N AMERICAN MORNING BRIEFING:Stks Seen Up On Positive Earnings

DJIA Futures 10293.0 +25.0 +0.2% S&P 500 Futures 1091.0 +3.3 +0.3% Nasdaq Futures 1859.3 +6.5 +0.4% Above are as of 0615 ET FTSE 100 5296.2 -17.6 -0.3% Xetra DAX 6171.8 +29.6 +0.5% CAC40 3614.0 +13.4 +0.4% Above are as of 0558 ET Nikkei 225 9431.0 +210.0 +2.3% Hang Seng 20815.3 +225.6 +1.1% Above are closing prices SNAPSHOT: Stocks seen higher; Treasurys lower; dollar mixed; Nymex crude lower at $78.98; gold higher at $1198.60. -Watch for: EU bank stress test results at 1200 ET; earnings from Ford, Honeywell, McDonald's. OPENING CALL: Stock futures are indicating a higher open, boosted by positive earnings reports which seem to be outweighing concerns about the weakening economy. However, James Hughes, analyst at CMC Markets in London, said: "After yesterday's big move I'm surprised we're looking at higher futures because markets have been choppy and rangebound - I expect to see a correction." Results of the European bank stress tests are set to command market attention on a day with no major economic indicators scheduled. Hughes said there was still investor concern as "it is almost a no-win situation. If all the banks pass, the tests will be called too lenient, yet if some fail there will be panic. Either way we won't get a positive result." EQUITIES: BP (BP) will temporarily suspend relief-well activities aimed at permanently shutting its damaged deep-water Gulf of Mexico well as Tropical Storm Bonnie is forecast to bring bad weather to the area. The damaged well remains shut in, as it has been for integrity testing over the past seven days, but the duration of the relief-well's suspension depends on the weather. The U.S. pay czar is expected to cite 17 financial firms for making more than $1 billion in "ill-advised" payments during the height of the financial crisis, the Wall Street Journal reported. Kenneth Feinberg, the Obama administration's special master for compensation, is expected to release a report Friday detailing payouts that firms made as they were receiving government bailout money. Among the firms he's expected to name are Goldman Sachs (GS), J.P. Morgan (JPM) and Citigroup (C), people familiar with the situation said. Goldman Sachs was down 0.44% in Frankfurt at 0519 ET, while J.P. Morgan was up 0.23% and Citigroup was 0.54% higher. Airgas (ARG) said the $65.30 per share acquisition bid it has received from Air Products & Chemicals (APD) is insufficient. The industrial gas supplier said Air Products' offer "fails to fairly compensate stockholders for the value inherent in Airgas." Air Products had sent a letter to Airgas shareholders urging them to tender their shares into the offer, before an August 13 expiration. Airgas was down 0.26% in Frankfurt at 0515 ET. Wal-Mart plans to roll out sophisticated electronic ID tags to track individual pairs of jeans and underwear, the first step in a system that advocates say better controls inventory but some critics say raises privacy concerns. Starting in the next two weeks, the retailer will place removable "smart tags" on individual garments that can be read by a hand-held scanner.If successful, the radio-frequency ID tags will be rolled out on other products at Wal-Mart's more than 3,750 U.S. stores. Wal-Mart was up 0.35% in Frankfurt at 0541 ET. BONDS: Treasurys slipped in London as German Ifo printed above forecasts, extending Thursday's weakness, which followed strong economic releases, particularly in Europe. The market will also be awaiting results of the euro-zone bank stress tests at 1200 ET although question marks persisted over the severity of these tests. The 2-year note was down at 100-03+/32 to yield 0.564%; the 10-year note was down at 104-20/32 to yield 2.953%; and the 30-year bond was lower at 107-04/32, yielding 3.965%. Corporate bonds: European corporate credit indexes were slightly tighter Friday, buoyed by gains on Wall Street, but the prospect of bank stress test results has kept a lid on trade. FOREX: A stronger-than-expected rise in Germany's latest Ifo survey lifted the euro sharply ahead of the release of the European bank stress tests. The data, which showed the business sentiment index leaping up to 106.2 this month from 101.8 in June, instead of falling to 101.5 as expected, pushed the euro firmly back over $1.29. General market sentiment had already improved as other economic numbers out of the euro zone and the U.S. on Thursday, and the continued string of strong second-quarter earnings results, boosted hopes for a global recovery. By 0520 ET, the dollar was up in Europe at Y87.12, while the euro was up at $1.2944 and the pound had risen to $1.5398. EQUITIES: Stocks are called to open higher Friday, in line with futures, said David Morrison at U.K. Spreadbettor GFT Global Markets. "Positive earnings