Walt Disney Company
The entertainment conglomerate said its fourth fiscal quarter profit fell 13% due to a bad debt charge on a receivable from Lehman Brothers and the combination of higher expenses and less successful films at its studio entertainment division.

Ford Motor Company
The struggling automaker reported a $3B operating loss in the latest quarter, said it would cut salaried employment costs by 10%, hourly workers with a buyout package, and capital spending, in order to preserve its dwindling cash.

Nvidia Corp
The maker of programmable graphics-processor technologies reported third-quarter net profit of $61.7M compared with a profit of $235.7M for the year-earlier period. Revenue was $897.7M down from $1.12B last year.

Wells Fargo & Company
The bank in the process of completing a $15B merger with Wachovia said it priced a $11B offering of 407.5M shares at $27 a share. The offering is expected to close around Nov. 13.

Stocks remain in negative territory.
Energy stocks (+0.6%) are outperforming as crude prices rebound to a gain of 2.6% at $62.65 per barrel.
Within the energy sector, 27 of the 40 components are posting a gain. Apache (+3.04) and Devon Energy (+2.03) are providing leadership.

The yen rose against the dollar and the euro on speculation a drop in stocks will lead investors to sell higher-yielding assets and pay back low-cost loans in Japan, unwinding the carry trade.
Japan's currency erased its decline versus the dollar and the euro after U.S. stocks reversed their rally as analysts predicted that Goldman Sachs Group Inc. will post its first quarterly loss and that Google Inc.'s sales will be hurt by the slowing economy.
The Standard & Poor's 500 Index fell 1.4 percent after advancing as much as 2.3 percent on China's announcement of a $586 billion economic stimulus and the U.S. government's expanded rescue of insurer American International Group Inc. The Dow Jones Industrial Average decreased 0.9 percent after earlier gaining as much as 2.4 percent
China's stimulus plan, equivalent to almost a fifth of last year's gross domestic product, was announced yesterday as major export markets slumped. Japan will contract 0.2 percent next year, the U.S. by 0.7 percent and the euro area 0.5 percent, while China will expand 8.5 percent, the International Monetary Fund said last week.
The Group of 20 industrial and emerging nations, meeting yesterday in Sao Paulo, said they're ready to act ``urgently'' to support global growth. The group called on countries to cut interest rates and raise spending to combat the threat of a global recession. The leaders of the industrial and emerging countries, due to gather Nov. 14 and 15 in Washington, will consider steps ranging from raising bank-capital standards to regulating hedge funds.
Gains in the euro may be curbed after European Central Bank President Jean-Claude Trichet said at a press conference in Sao Paulo that receding inflation may allow central banks to further reduce interest rates to tackle the economic slowdown.
``There's talk of more ECB rate cuts, given the pessimistic outlook on Europe's economies,'' said Tsutomu Soma, a bond and currency dealer at Okasan Securities Co. in Tokyo. ``The medium- to long-term downtrend for the euro is likely to persist.''
Traders increased bets the ECB will reduce its 3.25 percent rate in the first quarter of next year.

Stocks extend their declines. The only sector that remains in positive territory is telecom (+0.1%).

NYMEX December light sweet crude oil futures hold at $59.93 per barrel after trading in a
$59.10 to $65.56 range.

