Market Snapshot October 29, 2009, 4:45PM EST

Stocks Rally on GDP Report

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FDIC Chairman Sheila Bair, breaking with the Obama administration, said U.S. financial companies should prepay into a fund the government would use to unwind large failed firms. Congress should set up a Financial Company Resolution Fund and force institutions with more than $10 billion of assets to pay before a firm collapses, Bair said in testimony prepared for a House Financial Services Committee hearing today. Investors in failed companies also should take losses, she said. "A prefunded FCRF has significant advantages over an ex- post funded system," Bair said. "It allows all large firms to pay risk-based assessments into the FCRF, not just the survivors after any resolution, and it avoids the pro-cyclical nature of requiring repayment after a systemic crisis."

In company news Thursday, Exxon Mobil posted lower-than-expected third-quarter earnings per share (EPS) of 98 cents, vs. $2.58 EPS (including special items) one year earlier on a 40% decline in total revenues and other income. The company said third-quarter upstream earnings (excluding special items) fell 25% year-over-year as lower crude oil and natural gas realizations accounted for the majority of the decline; downstream earnings fell sharply, driven by lower refining margins.

Procter & Gamble posted fiscal first-quarter EPS of $1.06, vs. $1.03 EPS one year earlier, on a 2% rise in organic revenue. Wall Street was looking for EPS of 99 cents.

Motorola (MOT) reported third-quarter EPS from continuing operations of one cent, vs. a loss per share of 18 cents one year earlier, as lower costs and expenses offset a 27% sales decline. Wall Street was looking for breakeven result. Separately, the company announced that Edward J. Fitzpatrick, Senior V-P and acting CFO, has been appointed CFO, effective immediately.

Aetna (AET) reported third-quarter operating EPS of 69 cents, vs. $1.12 EPS one year earlier, as lower commercial underwriting margin and a previously announced increase in pension expense offset 9.1% revenue rise (excluding net realized capital gains and losses). The company expects that in 2010 ongoing uncertainty about the U.S. economy with respect to employment and growth will continue to impact provider and member behavior as well as customer preferences.