GLOBAL MARKETS-Oil rally helps lifts equities; Wall St at record

Dear Viewers,

NEW YORK U.S. stocks climbed on Monday to set a record peak and European equity markets also advanced, buoyed by strong gains in the energy sector as oil prices surged to a three-week high.

Both Brent and U.S. crude LCOc1 jumped more than 4 percent to hit their highest levels in about three weeks, as the dollar weakened. The gains were also helped by comments by Russian President Vladimir Putin that raised expectations major oil producing countries could reach a deal to limit output at a meeting next week.

Among U.S. equities, the S&P energy index .SPNY gained 2.1 percent as the top-performing sector, helping to push the benchmark S&P 500 index above its intraday record of 2,193,81 set on Aug. 15. The advance put the index on pace to set a closing high.

"It’s in that mindset now, we have broken up and out, we are testing the highs, so new highs beget new highs," said Ken Polcari, director of the NYSE floor division at O’Neil Securities in New York. "Now it’s all psychological."

The Dow Jones industrial average .DJI rose 65.85 points, or 0.35 percent, to 18,933.78, the S&P 500 .SPX gained 14.38 points, or 0.66 percent, to 2,196.28 and the Nasdaq Composite .IXIC added 39.73 points, or 0.75 percent, to 5,361.24.

The Nasdaq hit an intraday record for a second day, reaching as high as 5,364.76, but market participants cautioned that volume was likely to be light this week ahead of the U.S. Thanksgiving Day holiday on Thursday.

The climb in oil lifted European markets, with the STOXX Europe oil & gas index .SXEP up 2.1 percent. Europe's index of leading 300 shares .FTEU3 closed up 0.3 percent. MSCI's all-country world index .MIWD00000PUS advanced 0.6 percent.

The dollar .DXY eased 0.06 percent to 101.15 against a basket of major currencies, pausing after a 10-day streak that saw it gaining nearly 5 percent. That rally was fueled by expectations of policies by U.S. President-elect Donald Trump that would lead to interest rate increases.

In similar fashion, U.S. Treasury yields, which have soared in the wake of the U.S. election, declined from one-year highs as the recent selloff tempted some new buyers. Benchmark 10-year note yields US10YT=RR jumped as high as 2.36 percent on Friday and were last up 2/32 in price to yield 2.3298 percent.

Sterling GBP= climbed 1 percent against the dollar to $1.2461 as the market processed British Prime Minister Theresa May's latest hints on the possible shape of Britain's exit from the European Union.

Copper prices CMCU3, which have risen on Trump's promise to spend heavily on infrastructure, were up 2.4 percent CMCU3 at $5,553.50 a tonne on the prospect of better demand in top consumer China and on the dip in the greenback.

The pause in the U.S. dollar rally helped gold XAU= bounce from a 5-1/2 month low. Spot gold was up 0.2 percent at $1,210.86 an ounce. Thanks.

McDonald's investor renews push for antibiotic reduction in all meat

Dear Viewers,
McDonald's Corp (MCD.N) shareholder is redoubling efforts to convince the fast-food chain to stop all of its global restaurants from serving the meat of animals raised with antibiotics that are vital for fighting human infections.
More than 70 percent of medically important antibiotics in the United States are sold for livestock use. Scientists have warned that the routine use of antibiotics to promote growth and prevent illness in healthy farms animals contributes to the rise of dangerous, antibiotic-resistant "superbug" infections, which kill at least 23,000 Americans each year and pose a significant threat to global health.
The Congregation of Benedictine Sisters of Boerne, Texas, asked directors at McDonald's to prohibit the use of medically important antibiotics in its global poultry supply chain. McDonald's already has adopted that policy for the chicken served in its U.S. restaurants.
The group also asking the fast-food chain to set global targets and timelines for switching to pork and beef raised without the non-therapeutic use of medically important antibiotics.
Just over 20 percent of McDonald's shareholders voted in favor of a similar proposal at this year's annual meeting. The sisters pulled a prior resolution after McDonald's announced its plans to change its policies on chicken in the United States.
The sisters aim to have shareholders vote on the new proposal at McDonald's 2017 annual meeting.
McDonald's told Reuters it continues "to engage with key experts, including some who serve as advisors to the World Health Organization (WHO), to advance progress across the industry."
The company said its current policy "provides guidance to our suppliers in parts of the world where the industry does not yet have systems in place that would allow them to verify compliance throughout the supply chain."
Sister Susan Mika said the resolution is part of an ongoing process.
"I said we will be back," Mika said in a phone interview. "We want them to set goals and to be moving in a certain direction. We expect them to be a leader in taking on these questions of our time."

