Amazon’s spending spree to hurt margins now, boost profit later: analysts

(Reuters) – Amazon.com Inc‘s spending spree will hurt margins in the near term but boost profit in the long run, analysts said, after the world’s No.1 internet retailer posted a loss on heavy spending on technology, infrastructure and digital content.

Amazon shares were set to open about 2 percent higher on Friday even though the company forecast weak sales ahead of the crucial holiday shopping quarter.

Analysts remained largely optimistic about Amazon‘s ability to post strong growth in its e-commerce and international business despite the economic slowdown in Europe that also contributed to the company’s third-quarter loss.

“The low 4Q12 revenue growth guidance presents an upside opportunity particularly given the continued solid customer and unit increases and the strong third-party business,” said Needham & Co analyst Kerry Rice, who has a “hold” rating on the stock.

Amazon’s current quarter could also benefit from strong e-commerce trends as more consumers shift online to make their holiday purchases, he added.

Barclays Capital Inc analyst Anthony DiClemente cut his target on the stock to $ 220 from $ 230, but said Amazon has regularly shown a tendency to set low expectations.

Susquehanna International, while cutting its price target on the stock to $ 255 from $ 275, said it was positive on Amazon’s growing presence in third-party retail, its digital business leading the transformation of books, music and videos, and its unrivaled network of distribution centers and web service.

RBC Capital Markets raised its price target to $ 250 from $ 245, and said it remained bullish on Amazon’s opportunities in worldwide retail as it expands in geographies and categories.

International sales rose 20 percent to $ 5.92 billion in the quarter from a year earlier.

(Reporting by Sruthi Ramakrishnan in Bangalore; Editing by Don Sebastian)

Internet News Headlines – Yahoo! News

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Jill Scott to star in Fox Searchlight’s ‘Baggage Claim’

NEW YORK (TheWrap.com) – Jill Scott, the Grammy-winning neo soul singer-songwriter, will star in “Baggage Claim” for Fox Searchlight, the studio announced on Thursday.

She will appear alongside Paula Patton and Derek Luke in this romantic comedy from writer/director David E. Talbert.

Patton will play Montana Moore, a flight attendant who tries to find a man before her sister’s upcoming wedding. Scott will play Gail Best, Moore’s blunt best friend and coworker.

The film is set to begin production this fall and is tentatively scheduled to open in theaters next year.

Scott, who has won three Grammys and garnered 13 nominations, just took to the small screen in Lifetime’s “Steel Magnolias.” She has also had roles in a variety of movies, including Tyler Perry’s “Why Did I Get Married.”

Movies News Headlines – Yahoo! News

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First Person: A Supportive Partner Makes All the Difference when Fighting Breast Cancer

To mark Breast Cancer Awareness Month, Yahoo News asked women who have had breast cancer or are going through treatment to write about the people in their lives who stood by them and cared for them. Here’s one story.

FIRST PERSON | It was Feb. 19, 2007, when I was told I had breast cancer.

I was just 32, with two children, Adam, 4, and Kaitlyn, 14, and a marriage that was close to ending after 15 years. We were living in Hillsborough, N.C., and moving to Efland.

Little did we know that move was a blessing in disguise for our whole family.

My husband, Kenny, and I had been having a lot of issues for a few years, most of them financial. We had started renting to own a home from a “friend,” and things were going well until he unexpectedly re-financed the house and our payment went up almost $ 400 a month. We tried to keep up, but we couldn’t, so we moved into a smaller home. This caused a lot more tension in between us, and it was almost the straw that broke up the marriage.

One day after moving, I was putting a box in the top of the closet and felt something “out of place” on the outside of my left breast. I mentioned it to my husband, and he told me to make a doctor’s appointment. Well, I brushed it aside but then Kaitlyn wanted to play soccer and had to have a physical so I figured I’d make myself an appointment too just to see what our doctor thought.

On my 32nd birthday, I went to see our family doctor. As soon as he felt it, he sent me for a mammogram the next day–Valentine’s Day. Kenny, Adam and I went to the imaging center at Duke. I thought it would be a cyst or something less severe, so why not bring my son along instead of finding a babysitter? Based on the imaging from the mammogram and ultrasound they all but said, “It’s cancer.” I was sent the next day to have a biopsy.

