Ahead of the Bell: Analyst cuts GE EPS estimate (AP) and Consumer spending down 1 percent in October (AP)

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City of Industry, CA --(www.USEquityNews.com)-- 11/26/2008 - Most Popular industry alert provided by U.S. Equity News. HARTFORD, Conn. (AP) -- An analyst cut his 2009 earnings per share estimate Wednesday for General Electric Co., saying he expects the conglomerate's financial business to be pressed by extended delinquencies and continued weakness in real estate. Analyst Christopher Glynn of Oppenheimer and Co. said in a note to investors that he is reducing his 2009 earnings-per-share estimate to $1.65 from $1.75, "reflecting an increase in provisions at capital finance" to $2.8 billion more than this year. Wall Street, on average, expects GE will earn $1.75 per share next year, according to a surveyed by Thomson Reuters.GE Capital, which makes loans for consumer car purchases, commercial energy projects and numerous other products and services, is expected to make about $9 billion this year. [Read the full article]


WASHINGTON (AP) -- As the financial crisis was gaining force, Americans cut back on their spending in October by the largest amount since the 2001 terrorist attacks.The Commerce Department reported Wednesday that consumer spending plunged by 1 percent last month, even worse than the 0.9 percent decline that had been expected. Personal incomes were up 0.3 percent last month, slightly better than the 0.1 percent gain analysts had expected. The big decline in spending in October underscored concerns that the economy is falling into a deep recession. Consumer spending accounts for two-thirds of total economic activity.The government had reported Tuesday that the overall economy, as measured by the gross domestic product, was declining at an annual rate of 0.5 percent in the July-September quarter. [Read the full article]

WASHINGTON (AP) -- Orders to U.S. factories for big-ticket manufactured goods plunged in October by the largest amount in two years as manufacturing was battered by the overall economic weakness.The Commerce Department reported Wednesday that orders for durable goods dropped by 6.2 percent last month, more than double the 3 percent decline economists expected. The report showed widespread declines throughout manufacturing led by decreases in autos and airplanes.The manufacturing sector is being hit by the slowdown that is occurring in the rest of the economy. The prospect that the U.S., the world's largest economy, has entered what could be a severe recession, is dragging down growth in other areas and dampening demand for U.S. exports, which had been the one bright spot for the economy this year.Demand for autos fell by 4.5 percent last month, reflecting the hard times facing U.S. automakers, who are appealing to Washington for a sizable bailout package. [Read the full article]

CHICAGO (AP) -- Despite plummeting gas prices and unusual last-minute holiday deals on airplane tickets, more people are expected to stick close to home this Thanksgiving.In fact, the Automobile Association of America says the 41 million Americans expected to take trips at least 50 miles for Thanksgiving is about 600,000 less than traveled last Thanksgiving. The reason, as a surly economist might say? It's the economy, stupid."The economy is in such bad shape. ... They're still really hesitant to take that trip," said Beth Mosher, spokeswoman for AAA Chicago.In comparison, over the July 4 weekend when gas prices were far higher than the same weekend the previous year, the number of travelers dropped just 2.3 percent, she said. At that time, the economic news wasn't as dire as it is now.Still, some are undeterred. [Read the full article]

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