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U.S. stock futures drifted lower Thursday morning on the heel of another big loss reported by AIG. With reports today that mortgages made in 2007 are going bad at a rapid pace, the blow to the financial system may be even deeper than Wall Street had estimated, and data on June pending home sales could give more information about the recent state of the housing market. Also in focus today will be July same-store sales announced by retailers, which could show a 2.2% gain due to stimulus checks and back-to-school shopping, as well as rate decisions by ECB and BOE. The latter already kept rates the same. Finally, rising oil prices could affect trading as well.

AIG (NYSE: AIG) posted its third straight quarterly loss Wednesday after the close. Analyst believe that this quarter's $5.56 billion recorded loss due to investments related to mortgages could continue in the next few quarters. AIG's results didn't just cause investors to dump the stock, but also caused overall jitters about financials. AIG shares are down over 9% in premarket trading. In Europe, Allianz, Axa, Aegon, three of the biggest insurers, also post lower earnings on asset writedowns.

Toyota Motor Corp. (NYSE: TM) reported a 28% profit fall in the quarter, 39% drop in operating profit. The company said the strong yen and rising costs of materials for the decline in addition to soft conditions in the U.S. all contributed to these results. While it said it plans to offset the declines by launching new vehicle models and stepping up production of popular models, it's unclear how successful that would be in light of softening economic conditions worldwide.

Staying with the auto industry, The Wall Street Journal reported that Chrysler and Nissan Motors (NASDAQ: NSANY) are in talks tabout jointly producing midsize cars, where Nissan would produce midsize sedans that Chrysler would sell in the U.S. under its own name.

U.S. stock futures were mixed Wednesday morning after Tuesday's big rally. Bigger-than-expected losses at mortgage lender Freddie Mac, which caused it to cut dividends, as well as lower profit at Time Warner dampened mood on Wall Street. Meanwhile, oil held above $119 ahead of inventory report later today, but crude futures were slightly higher.

Freddie Mac (NYSE: FRE), the second-largest U.S. mortgage-finance company, posted a larger fourth-quarter loss of $821 million, or $1.63 a share, than analysts estimated as delinquencies rose and cut its dividend to shore up capital. The common-share dividend will be reduced to 5 cents from 25 cents. Bloomberg writes that CEO Syron is "seeking to bolster capital and restore confidence after U.S. Treasury Secretary Henry Paulson was forced to step in with a rescue plan for Freddie and the larger Fannie Mae." So, first, I doubt investors have much confidence in Syron after reports surfaced he ignored warnings. Second, is Wall Street really surprised the mortgage buyer disappointed? That its credit-related expenses doubled from the previous quarter? Haven't we been there before? FRE shares are down 8.7% in premarket trading at last check.

Meanwhile, Time Warner Inc. (NYSE: TWX) also reported this morning, saying second-quarter earnings fell 26% to $792 million, or 22 cents per share (24 cents on adjusted basis), on declining subscriber fees at its AOL online unit and lower ad revenue at the Time publishing business. Revenue was 5% higher at $11.6 billion. Thomson Financial says analysts expected profit of 23 cents per share on revenue of $11.46 billion. TWX affirmed its full-year financial targets after revenue rose at its film, cable and networks segments.

Following the demand of one of Yahoo (NASDAQ: YHOO)'s largest shareholders, Capital Research Global Investors, to review the vote in last week's re-election of the Internet giant's board, Yahoo! has now released the corrected numbers this afternoon. To recount, Capital Research Global Investors couldn't understand how Jerry Yang received 85.4% supporting votes when the fund's 16% holding was withheld.

Yahoo! acknowledged the error, blaming it on a tabulation error by Broadbridge. The new count shows much more disdain for several members of the board. Specifically, CEO Yang went from 85.4% support to 66.3% in the new count, Roy J. Bostock and Ronald W. Burkle went from 79.5% and 81.2% respectively to 60.4% and 62.1% respectively.

While this doesn't change anything except to show the board doesn't have the same approval from shareholders, it seems there are still some open questions. Barron's Eric Savitz brings concerns from Mithras Capital, an investment firm that owns 1.7 million Yahoo shares, regarding 200 million fewer votes in this year's vote compared to votes in the past two years.

