Every morning we put out a report with the latest news in global stock markets, company news, and global economic news.
• US: Dow Futures: 13452.00 (-0.26%), S&P 500 Futures: 1449.00 (-0.17%), NASDAQ Futures: 2729.00 (-0.14%)
• Europe: CAC: 3524.83 (-0.29%), DAX: 7414.19 (-0.31%), FTSE: 5911.03 (-0.10%).
• Metals: Gold: 1738.10 (-0.38%), Silver: 32.51 (-1.07%), Copper: 3.69 (-1.35%)
• Energy: Crude Oil: 92.45 (0.38%), Natural Gas: 3.62 (1.12%)
• Commodities: Corn: 7.63 (0.33%), Soya Bean: 15.45 (0.00%), Wheat: 8.77 (1.07%)
• Currency: EUR/USD: 1.3058 (-0.06%), GBP/USD: 1.6048 (0.02%), USD/JPY: 79.2800 (0.00%)
• 10 year US Treasury: 1.813% (-0.021)
Financial and Economic News Update
U.S. stock-index futures down: U.S. stock-index futures are pointing to a lower open on Friday following several disappointing earnings reports from major companies including Google Inc (NASDAQ:GOOG), Microsoft Corporation (NASDAQ:MSFT) and General Electric Company (NYSE:GE).
European markets trading lower: European markets are trading lower on Friday with the German DAX (INDEXDB:DAX) giving up 0.3 percent at 7414.19, the FTSE 100 (INDEXFTSE:UKX) lost 0.1 percent to 5911.03 and the CAC 40 (INDEXEURO:PX1) down 0.3 percent to 3524.83. The euro zone blue-chip ESTX 50 PR.EUR (INDEXSTOXX:SX5E) (Euro Stoxx 50) was trading 0.8 percent lower
Company News Update
• Bellwether U.S. conglomerate General Electric Company (NYSE:GE) said third-quarter net income increased 8.3 percent to $3.49 billion, or 33 cents per share, from $3.22 billion, or 22 cents per share, in the year-ago period. Excluding one-time items, earnings stood at 36 cents per share, in line with estimates. Revenue gained 2.8 percent to $36.35 billion from $35.36 billion, trailing Wall Street estimates of $36.94 billion.
• McDonald’s Corporation (NYSE:MCD) reported third-quarter earnings excluding items of $1.43 a share, 4 cents below the average analysts’ estimate. Revenue for the period increased to $7.2 billion from $7.17 billion a year earlier that beat estimates of $7.16 billion. The fast food giant increased its dividend 10 percent to 77 cents a share from 70 cents a share.
• Yahoo! Inc. (NASDAQ:YHOO) said it will close its South Korean operation and end its local portal service by the end of the year, as chief executive Marissa Mayer focuses the company’s resources on more profitable units, according to Yonhap news agency.
• Chesapeake Energy Corporation (NYSE:CHK) is up in early morning trade after Chief Executive Officer Aubrey McClendon told CNBC’s Jim Cramer that the second-largest U.S. natural-gas producer is planning to sell between $13 billion and $14 billion in assets.
• Schlumberger Limited. (NYSE:SLB), the world’s largest oilfield services company, said third-quarter profit jumped 9.5 percent to $1.42 billion, or $1.07 a share, from $1.3 billion, or 96 cents, a year earlier. Excluding items, earnings came in at $1.08 a share, 2 cents above the average analysts’ estimate. Sales increased 11 percent to $10.6 billion, trailing estimates of $10.68 billion.
• Cooper Industries plc (NYSE:CBE) reported third-quarter profit of $188.4 million, or $1.16 a share, up from $160.2 million, or 98 cents a share, in the same period last year. Revenue increased to $1.5 billion from $1.4 billion, a year earlier. Analysts had expected the industrial firm to earn $1.13 a share on revenue of $1.5 billion.
• Industrial company Honeywell International Inc. (NYSE:HON) reported a 10 percent rise in third quarter profit to $950 million, or $1.20 a share, up from $862 million, or $1.10 a share, in the same period last year. Revenue gained 0.5 percent to $9.34 billion. Analysts were expecting earnings of $1.14 a share on revenue of $9.51 billion. The maker of aerospace, building control and safety products narrowed its full-year earnings and revenue estimate.
• Japanese tech company Sony Corporation (NYSE:SNE) (TYO:6758) said it plans to close a factory in central Japan and cut about 2000 jobs as part of a restructuring plan.
• Starbucks Corporation (NASDAQ:SBUX) opened its first store in India on Friday, attempting to gain a toehold in one of the world’s fastest growing economies.
