IBD's Top 10 - Monday

• Investor's Business Daily
• On 6:50 pm EDT, Monday October 26, 2009

Public Option In Sen. Health Bill

1 Majority Leader Harry Reid said the legislation headed for the Senate floor will include a gov't insurance program, though states could opt out. Liberals cheered, but Reid didn't claim he had the 60 votes to pass the plan. Sen. Olympia Snowe, R-Maine, who voted for a Senate Finance bill without a public option, said she was "deeply disappointed."

Baidu Drops On Weak Outlook

2 China's Web search leader dived 13% in late trade after Baidu (NasdaqGS:BIDU - News) predicted Q4 revenue of $174 mil-$180 mil, well below estimates of $203.7 mil. Baidu also reported after hours that Q3 EPS rose 41% to $2.07 ex items, far above forecasts of $1.83. But revenue's 39% rise to $187.3 mil fell just shy of estimates of $187.6 mil.

Stocks Tumble After Buck Rises

3 Stocks opened up but reversed as the dollar rallied, sending oil and gold lower. The Nasdaq fell 0.6%, the Dow 1% and the S&P 500 1.2%. Volume rose on the NYSE but fell on the Nasdaq. News that banks may struggle to pay back taxpayer aid hit financials. The 10-year T-yield hit its highest level since Aug. as the U.S. began selling $123 bil in notes.

Big Bank Breakup Rules Near?

4 The Treasury and key House Dem Barney Frank have decided not to make financial firms pay upfront the costs of dismantling them if regulators decide they are "too big to fail," according to a House aide. Frank's legislation would give the gov't unprecedented power to seize non-bank firms such as AIG (NYSE:AIG - News), dismiss management and wipe out shareholders.

Sohu, Changyou Take Tumble

5 China Web portal Sohu.com (NasdaqGS:SOHU - News) fell 16% and its recently listed games unit Changyou.com (NasdaqGS:CYOU - News) slid 8% as both forecast Q4 revenue below views. Sohu said Q3 EPS slid 14% to 88 cents, a cent below views. Revenue rose 13% to $136.6 mil, just over views. Changyou, 68.5% owned by Sohu, earned 71 cents in Q3, 2 cents over views.

Verizon Tops On Mobile Growth

6 The phone giant's Q3 EPS fell 9.1% to 60 cents, topping views by a penny. Revenue rose 10.2% to $27.27 bil, above views. Verizon (NYSE:VZ - News) was helped by better-than-expected net wireless subscriber gain of 1.2 mil. But FiOS TV subscriber adds were lower than expected. Verizon did see some pressure from iPhone as AT&T (NYSE:T - News)added 2 mil customers in Q3. Verizon fell 1%.

Afghan Copter Crashes Deadly

7 2 helicopter crashes killed 14 Americans -- 11 troops and 3 drug agents -- in the deadliest day for the U.S. mission in Afghanistan in more than 4 years. NATO said neither crash was caused by hostile fire. Pres. Obama, speaking at a naval air station, remembered the 14 dead and pledged not to "rush the solemn decision" on whether to send more troops to battle in Afghanistan.

U.S. Firms See Economy Rising

8 Demand rose in Q3 for the first time in 5 quarters as goods and services firms reported gains, said the Nat'l Assoc. for Business Economics. Profit margins improved for the first time in 7 quarters as companies were able to raise prices. Capital spending also improved while hiring plans turned positive. Some 73% of firms said GDP will grow 1%-3% in '10.

Home Tax Credit To Phase Out?

9 Congress may extend the 1st-time buyer tax credit, set to expire Nov. 30, through 2010, said Sen. Ben Nelson, D-Neb. But after Q1, the $8,000 credit will fall by $2,000 a quarter to $0 at year-end. The housing industry has said the credit has fueled home sales, but critics say it's expensive, inefficient -- and may spur reckless lending.

ING To Split Up, Repay Dutch Aid

10 The Dutch financial giant will split its insurance unit from its investment management and banking operations to satisfy the EU. ING (NYSE:ING - News) also plans a 7.5 bil euro ($11.15 bil) rights issue as it said it will repay $7.4 bil, or half, of its aid from the Dutch gov't. ING expects the EU to OK the support measures in Nov. ING shares tumbled 19%.

Buzz up!