US FINANCIAL MARKET
- U.S. index futures rise as U.S. shutdown enters 4th day. Treasuries fall, dollar weakens for a 4th day vs. yen. Fed officials speak, no S&P 500 earnings scheduled, no jobs report due to shutdown.
- Twitter’s IPO documents suggested a valuation of $12.8 billion for the microblogging service, underscoring the seven-year rise of a still unprofitable company that has helped revolutionize how people share information. Twitter pegged the fair value of its common stock at $20.62 a share in August. There are 620 million shares outstanding.
- Facebook said it will start running ads through its Instagram service.
- Samsung is on track to post its second consecutive year of record earnings. Third-quarter sales increased 13 percent to a record high of 59 trillion won ($55 billion).
- The iPhone 5c’s price is cut in half at best buy after just two weeks on the market. Best Buy is selling the iPhone 5C for only $50 with a two-year contract for the next four days.
- Things are getting very ugly for HTC. Per Bloomberg, HTC on Friday released a horror-filled third-quarter earnings report showing that the company had posted a quarterly loss for the first time in its history.
- Union Pacific expects to report quarterly earnings in the range of $2.45 to $2.48 per share, below consensus $2.56.
- Top Analyst Upgrades and Downgrades:
- Boeing was reiterated at Buy with a street-high $164 price target based on strong September quarter plane deliveries, according to Sterne Agee.
- CSX was downgraded to Neutral from Buy at Citigroup.
- Facebook was reiterated as Buy and the price target was raised to $58, now that the Instagram monetization will begin before year-end, according to Sterne Agee.
US ECONOMY & POLITICS
- Labor Dept. said it won’t release employment data for Sept. because of shutdown.
- U.S. regional mall occupancies climbed to the highest level in more than four years, led by properties owned by REITs. The vacancy rate at malls fell to 8.2 percent in the third quarter from 8.7 percent a year earlier. Asking rents rose to an average of $39.77 a square foot from $39.24.
- President Obama canceled plans to attend summits in Asia as a partial U.S. government shutdown enters a fourth day.
- U.S. House Speaker John Boehner is trying to unite Republicans around a plan to reopen the federal government, raise the debt ceiling and achieve as many of the party’s priorities as they can.
EUROPE & WORLD
- Switzerland’s financial markets regulator said it’s investigating “several” firms over the possible manipulation of the $5.3 trillion-a-day foreign exchange market.
- The Bank of Japan refrained from adding to unprecedented monetary stimulus after business confidence surged and Prime Minister Shinzo Abe decided the economy was strong enough to weather a sales-tax increase. It retained a goal of expanding the monetary base by 60 trillion to 70 trillion yen ($720 billion) a year, the central bank said in Tokyo today.
TODAY in HISTORY
- The International Herald Tribune was published for the first time (1887)
- The Soviet Union launched the first artificial satellite, Sputnik, into orbit around the earth, ushering in the Space Age and Space Race (1957)
Sources: Reuters, Yahoo Finance, Google Finance, Bloomberg, CNN Money.
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