Crude Oil Hovers Near $49 a Barrel on Stockpile Report

New York--Crude oil futures settled in the red Wednesday as an industry report indicated much higher-than-expected increases in U.S. stockpiles, bringing inventories to an 18-year high.

Crude

After hovering in the $49 to $50 range Wednesday, crude for May delivery ended up down 16 cents per barrel, or 0.32%, to settle at $49.25, down for the third consecutive trading day, according to the New York Mercantile Exchange.

Inventories increased 5.6 million barrels from the previous week, bringing total stockpiles to 366.7 million barrels for the week ending April 10, according to a weekly report released Wednesday by the Energy Information Administration. Analysts had expected inventories to rise by 2.1 million barrels, according to a Dow Jones survey.

Crude inventories are up for the fifth consecutive week and continue to build upon 18-year highs.

Mark Waggoner, president of Excel Futures, told FOX Business that despite falling oil prices now, he expects them to shoot up in the coming weeks.

“In the near term I would expect it to drop, but I do expect it to continue moving higher. I think the finished products are really what are going to drag this market to higher levels. Refinery operations are down and are going to be down for some time yet, although they will be coming back on line before summer,” he said.

Other Fuels

Other fuels followed crude’s lead into the red Wednesday amid the report’s indication of further inventory increases. Natural gas was the sole metal to shoot into the green.

Natural gasoline for May delivery rose 0.4 cents per million BTUs, or 0.11%, to $3.693, amid the industry report’s indication that total motor gasoline inventories decreased by 900,000 barrels last week. Natural gas has been in the green for three straight days.

Consumers at the pump can expect to pay $2.051 Wednesday for regular unleaded gasoline, up slightly from Tuesday’s average of $2.050, according to the AAA Daily Fuel Gauge Report. A year ago consumers were paying $3.386.

“I think we’re headed for $3 at the pumps somewhere around July. I don’t know that we’ll go much above that though and I don’t think that it will maintain those levels and certainly will stay at lower levels that we have seen in the previous year” Waggoner told FOX Business.

Heating oil for May delivery fell 0.13 cents per gallon, or 0.09%, to $1.4010, down two of the last three trading days. RBOB gasoline for May delivery fell 1.08 cents per gallon, or 0.74%, to $1.4468, down for the third day in a row.

Metals

Precious metals all showed gains Wednesday in an attempt to hedge against rapidly increasing oil inventories amid slumped demand.

Gold for April delivery gained $1.90 a troy ounce, or 0.21%, to $892.80 Wednesday and Silver gained 3.50 cents per troy ounce, or 0.27%, to $12.795- both up two of the past three sessions.

Copper for April delivery gained 8.85 cents per pound, or 4.18%, to $2.2035, up five of the past six sessions. Wednesday’s settlement was its highest since October 15, 2008.


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Challenges on the Autism Spectrum

April is Autism Awareness Month -- and while Dana Commandatore will be the first to tell you it isn’t about her, it sort of is. It is also about Lisa Guardado and her husband, Eddie, a Major League Baseball pitcher.

These people are raising children with autism and to increase public awareness would not only serve the children, but assist them in their parental mission.

“We want Michelangelo to be as independent and happy as possible,” Commandatore said of her 6-year-old son in our recent interview.

And while that may sound like the mission of most parents, achieving this when a child has autism comes with some mind-boggling challenges.

“There are so many people who don’t know what this is,” said Lisa Guardado, whose 4-year-old daughter Ava is on the autistic spectrum.

In both cases, creative juice has been put into helping the national conversation with projects bearing the child’s name; one is a book, the other a foundation.

A writer for as long as she can remember, it wasn’t until Commandatore was inspired by her son that she felt like she had something to say. It came through her in the form of a children’s book called Michelangelo the Diver .

“I write social stories for Michelangelo,” said Commandatore, who works in advertising while her husband, Michael, is a voice-over actor. “It’s a way of preparing him for things, like getting a hair cut for the first time. Then we read it to him for weeks in advance. He was having dreams and he had no idea how to explain them. We were trying to explain to him the difference between sleeping dreams and waking dreams, so I wrote one for that. It was the clearest thing I’ve written in my life.”

What is particularly clear about her book -- complete with stunning illustrations by Damian Elwes -- is that Commandatore has had a dynamic paradigm shift with regard to parenting. In the dedication, she writes, “When my son, Michelangelo, was diagnosed with autism I was worried that all my dreams would disappear. I was wrong. He constantly inspires and challenges me to help him realize his dreams.”

What follows in its pages is not a story geared to children with autism, but one with the universal theme that your dreams can come true. Michelangelo is fascinated with visiting the Aquarium of the Pacific (in Long Beach, Calif.) and Commandatore’s story stems from that. It hits just the right note because so much of this developmental disability is about managing expectations. The parents of children with autism have that challenge 24/7 and for most there is little energy left at the end of the day to educate others about it.

I know something about this. My 7-year-old nephew, Stephen, and 5-year-old niece, Gina, are both on the spectrum and I have seen my siblings go through that monumental shift in parenting them. When people hear that Stephen knows the difference between Mozart and Tchaikovsky or that he can identify a Van Gogh, their well-meaning response is, “He’ll be fine.” Yet it feels dismissive to the person who is trying to nurture a special-needs child and is looking for occasional emotional support.

“When your child has autism, a lot of times people don’t know what to do,” Lisa Guardado said.

As for Gina, she is now prone to telling her mother to “take a deep breath” when she raises her voice. While it would be amusing in most children, in her case it’s humorous but also meaningful that she knows its proper context because her verbal skills and vocabulary are just starting to escalate.

“It is such a huge spectrum,” Guardado said. “So many people want to interact with Ava, especially because my two boys (ages 12 and 7) are well-mannered and talk to others easily. When people try to talk to her, I explain the situation. I don’t want her to be labeled as a bratty kid. I don’t want them to think she has no manners.”

And while managing those kinds of expectations is a hefty part of the challenge, so is due diligence in early detection and subsequent care and schooling. Services that might maximize a child’s development are not necessarily covered by insurance. That’s where Guardado’s foundation -- Ava’s Friends -- comes in.

“We’ve been really blessed with our daughter and being able to afford the best possible therapy,” Guardado said. “It breaks my heart that so many kids could grow up and not get that. We want to help.”

The foundation is pretty new (late 2008), but has already begun receiving applications. The Web site is a portal for resources and sharing stories. In addition, there is Monday Monday, a clothing line that is designed to raise awareness about autism and bring funding to the foundation.

