CHARLESTON, W.Va. -- Houston wide receiver Patrick Edwards said Wednesday he holds no animosity toward Marshall, a day after he ran into a service cart and broke his leg in a game against the Thundering Herd.
The freshman was going after a pass at full speed in the third quarter Tuesday night when his right shin hit a cart in the back of the end zone. A referee immediately called for help and Edwards was carried off the field.
A Cabell Huntington Hospital spokesman said Edwards was in good condition Wednesday following surgery.
Edwards told The Associated Press from his hospital room in Huntington that he didn't see several carts that were parked against a grass embankment.
"I just saw the ball in the air and once it came down, I hit the cart and flipped over it," Edwards said.
He doesn't blame Marshall but said the Conference USA officiating crew should have ensured the carts were moved away.
"They are supposed to check and see if everything is off the field," Edwards said.
His mother, Patricia Edwards, told Houston television station KRIV she is considering legal action against Marshall.
"I thought I didn't have a son anymore, the way he flipped," she said. "I thought we had lost him. He could have been paralyzed or something."
Marshall athletic director Bob Marcum said the carts, used by Marshall's band, will be relocated at future games.
"We are sorry the accident took place and wish Patrick a quick and full recovery," said Marcum, who also talked to Houston athletic director Dave Maggard about the accident.
Conference USA commissioner Britton Banowsky said, "Clearly, all of us in athletics administration share in the responsibility for ensuring that the events conducted on our campuses are as safe as possible for the participants and I'm certain we will stay focused on that objective."
The game was televised nationally and the accident has already been shown thousands of times on the Internet -- even Edwards said he saw the replay.
Edwards, Houston's leading receiver with 634 yards on 46 catches, suffered a compound fracture and had a rod inserted in his lower right leg during surgery, said Houston associate athletic director Chris Burkhalter.
Marshall coach Mark Snyder, safety C.J. Spillman and defensive end Albert McClellan visited Edwards on Wednesday.
"He was in good spirits," Snyder said. "We wanted him to know that he is part of our extended football family and that we are here to help him in any way we can."
Marshall athletics spokesman Randy Burnside said the university's insurance carrier will pay for Edwards' medical bills.
Edwards is expected to make a full recovery.
"The doctor said I will be good, ready for next season," Edwards said.
Copyright 2008 by The Associated Press
Thursday, October 30, 2008
Yahoo and AOL Possible Fusion!
By Anupreeta Das
SAN FRANCISCO (Reuters) - Yahoo Inc and Time Warner Inc's AOL unit are looking at each other's books to figure out how much money they could make together and where costs can be saved, a person familiar with the talks said on Wednesday, indicating a merger may finally be on the way.
While noting a deal was not imminent, the source said the two companies have engaged in "meaningful" due diligence about a possible combination for the past couple of weeks.
Talks are focused on how to integrate AOL's content and advertising business into Yahoo, said the source, who was not authorized to speak publicly because the discussions are confidential.
Yahoo and Time Warner began talks several months ago, when the Internet company was looking for an alternative growth strategy to fend off a $47.5 billion takeover bid from Microsoft Corp.
Yahoo had repeatedly rejected Microsoft, which finally withdrew its $33-per-share proposal in June after Yahoo cut a search advertising partnership with Google Inc.
But the Google deal, also part of Yahoo's alternative strategy, is mired in the regulatory process because critics have said it is anti-competitive. Meanwhile, Yahoo shares have plunged to around $12.
Time Warner shares are down about 45 percent from year-earlier levels, while Yahoo shares have fallen about 63 percent, as fears of an economic recession curbed corporate spending on advertising while Google continued to dominate in the Web search market.
Under the deal Yahoo and Time Warner have discussed, Yahoo would fold AOL's content and advertising business into its own operations, and Time Warner would get a stake in the combined company.
Executives and advisers from both sides met last week as part of the due diligence process, the source said. Both sides are being cautious because any potential deal carries "a lot of risk," the source said, without providing further details.
Integration concerns would likely revolve around how to fold AOL's advertising network into Yahoo's operations, choosing whether to keep separate portals and email services, and squeezing out cost savings by reducing duplication, one former AOL executive said on condition of anonymity.
Yahoo and Time Warner declined comment. News of the due diligence was first reported by the AllThingsDigital blog.
Shares of Yahoo were up 4 cents at $12.40 in late trading, while Time Warner shares were down 15 cents or 1.5 percent at
$9.95.
(Editing by Gerald E. McCormick and Brian Moss)
SAN FRANCISCO (Reuters) - Yahoo Inc and Time Warner Inc's AOL unit are looking at each other's books to figure out how much money they could make together and where costs can be saved, a person familiar with the talks said on Wednesday, indicating a merger may finally be on the way.
