Stocks rally after companies profits beat estimates

US  stocks  rallied  as  earnings  from  Caterpillar  (CAT)  Inc.  to  3M  Co. exceeded  analysts’  estimates  and  data  signaled  stronger  growth  in  the European  economy.  The  S&P  500  gained  1.2%  to  1,950.82.  The  Dow increased 216.58 points (1.3%) to 16,677.9.

Leading indicators index shows US economy to keep growing

The index of US leading indicators accelerated in September, signaling the world’s  largest  economy  will  keep  expanding  into  2015.  The  Conference Board’s  gauge  of  the  outlook  for  the  next  3-6  months  climbed  0.8%  (no change in August). The median forecast surveyed by Bloomberg called for a rise of 0.7%.

Jobless claims in US at 14-year low over past month

Figures from the Labor Department showed fewer workers filed claims for jobless benefits over the past month than at any time since May 2000. The jobless  claims  report  showed  the  four-week  average  of  applications dropped to 281,000, the lowest since May  2000, from 284,000 the  week before.  The  reading  for  the  week  ended  Oct.  18  climbed  by  17,000  to 283,000, in line with the median forecast surveyed by Bloomberg.

US home prices beat estimates with 0.5% gain in August

US  home  prices  rose  more  than  economists  estimated  in  August  as employment  growth  fueled  demand  for  housing.  Prices  climbed  0.5%  in August  on  a  seasonally  adjusted  basis  from  July,  the  Federal  Housing Finance Agency said, higher than Bloomberg’s forecast of 0.3% increase.

Euro-area manufacturing grows as risk of recession eases

The  euro-area  economy  may  have  moved  one  step  away  from  another recession.  A Purchasing Managers’ Index  (PMI)  showed manufacturing in the region unexpectedly grew this month. In Germany, factories rebounded from  a  slump  in  September.  PMI  reports  also  highlighted  weak  spots  as manufacturing demand fell and French factories continued to struggle. The euro-region  factory  PMI  rose  to  50.7  in  October  from  50.3,  Markit  said. Economists surveyed by Bloomberg predicted a drop to 49.9.

Spanish unemployment lowest since 2011 as economy grows

Spain’s unemployment rate fell to the lowest since the end of 2011 in the third quarter as its economy turned into one of the fastest-growing in the euro  region.  Joblessness  fell  to  23.7%  in  3Q14  from  24.5%  in  2Q14, Spain’s  national  statistics  institute  INE  said.  Survey  by  Bloomberg  News forecasts a decline in joblessness to 24.1% in 3Q14.

Philippines keeps interest rate at 4% as inflation eases

The  Philippine  central  bank  held  its  benchmark  interest  rate,  pausing  its monetary  tightening cycle as inflation pressure eased.  Bangko Sentral ng Pilipinas kept the overnight borrowing rate at 4%,  as predicted by 15 of 20 economists  in  a  Bloomberg  News  survey.  The  remainder  forecast  an increase  to  4.25%.  Policy  makers  also  held  the  rate  on  special  deposit accounts and the reserve requirement ratio.

Oil futures climb after Saudi Arabia supply said to fall

Brent gained the most in four months and WTI  rebounded from a two-year low  after  market  supplies from  Saudi  Arabia  were  said to  have  dropped. Brent for December settlement rose US$2.12 (2.5%) to US$86.83 a barrel.

Source: Bloomberg