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Morning Market Roundup: U.S. Industrial Production Down, Turbulent Spain Hosts World Summit

U.S. Industrial Production: U.S. industrial output was down in October, the Federal Reserve said Friday.

The Federal Reserve said industrial production fell 0.4 percent last month, after a 0.2 percent gain in September.

Factory output, the most important component, fell 0.9 percent. It would have been unchanged without Superstorm Sandy, the Fed said. Utility output dipped 0.1 percent, while mining, which includes oil and gas production, rose 1.5 percent.

Manufacturing has weakened since spring, in part because companies have scaled back purchases of long-lasting goods that signal investment plans. That trend appeared to continue in October: Machinery production fell 1.9 percent, while production of electrical equipment, appliances and components declined 1.4 percent.

Many businesses are worried about tax increases and federal spending cuts - known as the "fiscal cliff" - that will take effect in January unless Congress reaches a budget deal before then. Most economists predict the economy will suffer a recession in the first half of 2013 if lawmakers and President Barack Obama can't avoid the fiscal cliff.

Nike: Nike is selling its Cole Haan brand to private equity firm Apax Partners for $570 million.

The sneakers, clothing and sports gear maker said in May that it wanted to sell the leather shoe division and its Umbro soccer jersey brand as part of its plan to cut costs and focus on its core brands: Nike, Jordan, Converse and Hurley.

The Cole Haan deal completes the Beaverton, Ore., company's plan. Last month it announced the sale of Umbro to clothing licensing company Iconix Brand Group Inc. for $225 million. Nike had bought Umbro in 2008 for $582 million.

Like most consumer product makers, Nike Inc. has faced rising costs for packaging, fuel and other raw materials.

Nike shares rose $1.36, or 1.5 percent, to $92.19 shortly after the markets opened.

Spain: Spanish Prime Minister Mariano Rajoy is opening the Iberoamerican summit, which brings together Latin American leaders and the heads of Spain and Portugal, the former colonial powers.

The meeting comes at a time when Latin America basks in strong economic growth and Spain and Portugal are stuck in deep recessions and struggling with high debt.

Heads of state from Mexico to Chile started arriving Friday in the port city of Cadiz, where conquistadores centuries ago unloaded riches taken from former Spanish colonies.

Police in Cadiz fired rubber bullets Friday afternoon at shipyard workers trying to disrupt the summit with a demonstration against mass layoffs that disrupted traffic for an hour.

U.S. Futures: Stock futures are higher as President Obama heads into negotiations over the "fiscal cliff" with congressional leaders.

Dow Jones industrial futures are up 7 points to 12,529. The broader S&P futures have added 3 points to 1,354.30. Nasdaq futures are up 6 points to 2,528.

Attending the meeting with Obama are House Speaker John Boehner, R-Ohio, Minority Leader Nancy Pelosi, D-Calif., Senate Majority Leader Harry Reid, D-Nev., and Minority Leader Mitch McConnell, R-Ky.

A combined $600 billion in spending cuts and higher taxes, the so-called fiscal cliff, would take force in January if nothing is done.

The Associated Press contributed to this report.

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