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Dow Jones News Top Stories Of The Day – January 10, 2007 January 10, 2007

Posted by notapundit in Economic News.
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NORTHWEST, DELTA IN TALKS ABOUT COMBINATION

Northwest in recurring talks with Delta about potential link-up between the two, possibly after they both emerge from bankruptcy-court protection, say people familiar with the matter. Meanwhile, U.S. Airways ups the ante by sweetening its takeover bid for Delta to $10 billion from $8.4 billion. Delta management has rebuffed U.S. Airways’ previous offer and company raises concern about latest offer’s debt levels.

GENENTECH’S 4Q EARNINGS RISE 75%

Genentech’s 4Q net income climbs to $594 million, or 55c a share, driven in part by success of company’s new eye drug, Lucentis. EPS is 61c excluding items, beating expectations by a nickel. Revenue rises 43% to $2.71 billion.

US NOVEMBER TRADE GAP NARROWS TO $58.2B

U.S. trade balance narrows for a third straight month, reaching its lowest point since July 2005 in an unexpected 1% decline that could mean a boost for the economy. Economists expected deficit to widen to $60 billion.

EBAY NEAR DEAL TO BUY STUBHUB

Internet auctioneer nears a deal to purchase ticket reselling Web site StubHub for potentially more than $300 million. Stubhub is the largest tickets-only reseller of concert, sports, and event tickets. Shares down 1%.

APPLE HITS HIGH; ANALYSTS SEE ROOM TO GROW

Company’s shares rise over 4% to an all time high following the company’s long-awaited announcement that it would enter the cellphone market. But for many on Wall Street the stock price still has room for growth.

BOSTON SCIENTIFIC SEES $2.065B IN 4Q SALES

Boston Scientific says it expects 4Q net sales of about $2.065 billion, including world-wide sales of $506 million from its drug-coated stent business, which has been pressured by clotting concerns for last several months.

WALGREEN CHAIR STEPS DOWN FROM EXECUTIVE DUTIES

Drugstore chain says Chairman David Bernauer is stepping down from his executive duties with the company, but will remain chairman. Jeffrey Rein, president and CEO, will assume Bernauer’s executive duties.

EXPRESS SCRIPTS SUES TO UPSET CAREMARK, CVS

Express Scripts asks Delaware court to void $675 million breakup fee protecting planned merger of Caremark Rx and CVS. Suit is another step-up in hostilities over who should merge with Caremark: Express Scripts or CVS.

EX-CENDANT CHAIR REQUESTS LESS THAN 10-YEAR SENTENCE

Walter A. Forbes asks a federal judge to sentence him to no more than 10 years in prison in connection with a $500 million accounting scandal at the company.

GRASSO ASKS COURT TO OVERTURN PAY RULING

Former New York Stock Exchange Chairman Richard Grasso asks a state appeals court to throw out a lower court’s ruling that he must return a portion of his $187.5 million compensation package.

J&J REASSERTS CASE OVER LOST GUIDANT DEAL

A Johnson & Johnson filing in federal court reasserts the company’s argument that improper conduct led to Boston Scientific and Abbott Laboratories successfully wooing Guidant away from a deal with J&J last year.

KODAK TO SELL HEALTH GROUP TO ONEX

Kodak agrees to sell its health group business to Onex for $2.35 billion in cash and up to $200 million in additional future payments. Deal could pose negative implications for shareholders while improving its debt profile. Shares slip 1%.

TWO GAP OFFICIALS LEAVING

Denise Johnston, president of Gap Adult, departs Friday, while Ivy Ross, Old Navy’s executive vice president of product design, will leave in a week, indicating it plans to seriously change course to stem its sales and earnings slide. Shares drop 1%.

MOSKOW’S BIGGEST WORRY STILL INFLATION

Chicago Fed President Moskow says although the inflation environment appears to be improving, too-high price pressures remain the central bank’s chief risk. He doesn’t see housing’s troubles leading to general economic weakness.

CHICAGO DEC PMI REVISED TO 51.6 VS 52.4

December index of manufacturing activity is recalculated to 51.6 on a seasonally adjusted basis, from 52.4 previously announced. December index remains above 50, which indicates economic expansion.

FDA WANTS REVIEW BACK TO 2000

Food and Drug Administration is asking all drug companies that have submitted drug-approval applications to the agency since 2000 to review them to see if they include questionable test results conducted by a unit of MDS.

PARAMOUNT PRODUCTION HEAD BERMAN LEAVING

In a move that has long been anticipated, Paramount Pictures’ head of production, Gail Berman, is parting ways with the studio. Berman is currently negotiating her exit package with the studio, according to people familiar with the situation.

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

LATE TRADING
Genentech Up On 4Q Beat, ’07 Forecast
Biotech firm’s shares rise over 1% in late trading after the company reports 4Q net income rises to $594 million, or 55¢ a share, from a year-earlier profit of $339 million, or 31¢, beating analysts’ expectations of 56¢.

SMALL CAPS
Small Caps Flat; Commodities Lower
Small stocks eke out small gains, behind the broad market. Airline stocks, however, rise on expectations of more consolidation in the industry. AirTran up 5.1%. Precious metals slide with gold, silver futures. Hecla Mining down 2.2%.

============ U.S. MARKETS ACTION ===========
DJIA up 25.56 points to 12442.16
NASDAQ up 15.50 points to 2459.33
S&P 500 down 0.73 points to 1412.11
10-year T-note down 8/32 at 99 15/32 yield 4.656
NYMEX Spot Crude down $1.62 at $54.02/bbl at close
Dollar/Euro down 0.0059 at 1.2937

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