We got the call Monday afternoon. My husband answered, our family doc had called, and was told it was stage II intraductal carcinoma. I was in complete shock. My husband held me and let me cry. Starting that day, our relationship changed for the better. I always joked that cancer saved my marriage. But, in all reality, it did.

Kenny never missed a doctor’s appointment, which is one of the greatest things about having a good partner during this time. With chemotherapy, you will develop something called chemo brain. Yes, it is real! He remembered all the details from the appointments.

In March, I started chemotherapy. I would go every other week over an 18-week period, nine total rounds. A lot of those doctor’s appointments, especially chemo days, were very long days and if he weren’t there to keep me company I would’ve gone insane. We laughed, we talked, we spent a lot of time together, and got to know each other again. We learned to love again because you never know when tragedy can strike. And if he weren’t there, I don’t know who would’ve gone to get me french fries. He really was my rock. When I doubted I could do anymore or just needed to cry, he was always there and always telling me we would get through this. July 11, 2007, was my last day of chemo. I was so happy to have that part of it behind us but there was still more to go.

I am a stay-at-home mom, so my job is to cook, clean and take care of my family. I just didn’t have the energy to do that. But thanks to my wonderful husband and completely awesome daughter, I didn’t have to worry about that stuff at all. Another perk to having a supportive partner is that they understand you just can’t do a lot of what you are used to doing when you’re so exhausted from fighting cancer. And if ever you need to take time for yourself, it is during this time! My house got cleaned, food got served and kids got taken care of and that took a lot off of my worried mind!

After I had my bilateral mastectomy on Aug. 9, I thought I was a freak. I couldn’t do reconstruction right away, so here I was, a 32-year-old woman walking around with no breasts. I thought, “That’s a big part of what makes me a woman, now what?” But I was so wrong about that and Kenny let me know how wrong I was. I tell everyone if I had any doubt about how much he loved me this is when it all went away. I couldn’t take a shower or a bath for a few days after and I had these drain tubes that had to be emptied twice a day, which I couldn’t do on my own. My wonderfully supportive husband emptied my drains, measured the drainage and basically bathed me. If he didn’t love me I don’t think that would have ever happened. Today, we have been married almost 19 years and are happier than we’ve ever been. I know that sounds cliché, but it’s the truth. We let the little things go now and just love each other. It’s not always sunshine and lollipops. But we’re together, and we’re living and loving every day.

So I guess what I am saying here is there are so many areas in your life where you will need that supportive partner to help you fight cancer and to keep you going. Whether it’s keeping up with appointments, remembering what the doctor says, making you laugh, getting you french fries or just holding you, you need a supportive partner. It could be a sibling, a parent, even an adult child but you need someone. No one should go through this difficult, terrible journey on her own; it’s just too much for one person. I really like the term co-survivor because that is what you are doing: You are surviving this together.

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Moody’s warns may downgrade five big Canadian banks

NEW YORK/TORONTO (Reuters) – Moody’s Investors Service warned on Friday it could cut its ratings on five top Canadian banks on concerns about a softening economy and volatile capital markets, a blow to a banking system named the soundest in the world four years in a row.

But the outlook for the sector is no longer as rosy, Moody’s said, because of the risks presented by the macroeconomic environment and a business mix that leans heavily on domestic mortgages and other consumer lending.

Canadian consumer debt has risen to record highs in recent months, a situation reminiscent of the United States before its 2008 housing crisis. The household debt-to-income ratio jumped to 163.4 percent in the second quarter from 161.8 percent in the first quarter, Statistics Canada said a week ago.

Meanwhile, Canada’s housing market appears to be cooling after several years of red-hot gains.

“Domestically, we’re concerned about the high and increasing levels of consumer indebtedness and elevated housing prices, and we feel that they may tend to leave the Canadian banks more vulnerable to downside risks to the economy than they have been in the past,” David Beattie, Moody’s vice president and senior credit officer, told Reuters.

The warning applies to long-term debt ratings for Toronto-Dominion Bank, Bank of Nova Scotia, Bank of Montreal, Canadian Imperial Bank of Commerce and National Bank of Canada. It also applies to Caisse Centrale Desjardins, Canada‘s largest association of credit unions.

The ratings agency said any cuts would likely be only one notch. The sector’s ratings are still among the highest in the world.

“We continue to believe that the Canadian banks rank among the strongest in the world, and this review is based on concerns about system-wide and bank-specific risks that aren’t fully captured in their current ratings,” said Beattie.