The sisters are part of the Interfaith Center on Corporate Responsibility (ICCR), which along with ShareAction, Farm Animal Investment Risk & Return (FAIRR) Initiative and As You Sow, also are targeting companies such as Sanderson Farms (SAFM.O) and Yum Brands Inc (YUM.N) with similar campaigns aimed at preserving the efficacy of antibiotics. Thanks.

Volatility shorts cash in despite shock U.S. election

Dear Viewers,

NEW YORK Nov 10 Options traders who had bet that stock market volatility would plummet after the election made outsized gains even if Donald Trump's win seemed to take financial markets by surprise.

The CBOE Volatility Index, the most widely followed gauge of near-term investor anxiety, collapsed on Wednesday, in the largest one-day decline in more than five years.

While a drop in expectations for stock market volatility after a big news event is not unusual, the intensity of this pullback was.

"That's a truly remarkable turnaround in less than one full trading day," said Ophir Gottlieb, chief executive of Los Angeles-based Capital Market Laboratories.

VIX November futures contracts roared to a four-month high of 23.46 on Tuesday night as the results of the election began to favor Trump, counter to earlier expectations that the victor would be Democrat Hillary Clinton.

On Wednesday, the VIX closed down 23 percent at 14.38 and the November futures contracts fell 37 percent from their session peak.

The collapse in volatility was good news for options traders who went against the grain and bet on a decline in stock market volatility even as the options market grew more jittery as Election Day approached.

Even before Election Night, some traders were already betting that volatility would return to pre-election levels, strategists at BNP Paribas said in a note on Thursday.

On November 4, a record 769,214 VIX puts were traded, according to the Chicago Board Options Exchange. Since the VIX usually moves inversely to the stock market and puts offer the opportunity to profit from a decline in the VIX, owning a VIX put is a bet on lower volatility.

The collapse in the VIX makes the value of these puts jump.

For instance, November VIX puts with a strike price of 17 traded as low as $1.05 on Friday. On Thursday, these contracts traded for as much as $3.

On Wednesday, these puts traded in heavy volume, including a large trade were a trader appeared to be selling 26,500 of the contracts for $2.25. While it is not clear when these contracts were bought, they traded for an average price of $1.66 in the two weeks before the election on November 8. Thanks.

GLOBAL MARKETS-Stocks, Mexican peso advance ahead of U.S. election results

Dear Viewers,

NEW YORK Global equity markets climbed and the Mexican peso rallied on Tuesday as investors leaned toward the potential victory of Democratic candidate Hillary Clinton in the U.S. presidential election.

Markets turned higher after treading water for the early portion of the session, although U.S. equities retreated from their session highs.

While the dollar strengthened slightly against a basket of currencies, the Mexican peso shot to a two-month high versus the greenback.

The Mexican currency has been a market proxy for sentiment over the U.S. election and has performed in inverse correlation with Republican candidate Donald Trump's perceived chances of winning the White House. The iShares MSCI Mexico ETF, touched its highest level since mid-August and was last up 2.2 percent.

Mexico is considered most vulnerable to Trump's planned trade policies as 80 percent of its exports go to the United States.

Market participants cited projections from data firm Votecastr, which showed Clinton in the lead in several battleground states.

"The Votecastr thing is absolutely helping the market move higher," said Kim Forrest, senior equity research analyst at Fort Pitt Capital Group. "Investors will take whatever data they can get, although I really don’t know how accurate the data is."

The market has been pricing in a win for Clinton, including a 2 percent jump in the S&P 500 on Monday after the FBI maintained its view that no criminal charges were warranted in a probe over her email practices.

