US FINANCIAL MARKET
- U.S. stocks opened higher on Tuesday and the dollar hit an eight-month low after weaker-than-expected job creation last month raised expectations that the Federal Reserve will continue to stimulate the economy at the current pace.
- DuPont’s third-quarter profit beat analysts’ estimates, helped by a strong performance in its solar panel parts and Kevlar body armor businesses. DuPont’s net income rose to $285 million from $5 million a year earlier, when the company recorded charges related to severance and restructuring. Revenue rose 5 % to $7.74 billion, but slightly missed analysts’ estimates of $7.78 billion.
- Lockheed Martin reported higher third-quarter profit despite a 4 % drop in sales, and lifted its forecast for full-year earnings, even as U.S. military spending is reduced. Net income rose 15 % to $842 million from $727 million a year earlier.
- Kimberly-Clark reported higher-than-expected third-quarter earnings. The company raised the low end of its full-year guidance by five cents. Kimberly-Clark reported a profit of $546 million, up from $517 million a year earlier. Sales edged up 0.3% to $5.26 billion. Organic sales were up 5%. Gross margin widened to 34.3% from 33.7%.
- Whirlpool, the world’s No. 1 home appliance maker, raised its full-year earnings forecast after a recovering U.S. housing market and consumer sentiment in Europe lifted sales of its refrigerators, dishwashers and air conditioners. Whirlpool’s sales in North America rose 8.3 % to $2.6 billion. Whirlpool said that sales in its Europe, Middle East and Africa division rose 10.8 % to $778 million in the third quarter. Net income rose to $196 million in the third quarter from $74 million a year earlier.
- Illinois Tool Works misses third-quarter estimates. It reported operating revenues of $3,568 million, down 4.4% year over year and below the consensus estimate of $3,591 million. Organic revenues in the quarter grew 0.4% year over year.
- Coach posted a smaller-than-expected quarterly revenue as sales slipped in North America, its largest market. The company’s sales in North America fell 1 % to $778 million in the quarter. Total sales also fell 1 % to $1.15 billion. Net income slipped to $217.9 million from $221.4 million a year earlier.
- Reynolds American’s third-quarter profit rose about 9 %. The nation’s second-biggest tobacco company earned $457 million, up from $420 million a year ago. Revenue increased about 1 % to $2.14 billion, matching expectations.
- United Technologies, the world’s largest maker of elevators and air conditioners, raised the low end of its 2013 profit forecast on Tuesday, citing cost savings from restructuring and improving sales trends. But it cut its projection for full-year revenue to roughly $63 billion from $64 billion. The company said third-quarter net income rose to $1.43 billion from $1.42 billion a year earlier. Revenue rose 2.8 % to $15.46 billion.
- Freeport-McMoRan’s third-quarter results top analysts’ estimates even as copper, gold average prices fall. Its results topped analysts’ estimates. The company earned $821 million, down from $824 million a year earlier. Revenue increased 40 % to $6.17 billion from $4.42 billion. Wall Street predicted $5.67 billion in revenue.
- McGraw Hill Financial, the parent company of the ratings agency Standard & Poor’s, said that its third-quarter net income fell 32 % as the year-ago period included income from discontinued operations. But its adjusted earnings from continuing operations and revenue beat analysts’ expectations.
- Strong subscriber gains by Netflix prompted analysts to sharply raise price targets on the stock, even as some worried that the shares are getting expensive. Netflix added 1.3 million customers to its U.S. streaming business during the quarter. It expects to end the year with between 32.7 million and 33.5 million users.
- Apple will probably start selling ultra-high definition televisions with 65- and 55-inch screens during the fourth quarter of next year. Apple co-founder Steve Jobs, before he died in 2011, told his biographer he had “finally cracked” how to build a TV with a simple user interface that would wirelessly synchronize content with Apple’s other devices. LG Display, Samsung, and Corning may be among the suppliers for Apple’s TVs, which may be priced at about $1,500 to $2,500. LG Display may supply more than 70 % of the liquid-crystal displays (LCD), Samsung may make graphic processing units and Corning’s Gorilla Glass 3 may be used as the cover.
- Nokia announced upgraded versions of its Asha range of mobile phones.
US ECONOMY & POLITICS
- U.S. employers added far fewer workers than expected in September. Nonfarm payrolls increased by 148,000 workers last month, down from 182,000 from April through June. Economists polled by Reuters had expected the economy to add 180,000 jobs in September. But there was a silver lining in the report. The unemployment rate dropped a tenth of a percentage point to 7.2 %, the lowest level since November 2008.
- Private employment, which excludes government agencies, rose 126,000. Government payrolls increased by 22,000 jobs after rising by 32,000 in August. Both state and local governments added jobs last month, offsetting a decline in federal employment.
- Full-time employment climbed by 691,000 in September while part-time hiring dropped by 594,000.
- Labor force participation rate was unchanged at 63.2 % in September, 0.4 percentage points lower than at the start of the year and the lowest since 1978.
- Average hourly earnings increased three cents to $24.05 in September. They have risen 49 cents or 2.1 % over the past 12 months. The length of the average workweek held steady at 34.5 hours.
- Traders are betting the Federal Reserve will wait well into 2015 to raise interest rates after a U.S. government report showed the labor market lost steam even before this month’s government shutdown.
EUROPE & WORLD
- Germany’s Lufthansa unveiled a new 2013 profit outlook that fell short of expectations.
TODAY in HISTORY
- Andre-Jacques Garnerin made the first parachute jump from a balloon (1797)
- Sam Houston was inaugurated as the first president of the Republic of Texas (1836)
- West Germany joined the NATO (1954)
- President Kennedy announced an air and naval blockade of Cuba, following the discovery of Soviet missile bases on the island (1962)
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.