The only bank not put on credit watch on Friday was Royal Bank of Canada, the country’s largest. That’s because Moody’s lowered RBC’s ratings by two notches in June as part of a review of 17 global banks.

Moody’s did place RBC’s supported subordinated debt ratings on review for downgrade, while affirming its other ratings.

CAPITAL MARKETS EXPOSURE

Moody’s also cited the sizable capital markets exposure of Scotiabank, BMO, CIBC and National Bank as reasons for the warning. Exposure to capital markets was the main reason behind RBC’s ratings cut earlier this year.

For TD, the highest-rated Canadian bank, Moody’s cited concern with its “less-strong” U.S. subsidiary. TD has about 1,300 branches in the United States, outnumbering its branch count in Canada.

TD’s long-term credit rating is currently Aaa, which is the highest rating. Scotiabank and Desjardins are rated Aa1, the next level down, while BMO, CIBC, and National Bank are rated Aa2.

Desjardins was cited because of its more “concentrated” franchise than its Canadian peers, which Moody’s said leaves it less flexibility to respond to profit pressures.

Desjardins has a dominant retail bank presence in the province of Quebec, but lacks the geographic diversity and business mix of the big banks.

Canada’s banks, which had held up much better than their peers during the global economic crisis, were named soundest in the world for four straight years by the World Economic Forum.

The second major debt rating agency, Standard & Poor’s, made a similar move in July, putting RBC, TD, Scotiabank and National Bank on “negative outlook” citing rising consumer debt and elevated housing prices.

Shares of the Canadian banks did not appear to be affected by the Moody’s report, which was released about an hour before markets closed on Friday.

Of the banks placed on review, only TD declined, slipping 0.1 percent to C$ 81.17 on the Toronto Stock Exchange.

CIBC would not comment on the review, while a TD spokesman said the bank “continues to be well capitalized and remains one of the safest and strongest banks in the world.”

The other lenders did not immediately respond to a request for comment.

(Additional reporting by Daniel Bases and Caryn Trokie; Editing by Leslie Adler and Tim Dobbyn)

Economy News Headlines – Yahoo! News

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Amnesty Int: Ivory Coast torturing detainees

ABIDJAN, Ivory Coast (AP) — Ivory Coast security officials are torturing dozens of detainees by administering electric shocks and other forms of abuse, Amnesty International alleged Friday.

The victims include people charged with endangering state security in the wake of a recent spate of attacks targeting military installations. Since early August, unknown gunmen have carried out roughly 10 attacks at checkpoints, military bases and other installations throughout the country, including in the commercial capital of Abidjan.

United Nations officials have said that more than 200 people have been detained on suspicion of involvement in the attacks, and that torture has been documented at multiple detention facilities.

Gaetan Mootoo, West Africa researcher for Amnesty, said an investigation team received reports of a range of abuses during a recent month-long visit.

“We were able to meet dozens of detainees who told us how they have been tortured by electricity or had molten plastic poured on their bodies,” Mootoo said. “Two of them have been sexually abused. Some have been held for many months denied contact with their families and access to lawyers.”

Army spokesman Cherif Moussa denied the torture allegations Friday. “Our camps are not concentration camps,” he said.

However, he acknowledged the possibility that individual soldiers may occasionally “go beyond what they are allowed to do” when dealing with inmates.

He added that the government tried to ensure that inmates’ rights were respected. “We want to prove that we are not abusing people’s rights,” he said. “We’re working for the state’s security. We’re working for the people’s security.”

Earlier this month, the Associated Press interviewed former detainees at a military camp in the southwestern port town of San Pedro who described widespread beatings as well as the use of electric shocks. A guard at the camp corroborated most of the claims, though camp commanders denied them.

In its statement Friday, Amnesty described how one detainee, a police officer, had died as a result of the torture he endured at the San Pedro camp.

“Serge Herve Kribie was arrested in San Pedro on August 21 by the national army and interrogated about recent attacks,” Amnesty said. “He was stripped naked, tied to a pole, had water poured on his body, and was then subjected to electric shocks. He died a few hours later.”

Amnesty said that some detainees were only released after ransoms were paid. One detainee told the rights group: “My parents first paid 50,000 CFA (a little under US $ 100) and then after my release, my jailers went at my house and demanded a higher sum. I told them that I couldn’t pay such an amount and they agreed to receive 20,000 CFA more (about US$ 40).”

