Traders work on the floor of the New York Stock Exchange, July 10, 2012.

NEW YORK | Sat Sep 29, 2012 4:17am EDT

NEW YORK (Reuters) - Wall Street will open October with a busy week, highlighted by low expectations for global manufacturing data and the U.S. jobs report, but that could set the stage for positive surprises that help lift the market.

The S&P 500 .INX.SPX finished its third positive quarter in the last four on Friday, despite suffering its largest weekly percentage decline since June. For the past three months, the S&P 500 gained 5.9 percent - its best third quarter since 2010. In contrast, the index was down 1.3 percent for the week.

The benchmark S&P 500 earlier this month reached its highest level since late 2007. Yet uncertainty remains over whether stocks can hold their gains against the headwinds of a struggling economy. That explains, in part, the retreat over the last several days.

The S&P 500 hit a high of 1,474.51 in mid-September before pulling back by a bit more than 2 percent. A run at 1,500 seems possible, but the flurry of economic and world events ahead probably will prevent a major advance in the coming week.

Bulls are betting this week's Spanish budget proposals will be a preamble to a bailout request by Mariano Rajoy's government. The move would be seen as a first step to get the finances of the euro zone's fourth-largest economy in order and would clear some of the market uncertainty regarding the euro zone crisis.

Monetary policy is also on the list of market catalysts next week. Federal Reserve Chairman Ben Bernanke is scheduled to speak on Monday and the minutes of the latest FOMC meeting are set for release later in the week. The week's agenda includes meetings of the European Central Bank, the Bank of England and the Bank of Japan.

"I think we could see a rebound next week if we get some of the stars aligning and have Spain ask for a bailout, the ECB announcing favorable terms for that bailout, and if we see the Bank of Japan announce further monetary intervention," said Brian Jacobsen, chief portfolio strategist at Wells Fargo Funds Management in Menomonee Falls, Wisconsin.

"If Spain and the ECB don't deliver, we could set ourselves up for a further lateral move in the markets. A negative would be if Rajoy flat-out denies that they need a bailout."

The ECB and BOJ are set to meet on Thursday, with the Bank of Japan's meeting extending until Friday.

FACTORIES, JOBS AND THE DEBATES

Chinese factory and business conditions data will kick off a numbers-heavy calendar for markets. Manufacturing PMI, due on Monday, is expected to show a second straight month of contraction.

A snapshot of U.S. manufacturing activity will be provided on Monday when the Institute for Supply Management releases its September index. The September ISM reading is expected to show another month of contraction, but at a slightly slower pace than in August. On Wednesday, the ISM will release its U.S. services-sector Purchasing Managers' Index, which could show a slight deceleration in the pace of growth in the non-manufacturing sector.

"We have Chinese economic data over the weekend, and we'll see how markets react on Monday," said Wasif Latif, vice president of equity investments at San Antonio, Texas-based USAA Investment Management.

"It seems like the market is bracing for bad numbers, meaning if they're not as bad, it could be market-positive," Latif said.

Non-farm payrolls for September, due on Friday, are seen up 115,000, while the U.S. unemployment rate is seen ticking up 0.1 percent from August to 8.2 percent in September.

The jobs data will come on the heels of the first of three U.S. presidential debates, scheduled for Wednesday night. Recent poll numbers point to a strengthening lead by President Barack Obama, but a weak payrolls reading could give some hope to Republican challenger Mitt Romney.

"If Romney doesn't turn the ship with a very strong (debate)performance, the president is going to win," said Jack de Gan, chief investment officer at Harbor Advisory Corp in Portsmouth, New Hampshire.

He said the trend in the polls has taken away some of the market uncertainty regarding the presidential election. He added that an ECB- or Spain-related headline out of Europe on Thursday could overcome almost anything that would happen Wednesday night during the debate.

"I think the market is coming to terms with the fact the president is ahead, and unless something significant changes, (he) will prevail."

(Wall Street Week Ahead runs every Friday. Questions or comments on this column can be emailed to: rodrigo.campos(at)thomsonreuters.com)

(Editing by Jan Paschal)

View the original article here

Rebel Wilson arrives for a premiere at the Sundance Film Festival in Park City, Utah, in this January 23, 2012 file photo.

