jump to navigation

Dow Jones News Top Stories Of The Day – January 9, 2007 January 9, 2007

Posted by notapundit in Economic News.
trackback

ALCOA 4Q NET RISES 60% DESPITE RESTRUCTURING CHARGE

Dow component kicks off the 4Q earnings season, reporting net income of $359 million, or 41c a share, including charges of $386 million, or 44c a share, for restructuring and impairment charges. On average, analysts expected 4Q earnings of 65c a share. Revenue rises 20% to $7.84 billion.

APPLE SOARS ON IPHONE NEWS

Shares jump 8% as Steve Jobs unveils company’s long-expected cellphone which will use touchscreen technology and work with iTunes. It will begin shipping the product in June with prices starting at $499. Firm to also shorten its name from Apple Computer to Apple.

SPRINT SHARES FALL AMID SLOWER GROWTH

Shares drop 11% a day after issuing what Deutsche Bank calls an ‘abysmal’ 2007 outlook. Sprint Nextel’s slower growth has left the door open to rivals who are expanding at the expense of the ailing wireless carrier.

RESEARCH IN MOTION FALLS ON IPHONE NEWS

Research In Motion shares slide 7% after Apple’s much-anticipated announcement of its iPhone device as investors fret that the two technology high-flyers are on a collision course that could stymie RIM’s growth.

HELICOPTER GUNSHIPS ATTACK SOMALIA AL-QAIDA SUSPECTS

Helicopter gunships attack suspected al-Qaida fighters in the south after U.S. forces stage airstrikes in the first U.S. offensive in the African country since 18 soldiers were killed there in 1993, say witnesses.

GAP CREDIT SLASHED TO JUNK STATUS

Gap is back in junk land. Fitch trims its ratings, following S&P’s earlier move, as revenue declines and sales sag in recent months, while company comes under fire for stale designs and unappealing merchandize.

H&R BLOCK SEES 10%-20% PROFIT GROWTH

H&R Block predicts annual profits will grow between 10% and 20% over the next three years as the company expands services to its traditional tax customers and improves margins in other business segments.

AVON TO RESTRUCTURE US DISTRIBUTION

Avon plans to restructure U.S. distribution operations and will takes steps such as phasing out certain distribution branches for combined loss of about 620 positions. Company sees annualized cost savings of $35 million to $45 million.

SCHWARZENEGGER EYEING LOW-CARBON FUELS

Gasoline and other transport fuels sold in California must have 10% less carbon by 2020 to reduce greenhouse gas emissions, under an executive order planned by Gov. Arnold Schwarzenegger.

GM CAN TRADE SOME MARKET SHARE FOR PROFITS

GM, which for decades has taken pride on being the world’s largest auto maker, believes sacrificing a few points of market share in U.S. will go a long way to pumping up bottom line, GM Vice Chairman Robert Lutz says. See auto show coverage at a glance.

PIRA CUTS CRUDE-PRICE OUTLOOK

Long-time bullish energy consultancy PIRA Energy Group lowers its oil-price outlook for this year by $5 a barrel to $59. Firm adds net flow of investment into commodities markedly slowed in 2H and may be declining in early 2007.

1ST WAVE OF US TROOPS TO IRAQ THIS MONTH

Up to 20,000 U.S. troops will be put on alert and be prepared to deploy under President Bush’s new plan, but the ongoing increase in forces on the ground will be gradual, says senior defense official.

ALLSTATE WILLING TO DISCUSS KATRINA SUITS

Allstate isn’t in talks over settling claims for water damages in Mississippi, unlike State Farm, but says it’s open to discussions with homeowners and attorney general. At issue is up to $4 billion in damages denied to the insured.

MEDIMMUNE REVERSAL SIGNALS TREND

A Supreme Court decision favoring MedImmune in a patent licensing dispute with Genentech demonstrates the court’s frustration over the current state of patent law in areas important to U.S. firms, writes Mark H. Anderson.

SENATOR JOHNSON’S CONDITION UPGRADED

Sen. Tim Johnson’s condition is upgraded to fair from critical four weeks after he was hospitalized for a brain hemorrhage. The South Dakota Democrat, who underwent emergency surgery on Dec. 13, remains in intensive care.

BUSH LISTENING TO ALL IDEAS ON SOCIAL SECURITY

President would prefer not to boost Social Security taxes, but is ready to listen to all ideas on entitlement reform, say the White House, declining to explicitly rule out the idea of a tax hike.

SENATOR DODD MULLS PRESIDENTIAL RUN

Sen. Chris Dodd says he will decide within a few days whether to seek Democratic presidential nomination. As new chair of Senate Committee on Banking, Housing and Urban Affairs, Dodd sets predatory lending, shareholder rights on agenda.

CONGRESSMEN WANT TO PUNISH CHINA

Three Republican congressmen reintroduce legislation requiring tariffs on imports from China in retaliation for that country’s currency policy. Tariffs would kick in if China is found to be manipulating its currency.

GE SEEKS BIDS FOR PLASTICS UNIT

General Electric asks for bids on its plastics business, valued at as much as $10 billion, in auction that appears to reflect new concerns from Justice Department about lack of competition among possible private-equity buyers. GE shares edge higher.

VENEZUELA STOCK INDEX TUMBLES 15%

Caracas Stock Exchange IBC index slumps a day after President Hugo Chavez announced a nationalization drive that includes CANTV and vowed to overhaul key economic laws.

======= DOW JONES NEWSWIRES ANALYSIS AND COMMENTARIES =======

POINT OF VIEW
Baseball Guy A Creative Director Choice
California software company takes to heart the idea of expanding the pool of candidates for corporate director, writes Neal Lipschutz. For its first board member who isn’t a top manager or major investor, NetSuite picks Billy Beane, a baseball man.

NOTICE TO READERS
Get Tomorrow’s News Today
Tomorrow’s News Today is a Dow Jones Newswires end-of-day market newsletter emailed shortly after market close. It is complimentary to all Dow Jones News Service subscribers. To sign up, send email to tomorrowtoday@dowjones.com or call (800) 223-2274.

============ U.S. MARKETS ACTION ===========
DJIA down 6.89 points to 12416.60
NASDAQ up 5.63 points to 2443.83
S&P 500 up 3.13 points to 1412.84
10-year T-note unchanged at 99 23/32 yield 4.660
NYMEX Spot Crude down $0.45 at $55.64/bbl at close
Dollar/Euro down 0.0031 at 1.3000

Comments»

No comments yet — be the first.

Leave a Reply

Fill in your details below or click an icon to log in:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out / Change )

Twitter picture

You are commenting using your Twitter account. Log Out / Change )

Facebook photo

You are commenting using your Facebook account. Log Out / Change )

Google+ photo

You are commenting using your Google+ account. Log Out / Change )

Connecting to %s

%d bloggers like this: