US FINANCIAL MARKET
- Stocks were little change at the open on Monday as investors found few reasons to keep pushing shares higher after the S&P 500 climbed to a series of records on expectations for continuing Federal Reserve stimulus.
- Merck reported better-than-expected third-quarter earnings thanks to cost cutting, but lower sales of its Januvia diabetes treatment added fresh evidence its biggest product was losing ground to newer drugs. Shares dropped 2.2 % in early trading. The company earned $1.12 billion compared with $1.73 billion in the year-ago quarter. Company sales fell 4 % to $11.03 billion, below Wall Street estimates of $11.12 billion.
- Burger King reported better-than-expected third quarter earnings of $68.2 million. Revenue declined to $275 million.
- Tesla is aiming to sell around 10,000 cars a year in Germany by 2015 as it builds out its networks of charging stations, its chief executive told a German paper. Tesla’s high performance, all-electric Model S went on sale in Europe in August, and even overtook Volkswagen’s Golf as the bestselling car in Norway in September. The Model S costs from 71,400 euros ($98,500) in Germany, according to the group’s website. Tesla is currently working on developing a third-generation electric car by 2017 that will cost between $30,000 and $35,000.
- Boeing and Lockheed Martin will team up to bid on a new U.S. Air Force long-range bomber program, a multibillion-dollar project. Boeing, which has played a role in every U.S. bomber program since World War Two, would be the prime contractor on the next-generation bomber program, with Lockheed as its primary subcontractor. The Air Force has said it plans to buy as many as 100 new bombers for no more than $550 million each. Northrop Grumman, maker of the B-2 stealth bomber, is also expected to compete to build the new long-range strike bomber, a program that’s expected to reap billions of dollars of revenue for the winning bidder.
- Toyota kept its lead over rivals General Motors and Volkswagen this year, January-September global sales figures showed, as the Japanese carmaker closes in on a record annual profit. Toyota sold 7.412 million vehicles, up 0.1 % from the same period a year ago. General Motors sold 7.25 million vehicles during the same period, up 4.6 %, while Volkswagen rose 4.8 % to 7.03 million vehicles.
- Mitsubishi Motors plans to raise around $2 billion in a public share offering as early as January to pay back top shareholders for a 2004 bailout that enabled its decade-long turnaround.
- South Korea’s LG Electronics unveiled a curved smartphone on Monday in a move to catch up bigger rival Samsung. Both Samsung and LG’s curved phones are only available in the South Korean market as they seek to gauge consumer appetite.
- U.S. private equity firm KKR will invest $100 million to build wireless communications infrastructure, the Wall Street Journal reported.
- World’s biggest fast-food chain seeks new ketchup for its famous french fries. McDonald’s said that it plans to end its 40-year relationship with ketchup maker H.J. Heinz, since that company is now led by Bernardo Hees, the former chief executive of hamburger rival Burger King.
- JPMorgan has agreed to pay $5.1 billion to settle claims that it and firms it bought misled Fannie Mae and Freddie Mac about the quality of mortgage securities and home loans it sold to them during the housing boom. The settlement was expected to be part of a tentative $13 billion deal that JPMorgan is negotiating with federal and state agencies over its mortgage bond liabilities.
US ECONOMY & POLITICS
- U.S. manufacturing output slowed in September as the production of computer and electronic goods fell, suggesting business spending ended the third quarter with less momentum. Manufacturing production edged up 0.1 % last month after advancing 0.5 % in August. While manufacturing accounts for only about 12 % of the economy, these reports suggest the economic activity ended the July-September quarter on a weak note.
- Pending Homes Sales Index plunged 5.6 % to 101.6, the fourth monthly fall in a row, the NAR said.
EUROPE & WORLD
- Profits earned by Chinese industrial firms rose 18.4 % to 558.9 billion yuan ($91.9 billion) in September from a year earlier, slower than the annual growth of 24.2 % in August.
- Chinese oil giant Sinopec is for the first time pumping shale gas from test wells in commercial quantities in what it hopes will be a breakthrough in the development of a badly needed new energy source.
TODAY in HISTORY
- Eli Whitney applied for a patent for the cotton gin (1793)
- The Statue of Liberty was dedicated in New York Harbor by President Grover Cleveland (1886)
- Congress passed the Volstead Act, or the National Prohibition Act, over President Woodrow Wilson’s veto (1919)
- A new pope was elected—Pope John XXIII (1958)
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.