Stocks climbed Monday morning as investors welcomed the government's revamp of its AIG bailout and news that China has initiated a $586 billion stimulus plan.
All three major gauges had been higher in the early going.
Monday brought a heavy spate of corporate news, including AIG's huge restructuring and Circuit City's bankruptcy.
The federal government said Monday it was restructuring AIG's bailout plan, buying $40 billion in preferred stock, reducing its original $85 billion bridge loan to $60 billion, and cutting the interest rate by 5.5 percentage points. The total reworked deal is worth about $152.5 billion. The reworking reflects and acknowledgement that the initial plan was insufficient to reverse AIG's slide.
Additionally, AIG reported a steep quarterly loss of $24.5 billion in the third quarter. Shares gained 20%.
Fannie Mae another company that nearly went under as a result of the subprime mortgage crisis, reported a steep quarterly loss of $29 billion. A large portion of the loss was due to a change in the way it accounts for tax credits. But even without that, results were far worse than a year ago, due to bad mortgage bets. In September, the government took over Fannie Mae and Freddie Mac. Shares gained 4%.
Package-delivery firm DHL became the latest corporation to announce massive layoffs. DHL said it will cut 9,500 jobs as it ends air and ground operations within the U.S., focusing only on deliveries between the U.S. and other nations.
The recession has sparked layoffs in a number of industries, with the Labor Department reporting on Friday that the 2008 tally stands at 1.2 million.
Circuit City said last week that it would cut 17% of its domestic workforce and close 150 stores amid the sluggish economy and consumer spending slowdown. On Monday, the company filed for bankruptcy protection.
On the upside, McDonald's said worldwide sales at stores open a year or more jumped 8.2% in October, thanks to overseas consumers and demand for cheap food amid the recession. Shares gained 2%.
COMEX gold for December delivery rallied $29.40 to $763.60 an ounce.
The credit market continued to improve. The 3-month Libor fell to 2.24% from 2.29% Friday, a nearly four-year low, according to Dow Jones. Overnight Libor inched higher to 0.35% from 0.33% Friday, after hitting an all-time low of 0.32% last week. Libor is a key interbank lending rate.
Treasury prices dipped, lifting the yield on the benchmark 10-year note to 3.81% from 3.78% late Friday. Treasury prices and yields move in opposite directions.

The euro found renewed demand below $1.2800 on earlier dips and the latest dip was no exception. There seems to be a reluctance to return to overnight lows near $1.2780, even with US stocks paring thebulk of earlier gains.

-Major measures already undertaken to restore liquidity
-Banks may just need time to grasp that liquidity moves are in place
-Global market correction is ongoing; no projection when it will end

Recovery in Dollar trade weighted index is triggering profit-taking in crude oil prices, which is now paring back overnight gains inspired by China fiscal stimulus package. WTI Nymex crude oil is at $63.60, up $2.56 on session, and down from earlier high at $65.56.

Traders note only tepid interest in putting on yen carry trades, despite the positive stock open. The market was leaning long euros because of expected demand for euro-yen at the US stock open. This did not materialize to the degree expected, and so the euro is edging lower currently (along with euro-yen), they say. A break above earlier highs near $1.2925-30 will suggest scope for a return to the Nov 6 peak at $1.2965. Should stock gains escalate, and there is renewed
demand for euro-yen, traders would not be surprised to see $1.3000 break, fairly easily. Attention would then shift to last week's highs near $1.3116.

EUR/USD $1.2850, $1.2975
USD/JPY Y97.00, Y97.95, Y99.00, Y100.00
EUR/CHF Chf1.5000, Chf1.5050
EUR/GBP stg0.8100

European equity bourses are maintaining opening gains but off their best levels ahead of the Wall Street open. Oil and mining stocks are leading the charge higher on back of gains in underlying commodity markets, with move supported by the 4 trillion yuan ($586 billion) stimulus package announced by the Chinese government over the weekend. CAC-40 is up 86pts (+2.47%), Xetra-DAX is up 110pts (+2.22%) and FTSE-100 is up 102pts (+2.33%).

A higher start is expected (S&P futures +21.40, Nasdaq +32.50). Fannie Mae reported a third quarter loss of $13.00 per share, or $29 billion, which may not be comparable to the First Call consensus estimate that called for a loss of $1.60. Ford Motor had it price target cut to $1 from $4 at Credit Suisse, citing Ford's worse-than-expected third quarter results. Earlier, Deutsche Bank downgraded General Motors to Sell from Hold and cut its price target to $0 from $4, noting without government intervention, GM may not be able to fund its U.S. operations beyond December. Separately, Deutsche Post AG plans to close all of its DHL Express service centers, cut 9,500 jobs in the U.S. and discontinue U.S.-only domestic land and air shipping, the AP reported.
Crude prices are up 7.0% to $61.04 per barrel, aided by news of China's fiscal stimulus plan.
China announced a $586 billion fiscal stimulus and the U.S. government replaced its $123 billion aid to AIG (AIG) with a larger $150 billion package. AIG also reported a third quarter loss of $3.42 per share, which was worse than the expected loss of $0.90 per share.

