Yahoo!, Microsoft Confirm Search Deal. - Yahoo! (YHOO) and Microsoft (MSFT) - Get Report confirmed Wednesday they have sealed an Internet-search partnership under a 10-year agreement. Yahoo! will use Microsoft's Bing search-engine technology on its own sites under the pact.
Say-On-Pay Bill Wins Congressional Approval. - Legislation drafted by House Democrats won approval on Tuesday by a congressional committee, according to Reuters. The bill would give shareholders the right to cast non-binding, annual votes on executive pay and on special pay packages, such as golden parachutes, in instances of changes in corporate control, the report said.
Durable Goods Orders Data Mixed - The Census Bureau said that durable goods orders fell 2.5% in June, worse than the consensus for a decline of 0.5%. The 1.8% rise in May was revised to a gain of 1.3%. Excluding transportation, June orders jumped 1.1%, compared to economists' expectations for a 0.1% increase.
Beige Book, Treasury Auctions to Come. - The Federal Reserve's beige book report, which examines the conditions of the central bank's 12 districts, will make headlines after its 2 p.m. EDT release. Additionally, Wednesday will bring a $39 billion auction of 5-year Treasury notes. Wednesday's auction is the sixth of seven total Treasury auctions this week, with a $28 billion auction of 7-year notes still to come on Thursday.
Wednesday's Earnings Roundup
Time Warner (TWX) said it had adjusted second-quarter earnings of 45 cents a share, coming in ahead of the Thomson Reuters average estimate of 37 cents a share. Revenue in the quarter fell 9% to $6.8 billion, below the $6.97 billion consensus. Time Warner said it continues to expect 2009 full-year adjusted earnings to be flat compared with adjusted earnings of $1.98 a share in 2008. Analysts expect 2009 earnings of $1.99 a share.
Sprint Nextel (S) - Get Report reported a second-quarter loss of 13 cents a share, widening from a year ago and worse than the 2-cent-a-share loss analysts expected. Revenue fell 10.6% to $8.1 billion, in line with the Thomson Reuters estimate. Sprint said total wireless customers declined by about 257,000 in the second quarter.
ConocoPhillips (COP) - Get Report said it had second-quarter earnings of 87 cents a share, coming in 2 cents above the consensus estimate of 85 cents a share. Revenue was cut in half, falling to $35.4 billion. That was worst than the $39.1 billion consensus. ConocoPhillips said the decline was primarily due to lower estimated realized prices, partially offset by lower estimated taxes and higher estimated volumes.
General Dynamics (GD) - Get Report posted second-quarter earnings of $1.61 a share, 4 cents better than the Thomson Reuters average estimate. Revenue climbed 11% from a year ago to $8.1 billion, in line with forecasts. General Dynamics also raised its full-year 2009 guidance to a range of $6.05 to $6.15 a share, compared with estimates of $6.15 a share.
WellPoint (WLP) reported second-quarter adjusted earnings of $1.50 a share, ahead of the Thomson Reuters average estimate of $1.43 a share. Revenue slipped 1.4% to $15.27 billion, coming in shy of the $15.41 billion consensus. WellPoint issued full-year guidance for earnings of $5.06 to $5.12 a share on revenue of $60.6 billion, which may not be comparable to Wall Street's target of $5.68 a share and revenue of $61.28 billion.