Today Stock Market News

HONG KONG (MarketWatch) — Indian shares advanced Thursday on the first trading day of 2009, paced by ICICI Bank after the lender cut its lending and deposit rates by at least half a percentage point. The benchmark Sensitive Index, or Sensex, rose 0.9% to 9,729.82 in early trading, after losing more than 52% of its value in 2008 and in the wake of an overnight advance on Wall Street. Most other majors markets were closed for a holiday, including in Tokyo, Hong Kong, Sydney, Shanghai, Seoul, Singapore, Taipei and Bangkok.

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HONG KONG (MarketWatch) — India’s ICICI Bank has cut its lending rates by a half percentage point and interest rates on retail fixed deposits by up to 0.75 percentage points, in the wake of similar moves by the private-sector lender’s state-owned peers. The bank slashed its prime lending rate to 16.75% from 17.25%. It has also cut its floating interest rates by a half-point to 13.75%, a move expected to benefit its home and auto loan customers.

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Canadian stocks Wednesday got a late-afternoon lift from surging oil prices, putting a positive finish on a year bruised by the commodity sell-off and credit crunch.

For most of 2008, the words “beleaguered” and “airline” went together like “chocolate” and “cake.” Could things get better in 2009?

From our mutual-funds reporting team to you, all best wishes for a productive and prosperous 2009.

The Treasury Department says it’s a challenge to understand how financial institutions participating in the $700 billion bank bailout program are using the capital they receive.

A flurry of FLIR Systems shares traded hands during Wednesday’s after-hours session, the last of the new year, as the maker of infrared technology moved onto the S&P 500.

SAN FRANCISCO (MarketWatch) — Scana Corp. said late Wednesday it increased a secondary public offering to 2.5 million shares from a previously disclose 2 million. The offering is priced at $35.50 a share. The offering is in conjunction with the company’s inclusion in the S&P 500, which became official at market close.

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SAN FRANCISCO (MarketWatch) — - FLIR Systems shares rose in heavy volume late Wednesday as the maker of infrared technology made a previously announced move into the S&P 500 index. At the start of the last after-hours session of 2008, more than 5 million shares traded hands, lifting the company to the top of the most active Nasdaq-listed companies. Shares last gained 1.5%. They had risen 3% in dayside trading, to $30.68. Last week, Standard & Poor’s said the Wilsonville, Oregon company would replace National City Corp. in the S&P 500 index after the close of trading Wednesday.

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NEW YORK (MarketWatch) — Stocks staged a modest rally Wednesday, the final session of 2008, as investors took stock of the worst year for the U.S. market since 1937 and some staked out fresh positions in battered financial stocks. On Friday, the Dow Jones Industrial Average gained 108 points, or 1.2%, to end at 8,776, with 25 of its 30 stocks advancing. The blue chip average slumped 33.8% this year. The S&P 500 index rose 12 points, or 1.4%, to end at 903. The S&P, widely considered as the most representative of the market gauges for U.S. stocks, fell 38.49% in 2008 and has not seen a worse year since 1937. The Nasdaq Composite gained 26 points, or 1.7%, to end at 1,577. The technology-heavy index fell 40.5% this year.

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Apple may be gearing up to introduce cheaper iPhone and MacBook models in 2009, possibly including a device dubbed the iPhone nano, an analyst says.

BOSTON (MarketWatch) — Assets in money-market funds jumped to fresh all-time highs in the latest week as nervous investors continued to shy away from stocks heading into 2009. Total assets in money-market mutual funds rose $23.44 billion to a record $3.759 trillion for the week ended Dec. 30, according to Money Fund Report, a service of iMoneyNet.

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Investors reeling from the 39% fall in the Standard & Poor’s 500 Index this year should console themselves that it could have been worse: three of the worst mutual funds of 2008 have racked up losses of more than 60%.

SAN FRANCISCO (MarketWatch) — Citigroup Inc. Chief Executive Vikram Pandit said Wednesday that he and Chairman Win Bischoff will not take a 2008 bonus and will dramatically cut pay and severance packages for executives. In a memo to Citi staff, Pandit said that pay at all levels will be based on performance relative to the overall performance of the company. Senior managers will see their bonuses “reduced substantially,” with those of the executive committee “cut even more.” The memo comes as Citi signed an agreement to issue $20 billion in preferred shares to the U.S. Treasury Department, with warrants to buy about 188.5 million shares of common stock at a strike price of $10.61 a share.

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Beware unstable molecules, Jim Jelter warns. This past year has been packed with them, especially in the chemical industry.