While noting a deal was not imminent, the source said the two companies have engaged in "meaningful" due diligence about a possible combination for the past couple of weeks.
Talks are focused on how to integrate AOL's content and advertising business into Yahoo, said the source, who was not authorized to speak publicly because the discussions are confidential.
Yahoo and Time Warner began talks several months ago, when the Internet company was looking for an alternative growth strategy to fend off a $47.5 billion takeover bid from Microsoft Corp.
Yahoo had repeatedly rejected Microsoft, which finally withdrew its $33-per-share proposal in June after Yahoo cut a search advertising partnership with Google Inc.
But the Google deal, also part of Yahoo's alternative strategy, is mired in the regulatory process because critics have said it is anti-competitive. Meanwhile, Yahoo shares have plunged to around $12.
Time Warner shares are down about 45 percent from year-earlier levels, while Yahoo shares have fallen about 63 percent, as fears of an economic recession curbed corporate spending on advertising while Google continued to dominate in the Web search market.
Under the deal Yahoo and Time Warner have discussed, Yahoo would fold AOL's content and advertising business into its own operations, and Time Warner would get a stake in the combined company.
Executives and advisers from both sides met last week as part of the due diligence process, the source said. Both sides are being cautious because any potential deal carries "a lot of risk," the source said, without providing further details.
Integration concerns would likely revolve around how to fold AOL's advertising network into Yahoo's operations, choosing whether to keep separate portals and email services, and squeezing out cost savings by reducing duplication, one former AOL executive said on condition of anonymity.
Yahoo and Time Warner declined comment. News of the due diligence was first reported by the AllThingsDigital blog.
Shares of Yahoo were up 4 cents at $12.40 in late trading, while Time Warner shares were down 15 cents or 1.5 percent at
$9.95.
(Editing by Gerald E. McCormick and Brian Moss)
Starbucks' business may have bottomed in Q4: CEO
By Kathy Finn
NEW ORLEANS (Reuters) - Coffee chain Starbucks Corp (NasdaqGS:SBUX - News) may have weathered the worst of a sales slowdown as growth improved somewhat this month, its top executive said on Wednesday, and its share rose 8 percent.
"The downturn continued in the fourth quarter, and we did see a slight improvement in the first weeks of Q1 ... which might suggest that Starbucks may have hit bottom in terms of negative transactions in our fourth quarter," Starbucks Chief Executive Howard Schultz told reporters at a company leadership conference in New Orleans.
Starbucks is due to report earnings for its fourth quarter, that ended September, on November 10.
The company issued a press release Wednesday evening adding that the company had expected fourth quarter comparable store sales to be "relatively stable with third-quarter trends."
It added that Starbucks experienced further deterioration in the fourth quarter but in October, comparable store sales had improved slightly on higher average value per transaction.
Schultz said fourth-quarter customer visits and closely watched sales at established stores remained below last year's levels. But he was careful to say that improvements in the first week of the current quarter do not yet make a trend.
Schultz returned as CEO in January to lead a turnaround at the company that is grappling with increasing competition from the likes of McDonald's Corp (NYSE:MCD - News) at the same time as it recovers from a U.S. store building binge.
Starbucks earlier this year said it would close 600 poorly performing stores in the United States as well as 61 in Australia.
The Seattle-based chain famous for its pricey lattes also cut thousands of jobs and trimmed growth plans in a sharp economic downturn that has overturned its reputation as a recession-resistant consumer brand.
Starbucks in July posted its first quarterly net loss since going public in 1992. Schultz said on Wednesday that he does not see the economy improving for quite some time.
"The global impact of the financial crisis is significant, and we have to be careful around the world," he said.
CONSTRAINED CONSUMER
The CEO added that consumer confidence has been deeply fractured in the last three to four months.
"It's harder and harder to meet the expectations that people have had of our company because the consumer is so constrained," he said.
While Starbucks is not cutting prices in stores, it has stepped up value-oriented promotions.
For example, Schultz said that club store Costco Wholesale Corp (NasdaqGS:COST - News) is selling five $20 gift cards for $79.95.
"That's a catalyst for building traffic without discounting the products that we sell," Schultz said.
But compared with other companies, Starbucks appears to have been early to respond to the new economic realities, he said.
"When we announced the 600 store closings and the layoffs ... it appears that we were very early in identifying the issues and got out in front of it in many ways," said Schultz, adding that he does not expect to close additional stores.
He said he intends to remain at the helm of the company that he helped turn into a household name.
Shares in Starbucks rose 47 cents to $11.33 on the Nasdaq, but are far off their October 2007 year-high of $26.75.
