MarketWatch.com - MarketPulse

Marvell Technology swings to third-quarter profit

Tue, 02 Dec 2008 21:22:00 GMT

SAN FRANCISCO (MarketWatch) - Marvell Technology on Tuesday reported third-quarter net income of $71 million, or 11 cents a share, compared with a loss of $6.4 million, or 1 cent a share, for the year-earlier period. Revenue was $791 million, up 4% from $758 million last year. Adjusted income was 23 cents a share. Analysts had expected the chip maker to report earnings of 21 cents a share on revenue of $794.2 million, according to a consensus survey by FactSet Research.

Market Pulse Stories are Rapid-fire, short news bursts on stocks and markets as they move. Visit MarketWatch.com for more information on this news.

Moody's may downgrade Motorola on weak performance

Tue, 02 Dec 2008 21:18:27 GMT

SAN FRANCISCO (MarketWatch) -- Moody's Investors Service on Tuesday placed Motorola Inc.'s Baa2 rating under review for possible downgrade due to the company's prolonged decline in performance. The ratings agency also cited the uncertainty over the cost and the timeframe of returning the handset business to profitability. "While the company has retained a handset CEO with substantial industry credentials and has outlined a fairly broad restructuring plan, handset performance will likely continue to deteriorate at least in the near term, at a time when the remaining businesses will likely see continued pressure due to the worsening global economic environment," said Moody's in a statement.

Market Pulse Stories are Rapid-fire, short news bursts on stocks and markets as they move. Visit MarketWatch.com for more information on this news.

U.S. stocks end firmly up as automakers pitch bailout plans

Tue, 02 Dec 2008 21:16:38 GMT

NEW YORK (MarketWatch) -- U.S. stocks ended firmly higher on Tuesday, gaining back some ground after a 680-point slide in the Dow industrials on Monday, as automakers hopeful for public money presented plans to return to profitability. The Dow Jones Industrial Average gained 270 points, or 3.3%, to end at 8,419. On the Dow, shares of General Motors Corp. gained 5.7%, after the automaker presented a survival plan that would require up to $18 billion in federal loans. It earlier said its sales had plunged 41.3% in November. Separately, Ford Motor Co. asked for $9 billion while its November sales slumped 31%. The S&P 500 index gained 4% to 848, while the Nasdaq Composite rose 51 points, or 3.7%, to end at 1,449.

Market Pulse Stories are Rapid-fire, short news bursts on stocks and markets as they move. Visit MarketWatch.com for more information on this news.

GE Capital files to issue FDIC-backed debt

Tue, 02 Dec 2008 21:12:09 GMT

SAN FRANCISCO (MarketWatch) -- General Electric Capital Tuesday filed a prospectus with the Securities and Exchange Commission to issue notes backed by the FDIC. Terms and size weren't disclosed, although GE spokesman Russell Wilkerson said the company had filed for a "benchmark" deal, or one over $500 million. An offering from General Electric Co.'s troubled financing arm would join similar government-backed debt deals issued by Goldman Sachs , Morgan Stanley and Bank of America Corp. . General Electric on Tuesday guided to the low end of its previously announced range for fourth-quarter earnings and pledged to shrink GE Capital, reducing its debt leverage and widening its sources of funding.

Market Pulse Stories are Rapid-fire, short news bursts on stocks and markets as they move. Visit MarketWatch.com for more information on this news.

Nissan U.S. November sales fall 42.2%

Tue, 02 Dec 2008 21:08:23 GMT

SAN FRANCISCO (MarketWatch) -- Nissan Motors said Tuesday that U.S. November sales dropped 42.2% to 46,605 vehicles from 80,683 a year ago. Nissan branded vehicle sales in November fell 44.4% to 38,974 units, and Infiniti branded vehicles saw a 28% drop to 7,631 units from last year.

Market Pulse Stories are Rapid-fire, short news bursts on stocks and markets as they move. Visit MarketWatch.com for more information on this news.