“I just want people to know at the end of the day that this is OK,” Guardado said.

Or, as one mystical friend said recently when I was telling him about my niece and nephew, who he’s never met:

“You realize they’re perfect just the way they are, right?”

Yes, I am. But thanks for reminding me.

Nancy Colasurdo is a practicing life coach and freelance writer. Her Web site is www.nancola.com. Please direct all questions/comments to FOXGamePlan@gmail.com.


People in Business
Crude Oil Hovers Near $49 a Barrel on Stockpile Report
For GM, Bankruptcy May Not Be Such a Bad Thing

Portie Demand Grows as Obama Family Adopts Bo

With the Obama family’s adoption of Bo, a six-month-old purebred Portuguese Water Dog, Porties have been thrust into the limelight -- causing demand for the breed to shoot off the charts.
Although one might think having a Portie as First Dog could have only a positive impact on the semi-rare breed, the sudden upheaval could also lead to problems for the pooches.

For one thing, breeders fear that the rapid increase in popularity could cause people to adopt the dog without really evaluating whether the breed is right for them, according to breeders cited in an NJ.com article.

Porties are very difficult to maintain due to their high energy level and need for constant activity, according to some breeders, who believe that despite making great family dogs, they may not be a best fit for all.

Porties already carry a heavy price tag, selling above $1,500, and their newfound popularity may cause prices and exploitation to skyrocket.

With a sudden increase in demand, puppy mills could rapidly emerge in an attempt to make a quick buck, a long-time concern held by The Humane Society. Puppy mills are breeding facilities that produce purebred puppies in large numbers, often in poor conditions, and animal-rights advocates have long opposed them.

Breeders also express concerns because Porties are a semi-rare breed and the creation of puppy mills and mass demand will rapidly increase the numbers of dogs and somewhat interrupt traditional breeding methods.

Portuguese water dogs derive from the coast of Portugal, where they were used to help fisherman catch fish and acted as a courier from ship to ship at sea. There were only 12 known purebred Porties in America in August 1972, according to the American Kennel Club. A decade later there were 650 and the numbers continue to increase.


Ford hopes European van attracts U.S. families
CEOs Expect Fewer Sales, More Job Cuts

Banks Fuel Triple-Digit Pullback

Profit-taking in red hot financial stocks and a new reminder of the weak economy sent the markets reeling on Tuesday as the bulls take a breather from their recent run.

Today's Markets

The Dow Jones Industrial Average tumbled 137.63 points, or 1.71%, to 7920.18, the S&P 500 fell 17.22 points, or 2.01%, to 841.51 and the Nasdaq Composite lost 27.59 points, or 1.67%, to 1625.72. The consumer-friendly FOX 50 dropped 12.16 points, or 1.90%, to 627.67.

“We are allowed to give a little bit back. We need this kind of action to test the market and find out if we have any legs,” NYSE trader Ted Weisberg of Seaport Securities told FOX Business.

Tuesday's selloff came in the face of positive earnings reports from Goldman Sachs (GS) and Johnson & Johnson (JNJ). The markets also failed to rally around optimistic commentary about the economy from Washington officials.

Tennessee Livestock Auctions
Good Thursday For Stocks: Dow Jumps 246

S&P Raises Credit Rating on Ford

The rating agency Standard & Poor’s raised the credit rating of Ford Motor Co. (F) by one notch on Monday, saying that the company’s credit profile, while still very risky, was better than its nearly-bankrupt competitors.

The agency now gives the corporate credit rating on For a rating of CCC+, up from a rating of SD- (selective default). A CCC+ credit rating is still one of the lowest ratings a corporation can get from the rating agency, and S&P kept the company’s outlook as “negative” saying there’s a possibility that Ford’s credit rating could be downgraded again.

“In our view, Ford's current credit profile remains superior to that of its Michigan-based competitors, GM and Chrysler,” said S&P rating analyst Robert Schulz in a statement. “We also believe Ford Credit has been less constrained recently than its peers in its ability to provide financing for Ford customers.”

Ford has been considered by most lawmakers and traders to be the “healthiest” of Detroit’s Big Three auto makers. The company did not take any direct government loans in December when Chrysler and General Motors (GM) did so. The company also sits on $17.3 billion in cash, which is expected to last it all of this year and perhaps some of 2010.

S&P analysts said that Ford’s credit ratings could be downgraded if the company’s liquidity drops below $10 billion.



For GM, Bankruptcy May Not Be Such a Bad Thing
Good Thursday For Stocks: Dow Jumps 246
Attics to doors, tax credit has it covered

Administration Set to Ease Trade Rules With Cuba

Breaking slightly from decades of animosity and government imposed trade restrictions, the Obama Administration said Monday it will allow U.S. telecom companies to apply for licenses to do business in Cuba.

The move is part of a broader policy shift designed to open up access to the Caribbean nation for the 1.5 million Americans who have relatives there.

An Administration official said the licenses would allow companies to set up television and mobile phone services for Cubans and allow their U.S. relatives to pay for the services.

In addition, the Administration will allow Americans to send more types of humanitarian aid to Cuba, including clothing, personal hygiene items, seeds, fishing equipment and medicine.

President Obama had promised to take these steps as a presidential candidate. An announcement is set for Monday afternoon.

Other steps taken Monday include expanding the things allowed in gift parcels being sent to Cuba, such as clothes, personal hygiene items, seeds, fishing gear and other personal necessities.

"The announcement today is good news for Cuban families separated by the lack of freedom in Cuba," Senator Mel Martinez - R, Fla., said in a statement. "The President has expressed his commitment to freedom -- libertad -- for the Cuban people, and policy implementation should advance that objective."

In a speech a year ago in Miami, the epicenter of Cuban/American society, Obama promised to depart from what he said had been the path of previous politicians on Cuba policy -- “they come down to Miami, they talk tough, they go back to Washington, and nothing changes in Cuba.”

Obama has also promised to engage in direct diplomacy with Cuba, “without preconditions” but with “careful preparation” and “a clear agenda.”

Some lawmakers, backed by business and farm groups seeing new opportunities in Cuba, are advocating wider revisions in the trade and travel bans imposed after Fidel Castro took power in Havana in 1959.

But the President is keeping the decades-old U.S. trade embargo against Cuba in place, arguing that that policy provides leverage to pressure the regime to free all political prisoners as one step toward normalized relations with the U.S.