(Writing by Lisa Baertlein in Los Angeles; additional reporting by Phil Wahba in New York; editing by Carol Bishopric)
NEW ORLEANS (Reuters) - Coffee chain Starbucks Corp (NasdaqGS:SBUX - News) may have weathered the worst of a sales slowdown as growth improved somewhat this month, its top executive said on Wednesday, and its share rose 8 percent.
"The downturn continued in the fourth quarter, and we did see a slight improvement in the first weeks of Q1 ... which might suggest that Starbucks may have hit bottom in terms of negative transactions in our fourth quarter," Starbucks Chief Executive Howard Schultz told reporters at a company leadership conference in New Orleans.
Starbucks is due to report earnings for its fourth quarter, that ended September, on November 10.
The company issued a press release Wednesday evening adding that the company had expected fourth quarter comparable store sales to be "relatively stable with third-quarter trends."
It added that Starbucks experienced further deterioration in the fourth quarter but in October, comparable store sales had improved slightly on higher average value per transaction.
Schultz said fourth-quarter customer visits and closely watched sales at established stores remained below last year's levels. But he was careful to say that improvements in the first week of the current quarter do not yet make a trend.
Schultz returned as CEO in January to lead a turnaround at the company that is grappling with increasing competition from the likes of McDonald's Corp (NYSE:MCD - News) at the same time as it recovers from a U.S. store building binge.
Starbucks earlier this year said it would close 600 poorly performing stores in the United States as well as 61 in Australia.
The Seattle-based chain famous for its pricey lattes also cut thousands of jobs and trimmed growth plans in a sharp economic downturn that has overturned its reputation as a recession-resistant consumer brand.
Starbucks in July posted its first quarterly net loss since going public in 1992. Schultz said on Wednesday that he does not see the economy improving for quite some time.
"The global impact of the financial crisis is significant, and we have to be careful around the world," he said.
CONSTRAINED CONSUMER
The CEO added that consumer confidence has been deeply fractured in the last three to four months.
"It's harder and harder to meet the expectations that people have had of our company because the consumer is so constrained," he said.
While Starbucks is not cutting prices in stores, it has stepped up value-oriented promotions.
For example, Schultz said that club store Costco Wholesale Corp (NasdaqGS:COST - News) is selling five $20 gift cards for $79.95.
"That's a catalyst for building traffic without discounting the products that we sell," Schultz said.
But compared with other companies, Starbucks appears to have been early to respond to the new economic realities, he said.
"When we announced the 600 store closings and the layoffs ... it appears that we were very early in identifying the issues and got out in front of it in many ways," said Schultz, adding that he does not expect to close additional stores.
He said he intends to remain at the helm of the company that he helped turn into a household name.
Shares in Starbucks rose 47 cents to $11.33 on the Nasdaq, but are far off their October 2007 year-high of $26.75.
(Writing by Lisa Baertlein in Los Angeles; additional reporting by Phil Wahba in New York; editing by Carol Bishopric)
Wednesday, October 29, 2008
Monitor moves from print to Web-based tactic!
In 2009, the Monitor will turn into the initial nationally circulated newspaper to substitute its every day print edition with its website - the 100 year-old news organization will also present subscribers weekly print and daily e-mail versions.
The Christian Science Monitor plans main alters in April 2009 that are likely to make it the first newspaper with a national audience to move from a daily print layout to an online newspaper that is updated endlessly each day.
The changes at the Monitor will include enhancing the content on CSMonitor.com, starting weekly print and daily e-mail editions, and discontinuing the current daily print format.
This new, multiplatform strategy for the Monitor will "secure and enlarge the Monitor's role in its second century," said Mary Trammell, editor in chief of The Christian Science Publishing Society and a member of the Christian Science Board of Directors. Mrs. Trammell said that "journalism that seeks to bless humanity, not injure, and that shines light on the world's challenges in an effort to seek solutions, is at the center of Mary Baker Eddy's vision for the Monitor. The method of delivery and format are secondary" and need to be adjusted, given Mrs. Eddy's call to keep the Monitor "abreast of the times."
While the Monitor's print circulation, which is primarily delivered by US mail, has trended downward for nearly 40 years, "looking forward, the Monitor's Web readership clearly shows promise," said Judy Wolff, chairman of the Board of Trustees of The Christian Science Publishing Society. "We plan to take advantage of the Internet in order to deliver the Monitor's journalism more quickly, to improve the Monitor's timeliness and relevance, and to increase revenue and reduce costs. We can do this by changing the way the Monitor reaches its readers."
The Christian Science Monitor plans main alters in April 2009 that are likely to make it the first newspaper with a national audience to move from a daily print layout to an online newspaper that is updated endlessly each day.
