US FINANCIAL MARKET
- U.S. stocks rose slightly at the open on Friday after two days of losses on improving manufacturing data from the U.S. and China as investors speculated on when the Federal Reserve may scale back its stimulus efforts.
- LINN Energy and LinnCo announced today a regulatory update and provided conference call details. The companies noted that the Division of Corporation Finance of the SEC has advised that it has no further comments on Amendment No. 6 to the Joint Registration Statement on Form S-4. LINN Energy’s management will host a conference call on Wednesday, Nov. 6, 2013.Shares are up 10% in the morning trade.
- Wells Fargo paid less than $1 billion to resolve claims with the Federal Housing Finance Agency, the overseer of government-backed mortgage enterprises Fannie Mae and Freddie Mac, over bad mortgages the bank sold ahead of the financial crisis, the Financial Times reported.
- Chevron reported a surprise decline in quarterly profit. Third-quarter net income fell to $4.95 billion from $5.25 billion a year earlier. The company produced 2.59 million barrels of oil equivalent per day in the quarter, up from 2.52 million bpd a year earlier.
- AT&T is laying the groundwork internally for a potential takeover of Vodafone next year. A merger, which would create the world’s largest telecommunications operator by sales of $250 billion wouldn’t be AT&T’s first attempt at combining the companies.
- U.S. October auto sales for the three Detroit-based automakers rose by double-digits from a year earlier, but results at Ford and Chrysler narrowly missed analysts’ expectations.
- General Motors said October sales climbed nearly 16% to 226,402 from 195,764 a year ago.
- Ford said October sales increased 14% to 191,985, from 168,456 a year earlier.
- Chrysler reported October sales of 140,083, up 11% from 126,185 a year ago.
- Volkswagen US said October sales fell 18% to 28,129.
- Hyundai Motor said its U.S. sales climbed 7% to 53,555 vehicles.
- Sony stock headed for the biggest drop in five years after it lowered its full-year profit forecast by 40% on stalling television and digital camera demand and box office flops.
US ECONOMY & POLITICS
- The Markit’s U.S. Manufacturing Purchasing Managers Index (PMI) for October rose slightly to 51.8 (vs. consensus 51.1) from 51.1 in the preliminary print.
- The U.S. manufacturing sector expanded at its fastest pace in October. The Institute for Supply Management (ISM) index of national factory activity rose to 56.4, from 56.2 the prior month. The forward-looking new orders index edged up to 60.6 from 60.5, but the employment index slipped to 53.2 after hitting a 15-month high of 55.4 in September. Production eased to 60.8 from 62.6.
- The U.S. economy will probably expand at a 2% annualized rate in the final three months of the year, compared with a 2.4% forecast in an Oct. 4-9 survey.
- The FAA will allow smartphones, tablet computers and MP3 players to stay on throughout flights, including during takeoff and landing phases, if they’re set to so-called airplane mode, which turns off cellular connections. Mobile-phone calls and text messages will remain forbidden at any time during flight. They are separately banned over concerns that the signals may interfere with ground networks.
EUROPE & WORLD
- Demand for exports drove the fastest upturn in Asia’s factories in months during October, led by China.
- China’s official Purchasing Managers’ Index (PMI) reached an 18-month high of 51.4 in October. A separate HSBC/Markit final PMI rose to a seven-month high of 50.9. Both surveys were above the 50 line separating growth from contraction. Taiwan’s PMI reached its highest level since March 2012, Indonesia’s index hit a four-month high and Japan’s PMI rose to its strongest level in well over three years.
- India was the exception among a group of generally upbeat PMI reports in Asia. Its HSBC/Markit PMI was unchanged at 49.6 in October, indicating the sector was contracting for a third month, despite rising export orders.
- The HSBC/Markit PMI for South Korea showed factory activity expanded for the first time in five months in October.
- UK manufacturing PMI edged slightly lower to 56.0 from a downwardly revised 56.3 in September. But anything over 50 means expansion and the latest number remains within striking distance of August’s two-year peak of 57.1.
- Japan’s economic growth may have slowed in July-September as consumer spending and exports moderated, but growth will quickly bounce back as shoppers spend up before a sales tax hike next year, a Reuters survey found.
- China’s new home prices jumped by the most this year in October as homebuyers defied the government’s property curbs and developers offered more high-priced apartments to tap demand. The average price surged 10.7% last month from a year earlier.
TODAY in HISTORY
- Michelangelo’s paintings on the ceiling of the Sistine Chapel were shown to the public for the first time (1512)
- The Stamp Act, the first direct tax on the American colonies, went into effect (1765)
- The U.S. Weather Bureau made its first meteorological observations (1870)
- The United States exploded the first hydrogen bomb in a test in the Marshall Islands (1952)
- The Maastricht Treaty was enacted, establishing the European Union (1993)
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.