Treasury Again Considering TARP Assistance for Life Insurers
Business Calendar

Connecticut Town Sues Madoff to Recoup Pension Fund Losses

The town of Fairfield, Conn., on Monday took significant legal strides toward recouping at least some of the $42 million it lost to Bernard L. Madoff’s massive Ponzi scheme.

During a court hearing in Bridgeport, a judge agreed to put aside $25 million in cash escrow accounts and properties owned by Madoff relatives and business partners named in a lawsuit filed by Fairfield.

If the town wins its suit, at least that amount will be available to replenish the town’s pension fund for public employees.

Fairfield’s First Selectman Kenneth Flatto told the FOX Business Network that some 1,500 policemen, firemen and other municipal workers were affected by the Madoff scandal.

“All of these workers deserve their full pensions paid for,” he said.

Fairfield’s joint pension board had initially invested about $22 million in the Madoff fund through Maxam Capital in Darien, according to the Connecicut Post.

The last statement received on that investment in November showed the balance had swelled to $42 million just weeks before Madoff was arrested for masterminding perhaps the largest investment fraud in history.
The agreements to put aside some assets were reached with several defendants in the Fairfield suit, including, Madoff’s sons, Andrew and Mark, who own homes in Greenwich, Conn.

At the same hearing, Judge Arthur Hiller lifted a temporary restraining order issued last month that froze the assets of those defendants. Bernard Madoff and his wife Ruth’s assets are frozen through action against them by the federal government.

The restraining order named many of the most prominent players in the Madoff scandal: Madoff, his wife, his brother Peter, and son-in-law Andres Piedrahita; sons Andrew and Mark Madoff and Walter M. Noel Jr., a partner in the Fairfield Greenwich Group, a feeder fund; Sandra L. Manzke, the founder of Maxam Capital; Robert I. Schulman, the former chairman of Tremont Group Holdings; and Jeffrey H. Tucker, the co-founder of the Fairfield Greenwich Group.

Meanwhile, two tickets to the New York Mets’ opening home game of the Major League Baseball season owned by Bernard L. Madoff Investment Securities LLC were sold for $7,500 on EBay Inc.’s auction site.

The tickets for tonight’s game against the San Diego Padres at the new $800 million Citi Field, each with a face value of $525, solicited 68 bids before the auction ended Sunday. A bidding war between two people drove the price from $4,000 in the last half hour.


Business Calendar
Madoff’s Mets Tickets Up for Grabs

Market Winners & Losers: E*Trade, General Motors

A late market surge erased early losses, though the major indices still managed to close mixed. The day was marked by a flight to gold as the big banks look to report earnings and oil fell more than 4%.

Here are today’s winners and losers:

Winners

Huntington Bancshares Inc. (HBAN)
The regional continued its rally from last week’s Wells Fargo outlook. The stock closed up 33%, to $2.86 – a gain of 71 cents on the day.

E*Trade Financial Corp. (ETFC)
Following sector trends, the stock gained 28.9%, or 39 cents, to close the day at $1.74.

Citigroup Inc. (C)
News of a possible sale of its Nikko Citigroup investment group helped shares of the financial giant rise 25%, or 76 cents, to close at $3.80.

American International Group Inc. (AIG)
Despite continued worries about the insurance behemoth, the stock followed sector trends and ended the day up 22.4%. AIG finished the session at $1.42, a gain of 26 cents.

Fifth Third Bancorp. (FITB)
An analyst upgrade on JP Morgan sent other banks higher Monday, regionals included. FITB saw monster gains, closing up 21.2% higher. Shares ended the day at $4.34 a piece, a gain of 76 cents on the day.

Losers

Genworth Financial Inc. (GNW)
The insurer said that it would not be taking TARP, and investors were not pleased. Shares fell 17.8%, or 49 cents, to end the day at $2.26.

General Motors Corp. (GM)
Continued bankruptcy worries hurt the auto maker, sending shares down by 16.2%. GM ended the day at $1.71, a loss of 33 cents.

MEMC Electronic Materials Inc. (WFR)
News that the company might miss its first quarter revenue outlook sent shares of WFR down by14.6% on Monday. The wafer maker closed at $16.18, a loss of $2.76.

Textron Inc. (TXT)
A downgrade to neutral sent the stock down by 9.5%, or $1.29, on the day. Shares closed the first session of the week at $12.27 a piece.

Teradata Corp. (TDC)
Following sector trends, the data warehousing company fell 6.9%. TDC last traded at $15.31, a loss of $1.14.


Pulte deal creates home-building giant
Market Winners & Losers: Textron, H&R Block

For GM, Bankruptcy May Not Be Such a Bad Thing

Even as General Motors (GM) fights tooth and nail to stave off a Chapter 11 filing, it’s apparent the giant auto maker would have the luxury of entering bankruptcy proceedings with several significant advantages, not the least of which is the backing of Uncle Sam.

GM has yet to file for Chapter 11, but the writing may be on the wall. The auto maker has reportedly sped up preparations for a bankruptcy filing, given that the government threatened to cut off funding due to struggles to restructure out of court.

If GM is able to successfully emerge from bankruptcy proceedings, the auto maker would follow in a line of now-viable companies like Delta Air Lines (DAL), Macy’s (M) and Calpine (CPN) that were the products of Chapter 11 filings.

“Chapter 11 in my mind is a very valuable tool for corporate restructuring in America and needs to be recognized as such by the business community. In the last few years there has been a more limited use and more of a fear of filing than there had been in the past,” said Dave Heiman, a bankruptcy partner at Jones Day, which Chrysler LLC has retained as its bankruptcy counsel. Heiman declined to comment on the auto makers specifically.

Due to its unique circumstances, GM has a chance to enter bankruptcy with a badly needed head start.

‘Ultimate Credit Enhancer’
It's widely assumed that the U.S., which has loaned GM $17.4 billion, will provide the company with debtor-in-possession financing, giving the company the luxury of avoiding the dried up markets for DIP altogether.

“That is a huge advantage. I can’t think of any other debtor in the last 27 years that’s had that sort of backing. It’s the ultimate credit enhancer,” said Thomas Salerno, co-chair of international restructuring at Squire, Sanders & Dempsey. “Let’s face it, if the government can’t make good on this, the world has a whole other set of problems” that are worse than a failed auto maker.

