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Oct 30, 2014

Wall Street at Close Report on October 30, 2014: Dow rings up eighth triple-digit gain in October | MarketWatch.


Dow rings up eighth triple-digit gain in October


Markets reporter

NEW YORK MarketWatch) — The Dow Jones Industrial Average vaulted higher on Thursday trading, dragging the other major U.S. benchmarks higher as well.
The Dow industrials staged a rally of more than 200 points, after starting the session modestly higher. The rally marked the blue-chip indexes eighth straight triple-digit gain in an October that was frightful, at times.
Much of the Dow’s gains can be credited to Visa Inc., Merck & Co. But rosy economic data, pointing to stronger-than-expected growth also factored.
TBroader benchmarks also recorded modest gains, a day after the Federal Reserve officially announced the conclusion of its bond-purchasing initiative.
Confirming the Fed’s optimistic view on the economy, the first reading of third-quarter GDP came in better than expected, expanding at a 3.5% annualized rate. Weekly jobless claims ticked up. However, claims remain below the 300,000, pointing to an improving labor market.
Dow Jones Industrial Average DJIA, +1.30%  rallied 221.11 points, or 1.3%, to 17,195.42. The top two winners on the index, Visa Inc and Merck & Co, contributed 141 and 71 points, respectively, while more than two-thirds of its components finished higher.
The S&P 500 index SPX, +0.62%  closed 12.35 points, or 0.6%, to 1,994.65, after flirting with the 2,000 level at session highs.
The Nasdaq Composite COMP, +0.37%  added 16.91 points, or 0.4%, to 4,566.14. The Russell 2000 index gained 9.42 points, or 0.8%, to 1,155.79.
More volatility coming? Jim Reid, strategist at Deutsche Bank, said the surprise was that the Fed chose to be so confident so soon after the recent volatility. “Last night’s statement would have been near impossible to publish two weeks ago, so it is a bit of a risk,” he said in a note. Four reasons the market will rally for the rest of 2014
“At a minimum, the Fed seem quite comfortable withdrawing liquidity from the market, and with that, we continue to think that bouts of volatility are more likely now than they were for most of the two years that QE3 was in existence,” said Reid. Economists reactions to Fed statement: Signs of hawkishness
Visa Inc. V, +10.24%  rose 10% after the company’s earnings and revenue beat forecasts. It’s rival MasterCard Inc. MA, +9.40%  also rallied 9.4% after beating analysts’ forecasts for third-quarter profits and sales.
Avon Products Inc. AVP, -9.03%  dropped 9% as weak foreign exchange rates and higher supply chain costs weighed on results, which topped Wall Street profit estimates.
Lakeland Industries Inc. LAKE, +22.97%  soared 23%, following a big jump in late trade on Wednesday, after the hazmat-suit maker reported increased manufacturing capacity in response to the Ebola crisis.
GoPro Inc. GPRO, +0.53% GPRO, +0.53% shares rose more than 6% in the extended session Thursday after the mobile sports-camera maker’s third-quarter results topped Wall Street expectations.and LinkedIn LNKD, +1.70%  results topped forecasts, but outlook fell short of expectations. Shares still rose 2% aftermarket. Read more about the day’s notable stocks in Movers & Shakers column.
Dollar up, gold slides: The dollar rose against the euro EURUSD, +0.02%  and the yen USDJPY, +0.01%  — briefly tapping its highest levels since early October against the Japanese currency — as investors absorbed the Fed outcome. Gold GCZ4, -2.11%  slid 2.2%, while crude-oil prices CLZ4, -1.44%  were off more than 1%.
European stocks SXXP, +0.59% SXXP, +0.59%  pulled back, while Asian stocks saw mostly moderate gains, outside of a 0.4% drop for Hong Kong’s Hang Seng Index HSI, -0.49%

CMI Spot Prices as of Close of Trading in New York - October 30, 2014.

Spot Prices as of close of trading in New York

Thursday, October 30, 2014


Today Change Week Ago Month Ago Year Ago
$1,198.35 -$26.30 $1,229.45 $1,211.65 $1,324.25


Today Change Week Ago Month Ago Year Ago
$16.45 -$0.83 $17.18 $17.09 $21.88


Today Change Week Ago Month Ago Year Ago
$1,247.30 -$23.60 $1,257.50 $1,302.30 $1,451.20


Today Change Week Ago Month Ago Year Ago
$783.60 -$17.90 $781.90 $775.10 $738.80

Gold/Silver Ratio


Evening Euro Markets Bulletin - October 30, 2014.

