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U.S. markets swing higher

NEW YORK, Nov. 2 (UPI) -- U.S. markets swung higher Monday morning with a rise in blue-chip stocks after Ford Motor Co. posted a $997 million profit in the third quarter.

Ford also said it would become "solidly profitable" by 2011. Automobiles, as a group, rose 6.68 percent early, while business lender CIT Group dropped 24 percent after declaring bankruptcy Sunday.

In early afternoon trading, the Dow Jones industrial average added 88.42 points, or 0.31 percent, to 9,801.15. The index swung wildly to end the last two sessions, gaining 200 points Thursday and shedding 249 points Friday.

The Standard & Poor's 500 gained 7.97 points, or 0.77 percent to 1,044.16. The Nasdaq composite index added 10.53 points, or 0.51 percent, to 2,055.64.

The benchmark 10-year Treasury lost 13/32 to yield 3.42 percent.

The euro rose to $1.4838 compared to Friday's $1.4717. Against the yen, the dollar rose to 90.494 yen from Friday's 90.02 yen.

In Japan, the Nikkei 225 index lost 2.31 percent, 231.79, to 9,802.95.

Ford turns big profit, loses union vote

DEARBORN, Mich., Nov. 2 (UPI) -- U.S. auto giant Ford Motor Co. said Monday it earned a profit of $997 million in the third quarter, a $1.2 billion rebound from the third quarter a year ago.

Ford lost $161 million in 2008's third quarter, CNNMoney.com reported Monday.

In the recent quarter, Ford capitalized on the Cash for Clunkers program, a federal rebate designed to help automakers weather the recession and car owners trade up in fuel efficiency. Ford also gained market share as U.S. rivals General Motors Co. and Chrysler Group struggled to emerge from bankruptcy proceedings.

"Our third quarter results clearly show that Ford is making tremendous progress despite the prolonged slump in the global economy," Ford President and Chief Executive Officer Alan Mulally said in a statement.

Revenues from auto sales in the third quarter hit $27.9 billion on the sale of 1.23 million vehicles, a 5 percent bump from a year ago.

Ford said it expected to be "solidly profitable" in 2011, although the Detroit News reported the company's union workers rejected a contract designed to bring Ford's labor costs more in line with GM and Chrysler.

"We still face a challenging road ahead," Mulally said, adding, "our transformation plan is working and our underlying business continues to grow stronger."

Manufacturing turns to leaner production

NEW YORK, Nov. 2 (UPI) -- U.S. workers have more than the economy to fear as employers work towards improved efficiencies that cut back on the need for labor, a private study showed.

A survey conducted by RSM McGladrey found 61 percent of manufacturers were turning to "lean" production practices which creates smoother flow in factories and cuts down on excess inventory, USA Today reported Monday.

Manufacturing has lost 2 million jobs during the recession and production is down 14 percent. Even so, mattress maker Sealy, which adopted a "lean" production strategy five years ago, found net sales down 14 percent in the third quarter compared to July through September a year ago, while its gross profit margin rose from 40.5 percent to 41.8 percent.

Nationally, productivity per labor hour rose 4.9 percent in the second quarter, the sharpest gain since 2005. Much of that is due to "lean" manufacturing, IHS Global Insight economist Brian Bethune said.

23 college presidents paid more than $1M

WASHINGTON, Nov. 2 (UPI) -- U.S. college presidents making more than $1 million are becoming more commonplace, a Chronicle of Higher Education survey indicates.

In the 2007-2008 academic year, 23 private college presidents earned more than $1 million in pay and benefits, The New York Times reported Monday.

In 2002, there were four U.S. college presidents earning more than $800,000 and none earning more than $1 million, the Times said.

Last year's top salary for a college president was $1,598,247, paid to Shirley Ann Jackson, president of Rensselaer Polytechnic Institute in Troy, N.Y. The second highest compensation package went to David Sargent, president of Suffolk University in Boston.

Sargent was paid a total of $1,485,275. For the year, the annual survey found the median compensation paid to college presidents was $627,750.

"I think the answer you'd get from the governing boards that set these salaries is that it's a market and it's increasingly hard to find these people," said Jeffrey Selingo, editor of The Chronicle of Higher Education.

"That said, almost every year, presidential salaries have gone up faster than inflation, and faster than tuition, which rankles some people on campus," he said.