Bernanke Talks Stimulus; U.S. Retail Sales Rise

Arthi Gupta
15 Oct, 2010
New York City

U.S. stocks gained after CPI rose 0.1% and retail sales climbed 0.6% in September. U.S. Fed Chairman Bernanke warned prolonged high unemployment would pose a risk to economic recovery. Motorola and Nokia inked 4G licensing agreement.

[R]10:15 AM New York – U.S. stocks gained after CPI rose 0.1% and retail sales climbed 0.6% in September. U.S. Fed Chairman Bernanke warned prolonged high unemployment would pose a risk to economic recovery. Motorola and Nokia inked 4G licensing agreement.[/R]

Asian markets declined and European markets edged higher.

The U.S. Labor Department said consumer prices rose 0.1% in September. Core prices, which exclude the volatile food and energy sectors, were unchanged in September. However economists were looking for the core prices to increase 0.1%.

Retail sales climbed more than expected in September, according to new government data released today. A sharp rise in auto sales helped bolster the results,

The U.S. Commerce Department said retail sales rose 0.6% in September, following a revised 0.7% advance in August, reaching $367.7 billion. September retail sales were 7.3% higher than the same period last year.

The New York Federal Reserve''s Empire State Manufacturing Survey showed a reading of 15.7 for October.

The Federal Reserve Chairman Ben Bernanke said at the Boston Fed''s annual conference that the Fed is ready to support the sluggish economy with further monetary easing measures.

He further reiterated in response to the threat of disinflation and a stagnant economy, the Fed is widely expected to expand its asset purchase program following its next meeting, on November 3.

Prolonged high unemployment would pose a risk to consumer spending and hence to the sustainability of the recovery,"""" Bernanke warned.

Motorola, Inc., the mobile phone maker and Nokia Corp. said they have entered into a 4G license agreement. The terms of the agreement are confidential. As per the deal, Motorola and Nokia extended the companies'' existing intellectual property licensing agreement to include 4G cellular technologies.

Earnings Review

First Horizon National Corporation ((FHN)), the financial services provider said third quarter total revenues fell 12% to $434.36 million, compared to $493.04 million in the prior-year quarter. Net income in the quarter was $15.88 million or 7 cents per diluted share, compared to a net loss of $52.86 million or 23 cents per share in the same quarter last year.

General Electric Company ((GE)), the diversified technology, media and financial services company. reported third quarter consolidated revenues decreased 5% to $35.89 billion from $37.80 billion in the same quarter last year. Net earnings in the quarter fell 18% to $2.06 billion, or 18 cents per diluted share, compared with net earnings of $2.49 billion, or 23 cents per share, a year ago.

Mattel, Inc. ((MAT)), the toy manufacturer reported third quarter net sales rose 2.2% to $1.83 billion from $1.79 billion last year, including 3 percentage points impact from unfavorable changes in currency exchange rates. Net income in the quarter increased 23.2% to $283.3 million or 77 cents per diluted share, compared to net income of $229.8 million or 63 cents per share in the prior-year quarter.