Stocks See Mild Dip Early

News at a Glance
Futures Mixed: Investors eye G-8 meeting Wednesday.
Europe Up: Banks and metals lead the way.
Asia Lower: Commodity stocks fall, offset utility, tech gains.
Crude Gains: Oil prices rise on possibility of regulation.
The Lowdown

Another drop in oil prices hit Wall Street with a Tuesday drop.

The Dow Jones Industrial Average slid 40 points to 8275 by 9:50 a.m., ahead of the Group of Eight summit Wednesday in Italy and the start of earnings season at home. After the open, the Nasdaq dipped 5 points to 1783 and the S&P 500 was down 3 to 896.

Ahead of the Wednesday start of earnings season, both Intel (INTC) and Marvell Technology Group (MRVL) saw mild boosts following upgrades from Merrill Lynch, which boosted its view on the semiconductor sector as it anticipates new demand after depleting inventories.

World markets were mixed ahead of the G-8 talks. The world leaders will meet at a time when their government debt is at its highest point since World War II, a burden that may threaten the nations' influence. European shares pushed higher, led by metal and banking stocks, as investors snapped up bargains after Monday's losses. Asian markets were broadly lower, with commodity stocks declining in response to falling oil and metal prices. Gains in utility and technology stocks, such as Tokyo Electric Power and Samsung Electronics, offset some of the losses.

Oil prices again declined on fears of reduced demand, although traders reacted to news that U.S. regulators may curb speculation on oil and gas by limiting the holdings of energy futures traders. The Commodity Futures Trading Commission will hold hearings to weigh tighter restrictions on energy markets, Chairman Gary Gensler said Tuesday in a statement. Crude slipped 16 cents to $63.89 a barrel by 9:50 a.m.

The yen and the dollar rose against the euro on investor concerns that the economic recovery is on shaky ground. Government bonds fell in advance of planned debt sales by numerous countries, including the U.S.

Corporate News
Goldman Sachs (GS) stands to lose millions from increased competition if the software allegedly stolen by ex-computer programmer Sergey Aleynikov is used by outsiders, a prosecutor said. Aleynikov was arrested July 3 at Liberty International Airport in Newark, N.J. He has allegedly transferred Goldman's proprietary trading code to a computer server in Germany, according to Assistant U.S. Attorney Joseph Facciponti who spoke in federal court July 4.
General Motors will be allowed to pursue its sale of assets to a Treasury-funded buyer, despite an appeal by some of the company's creditors. The single appeal to the bankruptcy judge's approval of the sale was filed by people with accident-related claims involving GM vehicles. They want the new company to take responsibility for current claims, but they will not prevent the sale from going forward, their lawyer Steven Jakubowski told Bloomberg.
Lear (LEAR) filed for bankruptcy protection Tuesday after creditors approved a reorganization plan. The auto-parts supplier listed debt of $4.5 billion and assets of $1.3 billion as of May 30 on documents filed in U.S. Bankruptcy Court in the Southern District of New York. The company was faced with a dramatic sales drop as global auto sales tanked this year.
The Economy
Chain store sales for the week of July 4 slipped 4.2% from the previous year, according to the latest reading of the Johnson Redbook Index. STORY