The Dow Jones industrial average was up 70.29 points, or 0.38 percent, to 18,329.89, the S&P 500 gained 6.1 points, or 0.29 percent, to 2,137.62 and the Nasdaq Composite added 20.03 points, or 0.39 percent, to 5,186.20.

Safety play gold weakened, down 0.3 percent to $1,276.65 an ounce and yields on U.S. Treasuries touched a one-week high.

At the end of a bruising election campaign, the Reuters/Ipsos States of the Nation poll gave Clinton a 90 percent chance of defeating Trump and said she was on track to win 303 Electoral College votes out of 270 needed, to Trump's 235.

Europe's index of 300 leading shares, which posted its biggest gain in two months on Monday, closed 0.3 percent higher. MSCI's all-country world index was up 0.4 percent after notching its best day since late June on Monday.

Clinton, generally seen as a known quantity, has been the preferred candidate for investors over political wild card Trump. But markets remained wary, noting Britain's shock vote in June to leave the European Union had caught investors and pollsters off guard.

"I’d be a little hesitant to waive the all clear signal at this point," said Randy Frederick, vice president of trading and derivatives for Charles Schwab in Austin, Texas.

Benchmark 10-year U.S. Treasury notes fell 11/32 in price to yield 1.8672 percent after touching a high of 1.876 percent, up from Monday's 1.828 percent. Thanks.

UPDATE 2-U.S. tentatively approves Delta-Aeromexico venture

Dear Viewers,

WASHINGTON/NEW YORK Delta Air Lines Inc (DAL.N) and Aeromexico can set prices and coordinate schedules for their U.S.-Mexico flights, but they must free up certain airport slots to bolster competition, the U.S. Transportation Department tentatively ruled on Friday.

The decision paves the way for the two companies to dominate the second-busiest market for travel to or from the United States. It comes after the U.S. airline industry has consolidated, with carriers operating more efficient itineraries and having more power to raise fares on some routes.

Opponents of the tentative ruling, which lets the airlines cooperate with immunity from U.S. antitrust law, have until Nov. 30 to raise objections.

The department said the decision benefits the public because Delta and Grupo Aeromexico SAB de CV (AEROMEX.MX) can plan shorter layovers, increase flights and offer more destinations. The U.S. government has approved similar arrangements for many other airlines.

However, the department has proposed that the carriers divest 24 takeoff and landing slots in Mexico City and six at New York's John F. Kennedy International Airport to give budget airlines room to add flights.

Slot allocation in Mexico City depends "on confusing and often unwritten rules, making it extremely difficult for new entrants," the department said. "This remedy would allow for new, competitive entry at these airports that would not otherwise be possible."

In an unusual move, the department also proposed limiting Delta and Aeromexico's antitrust immunity to five years because it was unclear whether the divestitures and reforms in Mexico City would be enough to ensure low fares for travelers.

In a statement, Delta said it was reviewing the tentative decision and looked forward to implementing a cooperation agreement with Aeromexico. It is in the process of buying 49 percent of Aeromexico, similar to stakes it has taken in other airlines to influence how they operate and where they fly.

Friday's ruling "really gives Delta a huge advantage" over United Continental Holdings Inc (UAL.N) and American Airlines Group Inc (AAL.O), which will be unable to compete for Mexico flights outside their major hubs, said industry consultant Robert Mann.

Delta's shares were up nearly 3 percent at $43.03 on Friday afternoon. Aeromexico's rose nearly 5 percent.

Budget carrier JetBlue Airways Corp (JBLU.O), which had wanted the airlines to divest at least 30 slots in Mexico City, said it commended the department for ensuring greater airport access.

Aeromexico did not immediately comment.

Mexico's federal competition commission approved the airlines' joint venture in May. Thanks.

GLOBAL MARKETS-Stocks jittery after election-linked selling; oil prices weak

Dear Viewers,

NEW YORK Global equity markets were jittery on Friday, even as Wall Street clung to modest gains as investors looked past worries about the outcome of the U.S. presidential election to snap an eight-day losing streak.

Oil prices remained weak on skepticism about whether OPEC members will adhere to planned production limits, boosting concerns about low inflation and sending U.S. Treasury prices higher.