LOS ANGELES | Fri Sep 28, 2012 3:06pm EDT

LOS ANGELES (Reuters) - Playing a character called Fat Amy is probably not the dream of most Hollywood actresses but Australian comedienne Rebel Wilson enjoys breaking the rules - and she's not about to stop eating dessert.

After several small but memorable roles in films such as "Bridesmaids" and "Bachelorette," the 27-year-old Wilson looks poised to make it big in the musical film "Pitch Perfect," which opens in U.S. movie theaters on Friday.

The film, about an all-girls college singing group competing against male rivals, has an ensemble cast that includes Anna Kendrick, Brittany Snow and R&B singer Ester Dean.

But it is Wilson who steals the show with wild antics and improvised one-liners as singer Fat Amy, a cardio-averse, over-confident member of acapella group The Bellas.

Variety's review said the "picture belongs to Wilson," adding that the actress "fearlessly steps into yet another part that pokes fun at her figure, and happily reveals an outsized singing voice and hilarious dance moves to match."

Boxoffice Magazine wrote that Fat Amy "is the role that will turn her into a star," pointing out that Wilson is "hilariously, thrillingly crude" and "could very easily gobble up the film if she weren't such a generous ensemble performer."

Wilson has no qualms about making fun of her own figure.

"In comedy, you've got to use what you've got," Wilson told Reuters. "I'm not a size two, so of course I'm going to use that physicality to my advantage."

Weight maybe be a factor in her newfound Hollywood career but she is conscious about staying healthy.

"You need to have a lot of stamina to do this (job,)" she points out. "I try to be healthy. I train three days a week with a trainer. But I do like to eat, clearly. And I do eat dessert every day. If I cut that out, yes, I would lose weight."

At the moment, however, she has no plans to cut anything out and is enjoying breaking down barriers.

She recently finished shooting action comedy "Pain and Gain" directed by Michael Bay, a filmmaker known for working with models and directing commercials for Victoria's Secret.

"Guess what I wear in the movie? Victoria's Secret underwear - that's all I'm dressed in," said Wilson.

"I know I'm not the physical body type that he usually casts, but for some reason he likes me and thinks I'm funny, so maybe I'm changing his mind," she said of the director.

HALLUCINATION

Wilson's physical stature was never something she thought would be a factor when it came to her career because she did not set out to be an actress.

She graduated from the University of New South Wales with a law degree and was a Rotary International youth ambassador for Australia, stationed in South Africa. While there, she contracted malaria, an event she called "life-changing."

"When I was in the hospital in intensive care, I had this hallucination that I was an actress and that I was really, really good, and that I won an Oscar," Wilson recalled.

She decided to make a career change. Unable to find acting work or an agent, she wrote and starred in her own play, "The Westie Monologues," which became a huge success in Sydney.

That led to professional work on Australian television shows and she eventually came to the United States. Last year's comedy hit "Bridesmaids" - in which she played Kristen Wiig's slacker, diary-reading roommate - put her instantly on the map.

"That really set the bar high," Wilson admitted. "I got a lot of movies off the back of that."

She'll soon be getting more exposure in the TV comedy "Super Fun Night," which was picked up by ABC this month. In yet another sign that she's not just another Hollywood actress, she wrote the script for herself to star in.

(Reporting By Zorianna Kit, editing by Jill Serjeant and Claudia Parsons)

View the original article here

Traders work on the floor of the New York Stock Exchange, September 20, 2012.

NEW YORK | Thu Sep 27, 2012 4:44pm EDT

NEW YORK (Reuters) - The S&P 500 snapped a five-day string of declines in a broad-based rally on Thursday, as Spain's plans for economic reform eased some worries about one of the euro zone's most troubled countries.

The benchmark S&P 500 rose 1 percent, its biggest percentage gain since the Federal Reserve announced its plan for a third round of stimulus on September 13.

Spain announced a detailed timetable for economic reforms for the fiscally troubled nation and a tough 2013 budget based mostly on spending cuts.

"Any information that gives some understanding about what's going to happen is good for the market. It's small news, but more certainty is good," said Giri Cherukuri, head trader at OakBrook Investments LLC in Lisle, Illinois.

The EU's Economic and Monetary Affairs Commissioner, Olli Rehn, said Spain's detailed timetable for economic reforms goes beyond what the European Commission has asked of Spain. Rehn said it is an ambitious step forward.

