Economists expect the October unemployment rate to rise slightly
to 9.9%; jobs data for the month will be released next Friday.
A Federal Reserve panel is not expected to change a key interest
rate at its meeting next week, but investors will be watching the
wording of the committee's statement for signals on the timing of a
future rate increase.
Two components of the Dow Jones Industrial Average, Cisco
Systems Inc. (CSCO) and Kraft Foods Inc. (KFT), and about 17% of
the companies in the Standard & Poor's 500 Index will report
quarterly results next week.
October Jobless Rate Likely To Be Near 10%
Next week, the government is set to release data that could show
U.S. unemployment topped 10% during October, though a poll of
economists estimated the rate at 9.9%, up slightly from 9.8% in
September. On Thursday, the Labor Department said the number of
U.S. workers filing new claims for jobless benefits fell by 1,000
last week to 530,000. That was a smaller decline than economists
had expected.
Fed Panel Could Signal Future Rate Change
Communications strategy is likely to be among the issues on the
table when officials gather for the next meeting of the central
bank's Federal Open Market Committee, which sets interest-rate
policy, on Tuesday and Wednesday. The federal-funds rate, an
overnight bank lending rate that is the Fed's benchmark, is set
between 0% and 0.25%, a record low. Many analysts don't expect the
Fed to change rates until the second half of next year at the
earliest, but any change in the wording of its statement could
spark talk of a rate increase coming sooner.
Ford, GM Say October Car Sales Likely Rose
Ford Motor Co.'s (F) top sales analyst said Friday he expects
the selling rate of new cars and trucks to increase to the mid-10
million range for October. George Pipas said the uptick spawned by
the federal government's "Cash for Clunkers" incentives is over and
the auto maker's inventory levels have been restored. Auto makers
will release sales figures Tuesday. Earlier this week, General
Motors Co.'s sales chief, Susan Docherty, said the auto maker
expects the selling rate to be 10.7 million new cars and trucks for
October, compared with 9.4 million in September. GM is also
expected to report its first monthly sales increase since January
2008.
Improved Economy, Cool Weather May Lift Sales
Major retailers, which will report same-store sales for October
on Thursday, may benefit from the recovering economy as well as
from cool weather, which sparks sales of fall and winter clothing.
Retailers posted higher-than-expected September figures after a
yearlong streak of falling sales. They have been suffering as
consumers continued to be less free with their spending. But
starting in September, comparisons with year-earlier results became
notably easier, increasing the near-term likelihood of
year-over-year growth gains.
Cisco Systems, Kraft Foods To Post 3Q Results
Cisco, which reports Wednesday, is expected to post lower profit
and sales but also affirm the much-anticipated comeback in
corporate demand for high-tech products and services. The tech
behemoth recently sent strong signals that it expects the corporate
information-technology market to pick up soon, announcing three
acquisitions in October alone.
Kraft, which reports Tuesday, is expected to post wider profit
margins and possibly even exceed forecasts. The food company's
earnings will be closely watched since its bid for Cadbury PLC
(CBY, CBRY.LN) has a stock component, and it must convince Cadbury
shareholders of the value of holding its shares.
Media Companies May Benefit From Ads Bottoming
Major media companies are likely to describe a stabilizing
advertising market after years of declines when they report
third-quarter results next week. Viacom Inc. (VIA, VIAB), owner of
such cable-TV channels as MTV and Comedy Central, reports Tuesday,
followed a day later by Time Warner Inc. (TWX), parent of AOL, CNN
and HBO, and News Corp. (NWS, NWSA), which owns the publisher of
the Wall Street Journal and this newswire. Broadcaster CBS Corp.
(CBS) posts results Thursday.
Hedge-Fund Managers Expected To Post Profits
Three major hedge-fund managers will post third-quarter results
next week as their funds capture their high-water marks. Och-Ziff
Capital Management LLC (OZM), which reports Tuesday, is likely to
post lower results from a year earlier, though it has seen
improvement in all of its funds. Fortress Investment Group LLC
(FIG) and Blackstone Group LP (BX) are expected to swing to the
black when they report Friday.
More Insurers Expected To Swing To 3Q Profits
More insurers will report third-quarter results next week after
rivals this week said improving business and rallying stock markets
put an end to big investment losses. Hartford Financial Services
Group Inc. (HIG), which reports Tuesday, is likely to swing to a
profit, while Prudential Financial Inc.'s (PRU) results Wednesday
are expected to increase from a year earlier. Health insurers
Humana Inc. (HUM) and Cigna Corp. (CI) will report Monday and
Thursday, respectively. Allstate Corp. (ALL), which reports
Wednesday, is likely to swing to a profit.
US, Canada To Turn Back Clocks One Hour Sunday
The U.S. and Canada will move to standard time from
daylight-saving time early Sunday, when clocks are turned back by
one hour. European countries returned to standard time from
daylight-saving time last week.
Voters To Decide Tight Races For NJ, Va Governor
Voters in New Jersey and Virginia will go to the polls Tuesday
to choose governors and other state officials in an election likely
to be read as a referendum on President Barack Obama. The unpopular
incumbent New Jersey governor, Jon Corzine, has pulled even in
polls with Republican Chris Christie, a former federal prosecutor,
and Obama will campaign with the Democrat again on Sunday.
Meanwhile, GOP candidate Robert McDonnell, a former state attorney
general, holds a double-digit lead in the polls over Democrat
Creigh Deeds for the open seat in Virginia.
Obama To Meet With European Commission Chief
President Barack Obama and European Commission President Jose
Manuel Barroso will hold a U.S.-European Union Summit on Tuesday in
Washington. They are expected to announce the formation of a new
transatlantic energy council to discuss steps both sides can take
to boost energy security and create new green-technology jobs.
In addition, German Chancellor Angela Merkel meets with Obama on
Tuesday and will address a joint session of Congress to commemorate
20 years since the fall of the Berlin Wall.
Reports Due On Home Sales, 3Q Productivity
Economic reports out Monday are expected to show a small rise in
pending home sales and a small decline in construction spending in
September. The Institute for Supply Management reports on
manufacturing activity Monday and the services sector Wednesday. On
Tuesday, the government will release data on September factory
orders while its preliminary figure on third-quarter productivity
is due Thursday.
Conferences
Among the significant conferences next week are the TechAmerica
AeA Classic Financial Conference from Sunday through Tuesday in San
Diego; EEI Financial Conference from Sunday through Wednesday in
Hollywood, Fla.; Goldman Sachs Borse Dubai International Investor
Conference on Monday and Tuesday in New York; Dow Jones Newswires
Limited Partners Summit West on Tuesday and Wednesday in San Mateo,
Calif.; Oppenheimer & Co. Healthcare Conference on Tuesday and
Wednesday in New York; and Goldman Sachs Global Industrials
Conference on Thursday in New York.
-By Kathy Shwiff, Dow Jones Newswires; 212-416-2357;
kathy.shwiff@dowjones.com
(Dow Jones Newswires staff contributed to this report.)
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