NEW YORK (MarketWatch) — Crude-oil futures surged 14% Wednesday as traders staked out new positions ahead of the new year, but futures still ended the year with their biggest loss. Crude for February delivery rose $5.57 to end at $44.60 a barrel on the New York Mercantile Exchange. Despite Wednesday’s rally, oil ended the year down 54%, the biggest yearly loss since oil futures started trading in New York in 1983.

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WASHINGTON (MarketWatch) — The Treasury Department on Wednesday said it is challenging for government officials to understand how financial institutions participating in a $700 billion bank bailout program are using the capital they receive. “Each individual financial institution’s circumstances are different, making comparisons challenging at best, and it is difficult to track where individual dollars flow through an organization,” Treasury wrote to a congressional oversight panel mandated by Congress. In a letter, Treasury Secretary Henry Paulson defended his use of roughly $350 billion in bank bailout funds authorized by Congress on Oct. 3. Treasury has used a significant amount of those assets to buy large minority stakes in large and small financial institutions as part of its Capital Purchase Plan. However, the government department has been under pressure by lawmakers to account for how those institutions have used the capital. So far, Treasury has allocated $162 billion to buy stakes in 208 financial institutions.

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Treasurys lower amid very thin trading, after the government said initial claims for jobless benefits fell last week.

NEW YORK (MarketWatch) — Fitch Ratings said Wednesday that it upgraded the issuer default ratings of National City Corp. and affiliates to “A+” from “BBB+” and removed them from rating watch positive. Fitch also affirmed the “A+” IDRs of PNC Financial Services Group Inc. and its affiliates. The rating outlook is stable.

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NEW YORK (MarketWatch) — The chief executive officer at Russian energy giant Gazprom said Wednesday that Russia’s gas supplies to Ukraine will be shut off Jan. 1, according to media reports. Talks between Gazprom and Ukraine, centered on $2 billion in debt owed by Ukraine, apparently broke down, the reports said. Earlier in the day, Ukraine threatened to seize gas intended for European customers if no deal was reached, according to the Associated Press, which noted that Gazprom supplies about one-fourth of the gas used by the European Union, and about 80% of it goes through Ukraine.

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CHICAGO (MarketWatch) — Illinois Secretary of State Jesse White refused to accept scandal-plagued Gov. Rod Blagojevich’s official proclamation of state-politics veteran Roland Burris as his choice to replace President-elect Barack Obama in the U.S. Senate, according to a Chicago Tribune report. White’s office conceded the move may prove to be symbolic, but a spokesman for the office was quoted as having told the Tribune that Senate Minority Leader Harry Reid had telephoned White to “thank him for his strong position on this important matter.”

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NEW YORK (MarketWatch) — Fitch Ratings said Wednesday that it placed the short-term issuer default ratings and commercial paper ratings of Dow Chemical Co. and Rohm & Haas Co. on rating watch negative. Fitch cited Kuwait’s cancellation of a joint venture with Dow for the action, as Dow was to use about $7 billion in net proceeds from the venture’s formation to help fund its acquisition of Rohm & Haas. Because of this development, Dow would need to fund the deal with almost all borrowed funds, so Fitch “cannot now rule out the possibility of a more than one notch downgrade of both issuers’ long-term IDRs from current levels.” Fitch also noted “the fundamentally weak state of the chemical industry from a demand and margin perspective.” Earlier this week, Moody’s Investors Service lowered the senior unsecured ratings of Dow and said it may downgrade the Baa1 rating of Rohm & Haas. Also earlier in the week, Standard & Poor’s cut its ratings of Dow and said it may lower ratings of Rohm and Haas Co.

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NEW YORK (MarketWatch) — Crude-oil futures surged 13% in late afternoon trading Wednesday, trimming a record yearly decline, as traders retook positions ahead of the new york. Crude for February delivery rose as much as 13.3% to $44.24 on the New York Mercantile Exchange. “We are seeing some year end short covering,” said Darin Newsom, a senior analyst at DTN. “The fundamentals are still very bearish.” Despite the rally, oil is set to end the year down 54%, the biggest yearly loss since oil futures started trading in New York in 1983.

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NEW YORK (MarketWatch) — Gold futures ended higher Wednesday, pacing gains in U.S. stock markets and crude-oil futures and finishing the year’s trading up for an eighth consecutive time — the longest winning streak since at least 1980. The metal’s annual gain, however, is the smallest since 2004.
Gold for February delivery closed up $14.30, or 1.6%, at $884.30 an ounce on the Comex division of the New York Mercantile Exchange. It dropped to as low as $857.30 earlier. Futures ended the year up 5.5%.

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Gold futures reversed earlier losses, pacing gains in U.S. stock markets and poised to end the year’s trading up for an eighth consecutive time — the longest winning streak since at least 1980.

