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J.P. Morgan
Chase Nears Enron Settlement
Sources in media reports say the investment bank is in talks with the U.S. Securities and Exchange Commission and the Manhattan District Attorney's office, which has been probing into whether it helped Enron (otc: ENRNQ - news - people ) misrepresent its financials. Manhattan District Attorney Robert Morganthau reportedly decided not to criminally charge the firm to avoid harming the firm's employees and investors.
U.S. stocks were shooting higher in the early half of Tuesday's session, after solid retail sales numbers for June. During the month, sales were up 0.5%, which matched Wall Street's expectations, while the figure excluding autos climbed 0.7%. That topped the economists' estimate of a 0.4% increase.
Elsewhere in stocks, Merrill Lynch (nyse: MER - news - people ) says its second-quarter earnings jumped 61%, fueled by strong results from its bond operations, while Wells Fargo (nyse: WFC - news - people ) posted a 7% increase in its quarterly results, thanks to growth in consumer lending and deposits.
Elsewhere, Philip Morris parent Altria (nyse: MO - news - people ) could face selling pressure today, after an Illinois appellate court ruled that a judge didn't have the power to cut in half a $10.1 billion bond that the company would have to pay as it appeals a light cigarette case.
In bonds, U.S. Treasury prices were easing ahead of Federal Reserve Board Chairman Alan Greenspan's testimony in front of Congress at 10:00 A.M.
In other news, power producer and trader Mirant (nyse: MIR - news - people ) filed for Chapter 11 bankruptcy protection after it failed to strike deals with potential lenders and bondholders to restructure its debt. According to the filing, the company had $20.6 billion in assets and $11.4 billion in debt.