Today Stock Market News

HONG KONG (MarketWatch) — Hong Kong stocks fell sharply early Monday, with resource-related stocks such as Aluminum Corp. of China, or Chalco , and PetroChina Co. leading the decline after crude-oil and gold prices dropped on Friday. The Hang Seng Index recently dropped 2% to 17,355.52, while the Hang Seng China Enterprises Index lost 1.6% to 10,410.46. Shares of China Eastern Airlines surged 6.9% in the downbeat market, as trading resumed after the carrier announced an acquisition of rival Shanghai Airlines in a stock swap deal and also raise $1.03 billion in capital via a share sale.

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TOKYO (MarketWatch) — Japanese Prime Minister Taro Aso told senior lawmakers of his ruling Liberal Democratic Party on Sunday that he intends to dissolve the lower House of Representatives as early as Tuesday for a general election, according to a published report Monday.

HONG KONG (MarketWatch) — Japanese stocks wavered in a range around break-even on Monday, with exporters such as Honda Motor Co. rising as the yen gave back some of its recent gains. Energy-related stocks fell in Tokyo as well as Sydney after crude-oil futures fell below $60 a barrel. Japan’s Nikkei 225 Average opened lower, but was recently up 0.3% at 9,316.85, while the broader Topix Index advanced 0.3% to 875.40. Australia’s S&P/ASX 200 dropped 0.3% and South Korea’s Kospi shed 0.6%, while New Zealand’s NZX 50 gained 0.1%.

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TOKYO (MarketWatch) — Japanese brewer Kirin Holdings Co. and Suntory Holdings Ltd. are in negotiations to merge under a holding company, aiming for a deal this year, according to a published report Monday.

After a federal budget left many disappointed, investors in India will be hoping for better news this week with the arrival of critical monsoon rains as well as a set of blue-chip corporate earnings.

Consumers’ job worries are expected to weigh down results of the government’s upcoming retail sales report.

Washington insiders with ties to the Obama administration and the Federal Reserve expect Ben Bernanke to be reappointed to a second four-year term as chairman of the world’s most powerful central bank.

The U.S. and Swiss governments, along with banking giant UBS AG, said Sunday they were seeking a settlement and want a federal judge to postpone hearings on an Internal Revenue Service move to identify suspected American tax evaders.

Citi will continue accepting IOUs from the state of California, which can’t pay its bills.

Investors should worry about everything that can influence their mutual funds — including changes at the top.

Stock investors who spread their money across other markets such as commodities and real estate didn’t get much shelter from 2008’s meltdown. But tapping the market’s ‘fear gauge’ might have helped.

Investors will key next week on earnings from techs and banks for hints of what to expect in the third quarter — and how badly the recession hurt businesses in the second quarter.

Investors will key next week on earnings from techs and banks for hints of what to expect in the third quarter — and how badly the recession hurt businesses in the second quarter.

Israel stocks declined, led lower by weakness in Israel Chemicals after reports that potash pricing had dropped in new contracts.

Israel this week is likely to adopt its 2009-2010 budget, which will reflect estimated deficits of 7.8% and 4.5% of gross domestic product for the two years respectively, Barclays Capital said.

Consumers’ job worries are expected to weigh down results of the government’s upcoming retail sales report.

Toyota Motor Corp. may close a San Francisco Bay Area vehicle-assembly plant that it jointly operates with General Motors, The Wall Street Journal reports.

CIT Group Inc., which specializes in lending to small and medium-sized U.S. businesses, has retained counsel to prepare for a possible reorganization in bankruptcy court, people familiar with the matter told The Wall Street Journal.

CIA Director Leon Panetta reportedly has told Congress that his predecessor kept a counterterrorism program secret from Congress for eight years on orders of then-Vice President Dick Cheney.

Obama says stimulus package working as intended.

Investors will key next week on earnings from techs and banks for hints of what to expect in the third quarter — and how badly the recession hurt businesses in the second quarter.

WASHINGTON (MarketWatch) — Treasury Secretary Timothy Geithner said that a strong dollar remained U.S. policy. “I deeply believe that,” Geithner said. “Our commitment is to the world and, of course, the American people that we are going to make sure we put in place the policies that can sustain confidence in this economy and this financial system,” Geithner said. The Treasury Secretary said he was not worried about talk of a new global reserve currency. He noted that global demand remains strong for Treasurys. Geithner made the comments in an interview with CNN that is scheduled to be aired on Sunday. A copy of the transcript was obtained from CNN.

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House Democrats intend to pay for their health-care reform plan with higher taxes on Americans making more than $350,000 a year.

A Thermopolis, Wyo., bank was closed by regulators Friday in the 53rd U.S. bank failure of 2009.

WASHINGTON (MarketWatch) — It is unclear whether the program of wiretapping without warrants has aided the federal government’s efforts to combat terrorism, according to joint report of five federal agencies released late Friday. Most intelligence officers interviewed “had difficulty evaluating the precise contribution” of wiretaps in their probes, the report concluded. Agents said wiretaps were simply one tool among many available for investigations. The report was mandated by Congress.

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U.S. President Barack Obama, whose father was Kenyan, used a speech in Ghana Saturday to call on African nations to overcome centuries-old obstacles to fulfill their promise.

A federal court hearing involving Swiss banking giant UBS could give the U.S. government a new weapon to penetrate Americans’ secret foreign bank accounts.

