NEW YORK ( TheStreet) -- Here are the top stock market headlines for the morning of Tuesday, July 13, 2010.
Tuesday's Early Headlines
- Trade Deficit Unexpectedly Widens to $42.3 Billion in May -- The Commerce Department said Tuesday that the trade deficit swelled to $42.3 billion in May from $40.3 billion the month before, disappointing analysts who predicted that the trade deficit would shrink to $39.4 billion. It was the largest the deficit has been since November 2008. The increase in the deficit came due to a 12.1% rise in shipments from China, as U.S. imports were up 2.9% during May.
- BP Attaches New Cap on Gulf Oil Spill -- BP (BP) said it has lowered and installed a new cap on the Gulf of Mexico oil leak Monday, which has been gushing oil since an April 20 explosion. BP plans to start tests Tuesday, gradually shutting the valves to see if the oil stops or if it starts leaking from another part of the well, The Associated Press reports.
- Three Republicans Back Financial Reform Bill -- Sen. Scott Brown (R., Mass.) and Sen. Olympia Snowe (R., Maine) said they will join fellow Republican Senator Susan Collins in supporting the revised financial reform legislation. Brown said Monday that he would now support the bill after the $19 billion bank tax had been removed from the reconciled bill. Senate Majority Leader Harry Reid (D., Nev.) said the legislation would be wrapped up this week, The Associated Press reports.
- Greece Raises $2 Billion in Bond Auction -- Greece on Tuesday raised €1.625 billion ($2 billion) through an auction of six-month Treasury bills, the first debt auction the debt-plagued country has held since receiving bailout loans from fellow euro-zone countries and the International Monetary Fund. Greece's Public Debt Management Agency said the sale of 26-week treasury bills was oversubscribed 3.64 times, at an interest yield of 4.65%. That is up from the yield of 4.55% from a previous auction on April 13.
- Small Businesses More Pessimistic in June: NFIB -- The National Federation of Independent Business optimism index fell 3.2 points in June to a reading of 89. "The U.S. economy faces hurricane force headwinds and the government is at the center of the storm, making an economic recovery very difficult," Bill Dunkelberg, NFIB's chief economist, said in the release. The NFIB's index has been below a reading of 93 every month since January 2008 and below 90 for 23 of those 30 months, "all readings typical of a weak or recession-mired economy," the NFIB said.
Tuesday's Earnings Roundup
- Alcoa (AA) late Monday reported a second-quarter profit of 13 cents a share on revenue of $5.19 billion, above the consensus for a profit of 12 cents a share on revenue of $5.05 billion. The Dow component also raised its full-year projection for aluminum consumption to 12% from 10% based on this improved end-market demand.
- Infosys (INFY) posted a fiscal first-quarter profit of 57 cents a share on revenue of $1.36 billion, which was in line with the Thomson Reuters consensus estimate. For the full year, Infosys is forecasting a profit of $2.42 to $2.52 a share on revenue of $5.72 billion to $5.81 billion, compared to Wall Street's target of $2.48 a share on revenue of $5.67 billion.
- Intel (INTC) will report second-quarter financial results after the close of trading Tuesday. Analysts polled by Thomson Reuters are predicting a quarterly profit of 43 cents a share on revenue of $10.25 billion.
- YUM! Brands (YUM) will also release quarterly numbers after Tuesday's closing bell. Analysts are looking for earnings of 54 cents a share on sales of $2.54 billion.