US FINANCIAL MARKET
- Wall Street opened little changed on Tuesday after a four-session rally on the S&P 500 as investors focused on developments in the budget talks and a batch of corporate earnings including Citigroup.
- Citigroup posted weaker-than-expected third-quarter earnings hit by a drop in bond trading revenue after the Federal Reserve refrained from changing its bond buying program and customer activity fell. Third-quarter earnings slipped to $3.26 billion from $3.27 billion a year earlier. Revenue fell 5 % to $18.22 billion.
- Coca-Cola reported quarterly earnings that met Wall Street’s expectations as it sold more of its namesake soft drinks, as well as teas and waters, despite a challenging economy. Net income rose 6 % to $2.45 billion from $2.31 billion a year earlier. Revenue fell 3 % to $12.03 billion from $12.34 billion, slightly below analysts’ estimates of $12.05 billion.
- Johnson & Johnson reported better-than-expected third-quarter results. The company reported net earnings of $2.98 billion for the quarter. That compared with $2.97 billion, in the year-earlier period. Overall company sales rose 3.1 % to $17.58 billion, above Wall Street expectations of $17.46 billion, but would have risen 4.7 % if not for the stronger dollar.
- Apple hired Burberry Group CEO Angela Ahrendts as head of retail operations, ending a yearlong search and adding the first woman to its 10-member executive team. Angela Ahrendts rebuilt the brand after over-exposure of its trademark pattern alienated wealthy clientele. Her approach: to embrace digital innovation, build a strong online business and tap Chinese and Latin American markets. Ahrendts will oversee Apple’s more than 400 retail outlets and its online store.
- Macy’s said that most of its stores will open on the U.S. Thanksgiving Day holiday for the first time in its history, in a sign of how competitive the holiday season is shaping up.
- FedEx revealed plans on Tuesday to bolster its share buyback program by an additional 32 million shares.
- In a push to conquer the household staples space, Amazon and Procter & Gamble have partnered to sell goods directly from P&G warehouses, undercutting retail competitors Wal-Mart and Costco. The arrangement, in practice for three years, allows Amazon to fulfill orders for products such as diapers and toilet paper without incurring transportation and storage costs while P&G boosts online sales and allows it to tap virgin markets. The partnership, under a program called Vendor Flex, could be extended to other suppliers, including Kimberley Clark.
- Top Analyst Upgrades and Downgrades:
- Microsoft was raised to Buy from Hold and the price target was raised to $42 from $33 at Jefferies.
- Qualcomm was started as Buy with an $80 price target at Stifel Nicolaus.
- Tesla Motors was raised to Outperform from Neutral with a $240 price target at Wedbush.
US ECONOMY & POLITICS
- House Republicans plan to vote as soon as tonight on a debt-limit increase that would delay the medical-device tax for two years and curtail health insurance benefits for lawmakers and political appointees. Meanwhile, Senate leaders are poised to reach an agreement as early as today to halt the fiscal standoff.
- An ABC News/Washington Post poll found that 74 % of Americans disapprove of how Republicans have been handling the fiscal impasse, compared with 53 % who disapprove of Obama’s approach.
EUROPE & WORLD
- Canadian consumer sentiment fell for a second week as budget disputes in the U.S. continue to weigh on views of the economy. The index fell to 58.5 in the period ended Oct. 11, from 59.0 the previous week.
- German investor confidence increased for a third month in October. The ZEW‘s index of investor and analyst expectations, which aims to predict economic developments six months in advance, rose to 52.8 from 49.6 in September. That’s the highest since April 2010.
- U.K. inflation was unexpectedly unchanged in September as air fares offset a decline in gasoline prices. Consumer prices increased 2.7 % from a year earlier.
TODAY in HISTORY
- Eleven-year-old Grace Bedell of Westfield, N.Y., wrote a letter to presidential candidate Abraham Lincoln, suggesting he could improve his appearance by growing a beard (1860)
- With the support of President Wilson, the Clayton Antitrust Act, which made it illegal for companies to buy competitors’ stock, was passed (1914)
- The U.S. Department of Transportation was created (1966)
- Nelson Mandela and F. W. de Klerk were awarded the Nobel Peace Prize for their work to end apartheid in South Africa (1993)
- China became the third country to launch a staffed space mission (2003)
Sources: Reuters, Yahoo Finance, Google Finance, Bloomberg, CNN Money.
This information has been prepared from sources believed to be reliable, but no representation is being made as to its accuracy or completeness. The information provided should be used only as general information and is not intended to provide specific advice or recommendations for any individual. The economic forecasts set forth in the material may not develop as predicted. All indices, such as the S & P 500, are unmanaged and may not be invested into directly.