IBD's Top 10 - Friday

Citi's Q2 Loss Less Than Feared

1 The biggest U.S. bank swung to a Q2 loss of 49 cents ex items, beating views by 17 cents. Revenue fell 29% to $18.7 bil. Citi C's securities and banking division wrote down the value of its assets by $7.2 bil, before taxes. Losses and write-downs are much smaller than in Q1 and Q4. Citi shares rose 8% -- 33% over 3 days.

Stocks End Mixed On Earnings

2 The Nasdaq slid 1.3% as Google, Microsoft and AMD dived after earnings misses. The NYSE composite rose 0.5%, the Dow 0.4%. The S&P 500 was flat, all closing near session highs. Volume eased across the board. Some finance and transportation groups led. The 10-year Treasury rose for a 3rd day to 4.10%, up 6 ticks.

Freddie Mac Registers With SEC

3 The mortgage finance giant won regulators' OK to sell the stock needed to overcome mounting losses, with one published report saying it may seek $10 bil. The OK will let Freddie Mac fulfill its May promise to raise $5.5 bil to bolster its balance sheet and let it continue its support of the slumping housing market. Freddie FRE rose 10%, while sister firm Fannie Mae FNM rose 23%.

U.S., Iraq Seek Pullout 'Horizon'

4 Washington and Baghdad have agreed to seek a "general time horizon" for reductions in U.S. combat troops in Iraq, marking a possible shift in President Bush's opposition to scheduling withdrawals. Iraq, negotiating a new security pact with the U.S., has proposed U.S. forces fully withdraw 5 years after it takes the lead on security nationwide.

Obama Headed To Europe, Iraq?

5 Barack Obama will tour the Mideast and Europe this week, and likely Iraq, in what his camp contends is a fact-finding mission, but which Republicans dismissed as a political stunt. Obama refused to confirm the Iraq visit, but GOP rival John McCain said Obama will stop in Baghdad. McCain has criticized Obama for failing to tour Iraq to see U.S. successes firsthand.

Crude Falls For 4th Straight Day

6 Oil rose early, then reversed to end 41 cents lower at $128.88 a barrel -- down $16.30 over 4 days. U.S. demand fell to 20.08 mil barrels a day, a 5-year low, in the 1st half of '08, the American Petroleum Institute said. Gasoline demand showed its first significant drop in 17 years. Retail gasoline and diesel prices held near record levels.

Big Holder Backs Yahoo's Slate

7 Mutual fund manager Legg Mason LM said it'll vote for the Internet icon's current board rather than the slate backed by activist investor Carl Icahn. Legg, which owns 4.4% of Yahoo YHOO, said the current board diligently evaluated software giant Microsoft's MSFT offers. But Legg also suggested Icahn deserves a place on the board and voiced hope for a compromise. Yahoo edged up.

SEC Tweaks Short-Selling Rules

8 An emergency order curbing short sales of Freddie Mac fre, Fannie Mae fnm as well as investment banks won't apply to market makers. Under pressure from industry groups, the SEC said market makers, which keep exchanges liquid and orderly by facilitating trading, won't have to pre-borrow shares before shorting the stocks. The new rule takes effect Mon. and can last for 30 days.

Schlumberger's EPS, Sales Top

9 The oil-field services titan's Q2 EPS rose 14% to $1.16, beating views by 4 cents. Sales grew 19.6% to $6.75, above forecasts. Schlumberger SLB and its rivals are riding strong demand as energy producers aim to boost output to take advantage of the prolonged rally in crude oil and natural gas prices. Schlumberger sees 20% sales growth in '09, above expectations. Its shares rose 4%.

Honeywell Tops On Int'l Growth

10 The diversified manufacturer said Q2 EPS rose 23% to 96 cents, beating views by 2 cents. Sales grew 4.9% to $9.67 bil, above views. Honeywell HON credited int'l demand for aerospace and building control systems. It said 70% of its sales growth came from overseas. Honeywell raised its '08 EPS outlook to $3.75-$3.85 vs. views of $3.79. Its shares edged down 20 cents to 50.66.