Updated with earnings from Citigroup, Harley-Davidson and Charles Schwab, as well as economic data
NEW YORK (
) -- Here are the top stock market headlines for the morning of Thursday, Oct. 15, 2009.
Thursday's Earnings Roundup
- Goldman Sachs (GS) - Get Report posted third-quarter earnings of $5.25 a share, blowing past the Thomson Reuters average estimate of $4.24 a share. Revenue declined 10.1% from a year ago to $12.37 billion, although that number also exceeded analysts' expectations. On the negative side, Goldman said net revenue from its investment banking division was 31% below year-ago levels and 38% lower than the second quarter of 2009. The bank also said it is seeing improving conditions and evidence of stabilization, even growth, across a number of sectors.
- Citigroup (C) - Get Report reported a third-quarter loss of 27 cents a share, which was narrower than the Thomson Reuters average estimate for a loss of 38 cents a share. Revenue jumped 25.4% from a year ago to $20.4 billion, coming in slightly ahead of expectations. Citigroup said that results included $8 billion in net credit loss and $802 million for a build in loan loss reserves, which was down from $3.9 billion in the second quarter. The bank added that the allowance for loan losses increased to $36.4 billion, or 5.9% of total loans.
- Nokia (NOK) - Get Report swung to a third-quarter loss of 559 million euros, hit by a 908-million euro writedown from its networks unit. Excluding the writedown, Nokia said it earned 0.17 euro, better than the Thomson Reuters consensus for earnings of 0.13 euro. Revenue dropped 20% from a year ago as mobile device volumes dropped. Nokia said it expects its mobile device market share in the fourth quarter to be approximately at the same level sequentially.
- Southwest Air (LUV) - Get Report notched a third-quarter adjusted profit of three cents a share, beating the Thomson Reuters average estimate of two cents a share. That number excludes one-time items including a $27 million charge relating to Southwest's early-out program as well as a $12 million loss relating to non-cash mark-to-market and other items. Revenue fell nearly 8% from a year ago to $2.67 billion, coming in slightly above the $2.63 billion consensus.
- Baxter (BAX) - Get Report reported third-quarter adjusted earnings of 98 cents a share, topping the Thomson Reuters average estimate by a penny. Revenue dipped to $3.14 billion from $3.15 billion in the year-ago quarter, coming up shy of the $3.19 billion consensus. Baxter also offered in-line earnings guidance for the fourth quarter and full-year 2009.
- Harley-Davidson (HOG) - Get Report said it earned 11 cents a share in the third quarter, coming in below the Thomson Reuters consensus estimate for a profit of 21 cents a share. Revenue dropped 21.1% from a year ago to $1.12 billion, matching analysts' forecasts. Harley also narrowed its forecast for full-year shipments, now expecting to ship 222,000 to 227,000 Harley-Davidson motorcycles to dealers, including 35,000 to 40,000 during the fourth quarter.
- Charles Schwab (SCHW) - Get Report matched expectations after reporting a third-quarter profit of 17 cents a share. Revenue fell 19.2% from a year ago to $1.01 billion, just shy of the Thomson Reuters average estimate of $1.02 billion.
- Safeway (SWY) is expected to post earnings of 29 cents a share on sales of $9.46 billion, according to a poll of analysts by Thomson Reuters.
Thursday's Early Headlines
- CPI Data, Initial Jobless Claims -- The Labor Department said the consumer price index rose 0.2% in September as anticipated. The core number, which excludes food and energy, increased by a greater-than-expected 0.2%. The year-over-year core number increased to 1.5% from 1.4% the previous month. In a separate report, the Labor Department said initial jobless claims fell to 514,000 from a revised 524,000, surprising economists that expected claims to come in at 520,000 last week. Continuing claims fell below the 6 million mark to 5.99 million.
- SEC to Restrict Dark Pools Trading -- Bloomberg reports that the Securities and Exchange Commission will consider changing "display obligations" for dark pools at an Oct. 21 meeting in Washington. Dark pools are trading venues operated by firms like Goldman Sachs that don't display orders to the public. Lawmakers have argued that a lack of transparency on the private venues hurts investors.
- No Bid for Anglo American: Xstrata -- Mining company Xstrata said Thursday it won't make an offer for Anglo American (AAUK) . The U.K.'s Takeover Panel earlier this month gave Xstrata a deadline of Oct. 20 to make a formalized bid for Anglo American, the world's biggest platinum extractor, or walk away from the deal. Anglo-American rejected a merger-of-equals offer from Xstrata back in June, calling the offer "totally unacceptable."
- Tandberg Holders Reject Cisco Bid -- Holders of about 24% of Tandberg shares don't intend on tendering their shares to Cisco's (CSCO) - Get Report $3 billion bid. The shareholders, according to brokerage SEB Enskilda, will, however, consider a higher offer for the videoconferencing company, Reuters reports. Tandberg shareholders are convinced the company will generate "strong returns as an independent company," though they are open to evaluating a higher offer from Cisco or a third party, according to the report.
- Rio, BHP Drop Joint Iron Ore Marketing Plan -- The Wall Street Journal reports that Rio Tinto (RTP) and BHP Billiton (BHP) - Get Report said Thursday that they have agreed not to jointly market any output from their proposed iron ore joint venture. In June, BHP and Rio Tinto said they would jointly market up to 15% of the combined production from their iron ore operations in the Pilbara region. But after a series of discussions, the two companies said they have decided not to proceed with the joint venture marketing activity and that all production from the joint venture will be marketed separately, the report said.
- NY Times Takes Boston Globe Off Market -- The New York TImes (NYT) - Get Report said yesterday that it will not sell The Boston Globe, citing significant improvement in the Globe's financial standing. The Times had been exploring a sale of the Globe and its Web site along with The Worcester Telegram & Gazette. Two potential buyers submitted offers before the Friday deadline, according to the Globe, but in a memo to employees, the company said they had ended their consideration of a Globe sale.