It’s a good thing the U.S. has its back as GM would likely be unable to receive DIP funding due to its long stream of red ink.

Warranting Concern
GM originally insisted a bankruptcy filing wasn’t in the cards because customers would never buy cars if they weren’t assured the company’s warranties and service would be around tomorrow.

Even Douglas Baird, a law professor at the University of Chicago who opposed the auto bailouts, agrees this presents an issue.

“We haven’t had a large manufacturer of durable consumer goods go through bankruptcy. It creates a problem with respect to warranties,” said Baird.

The U.S. quickly solved that problem by backing all GM warranties last month.

“Very few companies have the benefit of the full faith of the government behind them,” said Salerno.

What Stigma?
Bankruptcy experts also said the stigma of a bankruptcy filing has been lessened as the recession has forced scores of companies and thousands of Americans to do the same.

“In some respects there is plausible deniability because everyone is in trouble. It’s almost the norm,” said Salerno.
Angela Somers, a bankruptcy attorney and senior counsel at law firm Allen & Overy, echoed that sentiment.

Actually, it might be safer buying from a Chapter 11 company than from one which has tried to avoid filing but whose problems are mounting.”

Gift-Wrapped Chapter 11
Unlike many companies that start from scratch when they enter bankruptcy proceedings, it’s also assumed that GM would have the advantage of a prepackaged bankruptcy. This type of filing is often cheaper, quicker and less risky as the major parties negotiate the general terms of bankruptcy ahead of time.

“It gives the case direction or the illusion of direction. Either can be helpful,” said Somers.

Lessons Learned?
To be sure, few are saying that even these distinct advantages will make a bankruptcy filing pain-free for GM. Even in a best-case scenario, a GM bankruptcy would likely lead to many more layoffs and the scuttling of well-known brands. And the process could drag out for years and fail to produce a viable GM if the auto maker fails to heed the lessons of previous cases.

“The biggest mistake people make is they don’t do enough,” said Baird. “You have too many firms that restructure and don’t bite the bullet. They don’t make all the hard changes they need to make.”

It’s also important to remember that Chapter 11 isn’t a cure-all and cannot fix a broken business model.

“Bankruptcy can clean up your balance sheet but [as a restaurant owner] if your balance sheet is bad because your food is bad, bankruptcy can’t help you,” Baird said.

In an attempt to address that issue, GM is reportedly considering using the process to split into a “New GM” that would contain desirable brands such as Chevrolet and Cadillac and an “Old GM” holding less-profitable Saturn and the company’s massive health-care liabilities.

Regrettably for GM, it may be too late for the auto maker to learn from one the biggest lessons of failed Chapter 11 filings of the past.

“Don’t’ be too afraid of filing. They have already unfortunately failed on that lesson,” said Somers.


Asia Stocks Push Towards 6-Month Highs
Ford hopes European van attracts U.S. families
Madoff’s Mets Tickets Up for Grabs

Is this Rally for Real? Some Say Maybe Not

U.S. stocks typically rebound six months before the economy, but investors worry that the current 25% rally since the market's March 9 low could be a red herring.

At the same time, lack of investor conviction — or simple fear — can be considered a sign of a healthy market.
Reasons to be pessimistic about the economic outlook abound: unemployment is the highest since 1983, house prices are still falling by record amounts and persistent questions remain about which banks will still be in business next year.

Many investors are holding out for clearer signs that the worst financial crisis in generations is over before they commit to jumping back into the stock market. They worry that more bad news awaits in the months ahead to trip up the latest rally.

Declining volume tells part of the technical story. The average total value of stocks traded each day on the Nasdaq has fallen about 40% from 2008 levels so far this year through March.

Wall Street's fear gauge, the CBOE Market Volatility index, also remains stubbornly high, only dipping below 40 in recent sessions despite trading below 30 in more normal times.

Still, stock prices may have reached a bottom in early March, said Linda Duessel, a market strategist at Federated Investors in Pittsburgh.

"Insofar as 'Will investors jump back in like they have historically?' I think the numbers are showing that they are much more reluctant," she said.

The S&P 500 Index is up 25% from a 12-1/2 year low in early March. Last week, a Reuters poll of Wall Street dealers showed seven of 11 economists forecast a turnaround starting in the third quarter.

Yet investors big and small have been hit with huge losses, with the benchmark S&P 500 index down 46% since hitting an all-time high in October 2007.

The equities market in the past has rebounded anywhere from three months to nine months before the economy reverses its slide, with the average time about six months.

"The market consensus right now is for positive GDP in the third quarter," said Tim Ghriskey, chief investment officer of Solaris Asset Management in Bedford Hills, New York. "The worry is, that might be a little bit premature."

The U.S. economy is on track for the worst recession since World War Two, leaving investors warier than in other downturns in recent years.

Wall Street has made several attempts to move higher since last October, only to be pulled back to new lows each time.

Bruce Bittles, chief investment strategist at Robert W. Baird & Co in Nashville, would like to see even more investor skepticism, as the point of maximum optimism is typically the top of the market.

The more skepticism we see (in the market), the better the chances the market has of going up," he said. "We don't want to see optimism here, that would be a negative for market."

Given the view that the economy will turn around in the third quarter, some investors have returned to the market.

"People may be getting in sooner than the six months," said Carl Birkelbach, chairman and CEO of Birkelbach Investment Securities in Chicago. "I think that people will always pit fear against greed and once the market starts moving up, greed will start taking over."


Week Ahead: Big Banks Report Earnings
Bootstrapping is safest path to profitability
Good Thursday For Stocks: Dow Jumps 246

Week Ahead: Big Banks Report Earnings

Investors will look to first-quarter earnings reports next week for evidence that Thursday’s surprise profit announcement from Wells Fargo (WFC) was more than a fluke.

Economic reports due next week are likely to show continued low inflation and another drop in housing starts in March.

The financial sector will be squarely in the spotlight: Goldman Sachs (GS), which reports on Tuesday, is expected to return to a profit after posting a quarterly loss in December, the first since it became a public company in 1999.

Two other big U.S. banks, JPMorganChase (JPM) and Citigroup (C), will report on Thursday and Friday, respectively. Both said in March that business had improved in the first two months of 2008 after posting huge losses last year.

Google (GOOG), which reports Thursday, is expected to post higher per-share earnings and revenue despite concerns about a decline in online advertising.

