Blue chip corporate earnings propped the markets all week long, with the Dow Jones Industrials (INDEX: ^DJI) gaining 1.7% before the market opened today.  However, the surprisingly strong earnings season could not withstand the downward pressure applied by an uptick in the 10-year Spanish bond yield. The bonds are now trading well above the dangerous 7% yield mark, reaching the all-time high in the Euro era. The European markets sold off heavily, causing a tailspin for the Dow, which gave back 1% of the week’s gains. Spain’s debt dilemma also took a bit out of crude oil prices, as investors fear the worsening situation could further slow the already dire global economic growth rate.  
 

Index

Gain/Loss

Gain/ Loss %

Dow Jones Industrial Average -120.79 -.93%
S&P 500 (INDEX: ^GSPC) -13.85 -1.01%
Nasdaq -40.60 -1.37%
WTI Oil Futures -1.30 -1.39%

Source: Yahoo! Finance

Earnings report

Starting with the Dow, General Electric (NYSE: GE) saw its second quarter net income fall 16%, recording earnings of $3.11 billion, or 29 cents per share. The company beat expectations, and confirmed that the slowdown was caused by charges that are not part of the company’s core businesses. For the day, GE was up .35%. General Electric is doing a fabulous job refocusing on its key strengths and building a great international portfolio. If you're interested in one of America’s truly great companies, than you will need to look into Motley Fool’s new premium report, which details everything you need to know about GE.

Good news came from the oil services industry, as two of the big boys surprised Wall Street before the market opened. Baker Hughes (NYSE: BHI) smashed expectations, increasing second quarter net income by 30%, displacing a stellar EPS of $1 and beating analyst expectations by 23 cents. The oil field services provider was pleasantly surprised by the surge in international revenue and increased margins, as the domestic picture remained flat. Baker Hughes surged after announcing its second quarter earnings, increasing its share price by 9.2%. Schlumberger (NYSE: SLB) saw the same market trends, with international and Gulf of Mexico revenues providing for the slumping North America natural gas production. Schlumberger increased earnings 4.8% in the second quarter.