Market briefing---Lane (medium)
Earnings report---Allan
NYSE---Deb (fast)
Richard Grasso---Su (fast)
>> and welcome to “world financial report”. i’m lane bajardi. well, intel is out with earnings that exceeded expectations as profit more than doubled, and the company is predicting even better sales for the fourth quarter. let’s check the stock in extended hours, first of all, up by 31 cents at 3,139. more on the numbers and news from intel. for more we turn to allan dodds frank.
>> the earnings were better than the company’s own forecast, which was raised twice in the previous quarter. net income was up 142% coming in at $1.66 billion. intel c.e.o. craig barrett cites record sales strength around the globe. look at the revenue number. sales came in higher than $7.8 billion. that was the high end of the company’s most recent forecast. and above analysts’s forecast. on a per share basis the company earned 25 cents, two more cents a share than expectations. looking to the fourth quarter, intel says revenue could climb as high as $8.7 billion. again, above estimates. chief financial officer andy bryant says the company is starting to see positive signs. the numbers came out after the end of trading in new york. intel’s shares have doubled this year and closed today on the nasdaq at a 16 month high. the continued to rise in extended trading. this programming note. next hour on bloomberg international, we’ll speak with intel c.f.o. andy bryant about those numbers.
>> we’ll look forward to that. thank you very much. now, earnings were also the name of the game in today’s session. deborah kostroun is at the new york stock exchange with a wrapup of today’s trading and the earnings that moved stocks there.
>> we did have quite a few earnings. and over the next couple of weeks, about half of the companies in the s&p 500 will be reporting their earnings and so many traders have been telling me that obviously this is the focus right now. we are waiting on those earnings to come in, and really kind of tell us if the kind of prices that we are seeing really kind of meet the expectations that we are hearing about. and obviously in today’s session the market continuing to make those new highs. we saw those highs yesterday. seeing the highs once again in today’s session, and propelling this market higher. however, the big concern and the one missing component is we are looking at lighter than average volume persisting today, about 1.2 billion shares. so many traders saying they would like to see these big moves but you would also like to see the big moves on big volume as well. that’s a very key component. medical products. johnson & johnson earnings reports, third quarter profit up 20%. this after introducing the cipher stent. sales in the unit almost doubled that helping out johnson & johnson, one of the biggest gainers in the dow jones industrial average.in addition, data processing, f.d.c., a little bit different story. a laggard, as you can see there. this is the biggest processor of credit card transactions and owner of western union, saying third quarter profit was up 5%, however, that’s the lowest level in three years, that as they had to turn away clients to comply with anti-money laundering laws. in addition, the c.e.o. talking about how they are expanding the western union outlets and also lowering some of the transaction costs, however, didn’t help their bottom line. waste disposal, waste management looks like they did get one u.s. approval for purchase of allied waste industry assets in southern florida. waste management higher in today’s session on that news as will. also semiconductors among some of the biggest gainers in the s&p 500. transports as well putting in a pretty impressive performance, and that was really fed ex as lehman brothers saying more of their employees actually taking their severance packages and leaving early, and so in fact, fed ex one of the things they are going to have to do is potentially rehire some people, because too many people wanted their exit strategy that they had proposed. back to you in the studio.
>> deborah kostroun at the new york stock exchange. morgan stanley said it received a subpoena in july from new york state attorney general eliot spitzer, relatedding to possible late trading and market timing of its mutual funds. that disclosure was included in a filing with the securities and exchange commission. the bank said it is cooperating with the investigation. the s.e.c. said it is considering an enforcement action against the barching over its mutual fund sales practices. morgan stanley is the second biggest securities firm in the united states. a special new york stock exchange committee has proposed a series of dramatic changes. there is a proposal to reduce the size of the exchange’s board and to insure that more than half the members are from outside the securities industry. it’s also suggested that the board have the flexibility to split the chairman and c.e.o. roles. those recommendations are part of a report released by new york state controller allan hennessey. su key is here with more on the big board.
>> new york state comptroller released the exchanges governance committee report, after he and a group of state treasurers met with interim new york stock exchange chairman john reed for the first time. the treasurers had come to push for even greater change. new york allan heve a si wants and expects to see the resignations of the entire board. the report which contains 33 proposals for reform follows wide spread investor outrage over the compensation of former chairman richard grasso and his top lieutenants.
>> we had a previous meeting. we thought we were going to have to press hard on our recommendations when we went in there he had an opening statement that just, i think, knocked our sox off.
>> it was a very bright day for investors across this country because mr. reed signalled to us that he is willing to do what it takes to put the new york stock exchange back on the pedestal on which it belongs.
>> the treasurers say chairman john reed made no commitments to any of the proposed changes which include shrinking the side is sooiz of the board from 27 members to 17, reserving 10 positions for members outside the securities industry, and setting up a board committee on regulation and enforcement. new york’s allan heve a si expects reed to make dramatic structural changes by mid november.
>> john reed intends to be a reformer. he understands the need for substantial change. he understands the need for independent directors, and for maximum transparency and full disclosure, and a program of institutional change will be recommended by john reed to the community of the stock exchange.
>> now, as a group, the treasurers said they were impressed with the extent that interim chairman john reed was candid.
>> he said, one, that there is no such thing as a small hole in a submarine, and there are a lot of holes to be patched and he indicated there was a lot of powerful folks there that don’t want to see much change. as a matter of fact, i think his words were a lot of people wanted to see him come in and spray a little perfume around the place and then leave. doesn’t intend to do that.
>> well, reed is scheduled to meet with u.s. treasury secretary john snow tomorrow. most involved in today’s meetings said they are optimistic reform could be achieved.
>> it was a very bright day for investors across this country because mr. reed signalled to us that he is willing to do what it takes to put the new york stock exchange back on the pedestal on which it belongs.
>> all right. phillip an gemides once again.
>> e.m.c. announced its biggest acquisition to date today. shares fell on investor concern the company may be overpaying here. e.m.c. shares dropping about 8 percent. the world’s third largest maker of data storage systems is buying documentum for 1.7 billion in stock , shares surged 16%. the move is ip tended to increase software sale through documents that manage audio and video files. the value of the software company is $31.42 a share, 29% above yesterday’s closing price. e.m.c. chief executive joseph tuchy intends to increase the sales to 30% of total revenue from 22% by 2005. stocks rose today pushing up the s&p 500 and the dow jones industrial average to 16-month highs. the dow up 48 points, 9,812, s&p 500 better by four and 1,049. nasdaq composite up 9 2/3 and 1,943. the new york stock exchange, 1.2 billion shares changed hands 1,866 rising, 1,390 declining. nasdaq 1.7 billion shares chapgd hands, 1,968 moving higher, 1,148 lower. taking a look at the broader measure of the market, wilshire 5000 better by 43 points. treasuries fell in new york trading on speculation rising corporate profits may help spur further economic growth. you see the 10-year note down 3/4 of a point, five-year note down 12/32. three-year note was down 7/32, the two-year note down 3/32. a quick look at how the dollar is trading in asia right now. stocks finished the day higher, extending their october advance. look to see if the momentum can continue with john wilson of morgan keegan began.
