AIG, Jobs Data: Friday's Headlines

Friday's early headlines include earnings from American International Group and the monthly nonfarm payrolls data.
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) -- Here are the top stock market headlines for the morning of Friday, Nov. 6, 2009.

Friday's Earnings Roundup

  • American International Group (AIG) - Get Report reported adjusted third-quarter earnings of $2.85 a share, well ahead of the Thomson Reuters average estimate of $1.98 a share. The insurer said total equity was $76.5 billion in the third quarter, a $14.4 billion increase sequentially. AIG said that when it closes the special purpose vehicles with respect to American International Assurance and American Life Insurance with the New York Federal Reserve, it expects to recognize an approximate $5 billion charge for accelerated amortization of the prepaid commitment asset. These transactions are expected to close in the fourth quarter, AIG said.
  • Fortress Investment Group (FIG) posted third-quarter earnings of 11 cents a share, beating the Thomson Reuters average estimate by two cents a share. Revenue dropped 22.4% to $143.7 million, also better than consensus targets.
  • Royal Bank of Scotland (RBS) - Get Report reported total income of 7.1 billion pounds, compared to 8.6 billion pounds a year earlier, although the bank was hurt by impairment losses of 3.3 billion pounds, 2 billion pounds more than what it had booked last year. Without those charges, operating profit at the bank actually rose 55% to 1.75 billion pounds.
  • Edison (EIX) - Get Report is expected to report a profit of $1.04 a share, down from $1.46 a share in the year-ago quarter, on revenue of $3.76 billion, according to analysts polled by Thomson Reuters
  • Blackstone (BX) - Get Report will also report quarterly results before the start of trading, with analysts expecting a profit of 15 cents a share, swinging from a year-ago loss of 44 cents a share

Friday's Early Headlines

  • Jobs Data Due at 8:30 a.m. EDT -- The Labor Department is expected to say that the U.S. economy lost about 175,000 jobs in October, down from a loss of 263,000 in September. The unemployment rate is expected to climb to 9.9% from 9.8% in September.
  • Citi to Relaunch Hedge Fund Unit -- The Financial Times reports that Citigroup (C) - Get Report is seeking to change the name of its troubled hedge fund -- which presently has $14 billion under management -- from Citi Alternative Investments to Citi Capital Advisors. The move is intended to distance the unit from two years of poor performance and negative publicity, the report said, citing unnamed sources from within the bank.
  • Jobless Benefits, Home Credit Extended -- One day after the Senate unanimously approved the measure, the House voted 403-12 to pass a $24 billion economic stimulus bill, providing tax incentives to prospective homebuyers and extending unemployment benefits to the longtime jobless. President Obama is set to sign the bill on Friday.
  • Government Backed $4.3 Trillion in Assets Last Year -- The Congressional Oversight Panel said in its latest monthly report that the U.S. government guaranteed as much as $4.3 trillion in financial assets last year. To date, the programs have generated fees of about $17.4 billion, while only up to $2 million is expected to be paid out for a default under the Federal Deposit Insurance Corp.'s bank debt guarantee program, the report said.

-- Written by Robert Holmes in New York


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