AMAZON.COM PROFIT PLUNGES 73%; 4Q MAY BREAK EVEN
No. 1 Internet retailer by sales reports 3Q earnings sink to $63 million, or 14c a share, because of its expensive spending program. Analysts had predicted 24c a share. Amazon.com also says it could report an operating loss in the key 4Q. Shares off 15% after hours.
IBM PROMOTES INSIDER ROMETTY TO CEO
IBM taps company executive Virginia Rometty, widely viewed as the top candidate, as its new president and chief executive. She will take over on Jan. 1 for Sam Palmisano, who will remain chairman Shares off about 1% late.
US STOCKS DROP AS EUROPE STUMBLES ON GRAND PLAN
U.S. stocks tumble after a mixed bag of corporate earnings and as hopes wane for a big solution to Europe’s debt crisis. DJIA drops 207 points, or 1.7%, to 11707.
DELAYED TALKS ON EURO-ZONE DEBT CRISIS RAISE WORRIES
Prospects for a long-awaited breakthrough deal to stem the worsening euro- zone debt crisis are up in the air, as governments and banks remain at loggerheads over how much pain to inflict on holders of government bonds issued by Greece, the country at the heart of the Continent’s financial mess.
MERRILL EDGE CUTS PRICES FOR ONLINE TRADES
Bank of America is shifting prices for online trades through its Merrill Edge brokerage unit, undercutting the discount brokerage industry in the process.
MORGAN STANLEY SMITH BARNEY ADJUSTS BROKER PAY
Morgan Stanley Smith Barney is tweaking its financial adviser pay structure for 2012 in an effort to help boost the brokerage’s margin and incentivize advisers to increase the amount of revenue they produce.
EXPRESS SCRIPTS PROFIT UP 7.7% ON STRONGER SALES
Pharmacy-benefit manager reports a 3Q profit of $324.7 million, or 66c a share. Excluding acquisition-related costs and other items, earnings were up at 79c while revenue increased 2.8% to $11.57 billion. Shares up 1% late.
BROADCOM NET OFF 21% ON CHARGES
Chip maker reports a 3Q profit of $270 million, or 48c a share, as one-time charges mask a better-than-expected core profit driven by revenue growth. Fourth-quarter view falls short of analysts’ forecasts. Shares fall 4% late.
TJX TO OPEN 130 TO 145 STORES
Discount retailer says it plans to open 130 to 145 stores in fiscal 2013 net of closings, an expansion that meets its long-range goal of increasing square footage by about 5% a year. Shares down 3% after hours.
RADIOSHACK’S PROFIT SINKS 99% ON CHARGES
Consumer-electronics retailer reports its 3Q earnings plunge to $300,000, or less than 1c a share, as costs tied to its transition to offering Verizon Wireless mobile devices mask a slight rise in revenue. Analysts forecast 36c a share.
DREAMWORKS ANIMATION NET DOWN 51%
Computer-animation studio’s 3Q earnings shares drop to of $19.7 million, or 23c a share, as revenue declines from a year earlier, when results were boosted by “Shrek Forever After.” Analysts forecast 21c a share. Shares lose 7% after hours.
Dow’s Rally Based On More Than Europe, Economy Once the stock market rallies past key technical thresholds, it can start building momentum on its own and it will take more than a couple of disappointing headlines to negate the technical progress that has already been made.
BIG PICTURE Consumers Suffering Bout of Economic Depression
U.S. consumers unexpectedly caught a case of the economic willies in October.
Their list of woes is growing from jobs to incomes to the stock market.
============ U.S. MARKETS ACTION ===========
DJIA down 207.00 points to 11706.62
NASDAQ down 61.02 points to 2638.42
S&P 500 down 25.14 points to 1229.05
10-year T-note 100 02/32 at 2.1123 yield
NYMEX Crude up $1.90 at $93.17/bbl at close
Dollar/Euro down 0.0010 at 1.39070
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