The government has blamed the attacks on allies of former President Laurent Gbagbo, who was arrested in April 2011. Gbagbo’s refusal to cede office after losing the November 2010 election to now-President Alassane Ouattara sparked six months of violence in which at least 3,000 were killed.

Amnesty researchers also met with some of the more than 100 Gbagbo allies – including his wife, Simone – who are being detained on charges stemming from the post-election violence.

“Some of them told us that despite the fact that they have been held since April 2011, they only saw an investigating judge twice for less than a few hours,” Mootoo said.

Despite widespread evidence that forces loyal to Ouattara also committed atrocities during the violence, none have been arrested or credibly investigated, sparking allegations of victor’s justice.

Also Friday, in Amsterdam, judges at the International Criminal Court rejected a request for release by former president Gbagbo, who is being detained on suspicion of crimes against humanity.

Africa News Headlines – Yahoo! News

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Apple’s weak margin outlook surprises analysts

(Reuters) – At least three brokerages cut their price targets on Apple Inc by up to $ 50 a share after the iPhone maker surprised analysts by forecasting lower gross margins for the current quarter.

Apple shares edged lower 0.1 percent to $ 608.85 in premarket trading.

For the December quarter, Apple forecast revenue of $ 52 billion, below estimates of $ 55 billion, according to Thomson Reuters I/B/E/S. It expects margins of 36 percent, far lower than analysts’ expectations of 43 percent.

Analysts focused on the decline in margins and played down the significance of a fall in iPad sales in the last quarter, as users waited for the iPad mini, and they did not expect this to continue.

Apple’s forecast decline in gross margin, even assuming it was deliberately aiming low, still pointed to an unusual decline, Evercore Partners analysts Rob Cihra and Edison Yu said in a research note. Evercore cut its price target on the stock to $ 775 from $ 800.

Nomura Equity Research said it expected production costs to rise in the current quarter, after Apple redesigned so many of its products at once.

“The iPhone 5, iPod Touch, iPod nano, iPad mini and iMac all feature new form factors and our checks with the supply chain indicate that many of these are very complex to manufacture and are likely resulting in reduced production efficiencies,” Nomura analysts said in a note as they lowered their price target to $ 660 from $ 710.

Apple heads into the current quarter after refreshing almost all of its product lines, including introducing a lower-priced 7.9-inch “iPad mini” and an upgraded fourth-generation full-sized iPad.

Apple said it expects 80 percent of revenue in the current quarter to come from new products but did not increase the product prices to offset higher costs and maintain its margins.

Analysts, however, expect gross margins to recover by June next year as rising volumes trim manufacturing and component costs.

When the iPhone 4 was launched, Apple suffered a 480 basis point decline in corporate gross margins but it recovered entirely within two quarters, Raymond James analyst Tavis McCourt said.

He cut his price target on the stock by $ 30 to $ 700.

ORDERS OUTSTRIP SUPPLY

Apple had struggled to deliver large quantities of the iPhone 5 since its launch in late September, with waiting times stretching at times to three weeks in some regions.

This week, AT&T Inc blamed its disappointing subscriber growth in the third quarter on a shortage of iPhone 5, highlighting its dependence on Apple.

Apple CEO Tim Cook told analysts on a conference call that there was a heavy backlog for the latest iPhone but the company had mostly worked out kinks in its supply chain.

“We believe initial demand continues to look huge for Apple’s new 6th-gen iPhone 5, seeing a big jump coming in this Dec-qtr where our estimate remains unchanged at 49 million iPhones,” Evercore said.

South Korean rival Samsung Electronics Co posted a fourth straight record quarterly profit, $ 7.4 billion, with strong sales of its Galaxy range of phones.

Samsung sold 56.3 million smartphones in the third quarter, according to research firm IDC, giving it a global market share of 31.3 percent — more than double that of Apple, which said it sold 26.9 million iPhones.

Although fourth-quarter iPad sales of 14 million missed estimates, analysts said they expected sales growth in the December quarter and 2013.

Evercore forecast Apple to ship 67 million for 2012 and 97 million next year, and said this would said this would take sales of the tablet to around 27 percent of the size of the traditional PC market in 2013.

(Reporting by Supantha Mukherjee in Bangalore)

Tech News Headlines – Yahoo! News

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Apple’s weak margin outlook surprises analysts

(Reuters) – At least three brokerages cut their price targets on Apple Inc by up to $ 50 a share after the iPhone maker surprised analysts by forecasting lower gross margins for the current quarter.

