Morning Market Update
• US: Dow: 13037.00 (-0.15%), S&P 500: 1408.60 (0.03%), NASDAQ: 2653.00 (0.19%)
• Europe: CAC: 3431.05 (0.57%), DAX: 7229.87 (0.41%), FTSE: 5802.41 (-0.05%).
• Asia-Pacific: Australia: 4472.40 (-0.84%), China: 2066.21 (-1.71%), Hong Kong: 21545.57 (-1.23%), India: 5664.30 (-0.72%), Japan: 8933.06 (-1.37%).
• Metals: Gold: 1710.60 (-0.14%), Silver: 32.06 (-0.06%), Copper: 3.56 (0.30%)
• Energy: Crude Oil: 86.25 (0.23%), Natural Gas: 3.38 (-1.34%)
• Commodities: Corn: 7.42 (0.07%), Soya Bean: 15.63 (-0.18%), Wheat: 8.72 (0.23%)
• Currency: EUR/USD: 1.2922 (-0.10%), GBP/USD: 1.6118 (-0.01%), USD/JPY: 79.8400 (-0.59%)
• 10 year US Treasury: 1.789% (-0.034)
Financial and Economic News Update
U.S. stock-index futures rebound from lows: U.S. stock-index futures pared losses and are pointing to a higher open on Friday after the U.S. economy grew more than expected in the third quarter. Gross domestic product expanded at a 2 percent annual rate, according to the Commerce Department, easily topping expectations for a 1.9 percent growth rate. Growth improved from 1.3 percent pace in the second quarter.
European markets trading mostly higher: European markets are trading higher on Friday with the German DAX (INDEXDB:DAX) up 0.4 percent at 7229.87, the FTSE 100 (INDEXFTSE:UKX) was flat at 5802.41 and the CAC 40 (INDEXEURO:PX1) added 0.6 percent to 3431.05. The euro zone blue-chip ESTX 50 PR.EUR (INDEXSTOXX:SX5E) (Euro Stoxx 50) was trading 0.5 percent higher.
Asian markets end lower: Asian markets closed lower on Friday with the HANG SENG INDEX (INDEXHANGSENG:HIS) down 1.2 percent on the day, but flat on the week at 21,545.6, while the SSE Composite Index (SHA:000001) (Shanghai Composite Index) slipped 1.7 percent on Friday and 2.9 percent this week. Japan’s NIKKEI 225 (INDEXNIKKEI:NI225) lost 1.4 percent to 8,933.06. The S&P/ASX 200 (INDEXASX:XJO) index fell 0.8 percent on Friday. The benchmark Indian 30-share BSE SENSITIVE (INDEXBOM:SENSEX) index ended down 0.7 percent.
Company News Update
• Comcast Corporation (NASDAQ:CMCSA) reported third-quarter earnings excluding items of 46 cents per share, in line with estimates. Revenue rose to $16.54 billion from $14.34 billion a year ago, topping estimates of $16.05 billion.
• Rockwell Collins, Inc. (NYSE:COL) posted fourth quarter earnings excluding items of $1.32 a share, on revenue of $1.27 billion. Analysts were looking for earnings of $1.13 a share on revenue of $1.33 billion.
• Coventry Health Care, Inc. (NYSE:CVH) said third-quarter net income dipped to $105 million, or 78 cents per share, from $122 million, or 83 cents per share, in the year ago period. Operating revenue increased to $3.46 billion from $2.98 billion, a year earlier. Analysts had forecast earnings of 73 cents on revenue of $3.5 billion.
• Insurance brokerage Aon PLC (NYSE:AON) said third quarter earnings from continuing operations rose to 95 cents a share from 69 cents a share. Revenue gained 0.5 percent to $2.74 billion. Analysts had projected earnings from continuing operations of 89 cents a share on $2.79 billion in revenue.
• Warren Buffett’s Berkshire Hathaway Inc. (NYSE:BRK.A) (NYSE:BRK.B) won an auction for a 47,000-loan portfolio held by Residential Capital LLC with a $1.5 billion bid, ResCap said yesterday.