The possible explanation is that the ballots that voted the Icahn slate before his agreement with Yahoo's board were voided and therefore not all shareholders were represented. Mithras Capital then wonders whether some members of the board wouldn't have been re-elected had these votes been counted.

Regardless, after several delays of the meeting as well as a "tabulation error," more questions are left unanswered and this whole vote leaves a really bad taste and lowers -- even further -- shareholders' confidence in Yahoo's board and management.

I don't usually get peeved by misleading headlines, but given the amount of attention Fortune magazine's "Falling oil prices: The downside" by Colin Barr has been receiving -- see Slate's Beware of cheap oil for an example -- I felt compelled to comment.

If you haven't read the article, here's the tag line: "Lower prices mean less pain at the pump -- but tougher times ahead for the economy." And here's the main point:

But falling oil prices also suggest that the recession the U.S. has so far avoided is well on its way, as consumers pull back from the spending spree that drove economic growth earlier this decade. A weakening economy will mean more layoffs, further pressuring already reduced spending.

Two beefs I have with the above: First, anyone suggesting the U.S. has avoided a recession so far is playing with semantics. The second and main beef is that lower oil prices didn't cause, and will not cause, the economy to slow down. Rather, the slowing economy has caused oil prices to drop. Lower oil prices only reflect the state of the economy.

3Com Corp. (NASDAQ: COMS) shares are up around 12% so far today after the network equipment maker raised its first-quarter sales and profit forecasts due to gains in China. Not only did 3Com raised guidance, it also raised it above analyst estimates.

3Com, which makes routers, switches and cables for telephone companies, has more than quadrupled sales in China since buying out Huawei's stake in their joint venture H3C last year. China now accounts for almost half the sales at 3Com.

Some may be concerned due to recent reports of China's slower economic growth. But two things are worth mentioning here. First, China's slower GDP growth is still a whopping 9%, down from 11%. And second, telecom infrastructure will likely continue at the same pace.

It isn't surprising, then, that 3Com has raised guidance for both sales and earnings. Specifically, 3Com expects sales in China to be 10% higher than in the previous quarter on stronger sales to Huawei.

U.S. stock futures were lower Tuesday morning as oil prices continued to decline, with crude falling below $120 a barrel on demand concerns due to the economic slowdown in the U.S. Commodities in general have been declining. Also today, the Federal Reserve will announce its decision regarding interest rates and it is widely expected they will remain unchanged. Similarly, the Fed's outlook statement about outlook and focus may also remain largely the same according to expectations. Meanwhile, overseas, both the ECB and BoE are expected to leave rates unchanged.

One of Yahoo! Inc. (NASDAQ: YHOO)'s largest shareholders, Capital Research Global Investors, had asked to review the vote in last week's re-election of the Internet giant's board. Specifically, I guess, it was surprising the vote showed strong support -- 85% -- for CEO Jerry Yang. There's no sense dancing around this issue; basically the shareholder implies suspicions of wrongdoings (or really really incompetent tallying of votes).

Bloomberg reports that analysts now expect Fannie Mae (NYSE: FNM) and Freddie Mac (NYSE: FRE) to report net losses through the first quarter of 2009 as home-loan delinquencies rise to the highest on record. The the biggest U.S. mortgage-finance companies report tomorrow and according to estimates will show a loss of 74 cents and 60 cents per share respectively. The losses may be greater than expected as we've seen before analysts underestimating the credit losses. It will not be pretty.

Wachovia Corp. (NYSE: WB) shares are down some 7.5% (which is at least better than today's earlier decline of about 10%), after a Morgan Keegan analyst recommended selling the shares. The call follows Wachovia's 30.9% jump last week and comes ahead of a meeting between new chief executive Robert Steel and investors.

The analyst, Robert Patten, who rates Wachovia at Underperform, made the profit-taking call this morning. In his opinion nothing has fundamentally changed to warrant last week's price appreciation. He attributes the gains to short-covering. Wachovia is still facing more credit losses as its option adjustable-rate mortgages (option-ARMs) and commercial real estate (CRE) loans are likely to continue defaulting at an increasing rate.

The analyst also noted that he has already seen this pattern of shares running ahead of fundamentals due to CEO changes. And as long as Wachovia needs to restructure its balance sheet, the stock price hike was premature.

