dow futures down, page-9

medic!!


NEW YORK (Dow Jones)--Stocks were mixed to lower on the last day of July -
but off their earlier lows - as investors weighed the escalation of violence in
the Middle East and higher oil prices and some comments on interest rates from
St. Louis Federal Reserve President William Poole.

The Dow Jones Industrial Average fell 7.53 points recently to 11212.17.
Wal-Mart Stores added 1.4% after posting same-stores sales growth of 2.4% in
July, near the high end of its forecast. The Standard & Poor's 500-stock index
slid 0.44 of a point to 1278.11, and the Nasdaq Composite Index rose 3.63 to
2097.77.

Light, sweet crude rose 42 cents to $73.66 a barrel in early trading Monday
on the New York Mercantile Exchange as the Mideast crisis escalated. Treasury
bonds declined, sending yields higher. The dollar weakened against the euro and
yen. Gold fell $2.70 to $632.10 on the Comex division of the Nymex.

Aside from the conflict between Israel and Hezbollah, talk about the
prospects for interest rates are likely to prevail on Wall Street this week.
The Federal Reserve meets next Tuesday to decide whether to raise rates again.
Recent weak economic data such as the second-quarter report on gross domestic
product have reduced odds for another increase to about 30%.

Poole, president of the St. Louis Fed, put the odds for another rate increase
slightly higher early Monday. The soft GDP report, as well as a string of weak
employment gains, "lowers the outlook for economic growth going forward,"
Poole, who isn't a member of the Fed's rate-setting committee, told reporters
after a speech in Louisville.

But since other data show the inflation pressures remain, "I am still very
much in the 50-50 camp" regarding another rate increase, he said. Janet Yellen,
president of the San Francisco Fed, is scheduled to speak later Monday.

Several reports due out later this week could have a big impact on whether
the Fed decides to raise the target for the federal funds rate for the 18th
time to 5.5%. Tuesday, the Labor Department will release data on personal
income and spending, a report that contains closely watched inflation metrics.
Friday, the government will issue the nonfarm payroll report for July.

The July Chicago Purchasing Managers Index rose to a reading of 57.9 from a
downwardly revised 56.5 figure in June. The PMI was expected to fall to 55.7
from 58.5. A reading above 50 indicates expansion.

Meanwhile, investors eyed some more earnings results. HSBC Holdings reported
a 15% rise in first-half net profit on strong revenue growth in new businesses
and emerging markets. Health-benefits provider Humana reported a
stronger-than-forecast 10% second-quarter profit rise and held to its 2006
outlook but said marketing costs could be up to 15 cents a share higher than
forecast.

Overseas, European stock markets edged off recent 10-week highs, while the
Nikkei 225 advanced in Tokyo on earnings hopes.

U.S. stocks staged a broad rally Friday on hopes the Federal Reserve won't
follow through with another rate increase at its next meeting after a report
showing soft second-quarter gross domestic product. The Dow gained 119.27
points, or 1.1%, to 11219.70. The Standard & Poor's 500-stock index rose 15.35,
or 1.2%, to 1278.55, and the tech-heavy Nasdaq Composite Index jumped by 39.67,
or 1.9%, to 2094.14.

In major market action:

Stocks fell. On the New York Stock Exchange, 1,255 stocks advanced and 1,694
declined on volume of 241.7 million shares.

Bonds slipped. The 10-year note lost 2/32, or 63 cents for every $1,000
invested, to yield 5.002% Monday, and the 30-year note was off 3/32 to yield
5.079%.

The dollar weakened. The euro was at $1.2770 from $1.2751 late Friday, while
the dollar was at 114.31 yen from 114.77 yen.