Gold stocks ranked among the day's bigger gainers in the wake of Spain's news; the PHLX gold/silver index .XAU jumped 3 percent.

Adding to the rally was a last-minute push by investors to reposition portfolios ahead of the quarter's end, with the S&P 500 on track for a gain of 6.2 percent in the third quarter. Friday will be the quarter's last trading day.

"What we've seen is broadly a consolidation, but also an attempt by fund managers to position properly for the rest of the year, to be in the best sectors," said Bruce Zaro, chief technical strategist at Delta Global Asset Management in Boston.

The Dow Jones industrial average .DJI shot up 72.46 points, or 0.54 percent, to 13,485.97 at the close. The Standard & Poor's 500 Index .SPX rose 13.83 points, or 0.96 percent, to finish at 1,447.15. The Nasdaq Composite Index .IXIC gained 42.90 points, or 1.39 percent, to close at 3,136.60.

While the Nasdaq led Thursday's gains, it also led the market's declines earlier this week - its volatility possibly reflecting investors' nervousness about the U.S. economic outlook, analysts said.

Apple (AAPL.O), up 2.4 percent at $681.32, gave the biggest lift to the Nasdaq. The semiconductor index .SOX gained 2.3 percent, bolstering the Nasdaq 100 .NDX. Intel Corp (INTC.O) was up 1.9 percent at $23.09.

After the bell, U.S.-listed shares of Research In Motion (RIMM.O) surged 15 percent to $8.21 after the Canadian maker of the BlackBerry reported a smaller-than-expected quarterly loss.

On the deal-making front, Tempur-Pedic International Inc (TPX.N) agreed to buy rival mattress maker Sealy Corp (ZZ.N) for about $242 million and assume about $750 million in debt. Tempur-Pedic shares jumped 14.4 percent to $30.64, while Sealy's stock rose 2.3 percent to $2.19.

In the earnings realm, Discover Financial Services (DFS.N) reported third-quarter earnings that beat expectations - and its shares climbed 7.3 percent to $39.71.

Stocks were rising before Spain's announcement on hopes that China would take steps to spur its slowing economy.

China has severely underestimated this year's global economic slowdown, and further cuts to Chinese interest rates or bank reserve requirements will hinge on any new deterioration in the external environment, a central bank adviser said on Thursday.

U.S. economic data was mixed. A report showed initial jobless claims dropped by 23,000 to 359,000, sharply exceeding the decline of 4,000 that had been expected.

But the final read on second-quarter gross domestic product showed growth of just 1.3 percent, weaker than an expected 1.7 percent. And August durable goods orders tumbled 13.2 percent, much more than the expected drop of 5 percent.

Volume was below average at roughly 5.74 billion shares traded on the New York Stock Exchange, the Nasdaq and the Amex, compared with the year-to-date average daily closing volume of 6.53 billion.

Advancers outnumbered decliners on the NYSE by a ratio of slightly more than 3 to 1,and on the Nasdaq, about three stocks rose for every one that fell.

(Editing by Jan Paschal)

View the original article here

A ''for sale'' sign is seen outside a home in New York June 19, 2012.

WASHINGTON | Thu Sep 27, 2012 10:09am EDT

WASHINGTON (Reuters) - Contracts to buy previously owned U.S. homes slipped in August due to a shortage of lower priced inventory in most of the country, an industry group said on Thursday.

The National Association of Realtors said its Pending Home Sales Index, based on contracts signed in August, fell 2.6 percent to 99.2, but was 10.7 percent higher than last year.

July's reading was revised up to 101.9, the highest level since April 2010, when buyers were racing to use the home-buyer tax credit before the deadline, the group said.

"The performance in month-to-month contract signings has been uneven with ongoing shortages of lower priced inventory in much of the country," the association's chief economist, Lawrence Yun, said in a statement.

(Reporting by Rachelle Younglai; Editing by Neil Stempleman)

View the original article here

1 of 5. A BAE Systems sign is seen outside the company's Warton site near Preston, northern England, in this file picture taken October 1, 2009.

PARIS | Thu Sep 27, 2012 5:58pm EDT

PARIS (Reuters) - Europe's EADS (EAD.PA) rejected calls on Thursday to allow extra time for negotiations over a $45 billion merger with BAE Systems (BAES.L), as brinkmanship looked set to play a key role in politically complex plans to create a new defense giant.

