Stocks were up slightly as investors grow optimistic that
Washington can hammer out a deal to avert a default, and two major
lenders reported earnings.
Republicans left a meeting with President Obama yesterday in a good
New York Times
that the GOP might allow the Treasury to borrow money to meet its
obligations through Nov. 22 in exchange for continued negotiations
on deficit and tax reduction.
US stock index futures headed for a slightly higher open.
(INDEXDJX:.DJI) futures were up 0.17% at 15,058. Futures on the
(INDEXSP:.INX) rose 0.14% to 1,687.30 and
(INDEXNASDAQ:.IXIC) futures gained 0.15% to 3,198.25.
Later today, the University of Michigan/Reuters consumer confidence
index will come out. Economists expect the index to fall 2.5 points
this month to 75.
) reported a quarterly loss, its first in nearly a decade due to
legal costs. Including a $9.15 billion litigation expense, the bank
lost $0.17 per share, down from $1.40 in profit from a year ago.
"We continuously evaluate our legal reserves, but in this highly
charged and unpredictable environment, with escalating demands and
penalties from multiple government agencies, we thought it was
prudent to significantly strengthen them. While we expect our
litigation costs should abate and normalize over time, they may
continue to be volatile over the next several quarters," said CEO
Jamie Dimon. "The Board continues to seek a fair and reasonable
settlement with the government on mortgage-related issues and one
that recognizes the extraordinary circumstances of the Bear Stearns
and Washington Mutual transactions, which were undertaken at the
request or encouragement of the US government."
Excluding legal costs, the bank beat earnings expectations.
Ignoring one-time charges, the bank earned $1.17, beating analyst
expectations of $1.17. Shares were up 1.3% in the pre-market.
) shares plunged 1.9% as the mortgage industry suffered, and the
bank cut costs. In the third quarter, mortgage banking income fell
43% from a year ago. Earnings per share of $0.99 beat expectations
by $0.02, but revenue of $20.5 billion fell short.
"As expected, mortgage banking revenue was lower in the quarter as
the recent increases in interest rates reduced refinance volume,
but this impact was partially offset by improved credit and lower
expenses," said CFO Tim Sloan.
that broadcasters might file a petition to bring their fight with
Aereo, the TV service that streams local TV broadcasts over the
Web, to the Supreme Court. Aereo is backed by Barry Diller,
), who made fast enemies with the likes of
Walt Disney Co
) for stealing their content. If the start-up wins, it could
seriously threaten subscription and advertising revenue for
traditional TV stations.