Merrill Lynch's Profit up 51%

Elena
18 Oct, 2005
New York City

Asian-Pacific markets closed mostly up, although the Nikkei lost 0.4% on tech stocks.European stocks advance at mid-day on retreating oil with the DAX 30 and CAC 40 up 0.2%. The computer maker Merrill Lynch released 51% Q3 earnings rise of $1.14 a share on strong trading activity, beating estimates of $1.18. 3M reported Q3 profit rise of $1.10 a share vs. 97 cents a year ago, beating estimates.

U.S. MARKET AVERAGES

U.S. stock futures predict a higher Tuesday open of the session on better-than-anticipated earnings reports from Dow Component IBM and Merrill Lynch which lifted the market sentiment ahead of more earnings reports.

S&P 500 futures were up 0.3 point, above their fair value. Dow Jones industrial average futures were up 12 points, while Nasdaq 100 futures were up 2.5 points.

Blue-chip manufacturer 3M Co. ((MMM)) reported better-than-expected earnings but projected a full-year outlook that came below analysts' estimates.

Another Dow component, chip maker ntel Corp. ((INTC) is expected to release its quarterly results after the market's close.

Government data on a key measure of inflation is due at 8:30 a.m. September producer prices probably rose 1.1%, according to analysts surveyed by Reuters. The core rate, excluding food and energy prices, probably rose 0.2%, according to the poll.

INTERNATIONAL MARKET NEWS

Asian-Pacific benchmarks closed mostly higher, although the Nikkei lost 0.4% on tech stocks, ahead of Intel Corp.’s earnings release. Today’s decline of the Japanese stock markets continued the negative trend from the previous four sessions. Across the region, Hong Kong’s Hang Seng gained 0.4% and South Korea’s Kospi rose 0.8%.

European markets traded higher at mid-day, supported by strong U.S. markets close Monday and declining crude-oil prices. The healthcare sector was in the spotlight. The German DAX 30 added 0.2%, the French CAC 40 rose 0.2%, while London’s FTSE 100 remained almost unchanged at 0.04%. The euro was steady at $1.1998.

ENERGY, METALS, CURRENCIES

Oil prices dropped about $1 on expectations that Hurricane Wilma will fail to hit the vulnerable oil platforms and refineries in the Gulf of Mexico. Light sweet crude for November delivery fell 98 cents to $63.608 a barrel on the Nymex. London Brent lost $1.06 to trade at 59.81.

In European trading gold prices lost ground In London gold December contract traded at the recommended price at $473 per troy ounce., down from $474.30.

In European trading the U.S. dollar grew stronger against its major counterparts. The euro was quoted at $1.1952, down from $1.2092. The dollar changed hands at 115.08 yen, down from 113.92. The British pound was trading at $1.7452, down from $1.7689.

EARNINGS NEWS

Merrill Lynch ((MER)), investment and financing services provider, posted a record Q3 of $1.40 a share, 51% up from last year’s in the same period, topping analyst estimate of $1.18 per share. Revenue amounted to $6.7 billion.

American Standard Cos. ((ASD)), maker of bath and kitchen products and vehicle control systems, posted Q3 earnings of 74 cents a share, up vs. profit of 71 cents a share in the year-ago period. Sales advanced in Q3 to $2.62 billion vs. $2.4 billion in the comparable period. On an adjusted basis, aside from items, the company earned gained 75 cents a share in Q3, missing analyst estimate of 78 cents a share. The company revised its outlook down for the full year to earnings of $2.54 to $2.58 a share from a previous projection for a profit of $2.60 to $2.75 a share.

Great Atlantic & Pacific Tea Co ((GAP)), regional grocery chains, posted Q2 net income of $14.40 a share, up from a loss of $1.67 a share in the year-earlier period. The company’s sales amounted to $2.17 billion, down vs. $2.49 billion on a 1.1% decline in U.S. comparable-store sales. In Q2, A&P won $919 million connected with the disposal of its Canadian operations together with $152 million in charges.

Station Casinos, Inc. ((STN)), casino properties operator, reported that Q3 net income advanced 34% to 63 cents a share, up from 46 cents a share in the year-ago period on 14% revenue growth. Q3 Same-store revenue increased 16%.

U.S. Bancorp ((USB)), financial services provider, announced that Q3 earnings increased 8.3% to 62 cents a share on 1.8% revenue growth on better revenue from credit and debit cards as well as corporate payment products, beating analysts’ estimate by a penny.

KeyCorp ((KEY)) financial-services company, posted Q3 net income of 67 cents a share, up vs. 61 cents in the same period a year ago on revenue growth, beating analysts’ forecasts by a penny. Net interest margin increased to 3.67% in Q3, while both net loan charge-offs and nonperforming loans declined from last year.

3M Co. ((MMM)), maker of industrial and household products, posted Q3 earnings of $1.10 a share, up from profit of or 97 cents a share in the year-ago period, beating analysts’ forecasts of $1.08 a share. Sales in Q3 advanced 8.3%. 3M Co. has approved the buyback of an additional $300 million worth of its common stock, bringing its total repurchase authorization to $2.3 billion for calendar 2005. The company estimates about $500 million of that authorization remains.

State Street Corp. ((STT)), asset management services company, posted Q3 earnings of 43 cents a share, down vs. 52 cents a share in the year-ago period despite revenue growth. Apart from discontinued operations, earnings would have been 75 cents a share, beating analyst estimate of 67 cents a share. The company anticipates earnings growth going forward from continuing operations of 10% to 15% and return on equity of 14% to 17%.