Two large U.S. drug makers, Johnson & Johnson (JNJ) and Abbott Laboratories (ABT), report on Tuesday and Wednesday, respectively. The economic downturn has hurt some of J&J’s diverse units, including the consumer-health care division. Meanwhile, Abbott has held its own through the recession, helped by its fast-growing business in heart stents, which are used to prop open damaged arteries.

Computer chip maker Intel (INTC) reports first-quarter results Tuesday, and investors will be watching for any hints about whether the steep drop in demand for chips is easing. AMR Corp. (AMR), parent of American Airlines, and Southwest Airlines Co. (LUV) also report first-quarter results next week, on Wednesday and Thursday, respectively.
Investors will be looking to see how the airlines are weathering the economic storm.

Two of the nation’s troubled newspaper publishers, Gannett (GCI) and Media General (MEG), will post first-quarter results next week amid continuing declines in advertising and readership. Gannett reports on Thursday and Media General a day later.

General Electric (GE) reports first-quarter results on Friday and the focus is expected to shift from its beleaguered finance arm, GE Capital, to its big industrial businesses.

The government will report on March wholesale prices Tuesday and consumer prices a day later; both are estimated to show rises of 0.1%. On Thursday, March housing starts are expected to drop for the eighth time in nine months after an unexpected jump last month.

A report on March retail sales Tuesday is expected to show a gain of 0.3% after a drop of 0.1% in February. The government also details February business inventories Tuesday and March industrial production a day later.

On Wednesday, the Federal Reserve releases its Beige Book of anecdotal reports on economic activity in various regions.

Also, income taxes are due Wednesday.


CEOs Expect Fewer Sales, More Job Cuts
Good Thursday For Stocks: Dow Jumps 246
Nashville loses trusted voice of Dan Miller
Tennessee Livestock Auctions

Cavuto: White House Needs to Prioritize

Missed tonight's Cavuto ? Catch "The Deal" right here on FOXBusiness.com

Iran has installed 7,000 centrifuges at a key uranium enrichment facility. And it's teasing us.

Somali pirates aren't backing down, In fact, they're upping the ante on us.

And Wells Fargo's (WFC) making money hand over fist, making many wonder about the wisdom of banks getting any more money from us.

And what's the White House up to?

Immigration.

Forget about "here's the deal" -- what's the deal?

It comes down to this. Lots of problems that need addressing in this country.

Why add another?

None of this is to say illegal immigration doesn't need addressing.

Just pick and choose what you're addressing.

Because right now, what's confusing folks is that the President's addressing too many things that don't matter now, and not focusing on things that should be resolved right now.

Again, none of this is to say immigration doesn't matter, regulatory reform doesn't matter, healthcare doesn't matter, getting in sync with our allies doesn't matter..

But frankly, none of those things matter now when you've got nuts intent on messing with us... and banks profiting handsomely off the money they've gotten from us.

I'm happy for the banks. Cut the cord.

I'm worried about the nuts. Cut the talk.

So, Mr. President, cut to the chase.

On stuff that matters now. Not the stuff we can't be spreading ourselves thin and wasting precious resources now.

You hear me, now?



Pulte deal creates home-building giant
Week Ahead: Big Banks Report Earnings
Asia Stocks Push Towards 6-Month Highs

Good Thursday For Stocks: Dow Jumps 246

It turned out to be a good Thursday for Wall Street and the stock market after a surprise preliminary earnings report from Wells Fargo & Co. sent stocks rallying more than 245 points.

This comes despite an overall disappointing group of retail sales reports most notably from the retail giant Wal-Mart.

Today’s Markets

At the 4 p.m. close in New York, the Dow Jones Industrial Average futures jumped 246.27 points, or 3.14%, to 8083.38, the S&P 500 rose 31.38 points, or 3.80%, to 856.54 and the Nasdaq Composite added 61.88 points, or 3.89%, to 1652.54. The consumer-friendly FOX 50 index added 20.51 points, or 3.31%, to 639.66.

Overall, the Dow gained approximately 1% for the week - its fifth-straight week - despite a two-day slide on Monday and Tuesday.

Thursday's trading session will be the last for this week, with the bonds, commodity and stock markets closed Friday in observance of Good Friday.

Wells Fargo (WFC) was the fuel for the market's fire after the San Francisco-based bank said it sees a profit of $3 billion, 55 cents per share in the first quarter, widely topping estimates for 23 cents per share and the $2 billion profit the bank earned this time last year. Shares of Wells soared more than 30%.

The bank also said its 2008 acquisition of then-dying Wachovia Bank has "exceeded expectations" and sees charge-offs declining to $3.3 billion.

"The market was prepared for everything but positive surprises," said Ted Weisberg, a NYSE trader with Seaport Securities. "But we certainly got a positive surprise out of Wells Fargo today. It was enough to get the market to get it going."

The Wells Fargo news lifted the entire financial sector, with Citigroup (C), Bank of America (BAC) and JPMorgan Chase & Co. (JPM) all posting double-digit gains out of the gate.

Enthusiasm for banking stocks overshadowed another round of bleak retail sales reports. Analysts polled by Thomson Reuters expected same-store sales to decline by 1% last month amid the deepest recession since World War II.

The biggest drag on the Dow was the retail giant Wal-Mart (WMT), which disappointed the market by saying its same-store sales excluding fuel rose by 1.4% in March, well short of expectations for a 3.2% jump. Shares of the Arkansas-based retailer were down 5%.

Wal-Mart wasn't alone as Costco (COST), Macy's (M), Target (TGT), Limited Brands (LTD), Wet Seal (WTSLA) and Bebe Stores (BEBE) all posted declines in same-store sales for March. On the upside, Buckle (BKE) said same-store sales rose by a better-than-expected 14.7% last month.

But for the most part, retailers were posting positive gains in Thursday trading - with the S&P 500 retailers index up 3%.

On the economic front, the Labor Department said initial jobless claims tumbled by 20,000 last week to 654,000, the 10th straight week above the 600,000 mark. Continuing claims, which are filed by those out of work for more than one week, surged by 95,000 to 5.8 million, the highest level since data began in 1967.

Also, the government said U.S. import prices rose for the first time in eight months thanks to a jump in oil prices. The Labor Department report showed prices were up in March by 0.5%, half as much as economists expected. Excluding oil, import prices tumbled for the eight-straight month amid the global recession.

In the commodity markets, crude oil futures ended higher by $2.64 per barrel, or 5.31%, to $52.00 a barrel. Gold slipped $6.50 per ounce, or 0.73%, to $879.30.