A dismal outing for Asian and European share indexes weighed on MSCI's 47-country "All World" index .MIWD00000PUS, which was down 0.31 percent, but the index was supported by Wall Street.

U.S. stocks found favor with investors after eight straight days of losses, the longest losing streak since 2008, which sent the S&P 500 index down 2.9 percent.

"Investors are buying anything that looks like a dip and that is because the fundamentals continue to be pretty good even though I think there is a lot of anxiety about next week’s election," said Kate Warne, investment strategist with Edward Jones in St. Louis.

"With the pullback, I think investors are seeing some bargains out there."

An upbeat jobs report helped soothe nerves. U.S. employers maintained a strong pace of hiring in October and boosted wages, which could effectively seal the case for a December interest rate increase from the U.S. Federal Reserve. [nLNN4MEC7Q]

"This was a very good report. With the hourly wage number beginning to accelerate, the Fed will have all the cover it needs to raise rates in December," said Joel Naroff, chief economist at Naroff Economic Advisors in Holland, Pennsylvania.

Economists also said the upbeat employment report could provide a boost to Democratic candidate Hillary Clinton against her Republican rival Donald Trump as the race to the White House tightens and becomes increasingly bitter and divisive.

Investors have been unnerved by signs the race is tightening; Clinton had until recently been thought to have a clear lead.

The Dow Jones industrial average .DJI fell 8.15 points, or 0.05 percent, to 17,922.52, the S&P 500 .SPX gained 1.76 points, or 0.08 percent, to 2,090.42 and the Nasdaq Composite .IXIC added 0.68 point, or 0.01 percent, to 5,059.09.

European shares slumped, weighed down by weaker drugmakers after two U.S. lawmakers called on federal antitrust regulators to open an investigation into possible price fixing.

Europe's broad FTSEurofirst 300 index .FTEU3 closed down 0.79 percent at 1,296.32.

Oil futures were on course for their biggest weekly percentage declines since January of just under 10 percent as signs of tensions resurfaced between Saudi Arabia and Iran that could scupper a key supply cut pact.

Riyadh told a meeting of OPEC experts last week that it could raise oil output steeply to bring prices down if Tehran refuses to limit its supply, OPEC sources say.

Brent crude LCOc1 settled down 77 cents, or 1.66 percent, at $45.58 a barrel, and U.S. crude CLc1 settled down 59 cents, or 1.32 percent, at $44.07.

The weakness in oil prices raised concerns about low inflation and boosted U.S. Treasury prices. Uncertainty about the election also enhanced the appeal of the lower-risk assets.

Benchmark 10-year notes US10YT=RR were up 8/32 in price to yield 1.78 percent, after rising as high as 1.83 percent on the employment data.

While the solid U.S. jobs report supported expectations for a December Federal Reserve interest rate hike, it failed to stem losses for the U.S. dollar.

Nervousness ahead of next week's election has hit the greenback in recent days and the dollar index .DXY, which measures the greenback against a basket of six major currencies, was down 0.1 pct, near a three-week low.

Gold steadied, heading for its biggest weekly rise since mid-September as jitters over the election offset the solid payrolls report.

Spot gold prices XAU= were little changed at $1,302.89 an ounce. Thanks.

GLOBAL MARKETS-Stocks slip on U.S. election nerves; pound up on Brexit ruling

Dear Viewers,

NEW YORK Global equity prices drifted lower on Thursday as worries about the U.S. presidential election continued to weigh on investor sentiment, while sterling rose after a UK court ruled that the British government needed Parliament's approval to trigger Brexit.

Longer-dated U.S. Treasury prices slipped after the Bank of England indicated that inflation is likely to rise further, and oil prices remained weak on skepticism about OPEC's planned production limit.

MSCI's 47-country "All World" index .MIWD00000PUS fell 0.37 percent, dragged down by weakness on Wall Street.

The S&P 500 .SPX fell for an eighth straight session, its longest losing streak since the 2008 financial crisis, as Facebook shares weighed and investors grappled with uncertainty over next week's U.S. election.

Facebook (FB.O) shares fell as much as 6 percent, a day after the social media giant warned that revenue growth would slow this quarter.

