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FBI snares would-be NY Fed bomber

Wednesday, October 17, 2012 - 01:48

Oct 17 - Summary of business headlines: FBI arrests man for trying to blow up New York Fed; American Express matches forecast, Bank of America breaks even, Pepsi profits beat, but sales lag expectations; Housing starts hit 4-year high; Stocks creep higher. Conway G. Gittens reports.

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PLEASE NOTE: THIS EDIT CONTAINS CONVERTED 4:3 MATERIAL There's been a bomb plot against the New York Federal Reserve. The FBI says it arrested a man for trying to detonate what he thought was a 1,000-pound bomb near the lower Manhattan building. The suspect has been charged with attempting to use a weapon of mass destruction. Other news of the day: earnings. American Express hit Wall Street's sales and profit targets. But net income from U.S. and international card services were down last quarter. Sticking with financials - earnings at Bank of America nosedived 95 percent from a year ago. The No. 2 U.S. bank saw earnings of zero cents per share, excluding a $1.6 billion charge for legal issues, analysts were predicting a loss. Pepsi beat profit forecasts thanks to higher prices but a stronger dollar held back international sales. On the economic front - new home construction projects surged 15 percent in September, that's the biggest jump in more than four years. Homebuilders like Hovnanian, KB Home, and Beazer Homes all big percentage gainers on the New York Stock Exchange. David Goldberg covers the sector for UBS. SOUNDBITE: DAVID GOLDBERG, HOME-BUILDER ANALYST, UBS (ENGLISH) SAYING: "You know it's interesting. Demand is pretty strong. We are off a very low base. There is very little supply. The recovery that we've seen so far in the new home market- it's been really concentrated in the best parts of cities right, so what the builders are finding is there's not a lot of inventory. There's not a lot of land to build on and demand is ticking up so they are getting more pricing and things are getting better." And that "better" helped blue chips rally for a fourth trading day in a row and the rest of the market is up three. Europe was up as well with the broader market touching a three-week high. Conway Gittens, Reuters

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FBI snares would-be NY Fed bomber

Wednesday, October 17, 2012 - 01:48