The changes at the Monitor will include enhancing the content on CSMonitor.com, starting weekly print and daily e-mail editions, and discontinuing the current daily print format.
This new, multiplatform strategy for the Monitor will "secure and enlarge the Monitor's role in its second century," said Mary Trammell, editor in chief of The Christian Science Publishing Society and a member of the Christian Science Board of Directors. Mrs. Trammell said that "journalism that seeks to bless humanity, not injure, and that shines light on the world's challenges in an effort to seek solutions, is at the center of Mary Baker Eddy's vision for the Monitor. The method of delivery and format are secondary" and need to be adjusted, given Mrs. Eddy's call to keep the Monitor "abreast of the times."
While the Monitor's print circulation, which is primarily delivered by US mail, has trended downward for nearly 40 years, "looking forward, the Monitor's Web readership clearly shows promise," said Judy Wolff, chairman of the Board of Trustees of The Christian Science Publishing Society. "We plan to take advantage of the Internet in order to deliver the Monitor's journalism more quickly, to improve the Monitor's timeliness and relevance, and to increase revenue and reduce costs. We can do this by changing the way the Monitor reaches its readers."
Obama Ad will have live portion - Bill Clinton may join him on stage!
Barack Obama has got a half-hour of primetime TV on CBS and NBC, sources confirm.
The Obama promotion is producing a nationwide pitch to voters that will air on as a minimum two broadcast networks. The ad will run Wednesday, Oct. 29, at 8 p.m. - less than a week previous to the general election.
UPDATED: Wednesday night's Barack Obama primetime ad will contain a live segment near the end of the telecast.
The Democratic candidate is in Florida tomorrow and teaming with former president Bill Clinton for the first time on the campaign trail. The live portion will be broadcast from an evening rally, though it's not clear if Clinton will share the stage during the segment.
"The entire half hour is being fed live to various outlets from a site in Florida," a source said. "They'll be feeding a tape for most of the broadcast and then a live portion at the end."
Though going live is technically more challenging and potentially more risky for Obama should something go awry, the plan will likely result in higher viewership than a mere taped telecast. The move also further explains why the Obama camp insisted on having all its ads run during the same time period.
The special -- titled "Barack Obama: American Stories" -- marks the first time in 16 years a presidential candidate has purchased a national address before the general election.
The telecast should provide a unique test of the electorate's current interest in Obama's messaging. Campaign ads, after all, are typically considered a nuisance best avoided rather than Must See TV -- especially in swing states, which have been bombarded with every flavor of political advertising in recent weeks.
But given the heavy interest in the election in general -- with convention speeches and the debates managing to set Nielsen ratings records -- curiosity tune-in could be high. NBC, CBS, Fox, MSNBC and Univision are among the best known outlets carrying the telecast.
Ratings for paid programming are often not released to the public, and Nielsen was still mulling on Tuesday whether to announce the ad's viewership. Given the heavy media interest, a release seems likely.
Update: The Obama campaign provided The New York Times with a trailer from the taped portion. The footage is described as--
"...heavy in strings, flags, presidential imagery and some Americana filmed by Davis Guggenheim, whose father was the campaign documentarian of Robert F. Kennedy. As the screen flashes scenes of suburban lawns, a freight train and Mr. Obama seated at a kitchen table with a group of white, apparently working-class voters, Mr. Obama says: “We’ve seen over the last eight years how decisions by a president can have a profound effect on the course of history and on American lives; much that’s wrong with our country goes back even farther than that.”
The Times added that the content will highlight the stories of four American families and the challenges they face.
The Obama promotion is producing a nationwide pitch to voters that will air on as a minimum two broadcast networks. The ad will run Wednesday, Oct. 29, at 8 p.m. - less than a week previous to the general election.
UPDATED: Wednesday night's Barack Obama primetime ad will contain a live segment near the end of the telecast.
The Democratic candidate is in Florida tomorrow and teaming with former president Bill Clinton for the first time on the campaign trail. The live portion will be broadcast from an evening rally, though it's not clear if Clinton will share the stage during the segment.
"The entire half hour is being fed live to various outlets from a site in Florida," a source said. "They'll be feeding a tape for most of the broadcast and then a live portion at the end."
Though going live is technically more challenging and potentially more risky for Obama should something go awry, the plan will likely result in higher viewership than a mere taped telecast. The move also further explains why the Obama camp insisted on having all its ads run during the same time period.
The special -- titled "Barack Obama: American Stories" -- marks the first time in 16 years a presidential candidate has purchased a national address before the general election.
