Media group, Meredith Corp (MDP: chart) said first quarter net income from continuing operations increased to $33 million, up 9.4% from $30.4 million a year earlier. The results were driven by 16% operating profit increase to $55 million in the publishing unit.

Per share earnings were up 10% at 68 cents from 62 cents from a year ago.


9:35AM New York – U.S. stocks open lower on larger than expected loss at Merrill Lynch.

U.S. market averages are trading lower at the opening. Merrill Lynch reported bigger than expected loss in the subprime lending business hurting the averages at the open.

Merrill Lynch reported a net loss of $2.24 billion compared to net income of $3.02 billion from a year ago. Earnings per share were recorded at a loss of $2.82 compared to profit of $3.17.

Merrill reported third quarter loss in the fixed income trading which included losses subprime and leveraged loans of $7.9 billion. The investment banker and broker also reported losses of net $463 million for leveraged loan and corporate financing activities.

Earlier Merrill had suggested that it could lose up to 50 cents per share on write down of $4.5 billion in the mortgage and asset backed loans.

Ambac Financial Group (ABK: chart) reported third quarter loss of $360 million or $3.51 per share compared to net income of $213 million or $1.98 per share. The company had earlier reported a loss from credit derivative of $743.4 million or $5.29 per share.

CME Group (CME: chart) third quarter revenue increased 106% to $565 million and net income increased 94% to $202 million, and earnings per share increase 31% to $3.87 from $2.95 a year ago. The results include the merged operations of Chicago Board of Trade after July 12, 2007.

European stocks at mid-day trading were mixed ahead of the U.S. market opening. Norway led the gainers with a rise of 0.4% followed by fractional gains in UK, France, and Switzerland. Spain led the decliners with a loss of 0.9% followed by fractional declines in Germany, Belgium, and the Netherlands.

Earnings results drove stocks higher. STMicroelectronics surged 6% after reporting higher sales and earnings. UK retailer Home Retail added 4% after its earnings nearly tripled for the first half of the year. Volvo jumped 7% after reporting third quarter earnings and indicating that truck sales increased 90% in Europe.

Asian markets fell after a week of steady rise. Banks fell in Japan, Shanghai, and Hong Kong.

Singapore led the decliners in the region with a loss of 1.3% followed by losses in Indonesia of 1.1%, South Korea of 0.8%, Taiwan of 0.6%, and in Australia of 0.4%. Pakistan fell 1.83%. Philippines led the gainers in the region with a rise of 1.8% followed increases of 0.7% in Thailand. India, Shanghai, and Malaysia edged up by a fraction.


6:00 AM New York, 7:00PM Tokyo - Merrill Lynch loss weighs on financial stocks in Tokyo. Japan’s September trade surplus surged 62.7% to 1.64 trillion yen.

Japan stock index reversed morning gains to slump 0.56% on the news that U.S broker and investment banker Merrill Lynch was likely to report wider than estimated loss of $5 billion.

In Tokyo trading Nikkei 225 shed 0.56% or 92.19 to 16,358.39, while the broader Topix Index lost 0.4% to 1,563.86.

In the first section of the Tokyo Stock Exchange 7.9 billion shares worth one trillion yen were traded and 230 million shares valued at 5.3 billion changed hands in the second section.

Of the Nikkei 225 stocks, 71 gained, 150 declined, and 4 were unchanged. Sixty six stocks in the index lost 1% or more. Exporters retreated on firming yen, spurred by positive trade data. Sony Corp plunged 0.96%, Toshiba fell 2.56%, and Toyota Motor Corporation slipped 2.27%.

Ministry of Finance in Japan reported today that the overall shipments firmed in September to a record 41.8 trillion yen boosted by demand in Asia and Europe. Imports however declined 3.2% last month, the first time since February 2003, spurring trade surplus to climb 62.7% to a record 1.64 trillion yen from a year earlier.

Exports jumped 6.5% from a year ago in September compared to increase of 14.5% in August and less than 8.1% projected by analysts. Exports to the U.S. fell 9.2% as demand for construction equipment and automobiles declined.