Data:
00:30 AUS RBA Monetary Policy Statement
09:30 UK PPI (Input) (October) adjusted -5.6% -2.6% -1.2%
09:30 UK PPI (Input) (October) unadjusted Y/Y 13.8% 18.0% 24.5%
09:30 UK PPI (Output) (October) unadjusted -1.0% -0.4% -0.3%
09:30 UK PPI (Output) (October) unadjusted Y/Y 6.8% 7.4% 8.5%
09:30 UK PPI Output ex FDT (October) adjusted -0.5% -0.1%
09:30 UK PPI Output ex FDT (October) unadjusted Y/Y 4.9% 5.1% 5.4%

The yen declined for a second day against the euro on speculation a $586 billion stimulus package unveiled by China will give investors more confidence to buy higher-yielding assets using money borrowed in Japan.
The yen fell the most versus the South African rand and Australian dollar as stocks and commodities rose following China's announcement. The dollar weakened against the euro, British pound and Indian rupee after the Group of 20 nations said it's ready to act ``urgently'' to prop up global growth.
``China and the tone of the G-20 meeting are clearly going to provide some support to the economic outlook,'' said Tony Morriss, a currency strategist at Australia & New Zealand Banking Group Ltd. in Sydney. ``This would reduce risk aversion. The yen looks weak overall.''
China's stimulus plan, equivalent to almost a fifth of last year's gross domestic product, is a response to a slump in its major export markets. Japan will contract 0.2 percent next year, the U.S. by 0.7 percent and the euro area 0.5 percent, while China will expand 8.5 percent, the International Monetary Fund said last week, predicting the first simultaneous recession in the U.S., Japan and euro region in the post-World War II era.
Stocks rose in Europe and Asia today and U.S. index futures climbed as appetite for higher-yielding assets improved. The MSCI World Index added 1.5 percent. Europe's Dow Jones Stoxx 600 Index advanced 2.7 percent and futures on the Standard & Poor's 500 Index climbed 2.1 percent. The MSCI Asia Pacific Index added 3.1 percent.
``Optimism over China's stimulus plan is contributing to stock market gains,'' said Takeshi Tokita, vice president of foreign-exchange sales in Tokyo at Mizuho Corporate Bank, a unit of Japan's second-largest publicly traded lender. ``This is helping to calm investor sentiment and causing the yen to weaken.''


EUR/USD found the base at $1.2790 before posted session high at $1.2920. Bids located at $1.2730/40, offers on approach to $1.2950.

EUR/USD $1.2850, $1.2975
USD/JPY Y97.00, Y97.95, Y99.00, Y100.00
EUR/CHF Chf1.5000, Chf1.5050
EUR/GBP stg0.8100

The yen declined for a second day against the euro on speculation a $586 billion stimulus package unveiled by China will give investors more confidence to buy higher-yielding assets using money borrowed in Japan.
The yen fell the most versus the South African rand and Australian dollar as stocks and commodities rose following China's announcement. The dollar weakened against the euro, British pound and Indian rupee after the Group of 20 nations said it's ready to act ``urgently'' to prop up global growth.
``China and the tone of the G-20 meeting are clearly going to provide some support to the economic outlook,'' said Tony Morriss, a currency strategist at Australia & New Zealand Banking Group Ltd. in Sydney. ``This would reduce risk aversion. The yen looks weak overall.''
China's stimulus plan, equivalent to almost a fifth of last year's gross domestic product, is a response to a slump in its major export markets. Japan will contract 0.2 percent next year, the U.S. by 0.7 percent and the euro area 0.5 percent, while China will expand 8.5 percent, the International Monetary Fund said last week, predicting the first simultaneous recession in the U.S., Japan and euro region in the post-World War II era.
Stocks rose in Europe and Asia today and U.S. index futures climbed as appetite for higher-yielding assets improved. The MSCI World Index added 1.5 percent. Europe's Dow Jones Stoxx 600 Index advanced 2.7 percent and futures on the Standard & Poor's 500 Index climbed 2.1 percent. The MSCI Asia Pacific Index added 3.1 percent.
``Optimism over China's stimulus plan is contributing to stock market gains,'' said Takeshi Tokita, vice president of foreign-exchange sales in Tokyo at Mizuho Corporate Bank, a unit of Japan's second-largest publicly traded lender. ``This is helping to calm investor sentiment and causing the yen to weaken.''