GM requests up to $18 billion in federal funds

Tue, 02 Dec 2008 21:03:54 GMT

SAN FRANCISCO (MarketWatch) -- General Motors Corp. on Tuesday submitted a plan to Congress to tap up to $18 billion in federal loans to create a company that is profitable and self-sustaining in the long term. In its blueprint, GM requested term loans of up to $12 billion to secure adequate liquidity until Dec. 31, 2009. GM expects an initial draw of $4 billion in December 2008. In addition, the company is seeking a $6 billion line of credit if the severe market downturn persists and said it intends to repay the loans as soon as 2011. The beleaguered automaker's plan includes increased production of fuel-efficient vehicles and energy-saving technologies, reduced wage and benefit costs, significant capital structure restructuring and further consolidation in manufacturing operations. In a separate statement, the GM board said the company is fully capable of implementing the comprehensive plan being submitted to Congress.

Market Pulse Stories are Rapid-fire, short news bursts on stocks and markets as they move. Visit MarketWatch.com for more information on this news.

Citigroup says FDIC-backed bond deals total $5.5 billion

Tue, 02 Dec 2008 20:50:05 GMT

SAN FRANCISCO (MarketWatch) -- Citigroup said the institution launched a $5.5 billion, three-part bond deal Tuesday. The largest segment is a fixed-rate offering of $3.75 billion, maturing in three years, that is priced at 85 basis points over the mid-point of the Treasury interest rate swap curve. It's also offering $1 billion in two-year, floating-rate notes at 55 basis points over three-month Libor; and $750 million in three-year floating rate notes at 80 basis points over one-month Libor, said spokeswoman Danielle Romero. The bond deal is expected to close later Tuesday and follows similar FDIC-backed offerings by Goldman Sachs and Bank of America Corp.

Market Pulse Stories are Rapid-fire, short news bursts on stocks and markets as they move. Visit MarketWatch.com for more information on this news.

Fed wrestling with alternatives to rate cuts to spur economy

Tue, 02 Dec 2008 20:28:54 GMT

WASHINGTON (MarketWatch) -- The Federal Reserve is "wrestling" with how alternatives to rate cuts would play out in a market that is conditioned to think of monetary policy only in terms of short-term rate moves, said James Bullard, the president of the St. Louis Federal Reserve Bank on Tuesday. In an interview on Bloomberg cable television network, Bullard said he was not a fan of cutting the Federal funds rates below the current 1% level. "At some point, you are going to have to stop" cutting rates because they are just so low, Bullard said. "For the time being, it looks like that [rate cuts] is going to be off the table for a while," Bullard said. The Fed will have to communicate effectively about how alternative measures will help the Fed hit is target inflation rate, Bullard said. Alternative measures, known by experts as quantitative easing, are already underway, he said.

Market Pulse Stories are Rapid-fire, short news bursts on stocks and markets as they move. Visit MarketWatch.com for more information on this news.

GM to detail plan submitted to Congress at 5:30 p.m. ET

Tue, 02 Dec 2008 20:27:19 GMT

SAN FRANCISCO (MarketWatch) -- General Motors Corp. will hold a briefing at 5:30 p.m. Eastern time Tuesday to discuss its plan for long-term viability that it submitted to the Congress. Big Three automakers are required to submit restructuring plans in exchange for billions in federal aid. Ford had earlier turned in its blueprint which, among other things, details an investment of about $14 billion in advanced technologies and products to improve fuel efficiency over the next seven years.

Market Pulse Stories are Rapid-fire, short news bursts on stocks and markets as they move. Visit MarketWatch.com for more information on this news.

Chrysler Nov. U.S. sales fall 47% to 85,260 vehicles

Tue, 02 Dec 2008 20:19:40 GMT

SAN FRANCISCO (MarketWatch) -- Chrysler LLC on Tuesday reported a 47% drop in November U.S. sales to 85,260 vehicles from 161,088 a year ago. In contrast to most rivals, Chrysler's sales of cars fell more steeply than trucks, falling 59% to 20,475 units while truck sales slid 42% to 64,785. "Our goal is to fight to maintain our share of the retail market month-to-month by keeping a strong advertising and incentive presence in the marketplace and finding financing solutions for our customers, roughly 75% of whom finance their vehicles with dealer assistance," Jim Press, Chrysler's vice chairman and president, said in a statement.

