Before the bell 7-17-07: Futures lower ahead of earnings, inflation data

Stock futures are indicating a weaker start on Wall Street a day after the Dow closed within less than 50 points of the 14,000 mark and ahead of the PPI report and several blue-chip earnings due today.

Yesterday the Dow Jones Industrial Average closed up 43 points to a new record high, while the S&P 500 and the Nasdaq Composite lost some ground. Bonds rallied yesterday following further subprime jitters.

Today, several economic indicators are due out:
At 8:30 a.m., ahead of the opening bell, June Produce Price Index, a measure of inflation at the wholesale level is scheduled to be reported. PPI is expected to show a 0.1% increase after it rose 0.9% in May. Core PPI is expected rise 0.2%, same as the month before. Numbers supporting the claim that inflation is in check, could push stocks higher, helping the current momentum, but numbers far out of line with expectations, may rattle the markets.
At 9:15 June capacity utilization and industrial production are due, both are expected to show some growth.
Homebuilder sentiment is also due out today, and is expected to show some decline.

Oil prices continued to climb while the dollar stayed near record lows.
Overseas, Asian stocks were little changed. European stocks dropped for the first time in four days as they awaited earnings and economic data out of the U.S. and after analysts downgraded oil companies. A decline in metal prices pushed mining shares lower.

Tomorrow, Federal Reserve Chairman Ben Bernanke is to deliver his semi-annual testimony before Congress.

All the news today will either help recent positive momentum on Wall Street as it affirms investors confidence regarding inflation and the economy, or it may do the opposite. I wouldn't be surprise if the data, including earnings and economic indicators, have mixed messages as it so often does.

Corporate news:

The first real barrage of earnings news comes today as Merrill Lynch, Johnson & Johnson, Well Fargo, Intel and Yahoo! are to report earnings. The first three before the bell, the last two after the close.

Coca-Cola Co. (NYSE: KO) reported not too long ago, posting a rise in second-quarter net income rose to $1.85 billion, or 80 cents a share (including a 5 cent charge), from $1.84 billion, or 78 cents a share. Revenue rose to $7.73 billion from $6.48 billion. Analysts, on average, expected the company to earn 82 cents a share on revenue of $7.35 billion, according to Thomson Financial.

It seems that finally News Corp (NYSE: NWS) has reached a tentative agreement with Dow Jones & Co. (NYSE: DJ) to buy the latter for the original $5 billion that Murdoch had offered. The deal will now go to Dow Jones' board for approval.

Dutch-based Basell said it would buy Lyondell Chemical Co. (NYSE: LYO) in an all-cash deal worth about $12.14 billion, plus the assumption of debt. Including the assumption of debt, the deal is valued at $19 billion. Basell will pay Lyondell stockholders $48 per common share, a 19.6% premium to Monday's closing price of $40.12.