Makes sense to me. With investors' approval of Steel, has Wachovia's balance sheet magically improved? And what can he do to improve it so soon after taking the top job? And even though he said he wouldn't, could that include raising more capital by issuing more common shares (diluting shareholders)?

Anyone who actually had the nerves of steel it takes to play financials this past year may want to pay attention to Patten's call. Recall that Wall Street's leading financial analyst, Meredith Whitney, also downgraded WB to Underperform in July. If you choose to go against her, good luck to you!

Stock futures were lower Monday morning ahead of a wave of economic data, a tropical storm and, most important, the Federal Reserve meeting and decision Tuesday.

Before the opening bell, the economic calendar includes personal income and spending data for June, as well as the core PCE deflator, an inflation gauge the Federal Reserve eyes closely. Factory orders for June are also due after the open. Oil prices were steady near $125 a barrel Monday as the market kept on eye on both tropical storm Edouard that could turn into a hurricane and hit oil facilities in the Gulf of Mexico, and on further developments in Iran. But most of trading today will likely be affected by expectations the Fed will not change interest rates Tuesday, and issue a neutral statement with the focus changing to the weak economy.

Bank troubles aren't over. HSBC Holdings PLC (NYSE: HBC) reported a significant profit drop as costs for bad U.S. mortgage loans mounted. "HSBC Chairman Stephen Green said the first half of 2008 saw one of the most difficult financial markets for decades." As long as the housing market slump continues, and before the bottom can be seen, no doubt the financial sector will continue to suffer. And given that only about 40% on the $1 trillion expected writedowns were taken, the challenges for financials are far from over. For now, HBC shares are dropping about 3% in premarket trading.

U.S. stock futures were mixed Friday morning after General Motors reported a massive loss and sales decline and ahead of what could yet another worriesome jobs report. Unemployment rate is expected to inch higher to 5.6%, while economists expect nonfarm payroll to show a decline 75,000 jobs during July. Other economic reports as well as July car sales could impact the market throughout the session. Seem, though, that after digesting GM's results, futures turned negative, indicating a lower start on Wall Street.

General Motors (NYSE: GM) will likely see some action as the automaker swung to a second-quarter loss of $15.5 billion, or $27.33 a share, as revenue dropped 18% to $38.2 billion. If you think this number missed analyst estimates because of massive charges, you're right, but earnings excluding special items also missed them -- by a mile. Excluding items GM would have lost $6.3 billion, or $11.21 a share. Ouch! Analysts polled by FactSet Research expected a loss of $2.85 a share on revenue of $42.6 billion. GM has been the subject of rumors it is heading straight into bankruptcy, from a quick glance at the results, these will likely not alleviate any such fears. Even as Wagoner cuts costs by $9 billion this year by another 20% trim of payroll and stopping dividend payment, as he plans to boost cash by $17 billion, at this point, I wonder what GM can do to save itself, if it can do anything at all. GM shares are down 7% in premarket trading.

GM will not be alone in the spotlight as Ford (NYSE: F) and other automakers report their U.S. sales for July. Auto sales tracker Edmunds.com is forecasting a 3.3% drop in auto sales compared to a year ago. This comes a day after Standard & Poor's Ratings Services cut its ratings for all three of the U.S.-based automakers further into junk status. S&P expects further sales decline for the rest of the year, with car companies mounting cash losses.

Motorola Inc. (NYSE: MOT) shares are high flying this morning, opening over 8% higher at $8.43. Motorola reported second quarter financial results, posting an unexpected modest profit, beating sales estimate and saying the planned spinoff is on track (see more of today's earnings news).

By the numbers, the largest U.S. mobile-phone maker net income was $4 million, or break-even on a per-share basis, an improvement over last year's quarter loss of $28 million, or 1 cent a share as the company cut jobs. Excluding costs from job cuts, earnings came at 2 cents a share, surprising analysts who had expected a loss of 3 cents per share! Revenue fell 7.4% to $8.08 billion, but beat estimates.

Even the handset division with its widening losses as phone sales slumped 21% actually sold more phones than was expected and sequentially even showed sales growth. The $346 million loss in this division was offset by profit at the two-way radio and set-top box businesses. These units performed well with sales growth and operating profits. A positive operating cash flow and reduced cost structure were other good elements in the report.

