AP
Business Highlights
Monday December 1, 6:52 pm ET

Down we go again: Fourth-worst drop ever for Dow

NEW YORK (AP) -- The stock market suffered one of its worst days since the financial meltdown, slicing 680 points off the Dow Jones industrial average to close Monday at about 8,149 as Wall Street snapped out of its daydream of a rally and once again faced the harsh reality of a recession.

Not only did stocks end their five-day winning streak, they erased more than half the gains. The Standard & Poor's 500 stock index, one of the broadest market gauges, lost nearly 9 percent.

There have only been three days in market history with bigger point losses for the Dow -- the Monday after the Sept. 11 attacks, and Sept. 29 and Oct. 15 of this year.

It's official: US has been in a recession all year

WASHINGTON (AP) -- The U.S. economy has been in a recession since December 2007, the National Bureau of Economic Research said Monday.

The NBER -- a private, nonprofit research organization -- said its group of academic economists who determine business cycles met and decided that the U.S. recession began last December.

By one benchmark, a recession occurs whenever the gross domestic product, the total output of goods and services, declines for two consecutive quarters. The GDP turned negative in the July-September quarter of this year, and many economists believe it is falling in the current quarter at an even sharper rate.

Manufacturing index drops to 26-year low

WASHINGTON (AP) -- A gauge of U.S. manufacturing activity that fell to a 26-year low Monday followed similarly weak readings in Europe and China, fueling fears of a deepening global downturn.

The Institute for Supply Management's index of manufacturing activity for November fell to 36.2 from October's 38.9. The reading was worse than Wall Street economists' expectations of 38.4, according to a survey by Thomson Reuters. A figure below 50 indicates the sector is contracting.

The November reading is the lowest since May 1982, the Tempe, Ariz.-based ISM said. The report is based on a survey of corporate purchasing managers.

Oil tumbles below $50 as recession called

COLUMBUS, Ohio (AP) -- Oil prices tumbled below $50 a barrel Monday as National Bureau of Economic Research reported that the U.S. economy has been in a recession since December 2007.

Light, sweet crude for January delivery fell more than 9 percent, or $5.15, to settle at $49.28 a barrel on the New York Mercantile Exchange.

Manufacturing and consumer spending has eroded quickly and lowered demand for energy. That has erased nearly 66 percent of crude's market value since July when it peaked near $150 per barrel.

JPMorgan cutting 9,200 jobs at Washington Mutual

NEW YORK (AP) -- JPMorgan Chase & Co. said Monday it will cut a total of 9,200 jobs at Washington Mutual, which it acquired Sept. 25 after Washington Mutual became the nation's largest bank to fail amid the ongoing credit crisis.

Of the 9,200 jobs being eliminated as JPMorgan integrates Washington Mutual, 4,000 will be cut by the end of January, a JPMorgan spokesman said. The remaining 5,200 employees will remain with JPMorgan through a transition period, but will lose their positions by the end of 2009.

Ford weighs selling Volvo amid industry downturn

DETROIT (AP) -- Ford Motor Co. is considering selling Volvo Car Corp. as the beleaguered U.S. automaker seeks to raise cash and weather a global automotive sales crisis.

Goteborg, Sweden-based Volvo Cars, which Ford bought in 1999, has been struggling against a weak U.S. dollar and declining demand. Volvo sales through October are down more than 28 percent compared to the month in 2007, according to Autodata Corp.

Ford said Monday it expects its strategic review of the Swedish luxury automaker will take several months. The move is one of several actions Ford is taking to strengthen its balance sheet amid what it called "severe economic instability worldwide."

Pilgrim's Pride files for bankruptcy protection

MILWAUKEE (AP) -- Pilgrim's Pride Corp. filed for Chapter 11 bankruptcy protection on Monday, hurt like other meat producers by volatile feed prices and slumping demand but also hobbled by an unmanageable debt load.

The Pittsburg, Texas-based company, the nation's largest chicken producer, sought protection in a filing with the U.S. Bankruptcy Court for the Northern District of Texas, saying that as of Sept. 27 it had $3.75 billion in assets and $2.72 billion in debts.

Pilgrim's Pride, which controls about 23 percent of the U.S. chicken market, will continue operating during the reorganization and will not liquidate its assets, spokesman Ray Atkinson said.

Retailers offer deals, discounts on 'Cyber Monday'

NEW YORK (AP) -- Retailers who saw Thanksgiving holiday sales drop off as the weekend progressed stepped up online promotions on the day known as "Cyber Monday" to try to get consumers tired of the crowds at stores to keep shopping.

But after weeks of already heavy discounting both at regular stores and online, experts were doubtful that the day would give much of a lift to what is still expected to be one of the weakest holiday seasons in years.

J&J to buy breast implant maker Mentor for $1.07B

TRENTON, N.J. (AP) -- In a move to become a major player in cosmetic and reconstructive surgery, health care products company Johnson & Johnson said Monday it will buy cosmetic-product and breast-implant maker Mentor Corp. for $1.07 billion.

Analysts said J&J is paying "a giant premium" for the maker of MemoryGel breast implants, liposuction equipment and "barrier" skin repair products, with an eye to their long-term value for an aging population.

Ryanair renews bid for Aer Lingus

DUBLIN, Ireland (AP) -- Budget airline Ryanair launched a new takeover bid Monday for Irish rival Aer Lingus, calculating that Ireland's worsening economy would soften past opposition and make a deal more likely.

Ryanair Holdings PLC said it would pay 1.40 euros ($1.78) a share for Aer Lingus Group PLC, a 25 percent premium over Monday's opening stock price -- but just half the price it offered two years ago. Ryanair is already the airline's biggest shareholder with a 30 percent stake.

By The Associated Press

The Dow lost 679.95 points to close at 8,149.09.

The broader S&P 500 index fell 80.03 to 816.21, while the Nasdaq composite index fell 137.50 to 1,398.07.

Light, sweet crude for January delivery fell more than 9 percent, or $5.15, to settle at $49.28 a barrel on the New York Mercantile Exchange.

In other Nymex trading, gasoline futures tumbled 9.8 cents to settle at $1.1112 a gallon. Heating oil dropped 11.2 cents to settle at $1.6151 a gallon. Natural gas for January delivery, however, rose 9.4 cents to settle at $6.604 per 1,000 cubic feet.