Stock futures gain on earnings, China data

NEW YORK - Stocks were set to rise at the open on Thursday, bolstered by strong corporate earnings, including Caterpillar, and reassuring data from China. China's growth ebbed in the third quarter while inflation edged a touch higher, showing the world's No. 2 economy was still an engine for global growth and suggesting a recent interest rate rise may be enough for now.

Caterpillar tops Street, raises forecast

CHICAGO - Caterpillar Inc <CAT.N> reported stronger-than-expected quarterly earnings on Thursday and raised its full-year forecast, citing especially strong demand for its construction and mining equipment in the developing world. The world's largest maker of earth-moving equipment reported a third-quarter profit of $792 million, or $1.22 a share, up 96 percent from $404 million, or 64 cents a share, a year earlier.

Geithner gambit on imbalance targets falls flat

GYEONGJU, South Korea - India, Russia and Germany on Thursday rejected a U.S. proposal for numerical targets for "sustainable" trade surpluses and deficits as a way to help rebalance the global economy. The swift rebuff underscored the difficulties facing Group of 20 finance ministers as they gather in South Korea to try to find ways to defuse tensions in currency markets springing from the fallout of the global financial crisis.

Jobless claims drop, monetary stimulus seen

WASHINGTON - New claims for unemployment benefits fell more than expected last week, but not enough to suggest much improvement in the distressed labor market. Initial claims for state unemployment benefits fell 23,000 to a seasonally adjusted 452,000, the Labor Department said on Thursday.

Smoothies boost McDonald's sales and profit

DETROIT - McDonald's Corp <MCD.N> beat Wall Street expectations for quarterly profit and same-store sales growth in September as the popularity of its fruit smoothies and Dollar Menu helped it win further market share. The world's biggest hamburger chain is outperforming the overall fast-food sector, which is struggling with high U.S. unemployment and economic weakness domestically and in Europe.

Toyota to recall 1.66 million Avalon, other cars

TOKYO - Toyota Motor Corp <7203.T> said on Thursday it would repair 1.66 million Avalon and other vehicles, mostly in Japan and the United States, in the latest large-scale recall to plague the world's biggest automaker. The announcement came less than two months after a recall in Canada and the United States of 1.3 million Corolla and Matrix cars carrying defective engine control modules that could cause the vehicles to stall.

Fannie and Freddie may need another $215 billion

NEW YORK - Fannie Mae <FNMA.OB> and Freddie Mac <FMCC.OB> may need as much as $215 billion in additional capital from the Treasury through 2013 to offset losses and maintain a positive net worth, their federal regulator said on Thursday. Cumulative capital needs of the two housing finance giants that were seized by the government in late 2008 will likely fall between $221 billion and $363 billion through 2013, the Federal Housing Finance Agency estimated.

AT&T revenue beats street on mobile growth

NEW YORK - Strong sales of iPhone and gadgets like e-book readers helped AT&T Inc <T.N> beat Wall Street revenue estimates in what may be one its last quarters with exclusive rights to Apple Inc's <AAPL.O> smartphone. AT&T said a record 5.2 million customers activated iPhone in the third quarter compared with analyst expectations for about 4.8 million, helping the company boost data growth and lock in customers for the next two years.

Lenders in talks with states on foreclosure probes: report

BANGALORE - Several U.S. lenders including JPMorgan Chase <JPM.N> and Bank of America <BAC.N>, and their legal advisers, have started talks with state attorneys general to resolve a probe of foreclosure practices, the Wall Street Journal said. Executives and lawyers of JPMorgan and Bank of America have separately met with the Florida Attorney General last week, the Journal said, citing people familiar with the matter.

Nokia to cut 1,800 jobs after strong Q3

HELSINKI - Nokia reported stronger-than-expected profits for the third quarter, boosted by solid demand for its cheap smartphones, and said on Thursday it would cut up to 1,800 jobs under its new chief executive. Third-quarter underlying earnings per share for the world's largest handset maker dropped to 0.14 euros from 0.17 euros a year ago, but beat all forecasts -- which ranged from 0.08 to 0.12 euro -- in a Reuters poll of 36 analysts.