• Diversified company Ingersoll-Rand PLC (NYSE:IR) reported third quarter profit of $321.6 million, or $1.03 a share, up from $86.2 million, or 25 cents a share, in the year ago period. Excluding certain items, earnings rose to $1.07 a share from 81 cents a share, a year earlier. Revenue fell 8 percent to $3.593 billion, but excluding costs related to the sale of its Hussmann refrigeration, total revenue was down only 1 percent. Analysts had projected earnings of 98 cents per share on revenue of $3.65 billion. The company revised its full year earnings and revenue outlook.
• ArcelorMittal (NYSE:MT) (AMS:MT), the world’s largest steelmaker, is looking to sell a minority stake in its Canadian iron ore business and has retained Goldman Sachs and RBC Capital Markets to assist in the process, according to a Reuters report.
• Oilfield services firm Baker Hughes Incorporated (NYSE:BHI)’s third quarter earnings fell 60 percent to $279 million, or 63 cents per share, from $706 million, or $1.61 per share, in the year ago period. Excluding certain items, earnings fell to 73 cents per share from $1.18 per share, a year ago. Revenue rose 3.2 percent to $5.23 billion. Analysts polled by Thomson Reuters had most recently forecast earnings of 84 cents on revenue of $5.44 billion. Analysts were expecting earnings of 84 cents on revenue of $5.44 billion.
• Motion and control equipment maker Parker Hannifin Corporation (NYSE:PH) said first quarter earnings fell 19 percent to $239.7 million, or $1.57 a share, from $297 million, or $1.91 a share, in the same period last year. Revenue edged 0.6 percent lower to $3.21 billion. Wall Street analysts had forecast earnings of $1.73 on revenue of $3.23 billion. The company also lowered its full-year adjusted per-share earnings outlook.
• Manpower Inc (NYSE:MAN) said third-quarter profit declined 21 percent to $63.1 million, or 79 cents a share, from $79.6 million, or 97 cents a share, in the same period last year. Revenue fell 11 percent to $5.17 billion. Analysts were looking for earnings of 68 cents a share on revenue of $5.1 billion. The company provided current quarter earnings outlook that topped estimates.
• Networking solutions company Riverbed Technology, Inc. (NASDAQ:RVBD) reported third quarter earnings excluding certain items of 28 cents a share on adjusted revenue of $219 million that beat the average analysts’ estimate of 25 cents a share on revenue of $217 million.
• Chipmaker Marvell Technology Group Ltd. (NASDAQ:MRVL) lowered its fiscal third-quarter outlook and said its Chief Financial Officer Clyde Hosein had resigned. The company said it now expects revenue to range between $765 million to $785 million, down from its previously expected range of $800 million to $850 million. Analysts have forecast revenue of $910.4 million.
• Softbank Corp (TYO:9984) Chief Executive Masayoshi Son told the Wall Street Journal that he does not rule out making a competing bid for MetroPCS Communications Inc (NYSE:PCS).
• Chinese auto parts maker Wanxiang Group Corp is planning to top Johnson Controls, Inc. (NYSE:JCI)’s bid for the auto business of A123 Systems, Inc. (NASDAQ:AONE).
• Grain trader Archer Daniels Midland Company (NYSE:ADM) has acquired a 10 percent stake in Australia’s GrainCorp Limited (ASX:GNC), valuing the bulk grain handler at 2.7 billion Australian dollars ($2.8 billion).
• ATM maker NCR Corporation (NYSE:NCR) said its third-quarter profit more than tripled to $57 million, or 35 cents a share, from $16 million, or 14 cents a share, in the year-ago period. The company reported adjusted profit of 64 cents a share, while revenue for the period increased 5.5 percent to $1.44 billion, from $1.36 billion a year ago. Analysts had been expecting a profit of 59 cents per share on revenue of $1.49 billion.
• The board of WebMD Health Corp. (NASDAQ:WBMD) made amendment to its shareholder rights agreement to protect against inadequate or coercive takeovers, the company said on Friday.
• Harley-Davidson, Inc. (NYSE:HOG) was raised to “overweight” from “neutral” by analysts at JPMorgan Chase.
• Analysts at UBS AG initiated coverage on Chinese internet company Baidu.com, Inc. (NASDAQ:BIDU) with a “buy” rating and a price target of $155.
Economic Calendar for Friday, October 19, 2012:
10:00 A.M. ET: Existing Home Sales Change (September)
10:00 A.M. ET: Existing Home Sales (MoM) (September)