Peter Schacknow, Senior Producer, CNBC Breaking News Desk
The stock market is in the midst of a somewhat notable trend: more down days than up days, but positive overall. The major averages are coming off a week in which they were up only on Friday, but registered gains for the week — following a positive July which came despite the averages falling more often than they rose.
There are no economic stats out today, but investors will no doubt keep an ear out for any significant economic comments by Federal Reserve chairman Ben Bernanke, who’s set to give a 9 a.m. New York time speech to a conference in Cambridge, Massachusetts.
The pace of earnings season slows down a bit this week, though there are still a handful of notable companies set to report. This morning we’ll hear from Tyson Foods (TSN) and Cognizant Technology (CTSH) among others, and Chesapeake Energy (CHK) and Vornado Realty Trust (VNO) are among those set to release quarterly reports after the closing bell.
Berkshire Hathaway (BRKA, BRKB) is among the stocks we’ll watch this morning. Warren Buffett’s company earned $2,552 per share for the second quarter, above estimates of $1,777. Overall profits were down 9 percent from a year earlier, but operating earnings jumped 38 percent thanks to a significant improvement in Berkshire’s insurance operations.
AIG (AIG) is in the news once again, with the Treasury increasing the size of its planned sale of AIG shares. It’s agreed to sell nearly 164 million shares at a price of $30.50 per share. AIG is buying $98.3 million of those shares. The sale decreases Treasury’s stake in the insurer to 55 percent from 61 percent.
Knight Capital (KCG) will live to fight another day, with CNBC learning that Knight has struck an agreement for $400 million in financing from a group of investors. The investment will come through convertible preferred stock, and will involve firms such as Blackstone Group (BX), TD Ameritrade (AMTD), Stifel Nicolaus (SF) and Jefferies Group (JEF).
Sony (SNE) has been put on review by Moody’s for a possible ratings downgrade, because of concerns surrounding weak consumer sentiment, a stronger yen, and rising debt.
Teva Pharmaceutical (TEVA) has received an SEC subpoena, with the world’s largest generic drug maker being investigated over its compliance with U.S. anti-bribery laws. Teva says it’s cooperating with the investigation.
General Motors (GM) says its sales in China were up 15.1 percent in July from the same month last year, with sales for the first seven months of the year up 11.7 percent compared to a year earlier. GM makes vehicles in China through a joint venture partnership with SAIC and FAW Group.
Mattress makers such as Sealy (ZZ), Mattress Firm (MFRM), Tempur-Pedic (TPX) and Select Comfort (SCSS) could get a boost from a deal involving Serta brand maker National Bedding. Parent company AOT Bedding Super Holdings is selling a majority stake to private equity firm Advent International for a reported $3 billion.
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