News Highlights: Top Equities Stories Of The Day
10/15 01:00 PM
TOP STORIES
US STOCKS DOWN STEEPLY ON GLOBAL ECONOMY WORRIES
Stocks slide and the Dow Jones Industrial Average is down by more than 300 points, below 9,000, as lackluster corporate earnings and another big drop in oil prices feed into fears about the depth of a potential global recession.
BERNANKE SAYS USING ALL TOOLS TO STABILIZE MARKETS
Fed Chairman Ben Bernanke keeps the door open to further interest rate cuts, saying policymakers will keeping using "all the tools at our disposal" to restore stability in financial markets. He also says credit markets will take time to "unfreeze."
JPMORGAN NET PLUNGES 84% ON WRITE-DOWNS
Banking giant's 3Q net tumbles to $527 million, or 11c a share, amid $3.6 billion in write-downs and $640 million in losses from its acquisition of Washington Mutual (WAMUQ:$0.0980,$0.0004,0.41%) , but says profits triple at the investment banking unit. Shares down 1%.
US RETAIL SALES DIVE IN SEPTEMBER
U.S. retail sales take the sharpest drop in three years, diving by 1.2% last month, as consumers sharply cut spending on economic fears. The Labor Department says the producer price index fell 0.4% in September on lower energy prices.
WELLS FARGO (WFC:$34.6400,$1.1200,3.34%) 3Q EARNINGS BEAT EXPECTATIONS
Wells Fargo (WFC:$34.6400,$1.1200,3.34%) posts net of $1.6 billion, or 49c a share, down 23% from the prior year, but better than analysts' forecasts of 41c a share. Earnings are hurt by troubled investments in Fannie Mae (FNM:$1.03,00$-0.07,00-6.36%) , Freddie Mac (FRE:$1.1600,$-0.0900,-7.20%) and Lehman Brothers (LEHMQ:$0.0850,$-0.0150,-15.00%) .
SCHWAB NET SLUMPS 80% ON YEAR-AGO GAIN
Discount broker 3Q net falls to $304 million, or 26c a share, due to gains from last year's $3.3 billion sale of U.S. Trust as its customers put $24 billion into their accounts during the period. Analysts were expecting 23c.
WAMU'S PARENT TO REGAIN CONTROL OF $4.4B CASH
The bankrupt parent of Washington Mutual Bank reaches a deal with JPMorgan Chase (JPM:$41.1300,$0.4200,1.03%) to regain control of nearly $4.4 billion in cash it had on deposit with the failed thrift when it was seized by regulators.
OIL DIPS AS DEMAND GROWTH DOUBTED
Crude futures fall briefly below $75 a barrel, caught up in mounting expectations of weaker demand. Nymex light, sweet November crude recently down $2.31 at $76.32 a barrel after dipping to $74.97, the lowest benchmark price since Sept. 5, 2007.
AMR NET DOWN 74%, TO BUY DREAMLINERS
Airline posts net income of $45 million, or 17c a share, as it announces an order to acquire up to 100 Boeing (BA:$44.2600,$-0.8100,-1.80%) 787 Dreamliners. Revenue rises 8% to $6.4 billion. Shares add 3%.
COCA-COLA NET UP 14% AS GLOBAL SALES RISE
Soft drink giant earns $1.89 billion, or 81c a share, in its 3Q as global volume rises 5% and sales grow in international developing markets. Shares rise 5% as revenue tops analysts' expectations
ECB EXPANDS COLLATERAL, LONG-TERM LIQUIDITY
The European Central Bank says it will expand the type of collateral it accepts in exchange for bank refinancing operations, including syndicated loans, in a raft of measures to restore balanced liquidity conditions.
CONGRESS GETS FED'S COMMERCIAL PAPER REPORTS
U.S. Senate Banking Committee says the Federal Reserve has submitted two reports on its new commercial paper facility and loan to American International Group (AIG:$2.59,00$-0.21,00-7.50%) , as required by the recent financial rescue legislation.
VP CHENEY SUFFERS ABNORMAL HEART RHYTHM
U.S. Vice President Dick Cheney cancels a planned political event and will see his doctors after experiencing a recurrence of an abnormal heart rhythm, his press secretary says.
