Pinks Gone Wild

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News Highlights: Top Equities Stories Of The DayLast update: 1/21/2009 8:00:30 AM

TOP STORIES

INTEL CEO SAYS CAN'T RULE OUT 1Q LOSS
Intel chief executive told employees last week that conditions are so uncertain in the 1Q that he could not rule out reporting a loss. The chip maker has not reported a net loss since 1986.

US STOCKS TIPPED FOR MODEST RECOVERY
U.S. equities are expected to open slightly higher Wednesday as a modest early recovery from Tuesday's sharp falls was predicted.

UNITED TECHNOLOGIES RISES ON AEROSPACE STRENGTH
United Technologies posts an 8% increase in fourth-quarter net income at $1.15 billion, or $1.23 a share as positive results from its aerospace division more than offset a slide at its Carrier business.

BANK OF NEW YORK POSTS $1.2B WRITE-DOWN
Bank of New York Mellon abruptly announces its 4Q earnings two days ahead of schedule, posting $1.2 billion in unrealized losses even as the firm seeks to ease investors' fears.

IBM PROFIT RISES 12%; ISSUES STRONG '09 VIEW
IBM reports net income of $4.43 billion, or $3.28 a share, while revenue falls 6.4% to $27.01 billion. Analysts expected EPS of $3.03 on revenue of $28.15 billion. Shares rise 4% late as the computer giant issues a 2009 earnings view above analysts' estimates.

NEW PRESIDENCY RISES UNDER FALL OF RECESSION
With President Barack Obama's first day on the job, the financial uncertainty facing his presidency made itself felt. The markets continue to fall, worst inauguration-day performance in history, amid fresh signs of trouble among the nation's banks.

CITIGROUP CEO, OTHERS DECLINE INCENTIVES
Citigroup's Vikram Pandit, Chairman Sir Winfried Bischoff and Chief Financial Officer Gary Crittenden decide not to be considered for recently approved incentive or retention awards.

BLACKROCK NET FALLS ON MARKET DOWNTURN
BlackRock net earnings plunge 84% in fourth-quarter to $53 million, or 40 cents a share on performance fees as steep declines in the global equity markets cut into assets under management. Shares fall 3% premarket.

CRUDE DOWN WITH SHARES, FOCUS ON ECONOMY
Oil futures broadly stable as participants looked to key U.S. supply data Thursday to gauge future price direction, but the market continued to fret about slowing oil consumption and turmoil across financial markets.

BANKS, FIRMS SEEK BIGGER ROLE IN INFRASTRUCTURE
In a report due out today, a group of firms and banks, including Morgan Stanley, Credit Suisse and The Carlyle Group, say $180 billion of private capital is available for investment in highways, airports and other transportation infrastructure.

CHRYSLER-FIAT DEAL NEEDS US LOANS
Chrysler has found an international partner in Fiat SpA but the auto maker isn't out of the woods, mainly because the deal is contingent on Chrysler getting $3 billion in additional government loans, say people familiar with the pact.

ERICSSON NET PROFIT DIPS 31%, TO CUT JOBS
Shares in Sweden's Ericsson rise sharply as it reports better than expected fourth-quarter sales, but posts a 31% drop in net profit on restructuring costs and a lower contribution from Sony Ericsson.

US CHAIN STORE SALES UP 1.1%
ICSC and Goldman Sachs Retail Chain Store Sales Index increases 1.1% in the week to January 17 from its level a week before, on a seasonally-adjusted, comparable store basis

PENSION FUNDS SEE PROPERTY INVESTMENTS SOUR
Real-estate investments by pension funds and other big investors lost a record 11% of their value in the fourth quarter of 2008, with market participants saying that values are almost certain to fall further,

BOE MULLS MONEY SUPPLY INCREASE
The Bank of England is preparing to increase the broad money supply to ensure growth doesn't slow so much that inflation falls sharply below target, BOE Governor Mervyn King says.

PIMCO QUITS GM BONDHOLDER GROUP
Pacific Investment Management has resigned from an investor committee negotiating with General Motors in a debt-for-shares exchange, Bloomberg News reports. Pimco is among the biggest holders of GM bonds.

EUROPEAN SHARES FALL AS BANKS SLIDE AGAIN
The financial sector is hit once again in Europe, with most lenders falling sharply as investors continued to fret that governments will be forced to step in and nationalize ailing lenders.

ISRAEL SAYS GAZA STRIP PULLOUT COMPLETED
Israeli soldiers complete their withdrawal from the Gaza Strip after a 22-day offensive against the Islamist Hamas movement, an army spokesman says.

PROSECUTORS FOCUS ON MADOFF POINT MAN
As a key lieutenant to money manager Bernard Madoff for more than 30 years, Frank DiPascali Jr. says he headed stock-options trading and was the point man for investment-advisory clients. Now, he is a potential point man in the investigation of an alleged Ponzi scheme.

ECB'S TRICHET SAYS NO THREAT OF DEFLATION
Euro-zone inflationary pressures are diminishing, but there is currently no threat of deflation, European Central Bank President Jean-Claude Trichet says.

BHP SHEDS 6% OF WORKERS AS DEMAND SLUMPS
BHP Billiton says it will shed around 6% of its global workforce, shut an Australian nickel mine, and cut coal output in response to low commodity prices. Earlier, Rio Tinto announced a further 6% reduction in aluminum production at its Alcan operations.

HYPO RE SAYS GOVERNMENT UPS GUARANTEE
Troubled German property financier Hypo Real Estate says the federal government has increased the state guarantee for bonds issued by the company by $15.5 billion.

SOCIETE GENERALE SAYS SHOULD BREAK EVEN IN 4Q
French bank Societe Generale says it should break even in the 4Q as worsening market conditions hamper its equity derivatives business. Separately, the French government gives banks until the end of August to benefit from a second round of financial support.

BARCLAYS, LLOYDS SHARES TUMBLE ON RESULTS FEARS
Shares in Barclays fall to a 20-year low, after a newspaper report said that the U.K. bank was under intense pressure to bring forward its full-year results. Meanwhile, shares in Lloyds Banking Group are also sharply lower.

OBAMA SEEKS SUSPENSION OF GUANTANAMO CASES
President Barack Obama has ordered prosecutors to seek a suspension of military trials at the controversial camp at Guantanamo Bay, documents due to go before judges today show.




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

IN THE MONEY
Market Downturn Fuels Active-Passive Debate In recent months, tens of billions of dollars have flowed out of actively-managed investment vehicles. Aside from money-market funds, chief beneficiaries have been funds whose composition mimics an index -- so-called passive investments, Michael A. Pollock says.


HEARD ON THE STREET
Japan's Regional Banks Line Up For Cash In a world of bank bailouts and nationalizations, Japan has mainly been a spectator. Until now. Japan's regional banks need cash, writes James Simms.


============ U.S. MARKETS ACTION ===========
DJIA 7949.09 from Tuesday
NASDAQ 1440.86 from Tuesday
S&P 500 805.22 from Tuesday
10-year T-note 111 23/32 at 2.400 yield dn .044
NYMEX Crude up $0.70 at $41.54/bbl
Euro/Dollar up 0.0008 at 1.2912

(END) Dow Jones Newswires