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^FINANCIAL MARKETS
Solid earnings send stocks higher
NEW YORK (AP) — Stocks have been wavering between small gains and losses on Wall Street as solid profit and forecasts from several technology companies offset a mixed batch of earnings from the rest of the market.
Technology stocks did the most to pull the market higher, while a smattering of retailers helped inject more confidence into the market.
On the down side, health care stocks fared the worst, and Twitter plunged on weak financial results, pushing communication companies lower
^UNITED STATES-CHINA
Pence takes swipe at NBA and Nike in speech on China
WASHINGTON (AP) — Vice President Mike Pence took a swipe at Nike and the NBA in a speech criticizing China's record on trade and human rights.
Pence singled out the shoe company for removing Houston Rockets merchandise from stores in China after the team's general manager angered the Chinese government with a tweet supporting protesters in Hong Kong.
He said the NBA was acting like a "wholly owned subsidiary of the authoritarian regime" for failing to stand up to the government's criticism of Rockets General Manager Daryl Morey.
Pence spoke Thursday at the Wilson Center in Washington as the Trump administration and the Chinese government try to negotiate a trade deal.
He sounded an alarm about China's influence campaigns and its crackdown on free speech and other rights in Hong Kong.
^CALIFORNIA WILDFIRES-BLACKOUT
Northern California wildfire still growing
GEYSERVILLE, Calif. (AP) — A fire burning in Northern California's wine county is still growing.
But California Forestry and Fire Protection says winds that gusted as high as 70 miles per hour overnight have eased slightly since dawn on Thursday. That could help firefighters.
Officials ordered hundreds of people to immediately evacuate the town of Geyserville as the fire raged.
It's not clear whether the area was also affected by the Pacific Gas & Electric Co. utility's pre-emptive power shutoffs put in place to prevent the company's equipment from sparking fires.
Meanwhile, Southern California Edison has cut power to more than 15,000 customers as gusty Santa Ana winds sweep the region. The utility is also considering additional power cuts to more than 286,000 customers to prevent wildfires ignited by downed lines or branches blown into them.
^DURABLE GOODS
US durable goods orders fall 1.1% in September
WASHINGTON (AP) — Orders to U.S. factories for big-ticket manufactured goods tumbled in September by the largest amount in four months while a closely watched category that tracks business investment fell for a second month.
The declines underscored the troubles manufacturing is having in the face of a global slowdown and trade war uncertainty.
The Commerce Department said Thursday that orders for durable goods dropped 1.1% in September, the biggest setback since a 2.3% decline in May. Orders in a category that serves as a proxy for business investment spending dipped 0.5% following a 0.6% decline in July.
Many economists say growth would have slowed even more without two interest rate cuts from the Federal Reserve. The Fed meets again next week and financial markets are looking for a third quarter-point rate reduction as insurance against a possible recession.
^NEW HOME SALES
US new homes sales fell 0.7% in September
WASHINGTON (AP) — U.S. new home sales fell slightly in September with all regions of the country except the Midwest showing declines.
The Commerce Department says sales of new homes fell 0.7% last month following a big 6.2% surge in sales in August. Homes were sold at a seasonally adjusted annual rate of 701,000, 15.5% higher than a year ago.
Many economists had expected sales to keep rising in September, reflecting declining mortgage rates and ultra-low unemployment.
However, the housing industry is combating a variety of factors that are holding back growth ranging from a shortage of construction workers to a lack of available land for new homes.
The median price of a new home fell 7.9% last month to $299,400, down from an August price of $325,200.
^MORTGAGE RATES
US mortgage rates rise to 3-month high
WASHINGTON (AP) — U.S. long-term mortgage rates rose slightly this week to their highest point in 12 weeks, though they remain far below their levels of a year ago.
Mortgage giant Freddie Mac said Thursday that the average rate for a 30-year fixed mortgage rose to 3.75% from 3.69%the previous week. That's down from 4.9% at the same time last year and by historic standards is very low.
Lower rates have helped reinvigorate the housing market, which stumbled last year. Sales of existing homes reached a 17-month high in August, though they fell modestly in September. New home sales jumped 15.5% in September from a year earlier. Single-family home construction has also ticked up.
The average rate on a 15-year mortgage moved up to 3.18% from 3.15% a week ago.
^TWITTER-RESULTS
Weak profit, revenue, overshadow Twitter user growth
SAN FRANCISCO (AP) — Disappointing third-quarter profit and revenue numbers at Twitter are overshadowing surprisingly strong user growth, sending shares of the social media company plummeting 20% before the opening bell.
The San Francisco company also lowered its outlook for the fourth-quarter and the year.
Net income was $37 million in the quarter, compared with adjusted net income of $106 million in the same period last year. On an earnings per share basis, the company had net income of five cents, compared with 14 cents for the same period last year. Analysts were expecting closer to 20 cents per share.
^EARNS-AIRLINES
Grounded Boeing plane churns up more turbulence at airlines
DALLAS (AP) — American and Southwest say damage from the grounding of their Boeing 737 Max jets is piling up.
The CEOs of both airlines say they are talking to Boeing about compensation for damages running into the hundreds of millions — and counting.
Southwest has had an all-Boeing fleet since it began flying 48 years ago, but that could change. CEO Gary Kelly says the Southwest board has directed him to study whether the airline should start buying planes from other aircraft makers, which would almost certainly be Boeing's European rival, Airbus.
American Airlines Chairman and CEO Doug Parker says he is in early talks over compensation from Boeing over the 737 Max. American says the loss of the planes has cost it $540 million in pretax income so far.
^EUROPE-ECONOMY
Draghi says his legacy not dented by criticism
FRANKFURT, Germany (AP) — As he winds up his eight-year term, European Central Bank President Mario Draghi says his legacy isn't dented by the unusual public criticism by some ECB officials of a key part the bank's last stimulus package.
Draghi said Thursday that criticism of the decision to purchase bonds with newly printed money was "part and parcel of the ongoing debate." He said "we have discussions, everybody has discussions."
Draghi spoke at his last news conference before former International Monetary Fund head Christine Lagarde takes over Nov. 1.
The bank left interest rates unchanged at Thursday's meeting, following announcement of a comprehensive stimulus package Sept. 12.
^SUBARU RECALLS
Subaru recalls cars, SUVs for engine control, debris trouble
DETROIT (AP) — Subaru is recalling over 400,000 vehicles in the U.S. to fix problems with engine computers and debris that can fall into motors.
The first recall covers 466,000 Imprezas from 2017 through 2019, and 2018 and 2019 Crosstreks. Subaru says the engine computer can keep powering the ignition coil after motors are shut off. That could cause a short circuit and blown fuse.
Dealers will update software and replace coils and front exhaust pipes if needed.
The second covers 205,000 Imprezas from 2017 through 2019 and 2018 Crosstreks. The aluminum positive crankcase ventilation valves can fall apart. Debris can enter the engine and cause power loss.
Dealers will replace valves if needed. If a valve has separated and parts can't be found, engines will be replaced.
Both recalls start Dec. 13.
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