NEW YORK (MarketWatch) — The VIX, otherwise known as the market’s fear gauge, slumped back below 40 on Wednesday, the final trading day of the year, for the first time since early October. The VIX , short for the Chicago Board Options Exchange Volatility Index, reached a low of 39.61 on Wednesday, a level unseen since Oct. 2. The VIX, based on a number of index options, shows the market’s expectations for volatility over a 30 day period. According to FactSet Research, it spiked to record highs of between 81 and 96 in late October, as panic gripped markets worldwide. Since 2003, readings below 20 were the norm.

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SAN FRANCISCO (MarketWatch) — Fifth Third Bancorp said Wednesday it closed its sale of $3.4 billion preferred shares to the U.S. Treasury Department under the Troubled Asset Relief Program. Fifth Third issued 136,320 shares of preferred stock having a liquidation preference of $25,000 a share, and a ten-year warrant to purchase up to 43.6 million shares of Fifth Third common stock at an exercise price of $11.72 a share. Shares of Fifth Third were flat at $7.97 in recent trading.

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Microsoft warns customers using the 30-gigabyte version of its Zune media player that they “may experience issues when booting their Zune hardware.”

SAN FRANCISCO (MarketWatch) - Microsoft Corp. on Wednesday said customers using the 30 gigabyte version of its Zune media player “may experience issues when booting their Zune hardware,” the company said on its Web site. Several media outlets have reported complaints from users who said their Zune devices were frozen.

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WASHINGTON (MarketWatch) — Securities and Exchange Commission Inspector General David Kotz is scheduled to testify before lawmakers on Monday about the alleged $50 billion investment fraud carried out by Bernard Madoff, according to a statement Wednesday by a House capital markets subcommittee. The subcommittee chairman, Rep. Paul Kanjorski, D-Pa., said the hearing will help lawmakers to understand whether the SEC had adequate resources and how the alleged scheme evaded detection for so long. On Dec. 17, SEC chairman Christopher Cox said he ordered Kotz to investigate past allegations against Madoff and why they were found not to be credible. In addition, the probe will look at all staff contacts and relationships with the Madoff family and firm, and whether they had any impact on decisions by SEC staff.

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U.S. stocks rise the final trading session of 2008, as investors took stock of a terrible year for global markets.

Petroleum, natural gas shares and oil service shares fall ahead of weekly inventory data in the last trading day of 2008, closing the books on a wild and weaker year.

NEW YORK (MarketWatch) - U.S. crude stockpiles rose 500,000 barrels to 318.7 million in the week ended Dec. 26, U.S. Energy Information Administration reported on Wednesday. Analysts surveyed by energy information provider Platts had expected a drop of 1.75 million barrels. After the data, crude-oil futures for February delivery fell 0.6% to $38.80 a barrel on the New York Mercantile Exchange. Gasoline inventories rose 800,000 barrels in the latest week, while distillate stocks rose 700,000 barrels, EIA reported.

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Among the companies making notable moves in the stock market Wednesday are VeriFone Holdings Inc., Fannie Mae and Freddie Mac.

SAN FRANCISCO (MarketWatch) — Freddie Mac said Wednesday that its benchmark long-term mortgage rate average fell for the ninth consecutive week and to a new low since it started tracking the rate in 1971. The 30-year fixed-rate mortgage average fell to 5.1% with an average 0.7 point for the week ending Dec. 31, down from last week when it averaged 5.14%. Last year, the average was 6.07%. “Since the end of October of this year, these rates have declined by about 1-1/3 percentage points, or payment savings of approximately $173 a month for a $200,000 loan,” said Frank Nothaft, Freddie Mac chief economist, in a statement. “As a result, the number of refinance applications for conventional mortgages jumped over 500% between the weeks ending on Oct. 31st and Dec. 26th.”

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BOSTON (MarketWatch) — Allied Capital Corp. shares rose about 7% in early trading Wednesday after the company said it has amended certain terms under its revolving credit facility and amended some terms of its outstanding private notes. The moves give the business development company some breathing room on its debt. Fitch Ratings on Wednesday removed some of Allied Capital’s debt ratings from rating watch negative, citing the company’s ability to obtain covenant amendments from its private-note holders.

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SAN FRANCISCO (MarketWatch) — Airline stocks straddled the breakeven line in early trading Wednesday, with the Amex Airline Index inching lower by 0.2% to 23.95 points. Seven of the index’s 13 components edged lower, led by Alaska Air Group , which fell 2%. Among the top U.S. carriers, U.S. Airways , Continental Airlines , and American Airlines parent AMR Corp. rose.