Market Pulse Stories are Rapid-fire, short news bursts on stocks and markets as they move. Visit MarketWatch.com for more information on this news.

Crude falls 4.7% as concerns over demand weigh

Tue, 02 Dec 2008 20:15:23 GMT

NEW YORK (MarketWatch) -- Crude-oil futures fell 4.7% Tuesday to close at the lowest in more than three years as worries continued that a global economic slowdown will cut into energy demand. Crude oil for January delivery ended down $2.32 to $46.96 a barrel on the New York Mercantile Exchange, the lowest closing level since May 20, 2005. Crude's loss on Tuesday followed a 9.4% slump in the previous session, the biggest percentage decline in more than seven weeks. Oil is now 68% lower than its record high of nearly $150 a barrel hit in July.

Market Pulse Stories are Rapid-fire, short news bursts on stocks and markets as they move. Visit MarketWatch.com for more information on this news.

Citigroup shops three-part bond deal backed by FDIC

Tue, 02 Dec 2008 20:07:45 GMT

SAN FRANCISCO (MarketWatch) -- Citigroup on Tuesday shopped to investors a three-part bond deal backed by the FDIC, the latest such offering that takes advantage of the government's offer to guarantee bank debt to jumpstart bank lending. The New York institution is selling a two-year floating rate note, a 3-year floating rate note and a three-year fixed rate note, said Spencer Lee, manager of SCM Advisors LLC's fixed-income trading desk. The deals are expected to close Tuesday. Anticipated rates on the securities are at a steep discount to comparable yields for Citigroup bonds. For instance, the three-year floating rate is expected to carry a spread of one-month Libor plus 80 basis points, or about 2.7%. In contrast, a Citigroup note due April 2013 is currently yielding 7.7%.

Market Pulse Stories are Rapid-fire, short news bursts on stocks and markets as they move. Visit MarketWatch.com for more information on this news.

Fidelity reopens Contrafund, Low-Priced Stock

Tue, 02 Dec 2008 20:05:14 GMT

BOSTON (MarketWatch) -- Fidelity Investments on Tuesday said it will reopen Fidelity Contrafund and Fidelity Low-Priced Stock Fund to new investors and accounts, starting Dec. 16. Contrafund has been closed since 2006 and Low-Priced Stock has been closed since 2003. "Since the funds have been closed, they have not been able to generate sufficient levels of new sales to offset current and future redemptions," said Walter Donovan, president of the equity division at Fidelity. "We believe reopening the funds will help bring some equilibrium to cash flows in order to ensure that their portfolio managers can most effectively direct their investment strategies."

Market Pulse Stories are Rapid-fire, short news bursts on stocks and markets as they move. Visit MarketWatch.com for more information on this news.

Kia Motors U.S. November sales fall 37.2%

Tue, 02 Dec 2008 20:03:26 GMT

SAN FRANCISCO (MarketWatch) -- Kia Motors America said U.S. November sales fell 37.2% to 15,182 vehicles from 24,177 a year ago. U.S. November sales of the company's Spectra dropped 33.3% to 3,565 units from last year, and sales of its Sportage fell 64.5% to 1,348 vehicles. Kia is an affiliate of Hyundai Motor America and the sales and marketing arm of Kia Motors Corp.

Market Pulse Stories are Rapid-fire, short news bursts on stocks and markets as they move. Visit MarketWatch.com for more information on this news.

