US-BUSINESS Summary
Stocks jumps on strong data ahead of Fed statement
NEW YORK - U.S. stocks rose broadly on Wednesday on positive economic data and ahead of a Federal Reserve statement on interest rates and the economy that is expected to keep government support in place. Data showed the services sector grew in October for a second straight month, while U.S. companies reduced jobs last month at the slowest pace in more than a year.
Services sector grows, job losses decline
NEW YORK - The U.S. services sector, which represents about 80 percent of U.S. economic activity, grew for the second consecutive month in October, while the labor market also showed signs of improvement in data published on Wednesday. The U.S. Institute for Supply Management's services index slipped to 50.6 last month from 50.9 in September, below economists' median forecast for a rise to 51.5, with the dividing line between growth and contraction being 50.
Time Warner profit beats estimates; outlook raised
NEW YORK - Time Warner Inc <TWX.N> posted a higher-than-expected quarterly profit and raised its full-year earnings forecast in a sign that advertising sales at cable networks such as TNT are recovering and cost cutting at the Warner Bros film studio is paying off. The surprising results from the media powerhouse -- earnings per share beat analyst forecasts by about 15 percent -- come during a major repositioning at Time Warner, which has spun off Time Warner Cable <TWC.N> and is about to spin off AOL. It shares rose 2.8 percent in premarket trade.
GM's U-turn on Opel sale angers Germany, Russia
FRANKFURT/BERLIN - German and Russian leaders seethed and unions tore up a deal to cut costs in protest at General Motors' <GM.UL> "completely unacceptable" decision to keep Opel, its European unit, after months of talks. Labor leader Klaus Franz rescinded hundreds of millions of euros in cost concessions that workers agreed to on condition that Opel was bought by Magna <MGa.TO>, the Russian-backed Canadian group long backed as buyer by Berlin and Moscow.
Fed seen staying on easy-money path
WASHINGTON .
Comcast beats Street on phone, Internet service
NEW YORK - Comcast Corp's <CMCSA.O> quarterly profit rose a better-than-expected 22 percent, as it sold more phone and Internet subscriptions, helping to fight competition from phone and satellite companies. But the largest U.S. cable company, which sources have said is in talks to take control of NBC Universal, suffered from a lack of corresponding gains in revenue received from each customer, due to promotional discounting to woo or retain subscribers.
Pulte raises Centex savings forecast, shares surge
NEW YORK - Pulte Homes Inc <PHM.N> raised its forecast for efficiencies and savings from its acquisition of rival Centex Corp, overshadowing a quarterly loss and sending its shares up 7.5 percent. The biggest U.S. homebuilder also reported higher gross margins in the third quarter.
ADP profit beats estimates as costs decline
NEW YORK - Automatic Data Processing Inc <ADP.O> posted higher-than-expected quarterly earnings on Wednesday as the world's largest payroll processing company trimmed expenses to offset lower sales. ADP also raised its fiscal 2010 revenue forecast, and its shares rose 1.35 percent to $41.20 in premarket trading.
Molson Coors profit tops view, volume slips
CHICAGO - Molson Coors Brewing Co <TAP.N> reported a bigger-than-expected rise in quarterly profit, helped by cost cuts and price increases, but volumes fell as the beer industry sees a slowdown in consumer spending. The results echoed reports by MillerCoors, Molson's U.S. joint venture with SABMiller Plc <SAB.L>, and by Carlsberg <CARLb.CO>, the fourth-biggest brewer. Shares of Molson Coors fell 3 percent.
U.S. planned layoffs fall for third month in Oct
NEW YORK - Planned layoffs at U.S. firms fell for a third straight month in October to a 19-month low, feeding hopes the labor market will continue to improve as economic activity rebounds. Planned job cuts announced by U.S. employers fell to 55,679 in October, down 16 percent from 66,404 in September, according to a report released on Wednesday by global outplacement consultancy Challenger, Gray & Christmas, Inc.