The Wall Street Journal-20080115-Business and Finance
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Business and Finance
IBM surprised investors by preannouncing stronger-than-expected fourth-quarter sales and earnings, leading to speculation that the U.S. economic slowdown may not be hurting tech companies as much as expected. The company's shares rebounded, rising 5.4% to $102.93.
The Dow industrials climbed 171.85 to 12778.15, fueled by IBM's results and prospects for rate cuts. The dollar weakened.
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Citigroup is expected today to announce a sizable dividend cut, a cash infusion of at least $10 billion, a write-down of up $20 billion in mortgage-related investments and deep job cuts.
China has apparently squashed a multibillion-dollar investment in Citigroup by state-owned China Development Bank.
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Sears warned that results for the quarter and year would fall well below forecasts, continuing a sharp slide in sales and profit and sending shares tumbling 5%.
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The EU has begun two new probes into potentially abusive competition practices at Microsoft, focusing on its Web browser and software suite.
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Senate investigators are examining whether Wall Street firms used derivatives to help hedge funds avoid dividend taxes.
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Delta has opened merger talks with both United and Northwest and hopes to negotiate an agreement with one of the airlines over the next two weeks.
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The U.S. is likely in or about to enter a recession, Greenspan said, citing a drop in the purchasing-managers index and a jump in the unemployment rate.
Greenspan will advise Paulson, a fund that has profited from the collapse of a housing bubble some say the ex-Fed chief fueled.
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Merck and Schering-Plough said a trial showed their cholesterol drug Vytorin failed to slow progression of heart disease better than a cheaper medication.
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New York gold futures hit record highs on expectations of further rate cuts and inflation fears, settling at $901.60.
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Auto executives are voicing increased pessimism about this year, with luxury-car sales showing more signs of weakness.
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Centro's CEO quit as the Australian retail-property concern seeks to sell all or part of itself.
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The FCC has so far failed to attract a bidder for its coming auction of discounted airwaves.
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Sprint plans to lay off several thousand workers as its new CEO seeks to show a commitment to efficiency and cost discipline.
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Fidelity is reopening its Magellan Fund to all investors after a decade of restricted access.
