US-BUSINESS Summary
Wall St hits 12-month highs; Apple up late
NEW YORK - U.S. stocks rose to fresh 12-month highs on Monday as optimistic investors rode a wave of solid quarterly earnings, which continued after the session's close when Apple Inc's shares jumped on its results. Earnings from companies, including Gannett Co Inc <GCI.N>, which beat analysts' expectations, and positive broker commentary on Caterpillar Inc <CAT.N> further encouraged investors looking for confirmation the economy is healing.
Apple smashes forecasts, shares hit record
SAN FRANCISCO - Apple Inc's <AAPL.O> profits and sales streaked past Wall Street forecasts as iPhone and Mac sales hit quarterly records, sending its shares rocketing to all-time highs on Monday. Sales of Mac computers -- the largest single contributor to Apple's revenue -- jumped 17 percent from a year earlier to 3.05 million in the September quarter, above analysts' average estimate of about 2.8 million.
Bernanke calls for action on global imbalances
SANTA BARBARA, California - U.S. Federal Reserve Chairman Ben Bernanke warned on Monday that Asian export-promotion policies and large U.S. budget deficits could refuel global economic imbalances and put efforts to achieve more durable growth at risk if not curbed. Throwing his weight behind a recent call by leaders of the Group of 20 major powers to rebalance the global economy in the wake of a devastating financial shock, Bernanke said Asian nations, like China, that enjoy large trade surpluses should discourage excess saving and boost consumption.
IBM veteran exec put on leave after insider arrest
NEW YORK - IBM <IBM.N> placed senior executive Robert Moffat on leave of absence after he was arrested in the largest ever hedge fund insider-trading scheme. Moffat, senior vice president and head of International Business Machines Corp.'s systems and technology group, was charged with passing on insider information to a hedge fund.
U.S. poised to bring more insider trading cases
BOSTON/WASHINGTON - Fresh from laying charges in the largest hedge fund insider trading case in history, U.S. federal investigators are poised to bring further "significant" cases. The targets will include financial professionals also involved in insider trading, a source familiar with the matter said. It was not immediately clear whether the new cases will be related to the one that ensnared hedge fund founder Raj Rajaratnam and executives from some of the largest U.S. companies. <ID;nN19384844>
Hasbro gets Transformers boost, other brands weak
NEW YORK - Hasbro Inc <HAS.N> posted revenue that fell short of Wall Street expectations on Monday as weakness in brands like Monopoly and Strawberry Shortcake offset strong sales of boys' toys tied to the G.I. Joe and Transformers movies. Shares in the No. 2 toymaker behind Mattel Inc <MAT.O> fell 3.4 percent as the company said it was taking a "cautious approach" to the 2009 holiday season and sought to temper investor expectations about the potential of future movies.
Icahn offers to underwrite $6 billion loan to CIT
NEW YORK/PHILADELPHIA - Carl Icahn, the famed corporate raider, accused finance company CIT Group Inc <CIT.N> of trying to win support for its reorganization by overpaying for a new loan from some existing lenders. Icahn, who told Reuters he is the largest holder of CIT Group debt, said the struggling finance company is looking to borrow $6 billion from some of its current debt investors.
TI profit, revenue beat Wall St forecasts
NEW YORK - Texas Instruments Inc <TXN.N> posted better-than-expected third-quarter results on Monday, citing strong demand from every industry that uses its chips, from cars to computers and phones. The chip maker, whose shares rose 2.5 percent, also said results in the fourth quarter would be stronger than current forecasts by analysts.
Boston Scientific profit up, outlook cut
CHICAGO - Boston Scientific Corp <BSX.N> on Monday reported a quarterly net profit, compared with a year-ago loss, but cut its full-year earnings outlook, citing weakness in the market for implantable heart defibrillators. The company's shares fell 5.7 percent to $9.56 in post-market trade from a close of $10.16 on Monday on the New York Stock Exchange.
U.S. launches aid for state, local housing agencies
WASHINGTON - The Obama administration on Monday launched a program to help the depressed U.S. housing market by effectively allowing state and local housing finance agencies to borrow from the U.S. Treasury. The initiative, announced as new data showed a downturn in homebuilder sentiment, aims to restart a source of mortgage financing for first-time and low-income buyers that has been largely shut down by credit market gridlock.