Daily Highlights: 10.22.09

• Asian stocks fall as bank loan-loss speculation raises valuation concerns.
• China's economy expands 8.9% in Q3, fastest pace in a year, on stimulus, lending.
• Euro rises above $1.50 for first time since August '08 on recovery outlook.
• Leading Index in U.S. probably rose for sixth month in sign of expansion.
• Russia warns of reduced access to credit, signalling cut in interest rates.
• Sept's regional, state unemployment rates climbed in 23 states and the District of Columbia.
• Altria's Q3 net rose 1.7%, helped by its acquisition of UST Inc., higher cigar prices.
• Amgen's Q3 net rises 24% to $1.39B, helped by cost cuts, lower taxes.
• AMR Corp.: Tough times could persist after average fares plunged 16% in Q3.
• Boeing posts $1.56B loss on hefty charges on delays related to 747-8, Dreamliner programs.
• BofA to sell First Republic Bank to a group of investors for more than $B.
• Credit Suisse Q3 net rises more than estimated to $2.38B.
• Delta's Sept. loss rose from $50M last year to $161M this year.
• Dow's Sept. net income rises from $428M last year to $796M this year.
• Ebay's Q3 net falls 29% to $349.7M, revs improve by 5.7% to $2.24B.
• Genzyme Corp.'s profit fell 87% to $16M as a plant closure restricted drug supplies.
• GE's Immelt says studying 'all the options' for NBC Universal unit stake.
• GlaxoSmithKline’s cervical cancer shot gets US recommendation.
• Hyundai Motor profit triples to $827M on weaker Won, US 'cash-for-clunkers' sales.
• Korea National to buy Harvest Energy for $3.9B to secure supplies.
• Microsoft Corp launched Windows 7.
• Morgan Stanley posts $1.43B on the strength of its investment-banking business.
• Raytheon's Sept. net income rises from $427M last year to $490M this year.
• SLM Corp. reported it swung to a profit following four straight quarters of losses.
• Starwood Hotels & Resorts Worldwide Inc. says its third-quarter profit fell 64%.
• Toyota, Honda, Nissan may increase overseas production amid stronger Yen.

Economic Calendar: Data on Initial Claims, Leading Indicators to be released today.
Earnings Calendar: AMZN, AXP, BDK, BG, BMY, BXS, CA, CB, CNX, CS, DAL, DOW, ELX, EMC, EMN, FITB, KMB, LCC, LM, MMM, MRK, NCR, NUE, NVS, NYT, PM, RTN, SGP, T, TRA, UPS, XRX.
Recent Egan-Jones Rating Actions
OMNICOM GROUP INC (OMC)
AMR CORP (AMR)
NAVISTAR INTERNATIONAL CORP (NAV)
WELLS FARGO & CO (WFC)
FREEPORT-MCMORAN COPPER (FCX)
BOEING CO/THE (BA)
CNH GLOBAL NV (CNH)
ALLEGHENY TECHNOLOGIES INC (ATI)
SANDISK CORP (SNDK)
MORGAN STANLEY (MS)
EASTMAN CHEMICAL CO (EMN)
EI DU PONT DE NEMOURS & CO (DD)
CSX CORP (CSX)

Data provided by Egan-Jones Ratings and Analytics

Comments

[HEHEHE]

Andy Xie on Chinese Property Bubble

http://www.bloomberg.com/avp/avp.htm?N=av&T=Xie%20Says%20China%20Property%20Market%20Risk%20to%20Nation’s%20Economy&clipSRC=mms://media2.bloomberg.com/cache/vrP1GNnd1ZMU.asf

Pertinent points: Lower lending standards (”similar to subprime”), resulting higher prices, subsequent decrease in demand, and it now comprises 20% of their annualized GDP.

Hmmm, where'd I see that story play out recently?

[mikeyv1970]

Interesting that CNBC hasn't posted the negative Initial Jobs Claims on their website and promptly changed subjects on the live show.  Fascinating....MCC no comment?

-Michael

[mikeyv1970]

Per CNBC: The number of newly laid-off workers filing claims for jobless benefits rose more than expected last week, after falling in five of the past six weeks.  AND The number of people continuing to claim benefits dropped for the fifth straight week to 5.9 million, from just over 6 million the previous week.  Do these folks falling off the rolls who can't help provide for their families represent a good thing for the long term stability of our country or do they represent a very volatile group now?  I suspect the former...

-Michael

[docj]

And (what a shock) last week's newly funemployed number was revised upward.  Isn't that the 15th week in a row or something like that?  And if that's the case, don't you think someone, anyone should start asking when the Administration is going to stop cooking the books on this issue?

I know.  Rhetorical qestions, those.

Meanwhile another 50K roll off the back-end (having exhausted their benefits) and are no longer counted among the funemployed.  Viva la recovery!!

[bruce wayne]

I find it more unusual that the revised number hit the consensus estimate right on the dot.  How often does that happen?

[Anonymous]

China's economy expended 8.9% in Q3. So did my dick. Go figure!

[SWRichmond]

And in the most interesting political contest of all:

http://www.bloomberg.com/apps/news?pid=20601087&sid=aycSMBuh0MIw

Corzine Looks to Beltway for Support in N.J. Governor’s Race

In the spots, Corzine questioned Christie's...ethics for giving a loan to a subordinate...

Wait...didn't Corzine used to work for Goldman?