MAIN NEWS
-S&P +0.07%.
-10-yr -0.17%.
-Euro flat vs. dollar.
-Crude -0.11% to $92.28.
-Gold +0.21% to $1768.75.
- European stocks fell for a third day and metals retreated on concern slowing Chinese growth will hurt corporate profits. Spanish bonds reversed an earlier decline and the South African rand strengthened. U.S. index futures were little changed, while Asian shares fell.
-Noda Says Japan Prepared to Act on Yen as Strength Hurts Economy
- Antonis Samaras won a round in his fight to stay in the euro.
The Greek prime minister got endorsements from German Chancellor Angela Merkel and European finance chiefs as well as signals that the country’s next aid payment was in the offing.
- The International Monetary Fund said European banks may need to sell as much as $4.5 trillion in assets through 2013 if policy makers fall short of pledges to stem the fiscal crisis, up 18 percent from its April estimate.
CORPORATES
-Alcoa earnings hit by bribery settlement. Alcoa (AA) swung to a net loss of $143M in Q3 from a profit of $172M a year earlier, due to charges of $175M related to a legal settlement with a Bahraini smelter over bribery allegations and other special items. Alcoa's adjusted EPS of $0.03 was down from $0.15 a year ago, but beat forecasts, as did revenue of $5.83B, which was down 9%. Alcoa cut its 2012 global aluminum demand forecast to 6% from 7%.
-Yum net profit jumps 23%. Yum Brands' (YUM) Q3 net profit soared 23% to $471M, boosted by the continued improvement at its Taco Bell, Pizza Hut and KFC chains in the U.S., although growth in China was restrained by the economy. Adjusted EPS of $0.99 beat consensus, and while revenue climbed 9% to $3.57B, the figure missed Street forecasts. Yum increased its guidance for FY EPS growth to 13% from a previous prediction of 12%. Shares were +2.1% premarket.
COMMODITIES
-Alcoa Cuts Global Aluminum Demand Forecast on China Slowdown
-Oil Trades Near One-Week High as Mideast Risk Counters Slowdown
-Iraq predicts oil production of 9-10M barrels/day by 2020, far higher than yesterday's bullish IEA prediction of 6.1M. The country's deputy PM for Energy says Iraq has underway a plan to address the infrastructure bottlenecks raised by the IEA.
-Japan Easing Restrictions on U.S. Beef, Paving Way for Tyson
-Drought Cuts U.S. Crops Below Demand First Time in 38 Years
UPGRADES
-Yum! Brands Raised to 'Buy' at Credit Agricole Securities. The 12-month target price is $80.00 per share.
-Abercrombie Raised to Overweight From Neutral at Piper, PT $40
-Wells Fargo upgrades Dollar Tree (DLTR) to Outperform from Market Perform while keeping Dollar General (DG) tagged as its favorite name in the sector. The firm sees solid growth potential still ahead for dollar stores and likes their relative immunity from the Amazon Effect.
DOWNGRADES
-Home Depot Cut to 'Market Perform' at Oppenheimer. The 12-month target price is $67.00 per share.
LATAM
- Billionaire Carlos Slim’s Minera Frisco SAB agreed to acquire AuRico Gold Inc.’s mining assets in Mexico for $750 million to expand its investments in precious metals.
- Brazil’s largest money managers are giving a vote of confidence to the government’s push to create a debt market for infrastructure projects after the two-year-old plan produced just a $12 million bond sale.
- Oil companies in Colombia, South America’s third-largest producer, are operating the smallest number of rigs in more than two years, foreshadowing lower output.
Today's economic calendar:
7:00 MBA Mortgage Applications
10:00 Wholesale Trade
1:00 PM Results of $21B, 10-Year Note Auction
2:00 PM Fed's Beige Book
2:00 PM Treasury Budget
4:30 PM Daniel Tarullo speaks on Financial Stability Regulation.
4:45 PM Fed's Fisher: 'Europe's Crisis and the Welfare State: Lessons for the United States'
7:00 MBA Mortgage Applications
10:00 Wholesale Trade
1:00 PM Results of $21B, 10-Year Note Auction
2:00 PM Fed's Beige Book
2:00 PM Treasury Budget
4:30 PM Daniel Tarullo speaks on Financial Stability Regulation.
4:45 PM Fed's Fisher: 'Europe's Crisis and the Welfare State: Lessons for the United States'
