Stocks lost their fire in mid-morning trading, easing off after a solid early run-up.

Truck parts makers, housewares and steel led the upside. Telecom and metal products distributors head downhill.

At 10:54 a.m. ET, the NYSE composite was still up 0.3%, after being up 1.1% earlier. The Nasdaq was down 0.1% at 10:54 a.m. ET. The Dow was up 0.2% and the S&P 500 had moved up less than 0.1%.

Volume was tracking higher acros the board.

Foreign markets were generally mixed. The Shanghai composite, China’s largest exchange, closed up a comparatively mild 0.7%. Tokyo’s Nikkei 225 lost 0.2% and London’s FTSE 100 racked up an unusual 2.0% gain as the yen and the dollar slipped vs. the euro.

Crude oil was up 88 cents, nearing the $78-a-barrel mark.

Tech leaders Apple AAPL and Amazon.com (NASDAQ:AMZN) AMZN slid 3% and 4%, respectively.

Crane maker Manitowoc MTW gapped up on heavy trade, adding 4.80 to 80.86. Second quarter earnings rose 85%, above analysts’ views. The company also raised its ’07 earnings guidance by 30%. Manitowoc shares dipped last week after mining equipment maker Joy Global (NASDAQ:JOYG) JOYG missed forecasts and cut guidance. Manitowoc stock was still 23% below its July 16 high and well below its 10-week moving average.

ON Semiconductor ONNN also gapped up, gaining 1.49 to 12.50 after the company just edged out Q2 EPS estimates. The stock remained at the top of its trading range, despite the company saying it expects Q3 sales to undercut analyst views by about 6%. ON reported that product prices and margins were under pressure. Tte 12% jump pushed the stock to a seven-year high on huge volume.

Another gap-up, CF Industries CF added 4.40 to 62.12. The nitrogen fertilizer maker reported Q2 earnings up 114%, well above views. The 8% move furthered a rebound off the stock’s 10-week moving average, leaving it just below its July 16 high.

10:15 a.m. ET Update: Stocks Open Sharply Higher

By Ed Carson

Stocks opened higher on earnings, M&A activity and less investor fear.

At 10:06 a.m. ET, the Nasdaq, Dow and S&P 500 rose 0.9%, the NYSE composite climbed 1% and the small-cap S&P 600 advanced 1.2%.

Gains cooled somewhat after the 9:45 a.m. ET release of the Chicago purchasers’ index showed Midwest manufacturing growth slowed sharply in July. ISM’s national factory index is due out on Wed.

But stocks picked up again at 10 a.m. ET, when consumer confidence unexpectedly soared to a 6-year high in July. Construction spending declined in June due to weak home building.

Before the open, income, spending, inflation and labor cost data came in roughly in line with forecasts.

Keep in mind that even if the market holds the morning’s early gains, it still will only be the second day of a rally attempt.

You need to wait until at least the fourth day for the powerful gains on higher volume to show that mutual funds and other big institutions are getting back in.

Better results from GMAC, GM’s old finance arm, and Indymac Bancorp. (NYSE:IMB) IMB which specializes in alt-A mortgages — known as liar loans — helped ease credit risk fears that have roiled financial markets in recent days.

GM GM jumped 5% on its much better-than-expected Q2 results.

Dow Jones DJ jumped 9% to 56.40 on growing confidence that enough of the controlling Bancroft family will support News Corp.’s (NYSE:NWS) $5 billion, or $60-a-share bid. Shares had fallen 5% Monday on indications that Rupert Murdoch will fall just short of buying the parent of the Wall Street Journal.

Wendy’s WEN jumped 6% to 35.76 after billionaire Nelson Peltz said his Triarc Cos. (NYSE:TRY) TRY is willing to bid $37-$41 a share for the burger chain, though he says a Wendy’s committing is thwarting a deal.

Buffalo Wild Wings BWLD rose 5.5%. The high-flying casual eatery is rallying ahead of profit results after the close today. Chipotle Mexican Grill (NYSE:CMG) CMG dipped 1% ahead of results, though that fast-Mex chain has held up very well during recent market woes.