ADVFN Evening Euro Markets Bulletin
Daily world financial news Thursday, 30 October 2014

London Market Report
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London close: FTSE ends session with modest gains
The top tier closed slightly higher on Thursday, as a strong performance by Smith & Nephew was offset by losses amongst the mining sector.
The FTSE 100 ended the day 9.68 points higher than on the previous day at 6,463.55.

Investors were paying attention to what analysts called an "artificially high" gross domestic product (GDP) reading for the US, which rose at an annualised clip of 3.5% in the third quarter, exceeding consensus estimates for a rise of 3.0% rise.

"The market has made a rapid recovery as the US growth figure isn't as impressive as initially thought," said IG market analyst David Madden.

"When the 3.5% US GDP figure flashed on the screens it was traders' worst nightmare! Dealers feared a rate rise must be around the corner but after closer inspection the jump in growth was largely down to Washington's spending on defence.

"After nearly six years of quantitative easing from the US, traders still have the attitude that bad news is good news; old habits die hard."

Meanwhile, figures published by the Labor Department showed that the number of Americans who applied for new unemployment benefits in October remained below the 300,000 level for the seventh consecutive week.

In the week ended 25 October, initial jobless claims rose by 3,000 to 287,000, "more or less" in-line with consensus expectations of 285,000, while claims for the previous week were revised to 284,000, as the four-week moving average remained at 281,000, its lowest level since 2000.

Smith & Nephew rises after first quarter results

Medical devices maker Smith & Nephew rose strongly after it posted a 3% increase in both revenue and profit for the third quarter, thanks to an improvement in its emerging and international markets units, recent product launches and investment in the sales force. On an underlying basis, turnover climbed from $1,027m to $1,148m, thanks to its Sports Medicine and Trauma & Extremities divisions, which benefited from recent product launches and investment in the US sales force.

Wealth manager St James's Place was another stand-out performer, rising strongly after seeing impressive inflows in its third quarter, helped by a big increase in demand for new ISA investments. Funds under management reached a record £49.1bn by 30 September, up 17% on the year before.

Mondi was also higher thanks to the news Moody's Investors Service has upgraded the group's credit rating to Baa2 from Baa3. Chief executive Andrew King said it was "further testament to the robustness of the group's business model and the ability of the business to generate strong cash-flows through the business cycle".

Meanwhile, shares in Standard Chartered fell for a fourth day amid reports US prosecutors have re-opened their investigations into whether the lender withheld information into the possible violation of the sanctions regime imposed on Iran.

Mining groups dropped in the face of falling metal prices, with gold at a three-week low and copper pulling back from a six-week high. Fresnillo, Randgold, Anglo American, Glencore and Antofagasta were among the worst performers.

Tullow Oil was knocked lower by Deutsche Bank, which cut its target from 790p to 650p.

FTC Enforcement Actions October : FTC Charges Gerber with Falsely Advertising Its Good Start Gentle Formula Protects Infants from Developing Allergies

