9:00AM U.S. stock futures pointed steeply down, dragged by surging oil.

U.S. stock futures pointed steeply lower Thursday, reflecting continued concerns about the corporate and mortgage lending markets and rising oil prices. Beazer Homes USA (BZH) and D.R. Horton (DHI) will be in the spotlight. Light sweet crude jumped as high as $76.99 a barrel in electronic trading on strong demand from refiners. Stronger-than-expected results from Apple and Ford failed to offset the decline.

Apple (APPL) shares climbed 7.1% in pre-open trade after the company reported a 73% profit rise on sales of Macintosh computers. Ford (F) rose 1.3% after posting the first profitable quarter in two years. Market also awaited key economic data on June home sales figures.

Further on the earnings news front, office products retailer Office Depot (ODP) posted 8% profit drop in Q2, due to weak sales in North America. Net income fell to 40 cents per share, from 41 cents per share a year ago, while sales rose to $3.63 billion from $3.49 billion a year earlier. Excluding charges, the company earned 43 cents per share, meeting the average analyst estimate.

Among other pre-market highlights, ExxonMobil (XOM) reported an unexpected decline in Q2 profit. Dow Chemical (DOW) posted 2% profit rise, slightly better-than-expected. Both insurers Aetna (AET) and Travelers (TRV) raised their earnings guidance.

In economic news, the Commerce Department said that durable goods increased less-than-expected 1.4%. According to another report, initial jobless claims unexpectedly inched lower in the latest week. The number of initial claims in the week ending July 21 fell 2,000 to 301,000. S&P 500 futures dropped 15.9 points at 1,508.60 and Nasdaq 100 futures dropped 16.25 points at 2,010.25. Dow industrial futures declined 106 points.


8:00AM Ford Motor posted its first profitable quarter in two years.
Ford Motor (F) exceeded analyst expectations by posting its first profitable quarter in two years. The auto maker reported Q2 earnings of $750 million, or 31 cents per share, compared with a net loss of $317 million, or 17 cents per share last year, beating estimates of a loss of 35 cents. Ford said revenue rose 5.5% to $44.2 billion for the quarter. Ford attributed the positive results to significant improvements in its automotive operations, as well as cost reductions and special items. The company also confirmed it is exploring the sale of its Jaguar and Land Rover subsidiaries. Ford gained 3% in premarket trading.


7:30AM New York, 5:00PM Mumbai – Sensex in India climbs on earnings from Maruti and drug settlement for Ranbaxy.

Sensex gained 56.63 to close at 15,755.95 on sharp rise in earnings from Bharti Airlte, fall in cement stocks, and firmness in IT stocks.

The daily turnover on BSE rebounded to 5,719 crore rupees from 4,276 crore rupees on 18 of the 30 Sensex stock gaining and 12 stocks declining.

Gainers

Pharmaceutical stocks jumped on the news that Ranbaxy Laboratories and Glaxo Smithkline have reached an agreement to end their litigation related to herpes drug Valtrex. Ranbaxy jumped 10% to close at 375 rupees. Cipla jumped 4% and Dr Reddy’s gained 0.3% on the news.

Ranbaxy has filed 20 patent challenging suits on drugs that have a combined market size of $26 billion. The agreement to sell its version of herpes treatment drug will provide the company a head start in $1.5 billion market starting from the year 2009.

Auto stocks jumped on the 35% rise in earnings from Maruti, lifting Mahindra & Mahindra 2.6% and Bajaj Auto 1%.

Software services exporters jumped after Infosys reported $250 million order from Philips. Wipro jumped 4.22%, Satyam gained 1.5%

Earnings

Maruti Udyog jumped 3.4% after reporting first quarter earnings growth of 35% to 499.6 crore rupees on 26% rise in sales to 3,930 crore rupees. New models and financing arrangement with two largest banks boosted unit sales in the quarter to 169,600 in the quarter. The automobile market is driven by the low cost financing available through banks. The quarterly profit rose for the sixteenth quarters in a row. Japan based Suzuki controls 54% of the local company and its board and changed the company name to Maruti Suzuki India Ltd from Maruti Udyog Ltd. The company plans to invest more than 2 billion to expand its capacity in India. The automobile market is expected to expand to 3 million units in 2012 from 1 million units in 2007.

Bharti Airtel, largest mobile telecom operator reported first quarter profit double to 1,511 crore rupees on 53% revenue gain to 5,904.6 crore rupees. The stock fell on the news by 2.3% to 925 rupees.