The Wall Street Journal-20080123-Business and Finance
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Business and Finance
The Fed surprised markets by cutting its main interest-rate target by three-quarters of a percentage point to 3.5% a week before a scheduled meeting to decide on rates. With global markets in free fall, the move temporarily shored up confidence. The Dow industrials fell 128.11 points, or 1.1%, to 11971.19, recovering from a 464-point drop.
The Fed's rate cut contributed to a global stock rally, but signs of a bear market are appearing. Beaten-down bank shares could gain momentum.
Crude fell 72 cents to $89.85 a barrel. A U.S. recession could slow the commodities boom.
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Apple posted a 58% jump in profit on record Mac sales but issued a tepid outlook. Shares fell over 10% after hours.
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Bank of America and Wachovia reported their lowest quarterly profit in nearly a decade, capping a poor earnings season for the banking industry.
Ambac posted a $3.26 billion net loss and said it was in talks with potential partners that could help it boost reserves.
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EBay insider John Donahoe, seen as the front-runner to succeed CEO Whitman, could face a daunting task as the company tries to revive revenue growth.
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Sears's plan to reorganize its operating units could herald the spinoff or sale of the retailer's real-estate holdings.
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Value City's parent is expected today to disclose a plan to sell off the discount stores.
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The Supreme Court turned away an appeal from Enron shareholders seeking to recover losses from Wall Street banks.
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Delphi agreed to sharply cut the payout of $87 million in executive bonuses to gain approval of its reorganization plan.
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Roche reached a deal to buy diagnostics company Ventana Medical Systems for $3.4 billion after raising its offer by 19%.
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DuPont's profit fell 37% due to a year-earlier tax benefit. Sales climbed 11% amid strong growth in emerging markets.
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J&J posted a 9.5% rise in net despite safety concerns that hurt sales of two key products. Revenue rose 17% to $15.96 billion.
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Focus Features bought the comedy "Hamlet 2" for $10 million at the Sundance Film Festival after a protracted bidding war.
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Research In Motion unveiled features designed to make it easier for BlackBerry users to manage their wireless email.
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Gaz de France's planned merger with Suez could be delayed after a court required GDF's union to weigh in on the deal.
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European regulators are set to propose today tougher caps on greenhouse-gas emissions.
