Some Fed officials conflicted on
mortgage program WASHINGTON (AP) -- Some Federal Reserve
policymakers last month were conflicted over whether to expand or cut back a
program intended to drive down mortgage rates and bolster the housing market,
according to a document released Wednesday. Minutes of the Fed's closed-door
meeting on Dec. 15-16 revealed that a "few members" thought that the
Fed's $1.25 trillion program to buy mortgage securities from Fannie Mae and
Freddie Mac might need to be expanded and extended beyond its current end date
of March 31. Such an additional dose of stimulus would be especially needed if
the economic recovery were to weaken, they argued. Service sector growing again, but new
jobs are few NEW YORK (AP) -- A gauge of the U.S.
service sector returned to growth last month, aided by the holiday season's
retail sales. The expansion reflected a slowly improving economy -- but it was
too slight to generate much hiring. The Institute for Supply Management, a
private trade group, said Wednesday its service index rose to 50.1 in December
from 48.7 in November. A level above 50 signals growth. Seven industries out of
18 reported growth, led by agriculture and retail. The ISM's employment gauge, which
hasn't grown in two years, shrank again in December, though at a slower pace
than in November. It reached 44 in December, compared with 41.6 a month
earlier. Stocks end flat following mixed
economic reports NEW YORK (AP) -- Investors treaded
water for a second day Wednesday as a batch of mixed economic reports and signs
of division among Federal Reserve policymakers offered little insight into the
economy. Stocks ended little changed but modest
gains pushed the Standard & Poor's 500 index to a new 15-month high. The
cautious tone seen Tuesday and Wednesday comes as investors await the
government's monthly employment report Friday. The day's economic news wasn't enough
to galvanize traders still trying to determine which direction the market will
take in the early part of 2010. The Dow Jones industrial average rose
1.66, or less than 0.1 percent, to 10,573.68. Lockheed Martin to cut 1,200 jobs BETHESDA, Md. (AP) -- Defense
contractor Lockheed Martin said Wednesday it plans to cut 1,200 jobs to lower
costs as it combines two units. The cuts amount to less than 1 percent
of the company's total work force of about 140,000. The company says employees
who will lose their jobs will be notified by early April. Lockheed announced in November its
plans to combine two units in its electronics systems business -- the former
Maritime Systems & Sensors business, based in Washington, D.C., and its
Systems Integration unit in Owego, N.Y. GM: Hundreds of dealerships could be
restored DETROIT (AP) -- Hundreds of the 1,350
General Motors Co. dealers who lost their franchises last year could see them
restored in a congressionally mandated arbitration process that begins later
this month, the company's interim CEO said Wednesday. CEO and Chairman Ed Whitacre Jr. also
said that new Chief Financial Officer Chris Liddell is a candidate for the CEO
post. And Whitacre said he's not confident about selling the Swedish Saab
brand. In a wide-ranging talk with reporters
at GM's Detroit headquarters, Whitacre also predicted that GM would be
profitable this year, although he said that was dependent on the economy and
other factors. As temps plummet, orange juice prices
heat up NEW YORK (AP) -- Orange juice futures
contracts reached their highest levels in two years Wednesday as a prolonged
freeze in Florida endangers crop production. "This is purely weather
driven," said Richard Feltes, senior vice president and director of
commodity research at MF Global. Prices for frozen orange juice
concentrate have risen sharply this week and went as high as $1.4965 per pound
during trading Wednesday -- levels not seen since December 2007. Other commodities have also gained this
week, but mainly for other reasons such as investors rebalancing portfolios in
the new year and the declining dollar. Winter blast sends oil prices to
14-month high Snow, ice and wind wreaked havoc on
energy markets Wednesday, where a barrel of oil topped $83 a barrel for the
first time since the fall of 2008. Two fronts sent oil prices rocketing,
however, the second being divisions among Federal Reserve policymakers over
extending a program to bolster the U.S housing industry. That sent the dollar sliding to three
week lows, and crude prices to a 15-month high. It could be a worrisome harbinger for
consumers, who saw oil prices double last year for much the same reason. Morgan Stanley wins suit against
Discover NEW YORK (AP) -- Morgan Stanley won a
legal battle with former subsidiary Discover Financial Services over nearly
$800 million Morgan Stanley says it was owed by the credit card company. New York state Supreme Court Justice
Barbara Kapnick ruled earlier this week that Discover Financial must pay Morgan
Stanley a special dividend negotiated when Morgan Stanley spun off Discover in
2007. At that time, the two agreed to share
money received from an antitrust lawsuit Discover had pending against Visa Inc.
and MasterCard Inc. Discover settled the antitrust case for $2.75 billion, of
which Morgan Stanley was entitled to $1.2 billion. Alleged Florida Ponzi schemer will
plead guilty FORT LAUDERDALE, Fla. (AP) -- A
disbarred South Florida attorney agreed Wednesday to plead guilty later this
month to charges arising from an alleged Ponzi scheme that cheated thousands of
investors out of $1.2 billion. Scott Rothstein is charged in a
five-count indictment with racketeering, conspiracy and fraud in a scheme that
ran from 2005 to 2009. Rothstein attorney Marc Nurik said his
client, who has been jailed without bail since his Dec. 1 arrest, is focused on
returning as much money as possible to investors. Nurik said Rothstein's seized
assets -- two dozen pieces of real estate, numerous luxury cars, jewelry, bank
accounts and more -- are worth between $60 million and $100 million. Kraft: Holders of 1.5 pct of Cadbury
accept offer LONDON (AP) -- Kraft Foods Inc.
announced Wednesday that holders of 1.5 percent of shares in chocolate and gum
maker Cadbury PLC have so far accepted its hostile takeover offer, but the U.S.
company may gain more support as its offer price moves closer to Cadbury's
market value. The gap narrowed on Tuesday as Swiss
food company Nestle said it would not make an offer for Cadbury, Kraft offered
more cash in an alternative -- but no higher -- offer, and billionaire Warren
Buffett, Kraft's biggest shareholder, warned against offering any more stock to
sweeten the offer. Kraft financed its enhanced cash offer
by selling its U.S. pizza business to Nestle. By The Associated Press The Dow Jones industrial average rose
1.66, or less than 0.1 percent, to 10,573.68. The broader Standard & Poor's 500
index rose 0.62, or 0.1 percent, to 1,137.14, while the Nasdaq composite index
fell 7.62, or 0.3 percent, to 2,301.09. Benchmark crude settled up $1.41 at
$83.18 on the New York Mercantile Exchange, the highest close since Oct. 9,
2008. In other Nymex trading in February
contracts, heating oil rose less than a penny to settle at $2.2032 a gallon.
Gasoline rose 1.16 cents to settle at $2.1366 a gallon. Natural gas futures
rose 37.2 cents to settle just above $6. In London, Brent crude for February
delivery rose $1.30 to settle at $81.89 a barrel on the ICE Futures exchange.