Under Armour UA shot up 15% to a new high after the athletic apparel maker reported Q2 profit more than doubled — much better than forecasts for a 40% decline. Sales growth picked up to 51% instead of forecasts for a deceleration to 32%.

Tennant Co. TNC gapped up 8% to a new high after the maker of industrial floor maintenance equipment said profit rose 15%, beating forecasts for flat earnings. Sales rose 9%, slightly below views.

NCR Corp. NCR rose 4% after the maker of cash registers and ATMs on stronger than expected Q2 results.

Sun Micro SUNW jumped 7% on much stronger-than-expected profits, though sales were flat, the 4th straight quarter of deceleration. The server maker has had a long, hard road and is only a $5 stock, but it’s still a huge tech company.

Hologic HOLX rose 2% after edging past Q2 profit forecasts. The mammography imaging firm is in the process of buying larger women’s diagnostic firm Cytyc CYTC, which appeared to miss profit and sales forecasts slightly.

Nursing care provider Amedisys AMED rose 5% on better-than-expected profit and sales growth.

DXP Enterprises DXPE, an industrial products distributor with strong energy sector ties, crashed 23%. Q2 profit came in well below expectations.

IAC/Interactive Corp. IACI gapped down 4% to a 10-month low after falling short on the top and bottom lines.

9:15 a.m. ET Update: Market On Track For Strong Open

By Vincent Mao

Stock futures pointed to a sharply higher open Tuesday on strong GM earnings, calmer credit markets and some takeover talk. The Nasdaq is up 13 points, the S&P 500 up 10 points and the Dow up 84.

In economic news, personal income rose 0.4% in June, slightly below expectations. Personal spending ticked up 0.1% as expected.

The Fed’s favorite inflation gauge, the core personal consumption expenditure index, rose 0.1% for a fourth straight month in June, below views of 0.2%. On a year-over-year basis, the PCE is up 1.9%, the lowest in three years and within the Fed’s comfort zone of 1% to 2%.

Dow component General Motors (NYSE:BGM) GM charged up nearly 6% in pre-market trading. The automaker delivered Q2 earnings that far exceeded analysts’ estimates.

Fellow Dow stock Johnson & Johnson (NYSE:JNJ) JNJ, said it’s restructuring its drug and stent-making units. Johnson & Johnson will cut it global work force by 3%-4%.

DuPont DD, another Dow member, said it was accelerating its $5 billion stock buyback program. Last week the chemicals giant missed Q2 profit forecast.

B/E Aerospace BEAV delivered Q2 earnings excluding items ahead of views. The maker of aircraft interiors said profit jumped 62% to 39 cents a share, 2 cents ahead of views. Revenue rose 47% to $398.2 million beating estimates of $390 million.

CB Richard Ellis Group CBG late Monday said Q2 earnings excluding one-time charges jumped 94% to 66 cents a share vs. views of 41 cents. The property investment firm also boosted its full-year outlook. Shares rose about 9% in the premarket.

Coach COH was trading higher in the premarket. The hand bag and accessories maker fiscal fourth-quarter income and sales ahead of views. It raised its fiscal 2008 guidance to $2.06 a share on sales of $3.16 billion. Thomson Financial expected $1.68 a share on sales of $2.61 billion.

Marathon Oil MRO agreed to buy Canada’s Western Oil Sands (TSX:WTO) for $5.56 billion in cash and stock. Marathon also reported a drop in Q2 profit — and a $2 billion buyback. Marathon shares were indicated higher.

Superior Energy Services SPN late Monday delivered a 47% rise in second-quarter profit, beating views. Sales climbed 52% to $396.8 million, also above views.

Newstex ID: IBD-0001-18553122

Originally published in the July 31, 2007 version of Investor’s Business Daily.

Copyright (c) 2007, Investor’s Business Daily, Inc. All rights reserved. This article is protected by United States copyright law and may not be reproduced, distributed, transmitted, displayed, published or broadcast without the prior written permission of Investor’s Business Daily, Inc. You may not alter or remove any trademark, copyright or other notice from copies of the content.
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