Citi's
good news leads market to best day of '09
The 379-point gain for the Dow Jones industrials, a rally of
almost 6 percent, was a welcome break from almost uninterrupted selling. But
just as almost nobody expects the banks to snap back to health, almost nobody
thinks the market has hit its bottom.
Banking stocks led the markets higher all day. The Dow finished
at 6,926.49, its highest close since late February.
Wholesale inventories fall again in January
WASHINGTON (AP) -- Businesses slashed inventories at the
wholesale level for a fifth straight month in January, the longest stretch
since the last recession in 2001 and a warning signal that companies are likely
to keep cutting production as they cope with the deepening downturn.
The Commerce Department said Tuesday that wholesale inventories
fell 0.7 percent in January, which was slightly smaller than the 1 percent fall
economists had expected. It followed a 1.5 percent drop in December that was
initially reported as a 1.4 percent decline.
Bernanke says regulatory overhaul needed
WASHINGTON (AP) -- The nation's financial
rule book must be rewritten to prevent a repeat of the global economic crisis
now gripping the United States and other countries, Federal Reserve Chairman
Ben Bernanke said Tuesday.
Bernanke offered new details on how to
bolster mutual funds and a program that insures bank deposits.
He also stressed the need for regulators to make sure financial companies have
a sufficient capital cushion against potential losses.
The Fed chief's remarks come as the Obama administration and
Congress are crafting their overhaul strategies. For
the administration, critical work will be carried out among global finance
officials this weekend in
Madoff's
lawyer says client will plead guilty
NEW YORK (AP) -- In a courtroom surprise, it was revealed Tuesday
that Bernard Madoff will plead guilty Thursday to
securities fraud, perjury and other crimes, knowing that he could face up to
150 years in prison for one of the largest frauds in history.
The revelation came as prosecutors unveiled an 11-count charging
document against the 70-year-old former Nasdaq
chairman, and as his lawyer, Ira Sorkin, told a judge
that Madoff planned to plead guilty this week without
a plea deal.
Madoff
has been under house arrest in his $7 million
United Technologies cutting jobs, outlook
HARTFORD, Conn. (AP) -- United Technologies Corp., saying the
downturn in its core markets is worse than expected, cut its 2009 profit
forecast 13 percent Tuesday and will eliminate 11,600 jobs, or 5 percent of its
global work force.
The announcement by the maker of Otis elevators and Sikorsky
helicopter reverses the guarded optimism of a month ago when the company's top
executives continued to back a higher earnings forecast from December.
The company now says the markets for commercial aerospace and
global construction have worsened since December as worldwide construction and
aerospace orders slowed.
Pandit:
Citi operating at profit through February
In the letter sent Monday, CEO Vikram Pandit said the first-quarter performance so far has been
the bank's best since the last time it recorded net
income for a full quarter -- that was in the July-September period in 2007.
Based on historical revenue and expense rates, Citi's
projected earnings before taxes and one-time charges would be about $8.3
billion for the full quarter.
The one-time items include credit losses, write-downs and
additions to loan-loss reserves. Pandit did not
disclose the size of those items.
EPA considers requiring greenhouse gas reports
WASHINGTON (AP) -- The federal government wants to require
companies for the first time to disclose how much greenhouse gases they're
releasing into the atmosphere.
The Environmental Protection Agency on Tuesday proposed mandatory
reporting of the gases blamed for global warming from approximately 13,000
facilities nationwide. The regulation would cover companies that either release
large amounts of greenhouse gases directly or produce or import fuels and
chemicals that when burned emit heat-trapping gases.
Refineries, automobile manufacturers, power plants, coal mines
and large manure ponds at farms would all have to report to the government
emissions of at least six different gases.
Kroger profit rises 8 percent in 4Q
CINCINNATI (AP) -- Kroger Co. reported Tuesday that its
fourth-quarter profit rose 8 percent, as more price-conscious shoppers bypassed restaurants and loaded their carts with
store brands at record rates. Its shares jumped 8 percent.
The nation's largest traditional grocery store chain said sales
were especially strong for its no-frills "Value" brand and for its
highest-tier "Private Selection" line that it says compares well to
national brands in quality for items from coffee to pizzas. The company also
said it was gaining share in most of its markets.
He said Kroger is benefiting from people in the recession cutting
down on restaurant meals, and stores see strong sales for deli, bakery, and
meats. He said more shoppers are using coupons and even food stamps, while
sales of non-grocery merchandise were slow.
EPA considers requiring greenhouse gas reports
WASHINGTON (AP) -- The federal government wants to require
companies for the first time to disclose how much greenhouse gases they're
releasing into the atmosphere.
The Environmental Protection Agency on Tuesday proposed mandatory
reporting of the gases blamed for global warming from approximately 13,000
facilities nationwide. The regulation would cover companies that either release
large amounts of greenhouse gases directly or produce or import fuels and
chemicals that when burned emit heat-trapping gases.
Refineries, automobile manufacturers, power plants, coal mines
and large manure ponds at farms would all have to report to the government
emissions of at least six different gases.
Harper promoted
There has been no crippling mortgage meltdown or banking crisis
north of the border where the financial sector is dominated by five large
banks.
By The Associated Press
The Dow rose 379.44, or 5.8 percent, to finish at 6,926.49.
The S&P 500 index rose 43.07, or 6.4 percent, to 719.60,
while the Nasdaq composite rose 89.64, or 7.1
percent, to 1,358.28.
Light, sweet crude for April delivery fell $1.36 to settle at
$45.71 a barrel on the
In
In other Nymex trading, gasoline for
April delivery fell 3.7 cents to settle at $1.2972 a gallon and heating oil
fell 1.67 cents to settle at $1.1987 a gallon. Natural gas for April delivery
fell 17 cents to settle at $3.84 per 1,000 cubic feet.