LONDON, Oct 14, 2005 (AP Online via COMTEX) -- U.S. stock market futures edged higher Friday, with industrial bellwether General Electric posting third-quarter earnings that met expectations, and a flurry of economic data set to be released that could ratchet up inflation concerns. Dow Jones futures were recently up 16 points, S&P 500 futures rose 2 points and Nasdaq 100 futures were up 4.5 points.
General Electric said third-quarter profit rose 15 percent to $4.7 billion, or 44 cents a share, with revenue up 9 percent to $41.9 billion. The EPS figure was in line with analyst forecasts, and the revenue growth was better than expectations of an 8 percent rise. GE also said its 2005 buyback program will be worth $4 billion versus earlier plans for $3 billion in cash buybacks.
Economists polled by Dow Jones expect the consumer price index rose by 0.9 percent in September, the largest monthly gain in more than 15 years. The core rate, which excludes food and energy prices, likely remained contained, growing 0.2 percent.
The year-over-year increase in the CPI will probably jump from 3.6 percent in August to 4.4 percent in September, a 14-year high.
In a busy day for data, retail sales are seen rising 0.5 percent in September after a 2.1 percent fall in August, industrial production is seen contracting 0.3 percent after a 0.1 percent rise in August, and consumer sentiment is seen improving to an 80.4 reading from 76.9 in August.
Business inventories data also will be released.
The dollar made minor inroads on the euro and the yen.
Front-month crude recently fell 50 cents at $62.58 a barrel.
On Thursday, Dow industrials finished less than a point lower at 10,216, the S&P 500 fell 0.8 of a point at 1,176 while the Nasdaq Composite rose 9.8 points at 10,216.
Overseas, Britain's Hilton Group soared after it confirmed it's in talks to sell Hilton International hotels to Hilton Hotels Corp. for a reported $6.3 billion, while Samsung Electronics (005930.SE) reported a 30 percent decline in third-quarter profit on a provision to pay a fine for price fixing; outside of the fine, Samsung would have topped analyst forecasts.
In international indexes, Japan's Nikkei 225 slipped 0.2 percent and Britain's FTSE 100 eased 0.1 percent.
General Motors has signaled to the United Auto Workers union that an agreement to cut GM's $5.6 billion annual U.S. health-care bill must come within the next few days, or the company could act unilaterally to cut UAW health-care spending, The Wall Street Journal reported Friday. GM is expected by analysts to announce a third-quarter loss Monday, and people familiar with the company's plans say that the announcement could be accompanied by disclosure of more details of Chairman and Chief Executive Rick Wagoner's cost-cutting plans.
GM rival Ford Motor Co. was downgraded to sell at Citigroup, which also cut its price target to $7 from $10. Headwinds from pension issues and auto-parts supplier Visteon Corp. are likely to weigh on 2006 earnings. The broker told clients that a near-term catalyst could be dismal October auto sales, which would decimate the pricing environment in the fourth quarter and 2006. "We like Ford management's realistic approach to a difficult market, but it is likely too early to buy into a long-term turnaround story," Citigroup concluded.
Vintage Petroleum Inc. said late Thursday it has accepted a $3.8 billion cash and stock takeover offer from Occidental Petroleum Corp.
Societe Generale (13080.FR) said that it intends to pursue an initial public offering of its U.S. broker-dealer unit SG Cowen & Co. The company expects to file a registration statement with the Securities and Exchange Commission during the first quarter of 2006 and said it hopes to complete the IPO later in the year, subject to market conditions and regulatory approvals.
Lehman Brothers upgraded Continental Airlines Inc. to equal-weight from underweight, saying it believes industry fundamentals are improving as domestic carriers finally begin to cut down capacity. The broker told clients that Continental will surely benefit from an improving domestic pricing environment in 2006.
Citigroup upgraded eyecare company Bausch & Lomb Inc. to buy from hold, saying the recent weakness in the shares has created a good entry point. The broker told clients that while the third quarter may show some top line softness, clinical feedback suggests that the business is likely to grow ahead of management's conservative expectations over the next two years.
J.P. Morgan upgraded express mail services provider United Parcel Service Inc. to overweight from neutral, saying it believes the company is poised for renewed momentum. The broker told clients that it sees multiple potential drivers of growth including international parcel, supply chain services and acquisitions. J.P. Morgan also said that the domestic market is stabilizing.
Copyright 2005 Associated Press, All rights reserved
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