U.S. stocks off highs as GM turns south, oil slips 4%

Tue, 02 Dec 2008 19:31:41 GMT

NEW YORK (MarketWatch) -- U.S. stocks lost steam in afternoon trade Tuesday, after General Motors Corp. posted worse than expected November sales and crude oil futures fell more than 4%, dragging along the energy sector. The Dow Jones Industrial Average was up 17 points, or 0.2%, at 8,166, well off an earlier high of 8,418. Shares of GM were down 3.7% at $4.43, after rising to a high of $5.13, after the automaker said its November light vehicle sales slumped 41.3%. The S&P 500 index was up 4 points, or 0.5%, at 820. The energy sector also lost earlier gains as crude oil futures slumped more than 4% amid concerns about slumping global demand. The Nasdaq Composite was up 7 points at 1,405.

Market Pulse Stories are Rapid-fire, short news bursts on stocks and markets as they move. Visit MarketWatch.com for more information on this news.

AMR raises $200 mln from a new sell-lease back deal

Tue, 02 Dec 2008 19:26:55 GMT

NEW YORK (MarketWatch) -- American Airlines parent company AMR Corp. said Tuesday it has raised an additional $200 million in cash for the fourth quarter from selling some of its aircraft to a leasing firm and then renting back. Speaking at an analyst conference in New York, Vice President Beverly Goulet said the deal was completed earlier in the day and will help buttress the airline in a difficult market environment. AMR intends to cut 6% from its consolidated seat capacity next year to meet declining passenger growth, with 8.5% coming from its domestic routes, and 1% from international, she said. Industry cuts throughout 2008 and the shuttering of many smaller carriers has been the equivalent of one "very large airline going out of business," Goulet said, and has been a benefit to the surviving airlines. Shares of AMR were up less than 1% to $8.10.

Market Pulse Stories are Rapid-fire, short news bursts on stocks and markets as they move. Visit MarketWatch.com for more information on this news.

BMW U.S. November sales drop 26.8%

Tue, 02 Dec 2008 19:23:45 GMT

SAN FRANCISCO (MarketWatch) -- BMW Group said Tuesday that its November U.S. sales dropped 26.8% to 19,762 vehicles from 26,985 last year. BMW branded vehicle sales fell 36.1% to 15,217 units in the U.S. in November, while Mini sales rose 43.1% to 4,545 units during the same period.

Market Pulse Stories are Rapid-fire, short news bursts on stocks and markets as they move. Visit MarketWatch.com for more information on this news.

Daimler AG U.S. November sales fall 29.9%

Tue, 02 Dec 2008 19:16:34 GMT

SAN FRANCISCO (MarketWatch) -- Daimler AG said Tuesday that U.S. November sales fell 29.9% to 15,991 units from 22,819 a year ago. U.S. November Mercedes-Benz sales dropped 38.2% to 14,102 vehicles from a year ago. The company sold 1,889 Smart cars, which was not available last year, in the U.S. in November.

Market Pulse Stories are Rapid-fire, short news bursts on stocks and markets as they move. Visit MarketWatch.com for more information on this news.

Mazda Nov. N. American sales down 31.3% to 14,134 units

Tue, 02 Dec 2008 19:13:12 GMT

SAN FRANCISCO (MarketWatch) -- Mazda North American Operations on Tuesday reported North American sales in November fell 31.3% to 14,134 units from 20,580 units in November 2007. Car sales slid 18.9% to 10,936 while truck sales tumbled 54.9% to 3,198. "We initially thought the light at the end of the tunnel would be getting closer as we neared the end of the year, but every sale continues to be a struggle. There's credit out there, and fuel prices have receded to levels we haven't seen in a year, but consumer confidence remains the problem," said Chief Executive Jim O'Sullivan in a statement.

Market Pulse Stories are Rapid-fire, short news bursts on stocks and markets as they move. Visit MarketWatch.com for more information on this news.

Hyundai U.S. November sales fall 39.7%

Tue, 02 Dec 2008 19:12:09 GMT

SAN FRANCISCO (MarketWatch) -- Hyundai Motor Co. said Tuesday that U.S. November sales fell 39.7% to 19,221 from 31,883 a year ago. November U.S. sales of the company's Sonata model dropped 54.5% to 5,379 vehicles last year, and sales of the Santa Fe model declined 41.9% to 4,282 from a year ago.

