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Stock futures weaken

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Traders are looking at a lower open as stock futures head to their lowest levels of the overnight session after Dow component Eastman Kodak (NYSE:EK) $31.99 warned on upcoming Q2 earnings, saying results were adversely impacted by Asian sales. The company said it now sees Q2 EPS of $0.25-$0.35, which is well below the Street's estimates of $0.68. The news saw EK fall to $28.12 over the New York ECN.

Broker Morgan Stanley (NYSE:MWD) $49.69 sees its shares slip to $48.01 in pre-market trade after the company reported Q2 earnings of $0.71, which excluded a $0.16 per share aircraft impairment charge. Excluding the charge, MWD beat estimates by $0.03 per share.

Bear Stearns (NYSE:BSC) $82.47 rose 3 cents to $82.50 after it beat EPS estimates by 33 cents. The company said it earned $2.05 per share in the latest quarter, while revenues fell 9% year- over-year to $1.46 billion (consensus $1.37 billion). The company also announced it will increase its common stock cash dividend over last quarter by 17.65% to $0.20 per share.

Shares of PeopleSoft (NASDAQ:PSFT) $17.15 are jumping higher at $18.70 after Oracle (NASDAQ:ORCL) $13.34 raised its bid to buy the rival software maker for $19.50 per share in cash, or $6.3 billion.

S&P futures (sp03u) currently trade down 2.8 points to 1,006.80, NASDAQ futures (nd03u) are lower by 2.5 points at 1,237.00, while Dow futures (dj03u) are off 37 points at 9,255.

Fair value for the S&P 500 today is $-1.18. That price will not change during the session. HL Camp & Company has their computers set for program buying at $0.42 and set for program selling at $-2.02.

Foreign Markets

Japan's Nikkei-225 added to Tuesday's gains and actually traded above the 9,100 for the first time since December. Nissan Motor jumped 4.5% and traded a 13-year high on hopes for a recovery in exports to the United States. Meanwhile, Hong Kong shares gave back recent gains on thoughts that stocks may have gotten carried away as global economic fundamentals remained uncertain.

Drug and oil stocks are helping hold the FTSE-100 above the 4,200 for the first time since December of last year, while banker Abbey National fell 2.3% after reporting a steep drop in investment sales to retail customers.

Asia/Pacific
Hong Kong.......Hang Seng.........9,970....-60.....-0.60%
Japan...........Nikkei 225........9,092....+59.....+0.66%
Taiwan..........Taiwan Weighted...4,999....+25.....+0.52%
Europe
France..........CAC 40............3,215....+14.....+0.46%
Germany.........DAX...............3,299....+13.....+0.41%
Switzerland.....Swiss Market......5,003....+52.....+1.06%
United Kingdom..FTSE 100..........4,207....+17.....+0.42%

Jeff Bailey

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