DAVE HARRIS: This is Dave On Stocks podcast #69. I'm Dave Harris. It's Tuesday August 7^th 2007. I'm a long term investor with a perspective on the market and individual stock advice.

At the FOMC, the Fed made the decision to leave interest rates unchanged at 5.25%. The economy is expected to expand at a moderate pace and credit conditions became tighter. All eyes are on the troubled credit market and its possible drag on economic growth. I believe the big question is if housing and subprime issues will hurt the broader economy. Will consumers and businesses have too much trouble borrowing money? Obviously, no one knows for sure if the credit issue is a real concern. But this dilemma is causing the recent volatility in stocks. I suggest the big cap stocks in this highly volatile market because they won't fluctuate as much as the small caps. I would also go a bit more defensive in my portfolio and buy healthcare such as Johnson and Johnson (JNJ) or a diversified goods company like Procter and Gamble (PG).

Duke Energy (DUK) reported a 17 percent decline in the second quarter. But excluding items, the utility company earned .24 cents in the quarter which beat expectations by .04 cents. But it looks like a mixed bag as revenue rose to $3.04 billion, just shy of Wall Street views. I would buy the stock here. Duke Energy International is picking up some steam and the company expects to exceed the full year 2007 guidance of $1.15 per share. Duke is trading .54 cents higher at $18.44.

Aqua America (WTR) the water utility company announced a 9 percent dividend increase. Yesterday, the company said EPS was .18 cents from .17 in the last year's second quarter. Revenue was up by 14 percent to over $150 million. Overall the results exceeded views. I think this stock is a buy and especially like the heavy acquisition activity so far this year. I think it's going to $30 this year. WTR is up .54 at $23.96.

Great results from industrial equipment company Emerson (EMR) today. The 18 percent rise in the quarter beat Wall Street views. Emerson hiked the full year profit views to the range of $2.58 - $2.63 per share. I see a hot year ahead for EMR. The stock is down .25 at $47.86.

That's all for this podcast of Dave On Stocks. I'm Dave Harris. Write me with any questions or comments at the "contact us" link on this page. My website is www.daveonstocks.com. This is Dave On Stocks.