Corporate Movers

Berkshire Hathaway (BRK), billionaire Warren Buffett's holding company, lost its perfect "AAA" credit rating from Moody's, which cited the ongoing recession and heavy investment losses in the insurance sector. Last month Fitch Ratings similarly stripped Berkshire of its "AAA" rating.

Barclays Capital (BCS) announced the sale of its iShares exchange-traded funds to CVC Capital for $4.4 billion.

Morgan Stanley (MS) is expected to take a higher-than-expected first-quarter hit of $1.2 billion to $1.7 billion on a rebound in its bond prices, The Wall Street Journal reported. While rising bond prices are generally thought of as a positive, the write downs add to problems in real-estate and other business lines and could send Morgan to its first back-to-back quarterly losses since it went public 23 years ago, the newspaper reported.

Toyota Motors (TM) plans to overhaul its U.S. operations by combining engineering, manufacturing and sales under one exec, the Journal reported.

General Motors (GM) could receive $100 million to $200 million for its Hummer brand, which is still being bid on by three companies, including private-equity firms and wealthy individuals, Reuters reported. Of the three remaining bidders, which don't include any auto makers, only one is from the U.S., the wire service reported.

Wells Fargo (WFC) is likely to hold onto Evergreen Investments, the money-management unit inherited when Wells acquired Wachovia last year, the New York Post reported. However, Wells Fargo is likely to keep a smaller version of Wachovia's investment bank on hand, the newspaper reported.

World Markets

European indexes were solidly in the green, led by a 1.05% jump for Germany's DAX and a 0.42% rally for France's CAC 40.

Amid news of a Japanese stimulus package, Asian markets rallied overnight. Japan's Nikkei 225 soared 3.74% to 8916.06 and Hong Kong's Hang Seng rose 2.95% to 14901.41.


Market Winners & Losers: Textron, H&R Block
Pulte deal creates home-building giant
Asia Stocks Push Towards 6-Month Highs
Tennessee Livestock Auctions

Asia Stocks Push Towards 6-Month Highs

With most of the world’s markets closed in honor of Good Friday, some Asian markets gained overnight on light volume as the continent’s industrial giants rallied on the announcement of a new Japanese economic stimulus package.

Asian Market Overview –

Japan’s Nikkei 225 benchmark index added 48.05 points on Friday, or 0.54%, to 8964.11 - capping off five straight weeks for the continent’s largest stock market. Stocks in that country are now at six-month highs.

The gains in Japan were led by the nation’s industrial giants and auto makers. Shares of Toyota Motor Corp. (TM) gained 4.6% overnight, while shares of Nissan Motor Co. (NSANY) jumped 4.9% and shares of the maker of Subaru cars - Fuji Heavy Industries – advanced 5.5%.

Japanese conglomerate Sony (SNE), the world’s second-largest electronics maker, gained 4.2%.

Japanese Prime Minister Taro Aso announced on Friday a $150 billion economic package, using primarily borrowed money. It’s the third stimulus package for the world’s second-largest economy – which saw its economy shrink 12.7% on an annualized basis in 2008.

"Our prime objective is to prevent the economy from falling through the floor," Aso said when introducing the package.

According to estimates from the Japanese Government, the $150 billion stimulus package will boost economic growth by 2 percentage points and hopefully will create up to 500,000 jobs a year.

The other Asian markets open for trading Friday rallied overnight. South Korea’s Kospi rose 19.69 points, or 1.5%, to 1336.04 while China’s Shanghai Composite gained 2.7% to 2444.23.

Korea’s market was led higher by the nation’s industrial heavyweight Samsung Electronics, which rose by 4% overnight.

The markets of Hong Kong, Australia, New Zealand, Singapore, India were all closed for Good Friday.


Good Thursday For Stocks: Dow Jumps 246

Market Winners & Losers: Textron, H&R Block

The Dow jumped 246 points on Thursday, continuing its five-week – the first since October 2007. The indices surged 3.6% on average, carried by Wells Fargo as the company looks to post $3 billion in net profit.

Here are Thursday’s winners and losers:

Winners

Textron Inc. (TXT)
Shares of the conglomerate surged 48.9% on Thursday as rumors of a possible buyout continued to drive the stock all week. The stock closed at $13.56, a gain of $4.45 on the day.

Gannett Co. Inc. (GCI)
Shares of GCI moved up 39.4% on Thursday as Ariel Capital Management upped its stake in the publisher. GCI ended the trading day at $3.75, a gain of $1.06 on the day.

Bank of America Corp. (BAC)
BAC shares bounced off reports that bank stress tests won’t likely result in any failures. The stock gained 35.3%, or $2.49, to end the day at $9.55.

Fifth Third Bancorp. (FITB)
Fifth Third followed the sector higher, with shares closing up 33.7%, or 89 cents higher, to settle at $3.53.

Wells Fargo & Co. (WFC)
The company’s surprise preliminary earnings announcement sent shares of WFC up 31.7%, or $4.72, to close the trading week at $19.61.

Losers

H&R Block Inc. (HRB)
With just days left until the tax deadline, HRB shares fell 4.9%, skimming its yearly lows. The stock ended at $15.58, a loss of 80 cents.

Stericycle Inc. (SRCL)
Shares of the bio-med waste disposal company fell 4.2% Thursday, closing at $49.64 a piece – a loss of $2.16 on the day.

Novell Inc. (NOVL)
The rare loser in the software sector, NOVL fell 4.1% to end the week, last trading at $3.73 – a loss of 16 cents on the day.

Wal-Mart Stores Inc. (WMT)
Sales numbers did not meet the Street’s estimates and shares of WMT responded by falling 3.7%. The jumbo-retailer closed at $50.66, down $1.95 on the day.

Abercrombie & Fitch C. (ANF)
The retailer fell on less-than-stellar sales numbers, despite economic data showing a favorable future for the sector as a whole. ANF last traded at $24.76, a loss of 90 cents, or 3.5%.


CEOs Expect Fewer Sales, More Job Cuts
Pulte deal creates home-building giant

Treasury Again Considering TARP Assistance for Life Insurers

A financial industry source close to the TARP process says that the Treasury is again considering federal assistance for life insurance companies.

A separate source, in the insurance industry, said about a half-dozen life insurers with federally-chartered bank subsidiaries have applied for a total of about $20 billion in TARP assistance.