Apple shares edged lower 0.1 percent to $ 608.85 in premarket trading.

For the December quarter, Apple forecast revenue of $ 52 billion, below estimates of $ 55 billion, according to Thomson Reuters I/B/E/S. It expects margins of 36 percent, far lower than analysts’ expectations of 43 percent.

Analysts focused on the decline in margins and played down the significance of a fall in iPad sales in the last quarter, as users waited for the iPad mini, and they did not expect this to continue.

Apple’s forecast decline in gross margin, even assuming it was deliberately aiming low, still pointed to an unusual decline, Evercore Partners analysts Rob Cihra and Edison Yu said in a research note. Evercore cut its price target on the stock to $ 775 from $ 800.

Nomura Equity Research said it expected production costs to rise in the current quarter, after Apple redesigned so many of its products at once.

“The iPhone 5, iPod Touch, iPod nano, iPad mini and iMac all feature new form factors and our checks with the supply chain indicate that many of these are very complex to manufacture and are likely resulting in reduced production efficiencies,” Nomura analysts said in a note as they lowered their price target to $ 660 from $ 710.

Apple heads into the current quarter after refreshing almost all of its product lines, including introducing a lower-priced 7.9-inch “iPad mini” and an upgraded fourth-generation full-sized iPad.

Apple said it expects 80 percent of revenue in the current quarter to come from new products but did not increase the product prices to offset higher costs and maintain its margins.

Analysts, however, expect gross margins to recover by June next year as rising volumes trim manufacturing and component costs.

When the iPhone 4 was launched, Apple suffered a 480 basis point decline in corporate gross margins but it recovered entirely within two quarters, Raymond James analyst Tavis McCourt said.

He cut his price target on the stock by $ 30 to $ 700.

ORDERS OUTSTRIP SUPPLY

Apple had struggled to deliver large quantities of the iPhone 5 since its launch in late September, with waiting times stretching at times to three weeks in some regions.

This week, AT&T Inc blamed its disappointing subscriber growth in the third quarter on a shortage of iPhone 5, highlighting its dependence on Apple.

Apple CEO Tim Cook told analysts on a conference call that there was a heavy backlog for the latest iPhone but the company had mostly worked out kinks in its supply chain.

“We believe initial demand continues to look huge for Apple’s new 6th-gen iPhone 5, seeing a big jump coming in this Dec-qtr where our estimate remains unchanged at 49 million iPhones,” Evercore said.

South Korean rival Samsung Electronics Co posted a fourth straight record quarterly profit, $ 7.4 billion, with strong sales of its Galaxy range of phones.

Samsung sold 56.3 million smartphones in the third quarter, according to research firm IDC, giving it a global market share of 31.3 percent — more than double that of Apple, which said it sold 26.9 million iPhones.

Although fourth-quarter iPad sales of 14 million missed estimates, analysts said they expected sales growth in the December quarter and 2013.

Evercore forecast Apple to ship 67 million for 2012 and 97 million next year, and said this would said this would take sales of the tablet to around 27 percent of the size of the traditional PC market in 2013.

(Reporting by Supantha Mukherjee in Bangalore)

Tech News Headlines – Yahoo! News

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Katy Perry wears her ballot at Obama rally

LAS VEGAS (AP) — Katy Perry‘s doing her best get-out-the vote effort: At a rally for President Barack Obama, she wore a tight white dress imprinted like a ballot, and a square box on her right hip filled in the names of Obama and Joe Biden.

Perry gave a free concert at a park in a historically minority neighborhood just northwest of downtown Las Vegas to screaming fans at about 9 p.m., the same time Air Force One landed at McCarran International Airport across town.

Obama later told the crowd, “I believe in you. I need you to keep believing in me.”

The Las Vegas campaign event drew more than 10,000 people, according to fire officials and organizers, with long lines still on sidewalks during Perry’s 30-minute performance before Obama arrived.

The singer opened with a rendition of Al Green’s soul hit, “Let’s Stay Together,” and played five songs, including “Teenage Dream,” before ending with a thumping bass drum version of “Firework.”

Perry, who recently also played a free concert at an Obama event in Los Angeles, paused before the last song Wednesday to exhort people in the Las Vegas crowd to vote early.

“Don’t wait. Go tomorrow,” she said. “How many of you are 18 here? It’s going to be your first time, right?”

