Other news

The US Chemical Safety Board, the federal body charged with investigating the safety record of BP, is understood to have found at least eight previous dangerous incidents at Texas City.

Balfour Beatty and Carillion, the UK construction groups, have won the 363 million pound contract to extend the new East London rail line between Dalston Junction and West Croydon.


9:00AM Stock futures pointed to a mixed opening amid Ford and Xerox results.
U.S stock futures pointed to a mixed start on Monday as Ford reported disappointing results, while Xerox posted third-quarter net income increase. With little economic news due out today, investors will look ahead to a FOMC meeting Tuesday and the GDP data at the end of the week.

Ford Motor (F: chart) said it expects to report Q3 net loss of $5.8 billion, or $3.08 a share, compared to a loss of $284 million a year ago, due to its restructuring costs. Revenue rose to $3.84 billion from $3.76 billion. Analysts had expected it to earn 22 cents a share on revenue of $3.82 billion. Ford also plans to restate financial results from 2001 through the second quarter of 2006 because of errors in the accounting for derivative deals. Xerox (XRX: chart) posted Q3 profit rise of 54 cents a share, from 5 cents a share last year. Dow component AT&T (T: chart) reported Q3 earnings rise of $2.17 billion, or 56 cents a share, up from $1.25 billion, or 38 cents a share a year ago. Excluding non-recurring items, earnings would have been 63 cents a share, above the average analyst estimate of 58 cents a share. The stock tacked on 1.5% to $34.94 in pre-opening hours.

Among other companies, reporting earnings today, Hasbro Inc. (HAS: chart), toymaker, said Q3 net income rose 8.2% to 58 cents a share on higher revenue of $1.04 billion from $988.1 million. The quarterly results beat estimates of 50 cents on $963 million of revenue. In corporate news, MetaSolv Software (MSLV: chart) surged 20% in pre-open trading after Oracle Corp. (ORCL: chart) said that it was buying MetaSolv in a deal worth $219.2 million, or $4.10 a share in cash. S&P 500 futures slipped 0.70 of a point to 1,374.20 while Nasdaq 100 futures were unchanged at 1,718.75. Dow industrials futures added 8 points at 12,056.


8:00AM Ford reported wider Q3 loss. The automaker will restate earnings.
Ford Motor (F: chart) reported Q3 wider profit loss of $5.8 billion, citing costs of a massive restructuring plan aimed at reducing its expenses. Ford''s net loss of $3.08 per share was larger than last year''s Q3 loss of $284 million, or 15 cents per share, and the largest since the fourth quarter of 1992 of $8.1 billion, which was due mainly to accounting changes. Ford''s plan aims to slash $5 billion in costs by the end of 2008 by cutting 10,000 white-collar workers and offering buyouts to all of its 75,000 unionized employees. The automaker said special charges for the third quarter of 2006 totaled $5.26 billion before taxes. Excluding restructuring costs, the company said it lost $1.2 billion, or 62 cents per share, from continuing operations. The quarterly results came in below analysts’ expectations of a loss of 61 cents per share. The company also said it gained $99 million due to the release of a reserve from excise taxes in South America.

Ford Motor also said it will restate its earnings for 2001 due to accounting errors related to derivative deals. The restatement is expected to effect financial results from 2001 until the third quarter of 2006. It is also expected to improve results for 2002. The company is expecting to complete the restatement by the time it files its 10Q for the September quarter.


7:30AM Asian markets finished mixed, with Japan up and HK and Seoul down.
Asian markets closed mixed on Monday. The Nikkei 225 Index advanced 0.82% to end at 16788.82, its highest closing since May 11. The benchmark index was boosted by auto makers and electronics companies. Shares of Sony gained 0.84%, while Canon added 1.7%. Shares of Internet and telecommunications conglomerate Softbank rose 3.5%. Lower crude prices weighed on shares of energy producers, sending Inpex Holdings 0.5% lower.

In Hong Kong, the Hang Seng Index closed flat at 18089.85. Shares of China Mobile, the top cellular company in the world by subscribers, shed 0.2%, after reaching a fresh six-year high earlier in the session.

The Korea Composite Stock Price Index ended up 0.1% at 1364.95. Construction stocks advanced after the government unveiled its plan to develop two new residential towns near Seoul, as part of a series of measures to curb surging property prices. Hyundai Engineering & Construction rose 3.1% and GS Engineering & Construction gained 2.3%.

Chinese stocks declined as investors cut holdings on concerns demand will be swamped by a sudden increase in shares, followed by IPO debut of ICBC on Friday. The Shanghai Composite Index lost 1.7% to 1759.39.

Australia S&P ASX/200 finished little changed at 5333.50, Singapore Straits Times Index ended up 0.2% at 2691.61 and Taiwan Weighted Price Index closed little changed. Markets in Indonesia, Malaysia, Thailand and New Zealand were closed for holidays.


6:30 AM Falling oil stocks push European markets lower despite tech gains.
European markets were lower by mid morning on Monday. The FTSE 100 in London shed 0.1% to 6,150.8, while Frankfurt Xetra Dax remained marginally higher at 6,207.22 and the CAC 40 in Paris fell 0.1% to 5,372.91.

Decliners

Oil stocks were lower on Monday. Finnish refiner Neste Oil lost 3.5%, Norsk Hydro was off 2.7% and Repsol of Spain was down 1.3%.