US stocks showed some strength in the last hour of today’s session on news that housing starts jumped to a four-year high. But a disappointing outlook from Intel (INTC) and lower than expected earnings from IBM (IBM) dampened hopes for a major rally.
Xerox (XRX) had its estimates and price target increased by BMO (BMO) as the company has been buying back stock and controlling expenses. A market perform rating was issued.
The Commerce Department announced on Wednesday that housing starts increased by 15 percent during September to a seasonally adjusted 872,000 units, beating analyst estimates. The new numbers represent the fastest pace of groundbreaking since the summer of 2008.
Intel (INTC) announced that it expects fourth-quarter revenue of $13.6 billion, plus or minus $500 million, below forecasts of $13.74 billion. The company also expects fourth-quarter gross margins of 57 percent to 58 percent on a non-GAAP basis, below average expected gross margins of about 62 percent.
Dun & Bradstreet Corporation (DNB) maintained its quarterly dividend of 38 cents per share. This quarterly cash dividend is payable on December 13, 2012, to shareholders of record at the close of business on November 28, 2012.
ADT (ADT) was rated a new outperform by Credit Suisse (CS) with a price target of $45, as the company offers long term value with a very low cost of capital. Shares are higher by about 1.6 percent.
In trading on Wednesday, general contractors & builders shares were relative leaders, up on the day by about 3.9%. Leading the group were shares of Pultegroup (PHM), up about 6.2% and shares of KB Home (KBH) up about 6% on the day.
PepsiCo (PEP) announced quarterly earnings were higher than expected, even though revenue was lower. The company earned $1.9 billion, or $1.21 per share, down from $2 billion, or $1.25 per share, in the same period last year.
Jed Kolko, the chief economist at Trulia says Mitt Romney’s proposal to cap itemized deductions will have an impact on the middle class, many of whom rely on mortgage interest deductions to offset taxes.
An AP fact check found both President Obama and Republican challenger Mitt Romney didn’t paint a complete picture, when discussing taxes and spending.