Fabrice Bregier, head of the Airbus planemaker unit and part of the inner circle running Franco-German-Spanish EADS, was quoted as saying it was crucial to stick to the date set by UK regulators under rules designed to protect investors.

"The importance is that opinions converge. The October 10 deadline may seem soon but it is absolutely necessary given the environment," Bregier told the French daily Les Echos in an interview to be published on Friday.

EADS (EAD.PA) and BAE are in talks to create what would be the world's largest defense company. But their efforts have become snagged on differences over control between France and Germany while there are also political concerns about jobs.

German Defence Minister Thomas de Maiziere joined France in pressing the companies to seek an extension of the UK deadline in order to give politicians more room to bridge differences.

"Perhaps we need more time. It depends on the answers for our questions and so I think we need more time," de Maiziere told reporters at a meeting in Cyprus.

France and Germany want to safeguard their influence over EADS while special arrangements will be needed to ringfence sensitive operations, including work BAE does in the United States and on Britain's nuclear submarines.

In the past two weeks, investors uncertain about the deal have stripped 4 billion euros from the value of EADS, illustrating the risk Chief Executive Tom Enders could face if he agrees to expose the stock to a further month of negotiation.

BAE shares have also shed their initial gains and analysts warn they may struggle to carry investors with them beyond October 10 if the talks show no signs of progress.

Yet with two weeks left, EADS and BAE have little incentive to seek an extension to the deadline.

Softening the deadline would ease pressure on Europe's politicians to come to an agreement acceptable to the companies while placating U.S. and UK fears of political interference.

For these reasons, experts say a bid for an immediate extension is unlikely unless there is progress. But if there is stalemate running up to the deadline, leaders of both companies could play hardball and decide to abandon the plan.

"It's normal that different points of view are expressed. Especially in an operation where states have strategic interests to preserve," Bregier told Les Echos.

"This kind of operation requires rapid decisions and it's not EADS or BAE management pushing, it's the markets and the clients, who want to know what the future of the group will be," he said adding that the current merger plan included guarantees to the United States covering its security concerns.

INFLUENCE AND TRADE-OFFS

The merger to create the world's biggest defense and aerospace company would dilute the influence of the French, German and Spanish governments in the company, prompting negotiations over their roles in the future.

German reservations include how to safeguard jobs and protect the merged firm from any future hostile takeover, a government document obtained by Reuters on Monday showed.

On Wednesday, a French government source said France would want to retain certain rights, as well.

EADS is standing firm, reiterating its "intention and current expectation" to provide further clarity by that date.

Technically, extensions to the UK stock market deadline are relatively simple and are usually granted, lawyers say.

Yet in classic European negotiating style, as seen on issues from farm subsidies to national bailouts, talks generally go down to the wire.

Raising the threat of a missed deadline, or demanding it be kept, is a tried and tested tactic in the brinkmanship so often seen among the 27 nations of the European Union.

De Maiziere called talks with his British and French counterparts on Wednesday evening "constructive".

"This is a complex situation, there are a lot of questions and conditions, nothing has (been) decided yet ... We will keep in contact," he said.

European governments all face severe spending pressures, but a stand-off between France and Germany over control of EADS is seen as the bigger roadblock, rekindling a climate of mistrust which set in during management rows from 2005 onwards.

France holds a 15 percent stake in EADS and wants to retain its right to influence group strategy. Spain owns 5 percent.

Germany is not a direct shareholder but sees the transaction as a chance to enlarge its influence. At the same time, EADS and BAE are pressing for less political influence.

Airbus's Bregier said he did not see the issue of German state participation being an issue in the talks and did not see any reason why measures could not be taken to ensure a balance with France, whose government would end up with a 9 percent share in the new group as plans stand today.

Signs of discord first emerged at the weekend when Reuters reported that France appeared to rebuff German proposals for a common position [ID:nL5E8KLN1G].

EADS and BAE have said they will offer the governments of France, Germany and Britain a "special share" in the new company, allowing them to block any future hostile takeover, but are determined to prevent any meddling in management decisions.

(Additional reporting by Michele Kambas, Adrian Croft, Rhys Jones, Gernot Heller, Mark John, Catherine Bremer; editing by Jason Neely, Bernard Orr)

View the original article here