The telecast should provide a unique test of the electorate's current interest in Obama's messaging. Campaign ads, after all, are typically considered a nuisance best avoided rather than Must See TV -- especially in swing states, which have been bombarded with every flavor of political advertising in recent weeks.
But given the heavy interest in the election in general -- with convention speeches and the debates managing to set Nielsen ratings records -- curiosity tune-in could be high. NBC, CBS, Fox, MSNBC and Univision are among the best known outlets carrying the telecast.
Ratings for paid programming are often not released to the public, and Nielsen was still mulling on Tuesday whether to announce the ad's viewership. Given the heavy media interest, a release seems likely.
Update: The Obama campaign provided The New York Times with a trailer from the taped portion. The footage is described as--
"...heavy in strings, flags, presidential imagery and some Americana filmed by Davis Guggenheim, whose father was the campaign documentarian of Robert F. Kennedy. As the screen flashes scenes of suburban lawns, a freight train and Mr. Obama seated at a kitchen table with a group of white, apparently working-class voters, Mr. Obama says: “We’ve seen over the last eight years how decisions by a president can have a profound effect on the course of history and on American lives; much that’s wrong with our country goes back even farther than that.”
The Times added that the content will highlight the stories of four American families and the challenges they face.
U.S. Stocks Rally, Dow Jones Industrials Go Up 889 Points
Wall Street at any rate for the moment shrugged off some of its many fears Wednesday and bounded higher thanks to a drop in oil prices. The Dow Jones industrial regular rose 276 points, or 2.5 percent, posting its top each day increase in three months.
The wider Standard & Poor's 500 index also increased 2.5 percent, whereas the technology-dominated Nasdaq composite index surged 3.1 percent. Depositors exited government bonds and back into stocks as it turned out that the slowing economy will limit demand for fuel and, sequentially, energy costs.
By Lynn Thomasson and Eric Martin
Oct. 28 (Bloomberg)- Stocks rallied and the Dow Jones Industrial Average posted its second-best point gain as the cheapest valuations in 23 years lured investors and increased commercial paper sales signaled credit markets are thawing.
Alcoa Inc. jumped 19 percent, leading the Dow to an almost 900-point advance, after the shares slid to their lowest price- to-earnings ratio on record. General Electric Co., the largest issuer of commercial paper, soared 9.9 percent after sales of longer-term debt grew 10-fold yesterday as the Federal Reserve entered the market for corporate IOUs. Citigroup Inc. and Bank of America Corp. rose more than 12 percent as traders boosted bets the Fed will cut interest rates tomorrow.
The Standard & Poor's 500 Index gained 91.59 points, or 11 percent, to 940.51 after sliding to the lowest level since March 2003 yesterday. The Dow climbed 889.35 points, or 11 percent, to 9,065.12. Hong Kong's benchmark index added 14 percent, its best advance in 11 years, while Germany's climbed 11 percent and Brazil's jumped 13 percent.
``The valuations are extremely compelling right now,'' said Dan Veru, who helps manage about $2 billion at Palisade Capital Management in Fort Lee, New Jersey. ``When you're in extreme oversold conditions, the market is prone to these types of wild swings. The key thing is, can we hold these gains?''
Valuation Watch
The S&P 500 was valued at 10.7 times estimated profit when trading opened today, the cheapest compared with the multiple using trailing profit since at least 1985. The index was also 25 percent below its average closing price over the last 50 days, a level reached only four previous times, spurring average gains of about 20 percent over the next six months.
The Dow's only larger point gain was on Oct. 13, when the 30-stock gauge jumped 936 points on the government's plan to buy stakes in banks.
More than nine stocks rose for each that fell on the New York Stock Exchange, where trading volume of 1.7 billion shares was 18 percent greater than the three-month daily average.
Equities around the world tumbled this month, wiping out more than $12 trillion of market value before today, after money markets froze, banks' credit losses climbed to almost $678 billion and economic growth weakened. The S&P 500, which dropped 3.2 percent yesterday, trimmed its monthly decline to 20 percent today.
Citigroup increased 14 percent to $13.41 and Bank of America rose 12 percent to $23.02. The S&P 500 Financials Index jumped 13 percent, the gauge's best advance since September.
Fed Bets
The Fed will announce its decision on interest rates tomorrow. Futures trading suggests a 38 percent chance the central bank will cut the benchmark rate by three-quarters of a percentage point, to 0.75 percent. By contrast, only one of 64 economists foresees that outcome, according to a Bloomberg survey. The rest of the Fed funds futures bets point to a half- point cut.
Alcoa added $1.74 to $10.78. The stock dropped 71 percent this year, leaving it valued at 4.86 times earnings as of yesterday, the cheapest on record.