reports continue to outweigh concerns of a weakening economy as investors express confidence in the U.S. corporate outlook," said Morrison. Hope is growing that the European bank stress tests will prove rigorous enough, while giving the major banks a clean bill of health, he added. At 0549 ET, Dow Jones Industrial Average futures were trading up 0.3% at 10294.0, while Nasdaq 100 futures were up 0.4% at 1859.38, and S&P 500 futures were up 0.3% at 1091.20. European shares advanced on Friday, helped by gains for Vodafone Group and stronger-than-expected economic data from Germany and the U.K. COMMODITIES: Oil futures were edging lower after a mixed start to Friday's trading session. September Brent briefly hit an intra-month high of $78.10/bbl earlier, as the euro rose following better-than-expected German business confidence numbers. But oil prices have slipped back into negative territory as the euro retreated from its highs against the dollar. Precious metals were little changed with light volumes seen, said TheBullionDesk.com. Spot gold traded up $2 at $1,198/oz. TheBullionDesk.com also said the dip-buying interest in gold over the past few days was an encouraging indicator and suggested ongoing diversification from fiat currencies by investors looking for more tangible assets. However, the continued failure to clear resistance around $1,200/oz leaves the metal vulnerable to stale liquidation and suggests more short term range trading between $1,185/oz-$1,215/oz. =======TODAY'S CALENDAR======= ET PERIOD 1000 Jun Mass Layoffs ============================== OTHER TOP STORIES OF THE DAY: Goldman Gave Investigators AIG-Hedging List: Sources - Report Goldman Sachs Group Inc. (GS) has provided U.S. investigators with a list of the counterparties it used to hedge the risk that American International Group Inc. (AIG) would fail, Bloomberg News reported Friday on its website, citing three unnamed people with knowledge of the matter. GM To File For IPO In Week Of August 16 - Report General Motors Co. intends to file a registration for an initial public offering the week of Aug. 16, just after the expected date for its second quarter results, the Reuters news agency reported on its website Thursday, citing two people with direct knowledge of the preparations. WSJ: Deepwater Horizon Probe Eyes Two BP Managers Two managers from BP PLC (BP, BP.LN) have been named as parties in a federal investigation into the explosion and sinking of the Deepwater Horizon oil rig in the Gulf of Mexico. WSJ: SEC Watchdog To Extend Probe Of Timing Of Goldman Settlement The Securities and Exchange Commission's inspector general extended an ongoing probe of the agency's recent civil-fraud lawsuit against Goldman Sachs Group Inc. (GS) to include the timing of the suit's settlement last week. US Supports New IMF Lending Programs, Reviewing IMF Resources The U.S. supports developing new International Monetary Fund loan programs and reconsidering the IMF's funding resources, a senior U.S. official said Thursday. WSJ: North Korea Vows 'Physical Response' To U.S. Pressure North Korea vowed a "physical response" to mounting U.S. military and economic pressure on the isolated Stalinist state, as Pyongyang squared off with Washington at a key regional security conference. United Community Bancorp 2Q Loss Widens On Loan-Selling Charge United Community Banks Inc.'s (UCBI) second-quarter loss widened, hurt by a charge related to selling some nonperforming assets, as the company said it hopes to return to profitability "early in 2011." Baidu In Talks For Search Box On Android Phones, Eyes China Listing Chinese Internet search giant Baidu Inc. (BIDU) is in talks with mobile handset makers that use rival Google Inc.'s (GOOG) Android operating system about embedding a Baidu search box on their phones, the company's top executive said. WSJ: U.S. Senate Passes Slimmed Down War Funding Bill The Senate Thursday approved a $60 billion war funding bill after Democrats were forced to jettison $20 billion in domestic spending, including money to prevent teacher layoffs. WSJ: Airline Industry Remains Divided On Ash Threat Three months after volcanic ash temporarily closed nearly 80% of European airspace, aircraft and engine makers don't appear any closer to agreement on new standards spelling out when it is safe to fly through such plumes. Amazon CFO: Operating Expenses Rising To Increase Capacity Amazon.com Inc. (AMZN) Chief Financial Officer Tom Szkutak said investments to increase the ecommerce giant's fulfillment center capacity and bolster its technology infrastructure contributed to a 40% increase in the company's second-quarter operating expenses. -By Michael Haddon, Dow Jones Newswires; 4420-7842-9289; michael.haddon@dowjones.com (MORE TO FOLLOW) Dow Jones Newswires July 23, 2010 06:34 ET (10:34 GMT)