A bigger than expected rise in U.S. workers filing new claims for jobless and last week underscored how fragile the labor market remains even as a measure of economic prospects hit a two year high last month.
Amazon.com Inc. has posted quarterly profit that handily beat Wall Street estimates and has stated holiday sales could come in far above expectations. In North America, sales rose 23 percent in the quarter, while internationally sales grew 33 percent.
American Express Co. posted stronger than expected quarterly earnings as the credit card company trimmed costs, consumer spending declined at a slower pace and credit losses were lower than forecasts.
Dole has sold 35.7 million shares raising $446.4 million. Dole is expected to use the net proceeds to pay down its debt, which is rated B minus, six levels below investment grade.
October 26
Signs of a bumpier road ahead for riskier assets. Equity and bond funds continue to bring in the cash, global stocks are around 12 month highs and U.S. companies are beating earnings expectations as volatility sinks. A lot of the easy money has been made with equities moving from very depressed valuations to normal levels.
Swap your Yahoo Inc. (YHOO.O) shares for those of Google Inc. (GOOG.O) because Yahoo’s Advertising Revenues are on the decline while Google’s are rising. Google’s cost to acquire new subscribers is also falling and its market share for web search grew in September while Yahoo’s did not.
Federal Prosecutors in the Galleon Group case have sent a subpoena to a former employee of SAC Capital Advisors, a sign that the scope of the probe into the largest hedge fund insider trading case in history is expanding. Galleon, which managed $3.7 billion at the end of last week has told investors it will wind down its funds.
Small banks are failing at a rapid pace as they grapple with extensive portfolios of commercial real estate loans that are deteriorating. So far this year 99 U.S. banks have been closed by regulators. Failures are expected to cost the FDIC’s deposit insurance fund about $100 billion USD from 2009 through 2013.
President Barack Obama has declared national emergency over the 2009 H1N1 flu. The declaration will make it easier for U.S. medical facilities to handle a surge in flu patients by allowing the waiver of some requirements of Medicare, Medicaid and other federal health insurance programs.
October 27
More U.S. industries are experiencing an increase in demand and profits.
President Obama is ready to shift the government bailout efforts from larger banks to smaller banks.
The U.S. healthcare system wastes between $505 billion and $850 billion every year. Fraud makes up 22 percent of healthcare waste.
Caterpillar the world’s biggest maker of heavy machinery has stated it plans to permanently cut 2,500 workers even as it has increased demand for its products. Caterpillar has forecast sales next year would rise between 10 percent and 25 percent.
SMA Solar Technology AG has stated it will open a factory in Colorado putting about $22 million into the company’s first production site outside Germany.
October 28
U.S. Treasury Secretary Timothy Geithner has stated that there are strong arguments for extending many government programs geared at lifting the U.S. economy out of recession.
U.S. consumer confidence fell to lower than expected levels in October, amid growing concerns that job market conditions will worsen in the near term.
Visa Inc. has posted higher than expected quarterly earnings, as consumers used their debit cards more and the company raised prices. Visa also authorized a $1 billion share repurchase plan.
Akeena Solar Inc., which designs and installs solar power systems, wants to boost revenue by making further inroads into new U.S. markets and begin selling to consumers through retail chains, hoping to reverse losses.
Chrysler has asked a federal bankruptcy court to approve the sale of its closed plant in Delaware to the University of Delaware for $24.5 million.
October 29
Shipments of durable goods rose 0.8 percent in September and have been up for three of the last four months.
Sales of new homes unexpectedly fell in September their first drop in six months.
General Dynamics Corp. reported a better than expected quarterly profit as strength in defense sales helped offset weakness in business jets.
Microsoft Corp. is viewed as the most likely buyer or partner for the InterActiveCorp.’
China has told the United States it is launching a trade investigation that could lead to new import duties on autos and sports utility vehicles made by Chrysler, Ford and General Motors
Brian Matheson - Financial Analyst