Market Pulse Stories are Rapid-fire, short news bursts on stocks and markets as they move. Visit MarketWatch.com for more information on this news.

GM U.S. November light vehicle sales drop 41.3%

Tue, 02 Dec 2008 18:55:29 GMT

SAN FRANCISCO (MarketWatch) -- General Motors Corp. said Tuesday that U.S. November light vehicle sales dropped 41.3% to 153,404 vehicles from 261,273 a year ago. Chevrolet was the least hit division with U.S. November sales down 36.9% to 95,756 vehicles, and Hummer sales dropped the most with sales down 63.9% to 1,454 vehicles from a year ago. Total U.S. November car sales at GM fell 44.1% to 58,786 units from last year.

Market Pulse Stories are Rapid-fire, short news bursts on stocks and markets as they move. Visit MarketWatch.com for more information on this news.

Richardson to be named Commerce Secretary nominee Weds.: WSJ

Tue, 02 Dec 2008 18:43:50 GMT

SAN FRANCISCO (MarketWatch) -- Bill Richardson, the former governor of New Mexico and Energy Secretary under President Bill Clinton, will be named as President-elect Barack Obama's nomination for Commerce Secretary on Wednesday, The Wall Street Journal reported Tuesday on its Web site. Richardson would be the first Latino named to the Obama cabinet.

Market Pulse Stories are Rapid-fire, short news bursts on stocks and markets as they move. Visit MarketWatch.com for more information on this news.

Japanese steelmakers mull shutting down furnaces: report

Tue, 02 Dec 2008 18:32:22 GMT

SAN FRANCISCO (MarketWatch) -- Top Japanese steelmakers are considering temporarily shutting down blast furnaces in response to sagging demand, particularly from automakers, the Nikkei reported Wednesday in its online edition. No major steelmaker has shut a blast furnace down to adjust production in about seven years, the daily said. JFE Steel Corp. is considering shutting down some of its seven blast furnaces and Kobe Steel Ltd. is debating whether to idle one of its three blast furnaces while Nippon Steel Corp. may extend the suspension of a blast furnace already scheduled for repairs, according to the Nikkei. The shutdowns would most likely be for two to three days, it said.

Market Pulse Stories are Rapid-fire, short news bursts on stocks and markets as they move. Visit MarketWatch.com for more information on this news.

US Airways' new baggage fees help improve performance

Tue, 02 Dec 2008 18:30:21 GMT

NEW YORK (MarketWatch) -- New luggage fees at US Airways hasn't only beefed up its revenue, it's also caused a significant drop in checked-bags and improved the carrier's baggage handling performance, Chief Executive Doug Parker said Tuesday. At an analyst conference in New York, Parker said a $15 charge for the first checked-on bag has led to a 20% drop in checked luggage and improved handling performance by more than 20%. By introducing the fees earlier this year, airlines have reported sharp drops in multiple bag checks. Of course, fewer people have been flying as well. "It's helping us all to run better operations," Parker said. The new fee at US Airways accounts for most of the $400 million to $500 million in annual revenue for services, he said.

Market Pulse Stories are Rapid-fire, short news bursts on stocks and markets as they move. Visit MarketWatch.com for more information on this news.

Honda U.S. Nov. sales down 31.6% to 76,233 vehicles

Tue, 02 Dec 2008 18:22:17 GMT

SAN FRANCISCO (MarketWatch) -- Honda Motor Co. said Tuesday November U.S. sales fell 31.6% to 76,233 vehicles from 111,431 a year ago. Honda brand sales slid 30.6% to 68,345 units while Acura division sales tumbled 38.9% to 7,888. Only the Pilot model showed an increase in sales, rising 4.5% to 5,601.

Market Pulse Stories are Rapid-fire, short news bursts on stocks and markets as they move. Visit MarketWatch.com for more information on this news.