WASHINGTON (MarketWatch) — President Obama said Saturday that Africa’s promise has yet to be fulfilled. In a speech in Accra to Ghana’s Parliament, Obama called on leaders of Africa to commit to a broad new program to spur development. He said that “good governance” was the cornerstone to progress. “You have the power to hold your leaders accountable and to build institutions that serve the people,” Obama said. Obama said the road ahead would not be easy. “America will be with you every step of the way,” Obama said.

Market Pulse Stories are Rapid-fire, short news bursts on stocks and markets as they move. Visit MarketWatch.com for more information on this news.

A Thermopolis, Wyo., bank was closed by regulators Friday in the 53rd U.S. bank failure of 2009.

In case you missed them, here are the top 10 Personal Finance stories from MarketWatch for the week of July 6-10:

A recovery in the the housing market could be helped by a return to the quaint notion of down payments.

Love or hate the styling of the new Cube (it does grow on you), I can say it is a very fun car to drive. Keep a sharp watch on the options and it carries a nice price.

Investors will key next week on earnings from techs and banks for hints of what to expect in the third quarter — and how badly the recession hurt businesses in the second quarter.

An unguarded moment for the Commander in Chief? A bad camera angle? Or an honest-to-goodness presidential ogling? Here are some excuses the White House might consider using to make all the attention die down.

Is it over, over there, for U.S. investors? Not if the U.S. dollar stays weak against other currencies.

A Thermopolis, Wyo., bank was closed by regulators Friday in the 53rd U.S. bank failure of 2009.

CSX Corp., Fastenal Co. and Novellus Systems Inc. are expected to see active trading in Monday’s session.

SAN FRANCISCO (MarketWatch) — Thermopolis, Wyo.-based Bank of Wyoming was closed by regulators Friday, marking the 53rd U.S. bank failure of 2009 as the credit crisis continues to claim victims. Bank of Wyoming, the first bank in that state to fail this year, had $70 million in assets as of June 30, and $67 million in deposits, the Federal Deposit Insurance Corporation said. The FDIC estimated that the cost of the bank’s failure to its deposit insurance fund will be $27 million.

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Mexican and Brazilian equities rose modestly Friday, reversing earlier losses that had come in the wake of poor U.S. consumer-sentiment figures that had extended worries about the pace of economic recovery.

LOS ANGELES (MarketWatch) — The Obama administration is working on a plan that would make available funds from the $700 billion banking-system bailout package to millions of small businesses, according to a report late Friday in the online edition of the Washington Post, which cites sources familiar with the matter. The initiative would expand a Small Business Administration lending program called 7(a), which helps companies borrow money from banks at low rates to keep their businesses running. Talks about the plan, which is aimed at reviving the economy by saving jobs, have reached the highest levels of the administration. The plan is being proposed by senior officials at the Treasury Department, according to the report.

Market Pulse Stories are Rapid-fire, short news bursts on stocks and markets as they move. Visit MarketWatch.com for more information on this news.

Alaska Airlines shares rise 8% as the airline sector rallies, helped by crude-oil prices falling below $60 a barrel.

Government-insured mortgage applications rose to their highest share of the market in nearly 19 years last month, the Mortgage Bankers Association reported this week.

In these distressing times, regulation and the big hand of government show no sign of letting up as a front-burner issue for the investing public. This week’s headlines proved no exception.

Declines on Wall Street and in Canadian commodity markets overshadow better-than-expected jobs data.

Oil and gas stocks extend week-long losses as crude closes below $60 a barrel and Chevron warns weak refining margins will drag down its second-quarter earnings.

LOS ANGELES (MarketWatch) — Delphi Corp. said late Friday that no potential alternative bids to the proposed transaction with Parnassus Holdings LLC announced on June 1 have been submitted by the time a set deadline passed. Parnassus is an affliate of Platinum Equity LLC and GM Components Holdings LLC, an affiliate of General Motors Corp. The auto parts maker said it has received noticed from JP Morgan Chase Bank that it may submit a credit bid. If a pure credit bid support letter is delivered, Delphi said it will conduct an auction on July 17.

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LOS ANGELES (MarketWatch) — Short interest in 2,456 Nasdaq securities totaled 6.73 billion shares at the end of the June 30 settlement date, compared with 2,471 issues and 6.53 billion shares on June 15, Nasdaq OMX Group Inc. said in a statement late Friday. The short interest positions reported reflect the total number of shares sold short by all brokers and dealers. A short sale generally refers to the sale of a security that the seller does not own.

Market Pulse Stories are Rapid-fire, short news bursts on stocks and markets as they move. Visit MarketWatch.com for more information on this news.

Stocks making notable moves in Friday’s U.S. trading include AIG, General Motors, Sunoco and Shaw Group.

NEW YORK (MarketWatch) — U.S. stocks finished mostly lower on Friday, with the Dow Jones Industrial Average and the S&P 500 Index both down for a fourth straight week. Investors remain cautious ahead of earnings reports next week and ongoing worries about the pace of an economic recovery. The Dow Jones Industrial Average fell 36.65 points, or 0.5%, to end at 8,146.5, leaving it with a weekly decline of 1.6%. The S&P 50 Index shed 3.55 points, or 0.4%, to 879.13, off 1.9% from the week-ago close. The Nasdaq Composite gained 3.48 points, or 0.2%, to 1,756.0, with the technology-laden index left with a decline of 2.3% for the week.

Market Pulse Stories are Rapid-fire, short news bursts on stocks and markets as they move. Visit MarketWatch.com for more information on this news.