News Highlights: Top Equities Stories Of The DayLast update: 1/26/2009 10:00:00 AM
TOP STORIES
PFIZER TO BUY WYETH FOR $68B; TO CUT JOBS
Pfizer announces deal to acquire Wyeth for $68 billion as the industry leader also says 4Q net income plunged 90% on $2.3 billion in litigation charges. Pfizer CFO says drug maker plans to cut 15% of its combined work force following the acquisition, or more than 19,000 employees. Pfizer shares fall 7%, while Wyeth rises 2%.
CATERPILLAR NET DROPS 32%, TO CUT 20,000 JOBS
Heavy-machinery maker's 4Q net income falls 32% to $661 million, or $1.08 a share, on a steep drop in demand. Company projects 2009 earnings well below analysts' estimates and plans to cut 20,000 jobs, or about 18% of its work force, to reflect the lower demand. Shares drop 9%.
US STOCKS OPEN MIXED; CATERPILLAR WARNS
U.S. stocks are opening mixed as Caterpillar lowers its earnings outlook and Pfizer unveils its $68 billion acquisition of Wyeth, the biggest drug sector deal since 2000. Caterpillar also is cutting 20,000 jobs and its shares fall 7% early. Wyeth shares rise 3%, Pfizer falls 7%.
ICELANDIC GOVERNMENT RESIGNS - PM HAARDE
Icelandic Prime Minister Geir Haarde announces the immediate resignation of his government in the wake of the country's dire economic crisis. The announcement comes days after Haarde announced early elections on May 9.
THAIN SAYS MERRILL BONUS POOL DOWN 41%
John Thain says Merrill's year-end bonus poll was down 41% from a year earlier and was much less than was allowed under the merger agreement. He also says he will reimburse Bank of America for expenses related to his office renovation.
SPRINT TO CUT 8,000 JOBS BY MARCH 31
Sprint Nextel will cut about 13% of its work force on all levels of the company, as it looks to cut costs amid an industry-wide drop in demand. The provider of U.S. mobile-phone services says it's aiming to cut labor costs by $1.2 billion a year with the move.
ROHM & HAAS, DOW DEAL WON'T CLOSE BY DEADLINE
Rohm & Haas plans to pursue "all available alternatives" after saying Dow Chemical no longer plans to close its pending $15.3 billion acquisition before the Tuesday deadline. Rohm & Haas shares slide 15%; Dow shares rise 2%.
CHICAGO FED INDEX SHOWS ECONOMY MIRED IN RECESSION
U.S. economic activity remained in a deep recession at the end of last year, even as it showed modest improvement for the last three months of the year, the Chicago Fed reports, as for December alone, the national activity index falls to -3.2.
BANKRUPTCY FEARS GRIP AUTO-PARTS SUPPLIERS
Some of the U.S.'s largest auto-parts makers plan for potential bankruptcy filings, or scramble to avoid them, amid uncertainty about Washington's willingness to increase its $17.4 billion bailout plan for Detroit's auto makers.
STIMULUS PLANS PUSHED AMID GOP COMPLAINTS
Obama administration officials continue their drive to build support for economic-stimulus legislation, after the White House outlines more details of its plan to resuscitate the economy and end the deepening financial crisis.
MCDONALD'S NET DOWN 23%, SALES RISE
Fast food giant's 4Q earnings slip to $985.3 million, or 87c a share, following a year-earlier tax gain, while U.S. same-store sales rise 5%. McDonald's plans to spend $2.1 billion on 1,000 new restaurants and improve existing ones. Shares slip 1%.
HALLIBURTON NET OFF 32% AMID KBR CHARGE
Oilfield-services firm's 4Q net income tumbles to $468 million, or 53c a share, from $690 million, or 75c a share, a year earlier, amid a charge related to its former subsidiary KBR, although sales and margins improved. Shares rise 6%.
HOME DEPOT TO SHUTTER EXPO, CUT 7,000 JOBS
Home Depot says it will close its Expo home-design business and cut 7,000 jobs, but says the retail woes of the past several months won't make it miss its fiscal-year forecast. The company will cut the officer ranks by 10%. Shares up 5%.
