IN BRIEF
NEW YORK
MasterCard profits sail past Street forecasts
MasterCard's third-quarter profit blew past Wall Street's expectations, jumping 63 percent in a powerful reminder that many people around the world are still making money and finding ways to spend it.
The credit-card processor's results -- boosted by sharp increases in spending overseas and moderate growth in the United States -- drove shares up more than 17 percent Wednesday to an all-time high.
The Purchase, N.Y.-based company said profit in the July-to-September period was $314 million, or $2.31 a share, up from $193 million, or $1.42 a share, a year ago. Excluding after-tax gains from the partial sale of its investment in Redecard SA, a company that signs up merchants in Brazil, per-share profit was $1.80.
Revenue rose 20 percent to a record $1.08 billion from $902 million.
Analysts polled by Thomson Financial predicted earnings of $1.42 per share on revenue of $1.03 billion.
Gold miners turn in mixed earnings reports
Earnings news was mixed Tuesday for two major gold miners. Newmont Mining Corp. said quarterly earnings doubled, boosted by one-time gains. Barrick Gold, though, said profits fell 15 percent, as costs rose and production slipped after the sale of mines in Australia and South Africa.
Newmont, based in Denver, said net income was $397 million, or 88 cents per share, for the quarter ended Sept. 30, up from $198 million, or 44 cents per share, a year earlier.
The most recent results included an $84 million gain from foreign tax credits and a $54 million after-tax gain from a settlement on its Zarafshan-Newmont joint venture in Uzbekistan.
Revenue rose 50 percent to $1.65 billion up from $1.1 billion.
Excluding one-time gains, Newmont said it earned 57 cents a share, compared with 34 cents a share after one-time items a year earlier.
Analysts polled by Thomson Financial had forecast a profit of 25 cents per share. Analyst estimates typically exclude one-time items.
Meanwhile, Toronto-based Barrick Gold Corp., the world's largest gold producer, said net income fell to $345 million, or 39 cents a share, from $405 million, or 46 cents a year earlier. Profit before one-time items was 39 cents a share, less than the 40-cents-per share estimate of analysts polled by Bloomberg.
Sales rose 7.8 percent to $1.68 billion.
NEW YORK
Inventory report sends oil futures past $95
Oil futures soared again Wednesday to a new record near $95 a barrel after the government reported another unexpected drop in crude oil inventories and the Federal Reserve cut interest rates by a quarter point.
Light, sweet crude for December delivery rose $4.15 to settle at $94.53 a barrel on the New York Mercantile Exchange after rising as high as $94.74, a new trading record. Crude prices are near inflation-adjusted highs hit in early 1980. Depending on the how the adjustment is calculated, $38 a barrel then would be worth $96 to $101 or more today.
DETROIT
Chrysler starts layoffs in cost-cutting effort
Chrysler LLC began laying off thousands of salaried workers Wednesday as part of an effort to slash costs in the company's new era of private ownership, a spokesman said.
The cuts won't end there. On Thursday, Chrysler planned to announce the elimination of third shifts at the Toledo North plant in Ohio and the Belvidere plant in Illinois in the first quarter of 2008, according to two congressional aides with knowledge of the announcement. They spoke on condition of anonymity because they were not authorized to speak publicly.
The decisions will eliminate 750 jobs in the Toledo plant, which makes the Jeep Liberty and Dodge Nitro, and 1,000 jobs at the Belvidere plant, where Chrysler assembles the Dodge Caliber, Jeep Compass and Jeep Patriot.
Chrysler spokesman Mike Aberlich said about one-third of the company's temporary workers will be laid off in the next few months, along with other salaried workers.
BOSTON
Official: Casinos would bring social stimulus
A top official from the administration of Gov. Deval Patrick said Wednesday that casinos can provide "social stimulation and reduced isolation" for people and that the overwhelming majority of visitors won't become gambling addicts.
Health and Human Services Secretary JudyAnn Bigby, defending Gov. Deval Patrick's three-casino legislation, told a legislative panel that 94 percent of people will either not gamble or will do so without developing a problem.
"Gambling and other forms of entertainment associated with destination resort casinos can also provide social benefits associated with increased social stimulation and reduced isolation," she said.
Bigby and other administration officials acknowledged they don't know how many people would become gambling addicts if casinos are legalized, but boasted that casino revenues would pay for an array of prevention and treatment programs, including unrelated alcohol and drug problems.
WASHINGTON
Industry urged to aid at-risk homeowners
Treasury Secretary Henry Paulson urged the mortgage industry on Wednesday to do more to identify and help people who risk losing their homes because their monthly mortgage payments are resetting to higher levels.
Paulson said one promising initiative was a mass mailing lenders participating in the Hope Now alliance are planning to use to let people know where they can get help.
The new letters will start going out on Nov. 19.
More than 1 million people could be in danger of losing their homes over the next two years as their initial low introductory adjustable rate mortgages reset to higher rates.
NEW YORK
Treasury prices slump after Fed rate cut
Treasury prices caved in Wednesday after the Federal Reserve, while cutting interest rates a quarter point, warned that higher inflation risks could make further reductions unlikely.
The benchmark 10-year Treasury note fell 0.69 points to 102.17 with a yield of 4.47 percent, up from 4.39 percent late Tuesday. Prices and yields move in opposite directions.
The 30-year long bond dropped 1.13 points to 104.03 with a 4.74 percent yield, up from 4.68 percent late Tuesday.
