STOCKS FALL AT THE OPEN ON ELECTION JITTERS
- Tightening polls in the U.S. presidential race continued to steer market sentiment.
- Haven assets rise as investors wait for an interest rate decision from the Federal Reserve.
- The Fed voted 7-3 in September to keep rates unchanged in a range between 0.25% and 0.5%.
- Alibaba’s second-quarter revenue beat estimates.
US FINANCIAL MARKET
- Valeant is in advanced talks to sell a big stomach-drug business to Japan’s Takeda for about $10 billion, a move seen easing pressure on Valeant over its hefty debt load.
- The companies could reach a deal for Salix, which Valeant bought just a year-and-a-half ago, in the coming weeks.
- There is another unnamed potential bidder in the mix, according to a person familiar with the matter.
- The purchase price would include about $8.5 billion in cash and future royalty payments to Valeant, the people said.
- Alibaba reported profit fell 66% to 7.62 billion yuan ($1.14 billion) from 22.75 billion yuan a year earlier.
- The year-ago quarter included a noncash revaluation gain of 18.6 million yuan.
- Revenue rose 55% to 34.29 billion yuan ($5.14 billion).
- Alibaba reported 439 million annual active buyers, up 14% from a year ago.
- Mobile monthly active users rose 30% to 450 million.
- Time Warner reported a profit of $1.47 billion, up from $1.04 billion a year earlier.
- Revenue climbed 9.2% to $7.17 billion, topping the $6.98 billion analysts were looking for.
- Revenue rose 4.4% to $3.62 billion.
- For the year, Allergan said it now expects revenue of $14.45 billion to $14.65 billion, down from $14.65 billion to $14.9 billion previously.
- Allergan also said it would pay an initial quarterly dividend of 70 cents in March 2017.
- Gilead reported Harvoni sales decreased 44% to $1.86 billion, while Sovaldi sales also fell 44% to $825 million.
- Analysts had expected Harvoni sales of $2.32 billion and Sovaldi sales of $1.06 billion.
- Overall, Gilead reported a third-quarter profit of $3.33 billion, down from $4.6 billion a year earlier due to acquisition-related impacts, stock-based compensation and other items.
- Revenue decreased 9.6% to $7.5 billion. Gilead affirmed its 2016 product sales outlook.
- Zoetis reported a profit of $239 million, up from $189 million a year prior.
- Revenue rose 2.2% to $1.24 billion.
- The company said it now expects revenue for 2016 to be about $83.5 billion, compared with its earlier estimate of between $82.5 billion and $83.5 billion.
- In the latest quarter, total medical enrollment grew 3.1% from to 39.9 million.
- The company posted a profit of $617.8 million, down from $654.8 million a year earlier.
- Revenue climbed 7.5% to $21.4 billion.
- Yelp reported a surprise profit, marking the highest adjusted EBITDA in the company’s history.
- But the construction-materials company’s profit rose as margins expanded.
- Vulcan posted a profit of $139.8 million, up from $123.8 million a year ago.
- Revenue fell 2.9% to $1.01 billion.
- Panasonic, Tesla’s longstanding battery partner, agreed in 2014 to invest in equipment, machinery and other manufacturing tools at the gigafactory, which will make cylindrical lithium-ion cells for Tesla’s cars.
- Singapore-based Broadcom, formerly Avago Technologies, is known for its connectivity chips while California-based Brocade makes networking hardware, software and storage products.
- October vehicle sales in the United States fell to 188,813 from 213,938 a year earlier.
- Michael O. Johnson has weathered a number of prominent struggles, including a bruising battle with the hedge fund manager William A. Ackman and a settlement with government regulators over the nutritional supplement maker’s business practices.
- Now Mr. Johnson is paving the way to step down as chief executive.
- He will be succeed by Richard P. Goudis, a longtime lieutenant who is the company’s chief operating officer.
- The F-35 program office made the request for more money to complete development, which is supposed to be in its last stretch after 15 years.
- The call for more money comes as the Pentagon’s chief weapons tester has issued a fresh warning that the aircraft, projected to cost $379 billion for a fleet of 2,443 U.S. planes, is far from showing it has full combat capability.
US ECONOMY & POLITICS
- Economists had expected an increase of 170,000. The September total was revised to 202,000 from 154,000.
- Mortgage market index fell 1.2% to 486.2, which was the lowest level since the week of May 27.
- Interest rates on 30-year fixed-rate mortgages, which are the most widely held type of U.S. home loans, averaged 3.75% in the latest week, matching the level last seen in June.
EUROPE & WORLD
- Airbus officially targets more than 650 commercial deliveries, but the company’s finance director last week told analysts that it actually would deliver more than 670.
- Airbus posted 566 gross orders between January and September.
- Danish shipping-and-oil giant posts 43% fall in third-quarter profit.
- Net profit dropped to $429 million from $755 million a year earlier.
- Revenue declined 9% to $9.18 billion.
TODAY in HISTORY
- North Dakota and South Dakota became the 39th and 40th states, respectively (1889)
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