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GM smokes expectations

Wall Street getting off to a rocky start this morning following a record-breaking run. Stocks (^DJI, ^GSPC, ^IXIC) were mixed in early trading despite stronger-than-expected results from GM (GM) and Pulte (PHM) and more signs the labor market is improving.

The number of people claiming unemployment benefits fell unexpectedly last week. Initial claims for jobless benefits slipped 1,000 to a seasonally adjusted 253,000 for the week ended July 16. That’s the lowest reading in three months, according to the Labor Department Claims for the prior week were unrevised.

Meanwhile, the European Central Bank left rates unchanged and held back on providing further stimulus as ECB President Mario Draghi and company asses the impact of the Brexit.

Stocks to watch

General Motors (GM) raised its outlook for the year after second-quarter results raced way ahead of Wall Street estimates, as profits more than doubled from a year ago as demand for trucks and SUVs drove up US sales.

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Mattel (MAT) reported a narrower-than-expected loss, and revenue also topped analysts’ estimates, as Barbie made a comeback in the second quarter with sales jumping 23%. However, other girl brands and boys’ toys weighed on overall sales.

Intel (INTC) posted earnings per share that beat expectations, but revenue was a tad shy of estimates due to slower-than-expected growth in chip sales for data centers and a charge related to its efforts to restructure and cut costs.

Joy Global (JOY) shares soared in early trading. Japan’s construction machinery giant, Komatsu, said it’s buying its US rival for $2.9 billion in cash. That translates to $28.30 a share. This announcement comes as it looks to compete with industry leader Caterpillar and as more Japanese firms seek growth in the US market.

Musk’s vision

Elon Musk, the founder of both Tesla (TSLA) and SolarCity (SCTY), laid out part two of his master plan. He plans to roll out electric trucks, buses and a ride-sharing service, as well as an integrated solar and battery product.

Chipotle preview

Chipotle (CMG) will announce its second-quarter earnings after the closing bell. Analysts are looking for Tesla to earn $0.91 cents a share. That’s down sharply from $4.45 a share a year ago. The chain is still trying to recover after a series of food scares. How long will it be until we can see a sales recovery at Chipotle?

Convention Tension

The drama continues at the Republican National Convention. Texas Senator Ted Cruz took the stage, and even though he congratulated Donald Trump for winning the nomination, the crowd booed him for ending his speech without a clear endorsement. Cruz’s wife, Heidi, even left the convention floor as a safety precaution.