Global Investing Roundups

Countrywide Deal Closes; Expanding Manufacturing; Conduct Trouble at Moody's; Hong Kong Holiday; Construction Spending Down for 11th Straight Month; Constellation Toasts to Profit; AT&T Drops iPhone Contract; BP Employees Ridden Out of Russia

  • The Institute for Supply Management's index of manufacturing activity had a 0.6 gain to 50.2 in June, the first measurement since January that showed the manufacturing sector was expanding. "While it may be too soon to say that manufacturing has begun to start growing again, it is possible that a bottom is being reached," Joel Naroff, president and chief economist of Naroff Economic Advisors, said in a note to clients yesterday (Tuesday).
  • Moody's Corp. (MCO) announced yesterday (Tuesday) that staff in its Moody's Investor Service unit, which assigns credit ratings to various types of investment vehicles, had breached certain rules in assigning ratings to European constant proportion debt obligations (CPDO), Bloomberg News reported. A computer glitch was initially responsible for assigning the highest rating to CPDO debt in May, however, certain staff did engage in "conduct contrary to Moody's code of professional conduct," the ratings company said.
  • Construction spending dropped 0.4% in May, the Commerce Department reported yesterday (Tuesday). It was the 11th decline in the past year, as a lack of demand in residential areas continued to offset relative strength elsewhere. Residential construction dropped 1.6% in May, the 25th decline out of the past 26 months, The Associated Press reported.
  • Constellation Brands Inc. (STZ) said yesterday (Tuesday) that its fiscal first-quarter profit jumped 50% boosted by strong sales of newer wine brands such as Clos du Bois and Wild Horse, The Associated Press reported. The results beat Wall Street expectations, and its shares rose nearly 6%.