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Daily Scan: Weight Watchers stock soars; IBM disappoints; the $6B 'oops'

By NexChange
Capital Markets

Updated throughout the day

October 19

Good evening. We're off to a shaky start for the week, with Morgan Stanley in a big miss for its 3Q earnings -- $0.42/share  (adjusted) vs $0.66 estimates. U.S. markets start the week in a holding pattern following a strong close last week. The Dow fell 0.1% by midday, but was able to scrape up a 0.1% gain by close. The S&P 500 added 0.03% after being low all day as well. The Nasdaq gained 0.4%, after an initial fall. Soft growth in China has hit energy shares giving a negative tone to the early morning trade. Investors will be likely be divining the strength of the economy this week through earnings reports. Bucking the trend: Weight Watcher's stocks more than doubled Monday after Oprah announced she is taking a 10% stake in the company and joining the board. The National Association of Home Builders' numbers are in, and we're doing a little happy dance. Sentiment is up 3 points to 64, compared with 54 points last October. Analysts had been ready for the index to be unchanged at 62 this month.

Here’s what else you need to know:

IBM's revenue disappoints. IBM reported Monday that its revenue fell for the fifth quarter in a row, and 2015 operating profit forecasts were dropped to $14.75-$15.75 per share from $15.75-$16.50. Shares were down 4.5% in after-market trading. Reuters

Deutsche accidentally paid hedge fund $6 billion. A junior foreign-exchange trader accidentally transferred $6 billion to a U.S. hedge fund client's custody account in June, after he misunderstood directions. The trader paid out a gross amount -- not net -- as was intended. The error was corrected within 24 hours, but highlights some of the technology issues the bank has struggled with. Wall Street Journal

CIA director's email possibly hacked. The FBI and Secret Service are looking into reports that CIA Director John Brennan and Department of Homeland Security Secretary Jeh Johnson's personal email accounts were hacked. The alleged hacker is a high school student who says he is critical of U.S. foreign policy and a supporter of Palestine. CNN

"Star Wars" tickets go on sale Monday night. The latest chapter in the Star Wars saga is due out in December, but tickets go on sale after Monday Night Football October 19. The "Star Wars: The Force Awakens" trailer will also debut during the game between the New York Giants and the Philadelphia Eagles. CNN

Polls open in Canada, and it's going to be a tight race. Incumbent Conservative Prime Minister Stephen Harper is vying for a fourth term, but it appears that Liberal leader Justin Trudeau, whose father was prime minister, is leading the polls. Left wing New Democratic Party's Tom Mulcair is also pulling strong support, but will likely fall behind the others. BBC

Amazon attacks fake reviews. King Amazon is suing more than 1,000 people for posting fake product reviews on the site and "misleading" customers. In April, Amazon sued a number of websites for selling fake reviews as well.

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