(Reuters) - U.S. bank earnings reached their highest point since the second quarter of 2007 but the industry continues to have trouble boosting revenue with the economy struggling. The Federal Deposit Insurance Corp said on Tuesday that the industry earned $35.3 billion in the third quarter, an $11.5 billion increase from a year before. That number is up $6.7 billion from the second quarter.

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(Reuters) - The U.S. economy grew more slowly than previously estimated in the third quarter, but weak inventory accumulation amid sturdy consumer spending supported views output would pick up in the current quarter. Gross domestic product grew at a 2.0 percent annual rate in the July-September quarter, the Commerce Department said in its second estimate on Tuesday, down from the previously reported 2.5 percent.

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(Reuters) - Campbell Soup Co (CPB.N), the world's largest soup maker, reported weak quarterly sales as higher prices at its U.S. soup and international businesses put off price-conscious shoppers, sending its shares down 5 percent. The company, whose U.S. soup business has struggled with more competition, said quarterly sales in that business fell 4 percent, hurt by higher promotional spending by rivals, while sales in its international business decreased 3 percent.

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(Reuters) - Medical device maker Medtronic Inc (MDT.N) reported higher quarterly earnings on Tuesday as sales in most of its businesses improved. Earnings were $871 million, or 82 cents per share, in the second quarter ended October 28, compared with $566 million, or 52 cents per share, a year earlier.

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(Reuters) - U.S. stocks dropped about 2 percent on Monday, putting the S&P on track for its fourth straight day of losses as concerns about heavy debt loads both domestically and abroad added uncertainty to a troubled market. A U.S. congressional committee was expected to concede defeat in its bid to lower the deficit, renewing the debate over taxes and spending at a time when the impending expiration of payroll tax breaks and jobless benefits could help to undermine the economy.

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(Reuters) - U.S. existing home sales unexpectedly rose in October as low interest rates for mortgages and rising rents led more homebuyers into the market, the National Association of Realtors said on Monday. Sales climbed 1.4 percent to an annual rate of 4.97 million units from September's revised rate of 4.90 million, the NAR said. Forecasters in a Reuters poll had expected the annual rate to fall to 4.8 million.

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(Reuters) - Gilead Sciences Inc (GILD.O) struck a deal to buy biotechnology company Pharmasset (VRUS.O) for about $11 billion in a huge bet to diversify its portfolio with new hepatitis C treatments. Gilead, the world's largest maker of HIV drugs, will pay $137 per share for each Pharmasset share, an 89 percent premium to Pharmasset's Friday closing price.

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(Reuters) - U.S. property and casualty insurer Alleghany Corp (Y.N) said it would buy reinsurer Transatlantic Holdings (TRH.N) for $3.4 billion in cash and stock, possibly putting an end to the months-long buyout battle for the reinsurer. The Alleghany offer values the reinsurer at nearly $5 more per share than Validus Holdings Ltd's (VR.N) latest offer, which may help Transatlantic ward off Validus' hostile takeover pitch.

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(Reuters) - The euro zone's debt crisis struck again at the heart of Europe on Monday despite a clear-cut election victory in Spain for conservatives committed to tougher austerity. Spain's Socialists became the fifth government in the 17-nation single currency area to be toppled by the debt crisis this year. Portugal, Ireland, Italy and Greece went before.

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(Reuters) - Wall Street stocks rose in early trading on Friday after Europe's debt crisis drove heavy market losses this week, with the S&P 500 falling through important technical levels and facing another key test of strength. Selling on Thursday afternoon pushed the S&P 500 through a support level at around 1,230. The next key test will be whether the index can hold its 50-day moving average just above 1,200, possibly setting the stage for a bounce if it does.

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