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The Federal Trade Commission has charged Gerber Products Co., also doing business as Nestlé Nutrition, with deceptively advertising that feeding its Good Start Gentle formula to infants with a family history of allergies prevents or reduces the risk that they will develop allergies.
The agency also alleges that Gerber has falsely advertised Good Start Gentle’s health claims as FDA-approved. Through its federal court enforcement action, the Commission is seeking to prohibit Gerber from making the alleged false and unsubstantiated allergy-prevention claims.
“Parents trusted Gerber to tell the truth about the health benefits of its formula, and the company’s ads failed to live up to that trust,” said Jessica Rich, Director of the FTC’s Bureau of Consumer Protection. “Gerber didn’t have evidence to back up its claim that Good Start Gentle formula reduces the risk of babies developing their parents’ allergies.”
In its complaint, the FTC alleges that since 2011, Gerber has advertised its Good Start Gentle formula through advertisements that ran on television, in magazines, at point-of-sale displays, online, and in other promotional material. Good Start Gentle sells for about $24 for a 23.2-ounce package of powdered formula.
Good Start Gentle is made with partially hydrolyzed whey proteins (PHWP). Gerber claims that feeding babies this formula, instead of formula made with intact cow’s milk proteins, will prevent or reduce the risk that they will develop allergies. In its ads, Gerber promotes Good Start Gentle by saying, for example:
  • “You want your baby to have your imagination…Your smile…Your eyes…Not your allergies.”
Also, a sticker on the package states that Good Start Gentle Formula is the:
The agency’s complaint charges that Gerber lacked the scientific substantiation to make these general allergy-prevention claims, in violation of the FTC Act.
In addition, according to the FTC, Gerber’s ads also misrepresent that Good Start Gentle has qualified or received approval for a Food and Drug Administration health claim. For example, some ads prominently featured a gold badge stating that Good Start Gentle is the “1st and Only” formula that “Meets FDA Qualified Health Claim.”
In 2009, Gerber petitioned the FDA for permission to make a claim connecting PWHP with the reduced risk of one type of allergy, atopic dermatitis, in infants. The FDA allowed Gerber to make the narrow claim but only if Gerber carefully qualified its statement to make it clear that there is “little scientific evidence” for the relationship.
The Commission vote authorizing staff to file the federal court complaint was 5-0. The complaint was filed in the U.S. District Court for the District of New Jersey on October 29, 2014.
NOTE: The Commission files a complaint when it has “reason to believe” that the law has been or is being violated and it appears to the Commission that a proceeding is in the public interest. The case will be decided by the court.
The Federal Trade Commission works for consumers to prevent fraudulent, deceptive, and unfair business practices and to provide information to help spot, stop, and avoid them. To file a complaint in English or Spanish, visit the FTC’s online Complaint Assistant or call 1-877-FTC-HELP (1-877-382-4357). The FTC enters complaints into Consumer Sentinel, a secure, online database available to more than 2,000 civil and criminal law enforcement agencies in the U.S. and abroad. The FTC’s website provides free information on a variety of consumer topics. Like the FTC on Facebook, follow us on Twitter, and subscribe to press releases for the latest FTC news and resources.
MEDIA CONTACT: Mitchell J. Katz
Office of Public Affairs

Ella Krainsky
Bureau of Consumer Protection

Michelle Rusk
Bureau of Consumer Protection

Victor DeFrancis
Bureau of Consumer Protection

Related Cases

FTC Business Center Blog Update - October 30, 2014: FTC challenges Gerber baby formula claims in court.

Federal Trade Commission - Business Center Blog Update

By Lesley Fair

Parents want to make the best choices for their babies’ health. But between diaper changes and 2 AM feedings, they aren’t in a position to spend much time surveying the scientific literature for ways to reduce the chance their kid will develop the allergies they suffer from. So when Gerber (also doing business as Nestle Nutrition) advertised Good Start Gentle baby formula as a way to “reduce the risk of developing allergies” – and featured a gold seal on products suggesting FDA approval – it’s understandable that parents would take note. But according to a lawsuit filed by the FTC, the company's allergy reduction and FDA approval representations were misleading.

Read more

Bloomberg View | Share The View - October 30, 2014: Road to Republican Success.

Bloomberg View
Share The View
The Latest Opinions From Bloomberg View

October 30, 2014

Eli Lake and Josh Rogin join Bloomberg View as columnists covering national security and international affairs. Read more...

Midterm Elections
The Editors: "Dig, if you will, a picture: Republicans, basking next month in the glow of victory, draw up a few broadly reasonable civic goals for the new Congress and agree to achieve them without doing anything dumb." Read more...
Francis Wilkinson: "On the verge of victory in the midterm elections, the Republican Party looks no less shaky than it did on the verge of defeat in 2012." 

European Markets at Close Report - October 30, 2014: Europe Stocks Climb After U.S. GDP Growth Beats Forecasts | Bloomberg.


Europe Stocks Climb After U.S. GDP Growth Beats Forecasts

Oct 30, 2014

European stocks advanced, reversing earlier losses, as a report showed the U.S. economy expanded in the third quarter more than forecast.

