Wall Street Brief: GM Falls Short in China, Top Telecoms May Be a U.S. Security Threat

China’s top telecom equipment makers including Huawei and ZTE (ZTCOY.PK) are a security threat and should be excluded from the U.S. market, according to a House Intelligence Committee report that will be released on Monday. The report, whose conclusions are  denied by its subject companies, will harm their efforts to raise market share against Cisco (NASDAQ:CSCO), Ericsson (NASDAQ:ERIC), Alcatel-Lucent (NYSE:ALU), and Polycom (NASDAQ:PLCM).

Yahoo (NASDAQ:YHOO) is being urged to repurchase shares with the $3 billion raised from selling its Alibaba stake as opposed to paying a dividend. A buyback may suggest CEO Marissa Mayer is confident in Yahoo’s growth prospects believe analysts and fund managers.  Brian Wiesar an analyst with Pivotal Research LLC said, “There’s a bias on Wall Street in general for buybacks versus dividends.”

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Wal-Mart (NYSE:WMT) and American Express (NYSE:AXP) will have a morning conference call likely for a financial services announcement. It may include an opportunity for low-income shoppers to receive new credit offerings. The two companies have partnered before with an Amex low-cost prepaid Bluebird card but it concluded this summer due to poor sales.

Toyota (NYSE:TM), Honda (NYSE:HMC), and Nissan (NSANF.PK) will cut their Chinese production by about half amid diving sales during the protests over the contested Senkaku/Diaoyu islands, reported the Nikkei. Toyota’s China sales have supposedly fallen 40 percent year over year in September. Official numbers come out on Tuesday.

General Motors (NYSE:GM) has reported its China auto sales rose 1.7 percent in September to 244,266 vehicles. Year-to-date, its totals are up 10 percent and the company has moved past the 2 million mark in sales to 2.08 million vehicles.

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