US-BUSINESS Summary
CORRECTED: Futures jump after Apple's results
NEW YORK - U.S. stock index futures jumped in late trade on Monday following technology bellwether Apple Inc's <AAPL.O> stronger-than-expected quarterly results. * S&P futures climbed 4.50 points, while Nasdaq futures shot up 16.60 points, and Dow industrial stock futures climbed 21 points.
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.
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.
SEC pursuing "significant" insider cases: source
WASHINGTON - U.S. securities regulators are pursuing "significant" insider trading cases involving financial professionals, a source familiar with the matter said on Monday. The source would not say whether the matter is related to one that ensnared billionaire hedge fund founder Raj Rajaratnam and executives from some of the biggest U.S. companies.
Icahn offers to underwrite $6 billion loan to CIT
NEW YORK/PHILADELPHIA - Carl Icahn, the famed corporate raider who says he is the largest holder of CIT Group Inc bonds, said the troubled lender is paying too much for an ill-conceived plan to win over a select few creditors. Icahn sent a letter to CIT's <CIT.N> board on Monday offering to underwrite a $6 billion loan to the company. He also criticized CIT's reorganization plan, saying it will only enrich certain CIT lenders and advisers without creating a sustainable, competitive company.
More investors overweight equities: Citigroup
NEW YORK - Investors are becoming increasingly confident in holding equities as U.S. markets continue to make new yearly highs heading into the final months of 2009, according to a client survey by Citigroup. However, a significant proportion of investors still think earnings estimates for 2010 are too high, are worried about U.S. public finances, the prospect of rising interest rates next year and a less-than-stellar economic recovery.
Gannett profit sinks but beats estimates
NEW YORK - Gannett Co Inc <GCI.N>, the largest U.S. newspaper publisher, reported a lower quarterly profit and a 28 percent drop in publishing advertising revenue on Monday, but the results were better than expected and shares rose more than 8 percent. Gannett's profit beat reflects painful attempts to slash expenses during the past year, from furloughing and laying off workers to slashing pay. Similar moves at other publishers, such as McClatchy Co <MNI.N>, which reported results last week, have helped them also beat Wall Street's forecasts.
Housing starts, permits seen rising in September
WASHINGTON - New construction of U.S. homes and permits for future building likely rose in September, supported by an improvement in sales and declining stocks of unsold properties, according to a Reuters survey. The poll of 69 economists forecast housing starts rising to a seasonally adjusted annual rate of 610,000 units in September from 598,000 units in August. New building permits, which give a sense of future home construction, were seen rising to an annual pace of 600,000 units from 580,000.
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.
Greenlight's Einhorn holds gold, says U.S. policies poor
NEW YORK - Hedge-fund manager David Einhorn, who warned about Lehman Brothers' precarious finances before it collapsed, said on Monday he's betting on rising interest rates and holding gold as a hedge for what he described as unsound U.S. policies. "If monetary and fiscal policies go awry" investors should buy physical gold and gold stocks, Einhorn said at the fifth Annual Value Investing Congress in New York. "Gold does well when monetary and fiscal policies are poor and does poorly when they are sensible."