The Stoxx Europe 600 Index added 0.5 percent to 330.49 at 4:30 p.m. in London, reversing losses of as much as 1.1 percent. Shares tumbled earlier as a measure of lenders slid after European Banking Authority Chairman Andrea Enria said balance-sheet reviews and last week’s stress tests aren’t foolproof and more may need to be done. Greece’s ASE Index slid 2.8 percent and Portugal’s PSI 20 Index lost 1.4 percent.

“Some market participants believe that the end of QE might derail the equity market, but we don’t think so,” said Christoph Riniker, head of strategy research at Julius Baer Group Ltd. in Zurich, referring to quantitative easing, the bond-buying program that the Federal Reserve is ending. “The step is widely known and therefore already priced into equities. Investors are focusing more on factors like the solid macro environment in the U.S.”

Commerce Department figures showed U.S. gross domestic product grew at a 3.5 percent annualized pace in the three months ended September after a 4.6 percent gain in the second quarter. Economists had forecast growth of 3 percent.
The Stoxx 600 climbed as much as 0.8 percent this morning before erasing gains. It briefly trimmed losses after a report that euro-area economic sentiment improved this month and later extended declines after data showed German inflation unexpectedly slowed.

Stocks Drop

European shares have fallen 5.3 percent since a September high as concern increased that European Central Bank stimulus measures won’t be enough to spur growth, while China’s economy is slowing just as the Fed ends its bond-buying program. The U.S. central bank’s officials kept a commitment to hold interest rates low for a considerable time.
Renault SA advanced 3.2 percent to 57.34 euros. Europe’s third-largest carmaker said late yesterday that revenue rose to 8.53 billion euros ($10.75 billion). That beat the 8.19 billion-euro average of analyst estimates. Volkswagen AG, the region’s biggest automaker, climbed 2.1 percent to 165.55 euros after reporting quarterly profit that beat analyst predictions.
Barclays Plc added 1.2 percent to 223.2 pence. Quarterly earnings increased even as the bank set aside 500 million pounds ($799 million) to settle probes into currency markets. Adjusted pretax profit rose to 1.59 billion pounds from 1.39 billion pounds a year earlier, beating analyst estimates.
Bayer AG climbed 2.5 percent to 109.70 euros. Germany’s largest drugmaker reported third-quarter earnings before interest, taxes, depreciation and amortization excluding certain items of 2.01 billion euros, topping analyst calls for 1.95 billion euros. Bayer also raised its forecast for the year.

Banks Decline

Banks in Europe’s periphery fell after Enria said the results of the health check, announced Oct. 26, show that lenders still have a lot of work to do to ensure capital adequacy. He also said the asset-quality review and stress tests won’t lead to an immediate boost in lending.
Banco Bilbao Vizcaya Argentaria SA retreated 1.7 percent to 8.67 euros. Italy’s Banca Monte dei Paschi di Siena SpA slipped 7.6 percent to 67.5 euro cents, the lowest price since at least 1999. National Bank of Greece SA slid 5.5 percent to 1.89 euros.
Linde AG fell 2.7 percent to 151.10 euros after the world’s largest industrial-gases company said it will miss full-year and 2016 profit goals. Operating profit will be at a similar level to 2013, with a 10 percent return on capital employed. Linde had previously forecast a “moderate” improvement in operating profit.

To contact the reporter on this story: Inyoung Hwang in London at

To contact the editors responsible for this story: Cecile Vannucci at Alan Soughley, Srinivasan Sivabalan

SEC and FINRA Warn Investors About Penny Stock Scams Hyping Dormant Shell Companies: SEC Warnings - October 30, 2014