ICELAND CUTS KEY INTEREST RATE TO 12%
Iceland's central bank cuts its key policy rate for the first time since 2003 in an unscheduled announcement as the country remains mired in economic crisis. The Central Bank of Iceland says it slashed its key rate to 12% from 15.5%.
EUROPEAN SHARES TUMBLE AS RECESSION FEARS GROW
Rehashed recession fears help break a two-day winning streak for European stocks, with the mining sector sagging on concerns of a tailoff in commodity demand. Investors are hit with a sobering realization that, while a global bank bailout may boost sentiment in the short term, the global economy is still in intensive care and will remain there for some time yet. London ends down 7.1%.
FANNIE, FREDDIE DEBT RISK PREMIUMS WIDEN
The risk premiums on debt securities issued by Fannie Mae (FNM:$1.03,00$-0.07,00-6.36%) and Freddie Mac (FRE:$1.1600,$-0.0900,-7.20%) are widening as investors react to the prospect of more government debt supply, and purchases of underperforming mortgage bonds by the two firms.
NYC COMPTROLLER SEES MORE JOB LOSSES
New York City's economy may suffer more private-sector job loss than previously expected in the near term, but Comptroller William Thompson says he's confident the city will be resilient in the long run.
FED'S ROSENGREN SAYS INFLATION RATE TOO HIGH
Federal Reserve Bank Of Boston President Eric Rosengren says the U.S. inflation rate is higher than the Fed would like it to be, but a sluggish economy could cool things off.
INTEL NET RISES 12%; OUTLOOK UNCERTAIN
Intel (INTC:$15.94,00$0.01,000.06%) posts a 12% jump in 3Q profit and points to continued sales growth in the current period, but cautions that the outlook for spending on technology products is uncertain. Shares rise 2% pre-market.
DELTA SWINGS TO LOSS ON HIGHER FUEL COSTS
Airline loses $50 million, or 13c a share, in 3Q as high fuel prices continue to eat away at results. Results include a net $24 million in charges; excluding them, the loss would have been 7c. Revenue rises 9% to $5.72 billion. CEI says carrier is ready to address slower 2009 global market. Shares fall 5%.
CREDIT SUISSE (CS:$42.6700,$-0.9100,-2.09%) /TREMONT HEDGE FUND INDEX DOWN
The Credit Suisse (CS:$42.6700,$-0.9100,-2.09%) /Tremont Hedge Fund Index falls 6.6% in September, much worse than August's 1.8% drop and putting the year-to-date decline at 13.9%. The decline shows that every sector fell for the month as the markets were battered.
CFTC CALLS FOR REFORM OF OTC DERIVATIVES
The acting chairman of the U.S. Commodity Futures Trading Commission calls on Congress to enact bold new reforms for derivatives products, including a request to grant the CFTC the authority to regulate them.
HURRICANE OMAR WINDS AT 85 MPH
Hurricane Omar was churns toward the Virgin Islands, gaining strength as authorities issued warnings across much of the northeastern Caribbean. The hurricane, with winds at 85 mph, is moving slowly northeast toward San Juan
======= DOW JONES NEWSWIRES ANALYSIS AND COMMENTARIES =======
SIMON SAYS
Shippers Washed Up, For Now
The dramatic selloff for shippers came as a shock even to the experts. Many shipping analysts were eagerly anticipating a rapid bump in maritime freight hauling activity following the end of the Beijing Olympic Games.
SOMETHING VENTURED Credit Woes Having Impact On VC Industry
The difficulty of securing debt, coupled with unhinged stock market stamping out public offerings, will mean many later-stage venture-backed companies will have to lean harder on venture capitalists and other private equity for capital.
============ U.S. MARKETS ACTION ===========
DJIA down 310.71 points to 9000.28
NASDAQ down 61.59 points to 1717.42
S&P 500 down 41.62 points to 956.39
10-year T-note 100 13/32 at 4.073 yield up .020
NYMEX Crude down $3.15 at $ 75.80/bbl
Euro/Dollar down 0.0084 at 1.3535
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(END) Dow Jones Newswires
10-15-081300ET
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