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Dow Jones News Top Stories Of The Day – January 24, 2007 January 24, 2007

Posted by notapundit in Economic News.
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EBAY 4Q NET RISES 24% AS CORE BUSINESS IMPROVES

Online auctioneer posts net income of $346.5 million, or 25 cents a share, as revenue rises 29% to $1.72 billion. Excluding items, EPS of 31c beats analysts’ estimate for EPS of 28c. EBay also beats analysts’ revenue prediction of $1.67 billion. Company offers rosy full-year profit outlook amid solid pick-up in selling activity in its core Marketplaces business and strength across other divisions, and says it will boost share-buyback program by $2 billion. Shares up 10% late.

U.S STOCKS RALLY; DJIA HITS RECORD

Stocks rally on news from Yahoo and Sun Microsystems, which rise 7% and almost 9%, respectively, pushing the Nasdaq Composite to its highest close so far this year, and with DJIA posting a record close on advancing AT&T.

SIEMENS SEEN NEAR DEAL TO BUY UGS

Germany’s largest conglomerate is near a deal to buy software maker UGS Corp. of Texas for $3.5 billion, including assumed debt, from a group of three private equity firms, people close to the matter say.

NETFLIX 4Q PROFIT DOWN, REVENUE CLIMBS 44%

Online DVD rental pioneer reports profit of $14.9 million, or 21c a share, beating Wall Street expectations of 15c a share. Revenue climbs to $277.2 million on a 51% increase in subscribers. Shares up 7% in late trade.

BUSH PLAN WOULD CURB USE OF FOREIGN OIL

President, in his State of the Union address, calls for a 20% cut in gasoline consumption over the next decade through new fuel-economy standards and a massive boost in federal mandates for using ethanol and other alternative fuels.

QUALCOMM 1Q PROFIT UP 4.5%

Qualcomm earnings rise to $648 million, or 38c, thanks to growing demand for wireless phones, with revenue up 16% to $2.02 billion, slightly below views. Rambus reports fiscal 4Q revenue of $51.7 million, up 24% from a year ago.

LSI LOGIC 4Q PROFIT SOARS 55%

Chip designer reports net of $59 million, or 14c a share, compared with $38 million a year ago. Sales rise 3.4% to $523.7 million. LSI Logic offers a soft forecast for 1Q revenue of $460 million to $480 million, below Wall Street views.

MCDONALD’S NET DOUBLES ON CHIPOTLE GAINS

Fast-food chain earns $1.24 billion, or $1 a share, by same-store sales growth and gains from the sale of Chipotle Mexican Grill. McDonald’s profit from continuing operations is 61c a share, matching expectations. Shares fall 1%.

AMERISOURCEBERGEN 1Q NET RISES 26%

Shares jump 6% as drug services provider posts earnings of $122.2 million, or 63c a share, as total revenue rises 14% to $16.73 billion. CEO anticipates making ‘modest’ acquisitions, but would consider larger ones.

AIG OFFERS TO BUY 21ST CENTURY INSURANCE

AIG says it offered to buy the 38.1% of 21st Century Insurance Group that it doesn’t already own for roughly $690 million in cash. Bid values the auto insurer at $19.75 a share.

TEXTRON 4Q SALES RISE 19%

Maker of helicopters, Cessna aircraft and weaponry reports earnings of $195 million, or $1.53 a share, with sales up to $3.2 billion. Analysts expected $1.46 a share on sales of $3.1 billion. Shares fall 4% in late trade.

YAHOO SHARES UP; AD SYSTEM ON TRACK

Shares jump 7% a day after its 4Q net falls 61% to $269 million, or 19c a share, on stock-option expenses and year-ago investment gain but Yahoo says overhaul of Internet search ad system is on track to deliver financial benefits.

CONOCOPHILLIPS 4Q NET DROPS 13%

Oil company reports 4Q earnings of $3.2 billion, or $1.91 a share, reflecting a reduction of 17c a share related to previously disclosed impairments. Revenue falls 19% to $41.5 billion. Analysts expected profit of $1.95 a share. Shares edge up.

DELTA SAYS US AIR MERGER MAY DELAY CHAPTER 11 EXIT

Delta Air CEO Gerald Grinstein says the struggling airline could be stuck in bankruptcy for as much as a year if US Airways’ hostile takeover bid isn’t stopped now.

CHRYSLER CONFIRMS FEBRUARY 14 PLAN ANNOUNCEMENT

DaimlerChrysler confirms it will present its restructuring plan on February 14, when the auto maker will also report 4Q and 2006 full-year earnings. The plan is designed to return the company to profitability.

UAW TAKES ISSUE WITH FORD BONUSES

Ford’s possible decision to offer bonuses to significant portion of its white-collar workforce undermined its relationship with United Auto Workers union. UAW could strike at individual plants to kill the bonuses.

MERRILL OKS $146M IN PAY FOR 7 EXECUTIVES

Merrill Lynch approves pay packages worth a total of more than $146 million for seven of its executives, according to regulatory filings. The brokerage firm hasn’t yet disclosed compensation for Chairman and CEO Stanley O’Neal.

TESTIMONY DELAYED IN COKE TRADE SECRETS TRIAL

Federal judge delays testimony in the trial of a former Coca-Cola secretary, Joya Williams, charged with conspiring to steal trade secrets from the beverage giant because of controversy over the use of sensitive documents.

ABBOTT POSTS 4Q LOSS ON KOS ACQUISITION

Pharmaceutical firm posts loss of $476.2 million, or 31c a share, down from year-ago profit of $976.4 million, on purchase of Kos. Sales rise 3% to $6.22 billion behind the continued surge of its blockbuster drug Humira.

USDA OFFERS $1.6B FOR RENEWABLE FUEL RESEARCH

USDA, following President Bush’s call for a substantial increase in U.S. ethanol production in his State of the Union address, says it expects the bulk of the research funds to be spent on cellulose-based ethanol.

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

ANALYSIS
Tribune’s Best Option May Be Solo Flight
News Corp.’s deep pockets may help finance the Chandlers’ conditional bid but may not make it more attractive. Media empire’s best option may be to go it alone, but mirror the added debt, broadcast-asset spinoff and other features of outside offers for the firm.

NOTICE TO READERS
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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 up 87.97 points to 12621.77
NASDAQ up 34.87 points to 2466.28
S&P 500 up 5.04 points to 1427.99
10-year T-note up 1/32 at 98 18/32 yield 4.804
NYMEX Spot Crude up $0.33 at $55.37/bbl
Dollar/Euro down 0.0061 at 1.2959

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