10:05 AM New York – U.S. indexes advanced after weekly jobless claims declined 23,000 to 369,000 and durable goods orders rebounded in September. Colgate plans to slash 6% global workforce by 2016.
Stocks in New York and in Europe were higher after better than expected weekly jobless claims in the U.S. and the expectations that Chinese factory output is likely to be higher in the fourth quarter.
U.S. weekly jobless claims fell but durable goods orders rose and China’s Ministry of Industry and Information Technology said factory output should grow faster sequentially in the fourth quarter.
European indexes edged higher on the hopes that more central bank action may follow after the latest economic weakness and better than expected earnings results from corporations.
UK pulled out of double-dip recession in the quarter to September on higher spending linked to Olympics and Paralympics events. The economy expanded at 1% in the quarter from the previous quarter when poor weather conditions and extra holidays linked to Queen’s Diamond Jubilee celebrations dampened the economic activities.
The IMF approved another €1.5 billion disbursement for Portugal and Sweden''s central bank decided to hold the benchmark repo rate at 1.25%.
U.S. Jobless Claims Drop
First-time claims for U.S. unemployment benefits declined in the week ended October 20th, according to a report released by the U.S. Labor Department today.
Seasonally adjusted weekly jobless claims dropped 23,000 to 369,000 from the previous week''s revised figure of 392,000. The 4-week moving average was 368,000, an increase of 1,500 from the previous week''s revised average of 366,500.
U.S. Durable Goods Orders Rise
U.S. durable goods orders rebounded in September, according to a report released by the U.S. Commerce Department released a report today.
New orders for manufactured durable goods increased 9.9% or $19.6 billion to $218.2 billion in September, followed a 13.1% drop in August.
Excluding transportation, new orders increased 2% and excluding defense, new orders increased 9.1% in September.
Best Buy Co
) dropped as much as 6% after the electronics retail chain operator estimated third quarter earnings per share “significantly” below previous year quarter.
), the biopharmaceutical company reported third quarter total revenue rose 14% to $1.42 billion from the same period in 2011. Net income in the quarter increased to $424 million or 97 cents per diluted share compared to $373 million or 81 cents per share last year.
), the consumer products company reported third quarter net sales declined 1% to $4.33 billion from the comparable period last year. Net income for the quarter rose to $654 million or $1.36 per share from $643 million or $1.31 per share in the prior-year quarter.
Colgate announced a four-year restructuring program that by the end of 2016 will reduce the global workforce by 6% from the current level of 38,600 and result in cumulative pretax charges between $1.10 billion and $1.25 billion.
The New York Times Company
) reported third quarter total revenues decreased 0.6% to $449 million. Operating profit in the quarter slumped to $8.5 million compared with $21 million in the same period of 2011 on a weakness in advertising revenues.
The Procter & Gamble Company
), the consumer packaged goods provider reported first quarter sales declined 4% to $20.74 billion from last year. Net earnings for the quarter fell 7% to $2.81 billion or 96 cents per diluted share compared to $3.02 billion or $1.03 per share in the prior-year quarter.