On Friday January 8, 2010, 6:06 pm EST
Economy loses 85K jobs as employers remain wary
WASHINGTON (AP) -- Brace for a year of stubbornly high
unemployment.
Gripped by uncertainty over the economic recovery, employers
chopped 85,000 jobs last month, and difficulty finding work helped chase more
than half a million people out of the job market.
The unemployment rate held steady at 10 percent. It did not
creep higher only because so many people stopped looking for work and are
technically not counted as unemployed.
But the jobless rate is likely to rise in coming months as more
people see signs of an improving economy and start looking for work again. Some
economists think it could near 11 percent, which would be the highest since
World War II, by June.
Consumer borrowing falls sharply in November
WASHINGTON (AP) -- Americans borrowed less for a 10th
consecutive month in November with total credit and borrowing on credit cards
falling by the largest amounts on records going back nearly seven decades.
The dramatic declines raised new worries about whether consumers
will cut back further on spending, making it harder for the economy to mount a
sustained rebound.
The Federal Reserve said Friday that total borrowing dropped by
$17.5 billion in November, a much bigger decline than the $5 billion decrease
economists had expected.
Stocks gain as traders take jobs report in stride
NEW YORK (AP) -- Investors took a disappointing December jobs
report in stride Friday and focused on signs that the overall employment
picture is stabilizing.
Stocks zigzagged for much of the day but ended higher after the
Labor Department said employers added jobs in November but cut 85,000 jobs in
December. Analysts were divided on whether the report is a sign unemployment
will continue to move higher.
The Dow Jones industrial average tacked on 11 points to
10,618.19, while broader indicators logged bigger gains. All the major indexes
posted strong advances for the week.
Wholesale inventories, sales post strong Nov gains
WASHINGTON (AP) -- Inventories held by wholesalers posted an
unexpectedly strong gain in November while sales shot up by the largest amount
in 10 months.
While these gains gave the economy a strong boost as 2009 was
ending, economists expressed concerns over the durability of the rebound given
that unemployment remains stubbornly high.
The Commerce Department said Friday that wholesale inventories
rose 1.5 percent in November, a much stronger showing than the 0.2 percent drop
that economists had expected. Sales jumped 3.3 percent, far better than the 0.9
percent rise that had been forecast.
Geithner called to explain AIG bailout secrecy
WASHINGTON (AP) -- Treasury Secretary Timothy Geithner will face
a congressional grilling later this month about the suppression of key details
on deals that funneled billions to big investment banks while he was president
of the Federal Reserve Bank of New York.
Lawmakers reacted angrily Friday to revelations in e-mails sent
in late 2008 and early 2009 between lawyers for the New York Fed and American
International Group Inc. The exchanges show the New York Fed wanted AIG to
withhold information about deals that sent billions of dollars from the
taxpayer bailout of AIG to Goldman Sachs Group Inc., Societe Generale and other
major banks.
UPS cutting 1,800 jobs in US, raising outlook
ATLANTA (AP) -- Shipping giant UPS Inc. will cut 1,800
management and administrative jobs, less than 1 percent of its global work force,
as it repositions itself for a gradual economic recovery with improved
technology and fewer employees.
About 1,100 employees will be offered a voluntary separation
package as part of the work force reduction, which is meant to streamline the
company's U.S. small package segment. Other cuts will come through attrition
and layoffs. The U.S. small package segment represents roughly 60 percent of
UPS' annual revenue. It handles shipments of up to 150 pounds by ground and
air.
UPS, based in Atlanta, has 408,000 employees worldwide. About
340,000 of those workers are in the U.S.
UPS also raised its profit forecast for the fourth-quarter that
ended in December, citing improving operations and cost cuts.
GM's unit Saab starts wind-down process
STOCKHOLM (AP) -- The board of General Motors' Swedish unit Saab
on Friday took the first formal step to wind down the ailing car maker by
appointing a representative to lead the process, even as GM evaluates
last-minute offers, union officials said.
Two suitors emerged late Thursday, with one including British
billionaire and Formula 1 tycoon Bernard Ecclestone.
"This is clearly confusing for all parties involved when GM
decides to act in two different directions," IF Metall union head Stefan
Lofven said shortly after the Saab board ended its meeting.
OJ contracts surge again on cold-weather worries
NEW YORK (AP) -- Orange juice futures contracts surged to a new
two-year high on Friday following fresh concerns that cold weather in Florida could
wipe out parts of the citrus crop over the weekend.
March contracts for frozen orange juice concentrate rose 10
cents, or 7.1 percent, to settle at $1.5115 a pound, marking the second time in
three days the price reached two-year highs. Prices retreated Thursday after a
bout of cold weather earlier in the week had minimal effect on the crop.
Orange juice prices have risen 17 percent during the past week.
Best Buy posts sales gains for December
NEW YORK (AP) -- Best Buy Co., the largest U.S. electronics
retailer, saw a key sales figure rise sharply in December -- compared with a
plunge a year earlier -- as consumers bought computers, TVs and phones for the
holidays, the company said Friday.
But Best Buy didn't raise its earnings forecast, and its shares
fell $1.63, or 3.9 percent, to close at $39.91 Friday. They had risen steadily
in 2009 and hit a 52-week high of $45.55 on Dec. 14 but quickly pulled back.
Even though the December sales figures were strong, analysts
said Best Buy's stock isn't likely to rise much during the first half of 2010
because investors are worried about increasing competition and a scarcity of
must-have electronics in development.
Owners of record-price NYC complex miss payment
NEW YORK (AP) -- The partnership that paid a record $5.4 billion
for two of New York City's biggest apartment complexes is having money
problems.
The group led by Tishman Speyer and BlackRock Realty says it
wasn't able to make a full $16 million loan payment that was due Friday.
The companies say the missed payment won't affect the 25,000
tenants of Stuyvesant Town and Peter Cooper Village in Manhattan.
Analysts have been expecting the group to default on the loan
for several months.
By The Associated Press
The Dow rose 11.33, or 0.1 percent, to 10,618.19. The Standard
& Poor's 500 index rose 3.29, or 0.3 percent, to 1,144.98, its fifth
straight advance. The Dow and the S&P 500 index ended at their highest
levels since Oct. 1, 2008.
The Nasdaq composite index rose 17.12, or 0.7 percent, to
2,317.17.
Benchmark crude rose 9 cents to settle at $82.75 per barrel on
the New York Mercantile Exchange.
In other Nymex trading in February contracts, heating oil rose
1.67 cents to settle at $2.2003 a gallon and gasoline rose 2 cents to settle at
$2.1553 a gallon. Natural gas futures fell 5.7 cents to settle at $5.749 per
1,000 cubic feet.
In London, Brent crude for February delivery fell 13 cents to
settle at $81.37 a barrel on the ICE Futures exchange.