Stock Market News Update From NYSE October 30, 2008

US CONSUMERS CUT SPENDING, GDP FALLS 0.3%
Gross domestic product in the 3Q slumps to 0.3%, the sharpest drop since 2001 and starting what experts say is a recession. Analysts expect a deeper drop in the final months of 2008, and a further decline in 2009. On a brighter note, new claims for unemployment benefits hold steady at a seasonally adjusted 479,000.

US STOCKS ADVANCE BUT REMAIN OFF HIGHS

Stocks retreat from early-session highs after a round of gloomy economic data but hold on to gains on hopes the Fed's rate cut will be supported by similar moves from other central banks. The CBOE market volatility index declines 6.2% to 65.66, a sign that expectations of market swings are subsiding.
AMERICAN EXPRESS CUTTING 10% OF STAFF

American Express will cut nearly 7,000 jobs as part of a cost-cutting effort the credit-card company hopes will generate $1.8 billion in savings next year. The work force reduction will result in 4Q restructuring charges of $370 million to $440 million. Shares rise 4%.
EXXON MOBIL NET SURGES ON PRICE GAINS

Exxon Mobil reports a 58% increase in third-quarter net income, smashing its own record for quarterly profits, amid a $1.62 billion gain and high oil prices. The oil company posted a net income of $14.83 billion, or $2.86 a share. Shares edge down.
GMAC SEEKS BANK-HOLDING STATUS

GMAC confirms that it's seeking to convert to bank-holding company status and may raise capital via a private offering in a move that would allow it to gain access to the government's $700 billion financial rescue plan.
RATES STILL FALLING IN COMMERCIAL PAPER MARKET

Momentum is gathering in the $1.45 trillion commercial paper market, with rates still falling and investors buying debt that matures past one day, spurred by the Federal Reserve's rate cut and its program to support the commercial paper market.
KANSAS CITY FED SEES MANUFACTURING HIT RECORD LOW

Index of manufacturing activity in the Federal Reserve Bank of Kansas City's district drops to -23 in October, from -9 in September, for the worst reading in the survey's 14-year history. New orders also fall to record low.
LAZEAR SEES GROWTH EARLY IN NEXT PRESIDENT'S TERM

"We think it is realistic to think some time early in the term of the next president we can start to see solid growth," Edward Lazear, Chairman of the Council of Economic Advisers, says, declining to say whether U.S. is now in a recession.
ALCATEL CEO REASSURES ON FINANCES; SHARES LEAP

Telecommunications equipment maker's new chief executive, Ben Verwaayen, soothes investor concerns over its financial stability and says he is carrying out a strategic review of Alcatel-Lucent's activities, pushing shares up 16%. Adjusted 3Q operating profit falls 43%.
INTERNATIONAL PAPER NET FALLS ON HIGHER COSTS

International Paper's 3Q net drops 31% as higher prices fail to offset rising costs. Paper products company earns $149 million, or 35c a share. Revenue up 23% on its purchase of Weyerhaeuser.
TOYOTA TO EXPORT US-BUILT SEQUOIAS, TUNDRAS

Toyota Motor says it will export its U.S.-built Sequoia and Tundra vehicles to Latin America and the Middle East, the first time the auto maker is shipping them overseas as the company looks to offset slumping U.S. demand.
EXPEDIA NET DOWN 4.8% AMID FOREX LOSS

The online travel agency says it will cut costs in light of slumping travel spending in the past two months. It reports net income of $94.8 million, or 33 cents a share, as revenue rises 9.7% to $833.3 million. Shares slip 1%.
CBS POSTS HUGE LOSS ON LICENSE WRITE-DOWN

CBS swings to a huge third-quarter loss as it records $14.12 billion in goodwill write-downs related to the value of federal broadcasting licenses. The media company posted a net loss of $12.5 billion, or $18.58 a share. Revenue grew 2.9% to $3.38 billion. Shares rise 6%.
EASTMAN KODAK CUTS OUTLOOK, NET JUMPS

Photography giant's 3Q net nearly triples to $96 million, or 34c a share, following restructuring charges a year ago, but company cuts its 2008 outlook, expecting revenue to fall 3%-5% for the year.
MOTOROLA POSTS LOSS, CUTS FULL-YEAR VIEW

Motorola posts a 3Q net loss of $397 million, or 18c a share, compared with year-earlier net income of $60 million, or 3c a share. Restructuring changes expected to save $600 million next year, when losses are expected to narrow. Shares down 5%.
ICE SAYS BANKS' CDS CAPITAL NEEDS TO INCREASE

IntercontinentalExchange forecasts a huge shakeup in the credit-default swap market, with banks and dealers likely to pledge more capital to support the $55 trillion business. Shares of the exchange rise 21%.
BROWN SAYS IMF MUST PLAY ROLE IN HELPING E EUROPE

U.K. Prime Minister Gordon Brown calls on the International Monetary Fund to play a key role in tackling economic problems in Eastern Europe. Brown has called on oil-rich nations and those with large reserves to top up the IMF's resources.
SAUDI, TWO OTHER ARAB GULF STATES CUT RATES

Saudi Arabia, the Middle East's biggest economy, and two other Arab Gulf states, Kuwait and Bahrain, adopt the U.S. Federal Reserve's key interest rate cut to support their banking systems amid the ongoing world financial crisis.
CIGNA NET SLUMPS 53%, CUTS OUTLOOK

Managed-care firm's 3Q net income drops 53% to $171 million, or 62c a share, amid losses in run-off reinsurance segment. Revenue grows 9.9% to $4.85 billion. Company lowers its full-year earnings outlook. Shares fall 14%.
OIL FALLS $2 IN CHOPPY TRADING

Crude oil futures fall $2 a barrel as traders searched for a short-term bottom in prices. December delivery was recently down $2.01, or 3%, to $65.49 a barrel on the New York Mercantile Exchange.
PHILLIES OUTLAST RAYS, CAPTURE WORLD SERIES

Jayson Werth and Pedro Feliz each drove in a run in the resumption of Game Five to lift the Phillies to a 4-3 victory over the Tampa Bay Rays, clinching their first World Series title since 1980 and the second in franchise history.



======= DOW JONES NEWSWIRES ANALYSIS AND COMMENTARIES =======

BROKER'S WORLD
BofA Gets Stingy With Brokers' Stay Bonuses
Bank of America is being pretty frugal when it comes to Merrill Lynch's renowned brokerage force, which is used to getting star treatment from Mother Merrill, Annie Gasparro writes.

HEARD ON THE STREET
After Market Rout, Pension Pain Looms
Corporate pension plans dug themselves out of a deep hole between 2002 and 2007. Now, they're back in it. That presents yet another worry, shortfalls will likely result next year in all-round hits, David Reilly writes.

============ U.S. MARKETS ACTION ===========
DJIA up 79.97 points to 9070.93
NASDAQ up 17.13 points to 1674.34
S&P 500 up 9.40 points to 939.49
10-year T-note 100 20/32 at 3.922 yield dn .040
NYMEX Crude down $1.80 at $ 65.70/bbl
Euro/Dollar down 0.0130 at 1.2830