Resistance 3: Y100.55
Resistance 2: Y98.90
Resistance 1: Y98.40
Current price: Y97.33
Support 1: Y96.10
Support 2: Y95.70
Support 3: Y94.60

Comments: Dollar-yen still sees daily studies encouraging a test of Y100.55/85, although the market has slipped under the 5&21-DMAs. Further Fibonacci resistance is at Y101.50, while support is at Y96.10 and the Tenkan line at Y95.70. Initial resistance is now the 5-day moving average and Kijun line at Y98.40/90.

Resistance 3: Chf1.1950
Resistance 2: Chf1.1890
Resistance 1: Chf1.1800
Current price: Chf1.1740
Support 1: Chf1.1675
Support 2: Chf1.1575
Support 3: Chf1.1480
Comments:

Resistance 3: $1.6050
Resistance 2: $1.5920
Resistance 1: $1.5880
Current price: $1.5802
Support 1: $1.5540
Support 2: $1.5400
Support 3: $1.5260
Comments: Cable is still failing to build significantly on the recent double-day low and the daily stochastic remains in neutral territory. Resistance comes at $1.5880 (Friday high) and $1.5920 (resistance since October 20). Stronger one remains at $1.6050 and 21-DMA now near $1.6320. Closest support spotted at the Friday's session low $1.5535/40. A decisive break below October 28 low $1.5400 puts October 24, 27 low at $1.5260/80 back in focus.

Resistance 3: $1.3110
Resistance 2: $1.3020
Resistance 1: $1.2940
Current price: $1.2897
Support 1: $1.2680
Support 2: $1.2530
Support 3: $1.2330

Comments: Closest resistance is $1.2940 and $1.3020 ( 21DMA, and upper bound of the triangle) and sustained break above will lead to retest of November 5 high at $1.3110/20 . October 30 peak $1.3300 (38.2% of the $1.4860 decline) remains pivotal resistance.

Closest support is the lower bound of the continuation triangle pattern currently around $1.2680/85. Further down rests Nov 4 low $1.2530.October 27 and 28 lows at $1.2330 area remain the key target.

The yen declined for a second day against the euro on speculation China's $586 billion stimulus package will give investors more confidence to buy higher- yielding assets using money borrowed in Japan.
The boost to China's economy, the world's fourth largest, improved risk appetite. The dollar also weakened against the euro, and the British pound after the Group of 20 nations said they are ready to act ``urgently'' to prop up global growth at a meeting yesterday in Sao Paulo.
EUR/USD started the day at $1.2775 before traded within $1.2780- $1.2900. Bids located at $1.2730/40, offers on approach to $1.2890/$1.2900 and $1.2950.

USD/JPY

--Oct nsa core producer output prices: -0.5% m/m; +4.9% y/y
--Oct nsa producer input prices: -5.6% m/m; +13.8% y/y
--Oct output, input prices fall at fastest monthly pace on record

The pare is pressing back above $1.2850 as euro-yen regains a bid tone, with little seen in the way of supply now ahead of the overnight highs around $1.2900. Additional supply comes in at $1.2950/55, with decent resistance coming at $1.3000 (21-day m/a).

-- Remaining level of tension in financial markets that doesn't take account of recent decisions.
-- Calls on commercial banks to speed up process of fully taking into account govt and cenbank decisions.
-- Primary mandate today and tomorrow is price stability.

