IBD's Top 10 - Monday

• Investor's Business Daily
• On 6:48 pm EST, Monday November 2, 2009

Factory Activity, Home Sales Up

1 ISM's Oct. manufacturing index rose 3.1 points to 55.7, the highest since April '06. Readings over 50 signal growth. Economists had expected a slight rise to 53. The jobs subindex turned positive for the first time in over a year. Meanwhile, pending home sales shot up 6.1% to their best level since Dec. '06. Surging homebuilding lifted Sept. construction spending.

Stocks Make Unimpressive Gain

2 The major averages popped on upbeat economic reports, but reversed lower before rallying late for modest gains. The Dow rose 0.8%, the S&P 500 0.6% and the Nasdaq 0.2%. Volume fell after starting strong. Trucking and shipping firms fared poorly. Gold and oil prices rose on the factory and housing data.

Ford Up On Surprise $1 Bil Profit

3 The automaker swung to a Q3 profit of 26 cents a share ex items vs. views for a 12-cent loss. Revenue fell 2.5% to $30.9 bil, above views. Ford (NYSE:F - News) cited U.S. market share gains, the Cash for Clunkers program and $1 bil in cost cuts. Ford predicted a "solidly profitable" 2011. Shares rose 8% -- but gave up half those gains late after Ford said it planned to raise $3 bil in stock and debt.

Fed: Loan Quality Getting Worse

4 Banks' loan quality "continues to deteriorate," a senior Fed bank supervisory official told a House panel. Commercial real-estate loan woes are big trouble for regional and community banks, he added. With commercial property values and rents falling, borrowers are struggling to repay. Banks have yet to write off many problem loans, analysts say.

Karzai Officially Declared Victor

5 After his top rival withdrew, an Afghan panel proclaimed Pres. Hamid Karzai the winner of a fraud-marred election, canceling a runoff planned for this week. On Sun., ex-Foreign Minister Abdullah Abdullah quit the race, expressing doubts that the runoff wouldn't be tainted by corruption. The annulment was a relief to officials who feared the Taliban would attack poll sites.

Fed Gathers Top Bank Officials

6 The CEOs of JPMorgan Chase (NYSE:JPM - News), Goldman Sachs (NYSE:GS - News) and Morgan Stanley (NYSE:MS - News)met at the N.Y. Fed to discuss gov't plans to limit exec pay to curb excessive risk-taking. The central bank has asked the heads of the 28 largest banks to meet with their regional Fed branch. Also, the Treasury's pay czar said the 7 firms with heavy gov't bailouts may face a talent drain due to his strict pay policies.

Va., N.J. Vote On Governors Tue.

7 Virginians are likely to elect the GOP's Bob McDonnell by a wide margin after going for Pres. Obama in '08. But polls say N.J.'s 3-way race is a tossup between the incumbent Dem and his GOP opponent. N.Y.'s 23rd Congressional District will choose between a Dem and a 3rd-party entrant turned GOP candidate, after the liberal Republican nominee pulled out and endorsed the Dem.

Stanley Buys Black & Decker

8 Stanley Works (NYSE:SWK - News) said after the close that it will buy rival Black & Decker (NYSE:BDK - News) for $4.5 bil, creating an $8 bil toolmaking giant. Stanley will pay 1.275 shares per Black & Decker share, or $57.56 as of Mon.'s close, a 22% premium. But Stanley rose 4% after hours, which would signal a $60 price tag. Black & Decker shot up 22% to about 57.75.

Pakistan Rocked By More Blasts

9 A suicide bomber killed 35 near military headquarters outside Islamabad. Another blast injured 7 policemen at a checkpoint 14ear Lahore. Terror attacks have surged amid a military offensive vs. the Taliban. The unrest spurred the U.N. to suspend education and economic development work in the area aimed at curbing militants' influence.

Human Genome Soars On Lupus

10 The biotech's successful late-stage clinical trial paves the way for approval of the first lupus treatment in 50 years. Human Genome Sciences (NasdaqGM:HGSI - News) shot up 30% to 24.38, a 71/2-year high. Human Genome and drug giant GlaxoSmithKline (NYSE:GSK - News) plan to seek FDA OK in the first half of '10. Vertex Pharma (NasdaqGS:VRTX - News) rose 8% on a positive hepatitis C drug study.

Buzz up!