"The polls have tightened and now the concern is more about what might a Trump presidency look like and the market hasn't quite priced that in," said Ernie Cecilia, chief investment officer of Bryn Mawr Trust in Bryn Mawr, Pennsylvania.

"Given the fact that the election is five days away, that's what's driving near-term behavior right now."

Investors have been unnerved in recent days by signs that the U.S. presidential race between Democrat Hillary Clinton and Republican Donald Trump was tightening just days before Tuesday's vote.

The CBOE Volatility Index .VIX, a gauge of near-term investor anxiety, rose 14 percent to its highest level since late June.

The Dow Jones industrial average .DJI fell 28.97 points, or 0.16 percent, to close at 17,930.67, the S&P 500 .SPX lost 9.28 points, or 0.44 percent, to finish at 2,088.66 and the Nasdaq Composite .IXIC dropped 47.16 points, or 0.92 percent, to end at 5,058.41.

The pan-European STOXX 600 ended flat, giving up early gains as a strengthened pound weighed on the shares of internationally exposed companies, including Diageo (DGE.L).

Sterling surged to a four-week high after the UK court ruling soothed concerns about Brexit and the Bank of England scrapped plans to cut interest rates. It climbed as much as 1.5 percent to hit $1.2494 GBP=D4, its strongest since Oct. 7.

Meanwhile, the U.S. dollar hovered near multi-week lows against a basket of major currencies, ending a morning reprieve in which the greenback stabilized, on uncertainty surrounding the outcome of the U.S. presidential election. The dollar index .DXY was down 0.25 percent to 97.156.

"We're now seeing markets price in a higher risk of a Trump presidency," said Omer Esiner, chief market analyst at Commonwealth Foreign Exchange in Washington. "Most polls are still showing that it’s far too close to call, and that's ultimately what is keeping investors nervous."

In bond markets, longer-dated U.S. Treasury prices fell after the Bank of England indicated that inflation is likely to rise further, while uncertainty over the U.S. election propped up shorter-dated debt.

The BoE ramped up its forecasts for growth and predicted that inflation would jump to 2.7 percent this time next year, nearly triple its current level. [nL8N1D45PY]

Benchmark 10-year notes US10YT=RR ended down 5/32 in price to yield 1.82 percent, up from 1.80 percent late on Wednesday.

Oil prices extended their recent slide as investors reacted to a record weekly surge in U.S. crude inventories and remained skeptical about whether the Organization of the Petroleum Exporting Countries can actually implement its planned output cap.

Brent crude LCOc1 settled down 51 cents, or 1.09 percent, at $46.35 a barrel, and U.S. crude CLc1 settled down 68 cents, or 1.50 percent, at $44.66.

Gold edged higher in response to the lower dollar and uncertainty about the outcome of the U.S. presidential race.

Spot gold prices XAU= were up 0.49 percent to $1,303.26.  Thanks.

FOREX-Dollar slumps against euro, jumps against peso on potential Trump win

Dear Viewers,

NEW YORK The U.S. dollar hit its lowest level in more than three weeks against the euro, yen, Swiss franc and sterling on Wednesday on nervousness about a potential victory for U.S. Republican presidential candidate Donald Trump next week.

Investors are rethinking long-held bets on a Nov. 8 victory for Democrat Hillary Clinton. Clinton held a 5 percentage point lead over Trump, according to a Reuters/Ipsos opinion poll released on Monday, but some other polls showed her Republican rival ahead by 1 to 2 percentage points.

The dollar index .DXY, which measures the greenback against a basket of six major currencies, was last down 0.3 percent at 97.403, after falling 0.6 percent to 97.178, its lowest level since Oct. 11.

The Mexican peso tumbled to a more than one-month low against the greenback, at 19.4667 pesos MXN= per dollar, on fears of how a Trump victory could hurt the Mexican economy.

Clinton is viewed as the candidate of the status quo, while there is greater uncertainty over what a Trump victory might mean for U.S. foreign policy, international trade and the domestic economy.

"There is a huge amount of unknown unknowns around Trump," said Richard Franulovich, a senior currency strategist at Westpac Banking Corp in New York.

