Markets may open flat
Amex, Bell South kick off earning-heavy week

North American stocks are likely to open little changed Monday, as traders await another batch of second-quarter earnings reports.

Among U.S. companies slated to post earnings today are American Express and BellSouth before the stock market opens and Texas Instruments after the bell.

Canadian companies scheduled to release earnings today include Fraser Papers Inc., Inco Ltd., Teck Cominco Ltd., TransAlta Power, and West Fraser Timber Co.

In today’s economic news, the U.S. National Association of Realtors is scheduled to report on existing home sales at 10:00 ET. Economists look for a modest increase in existing home sales to an annual rate of 7.14 million in June from 7.13 million in the prior month.

There are no major economic announcements from Statistics Canada today.

Crude-oil prices fell 35¢ to US$58.30 a barrel in early Monday trading.

In other business news, Maytag indicated that it is interested in discussing a sweetened US$1.4 billion acquisition proposal from rival Whirlpool. Maytag previously agreed to be acquired for US$1.13 billion by a group led by Ripplewood Holdings.

Israel’s Teva Pharmaceutical Industries confirmed Monday it is in advanced discussions with Ivax of the U.S. “regarding a possible transaction” between two of the world’s biggest generic drug makers.

Overnight in Asia, the Japanese Nikkei 225 Stock Average gained 0.6% to 11762.65, as relief that U.S. financial markets took China’s currency reform in stride spurred broad-based buying of energy, drug and other stocks.

On Friday, energy shares powered Toronto stocks to a higher close on Friday, as oil prices rebounded.

The Toronto Stock Exchange S&P/TSX composite index rose 57.11 points, or 0.55%, to 10,374.79. For the week, the index rose 2.2%.

U.S. stocks closed higher, ending a fourth consecutive week of gains. The Dow industrials added 23.41, or 0.22%, to 10,651.18. The Nasdaq composite index added 1.14, or 0.05%, to 2,179.74, and the S&P 500 Index added 6.64, or 0.54%, to 1,233.68.

For the week, the Dow edged up 0.1%, the S&P 500 inched up 0.5% and the Nasdaq rose 1%.