US FINANCIAL MARKET
- Wall Street rose at the open on Friday, helped by gains in big companies like Google and Morgan Stanley following their results.
- Google shares jumped to an all-time high above $1000 after the search engine giant reported a surge in mobile and video advertising that helped drive quarterly revenue up 23 %.
- The world’s No.1 Web search engine said that its Internet business delivered net revenue, which excludes fees paid to partners, of $10.8 billion in the third quarter, up 23 % from $8.76 billion in the year-ago period. Google’s consolidated revenue of $14.89 billion, compared to the $14.79 billion average analyst estimate. Paid clicks increased 26 % year-on-year during the three months. Google earned $2.97 billion, compared to $2.18 billion last year. Operating loss at Motorola, Google’s mobile phone business, totaled $248 million during the third quarter, compared to a loss of $192 million in the third quarter of 2012.
- General Electric posted a record backlog of orders that the company said positioned it well for 2014, lifting shares and overshadowing a decline in quarterly profit and revenue. Net income fell to $3.19 billion in the third quarter, from $3.49 billion a year earlier. Excluding one-time items, earnings per share topped the average estimate of analysts by a penny. Revenue fell 1.5 % to $35.7 billion. Analysts looked for nearly $36 billion.
- Revenue was weighedGoo down by its GE Capital finance arm, which the company is shrinking, and a $132 million toll from the negative impact of foreign currency translation. Among GE’s seven industrial segments, its oil and gas and aviation lines posted revenue increases of 18 % and 12 %, respectively, offsetting a 10 % decline in its power and water unit that makes a variety of turbines. The company’s accumulated backlog of service and equipment orders rose to $229 billion, up $6 billion from the second quarter.
- Kansas City Southern posted higher third-quarter earnings and revenue as shipments increased, and the U.S. railroad said it expected a strong end to the year. Revenue rose 8 % to $622 million from $577.40 million, and carload volumes increased 3 %. It earned $119 million in the quarter, compared with $91 million a year earlier.
- The company attributed the revenue growth primarily to a 17 % growth in Intermodal. Further, revenues from industrial & consumer, as well as agriculture & minerals and automotive, each grew by 7 %. Energy revenues increased 6 % and chemicals & Petroleum revenue rose 3 % from last year. The company stated that it is particularly excited of the fact that cross-border revenue grew 16 % in the quarter, along with continued strength in cross-border intermodal. Cross-border revenue also benefited from strength in steel shipments and an early rebound in export grain.
- Morgan Stanley posted a higher-than-expected quarterly profit as stock trading revenue jumped 31 %. Overall, the second-largest U.S. investment bank posted third-quarter net income of $888 million, compared with a loss of $1.01 billion a year earlier. Overall revenue rose to $7.93 billion from $5.28 billion, driven by equities trading and the company’s fast-growing wealth management business.
- Honeywell International posted lower-than-expected quarterly revenue and cut its full-year sales forecast on Friday, citing delays in closing sales to some customers. The company, which makes cockpit electronics and systems to manage the climate and security of large buildings, also raised the bottom end of its full-year profit outlook by 5 cents a share. The company posted net income of $990 million, compared with $950 million, or $1.20 per share a year earlier. Revenue rose 3 % to $9.65 billion, missing the $9.92 billion that analysts expected.
- Chipotle Mexican Grill reported a 15 % increase in quarterly profit as sales at established restaurants rose more than expected due to an increase in visits from diners. Net income rose to $83.4 million from $72.3 million a year earlier.
- Bombardier said China’s CDB Leasing may buy an additional 15 CSeries jetliners, potentially taking its total order to 30 aircraft worth about $2 billion, based on list prices.
US ECONOMY & POLITICS
- A battle for control of the Republican Party has erupted as an emboldened Tea Party moved to oust senators who voted to reopen the government while business groups mobilized to defeat allies of the small-government movement.
EUROPE & WORLD
- China’s economy grew at its quickest pace this year between July and September in a rebound fuelled largely by investment. GDP rose 7.8 % from a year earlier. In the first nine months of the year, the $8.5 trillion economy grew 7.7 % from a year earlier, putting it on track to achieve Beijing’s 2013 growth target of 7.5 %, which would still be China’s worst performance in 23 years.
- Canada and the European Union reached an “agreement in principle” on a free-trade treaty that brings near an end more than four years of negotiations. Negotiations had been deadlocked over agricultural-goods disputes until recently, particularly over Canadian beef and EU cheese. The pact will eliminate about 98 % of all Canadian and EU tariff lines on the first day of its implementation. An agreement would increase annual Canadian gross domestic product by 8.2 billion euros ($11.1 billion), equivalent at the time to about 0.77 % of the country’s output. The EU economy would increase its annual output by 11.6 billion euros.
- Canadian consumer prices advanced at a 1.1 % pace for a second month in September. The core rate, which excludes eight volatile products, also matched August’s pace at 1.3 %.
- Japan’s government has put off key labor market deregulation.
TODAY in HISTORY
- Louis XIV revoked the Edict of Nantes (1685)
- The boundary between Maryland and Pennsylvania, the Mason-Dixon line, was agreed upon (1767)
- The United States took possession of Alaska from Russia (1867)
- The first Balkan War broke out for the possession of the European territories of the Ottoman Empire (1912)
- Inventor Thomas Alva Edison died in West Orange, N.J., at age 84 (1931)
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.