The euro EUR= was last up 0.3 percent at $1.1088 after rising 0.6 percent in afternoon trading to $1.1123, its highest level since Oct. 11. Against the yen the dollar was down 0.7 percent, at 103.40 yen, after falling 1 percent earlier to 103.03 yen, its lowest level Oct. 10.

The dollar was last down 0.2 percent against the Swiss franc CHF=, at 0.9733 franc, after earlier falling about 0.6 percent to 0.9695, its lowest level in roughly a month.

The dollar pared losses after the Federal Reserve kept interest rates unchanged in its last policy decision before the U.S. election, but signaled it could hike rates in December as the economy gathers momentum and inflation picks up.

The move in the dollar was mild, analysts said, because U.S. political uncertainty largely overshadowed the central bank's statement.

The Mexican peso suffered MXN= a roughly 1.4 percent drop against the dollar. A possible Trump victory has been viewed as a key risk for the Mexican currency given the candidate's promises to clamp down on immigration and rethink trade relations.

"The peso weakening is a reflection of the increase in momentum from the polls favoring Trump," said Mazen Issa, senior currency strategist at TD Securities in New York. Thanks.

UPDATE 3-Northrop posts 16.7 pct profit rise, raises full-year forecast

Dear Viewers,

U.S. weapons maker Northrop Grumman Corp (NOC.N) reported a 16.7 percent rise in quarterly profit on Wednesday, helped by higher sales in its aerospace systems business that makes the center fuselage of the F-35 fighter jets.

Northrop shares hit an all-time high of $229.45 and were still up 3.9 percent at $228.10 in afternoon trading.

Last October, Northrop won the contract to produce the "Raider," the U.S. Air Force's new B-21 long-range bomber. The estimated $80 billion program, expected to produce 100 aircraft, has been shrouded in secrecy since its inception. It is expected to have aircraft ready for combat no sooner than 2025.

The maker of Global Hawk surveillance planes raised its 2016 earnings forecast for the third time this year to a range of $11.55 to $11.75 per share from $10.75 to $11.00. In January, Northrop estimated that 2016 EPS could be between $9.90 and $10.39.

The company now expects full-year sales of $23.9 billion to $24.1 billion, up from $23.5 billion to $24.0 billion.

Analysts, on average, expect 2016 earnings of $11.05 per share, on revenue of $23.82 billion, according to Thomson Reuters I/B/E/S.

Northrop's earnings came a day after Lockheed Martin Corp (LMT.N) reported better-than-expected results and lifted 2016 forecasts, partly due to higher sales from the F-35 program.

The F-35 is the Pentagon's costliest arms program. The U.S. Defense Department expects to spend $391 billion to develop the plane and buy 2,443 of the supersonic, stealthy new warplanes in the coming decades.

Northrop makes the center fuselage for the F-35, which forms a significant portion of the aircraft's internal weapons bay and internal fuel capacity.

Third-quarter revenue at Northrop's aerospace systems business increased 9.4 percent to $2.78 billion.

Help came from increased sales in the F-35 business and increased buying in top-secret programs as well as sales of autonomous systems.

Northrop CFO Ken Bedingfield told analysts on a conference call that the F-35 program now represents about 7 percent of revenue. CEO Wes Bush added that once F-35 production achieves full capacity, the profitability of that program should grow.

Northrop's third-quarter net earnings rose to $602 million, or $3.35 per share, from $516 million, or $2.75 per share, a year earlier. (bit.ly/2eR8BSK)

The profit included a federal tax benefit of $42 million, or 23 cents per share.

Total sales rose 2.9 percent to $6.16 billion.

So far this year Northrop's shares have risen more than 20 percent.


NEW YORK Boeing Co will not cut production of the 777 jetliner by more than two planes a month and is taking more time to decide on whether a cut is even needed, Chief Executive Dennis Muilenburg said on Wednesday.

MOSCOW/STOCKHOLM Russia is sharply upgrading the firepower of its Baltic Fleet by adding warships armed with long-range cruise missiles to counter NATO's build-up in the region, Russian media reported on Wednesday. Thanks.

UPDATE 1-Boeing CEO says will not cut 777 output rate by more than 2 a month

Dear Viewers,

NEW YORK Boeing Co (BA.N) will not cut production of the 777 jetliner by more than two planes a month and is taking more time to decide on whether a cut is even needed, Chief Executive Dennis Muilenburg said on Wednesday.