EATON NET DOWN 36% ON MARGIN DROP
Manufacturer posts a 36% drop in 4Q net income to $163 million, or 98c a share, down from $256 million, or $1.71 a share, a year earlier, on slumping margins and falling demand as it predicts 1Q results well below Wall Street's expectations.
S&P SAYS GE RESULTS DON'T CHANGE RATING VIEW
Ratings service says GE's 4Q results don't change its ratings view on the conglomerate. But S&P does note GE Capital will likely suffer more than it thought last month, and S&P takes the first step toward potentially lowering GE's AAA rating.
SMURFIT-STONE CONTAINER FILES FOR CHAPTER 11
Cardboard box maker, which has about $316 million of net debt payments coming due this year, files for Chapter 11 bankruptcy protection, as it struggles to find the free cash to meet its obligations amid sliding sales.
CHRYSLER SAYS IT CAN BE VIABLE BY SPRING
Auto maker says it can become stable even if the U.S. auto market slumps deeper than last year's lows, due to deep cost-cutting and a loosening of credit markets. It also asks dealers to accept a small reduction in profit margins and to resist the urge to slash orders for new vehicles.
TECH GIANTS ADD WAGE FREEZES TO COST CUTS
Some of the tech sector's biggest names, like Intel, Dell and Adobe, have quietly curtailed pay raises despite risks to employee morale, as they look for additional ways to weather the deteriorating economy,
BARCLAYS TO REPORT 2008 PRETAX PROFIT ABOVE £5.3B, SHARES RALLY
Shares in U.K. bank Barclays rally more than 50% after the chairman and chief executive say the bank will report "significant" pretax profits on February 9, the, adding that capital resources are "well in excess" of regulatory requirements. The rally follows nine consecutive days of decline amid fears over the prospect of further nationalization of U.K. banks.
OIL LOWER ON ECONOMIC WOES
Crude prices are under downward pressure as participants focus on the deteriorating economic conditions, which have sapped any confidence away from buyers, market participants say.
KIMBERLY-CLARK NET FALLS 8.1%
Kimberly-Clark's 4Q net income dropped 8.1% to $419 million, or $1.01 a share, from $456 million, or $1.07 a share, a year earlier, amid falling volumes and the stronger dollar. Company now projects 2009 results below analysts' expectations.
TYSON SWINGS TO LOSS ON SLUMPING MARGINS
Tyson posts a loss of $112 million, or 30c a share, on slumping margins and a 2.7% drop in volume as the company says its struggling chicken segment has begun to improve. Revenue increases 0.7% to $6.52 billion. Analysts expected a loss of 23c a share.
IRAQ SAYS US TROOPS COULD LEAVE BEFORE DEADLINE
Iraqi Prime Minister Nouri al-Maliki says he is determined the country's armed forces can be rebuilt quickly enough to allow U.S. troops to be withdrawn earlier than agreed. The U.S. military is slated to withdraw combat troops from Iraq by the end of 2011.
======= DOW JONES NEWSWIRES ANALYSIS AND COMMENTARIES =======
TECH VIEW
Tech Stocks May Be Entering Bull Market If investors live buy the rule "sell on good news, buy on bad news," then this market is one big opportunity to buy, John Dvorak writes, that is, if they have any money left.
HEARD ON THE STREET
Barclays Buys Itself More Time Today's open letter to shareholders should buy Barclays some time, says Simon Nixon, and after the temporary insanity of last week, the bank has a further chance to calm the market when it releases its full year results on February 9th.
============ U.S. MARKETS ACTION ===========
DJIA up 36.72 points to 8113.33
NASDAQ up 18.01 points to 1495.53
S&P 500 up 9.27 points to 841.37
10-year T-note 109 21/32 at 2.624 yield dn .025
NYMEX Crude up $0.88 at $47.31/bbl
Euro/Dollar up 0.0163 at 1.3127
(END) Dow Jones NewswiresJanuary 26, 2009 10:00 ET (15:00 GMT)
