Financial News 10/28/12 – 11/3/12

Economy

-August saw home price increases accelerating to 2.0% over a year earlier; a faster pace than the 1.2% in July.  10/31

-Manufacturing picked up slightly in October as it rose 0.2% over September.  11/2

-U.S. auto sales jumped 7% in October and the industry remains on track to sell over 2 million more new cars then last year.  11/2

-Retail sales rose in October gaining 4.7% according to Thomson Reuters.  11/2

-The labor market took another positive step forward in October as 171,000 jobs were added and the numbers for the previous months were revised higher to show an average of 173,000 new jobs added a month since July.  That is more than double the pace of the spring.  The October hiring number beat economist estimates.  The unemployment rate rose however to 7.9% as more Americans began looking for jobs.  11/3

Corporate

-Chrysler announced an 80% surge in earnings over a year ago on increased sales for its cars and trucks.  10/30
-Honda dropped is full year profit estimate by 20% on a boycott from China and rising costs.  10/30
-Deutsche bank posted a 19% gain in revenue driven by investment bank activity and fixed income trading but net income was flat as a result of legal troubles and restructuring efforts.  10/31
-Apple shook up its senior ranks with new executives in mobile software and retail as Tim Cook puts his stamp on the company.  10/31
-Ford had a $1.6 billion profit in the third quarter despite problems in Europe as it improved profit margins.  10/31
-Disney has agreed to purchase Lucasfilm, the producer of the Star Wars movies for $4.05 billion.  10/31
-GM’s profit dropped 13% as a result of operations in Europe and reduced margins in the U.S. although the company did see improving sales in South America and Asia.  11/1
-Starbucks earnings beat estimates on an 11% gain in revenue driven by special promotions over the quarter.  11/2
-Exxon Mobil reported a 7.4% drop in profits in the third quarter on falling oil prices and production slipped to its lowest point in three years.  11/2
-Japanese electronics firms posted troubling earnings with Sharp stating the firm would have trouble remaining a “going concern” as it announced a $3.1 billion loss and Sony announced a surprise loss.  11/2
-Chevron posted a 33% drop in profits in the third quarter due to various production disruptions.  11/3

Regulatory

-Barclays is facing two suits from regulatory agencies; one over the bank’s alleged manipulation of electricity markets for $435 million and the other by the justice department over anticorruption charges regarding the bank’s money raising efforts in the Middle East.   11/1

Market

-U.S. markets were closed Monday as Hurricane Sandy wrecked havoc on the east coast.  It was the first unscheduled closing of the markets since after the September 11th attacks.  10/29
-U.S. markets remained close on Tuesday as Hurricane Sandy did damage across the eastern seaboard.  10/30
-U.S. markets started off November with their best day in seven weeks on strong manufacturing and retail sales news as well as positive news from China.  The S&P rose 1.1% and the Dow gained 1%.  Europe rose as well up 1.3%.  11/2
-After jumping on employment news U.S. markets fell sharply lower to end the day.  The Dow fell 1.1% for the day and dropped 0.1% for the week and the S&P fell 0.9% for the day, but was up 0.2% for the week.  Oil fell 2.6% to $84.86 a barrel.  11/3

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