``Anyone who has a long-term view and looks at earnings multiples and inflation will say it's a cheap moment to buy stocks,'' said Linda Duessel, equity market strategist at Pittsburgh-based Federated Investors Inc., which manages more than $333 billion.
Commercial Paper
GE rose $1.76, or 9.9 percent, to $19.49. The Fed started buying commercial paper yesterday, when companies sold 1,511 longer-term issues totaling a record $67.1 billion of debt due in more than 80 days, compared with a daily average of 340 issues valued at $6.7 billion last week, according to Fed data. The central bank probably absorbed about $60 billion of the total, said Adolfo Laurenti, a senior economist at Mesirow Financial Inc.
Exxon Mobil Corp. advanced $8.77, or 13 percent, to $74.86. Chevron Corp. climbed 13 percent to $70.02. Energy shares in the S&P 500 jumped 12 percent as a group.
Morgan Stanley boosted holdings of Exxon and AT&T Inc. in its U.S. model portfolio, citing the ``defensive'' qualities of the shares.
Exxon had its position doubled to 4 percent because the world's biggest energy company is likely to be ``a far better than average performer'' if some stability returns to the markets, according to analyst Douglas Cohen. AT&T's position was increased to 3 percent from 2 percent. Shares of the largest U.S. phone company rose 13 percent to $27.61.
Valero Energy Corp. jumped 11 percent to $16.81. The largest U.S. refiner posted a smaller decline in third-quarter earnings than analysts predicted after crude-oil costs retreated from an all-time high, easing a squeeze on profit margins.
GM Climbs
General Motors Corp. rose 15 percent to $6.25. Money may be available to U.S. automakers from the federal bailout fund, White House spokeswoman Dana Perino said. GM's Chief Executive Officer Rick Wagoner is pushing for federal aid as the company seeks to merge with Chrysler LLC, people close to the discussions said.
Discover Financial Services climbed 20 percent to $11.65. Visa Inc. and MasterCard Inc., the world's largest credit-card networks, agreed to pay Discover $2.75 billion to resolve a lawsuit settled earlier this month. Discover had accused MasterCard and Visa of blocking banks from issuing their cards.
Boeing Co. gained 15 percent to $48.91. Machinists for the second-largest planemaker plan to vote within five days on a proposed contract to end an eight-week strike.
Wal-Mart Stores Inc. increased 11 percent to $55.17. The world's largest retailer plans to increase international capital spending as it expands in China, Brazil and other emerging markets. The company is ``well positioned'' to meet demands of consumers around the world as the global economy slumps, Mike Duke, Wal-Mart's international chief, told analysts at a meeting.
Interpublic, Fidelity National
Interpublic Group of Cos. gained 35 percent to $5.54, the third-steepest gain in the S&P 500. The second-largest U.S. owner of advertising agencies reported a profit in the third quarter, weathering the economic slowdown through cost cuts and increased international sales.
Fidelity National Information Services Inc. increased 27 percent to $15.87. The payment processor forecast earnings, before certain items, of as much as 49 cents a share in the fourth quarter. Analysts, on average, anticipated 46 cents, according to a Bloomberg survey.
Morgan Stanley increased 11 percent to $15.20 and Goldman Sachs Group Inc. added 69 cents to $93.57. Morgan Stanley lost as much as 26 percent and Goldman fell as much as 11 percent during the day amid speculation a surge in Volkswagen AG shares may have saddled some banks with losses. Germany's financial-markets regulator is looking into trading of Volkswagen stock after Porsche SE's plan to raise its stake in the automaker triggered a fourfold increase in two days.
`Bottoming Process'
Morgan Stanley has ``virtually no exposure,'' to Volkswagen, spokesman Mark Lake said. Goldman Sachs has no significant losses tied to Volkswagen, CNBC reported, citing unidentified sources at the firm. Goldman spokesman Ed Canaday declined to comment.
``We're in the camp that believes a bottoming process is in place,'' said Leo Grohowski, chief investment officer for the wealth management unit of Bank of New York Mellon Corp., which manages $162 billion. ``Unless we really thought the banks were going under, there's an awful lot of bad news that is already priced into the shares.''
Banks also advanced as borrowing costs declined after cash injections by the central banks showed signs of easing the paralysis among lenders. The London interbank offered rate, or Libor, that banks charge each other for three-month loans in dollars fell 4 basis points to 3.47 percent today, according to the British Bankers' Association. It was the 12th straight drop for the rate.
Treasury's `TARP'
The Treasury is buying equity stakes in banks as a way to inject capital into the struggling financial system. Nine of the nation's biggest banks may receive $125 billion from the $700 billion Troubled Asset Relief Program as soon as this week, and a growing number of regional lenders have announced preliminary approval to take part in the program.
