Survey; U.S. began recession in April; Target 3Q Profit Down 24%; Merrill Lowers 2009 Brazil Growth to 2.9%; Hong Kong Officially in Recession; SEC Charges Cuban with Insider Trading; Lowe’s Revenue Climbs; October Industrial Output Rises
- The U.S. economy entered recession in April and will last a total of 14 months, according to a survey of economists by the Federal Reserve Bank of Philadelphia. The survey also predicted that non-farm payrolls would contract by 222,400 jobs during the fourth quarter, Reuters reported.
- Target Corp. (TGT) saw its profit drop by 24% in the third quarter, as fewer shoppers showed up at the retailer. Though slightly better than the average forecast, it marked the fifth consecutive drop in quarterly profit, Reuters reported.
- Merrill Lynch lowered its 2009 growth estimate for Brazil from 3.1% to 2.9%. Merrill cited a “massive depreciation” of Brazil’s currency, forcing the central bank to hold interest rates despite falling consumer demand, Bloomberg reported.
- Hong Kong officially entered a recession in the third quarter, with its gross domestic product contracting 0.5%, MarketWatch reported. The good news: that’s actually an increase from the 1.4% decline Hong Kong the economy saw in the second quarter.
- The Securities and Exchange Commission (SEC) yesterday (Monday) charged Mark Cuban, owner of the Dallas Mavericks and potential owner of the Chicago Cubs, with insider trading. The SEC filed a civil lawsuit against Cuban accusing him of selling his 6.3% stake in Mamma.com to avoid more than $750,000 in losses, The Associated Press reported.
- Lowe's Cos. Inc. yesterday (Monday) posted a 24% drop in profit from a year ago. The company earned $488 million, or 33 cents per share during the three months ended Oct. 31 – down from $643 million, or 43 cents per share, in 2007. Revenue actually climbed 1.4% to $11.73 billion.
- Industrial output 1.3% in October, the Federal Reserve said yesterday (Monday). Output had plunged 3.7% in September – the largest drop since February 1946.