Under the Bush Administration, Treasury had considered providing TARP funds to life insurance companies, but the review was interrupted by the auto industry rescue and the transition to the Obama Administration.

Now the assistance is under review again, by the Obama Treasury team, as the life insurance industry faces increasing financial troubles.

The financial industry source close to the TARP process suggested the new review is in its preliminary stages and that some assistance for life insurers cannot be ruled out.


Madoff’s Mets Tickets Up for Grabs
CEOs Expect Fewer Sales, More Job Cuts

CEOs Expect Fewer Sales, More Job Cuts

The nation’s top executives painted a grim picture of what the economic landscape will look like over the next six months, predicting declines in sales, capital spending and employment and a contraction of the overall U.S. economy, according to a survey released Tuesday.

The latest quarterly Business Roundtable CEO Economic Outlook Survey, which was completed between March 16 and March 27, shows 67% of the country’s leading chief executives expect declines in their companies’ sales over the next six months, compared with 45% in the fourth-quarter 2008 survey. Only 24% said sales will increase, compared with 38% in the last quarter.

The CEOs surveyed also expect more declines in their companies’ capital spending, with 66% predicting a decline compared with 52% last quarter.

In terms of employment, 71% of the executives said they see their companies reducing the number of jobs in the next six months, compared with 60% last quarter. Only 7% believe they will add employees, compared with 9% last quarter.

The results put the CEO Economic Outlook Index at a reading of -5.0 for the first quarter of 2009, compared with a reading of 16.5 in the previous quarter. While the reading declined, it did not decline as sharply as the previous quarter, when the reading had fallen from 78.8, Business Roundtable said. A reading below 50 is consistent with overall economic contraction.

The deterioration in CEO sentiment reflects reduced consumer demand both in the U.S. and abroad, said Harold McGraw III, chairman of Business Roundtable and CEO of The McGraw-Hill Companies, in a conference call.

But McGraw said the latest actions taken by the government -- including the Obama Administration’s stimulus and the trillion-dollar plan developed at G-20 -- are encouraging.

“While recently implemented policies need time to make an impact, they’ve already begun to restore confidence in our market, which is a critical first step,” he said during the call.

The latest survey also shows dimming hope about GDP, which CEOs expect will decline by 1.9% in 2009. Last quarter, they expected GDP to remain flat.

In his conference call, McGraw said that the survey was conducted during a week when the economic news was “very disappointing” and that he’s encouraged by the latest retail sales and housing reports.

“We’ll start to see the pace of decline slowing down and could see positive growth in the fourth quarter,” he said. “I think what we’re seeing now is a move toward a steady improvement.”

Unemployment, which CEOs predict will increase, is something that McGraw said needs to be kept in perspective, given its nature as a lagging indicator.

“I think these are going to be our darkest hours, and I do think we’re going to start to see improvement from here,” he said.

Madoff's Mets Tickets Up for Grabs

New York Mets season ticket holder Bernard L. Madoff is in jail and won’t be able to make it to the team’s home opener on April 13 at brand new Citi Field.

Consequently, the bankruptcy trustee overseeing liquidation of Madoff’s assets is auctioning off two of the disgraced financier’s opening day tickets on EBay (EBAY). At last check, the bid was $800.

The tickets, reportedly great seats right behind home plate, are part of a season ticket package owned by Madoff which were recovered among his assets.

The proceeds of the sale will go toward repaying victims of Madoff’s massive fraud.

The trustee also plans to sell the entire season ticket package online.

In the jargon of the new Citi Field, Madoff’s seats were knows as Delta Club Platinum tickets and have a face value of $80,190. They include a parking pass.

Court papers reveal that Madoff’s Platinum tickets are being swapped for Delta Club Gold tickets located in Section 11 Row 8 Seats 5 and 6 at Citi Field, a few rows behind the Platinum seats, and will include access to the Delta Sky360 club.

The Mets have agreed to refund to the trustee the full amount of the difference between the Platinum seats and the cheaper Gold seats, or about $20,000.

The trustee says the cheaper seats will likely be easier to sell in the current down economic environment.

A hearing for the sale of the season tickets is scheduled take place April 14 in bankruptcy court in New York.

Elsewhere in Madoff-related news, the Securities and Exchange Commission made clear Wednesday that any money recovered from the sale of Madoff's assets will go to his investors rather than to the U.S. Treasury.

The SEC made the statement in papers filed Wednesday in federal court in Manhatan. The commission said some investors who fear otherwise want to force Madoff personally into bankruptcy court to recover assets.

The SEC said bankruptcy proceedings brought about by investors who lost billions of dollars to Madoff would create unnecessary confusion and cause costly and potentially wasteful litigation.

The commission said it believes the court should continue its order prohibiting the filing of a personal bankruptcy case against Madoff.

Jobless Rate Soars to 8.5%; 663,000 Jobs Lost in March

The U.S. economy shed more than 660,000 jobs in the month of March, the Labor Department said Friday, bringing the nation’s unemployment rate to its highest level since the early 1980s.

According to the Labor Department, U.S. employers shed 663,000 jobs in March -- a figure largely in line with what economists were expecting, according to Thomson Reuters.

The job losses brought the nation’s unemployment rate up to 8.5% from 8.1%, the highest unemployment rate since November 1983.

The Labor Department revised upward the number of jobs lost in January by 86,000 -- from 655,000 jobs to 741,000 jobs. February’s job figures were not revised.

Today's jobs report once again reminded both government figures,Wall Street and Main Street that the nation's jobs picture continues to become bleaker and bleaker. Since the recession began in 15 months ago, the U.S. economy has now lost 5.1 million jobs, with 3.3 million jobs lost in the last five months.

Nearly every sector of the economy lost jobs with the exception of education and health care. Even the state and local governments, which traditionally add a modest number of jobs each month, lost 5,000 jobs in March.

"These declines have been widespread across industry sectors, but particularly sharp in manufacturing, construction and temporary-help services," said Keith Hall, commissioner of the Bureau of Labor Statistics.

Of the major industrial sectors, services took the brunt of the pain. According to the Labor Department, the service sector lost 358,000 jobs during the month. Professional and business services positions, often considered attractive high-paying and high-quality jobs, lost 133,000 jobs during the month.

The only sector to add a modest amount of jobs were the education and health sector, where employers added 8,000 jobs during March.

There was also deep deterioration in other indicators of the labor market. According to the BLS, the number of people who were considered "involuntary part-time workers," or people who want full-time jobs but cannot find them for economic reasons, jumped by 423,000 people to 9 million.

