U.S. Unemployment Rate 6.5%, Ford Loss

123jump.com Staff
07 Nov, 2008
New York City

October unemployment rate rose to 6.5% from 6.1% in September. The U.S. economy has lost 1.2 million jobs in the first ten months in the year. Total number unemployed stand at 10.1 million. Ford Motor reported a fall in revenue and a higher quarterly loss. Disney net in the quarter dropped.

[R]10:00AM New York – Unemployment rate rises to 6.5%. Ford Motor quarterly loss increases. Disney quarterly net falls.[/R]

The U.S. stocks edged higher after the release of October unemployment. Ford Motor reported a loss of 6 cents per share on a decline in revenue from a year ago.

Unemployment rate in October rose to 6.5% from 6.1% in September after non-farm payroll fell 240,000 according to the latest statistics from the U.S. Department of Labor. The latest decline in jobs is in addition to losses of 127,000 in August and 284,000 revised in September.

Manufacturing, construction and service sector continue to lose jobs but heath care and mining added jobs in the month.

Employment in construction industry fell 49,000 in October and has lost 663,000 after peaking in September of 2006. Retail traded employment in October fell 38,000 with auto dealers shedding 20,000.

Employment has fallen by 1.2 million in the first ten months of the year and unemployed persons increased by 603,000 in October to 10.1 million.

Ford Motor Company ((F)) third quarter revenue declined to $32.1 billion from $41.1 billion a year ago and lost $129 million compared to a loss of $380 million. Loss per share in the quarter was 6 cents.

The company blamed decline in sales on unfavorable product mix, net interest expense lower net pricing and the sale of Jaguar and Land Rover division to Tata Motors of India.

Ford North America reported pre-tax loss of $2.6 billion compared to a loss of $1 billion.

The Walt Disney Company, the family entertainment company said fourth quarter revenues rose 5.8% to $9.45 billion from $8.93 billion a year ago. Net income in the quarter fell 13% to $760 million or 40 cents per diluted share compared to net income of $877 million or 44 cents per share, a year ago.

For the year to Sept. 27, Disney''s revenue grew 7 percent to $37.84 billion from $35.51 billion, while net profit fell 5.5 percent to $4.43 billion, or $2.28 per share, from $4.67 billion, or $2.25 per share.

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In London FTSE 100 Index traded higher 77.59 or 1.82% to 4,350.00, in Paris CAC 40 Index increased 34.95 or 1.03% to 3,422.20 and in Frankfurt DAX index traded higher 46.91 or 0.97% to 4,860.48. In Zurich trading SMI increased 114.93 or 1.94% to 6,039.83.