Stocks Opened Higher after Sandy Shutdown
U.S. stocks opened mostly higher on Wednesday as U.S. equity trading resumed after a two-day shutdown caused by Hurricane Sandy. The Dow Jones industrial average lately gained 64.59 points, or 0.49 percent, to 13,171.80. The Standard & Poor’s 500 Index added 5.91 points, or 0.42 percent, to 1,417.85. The Nasdaq Composite Index was off 0.86 points, or 0.03 percent, to 2,987.09.
General Motors (GM) third-quarter profit falls 12 percent on Europe losses, North America warranty costs. But the company posted better-than-expected results in South America and internationally. Its overall performance soundly beat Wall Street expectations. It earned $1.5 billion from July through September, down from $1.7 billion a year earlier. The company earned 89 cents per share compared with $1.03 in 2011. Revenue grew 2.5 percent to $37.6 billion.
Labor costs rose modestly in the third quarter, pointing to benign wage pressures as the economy struggles to generate faster job growth. The Employment Cost Index, which measures total employer compensation costs, increased 0.4 percent after rising 0.5 percent in the second quarter, the Labor Department said.
PVH Corp.(PVH), whose brands include Calvin Klein and Tommy Hilfiger, has agreed to buy rival clothier The Warnaco Group Inc. in a cash-and-stock deal worth about $2.9 billion that will create one of the world’s largest clothing companies.