US FINANCIAL MARKET
- Wall Street rose slightly at the open on Wednesday, adding to fresh records scaled by the Dow and the S&P 500, amid sturdy results and on expectations the Federal Reserve will continue its stimulus efforts into next year.
- General Motors posted a better-than-expected quarterly profit on strong results in its core North American market and the first revenue increase in Europe in two years. GM’s net income fell to $757 million in the third quarter, compared with $1.48 billion in the year-earlier quarter. But operating earnings rose almost 15 % to $2.64 billion. Revenue in the quarter rose 3.7 % from last year to $38.98 billion, but that was short of the $39.49 billion analysts had expected.
- Chrysler’s net profit for the third quarter rose 22 % to $464 million, and it confirmed its full-year sales forecast of $72 billion to $75 billion. Sales rose 13.5 % to $17.56 billion in the quarter.
- Honda said strong car sales in the United States and Japan offset a slowdown in Thailand in the three months to September, helping the Japanese carmaker post a 46 % growth in quarterly net profit. Honda posted a quarterly net profit 120.4 billion yen ($1.2 billion), compared with 82.2 billion yen a year ago.
- Tesla Motors will sharply increase the number of lithium ion battery cells it receives from Japan’s Panasonic. The deal shows Tesla’s faith in its models despite slower-than-expected global sales of electric vehicles.
- Comcast posted net income that beat analyst estimates for the eighth straight quarter on gains in phone and Internet subscribers and as the company generated more cash flow at its cable unit and media arm, NBC Universal, than it had a year ago. It reported third-quarter net income of $1.73 billion, compared with $2.11 billion a year ago. A year ago, it saw gains from the sale of spectrum to wireless companies and from its stake in A&E Television Networks. Revenue fell 2.4 % to $16.15 billion, below analysts’ estimates of $16.26 billion. Comcast’s cable unit, which has the most U.S. subscribers of any cable company with 21.6 million video customers. The cable industry faces a long-term challenge from customers who consume an increasing amount of Internet video and subscribe to lower-cost alternatives such as Netflix.
- Sprint posted a decline in third-quarter revenue as it lost more subscribers than expected. Sprint reported a third-quarter profit of $383 million, compared with a loss of $767 million in the year-ago period. Revenue fell to $8.68 billion from $8.76 billion.
- LinkedIn issued a conservative revenue forecast through the end of the year that damped a sizzling run in its stock price. The company expects between $415 million and $420 million in revenue for the final three months of the year, lower than the $438 million expected by analysts. LinkedIn’s fundamental business roared along in the third quarter. Monthly users rose to 259 million during the quarter, a 38 % rise from a year ago. It posted profits of $46.8 million off $393 million in revenue, well above what Wall Street predicted.
- Yelp reported a wider quarterly loss as it spent more on marketing. Yelp’s net loss widened to $2.3 million in the third quarter from $2.0 million a year earlier. Revenue rose 68 % to $61.2 million.
- Boeing is in talks with four airlines on orders for its redesigned 777X jetliner valued at as much as $87 billion ahead of next month’s Dubai Airshow.
- Phillips 66′s third-quarter profit fell more than expected, with weak global margins causing a loss in the company’s oil refining business.
- Barclays reported relatively “clean” third-quarter results but the British bank’s overall performance was still held back by extraordinary expenses tied to its “Transform” program.
- Western Union’s quarterly profit dropped 20 %, but that’s not what has analysts worried.
- The Eastman Kodak Company announced Tuesday afternoon that starting November 1, 2013, it will list its common shares on the New York Stock Exchange under the ticker “KODK.”
US ECONOMY & POLITICS
- The ADP National Employment Report showed that employers in the vast private sector added 130,000 new jobs to their payrolls this month, below economists’ expectations for a gain of 150,000 jobs.
- Consumer Price Index (CPI) increased 0.2 % last month as energy prices rebounded, after edging up 0.1 % in August. In the 12 months through September, the CPI increased 1.2 %. Core CPI nudged up 0.1 %. In the 12 months through September, it increased 1.7 %.
- The U.S. House of Representatives passed a controversial bill on Tuesday that would delay two government regulators from adopting rules requiring stock brokers and retirement account financial advisers to put their customers’ interests ahead of their own. The bill, which was approved in a 254-166 vote, has virtually no chance of becoming law, after the White House late Monday threatened to veto the measure.
EUROPE & WORLD
- The Nielsen Global Consumer Confidence Index was unchanged in the third quarter from the previous three months at 94, up 2 points from the same period a year earlier. Portugal saw the biggest jump in consumer confidence globally in the third quarter, by a hefty 22 points, while Ukraine saw the biggest drop, by 13 points.
- Economic confidence in the euro-area increased for a sixth month to 97.8 from 96.9 in September.
- European car sales rose the most in more than two years in September, helped by government incentives in Spain, with Renault and Daimler posting the biggest gains.
- German unemployment rose for a third month in October due to East Germany. Unemployment in East Germany rose by 2,000, leaving the jobless rate unchanged at 10.3 %. The number of people out of work in West Germany was unchanged and the rate stayed at 6.1 %. The national rate of 6.9 % is near the lowest level in two decades.
- Spain’s two-year recession ended in the third quarter. GDP rose 0.1 % from the second quarter, when it declined 0.1 %.
- China’s official manufacturing purchasing managers’ index (PMI) is forecast to reach 51.2 from September’s 51.1, according to the median estimate of 11 economists, remaining well above the 50 point line separating expansion from contraction.
- Japan’s industrial output rose less than forecast in September. Production increased 1.5 % from the previous month.
- Moody’s discussed stripping New Zealand of its sole remaining top credit AAA rating amid concern the nation’s current-account deficit is exacerbating its vulnerability to external shocks.
TODAY in HISTORY
- The English parliament passed the Act of Supremacy, making King Henry VIII head of the English church (1534)
- Gen. George C. Marshall won the Nobel Peace Prize for originating the Marshall Plan (1953)
- Muhammad Ali knocked out George Foreman in the eighth round of a 15-round bout in Kinshasa, Zaire (“rumble in the jungle”) to regain his world heavyweight title (1974)
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.