U.S. stock futures were mixed Thursday morning ahead of the government preliminary report of U.S. second-quarter gross domestic product to be released at 8:30 a.m. EDT. Compare to the first quarter, where GDP grew at an annual rate of 1%, analysts are expecting an annual growth rate in the second quarter of 2.3% according to Briefing.com. Another wave of earnings will also wash Wall Street over this morning, while it's still digesting Wednesday's ones. The market will likely take a clearer direction once GDP is out.

[Update: GDP grew at a 1.9% pace in the second quarter came in well short of the 2.3% forecast. Futures are declining on economy and the XOM miss. Wall Street will likely open significantly lower.]

Reporting/reported this morning:

• Exxon Mobil (NYSE: XOM) is expected to report second-quarter earnings before the open. If ConocoPhillips (NYSE: COP) and BP (NYSE: BP) results are any indication, XOM will likely post massive profits thanks to oil's skyrocketing prices and even break the record it has set for largest profit by a U.S. company. Analyst on average expect Exxon Mobil to earn $2.52 a share on revenue of $144 billion, according to a survey by Thomson Financial.
• MasterCard Inc. (NYSE: MA) is expected to report earnings of $2.02 per share.
• Kellog (NYSE: K) is expected to post earnings of 81 cents per shares.

U.S. stock futures are higher Wednesday morning, a day after markets rallied around 2.4% due to declining oil prices. But today, ADP monthly employment data will be released, as well as weekly oil inventories data. Investors will digest the numbers and the slew of earnings due for release.

Already reported this morning (to name a few):

• Comcast (NASDAQ: CMCSA) said its second-quarter profit rose 8% as cable TV rates rose and consumers ordered more digital and premium services. While the results fell short of Wall Street's forecast, CMCSA shares are trading mildly higher.
• Arcelor Mittal (NYSE: MT) said its second-quarter profit more than doubled due to increased production and higher steel prices. It also gave an upbeat outlook for third quarter. The company outperformed consensus by about 20% at the revenue. MT shares, which have already close 7% higher Tuesday, are trading up another 6% in premarket action.
  
• Garmin (NASDAQ: GRMN) shares are crashing, trading 11% lower in premarket action after the company reported quarterly profit that was above market estimates, but revenue missed expectations and 2008 outlook was cut due to macroeconomic conditions and high fuel prices that have already impacted growth.
• Office Depot (NYSE: ODP) shares are over 1.7% lower in premarket trading after reporting a second-quarter loss as declining spending by smaller businesses and retail customers hurt sales.
• Siemens (NYSE: SI) reported that "third quarter net profit fell 31% due to a one-time gain a year earlier, but order intake and revenue rose, beating expectations and showing the industrial conglomerate's resilience so far to the economic downturn." SI shares are 3.9% higher in premarket trading.
  
• Corning (NYSE: GLW) shares are down over 2% in premarket trading after reporting inline earnings per share, but revenue slightly below estimates.
  
• IAC/InterActive (NASDAQ: IACI) said it swung to a second-quarter loss, hurt by a $300 million charge in its Cornerstone Brands business. Adjusted earnings were 35 cents per share as revenue rose 7% to $1.6 billion. Analysts polled by Thomson Financial expected profit of 31 cents per share on $1.6 billion in sales.

After a day that saw U.S. equity markets decline in the neighborhood of 2%, U.S. stock futures earlier this morning pointed to a rough start Tuesday as well. News late Monday the Merrill Lynch said it's selling a big slice of its asset-backed securities and $8.5 billion in stock, renewed concerns over the financial sector health. But futures have started creeping upward, ahead of the latest readings on house prices with the Case-Shiller home price index for May and Conference Board reading of consumer confidence for July.

