Market Minute: 'Gravity' Crushes Box Office; Ford CEO to Microsoft?

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The wrangling in Washington starts to weigh on Wall Street, with stocks set to slide this morning. These stories and more are in Monday's Market Minute.

The Dow Industrials (^DJI) lost more than one percent last week, while S&P 500 (^GPSC) was little changed, and the Nasdaq (^IXIC) rose seven-tenths of a percent. It was the fifth straight weekly gain for the Nasdaq.

Boeing (BA) could face some new headwinds. The airplane maker has lost its exclusive deal with Japan Airlines, which agreed to buy more than 9-billion dollars worth of planes built by European-based Airbus.

About 3,000 Lockheed Martin (LMT) workers could face furloughs this week if the budget stalemate is not resolved. The company said it will have to delay some test flights and production on the F-35 fighter jet, but that was before the Pentagon recalled its workforce. United Technologies (UTX) cancelled its planned furloughs after the Pentagon decision.

Bloomberg reports that Ford's (F) board of directors is expected to discuss a contingency plan if CEO Alan Mulally decides to leave. He's reportedly one of the top candidates to replace Steve Ballmer at the helm of Microsoft (MSFT).
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AP Photo/Carlos OsorioFord CEO Alan Mulally


An activist investor group has acquired a 13 percent stake in Outerwall (OUTR), which until recently was known as Coinstar. The group says it plans to push the owner of the Redbox video rental kiosks to make some strategic changes, and possibly seek a buyer.

J.P. Morgan (JPM) has lowered its quarterly earnings forecast for Alcoa. The aluminum giant reports after tomorrow's closing bell. But earnings season could take a back seat to the stalemate in Washington.

A Jefferies analyst has significantly boosted his target price on Apple (AAPL) to 600 a share. After meeting with Apple supplies in Asia, he's convinced the company's net margins are set to rise.

And Time Warner's new sci-fi movie "Gravity" won the box-office battle this weekend. It took in more than 55-million dollars, a record for October, which is not usually a big period for movie-goers.

-Produced by Drew Trachtenberg

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11 Comments

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IN MY OPINION ONLY

P.S. CEO is media ***** of 21st century? Vampire of employees livehood by laying off thousands to gain their bouses & golden parachute plan? Revoltion is a must (Non-Combat).

October 07 2013 at 5:03 PM Report abuse rate up rate down Reply
IN MY OPINION ONLY

Microsoft doesn't need a CEO. Just eliminate that position and go from there and other companies will do the same, great turnover guaranteed? In this area a female CEO fired herself to save her company and lay off NONE of her employees. She enjoys watching her company prosper and still stays out of the way.

October 07 2013 at 4:59 PM Report abuse rate up rate down Reply
jerald3739

I think that the Ford CEO should replace Obama instead of going over to Microsoft.

October 07 2013 at 2:14 PM Report abuse rate up rate down Reply
FCI Fincl Serv

When you build an airplane with parts "crafted in The People's Republic of China", you are asking for problems!

October 07 2013 at 12:39 PM Report abuse +2 rate up rate down Reply
Pllc15

A changing face of Japan for decades protected their "own" in business transactions. Japan supplies about 35% of the components of the 787 by 60 major suppliers. Switching to Airbus changes that. However, Airbus relies on 45 percent of its components from the U.S. aerospace industry, so something here kind of balances out.

October 07 2013 at 12:15 PM Report abuse rate up rate down Reply
RSW

That would not be good for Ford !

October 07 2013 at 12:11 PM Report abuse rate up rate down Reply
Sonny

Japan is holding over 1 Trillion Dollars in US Debt. Yes, I would start weaning myself from the American nightmare, which is rapidly approaching.

October 07 2013 at 11:04 AM Report abuse +1 rate up rate down Reply
frontrange2

Interesting window into Japanese thinking.

Forbes noted that " According to the Society of Japanese Aerospace Companies, Japanese manufacturers produced 35% of the Dreamliner parts, and also played similarly major roles in the development of Boeing’s 777 and 767. In fact, the 787’s lithium-ion batteries are made by Tokyo-based GS Yusa Corp." So Japan makes bad batteries, destroys the 787's reputation and then switches manufacturers. I think the whole country of Japan should wear the "badge of shame" they are so famous for. .

October 07 2013 at 10:54 AM Report abuse rate up rate down Reply
Bob

This is a direct result of Boeings 787 The company has lost it's edge after outsourcing the plane mfg. all over the world. Boeing has nobody to blame but themselves for destroying the once prestigious name of Boeing.

October 07 2013 at 10:42 AM Report abuse +1 rate up rate down Reply
1 reply to Bob's comment
Sonny

Could Govt policies, Unions, and tax ramifications have anything to do with that?

October 07 2013 at 11:06 AM Report abuse -1 rate up rate down Reply
1 reply to Sonny's comment
alstenzel

I wouldn't put much credence in his comment. Look, he doesn't know the difference between "it's" and "its" and doesn't know how to use the possessive apostrophe in "Boeing's," plus he didn't end the first sentence with a perion. So, one has to assume he's an uneducated dummy.

October 07 2013 at 11:17 AM Report abuse -1 rate up rate down