 SEC Seal
10/30/2014 11:00 AM EDT

The Securities and Exchange Commission’s Office of Investor Education and Advocacy and the Financial Industry Regulatory Authority (FINRA) today issued an alert warning investors that some penny stocks being aggressively promoted as great investment opportunities may in fact be stocks of dormant shell companies with little to no business operations.
The investor alert provides tips to avoid pump-and-dump schemes in which fraudsters deliberately buy shares of very low-priced, thinly traded stocks and then spread false or misleading information to pump up the price.  The fraudsters then dump their shares, causing the prices to drop and leaving investors with worthless or nearly worthless shares of stock.
“Fraudsters continue to try to use dormant shell company scams to manipulate stock prices to the detriment of everyday investors,” said Lori J. Schock, Director of the SEC’s Office of Investor Education and Advocacy.  “Before investing in any company, investors should always remember to check out the company thoroughly.”
Gerri Walsh, FINRA’s Senior Vice President for Investor Education, said, “Investors should be on the lookout for press releases, tweets or posts aggressively promoting companies poised for explosive growth because of their ‘hot’ new product.  In reality, the company may be a shell, and the people behind the touts may be pump-and-dump scammers looking to lighten your wallet.”
The investor alert highlights five tips to help investors avoid scams involving dormant shell companies:
  • Research whether the company has been dormant – and brought back to life.  You can search the company name or trading symbol in the SEC’s EDGAR database to see when the company may have last filed periodic reports. 
  • Know where the stock trades.  Most stock pump-and-dump schemes involve stocks that do not trade on The NASDAQ Stock Market, the New York Stock Exchange or other registered national securities exchanges.
  • Be wary of frequent changes to a company's name or business focus.  Name changes and the potential for manipulation often go hand in hand.
  • Check for mammoth reverse splits. A dormant shell company might carry out a 1-for-20,000 or even 1-for-50,000 reverse split. 
  • Know that "Q" is for caution.  A stock symbol with a fifth letter "Q" at the end denotes that the company has filed for bankruptcy.
For more information about how to avoid fraud, visit

Bits | The Business of Technology - October 30, 2014: MCX, an Apple Pay Rival, Says It Is Open to Other Technology.

Morning Report
Tim Cook, Apple's Chief, Says He Is 'Proud to Be Gay' | Timothy D. Cook, Apple's chief executive, said he was "proud to be gay" in an essay published early Thursday, becoming by far the most prominent executive of a public company to come out, Mike Isaac reports.

"Let me be clear: I'm proud to be gay, and I consider being gay among the greatest gifts God has given me," Mr. Cook wrote in the essay, published by Bloomberg Businessweek.

Mr. Cook, 53, has never spoken publicly about his sexual orientation in the many years he has worked in the spotlight at Apple.

In his essay, Mr. Cook also noted that he had spent much of his life trying to keep his personal matters private, which is why he had not previously spoken in public about his sexual orientation.

"Apple is already one of the most closely watched companies in the world," he wrote, "and I like keeping the focus on our products and the incredible things our customers achieve with them."

But in private forums, he has alluded to facing difficulties growing up as a young man in Alabama, where he was raised for much of his childhood. He has said that human rights and dignity are values that need to be acted upon. 

More From The Times
MCX, an Apple Pay Rival, Says It Is Open to Other Technology | A group of retailers known as the Merchant Customer Exchange said that it could yet decide to use the technology that Apple Pay relies on to process transactions.
Microsoft plans to begin selling the band through its website and retail stores starting Thursday.
With Microsoft Band and Health, a Jump Into the Growing Market for Wearable Technology | Microsoft is joining the companies who see wearables as a way into the wellness business without all the red tape that comes from being a true medical company. 

Koos Jansen: China's gold demand reaches 1,541 tonnes so far this year: GATA | THE GATA DISPATCH - October 30, 2014.

Koos Jansen: China's gold demand reaches 1,541 tonnes so far this year

Submitted by cpowell on  Thursday, October 30, 2014.   Thursday, October 30, 2014

China's gold demand has reached 1,541 tonnes so far this year, Bullion Star gold researcher and GATA consultant Koos Jansen reports today, adding that the new international exchange in Shanghai will be complicating demand calculations. Jansen's commentary is headlined "Chinese Gold Demand 1,541 Tonnes YTD" and it's posted at Bullion Star here:

CHRIS POWELL, Secretary/Treasurer
Gold Anti-Trust Action Committee Inc.

RTTNews Forex Market Update - October 30, 2014.