Ex-AOL CEO Miller trying to raise funds to buy Yahoo: WSJ

Tue, 02 Dec 2008 18:01:50 GMT

SAN FRANCISCO (MarketWatch) -- Former AOL Chief Executive Jonathan Miller is trying to raise money to purchase a portion or all of Yahoo , the Wall Street Journal reported in its online edition Tuesday. He has been talking to private equity investors and sovereign wealth funds for several months to secure funds, according to the Journal. Miller believes he can finalize a deal that would be worth around $20 to $22 a share, which would involve raising about $28 billion to $30 billion to buy the whole company, the Journal reported, citing sources familiar the matter. Shares of Yahoo rose 8.1% to $11.61 following the news.

Market Pulse Stories are Rapid-fire, short news bursts on stocks and markets as they move. Visit MarketWatch.com for more information on this news.

Plosser sees gradual economic recovery in '09

Tue, 02 Dec 2008 17:30:49 GMT

WASHINGTON (MarketWatch) -- The economy should gradually emerge from recession in 2009 with growth gradually picking up in the second half of the year, said Charles Plosser, the president of the Philadelphia Fed Bank on Tuesday. Overall growth in 2009 will be pretty weak, with growth below a 2% rate on a fourth-quarter to fourth-quarter basis, Plosser said in a speech at the University of Rochester, where he was an economics professor and dean before joining the Fed. Plosser said the jobless rate would peak about a 7% level next year and the housing market should finally hit bottom. Plosser, one of the senior Fed officials most concerned with inflation, said he saw no "near-term" concerns of higher prices. He said risks of deflation - a general decline in prices - were also overblown.

Market Pulse Stories are Rapid-fire, short news bursts on stocks and markets as they move. Visit MarketWatch.com for more information on this news.

Toyota U.S. November sales fall 33.9%

Tue, 02 Dec 2008 17:18:37 GMT

SAN FRANCISCO (MarketWatch) -- Toyota Motor Corp. said Tuesday that U.S. November sales fell 33.9% to 130,307 vehicles from 197,189 a year ago. Toyota U.S. November passenger car sales fell 32.3% to 76,954 units from 113,641 last year, and Toyota light truck sales fell 36.1% to 53,353 units from 83,548 last year. U.S. November Prius sales dropped 48.3% to 8,660 vehicles from 16,737 last year.

Market Pulse Stories are Rapid-fire, short news bursts on stocks and markets as they move. Visit MarketWatch.com for more information on this news.

Ford U.S. Nov. auto sales fall 30.6% to 123,222 vehicles

Tue, 02 Dec 2008 17:12:40 GMT

SAN FRANCISCO (MarketWatch) -- Ford Motor Co. on Tuesday reported a 30.6% drop in November U.S. sales to 123,222 vehicles from 177,485 a year ago as the weak economy continued to dampen consumers' appetite for new cars. Ford, Lincoln and Mercury combined car sales fell 31.5% to 37,272 units while truck sales slumped 29% to 81,546 units with sales of the flagship F-Series pickup down 18.6% to 37,911. Volvo brand sales tumbled 46.5% to 4,404 vehicles. Ford earlier submitted to Congress its plans to return to profitability by 2011 in hopes of gaining access to $9 billion in loans.

Market Pulse Stories are Rapid-fire, short news bursts on stocks and markets as they move. Visit MarketWatch.com for more information on this news.

Porsche U.S. November sales drop 48.2%

Tue, 02 Dec 2008 17:12:20 GMT

SAN FRANCISCO (MarketWatch) -- Porsche said Tuesday that November U.S. sales fell 48.2% to 1,378 vehicles from 2,662 vehicles a year ago. U.S. November Boxster and Cayman sales fell to 153 vehicles from 580 last year, and Cayenne sales fell to 700 vehicles from 1,232 last year.

Market Pulse Stories are Rapid-fire, short news bursts on stocks and markets as they move. Visit MarketWatch.com for more information on this news.