Resistance 3: Y100.55
Resistance 2: Y98.90
Resistance 1: Y98.40
Current price: Y97.33
Support 1: Y96.10
Support 2: Y95.70
Support 3: Y94.60

Comments: Dollar-yen still sees daily studies encouraging a test of Y100.55/85, although the market has slipped under the 5&21-DMAs. Further Fibonacci resistance is at Y101.50, while support is at Y96.10 and the Tenkan line at Y95.70. Initial resistance is now the 5-day moving average and Kijun line at Y98.40/90.

Resistance 3: Chf1.1950
Resistance 2: Chf1.1890
Resistance 1: Chf1.1800
Current price: Chf1.1780
Support 1: Chf1.1675
Support 2: Chf1.1575
Support 3: Chf1.1480
Comments:

Resistance 3: $1.6050
Resistance 2: $1.5920
Resistance 1: $1.5880
Current price: $1.5702
Support 1: $1.5540
Support 2: $1.5400
Support 3: $1.5260
Comments: Cable is still failing to build significantly on the recent double-day low and the daily stochastic remains in neutral territory. Resistance comes at $1.5880 (Friday high) and $1.5920 (resistance since October 20). Stronger one remains at $1.6050 and 21-DMA now near $1.6320. Closest support spotted at the Friday's session low $1.5535/40. A decisive break below October 28 low $1.5400 puts October 24, 27 low at $1.5260/80 back in focus.

Resistance 3: $1.3300
Resistance 2: $1.3110
Resistance 1: $1.3040
Current price: $1.2797
Support 1: $1.2680
Support 2: $1.2530
Support 3: $1.2330

Comments: Gains in the euro, which gained support against the dollar on euro-yen rise, may be curbed after European Central Bank President Jean Claude-Trichet yesterday said that he can't rule out a further reduction in interest rates next month. Besides, any losses in the dollar likely be limited on speculation U.S. investors will repatriate funds held in overseas stocks and bonds on concern the global economy will slow further. Closest resistance is $1.3040 ( 21DMA, and upper bound of the triangle) and sustained break above will lead to retest of November 5 high at $1.3110/20 . October 30 peak $1.3300 (38.2% of the $1.4860 decline) remains pivotal resistance. Closest support is the lower bound of the continuation triangle pattern currently around $1.2680/85. Further down rests Nov 4 low $1.2530.October 27 and 28 lows at $1.2330 area remain the key target.

The benchmark S&P500 was ahead by 16.4 points at 952.6, with the Nasdaq Dec contract gaining 22.25 points to stand at 1310.75.

FTSE up 126, the DAX up 140, the CAC up 116 and the Eurostoxx 50 up 110.

The benchmark Nikkei 225 was higher by 470.9 points, or 5.49%, to stand at 9053.90. The broader-based TOPIX gained 36.52 points, or 4.15%, to stand at 915.52.

The front-month WTI Nymex Dec 08 contract was last ahead by $2.44 at $63.48, having traded as high as $64.30.

00:30 AUS RBA Monetary Policy Statement
09:30 UK PPI (Input) (October) adjusted -2.6% -1.2%
09:30 UK PPI (Input) (October) unadjusted Y/Y 18.0% 24.5%
09:30 UK PPI (Output) (October) unadjusted -0.4% -0.3%
09:30 UK PPI (Output) (October) unadjusted Y/Y 7.4% 8.5%
09:30 UK PPI Output ex FDT (October) adjusted -0.1%
09:30 UK PPI Output ex FDT (October) unadjusted Y/Y 5.1% 5.4%
13:15 Canada Housing Starts s.a (YoY) (Oct) 217.6K
13:30 Canada New Housing Price Index (YoY) (Sep) 2.3%
21:45 NZ Producer Price Index - Input (QoQ) (3Q) 5.6%
21:45 NZ Producer Price Index - Output (QoQ) (Oct) 3.5%
23:50 Japan Money Supply M2+CD (YoY) (Oct) 2.2%
23:50 Japan Adjusted Current Account (Sep) ¥903.2B
23:50 Japan Trade Balance - BOP Basis (Sep) -¥236B