Australian, New Zealand Dollars Rise as U.S. Stock Gain Lifts Carry Trade

(Bloomberg) -- The Australian and New Zealand
dollars gained for a second day against the yen as a rally in
U.S. stocks attracted investors to higher-yielding assets funded
by loans from Japan.

The two currencies headed for weekly gains, recovering from
two-month lows, as the Dow Jones Industrial Average had the
first two-day gain in two weeks. New Zealand's 7.75 percentage
point and Australia's 5.75 point interest-rate premium over
Japan make the currencies favorites for so-called carry trades.


Read more at Bloomberg Currencies News

U.S. Stocks Gain on M&A, Earnings; GlobalSantaFe, Merck & Co. Shares Rise

(Bloomberg) -- U.S. stocks rallied the most in a
week on $35 billion in acquisitions and Merck & Co.'s better-
than-forecast earnings.

GlobalSantaFe Corp., the second-biggest offshore oil and
gas driller, climbed to a record after agreeing to be bought by
larger rival Transocean Inc. Merck, the third-largest U.S.
drugmaker, had its steepest gain since April and accounted for
almost a third of the Dow Jones Industrial Average's advance.


Read more at Bloomberg Stocks News

Emerging-Market Bonds Advance as Investors Shrug Off U.S. Subprime Concern

(Bloomberg) -- Emerging-market bonds rose after
gains in U.S. and European stock markets suggested renewed
demand for riskier securities.

Concern about rising subprime mortgage losses last week
prompted investors to reduce their appetite for high risk
assets, including developing nation debt. The Standard & Poor's
500 Index and Dow Jones Industrial Average increased 0.5
percent today, while Europe's Dow Jones Stoxx 600 Index gained
0.3 percent today.


Read more at Bloomberg Emerging Markets News

U.S. Stocks Rise on Earnings; IBM Leads Dow Average, S&P 500 to Records

(Bloomberg) -- U.S. stocks gained after
International Business Machines Corp. and Bank of America Corp.
reported earnings that topped analysts' estimates.

IBM, the world's biggest provider of computer services,
climbed the most since 2003 and led the Standard & Poor's 500
Index and Dow Jones Industrial Average to records after saying
software acquisitions boosted results. Bank of America, the
second-largest U.S. bank, rose on private-equity gains and
investment-banking revenue growth.


Read more at Bloomberg Stocks News

U.S. Stocks Retreat on Subprime, Earnings Concerns; Intel, Pfizer Decline

(Bloomberg) -- U.S. stocks fell after Bear Stearns
Cos. told investors there's little value left in its two failed
hedge funds while Intel Corp. and Pfizer Inc. said competition
hurt earnings.

Financial shares were the biggest drag on the Standard &
Poor's 500 Index after Bear Stearns said ``unprecedented
declines'' in securities used to bet on subprime mortgages wiped
out the funds. Intel, the world's biggest chipmaker, and Pfizer,
the largest drugmaker, led the Dow Jones Industrial Average down
from a fourth-straight record.


Read more at Bloomberg Stocks News

U.S. Stocks Drop as Jobs Growth Tops Forecast; Microsoft Shares Decline

(Bloomberg) -- U.S. stocks fell, paring a weekly
gain, after signs of a tightening labor market heightened
concern that economic growth will stoke inflation.

Verizon Communications Inc., General Motors Corp. and
American Express Co. led the Dow Jones Industrial Average lower
for a second day. Microsoft Corp., the world's biggest software
maker, dropped after it said repairs to its Xbox 360 game
console will cost as much as $1.15 billion.


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U.S. Stocks Erase Gains; S&P 500 Declines for Fourth Time in Five Days

(Bloomberg) -- U.S. stocks declined and the
Standard & Poor's 500 Index slid for the fourth time in five
days, dragged down by energy shares after the price of oil fell.

The S&P 500 lost 1.29, or 0.1 percent, to 1496.45 as of
2:26 p.m. in New York. The Dow Jones Industrial Average added
10.48, or 0.1 percent, to 13,362.53, helped by rallies in Merck
& Co. and Altria Group Inc. The Nasdaq Composite Index was
little changed at 2577.11.


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Dow Average Futures Advance as Bond Yields, Oil Drop; GM, Blackstone Gain

(Bloomberg) -- Dow Jones Industrial Average futures
rose after bond yields fell and oil prices dropped.

General Motors Corp. climbed after Goldman, Sachs & Co.
advised clients to buy shares of the biggest U.S. automaker
because the United Auto Workers union may offer larger-than-
expected concessions. Blackstone Group LP, the private-equity
firm valued at $38 billion after its initial public offering June
22, also gained.


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U.S. Stock-Index Futures Pare Losses; Ford and Sapient Advance in Europe

(Bloomberg) -- U.S. stock-index futures recouped
losses. Shares of Ford Motor Co. and Sapient Corp. led gains
among stocks traded in Europe.

Standard & Poor's 500 Index futures expiring in September
added 1.1 to 1508.6 at 11:31 a.m. in London after falling as much
as 3.8 earlier. Dow Jones Industrial Average futures decreased 3
to 13,418. Nasdaq-100 Index futures advanced 1.5 to 1919.5.


Read more at Bloomberg Stocks News

U.S. Stocks Fall on Concern Higher Rates Will Hurt Profits, Takeovers

(Bloomberg) -- U.S. stocks fell after the bear
market in bonds pushed yields to a five-year high and increased
concern that the pace of takeovers may have peaked along with
corporate profits.

AT&T Inc., JPMorgan Chase & Co. and Wal-Mart Stores Inc. led
the Standard & Poor's 500 Index and Dow Jones Industrial Average
to their first decline in three days. All 14 real-estate
companies in the S&P 500 and every homebuilder retreated on
speculation higher yields foreshadow slower economic growth.


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Yen Strengthens Against Euro as Drop in Stock Markets Fuels Risk Aversion

(Bloomberg) -- The yen advanced for a third day
versus the euro as declines in global stock markets caused
investors to sell higher-yielding assets they bought with money
borrowed in Japan.

Japan's currency yesterday gained the most in almost two
weeks after the Dow Jones Industrial Average had the biggest drop
in almost a month, prompting traders to pare so-called carry
trades. European equity markets slid the most in two months on
concern the central bank will add to yesterday's quarter point
interest-rate increase.


Read more at Bloomberg Currencies News

U.S. Stocks Retreat on Inflation Concern; Exxon, IBM Shares Lead Decline

(Bloomberg) -- U.S. stocks tumbled for a second day
on growing concern inflation is accelerating.

Exxon Mobil Corp., International Business Machines Corp. and
Cisco Systems Inc. led the Standard & Poor's 500 Index to its
biggest two-day drop since March. DuPont Co. had the steepest
decline in the Dow Jones Industrial Average.


Read more at Bloomberg Stocks News