Entertainment News Headlines – Yahoo! News

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Katy Perry wears her ballot at Obama rally

LAS VEGAS (AP) — Katy Perry‘s doing her best get-out-the vote effort: At a rally for President Barack Obama, she wore a tight white dress imprinted like a ballot, and a square box on her right hip filled in the names of Obama and Joe Biden.

Perry gave a free concert at a park in a historically minority neighborhood just northwest of downtown Las Vegas to screaming fans at about 9 p.m., the same time Air Force One landed at McCarran International Airport across town.

Obama later told the crowd, “I believe in you. I need you to keep believing in me.”

The Las Vegas campaign event drew more than 10,000 people, according to fire officials and organizers, with long lines still on sidewalks during Perry’s 30-minute performance before Obama arrived.

The singer opened with a rendition of Al Green’s soul hit, “Let’s Stay Together,” and played five songs, including “Teenage Dream,” before ending with a thumping bass drum version of “Firework.”

Perry, who recently also played a free concert at an Obama event in Los Angeles, paused before the last song Wednesday to exhort people in the Las Vegas crowd to vote early.

“Don’t wait. Go tomorrow,” she said. “How many of you are 18 here? It’s going to be your first time, right?”

Entertainment News Headlines – Yahoo! News

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Tax gains lift Merck, but sales disappoint

(Reuters) – Merck & Co Inc reported a higher-than-expected third-quarter profit, as a favorable tax rate and lower merger costs helped offset plunging sales of its former flagship product, Singulair, an asthma drug that began facing cheaper generics in August.

But overall company sales came in slightly below Wall Street expectations, as Singulair’s decline outpaced already grim predictions for it.

Merck, the No. 2 U.S. drugmaker, said on Friday it earned $ 1.73 billion, or 56 cents per share, compared with $ 1.69 billion, or 55 cents per share, a year earlier.

Excluding special items, Merck earned 95 cents per share. Analysts, on average, expected 92 cents.

The better-than-expected profit was largely due to the favorable impact of an overseas tax settlement as well as realization of foreign tax benefits, Merck said.

Jefferies & Co analyst Jeffrey Holford had predicted a tax rate of 26 percent, but it came in at 20.3 percent. He called the profit beat “low quality” because it was mostly due to the one-time tax gains.

“Gross margins were also weaker than expected,” Holford said, and noted that Singulair sales were about $ 75 million below what he had expected.

Merck spokesman Ron Rogers said the tax gains are not expected to carry over into the fourth quarter and that the drugmaker continues to expect a full-year tax rate of about 25 percent.

Global company revenue fell 4 percent to $ 11.49 billion in the quarter, below Wall Street expectations of $ 11.57 billion.

Merck tightened its full-year profit forecast to between $ 3.78 and $ 3.82 per share, from its earlier view of $ 3.75 to $ 3.85 per share.

Sales of Singulair tumbled 55 percent to $ 602 million. But a number of its newer products – including treatments for diabetes, hepatitis C and HIV – generated double-digit sales gains that helped cushion Singulair’s free fall.

And revenue from Gardasil, the company’s vaccine against cervical cancer, jumped 31 percent to $ 581 million.

But Merck will need to launch new drugs to withstand looming generic competition for other important medicines. Its Maxalt migraine drug, with $ 600 million in annual sales, goes generic in December, followed next year by its Temodar brain cancer medicine, which has near-blockbuster sales of $ 900 million.

Over the next 18 months, the company aims to seek six drug approvals, including marketing applications for new types of therapies for insomnia and osteoporosis.

(Reporting by Ransdell Pierson; Editing by Lisa Von Ahn, Jeffrey Benkoe and Steve Orlofsky)

Medications/Drugs News Headlines – Yahoo! News

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Tax gains lift Merck, but sales disappoint

(Reuters) – Merck & Co Inc reported a higher-than-expected third-quarter profit, as a favorable tax rate and lower merger costs helped offset plunging sales of its former flagship product, Singulair, an asthma drug that began facing cheaper generics in August.

But overall company sales came in slightly below Wall Street expectations, as Singulair’s decline outpaced already grim predictions for it.

Merck, the No. 2 U.S. drugmaker, said on Friday it earned $ 1.73 billion, or 56 cents per share, compared with $ 1.69 billion, or 55 cents per share, a year earlier.

Excluding special items, Merck earned 95 cents per share. Analysts, on average, expected 92 cents.

