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Before The Bell: India Losing Its Luster; Bank of America Earnings

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Rising doubt India's ability to turn into a global superpower.

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Morning Perspective:India Losing Its Luster

According to the WSJ, the prospect of India becoming the next economic superpower is losing its magic as inflation and a slumping global economy continue to take their toll. India's GDP, which has averaged slightly below 9% for the past five years and grew 9.6% in 2007, is expected to grow between 7% to 8.7% in the fiscal year that ended last month. Although the difference may not sound like much, some believe the country's economy must continue to grow between 9% to 10% to wipe out the deficit of previous growth rates. Get Professor Sally Limantour's perspective in The Global Infrastructure Boom.

From the Bull Pen: Bulls are aware of the challenges but still see the upside in infrastructure plays such as Caterpillar (CAT); entry near $80, sell-stops can be set below $75.

From the Bear Cave: Bears can play the downside in the India Fund (IFN); buy-stops can be set above the 200 DMA ($52).


BAC Earnings

Bank of America's (BAC) earnings net fell 77% to $1.21 bln, or 23 cents per share in the first quarter. The figure was far below consensus estimates which called for the second largest U.S. bank to report $0.41 per share. Revenues fell 6.4% on a y/y basis to $17.3 bln vs. $16.46 bln consensus. The company also reported $1.31 bln in trading-related losses which included $1.47 bln in writedowns of collateralized-debt obligations and $439 mln on leveraged loans. Further, BAC increased its provision for credit losses to $6.01 bln from $1.24 bln amid rising credit costs in home-equity, small-business and homebuilder portfolios. Read Toddo's Random Thoughts as we continue to progress through the heart of earnings season.

From the Bull Pen: Those that believe there is upside in BAC in the near-term can set sell-stops below $38.

From the Bear Cave: Financial bears can look to Lehman Brothers (LEH) for a downside play; entry near $50 with buy-stops set above.


For more ideas, check out Minyanville's Spotlight Stocks.


Quick Check Around the World

Asian trading closed with the Hang Seng +2.17%, Nikkei +1.63%, Sensex +1.57%, Taiwan +0.10% and Shanghai +0.72%.

A quick look towards Europe finds the CAC -1.12%, DAX -0.82%, FTSE -0.20%

As of 8:15 AM EST, S&P futures are lower -1.1 points to 1386, and Nasdaq futures are down -1.5 points to 1901.


A Look At Commodities

In commodities, Gold is higher +10.3 points to 922.50. Crude oil is higher +0.38 to 117.07. Silver is up +0.040 to 17.860. and copper is lower -2.25 to 391.95.

The dollar index is lower -0.340 to 71.666.


No events on the radar today, but click here to see all the events for the week.

Happy Monday! Have a great day!
No positions in stocks mentioned.

The information on this website solely reflects the analysis of or opinion about the performance of securities and financial markets by the writers whose articles appear on the site. The views expressed by the writers are not necessarily the views of Minyanville Media, Inc. or members of its management. Nothing contained on the website is intended to constitute a recommendation or advice addressed to an individual investor or category of investors to purchase, sell or hold any security, or to take any action with respect to the prospective movement of the securities markets or to solicit the purchase or sale of any security. Any investment decisions must be made by the reader either individually or in consultation with his or her investment professional. Minyanville writers and staff may trade or hold positions in securities that are discussed in articles appearing on the website. Writers of articles are required to disclose whether they have a position in any stock or fund discussed in an article, but are not permitted to disclose the size or direction of the position. Nothing on this website is intended to solicit business of any kind for a writer's business or fund. Minyanville management and staff as well as contributing writers will not respond to emails or other communications requesting investment advice.

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