Meanwhile, we're still in the middle of earnings season and today

• Colgate Palmolive (NYSE: CL) - Colgate-Palmolive 2Q profit rises 19%,
• BP (NYSE: BP) - BP's Second-Quarter Profit Rises on Record Oil Prices - shares are over 2% higher in premarket trading
• Coach (NYSE: COH) - Weaker dollar helps Coach 4th-quarter results
• Northrop Grumman (NYSE: NOC), Viacom (NYSE: VIA), Valero Energy Corp. (NYSE: VLO), United States Steel Corp. (NYSE: X)
• Electronic Arts (NASDAQ: ERTS) will report after the close of tradin

The big story making headlines since late Monday is the bombshell Merrill Lynch (NYSE: MER) that it is taking an enormous $5.7 billion write-down on losses from mortgage-backed securities (MBSs) and plans to raise $8.5 billion. MER shares already dropped 11.6% Monday before the news was out, and while they're rebounding 2.75% this morning, many are very uncomfortable with Merrill's current situation and actions.

Alcatel-Lucent (NYSE: ALU), the French telecommunications giant, is finally getting rid of its CEO Patricia Russo and Chairman Serge Tchuruk who will both resign later this year. It's no surprise shares are rebounding over 6% in premarket trading. ALU also reported its sixth consecutive quarter of losses. Alcatel-Lucent reported a net loss of 1.1 billion euros ($1.73 billion) for the second quarter including an euro810 million ($1.3 billion) goodwill writedown.

Amgen Inc. (NASDAQ: AMGN) is having a really good day today. Its shares closed up 12.17% to $60.48 (on a day markets were down in the neighborhood of 2%) after it said late Friday a study on denosumab, a bone-strengthening drug, met its desired results and showed statistically significant improvements over a placebo.

Amgen shares rocketed 17% at some point as denosumab has the potential to become a blockbuster drug, especially with women with postmenopausal osteoporosis, a market that could represent $8 billion and $10 billion by 2010. The strong study results also improve the drug's chances with FDA approval. Analysts just loved the results of the study (although the details won't be out until September), upgrading the shares and their target prices.

To top it off, Amgen reported second-quarter financial results after the close, beating analyst estimates. The biotechnology giant recorded net income of $941 million, or 87 cents a share, lower than last year's period, but excluding acquisition-related and stock-compensation costs, earnings rose to $1.14 a share from $1.13. Revenue rose 1% to $3.76 billion. Analysts forecast profit of $1.02 per share on revenue of $3.58 billion, according to a survey by Thomson Financial. Looking ahead, Amgen raised both its earnings and revenue guidance higher than what Wall Street expected. Analysts, in general, liked these results too.

Not all has been rosy with Amgen lately, as the sales of Aranesp, its anemia treatment and what is considered Amgen's most important product, show. Aranesp sales declined 13% on safety concerns. Sales of Epogen, the older treatment, also declined somewhat. Still the sales of both beat estimates.

Amgen's stock has already been punished for the Aranesp concerns throughout 2007, and has been recovering since, today hitting a 52-week high. Amgen showed better-than-expected sales across all products, even its under-scrutiny anemia drugs; it showed it's not resting and that it can and will recover. Combine that with the strong clinical trial results for denosumab, and the potential is great.

Amgen shares are up about 2.8% in after-hours trading to $62.15.

U.S. stock futures were lower early Monday as investors concerns over the banking sector grew. Federal regulator seized two more banks, 1st National Bank of Nevada and First Heritage Bank, which were scheduled to reopen on Monday as Mutual of Omaha Bank branches. The Senate also passed a major housing bill over the weekend, and this could actually give a boost to mortgage lenders like Fannie (NYSE: FNM). Meanwhile, oil prices rebounded as European markets declined. As of 8:00 a.m., it seems Wall Street would start weak.

Reporting earnings today are Kraft Foods (NYSE: KFT) - Kraft reported 58 cents earnings per share excluding items, beating estimates of 50 cents; Verizon Communications (NYSE: VZ) - Verizon reported earnings of 67 cents per share, excluding items, beating estimates by 2 cents; and after the close of trading, Amgen (NASDAQ: AMGN).

Amgen (NASDAQ: AMGN) stock is jumping over 17% in premarket trading after announcing late Friday its experimental osteoporosis drug, denosumab, significantly reduced the risk of bone fracture in post-menopausal women in a large trial. Rodman & Renshaw and Jefferies & Co both upgraded Amgen to Market Outperform and to Buy respectively.

Unilever NV (NYSE: UL) will sell its North American laundry detergents business to private equity investor Vestar Capital Partners for $1.45 billion (euro924 million). Unilever said the sale consistent with its strategy of divesting non-core businesses and concentrating on a few core ones.