The annual rate of growth for GDP in the US was released on Friday by the Commerce Department at 2%, higher than the previous quarter's rate of 1.3%. The jump was most likely due to an increase in government spending, consumer confidence and personal consumption. It was announced that the US level of consumer sentiment reached a five-year high, an encouraging economic sign. Many companies released positive earnings reports today, including Comcast Corp. (CMCSA), Merck & Co. (MRK) and VeriSign, Inc. (VRSN). Although there were numerous upbeat reports, disappointing earnings from the past couple of days and growing economic concerns dragged down global stocks. Citigroup (C) decided to fire analyst Mark Mahaney for alledgedly covering up a disclosure violation and was is being fined $2 million by a Massachusetts securities regulator. Oil ended the day slightly higher despite having a poor week and US treasuries rose and are not expected to move much until after the presidential election at the start of November.
Word on the Street
- GDP reported to have risen at a 2% annual rate for the past quarter.
- Newell Rubbermaid (NWL) plans to cut 2,000 jobs, shares rise on raised dividend.
- Citigroup Inc. (C) fires analyst Mahaney after being fined $2 million.
- IMF reports improvements in Spain's banking sector for meeting bailout terms.
- US consumer confidence has reached the highest level in five years.
- Comcast Corp. (CMCSA) reports profitable third quarter but says NBC has a ways to go.
- Oshkosh (OSK) posts higher net profit but rejects bid from investor Carl Icahn.
- DuPont (DD) Misses on Both Top and Bottom Lines, Announces 1,500 Layoffs.
- Jeff Reeves questions the future of the tech industry and his decision to buy stock.
- Marketing lessons from the success of the Red Bull Stratos project earlier in the month.