Morning News

• Futures are flat pointing to a slightly higher open.

• KB Homes (KBH) To be sued by the Federal Trade Commission , also looking at a multimillion dollar fine. Problem deals with arbitration clauses in the companies warranties of home purchase agreements.

• Watch oil in the next few days with another storm forming. Emily will be the next named storm and is on a path very close to that of Dennis.

• Bear Stearns Inc.(BSC) Reports are out that the company may pay up to 200 million dollars or more to settle allegations that the company helped hedge funds trade improperly in mutual fund shares.

• PepsiCo (PEP) beats the street reporting early this morning.Earnings and revenue better than expected. 2nd quarter earnings were 70 cents per shared analysts were looking for 67 cents per share.Revenue was also up 9% to 7.7 billion analysts called for 7.56 billion.

• Crude is up slightly currently $59.40 per barrel.

• Gold is at just over $427.00 per ounce

Budd Foxx