US midday: Kraft bucks upward trend

LONDON (ShareCast) - Kraft Foods is the only major faller in the Dow Jones as the US markets move higher ahead of the Fed's latest report due out later today.

Processed foods supplier Kraft announced a dip in third quarter earnings after the bell on Tuesday and lowered its full-year net revenue guidance, but confirmed it has the money in place for its mooted £10.2bn pound hostile bid for Cadbury. However, Kraft has promised to remain "disciplined" about the bid and there is speculation that Kraft may not proceed with the offer.

The Dairylea cheese and Toblerone chocolate maker announced third quarter net earnings of $824m, down from $1.36bn a year earlier.

Kraft said organic net revenues grew 0.5% during the quarter, once acquisitions were stripped out.

The Dow Jones has maintained early gains and is up 105 points at 9,877, the Nasdaq Composite has fallen back slightly and is currently 13 higher at 2,070, while the broader S&P is up 11 at 1,057.

The Federal Reserve is widely expected to leave its key interest rate unchanged. An announcement is due at 1915GMT.

The US ISM non-manufacturing index dropped to 50.6 in October from 50.9 the month before. Economists had predicted an increase to 51.5.

Payroll services firm ADP said US private sector unemployment increased by 203,000 in October, more than the 200,000 forecast, but less than September's downwardly revised 227,000.

General Motors has decided to abandon the sale of its European arm.

The US automaker originally agreed to sell the business to Canadian firm Magna International and its Russian partner Sberbank after months of negotiations with a number of bidders and the German and British governments.

General Motors said the change of mind, which was announced late yesterday when the group reported a 4% rise in US car sales, was due to the improving economy and the strategic importance of Opel's compact car technology.

Elsewhere in the car sector, Fiat is due to update the market on its new five-year turnaround plan for Chrysler later today.

Pharma company Merck says that following its acquisition of Schering-Plough earnings for the combined company, excluding some costs, will increase at a "high single-digit" rate every year up until, and including, 2013.

Walt Disney has gained approval for a new theme park in Shanghai.

Time Warner's quarterly earnings and revenue beat forecasts, while cable group Comcast said net income rose 22%, also ahead of estimates.

S&P 500 - Risers MBIA Inc. (MBI) $4.57 +11.19% Davita Inc. (DVA) $58.18 +6.95% Interpublic Group (IPG) $6.34 +5.84% Tyco Electronics Ltd. (TEL) $22.94 +5.67% Aetna Inc. (AET) $28.11 +5.60% Pulte Homes Inc. (PHM) $9.74 +5.53% Cigna Corp. (CI) $29.86 +5.48% Merck & Co. Inc. (MRK) $32.29 +5.28% Lennar Corp. Class A (LEN) $13.77 +5.19% D R Horton Inc. (DHI) $11.78 +5.08%

S&P 500 - Fallers Molson Coors Co Class B (TAP) $46.24 -6.40% American International Group Inc. (AIG) $36.90 -5.92% Goodyear Tire Rubber (GT) $12.67 -5.16% Hartford Fin Svc (HIG) $24.69 -4.36% Baker Hughes International (BHI) $41.67 -4.05% BJ Services Company (BJS) $19.09 -3.76% Kraft Foods Inc. (KFT) $26.65 -3.23% Pioneer Natural Res (PXD) $41.18 -3.20% Genworth Financial (GNW) $10.60 -2.48% Unumprovident Corp. (UNM) $19.69 -2.48%

Dow Jones I.A - Risers Merck & Co. Inc. (MRK) $32.29 +5.28% Walt Disney Co. (DIS) $28.37 +2.72% Microsoft Corp. (MSFT) $28.24 +2.58% Travelers Company Inc. (TRV) $51.18 +2.19% Hewlett-Packard Co. (HPQ) $48.48 +2.04% McDonald's Corp. (MCD) $60.44 +2.03% Alcoa Inc. (AA) $12.91 +1.97% United Technologies Corp. (UTX) $64.40 +1.90% Caterpillar Inc. (CAT) $57.46 +1.77% Bank Of America Corp. (BAC) $15.05 +1.69%

Dow Jones I.A - Fallers Kraft Foods Inc. (KFT) $26.65 -3.23%

Nasdaq 100 - Risers Hologic Inc. (HOLX) $15.23 +4.03% Infosys Technologies Ltd. (INFY) $48.51 +3.90% Seagate Technology (STX) $14.89 +3.84% Foster Wheeler AG (FWLT) $30.83 +3.80% Adobe Systems Inc. (ADBE) $34.19 +3.57% Marvell Technology Group Ltd. (MRVL) $14.35 +2.94% Echostar Communications Corp. (DISH) $17.83 +2.65% Microsoft Corp. (MSFT) $28.24 +2.58% Broadcom Corp. (BRCM) $26.66 +2.58% Apple Inc. (AAPL) $193.10 +2.30%

Nasdaq 100 - Fallers Garmin Ltd. (GRMN) $27.68 -11.88% Henry Schein Inc. (HSIC) $51.75 -4.27% Expeditors International Of Washington Inc. (EXPD) $31.75 -2.22% Research In Motion Ltd. (RIMM) $58.74 -1.46% C.H. Robinson Worldwide Inc. (CHRW) $55.45 -1.00% Comcast Corp. (CMCSA) $14.39 -0.83% Joy Global Inc. (JOYG) $53.01 -0.76% Biogen Idec Inc. (BIIB) $42.93 -0.74% Genzyme Corp. (GENZ) $51.32 -0.70% Citrix Systems Inc. (CTXS) $37.87 -0.62%