US FINANCIAL MARKET
- U.S. stocks opened modestly higher on Friday, with the Nasdaq outperforming on the back of strong results from companies such as Amazon and Microsoft.
- Amazon.com posted a narrower quarterly loss and grew sales by a better-than-expected 24%. Net loss was $41 million in the third quarter. It posted revenue of $17.1 billion in the third quarter, up from $13.8 billion a year earlier. Analysts had expected it to post sales of $16.8 billion on average. Third-quarter profit margins came in about 27.6%, in line with what analysts had expected. Amazon gave a forecast saying its holiday sales will be between $23.5 billion to $26.5 billion.
- Microsoft cruised past Wall Street’s quarterly profit and revenue forecasts, helped by strong sales of its Office and server software to businesses. Microsoft posted a 17% increase in profit to $5.2 billion, up from $4.5 billion in the year-ago quarter. Revenue rose 16% to $18.5 billion. Analysts had expected $17.8 billion, on average.
- Samsung’s net profit spiked 25.6% to another record in the third quarter, driven by soaring revenue from memory chip sales. The world’s largest technology firm by revenue said that net profit rose to 8.24 trillion won ($7.8 billion), from 6.56 trillion won a year ago.
- Procter & Gamble is chugging along with its turnaround, posting a quarterly profit that met Wall Street’s expectations. P&G earned $3.03 billion up from $2.81 billion a year earlier. Sales rose 2.2% to $21.21 billion, topping Wall Street’s forecast of $21.04 billion.
- UPS said increased demand in domestic ground shipments lifted profits in the third quarter and expects online sales to boost shipping volumes as it heads into the holiday quarter. It earned $1.10 billion compared with $469 million a year earlier. Revenue came in at $13.52 billion, up 3.4% over last year, mainly helped by U.S. e-commerce shipments and strong European export growth.
- AbbVie reported third-quarter earnings that beat analysts’ estimates as sales of its top drug Humira increased. Sales of Humira increased 19% to $2.77 billion from a year earlier. The company raised the bottom end of its full-year forecast. Net income fell to $964 million from $1.59 billion a year earlier. Revenue rose to $4.66 billion from $4.51 billion a year earlier.
- Lear raised its full-year forecast as demand rose for its auto seats and electric power systems due to strong vehicle sales in the US. Sales rose 9% to $2.89 billion in the third quarter. Total revenue rose 11% to $3.92 billion. Net income attributable to Lear fell to $112.8 million in the quarter from $121.4 million a year earlier. Earnings, however, rose to $1.38 per share from $1.23 as Lear bought back shares in the past 12 months.
- Aviation electronics supplier Rockwell Collins reported a higher quarterly profit, helped by share repurchases and higher commercial system sales. Net income came to $175 million, compared with $152 million a year earlier.
- Simon Property Group reported a better-than-expected third-quarter profit, raised its forecast for the year and said it was boosting its dividend. Occupancy at Simon’s malls and outlet centers rose to 95.5% from 94.6% a year earlier, and it was able to push up base rents by 3.5% for new leases. The average base rent was $41.73 per square foot. New leases were $8.05 higher per square foot than expiring ones.
- World number two truck maker Volvo posted a sharp drop in third-quarter profit, hit by a strong Swedish currency and the costs of its biggest ever introduction of new models. Volvo, Sweden’s largest private-sector employer, also said that it will cut 2,000 jobs.
- Diversified manufacturer Eaton Corp cut the top end of its full-year profit forecast for the second time and reported lower-than-expected quarterly revenue, citing weakness in the heavy-duty truck and hydraulic systems markets.
- Boeing has secured commitments for around 200 of its 737 Max aircraft, the upgraded variant of its best-selling short-haul planes, from multiple Chinese customers. The deals are worth a combined $20.7 billion at list prices.
- Boeing said that there are 1,650 single-aisle aircraft in China, with existing orders for another 700. These fly on domestic and regional routes of up to five hours. The planemaker also forecast that China will take delivery of 3,900 single-aisle aircraft over the next 20 years.
- Walt Disney said it plans to open its first China store in Shanghai, expected to be its largest ever. The 53,000 square feet Disney Store, expected to open in early 2015. The Disney Store made its debut in 1987 and now spans 340 locations around the world.
- DuPont said that it will spin off its titanium dioxide unit into a separately traded public company within 18 months. DuPont said its existing shareholders will own 100% of the performance chemicals business after the spinoff.
- Seeking to avoid a repeat of Facebook’s much-maligned public debut, Twitter revealed more modest ambitions, saying its initial offering would raise up to $1.6 billion and value the company at up to about $11 billion. It intends to sell 70 million shares between $17 and $20 apiece, raking in up to $1.4 billion for the company. According to a document reviewed by Reuters, the stock could begin trading as early as November 7.
- Bill Gross butted heads with billionaire investor Carl Icahn, telling Icahn to leave Apple alone after he again urged it to initiate a tender offer to buy back $150 billion of its shares.
US ECONOMY & POLITICS
- The Thomson Reuters/University of Michigan’s consumer sentiment fell to 73.2 in October from 77.5 in September and was the lowest final reading since December 2012.
- Other gauges also hit multi-month lows. The index of consumer expectations, at 62.5, hit its lowest since November 2011, and the index of current conditions, at 89.9, hit its lowest since April.
- The Congressional impasse likely affected growth in the quarter, with Standard & Poor’s estimating the shutdown took $24 billion out of the world’s biggest economy.
- New orders of non-military capital goods other than aircraft, an indicator of business spending plans, fell 1.1% last month, the Commerce Department said on Friday.
- Overall orders of long-lasting factory goods to rise a more-than-expected 3.7% during the month, helped by aircraft orders.
- But orders for durable goods, which include everything from toasters to tanks, fell 0.1% when factoring out transportation equipment.
- Inventories at U.S. wholesalers increased in August by the most in seven months as merchants tried to keep pace with stronger demand. The value of unsold goods increased 0.5% after a revised 0.2% gain in July. Wholesalers had enough goods on hand to last 1.17 months at the current sales pace.
EUROPE & WORLD
- Britain’s economy picked up more speed between July and September, growing at its fastest pace in more than three years. GDP rose by 0.8%.
- German business confidence decreased for the first time in six months in October. The Ifo institute’s business climate index, based on a survey of 7,000 executives, fell to 107.4 from 107.7 in September.
- Turkey would be open to new offers for a missile defense system if a deal agreed with a Chinese firm under U.S. sanctions falls through, PM Tayyip Erdogan was quoted on Friday as saying.
TODAY in HISTORY
- King George III of Britain was crowned (1760)
- The United States invaded the Caribbean nation of Grenada (1983)
- The Battle of Agincourt between England and France during the Hundred Years War took place (1415)
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.