The Wall Street Journal-20080118-Business and Finance
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Business and Finance
The Dow industrials dropped 306.95 points, or 2.5%, to 12159.21 on investors' fears of more damage to come from the subprime-mortgage crisis. All of the average's 30 components fell. Small-company and transportation stocks dropped into bear-market territory and tech shares are close to crossing that line. Financial stocks, especially bond insurers, were hard hit.
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Merrill Lynch reported a loss of $9.83 billion, the worst in its 94- year history, on write-downs totaling nearly $15 billion. The firm's shares tumbled 10%.
WaMu posted a $1.87 billion loss on a sharp rise in its loan-loss reserve as the thrift was battered by the mortgage crisis.
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Retailers are cutting back on store openings and inventory as sales slide, in what may be the industry's worst slump in 17 years.
HMV posted strong holiday sales, a rare glimmer of hope for the music and retail sectors.
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The directors' guild reached a tentative three-year deal with the major movie studios, adding to pressure on striking screenwriters to accept a similar pact.
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Housing starts plunged 14.2% last month to their slowest pace in 16 years amid a rise in delinquent construction loans.
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GM could see "significant" profit gains in two to three years, helped by a new labor pact and overseas sales, its CEO said.
The UAW's president said the union's contract with the Big Three should save the auto makers about $1,000 per U.S.-built car.
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Countrywide approved retention bonuses and stock awards for four executives as it prepares to be acquired by Bank of America.
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AMD posted a massive loss on $1.68 billion in charges from its purchase of ATI but nearly broke even on an operating basis.
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Comcast shareholder Chieftain called for the ouster of the cable company's CEO as part of a campaign to boost Comcast stock.
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EMI is in danger of losing the Rolling Stones and their album catalog, in what would be the latest in a string of defections.
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NYSE agreed to buy the Amex for $260 million in stock plus proceeds expected from the sale of its smaller rival's headquarters.
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IBM forecast strong earnings growth of 15% per share for this year as it reported a 12% increase in fourth-quarter profit.
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Carlsberg and Heineken proposed raising their bid for Scottish & Newcastle to $15.3 billion. S&N shares rose 5.4% on the news.
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Anglo American is in talks to buy control of two Brazilian iron-ore mining projects in a deal valued at about $5.5 billion.
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Alcatel-Lucent said the head of its services business left to become CEO of Acxiom.
