Dow Jones News Top Stories Of The Day – January 22, 2007 January 22, 2007Posted by notapundit in Economic News.
PFIZER TO CUT 10K JOBS; 4Q NET SOARS ON GAIN
Drug maker announces it will cut another 10,000 jobs in a restructuring aimed at saving up to $2 billion a year. Firm, which issues 2007 and 2008 guidance, earlier says 4Q net income more than triples to $9.45 billion, or $1.32 a share, boosted by sale of its consumer division. Adjusted earnings fall 12% to 43c a share and revenue edges higher to $12.6 billion. Shares fall 1%.
AMERICAN EXPRESS 4Q NET UP 24%
Financial-services firm’s net income rises to $922 million, or 75c a share, a penny below analysts’ expectations. Net revenue climbs 13% to $7.21 billion. American Express helped by record holiday cardmember spending. Shares flat.
US STOCKS DOWN ON TECH WEAKNESS
Stocks slide despite a lack of significant negative news, led by continued weakness in the tech sector and exacerbated by a downgrade to Dow component Boeing. DJIA falls 105 and Nasdaq is off 22.
MOSKOW TO LEAVE CHICAGO FED
Michael Moskow announces he will step down on Aug. 31, in accordance with the Fed’s mandatory retirement policy. Moskow is a voting member this year of the policy-making FOMC.
KRAWCHECK TO LEAD CITI’S WEALTH MANAGEMENT
Citigroup CFO Krawcheck to become global wealth management division’s chairman and CEO, replacing Todd Thomson, who has left the company. The pair switched jobs in late 2004, with Krawcheck becoming financial chief.
YELLEN SEES RATES POSITIONED TO COOL INFLATION
San Francisco Fed President says current monetary policy may be ‘well positioned’ to cool inflationary pressures. A non-voting FOMC member, Yellen speaks at a time of increasing optimism that inflation threat is waning.
GM SHARES UP ON EARNINGS OPTIMISM
Shares of General Motors rise nearly 3%, hitting a two-month high as investors place bets that the world’s largest auto producer could be poised to announce better-than-expected earnings Jan. 30.
EX FANNIE CEO WANTS HEARING BY FEB 16
Franklin Raines files legal papers requesting a hearing by Feb. 16 into allegations that he and two other former executives manipulated earnings and deliberately misled financial reporting.
MORE FIRMS SEE HOLDER PRESSURE OVER EXECUTIVE PAY
Research by Institutional Shareholder Services says more than twice as many companies this year will face shareholder proposals to tie executive pay to performance.
SUN TO BUY INTEL CHIPS FOR SERVERS
Sun Microsystems will start using Intel.’s Xeon chips in its current line of corporate servers in the first half of 2007. Deal is seen as a blow to Advanced Micro Devices, which is now Sun’s exclusive source for chips.
CHICAGO FED SHOWS ABOVE-TREND GROWTH
Chicago Fed National Activity Index shows above-trend economic growth for December, the first time in four months. The National Activity Index is reported at +0.04 in December, compared with -0.30 the month before.
ABN AMRO SELLS US MORTGAGE GROUP
ABN Amro says it will sell its US Mortgage Group business to Citigroup as the Dutch bank looks to market more of its products through its bank branches in the Midwest and not through a network of independent brokers. ABN falls 1%.
MOYES OFFERS TO BUY SWIFT FOR $2.74B
Jerry Moyes, founder of Swift Transportation, plans to take the trucking firm private for $31.55 per share, compared with Friday’s closing price of $27.74. His group also will assume $332 million in debt. Swift shares climb 9%.
MAY LEAVING COO POST AT TWEEN BRANDS
Ohio-based retailer says COO William May Jr. has resigned, effectively immediately. Tween says it has named Kenneth Stevens president and operating chief, effective Jan. 29.
CANTV DOWN ON TAKEOVER MOVE
ADRs of Venezulea’s biggest telecommunications firm drop 18% a day after Chavez orders an immediate takeover of CANTV, even before he pays shareholders for nationalizing their assets.
EXECUTIVES ASK BUSH FOR POLLUTION CURBS
Chief executives of 10 major organizations, on the eve of the State of the Union address, urge President Bush to support mandatory reductions in climate-changing pollution and establish reductions targets.
SEC STAFF DEMURS ON H-P PROXY VOTING
Commission staff declines to weigh in on whether Hewlett-Packard may block shareholders from having more say in selecting corporate directors by the use of corporate proxy. Decision leaves the five commissioners to resolve the controversy.
PARCELLS LEAVES COWBOYS SIDELINE
Bill Parcells says he is ‘retiring from coaching football,’ after resigning from three other teams in his 20-year career as an NFL coach. The 65-year-old went 34-30 in four years with Dallas.
======= DOW JONES NEWSWIRES ANALYSIS AND COMMENTARIES =======
Restaurants Are A Mixed Group
Ryan Detrick is bullish on further moves from Krispy Kreme Doughnuts, Brinker International and Burger King, but urges investors to be “cautious’ about McDonald’s as it nears an all-time high.
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============ U.S. MARKETS ACTION ===========
DJIA down 83.16 points to 12483.37
NASDAQ down 18.48 points to 2432.83
S&P 500 up 4.13 points to 1430.50
10-year T-note up 5/32 at 98 31/32 yield 4.773
NYMEX Spot Crude down $0.82 at $52.58/bbl at close
Dollar/Euro down 0.0017 at 1.2945