The better-than-expected profit was largely due to the favorable impact of an overseas tax settlement as well as realization of foreign tax benefits, Merck said.

Jefferies & Co analyst Jeffrey Holford had predicted a tax rate of 26 percent, but it came in at 20.3 percent. He called the profit beat “low quality” because it was mostly due to the one-time tax gains.

“Gross margins were also weaker than expected,” Holford said, and noted that Singulair sales were about $ 75 million below what he had expected.

Merck spokesman Ron Rogers said the tax gains are not expected to carry over into the fourth quarter and that the drugmaker continues to expect a full-year tax rate of about 25 percent.

Global company revenue fell 4 percent to $ 11.49 billion in the quarter, below Wall Street expectations of $ 11.57 billion.

Merck tightened its full-year profit forecast to between $ 3.78 and $ 3.82 per share, from its earlier view of $ 3.75 to $ 3.85 per share.

Sales of Singulair tumbled 55 percent to $ 602 million. But a number of its newer products – including treatments for diabetes, hepatitis C and HIV – generated double-digit sales gains that helped cushion Singulair’s free fall.

And revenue from Gardasil, the company’s vaccine against cervical cancer, jumped 31 percent to $ 581 million.

But Merck will need to launch new drugs to withstand looming generic competition for other important medicines. Its Maxalt migraine drug, with $ 600 million in annual sales, goes generic in December, followed next year by its Temodar brain cancer medicine, which has near-blockbuster sales of $ 900 million.

Over the next 18 months, the company aims to seek six drug approvals, including marketing applications for new types of therapies for insomnia and osteoporosis.

(Reporting by Ransdell Pierson; Editing by Lisa Von Ahn, Jeffrey Benkoe and Steve Orlofsky)

Medications/Drugs News Headlines – Yahoo! News

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Oil rebounds to over $86 a barrel on US growth

Faster-than-expected economic growth in the United States helped the price of oil reverse early losses on Friday and climb back above $ 86 a barrel.

By early afternoon in Europe, benchmark oil for December delivery was up 22 cents to $ 86.27 a barrel in electronic trading on the New York Mercantile Exchange. The contract rose 32 cents to finish at $ 86.05 a barrel in New York on Thursday.

In London, Brent Crude was up 45 cents to $ 108.94 on the ICE Futures exchange.

The U.S. Commerce Department said gross domestic product grew by an annual 2 percent in the third quarter. That was in contrast to 1.3 percent annual growth in the second quarter and analysts’ expectations of a 1.8 percent rise for July-September.

Earlier in the session, the Nymex contract fell to $ 85, its lowest point since July, driven down by ample supplies and concerns about growth prospects in Europe.

Analysts said the recent fall in oil prices can be partly attributed to ample supplies. Oil has dropped more than 7 percent in the past week.

The Energy Department said Thursday that U.S. oil supplies grew last week by 5.9 million barrels, or 1.6 percent. At 375.1 million barrels, the nation’s oil inventory is 11.1 percent above year-ago levels.

“Crude oil prices continue to remain under pressure, following the recent disappointing U.S. earnings results and the tentative economic conditions in Greece and Spain,” said a report from Sucden Financial Research in London.

In other energy futures trading in New York:

— Wholesale gasoline added 2.89 cent to $ 2.6612 a gallon.

— Natural gas lost 4.9 cents to $ 3.385 per 1,000 cubic feet.

— Heating oil added 1.86 cents to $ 3.0638 a gallon.

___

Pamela Sampson in Bangkok contributed to this report.

Economy News Headlines – Yahoo! News

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Oil rebounds to over $86 a barrel on US growth

Faster-than-expected economic growth in the United States helped the price of oil reverse early losses on Friday and climb back above $ 86 a barrel.

By early afternoon in Europe, benchmark oil for December delivery was up 22 cents to $ 86.27 a barrel in electronic trading on the New York Mercantile Exchange. The contract rose 32 cents to finish at $ 86.05 a barrel in New York on Thursday.

In London, Brent Crude was up 45 cents to $ 108.94 on the ICE Futures exchange.

The U.S. Commerce Department said gross domestic product grew by an annual 2 percent in the third quarter. That was in contrast to 1.3 percent annual growth in the second quarter and analysts’ expectations of a 1.8 percent rise for July-September.

Earlier in the session, the Nymex contract fell to $ 85, its lowest point since July, driven down by ample supplies and concerns about growth prospects in Europe.

