U.S. Stocks Rally on Microsoft Profit, Countrywide Forecast
U.S. stocks rallied after Microsoft Corp. and Countrywide Financial Corp. reassured investors that profits will extend five years of growth.

The Standard & Poor's 500 index posted its sixth increase in seven weeks after 65 percent of 301 members reported quarterly earnings that topped analysts' forecasts. Profits may grow 7 percent in 2007 and 12.3 percent in 2008, based on the average analyst estimate from a Bloomberg survey.

Merrill Lynch: The O'Neal Weekend Watch

This much is clear: Stanley O’Neal’s days at Merrill Lynch are probably numbered.

After a report in The New York Times that Mr. O’Neal had briefly explored merger talks with Wachovia — an apparent lifeline after announcing the biggest write-down in recent Wall Street history — tongues are wagging that the Merrill chief executive is probably on his way out. CNBC and others have now reported that Mr. O’Neal is telling associates that he isn’t long for the top spot anymore.

Countrywide posts loss, stock soars on forecast

Countrywide Financial Corp (CFC.N: Quote, Profile, Research) posted a $1.2 billion third-quarter loss on Friday, but its shares soared after the largest U.S. mortgage lender said it expects to be profitable in the fourth quarter and in 2008, and has weathered the worst of the housing downturn.

The shares rose 32.4 percent, the largest gain in at least two decades according to Reuters data, and helped push broader stock market indexes higher. Investors gained confidence that Countrywide will be able to rebound from its first quarterly loss in 25 years, which it called an "earnings trough."

Fed Faces Rate Cut Decision
The Federal Reserve's cuts to key interest rates and other steps to help restore flows of funds in financial markets have helped those markets restabilize, Fed Governor Frederic Mishkin said on Friday.

"Although market functioning has certainly not yet returned to normal, and while it is still too early to judge their ultimate success, these actions, along with the policy easing decided at the September (Federal Open Market Committee) meeting, have helped improve conditions in several short-term funding markets," Mishkin said at a symposium at the Museum of American Finance.

Baidu profit doubles, but shares slip on outlook

Chinese Internet search company Baidu.com Inc (BIDU.O: Quote, Profile, Research) beat forecasts by more than doubling its quarterly profit, but its shares fell 4 percent as its profit guidance fell short of some investors' expectations.

Exploding demand for online advertising in the world's second largest Internet market fuelled third-quarter earnings at Baidu, which is often referred to as "China's Google".

Oil and gold rise to fresh records
Crude oil hit a record high above $92 a barrel on Friday, driven higher by fresh geopolitical tensions in the Middle East, tight market fundamentals and increased options-related buying.

Nymex December West Texas Intermediate hit a peak of $92.22 a barrel before easing back to trade 85 cents higher at $91.28, up 3 per cent this week.

With Turkey threatening military action against Kurdish militants in northern Iraq, Middle East tensions were further inflamed by news of a new round of sanctions against Iran by the US government. Iran is the second largest producer in the Organisation of the Petroleum Exporting Countries.

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This entry was posted by David Choi, on Friday, October 26, 2007. You can leave your response.