at 3.64 percent from late Friday. The dollar slid against the yen and euro.

Brent oil futures rose 13 cents to $29.10 a barrel in London, where gold slid in early trading.  Top of page




  More on MARKETS
Why it's time for investors to go on defense
Premarket: 7 things to know before the bell
Barnes & Noble stock soars 20% as it explores a sale
  TODAY'S TOP STORIES
7 things to know before the bell
SoftBank and Toyota want driverless cars to change the world
Aston Martin falls 5% in its London IPO




graphic graphic

Most stock quote data provided by BATS. Market indices are shown in real time, except for the DJIA, which is delayed by two minutes. All times are ET. Disclaimer. Morningstar: © 2018 Morningstar, Inc. All Rights Reserved. Factset: FactSet Research Systems Inc. 2018. All rights reserved. Chicago Mercantile Association: Certain market data is the property of Chicago Mercantile Exchange Inc. and its licensors. All rights reserved. Dow Jones: The Dow Jones branded indices are proprietary to and are calculated, distributed and marketed by DJI Opco, a subsidiary of S&P Dow Jones Indices LLC and have been licensed for use to S&P Opco, LLC and CNN. Standard & Poor's and S&P are registered trademarks of Standard & Poor's Financial Services LLC and Dow Jones is a registered trademark of Dow Jones Trademark Holdings LLC. All content of the Dow Jones branded indices © S&P Dow Jones Indices LLC 2018 and/or its affiliates.

Most stock quote data provided by BATS. Market indices are shown in real time, except for the DJIA, which is delayed by two minutes. All times are ET. Disclaimer. Morningstar: © 2018 Morningstar, Inc. All Rights Reserved. Factset: FactSet Research Systems Inc. 2018. All rights reserved. Chicago Mercantile Association: Certain market data is the property of Chicago Mercantile Exchange Inc. and its licensors. All rights reserved. Dow Jones: The Dow Jones branded indices are proprietary to and are calculated, distributed and marketed by DJI Opco, a subsidiary of S&P Dow Jones Indices LLC and have been licensed for use to S&P Opco, LLC and CNN. Standard & Poor's and S&P are registered trademarks of Standard & Poor's Financial Services LLC and Dow Jones is a registered trademark of Dow Jones Trademark Holdings LLC. All content of the Dow Jones branded indices © S&P Dow Jones Indices LLC 2018 and/or its affiliates.