The Treasury also will use the TARP to acquire illiquid mortgage-related assets from a range of financial institutions to make more room on their balance sheet. This effort is moving more slowly as the Treasury selects asset managers to run the debt- buying effort.
Japan's Nikkei 225 Stock Average today rallied from a 26- year low to gain 6.4 percent, while Hong Kong's Hang Seng Index recouped yesterday's 13 percent plunge. The MSCI Asia Pacific Index added 3.4 percent, while Europe's Dow Jones Stoxx 600 Index climbed 2.3 percent.
To contact the reporters for this story: Lynn Thomasson in New York at lthomasson@bloomberg.net; Eric Martin in New York at emartin21@bloomberg.net.
The wider Standard & Poor's 500 index also increased 2.5 percent, whereas the technology-dominated Nasdaq composite index surged 3.1 percent. Depositors exited government bonds and back into stocks as it turned out that the slowing economy will limit demand for fuel and, sequentially, energy costs.
By Lynn Thomasson and Eric Martin
Oct. 28 (Bloomberg)- Stocks rallied and the Dow Jones Industrial Average posted its second-best point gain as the cheapest valuations in 23 years lured investors and increased commercial paper sales signaled credit markets are thawing.
Alcoa Inc. jumped 19 percent, leading the Dow to an almost 900-point advance, after the shares slid to their lowest price- to-earnings ratio on record. General Electric Co., the largest issuer of commercial paper, soared 9.9 percent after sales of longer-term debt grew 10-fold yesterday as the Federal Reserve entered the market for corporate IOUs. Citigroup Inc. and Bank of America Corp. rose more than 12 percent as traders boosted bets the Fed will cut interest rates tomorrow.
The Standard & Poor's 500 Index gained 91.59 points, or 11 percent, to 940.51 after sliding to the lowest level since March 2003 yesterday. The Dow climbed 889.35 points, or 11 percent, to 9,065.12. Hong Kong's benchmark index added 14 percent, its best advance in 11 years, while Germany's climbed 11 percent and Brazil's jumped 13 percent.
``The valuations are extremely compelling right now,'' said Dan Veru, who helps manage about $2 billion at Palisade Capital Management in Fort Lee, New Jersey. ``When you're in extreme oversold conditions, the market is prone to these types of wild swings. The key thing is, can we hold these gains?''
Valuation Watch
The S&P 500 was valued at 10.7 times estimated profit when trading opened today, the cheapest compared with the multiple using trailing profit since at least 1985. The index was also 25 percent below its average closing price over the last 50 days, a level reached only four previous times, spurring average gains of about 20 percent over the next six months.
The Dow's only larger point gain was on Oct. 13, when the 30-stock gauge jumped 936 points on the government's plan to buy stakes in banks.
More than nine stocks rose for each that fell on the New York Stock Exchange, where trading volume of 1.7 billion shares was 18 percent greater than the three-month daily average.
Equities around the world tumbled this month, wiping out more than $12 trillion of market value before today, after money markets froze, banks' credit losses climbed to almost $678 billion and economic growth weakened. The S&P 500, which dropped 3.2 percent yesterday, trimmed its monthly decline to 20 percent today.
Citigroup increased 14 percent to $13.41 and Bank of America rose 12 percent to $23.02. The S&P 500 Financials Index jumped 13 percent, the gauge's best advance since September.
Fed Bets
The Fed will announce its decision on interest rates tomorrow. Futures trading suggests a 38 percent chance the central bank will cut the benchmark rate by three-quarters of a percentage point, to 0.75 percent. By contrast, only one of 64 economists foresees that outcome, according to a Bloomberg survey. The rest of the Fed funds futures bets point to a half- point cut.
Alcoa added $1.74 to $10.78. The stock dropped 71 percent this year, leaving it valued at 4.86 times earnings as of yesterday, the cheapest on record.
``Anyone who has a long-term view and looks at earnings multiples and inflation will say it's a cheap moment to buy stocks,'' said Linda Duessel, equity market strategist at Pittsburgh-based Federated Investors Inc., which manages more than $333 billion.
Commercial Paper
GE rose $1.76, or 9.9 percent, to $19.49. The Fed started buying commercial paper yesterday, when companies sold 1,511 longer-term issues totaling a record $67.1 billion of debt due in more than 80 days, compared with a daily average of 340 issues valued at $6.7 billion last week, according to Fed data. The central bank probably absorbed about $60 billion of the total, said Adolfo Laurenti, a senior economist at Mesirow Financial Inc.
Exxon Mobil Corp. advanced $8.77, or 13 percent, to $74.86. Chevron Corp. climbed 13 percent to $70.02. Energy shares in the S&P 500 jumped 12 percent as a group.