Analysts said the recent fall in oil prices can be partly attributed to ample supplies. Oil has dropped more than 7 percent in the past week.

The Energy Department said Thursday that U.S. oil supplies grew last week by 5.9 million barrels, or 1.6 percent. At 375.1 million barrels, the nation’s oil inventory is 11.1 percent above year-ago levels.

“Crude oil prices continue to remain under pressure, following the recent disappointing U.S. earnings results and the tentative economic conditions in Greece and Spain,” said a report from Sucden Financial Research in London.

In other energy futures trading in New York:

— Wholesale gasoline added 2.89 cent to $ 2.6612 a gallon.

— Natural gas lost 4.9 cents to $ 3.385 per 1,000 cubic feet.

— Heating oil added 1.86 cents to $ 3.0638 a gallon.

___

Pamela Sampson in Bangkok contributed to this report.

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Lull in fighting between Israel, Gaza militants

JERUSALEM (AP) — A flare-up in fighting between Israel and militants from Gaza’s ruling Hamas movement has subsided.

Both sides say the government in Egypt helped to restore calm.

Israeli defense official Amos Gilad told Army Radio on Thursday that Egyptian security forces have “a very impressive ability” to convey to the militants that it is in their “supreme interest not to attack.”

Hamas spokesman Ayman Taha says Egypt conveyed Israel’s desire to contain the violence. He says Hamas told Egyptian that militants would cease fire if Israel would.

The Israeli military says militants haven’t attacked southern Israel since Wednesday night. It says the military hasn’t struck Gaza since Wednesday morning.

Militants fired some 80 rockets and mortars at Israel on Wednesday and Israeli aircraft struck four times.

Middle East News Headlines – Yahoo! News

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Lull in fighting between Israel, Gaza militants

JERUSALEM (AP) — A flare-up in fighting between Israel and militants from Gaza’s ruling Hamas movement has subsided.

Both sides say the government in Egypt helped to restore calm.

Israeli defense official Amos Gilad told Army Radio on Thursday that Egyptian security forces have “a very impressive ability” to convey to the militants that it is in their “supreme interest not to attack.”

Hamas spokesman Ayman Taha says Egypt conveyed Israel’s desire to contain the violence. He says Hamas told Egyptian that militants would cease fire if Israel would.

The Israeli military says militants haven’t attacked southern Israel since Wednesday night. It says the military hasn’t struck Gaza since Wednesday morning.

Militants fired some 80 rockets and mortars at Israel on Wednesday and Israeli aircraft struck four times.

Middle East News Headlines – Yahoo! News

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News Summary: Facebook stock surges

STOCK SURGE: Facebook‘s stock gained the most in a single day since its May IPO, closing up 19 percent, or $ 3.73, at $ 23.23 Wednesday.

MOBILE RELIEF: Several analysts upgraded the social network after its third-quarter results were posted Tuesday, which detailed for the first time how much money it makes from mobile ads. Mobile had been a concern since before the company’s initial public stock offering.

STILL DOWN: Despite Wednesday’s gain, Facebook remains 39 percent off its IPO price of $ 38.

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“ER” Alum Ming-Na joins Joss Whedon’s “S.H.I.E.L.D.” pilot for ABC

LOS ANGELES (TheWrap.com) – “ER” veteran Ming-Na has signed on for another acronym-driven project.

Ming-Na, who starred on the medical drama “ER” for nine years, has signed on for “Marvel‘s S.H.I.E.L.D.” pilot, which will be written by “Avengers” writer-director Joss Whedon, his brother Jed Whedon and Maurissa Tancharoen (“Dollhouse”).

The pilot revolves around the titular peace-keeping force featured in Marvel comics and the movies that they spawned, including “The Avengers.”

Ming-Na will play agent Melinda May.

Whedon will also executive-produce the project along with Jed, Tancharoen, Jeffrey Bell and Jeph Loeb of Marvel Television if it goes into production, and is attached to direct, schedule permitting.

“The Avengers” actor Clark Gregg, who played Agent Coulson in the big-screen superhero epic, has also signed on for the pilot, which comes via ABC Studios and Marvel Television.

Ming-Na’s other recent television work includes runs on “Two and a Half Men,” as well as the sci-fi offerings “SGU Stargate Universe” and “Eureka.”

TV News Headlines – Yahoo! News

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