G-20, Fed's Warsh: Friday Headlines

(Updated with KB Home earnings, durable goods orders data.)

NEW YORK (TheStreet) -- Here are the top stock market headlines for the morning of Friday, September 25, 2009.

Friday's Early Headlines

• Durable Goods Orders Disappoint. - The Census Bureau said durable-goods orders unexpectedly fell 2.4% in August, after a 4.8% increase in July and well short of expectations for an 0.4% increase. Excluding autos, orders were flat, matching expectations. Traders are still awaiting the revised consumer sentiment reading from the University of Michigan and new-home sales due out later in the morning.
• G-20 to Serve As Primary Economic Forum. - White House officials say the G-20 group of nations meeting will replace the G-8 summit as the permanent council for international economic cooperation. In drafts to be signed Friday by G-20 officials, the world would reduce its reliance on U.S. consumers, the Chinese would boost domestic demand, the U.S. would trim its borrowing from overseas, and the Europeans would encourage investment, according to a report in The Wall Street Journal. CNBC added that a G-20 draft agreement would keep emergency economic stimulus in place until a durable recovery, and would ensure nations work together when the time is right to remove the stimulus in a coordinated manner.
• Fed May Raise Rates Before It is Necessary: Fed's Warsh. - In an op-ed in The Wall Street Journal Friday, Federal Reserve Governor Kevin Warsh wrote that the central bank's job is only half over, and that the Fed may have to raise rates before the need is clear. "In this environment, market participants and policy makers alike should steer clear of ironclad policy prescriptions," Warsh wrote. "Nonetheless, I would hazard the view that prudent risk management indicates that policy likely will need to begin normalization before it is obvious that it is necessary, possibly with greater force than is customary, and taking proper account of the policies being instituted by other authorities."
• Shanda Caps Off Hot Week for IPOs. - Chinese video game-maker Shanda Interactive (GAME) priced its $1 billion U.S. initial public offering late Thursday at $12.50 a share, the top its proposed range. Shanda's debut follows a string of IPOs this week, including A123 Systems (AONE), which surged 50% during Thursday's session.
• McDonald's Raises Quarterly Dividend - McDonald's (MCD) late Thursday said it has increased its quarterly dividend by 10% to 55 cents a share. The dividend will be paid Dec. 15 to shareholders of record as of Dec. 1. On an annual basis, McDonald's dividend totals $2.20 a share.
• H-P Matches Analyst Expectations with 2010 Outlook. - Hewlett-Packard (HPQ) said Thursday during a meeting with financial analysts that there are signs the PC industry is returning to health. H-P said fiscal 2010 revenue should be between $117 billion and $118 billion, and earnings excluding one-time items should fall between $4.20 and $4.30 a share. Analysts polled by Thomson Reuters had been forecasting sales of $118 billion and profit of $4.25 per share.
• Twitter Valuation Raised to $1 Billion. - Twitter is close to securing $100 million in funding from new investors T. Rowe Price (TROW) and private-equity firm Insight Venture Partners, according to The Wall Street Journal, which would raise the social-networking site's valuation to $1 billion. Existing Twitter investors, including Spark Capital and Institutional Venture Partners, are also expected to participate in the latest funding round for the microblogging site, the report said.

Tuesday's Earnings Roundup

• Research In Motion (RIMM) late Thursday reported fiscal second-quarter earnings of $1.03 a share, coming in slightly higher than the Thomson Reuters consensus of $1 a share. Revenue jumped 36.8% from a year ago to $3.53 billion, missing the average analyst estimate of $3.62 million. Looking ahead to the fiscal third quarter, RIM expects earnings in a range of $1 to $1.08 a share, in line with estimates. Revenue in the third quarter should fall between $3.6 billion and $3.85 billion, below the Thomson Reuters consensus of $3.92 billion
• KB Home (KBH) reported a wider-than-expected third-quarter loss of $66 million, or 87 cents a share, although those numbers shrank from a year ago. Analysts expected a loss of 58 cents, according to Thomson Reuters. On the bright side, KB Home said orders surged 62% to 2,158 units in the quarter.

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