Morgan Stanley boosted holdings of Exxon and AT&T Inc. in its U.S. model portfolio, citing the ``defensive'' qualities of the shares.
Exxon had its position doubled to 4 percent because the world's biggest energy company is likely to be ``a far better than average performer'' if some stability returns to the markets, according to analyst Douglas Cohen. AT&T's position was increased to 3 percent from 2 percent. Shares of the largest U.S. phone company rose 13 percent to $27.61.
Valero Energy Corp. jumped 11 percent to $16.81. The largest U.S. refiner posted a smaller decline in third-quarter earnings than analysts predicted after crude-oil costs retreated from an all-time high, easing a squeeze on profit margins.
GM Climbs
General Motors Corp. rose 15 percent to $6.25. Money may be available to U.S. automakers from the federal bailout fund, White House spokeswoman Dana Perino said. GM's Chief Executive Officer Rick Wagoner is pushing for federal aid as the company seeks to merge with Chrysler LLC, people close to the discussions said.
Discover Financial Services climbed 20 percent to $11.65. Visa Inc. and MasterCard Inc., the world's largest credit-card networks, agreed to pay Discover $2.75 billion to resolve a lawsuit settled earlier this month. Discover had accused MasterCard and Visa of blocking banks from issuing their cards.
Boeing Co. gained 15 percent to $48.91. Machinists for the second-largest planemaker plan to vote within five days on a proposed contract to end an eight-week strike.
Wal-Mart Stores Inc. increased 11 percent to $55.17. The world's largest retailer plans to increase international capital spending as it expands in China, Brazil and other emerging markets. The company is ``well positioned'' to meet demands of consumers around the world as the global economy slumps, Mike Duke, Wal-Mart's international chief, told analysts at a meeting.
Interpublic, Fidelity National
Interpublic Group of Cos. gained 35 percent to $5.54, the third-steepest gain in the S&P 500. The second-largest U.S. owner of advertising agencies reported a profit in the third quarter, weathering the economic slowdown through cost cuts and increased international sales.
Fidelity National Information Services Inc. increased 27 percent to $15.87. The payment processor forecast earnings, before certain items, of as much as 49 cents a share in the fourth quarter. Analysts, on average, anticipated 46 cents, according to a Bloomberg survey.
Morgan Stanley increased 11 percent to $15.20 and Goldman Sachs Group Inc. added 69 cents to $93.57. Morgan Stanley lost as much as 26 percent and Goldman fell as much as 11 percent during the day amid speculation a surge in Volkswagen AG shares may have saddled some banks with losses. Germany's financial-markets regulator is looking into trading of Volkswagen stock after Porsche SE's plan to raise its stake in the automaker triggered a fourfold increase in two days.
`Bottoming Process'
Morgan Stanley has ``virtually no exposure,'' to Volkswagen, spokesman Mark Lake said. Goldman Sachs has no significant losses tied to Volkswagen, CNBC reported, citing unidentified sources at the firm. Goldman spokesman Ed Canaday declined to comment.
``We're in the camp that believes a bottoming process is in place,'' said Leo Grohowski, chief investment officer for the wealth management unit of Bank of New York Mellon Corp., which manages $162 billion. ``Unless we really thought the banks were going under, there's an awful lot of bad news that is already priced into the shares.''
Banks also advanced as borrowing costs declined after cash injections by the central banks showed signs of easing the paralysis among lenders. The London interbank offered rate, or Libor, that banks charge each other for three-month loans in dollars fell 4 basis points to 3.47 percent today, according to the British Bankers' Association. It was the 12th straight drop for the rate.
Treasury's `TARP'
The Treasury is buying equity stakes in banks as a way to inject capital into the struggling financial system. Nine of the nation's biggest banks may receive $125 billion from the $700 billion Troubled Asset Relief Program as soon as this week, and a growing number of regional lenders have announced preliminary approval to take part in the program.
The Treasury also will use the TARP to acquire illiquid mortgage-related assets from a range of financial institutions to make more room on their balance sheet. This effort is moving more slowly as the Treasury selects asset managers to run the debt- buying effort.
Japan's Nikkei 225 Stock Average today rallied from a 26- year low to gain 6.4 percent, while Hong Kong's Hang Seng Index recouped yesterday's 13 percent plunge. The MSCI Asia Pacific Index added 3.4 percent, while Europe's Dow Jones Stoxx 600 Index climbed 2.3 percent.
To contact the reporters for this story: Lynn Thomasson in New York at lthomasson@bloomberg.net; Eric Martin in New York at emartin21@bloomberg.net.
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