Economic News
Automobile production in Japan continued to decline in September, figures from the Japan Automobile Manufactures Association showed Thursday. (Oct 30, 2014) Full Article
Brazil's central bank unexpectedly raised its key rate by a quarter point citing high inflation outlook. (Oct 30, 2014) Full Article
The global economy is still struggling to regain cruising speed six years after the financial crisis started, the International Monetary Fund Chief Christine Lagarde said late Wednesday. (Oct 30, 2014) Full Article 
A measure of private consumption trends in Switzerland rose for the first time in four months during September, survey results from the UBS bank showed Thursday. The UBS consumption indicator climbed slightly to 1.41 points from August's 1.28 points, which was revised from 1.35 points. This stopped the downward trend of the last three months when it dropped to 1.28 from 2.07 points, the UBS said. (Oct 30, 2014) Full Article
The Spanish economy grew at a slightly slower pace in the third quarter, preliminary data from the statistical office INE showed Thursday. (Oct 30, 2014) Full Article
Austria's economy stagnated in the third quarter, due to a decline in investment, weak foreign trade and subdued private consumption, preliminary figures from the Austrian Institute of Economic Research/WIFO showed Thursday. (Oct 30, 2014) Full Article
First-time claims for U.S. unemployment benefits saw a modest increase in the week ended October 25th, according to a report released by the Labor Department on Thursday. (Oct 30, 2014) Full Article 
Forex Top Story
The Reserve Bank of New Zealand's monetary policy board on Thursday elected to hold its Official Cash Rate steady at 3.50 percent - in line with expectations. (Oct 30, 2014) Full Article
Industrial output in South Korea added a seasonally adjusted 0.1 percent on month in September, Statistics Korea said on Thursday - following the downwardly revised 3.9 percent decline in August (originally -3.8 percent). (Oct 30, 2014) Full Article
Export prices in Australia declined 3.9 percent on quarter in the third quarter of 2014, the Australian Bureau of Statistics said on Thursday. (Oct 30, 2014) Full Article
Economic confidence in the eurozone picked up in October from a 10-month low, with broad based improvement across sectors, the results of a survey by the European Commission showed Thursday. The economic confidence index rose unexpectedly to 100.7 in October from 99.9 in the prior month. The score was expected to fall to 99.7. (Oct 30, 2014) Full Article
U.S. economic activity increased by more than expected in the third quarter of 2014, according to a report released by the Commerce Department on Thursday. (Oct 30, 2014) Full Article
Germany's unemployment declined unexpectedly in October, suggesting an improvement in the labor market conditions despite weak economic developments. The number of people out of work decreased by 22,000 to 2.887 million in October, data from the Federal Labor Agency revealed Thursday. Economists had forecast an increase of 4,000. (Oct 30, 2014) Full Article
Crude oil prices tumbled Thursday morning, after official data showed oil production to have risen to nearly 9 million barrels a day, the most in over three decades. (Oct 30, 2014) Full Article
Gold prices slipped to a three-week low Thursday morning, as the Federal Reserve ended its asset buying program and signaled a possible interest rate hike ahead of market forecasts. (Oct 30, 2014) Full Article
Political News
Israel has faced strong criticism at the UN Security Council over its recently announced plans to expand Israeli settlement in occupied East Jerusalem. (Oct 30, 2014) Full Article
European Commission President Jose Barroso has said that an agreement on gas price and supply dispute between Russia and Ukraine was within reach on the basis of the proposals put forward by the Commission. (Oct 30, 2014) Full Article
Lawless militias and armed groups on all sides of the conflict in western Libya are carrying out rampant human rights abuses, including war crimes, according to a new briefing from Amnesty International. (Oct 30, 2014) Full Article
The European Commission has adopted Partnership Agreements with three Member States setting down the strategy for the optimal use of European Structural and Investment Funds throughout the country. (Oct 30, 2014) Full Article
A California judge has dismissed a lawsuit from former Panamanian leader Manuel Noreiga, claiming that the Call of Duty video game damaged his reputation. (Oct 30, 2014) Full Article
General News
NASA's Wallops Incident Response Team on Wednesday completed an initial assessment of Wallops Island, Virginia, where an unmanned supply rocket bound for the International Space Station exploded immediately after its launch. (Oct 30, 2014) Full Article 
Orbital Sciences Corporation has named Dave Steffy as the permanent chairman of a permanent Accident Investigation Board (AIB) that probes the launch failure of its supply rocket bound for International Space Station. (Oct 30, 2014) Full Article
A team of US Air Force medical trainers has arrived in Liberian capital Monrovia to train non-U.S. medical personnel in the fight against Ebola. (Oct 30, 2014) Full Article Forward