Dow jumps 204 to high for year as dollar slumps
NEW YORK (AP) -- The Dow Jones industrial average stormed to its
highest level in more than a year Monday as a falling dollar boosted prices for
gold, oil and other commodities. Stocks also jumped as investors grew more
confident that governments around the world will keep interest rates low to
help the global economy.
Energy and materials stocks led the market. The major indexes
rose 2 percent and the Dow jumped 200 points for the second time in three days,
reaching its highest level in 13 months.
News that the Group of 20 countries will keep economic stimulus
measures in place signaled to investors that rates will remain low. With
Kraft's $16.4B Cadbury bid starts takeover tussle
Taking the same offer directly to Cadbury shareholders likely
means that Kraft is betting no competing bids will emerge for the maker of
Dairy Milk and Creme Eggs. The early gambit also
leaves the company room to take the bid higher.
Kraft made the offer, worth about $16.4 billion, just hours before
a Monday deadline imposed by
Deadline in Google book deal extended to Friday
The new timetable approved Monday by a federal judge is the
latest twist in a 4-year-old copyright lawsuit over Google's ambitious
book-scanning project.
Google thought it had settled the dispute with
When
Fed: GMAC to receive more bailout money
WASHINGTON (AP) -- The Federal Reserve said Monday that GMAC is
the only one of 19 stress-tested banks that needs more capital to withstand
losses if the economy softens.
GMAC, a crucial player in the U.S. auto industry, has been unable
to raise the $11.5 billion regulators said it needed after stress test results
were announced in May. The Fed says the finance company is expected to close
the gap with more money from the $700 billion financial bailout.
GMAC, already the recipient of $12.5 billion in taxpayer
infusions, is negotiating with regulators over how much more it will receive.
Fed says banks eye tighter terms on credit cards
WASHINGTON (AP) -- Banks expect to tighten terms on credit cards
in response to a new law that aims to protect consumers from sudden rate hikes,
the Federal Reserve said Monday.
A quarterly survey by the Fed found that many banks expect to
increase rates, reduce credit limits and raise annual fees for both prime
borrowers -- those with sound credit histories --as well as more risky
"non-prime" borrowers, who have tarnished credit. Banks also expected
to raise minimum credit scores for non-prime borrowers, the Fed said.
Banks already have been pushing through rate increases in
anticipation of the new rules. Because of that, the House recently approved
legislation to speed up the law's effective date and have the provisions take
effect immediately, although prospects are dim for Senate passage.
Energy prices jump even as Gulf storm weakens
Oil prices shot above $80 a barrel Monday as a weakened U.S.
dollar created more turbulence in energy markets than a storm heading into the
Ida had helped push crude prices higher all morning. Normally,
the storm's demotion from hurricane to a tropical storm would depress crude
prices. But the dollar is the real driver of energy markets at the moment. So,
when the euro pushed passed the $1.50 level for the first time this month, oil
prices rose even further.
Investors holding euros or other strong
currencies can buy more dollar-based crude when the
Weak dollar pushes gold above $1,100 an ounce
Gold for December delivery soared as high as $1,111.70 on the
The gains came as the ICE Futures US dollar index, which measures
the dollar against other currencies, dropped more than 1 percent to its lowest
level since August 2008.
The dollar weakened after finance ministers from the Group of 20
countries pledged over the weekend to maintain their stimulus efforts and keep
interest rates low to further a global economic recovery. The G-20 leaders did
not address how they might support currencies that have fallen in response to
low rates.
Pfizer trimming research plants after buying Wyeth
TRENTON, N.J. (AP) -- Less than a month after buying Wyeth, drug
giant Pfizer Inc. has mapped out a new structure for its research and
development operations.
The plan, announced Monday, will bring the closure of six of the
two companies' 20 research facilities, reorganize and consolidate others, and
cut the jobs of up to 2,000 scientists and laboratory technicians.
Pfizer, which is based in New York, solidified its position as
the world's biggest drugmaker with its $68 billion
purchase of drug and vaccine maker Wyeth on Oct. 15, diversifying overnight by
adding Wyeth's biotech drugs and consumer and animal health divisions.
MBIA posts 3Q loss on insurance, investment losses
The company also said that losses on its coverage of
mortgage-related investments were driven by continued weakness in the housing
industry.
MBIA said it lost $727.8 million, or $3.50 per share, during the
period ended Sept. 30. That compared with a loss of $806.5 million, or $3.42
per share, a year earlier. The narrower loss per share in the third quarter of
2009 is due to fewer shares outstanding in that period.
Electronic Arts posts 2Q net loss, plans layoffs
The company announced the layoffs of 1,500 people just hours
after it said it is paying at least $275 million to buy Playfish
Inc., a maker of social online games popular on Facebook,
MySpace and the iPhone. The layoffs are expected to
save about $100 million a year.
Digital content makes up about 12 percent of EA's
revenue. But it's growing, while sales from packaged goods are on the decline.
By The Associated Press
The Dow rose 203.52, or 2 percent, to 10,226.94, its highest
finish since Oct. 3, 2008. The index rose as high as 10,228.23, topping its
previous 12-month trading high of 10,119.46 set last month.
The broader Standard & Poor's 500 index rose 23.78, or 2.2
percent, to 1,093.08, its sixth straight advance. The Nasdaq composite index rose 41.62, or 2 percent, to
2,154.06.
Benchmark crude for December delivery on Monday rose $2 to settle at $79.43 a barrel on the
In other Nymex trading, heating oil rose
5.9 cents to settle at $2.0627 a gallon. Gasoline for December delivery gained
5.75 cents to settle at $1.9818 a gallon. Natural gas for December delivery
rose 7.5 cents to $4.67 per 1,000 cubic feet.
In