Boeing already plans to cut production of the wide-body plane to seven a month next year from 8.3 currently, and many experts expect a further cut to five a month due to slow sales and transition to a successor jet, the 777X.

The world's biggest planemaker also is studying whether to lift production of 787 Dreamliners to a planned 14 a month from 12, Muilenburg said. The company signaled that it wants to wait until several sales campaigns are finished in 2016 and 2017.

"We expect to have additional clarity on 777 production decisions in the next couple of months," Muilenburg said on a call with analysts.

"On the 787 program we have more time to further assess the implementation of the next production rate increase that is currently scheduled to ramp up to 14 per month at the end of the decade."

Boeing's production rates are bellwethers of market conditions, closely watched by investors for signs of the plane maker's future earnings and cash flow. Sales and profits at Boeing's many suppliers also are affected by changes in Boeing's factory rates.

While noting "hesitation" among airlines for buying wide-body planes such as the 777 and 787, Muilenburg said sales of narrow-body 737s are relatively strong.

He also said that even if Boeing decides to cut wide-body production "we continue to expect commercial aircraft deliveries to grow beyond 900 airplanes per year through the end of this decade," providing reassurance that overall deliveries will continue to rise from the 745 to 750 expected this year.

Earlier on Wednesday, the company beat profit expectations in the third quarter.

Oct 26 U.S. weapons maker Northrop Grumman Corp reported a 16.7 percent rise in quarterly profit on Wednesday, helped by higher sales in its aerospace systems business that makes the center fuselage of the F-35 fighter jets.

* Shares fall as much as 12 pct to $36.91 (Adds comment from conference call; updates shares)

 MOSCOW/STOCKHOLM Russia is sharply upgrading the firepower of its Baltic Fleet by adding warships armed with long-range cruise missiles to counter NATO's build-up in the region, Russian media reported on Wednesday. Thanks.

U.S. business borrowing for equipment up 12 pct in Sept. - ELFA

Dear Viewers,

Oct 25 Borrowings by U.S. companies for capital investment rose 12 percent in September from a year earlier, the Equipment Leasing and Finance Association (ELFA) said on Tuesday.

Companies signed up for $9.4 billion in new loans, leases and lines of credit last month, said the Washington-based trade group, which reports economic activity for the $1 trillion U.S. equipment finance industry.

The U.S. Federal Reserve's decision to keep interest rates low has spurred businesses to spend more on equipment, ELFA Chief Executive Ralph Petta said in a statement.

However, total new borrowings in the first nine months of the year fell 4 percent, ELFA said.

In September, credit approvals fell to 76.6 percent of all applications submitted from 76.9 percent in August, ELFA said.

There is pent up demand for capital investment, but given the unpredictable domestic environment and the economic headwinds globally, the unevenness may last for several months, said Stan Walker, managing director of JPMorgan Equipment Finance.

ELFA's leasing and finance index tracks the volume of commercial equipment financed in the United States. The index complements the U.S. Commerce Department's durable goods orders report, which it precedes by a few days.

The index is based on a survey of 25 lenders, including Bank of America Corp, BB&T Corp, CIT Group Inc and the financing affiliates or units of Caterpillar Inc , Deere & Co, Siemens AG and Volvo AB .

Separately, the Equipment Leasing & Finance Foundation, ELFA's non-profit affiliate, said its confidence index rose to 56.0 for October from 53.8 for September.

The index is an indicator of the outlook for the equipment finance market, with a reading above 50 suggesting a positive outlook.

NEW YORK, Oct 25 The U.S. Treasury Department on Tuesday sold $26 billion of a two-year debt issue at a yield of 0.855 percent, its highest since a two-year note auction held in May, Treasury data showed.

* James Flynn reports 4.51 percent passive stake in Blueprint Medicines Corp as of October 20 - sec filing Source text : http://bit.ly/2eCWk3R Further company coverage:

 DUBAI, Oct 25 Billionaire Mohamed Alabbar, one of Dubai's most prominent businessmen, plans a phone messaging service for the Middle East that aims to compete with services such as WhatsApp. Thanks.