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Dow Jones News Top Stories Of The Day – January 11, 2007 January 11, 2007

Posted by notapundit in Economic News.
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US STOCKS RALLY AMID EARNINGS OPTIMISM

U.S. stocks jump on strength in the technology sector and a pullback in crude-oil prices, as traders look ahead to next week’s earnings releases. Dow Jones Industrial Average was recently trading above its all-time closing high, up more than 70 points. Nasdaq gains about 1% to a six-year high.

CRUDE DROPS BELOW $52, A 20-MONTH LOW
Crude futures’ continued decline pushes prices down to levels last seen in May 2005. Reports of rising OPEC exports trigger fresh wave of selling by raising questions over cartel’s commitment to recent output-cut agreement.

SAP FALLS AFTER WARNING ON REVENUE
Business-software maker expects software sales to have grown in 2006 by around 11% to 3.1 billion euros ($4.02 billion). Number is below firm’s own guidance of 2006 software sales growth between 15% and 17%. Shares fall 10%.

APPLE, CISCO SPAR OVER IPHONE NAME
Cisco files a lawsuit against Apple over the iPhone name, but industry watchers say Apple likely vetted the trademark before forging ahead and naming its upcoming cellphone iPhone. Apple shares down 1%; Cisco up 1%.

BOSTON FED’S MINEHAN TO RETIRE IN 2007
Boston Federal Reserve President Cathy Minehan will retire this year after her successor is in place, a statement from the Boston Fed says. Minehan is a voting member of the Federal Open Market Committee this year.

US HOUSE PASSES STEM-CELL RESEARCH BILL
Democratic-controlled House passes bill bolstering embryonic stem cell research, but the 253-174 vote falls short of the two-thirds margin required to overturn President Bush’s promised veto.

STATE FARM MUST PAY $2.5M IN KATRINA CASE
A jury awards $2.5 million in punitive damages to a couple who sued State Farm Fire & Casualty for denying their claim after Hurricane Katrina, a decision that could benefit hundreds of other homeowners challenging insurers.

MICROSOFT HITS 5-YEAR HIGH
Shares gain another 2%, pushing shares of the software giant to their highest point since March 2002. J.P. Morgan analyst sees higher-than-expected fiscal 2Q revenue for entertainment division, which includes Xbox.

DELTA, NORTHWEST BONDS RISE AMID TALKS
Bonds of two airlines keep traders busy, as investors evaluate reported merger talks that surfaced yesterday, same day that US Airways upped its hostile takeover bid for Delta. Airline analysts think M&A consolidation is beneficial and inevitable.

BANK OF ENGLAND RAISES BANK RATE TO 5.25%
The Bank of England raises its official bank rate to 5.25% from 5.0% following a two-day monthly meeting of its Monetary Policy Committee. The decision to raise rates was unexpected. ECB keeps rates unchanged.

DELPHI EQUITY PLAN TO GIVE $500M TO INVESTORS
A group of investors who offered a $3.4 billion cash infusion to pull Delphi out of bankruptcy would collect nearly half a billion on the deal, Delphi says. Company is currently seeking approval from bankruptcy court to enter the agreement.

SENATOR JOHNSON LEAVES INTENSIVE CARE
U.S. Senator Tim Johnson is transferred out of intensive care and is starting to speak, his doctor says, nearly a month after he suffered a brain hemorrhage. His illness put in risk Democrats’ one-vote majority in the current Senate.

OVERSTOCK CORPORATE OFFICER RESIGNS
Retailer says Senior Vice President of Project Management Tad Martin resigned for personal reasons. Martin previously served as senior VP of merchandising and operations.

AUTO PARTS SUPPLIERS WEATHER TOUGH CONDITIONS
Supplier industry is slowly digging its way out difficulties created by the loss of market share by U.S. auto makers, lower production, high raw material costs and high labor costs. Lear and BorgWarner both forecast positive 2007 results.

NYSE PROBES EX-MERRILL BROKERS
NYSE regulators are investigating three former Merrill Lynch brokers ousted in 2003 for allegedly helping a hedge fund trade improperly in mutual funds. Merrill was fined $13.5 million in 2005 for failure to stop the improper trading.

US HEDGE FUNDS MAY SEE REDEMPTIONS
Hedge funds focused on U.S. markets will see net redemptions for the first time ever in 2007 as investors shift money to emerging-markets managers, especially those specializing in China, according to annual survey by Deutsche Bank.

BRISTOL, ASTRAZENECA IN DIABETES PACT
Firms to jointly develop, market two experimental diabetes drugs, with AstraZeneca paying up to $1.35 billion to Bristol-Myers. Both companies have suffered setbacks in developing new treatments for diabetes. AstraZeneca gains 2%; Bristol up 1%.

US JOBLESS CLAIMS SLIDE 26K IN WEEK
New claims for unemployment insurance tumble by a larger-than-expected 26,000, to 299,000 in week to Jan. 6, pushing below a key threshold and providing further evidence that labor market conditions remain quite strong.

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

STREET SAVVY
Stocks May Get Wrong Type Of P/E Rise
Although they admit torrid pace of earnings growth for U.S. companies is likely to slow this year, bullish Wall Street strategists expect expansion of price-to-earnings ratio to pick up some of the slack for further share price gains, Spencer Jakab writes.

PRACTICE MANAGEMENT
Combining Finance With Fitness
The desire to stay fit and active is becoming increasingly strong among baby boomers as they contemplate retirement — and health has a bearing on their finances, writes Victoria Knight. Insert item from new buffer here

============ U.S. MARKETS ACTION ===========
DJIA up 72.82 points to 12514.98
NASDAQ up 25.52 points to 2484.85
S&P 500 up 8.97 points to 1423.82
10-year T-note down 11/32 at 99 04/32 yield 4.735
NYMEX Spot Crude down $2.14 at $51.88/bbl at close
Dollar/Euro down 0.0051 at 1.2894

Comments»

1. Gene - January 11, 2007

I have to say that with the massive decline in crude oil prices, I have not seen much of a decline, if any, at my local gas station. Before this slide began, when crude was dropping a little here and there, it was reflected at the pumps. Here in Maryland, in my area, the prices seems to be holding steady around $2.30-$2.40 per gallon for regular unleaded. Seems to me that all the oil companies are still gouching the consumers. Is it any wonder that Exxon had a record quarter recently? I just don’t understand how gasoline can be priced the same now when crude is $51 per barrel as when it was $60 per barrel. Can someone explain this to me?


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