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Weak PC demand hits Intel's profit. Intel's (INTC) Q2 net profit slipped 4% to $2.83B despite revenue climbing 4% to $13.5B, and it cut its FY sales growth outlook to 3%-5% from previous guidance of "high single-digits." Flat EPS of $0.54 beat consensus. Intel cited falling demand for PCs, which it blamed on the slowing economy, although analysts also point to tablets as a major factor. Shares fell 1% in AH trading.

FDA approves second diet drug in a month. The FDA has authorized Vivus' (VVUS) Qnexa/Qsymia treatment, the agency's second approval of a new weight-loss drug in less than a month. The medicine, which will require a doctor's prescription, will be available later this year. In addition to Vivus, the market is today likely to be focused on rivals Arena (ARNA) and Orexigen Therapeutics (OREX), which was +5% premarket.

Top Stock News
VMware confirms Gelsinger as new CEO to replace Maritz. VMware (VMW) yesterday confirmed that it has appointed Pat Gelsinger as its new CEO to replace Paul Maritz, who is becoming the Chief Strategist at parent company EMC (EMC), where Gelsinger was storage COO. VMware also said that Q2 revenue rose a preliminary 22% to $1.12B, while EMC reported early: the storage giant disclosed EPS of $0.39, which missed by $0.01, and a revenue increase of 10% to $5.31B, which beat by $20M.

Credit Suisse to boost capital as profit rises. Credit Suisse (CS) was +3.9% premarket after announcing plans to increase its capital by 8.7B francs ($8.9B), with a possible future rise of another 6.6B francs. The Swiss National Bank is now happy. Credit Suisse also upped its cost-savings target to 3B francs from 2B francs. In addition, the firm released its Q2 results early, disclosing that net income rose to 788M francs from 768M francs a year earlier.

Yahoo announces profit rise on Marissa's first day. Yahoo's (YHOO) Q2 EPS rose to $0.27 from $0.18 and beat expectations, although revenue came in flat at $1.08B and missed slightly. Brand-new CEO Marissa Mayer didn't take part in the company's earnings call, where it said it won't provide guidance until she gets up to speed. Yahoo also admitted that there are "problems" with its search partnership with Microsoft (MSFT), whose revenue guarantees only last for another 9 months.

Workday files for IPO. Workday has used the JOBS Act to file for an IPO on the sly, Reuters reports, in what could be the biggest listing since Facebook's problem-filled offering. The provider of business software, whose backers include Jeff Bezos, plans to start trading in October, depending on market conditions.

Peregrine CEO has spent the missing money. Peregrine Financial CEO Russell Wasendorf spent most of the missing client money to cushion his trading firm's capital, fund a new corporate headquarters, and pay regulatory fines, according to previously undisclosed parts of the letter Wasendorf wrote before attempting suicide. Deceiving regulators was "relatively simple."

Top Economic & Other News
Yet another Californian city nears bankruptcy. Compton could soon become the fourth Californian city to file for bankruptcy protection in recent months, as it is due to run out of money to fund its payroll on September 1. Compton has an accumulated deficit of $43M and depleted reserves. On Friday, S&P warned it may cut the city's ratings following the resignation of its independent auditors.

Volcker warns of financial threats to states... The finances of states and their ability to supply basic services face six major threats, a report from the State Budget Crisis Task Force shows. The threats include Medicaid costs, underfunded pension promises, and unreliable tax revenues. The Task Force, which is co-chaired by Paul Volcker, didn't propose solutions, saying that's for policy makers to decide.

..and E&Y study warns of impact of ending tax breaks. Letting the Bush-era tax cuts lapse at the end of the year would lead to the loss of 710,000 jobs and cause a 1.3% fall in economic output worth $200B, an Ernst & Young report for the Chamber of Commerce and other tax-break supporters shows. The study didn't give a time frame but said much of the impact would be felt within a decade.

Small firms not happy about Obamacare. Since the Supreme Court upheld Obamacare, some small firms are looking at how they can gum up the works to prove healthcare reform is a bad idea, and offer a case study on why it will fail. Some of the top threats include firing workers, ending the provision of health insurance altogether and paying the $2,000 penalty, and even closing their businesses.

WSJ launches new dollar index. The WSJ and DJ FX Trader are launching the WSJ Dollar Index this morning. Also called the BUXX, it will differ from other indexes by being reweighted over time to adjust for changes in the trading volume of the currencies in its basket. Among those the BUXX is going up against is the Dow Jones FXCM Dollar Index, in which WSJ publisher Dow Jones owns 2.6%.

Germans hanker for Deutsche mark. "They just feel nice to hold again," says a teacher about deutsche marks, 13.2B ($8.3B) of which remain in circulation and continue to be legal tender in Germany. Germans are apparently not ready to give up on the euro just yet, but from the linked WSJ article, it doesn't seem they'd be too unhappy if "die gute alte D-mark" was to replace it.

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Today's Markets:
In Asia, Japan -0.3%. Hong Kong -1.1%. China +0.4%. India +0.5%.
In Europe, at midday, London +0.1%. Paris +0.6%. Frankfurt +0.1%.
Futures at 7:00: Dow -0.3%. S&P -0.35%. Nasdaq -0.3%. Crude -0.55% to $88.73. Gold -0.8% to $1576.60.

Today's economic calendar:
7:00 MBA Mortgage Applications
8:30 Housing Starts
10:00 Hearing: Semiannual Monetary Policy Report (Bernanke)
10:30 EIA Petroleum Inventories
2:00 PM Fed's Beige Book

Notable earnings before today's open: ABT, APH, ASML, BAC, BK, BLK, BPOP, CHKP, DOV, ERIC, GWW, HON, KCG, NTRS, PNC, STJ, SWK, USB

Notable earnings after today's close: AXP, CYS, EBAY, EWBC, FFIV, IBM, KMP, LHO, NE, QCOM, SCSS, SLM, SWKS, SYK, XLNX, YUM

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