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NEW YORK (MarketWatch) — Energy stocks began the last trading day of 2008 with modest losses. The Amex Oil Index fell 0.3% to 966.6. The Amex Natural Gas Index traded flat at 371.

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SAN FRANCISCO (MarketWatch) - Technology stocks edged up Wednesday morning as the broader market rose slightly as 2008 drew to a close. The Nasdaq Composite Index and the Morgan Stanley High Tech 35 Index were up fractionally, while the Philadelphia Semiconductor Index was down slightly. The Dow Jones Industrial Average was ahead about 40 points.

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NEW YORK (MarketWatch) — U.S. stocks opened up slightly on Wednesday, the final trading session of 2008, as investors took stock of a terrible year for global markets. Year to date, the Dow industrials have slumped nearly 35%, the S&P 500 has lost 40%, and the Nasdaq Composite is off almost 42%. But in early trading action Wednesday, the Dow Jones Industrial Average rose 35 points, or 0.4%, at 8,704, with 24 of its 30 components gaining ground. The S&P 500 index rose 2.3 points, or 0.3%, at 893, and the Nasdaq composite rose 4 points, or 0.3%, at 1,555.

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Crude-oil futures fell for a second session ahead of the government’s petroleum inventories data, heading for their worst year on record on concerns that the economic recession will cut energy demand.

NEW YORK (MarketWatch) — Treasurys remained lower early Wednesday amid very thin trading, after the government said initial claims for jobless benefits fell last week. Ten-year note yields rose 2 basis points to 2.08%. Jobless claims declined 94,000 to 492,000 in the week ended Dec. 27, the Labor Department said. Continuing claims for benefits, an indication of the difficulty in finding a new job, rose to a 26-year high. Bond markets are expected to close around 2 p.m. Eastern for New Year’s Eve and remain closed on Thursday.

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NEW YORK (MarketWatch) — The U.S. dollar remained higher early Wednesday amid very thin trading, after the government said initial claims for jobless benefits fell last week. The dollar index , which tracks the currency versus several major counterparts, rose 0.9% to 81.48. The euro fell 1.5% to $1.3897. Jobless claims declined 94,000 to 492,000 in the week ended Dec. 27, the Labor Department said. Continuing claims for benefits, an indication of the difficulty in finding a new job, rose to a 26-year high. Some overseas markets were closed or trading ended early. U.S. bond markets are expected to close around 2 p.m. Eastern for New Year’s Eve and remain closed on Thursday.

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WASHINGTON (MarketWatch) — First-time applications for state unemployment benefits fell 94,000 to a seasonally adjusted 492,000 in the week ending Dec. 27, the Labor Department said Wednesday, citing seasonal factor volatility to explain the surprising drop. Despite the decline, the level of claims is 45% higher than the same period in the prior year. The four-week average of new claims fell 5,750 to 552,250. Meanwhile, the number of people collecting benefits in the week ending Dec. 20 rose 140,000 to 4.51 million - the highest level since December 1982. The four-week average of continuing claims rose 103,750 to 4.42 million - also the highest level since December 1982. The government added that the insured unemployment rate rose to 3.4% — the highest level since November 1983 — from 3.3% in the prior week.

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NEW YORK (MarketWatch) — Crude-oil futures fell Wednesday for a second session ahead of the government’s petroleum inventories data, heading for their worst year on record. Crude for February delivery fell $1.49, or 3.8%, to $37.54 a barrel in early North America electronic trading. Futures have slumped more than 60% so far this year, the biggest yearly loss since crude started futures trading in New York.

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NEW YORK (MarketWatch) — Dell Inc. says two of its senior executives will be leaving the company.

The volume of residential mortgage applications filed last week shows little chang from the prior week, evan as the interest rates charged on mortgages fall further, data compiled by the Mortgage Bankers Association show.

NEW YORK (MarketWatch) — Dell Inc. said Wednesday that two of its senior executives will be leaving the company. The computer maker said Mike Cannon, president of global operations, will retire effective Jan. 31, and Mark Jarvis, chief marketing officer, will leave the company this fiscal quarter. Cannon, who will serve as a consultant to Dell, will be succeeded by Jeff Clarke, currently the head of Dell’s business client product group. Clarke will also become vice chairman. Jarvis, who will also remain a consultant to Dell, will be succeeded by Erin Nelson, formerly vice president of marketing, Dell Europe, Middle East and Africa.

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Stock market futures edge higher Wednesday ahead of the final trading session of 2008 as investors took stock of a terrible year for global markets.

LONDON (MarketWatch) – U.K. shares move higher to end a terrible year for the British market, with Aberdeen Asset Management surging after it agreed a deal to buy a fund management business from Credit Suisse.