• Legg Mason, Inc. (NYSE:LM) said second-quarter adjusted profit increased to 75 cents a share from 64 cents a share in the year-ago period. Revenue declined to $640.3 million from $670 million. Analysts had expected the financial services firm to earn 53 cents a share on revenue of $635.7 million
• The Goodyear Tire & Rubber Company (NYSE:GT), the largest U.S. tiremaker, reported third quarter adjusted profit of 53 cents a share that trailed the average analysts’ estimate of 59 cents a share. Sales fell 13 percent to $5.26 billion, missing estimates of $5.87 billion.
• Auto components company Dana Holding Corporation (NYSE:DAN) reported third quarter earnings excluding one-time items of 37 cents a share, on revenue of $1.72 billion that trailed estimates of earnings of 45 cents a share on revenue of $1.82 billion. The company lowered its full-year earnings and revenue outlook.
• Cerner Corporation (NASDAQ:CERN) posted a 25 percent jump in third quarter profit to $98.9 million, or 56 cents a share, from $78.8 million, or 45 cents a share, in the year-ago period. The hospital-information technology vendor raised the lower end of its full-year earnings range.
• Consumer-goods company Newell Rubbermaid Inc. (NYSE:NWL) said third quarter earnings excluding certain items rose to 47 cents a share from 45 cents a share. Sales came in at $1.54 billion. Analysts had forecast earnings of 44 cents a share on revenue of $1.54 billion. The company raised its quarterly dividend by 50 percent to 15 cents a share from 10 cents a share.
• Specialty truck maker Oshkosh Corporation (NYSE:OSK) said third quarter profit from continuing operations increased to $77.6 million, or 85 cents a share, from $40.3 million, or 44 cents per share, in the year-ago quarter. Sales dipped 2.3 percent to $2.06 billion.
• Lear Corporation (NYSE:LEA) reported third quarter earnings excluding items of $1.29 a share, 9 cents above the average analysts’ estimate. Sales gained 2.3 percent to $3.54 billion, also topping estimates of $3.47 billion.
• LifePoint Hospitals, Inc. (NASDAQ:LPNT) posted third quarter profit of $19.2 million, or 39 cents a share, down from $38.8 million, or 77 cents, in the same period last year. Revenue increased 11 percent to $820.2 million. Analysts had expected the rural hospital operator to report earnings of 76 cents on revenue of $815 million.
• Coal company Peabody Energy Corporation (NYSE:BTU) expects to resume talks with the Mongolian government in early 2013 over acquiring a stake in a block in the Tavan Tolgoi deposit in the remote South Gobi desert, Reuters reported.
• Starbucks Corporation (NASDAQ:SBUX) said its joint venture with the Tata group has opened two more outlets in India. The coffee retailer opened its first cafe in the country last Friday.
• Dairy giant Dean Foods Company (NYSE:DF)’s Morningstar unit has attracted takeover interest from diversified food processor Michael Foods and Mexico’s Grupo Lala, in a deal that could fetch upto $1.5 billion range, Reuters reported.
• Stephen Schwarzman, chairman of private equity giant The Blackstone Group L.P. (NYSE:BX) said the firm is planning to increase its real estate investments in the Asia-Pacific region after raising more than $13 billion for a property fund, according to a Bloomberg report.
• Industrial machinery maker Gardner Denver, Inc. (NYSE:GDI) said it is exploring a potential sale or merger of the company, according to a Reuters report.
• Carbonite Inc. (NASDAQ:CARB) posted third quarter adjusted loss of 7 cents a share that easily topped analysts’ expectations for a loss of 18 cents a share. Revenue came in at $21.57 million, up from $15.93 million, a year earlier, also beating the average analysts’ estimate of $21.42 million.
• XPO Logistics Inc (NYSE:XPO) has acquired the freight brokerage division of Ozburn-Hessey Logistics for $50 million in cash, according to a Reuters report. Ozburn-Hessey Logistics is owned by private equity firm Welsh Carson.
• NetSuite Inc. (NYSE:N) reported a third-quarter adjusted profit of 8 cents a share, 2 cents above Street expectations. Revenue increased to $79.79 million, from $60.96 million, a year earlier, topping estimates of $78.04 million.
• Chip equipment company KLA-Tencor Corporation (NASDAQ:KLAC) reported first quarter earnings excluding items of 84 cents per shares on revenue of