Discouraged workers, or people who are not looking for a job because they believe no work exists, rose by 285,000 people from a year ago to 685,000.

What is a somewhat stunning figure, the less-tracked Labor Department's "total unemployment rate," which includes the unemployment rate, marginally-attached workers and involuntarily part-time workers, rose to a seasonally-adjusted rate of 15.6%. That roughly translates as one out of seven U.S. workers are financially hindered by this struggling economy.

"Any which way you slice it, this is a terrible economic report that shows no amelioration of the labor market’s woes," said Dan Greenhaus, with the brokerage firm Miller Tabak.

U.S. hourly earnings rose by 0.2% to $18.50 an hour while the average number of hours worked fell by 0.1 to 33.2 hours - a new record low for that indicator as well.


Mass Layoffs Stack Up as Employers Respond to Downturn
AT&T labor talks down to the wire
Unfazed by Data, Dow Ends Above 8000

Final Score: Our Luxuries Came From a Free Market

You hear a lot of talk these days about mortgaging our children's future. And it's true that we're now spending what we don't have to create a nanny state that we don't need.

But as we worry about the future, we must also remember the past.

We have lived with comfort and luxuries for so long that many of us have forgotten where they come from. We've become so spoiled by ready access to good food, quality heath care, great homes, new cars, terrific colleges that we think of them now as things every American is entitled to.

But they're not entitlements. They are quality products that are a direct byproduct of our free market.

Without a competitive, free market, these products wouldn't be as good or as available as they are. And the creative and constructive powers of the free market itself would not be possible without the enormous sacrifices made over centuries by generations who built upon the freedoms we inherited.

To give up even some of those freedoms now for the sake of the failed promises of the nanny state would be to kill the goose that laid all those golden eggs. It would also dishonor the memory of those who gave all so that we could have so much.

We would not only be mortgaging our children's future, but squandering the legacy of our heroic past.


Tennessee may lift restrictions on wine sales
We Don’t Need ‘More’…We Need ‘Smarter’
TDOT agrees to pay $5.7M for state to replace wetlands
Madoff Saga Shows Flaws in Government’s Priorities

Unfazed by Data, Dow Ends Above 8000

Putting the finishing touches on its best four-week win streak since 1933, the Dow climbed above 8000 on Friday as traders weren't spooked by the latest bleak data that showed the U.S. unemployment rate surged in March to 25-year highs.

Today's Markets

The Dow Jones Industrial Average gained 39.51 points, or 0.50%, to 8017.59, the S&P 500 rose 8.12 points, or 0.97%, to 842.50 and the Nasdaq Composite picked up 19.24 points, or 1.20%, to 1621.87. The consumer-friendly FOX 50 added 4.61 points, or 0.73%, to 632.18.

Led by solid gains for financial stocks such as Morgan Stanley (MS) and a Research in Motion (RIMM) inspired tech rally, the markets proved once again to be resilient in the face of the latest dreary economic reports. The end result sent the Dow to its highest closing level since Feb. 9.

In addition to a new report showing the U.S. lost nearly 700,000 jobs in March, the markets withstood data indicating the U.S. service sector contracted further in March. Yet traders cheered the fact that the latest dreary numbers weren't significantly worse than Wall Street was already bracing for.

“It was more of a confirmation of consensus than it was a shot over the bow. And that was what the market wanted," said Peter Kenny, managing director at Knight Capital Group.

Friday's rally underscored how much Wall Street sentiment has improved in recent weeks amid beaten-down stock prices, new government actions and glimmers of hope emerging the housing and manufacturing sectors of the economy.

“It’s pretty shocking. At this point the bulls have control. They are taking any news and spinning it positively,” said Joe Saluzzi, co-manager of trading at Themis Trading in Chatham, N.J. “But I personally think the rally is bumping up against some serious resistance. People have to be careful. They are getting a little too bullish.”

It doesn't get much more bullish than the last four weeks on Wall Street. The Dow has surged more than 21% over that span, its best four-week win streak since soaring 31% in 1933.

“I think the market is really speaking to a degree of confidence in the overall number of projects, initiatives and coordination” taken by the government, said Kenny, citing the government's "five-headed" approach rather than any single program.

More than two-thirds of the Dow's 30 members closed in positive territory on Friday, led by financial giants Bank of America (BAC), Citigroup (C) and JPMorgan Chase (JPM). Drug makers Merck (MRK), Pfizer (PFE) and Johnson & Johnson (JNJ) took tumbles.

Boosted by Research in Motion's better-than-expectedquarterly results and outlook, the Nasdaq Composite rose more than 1%, pushing further into the green for 2009.

Markets Withstand Jobs Report

Faced with plunging profits amid the deepening recession, U.S. employers slashed 663,000 jobs in March, according to a new Labor Department report that nearly matched estimates from economists. The latest carnage on the labor front sent the unemployment rate from 8.1% to 8.5% -- the highest level in 25 years.

While the February unemployment figures were left unchanged -- a positive development for the markets -- the government now says employers slashed 741,000 jobs in January, the biggest drop since 1939. All told, the U.S. has lost 5.1 million jobs since the recession began in December 2007, with most of those job losses occurring in the past several months.

In the commodity markets, oil inched lower, ending 13 cents, or 0.25%, lower at $52.51 per barrel. Gold sank to two-week lows, falling $11.80 per ounce, or 1.3%, to $895.60.

Corporate Movers

Google (GOOG) is in talks to acquire micro-blogging service Twitter, according to TechCrunch. The search giant is reportedly considering paying in cash or stock or a combination of the two. The website also reported that Google and Twitter are in talks about developing a real-time search engine.

Bank of America's (BAC) board of directors signed off on $713 million in dividend payments to the U.S. government under its bailout plan.

Blockbuster (BBI) reached a deal to refinance a $250 million revolving credit facility as part of the retailer’s efforts to restructure its debt load. The move extends the term of the facility to Sept. 2010 and cuts the amount owed from $350 million. Blockbuster’s lenders will also waive any default stemming from a recent going concern notice.

Micron (MU) posted a worse-than-expected adjusted-loss of 82 cents per share as the chip maker’s revenue plunged 27%. Analysts had expected a loss of just 62 cents per share.

Data Dump

The Institute for Supply Management said its non-manufacturing index tumbled to a 40.8 reading in March, down from 41.6 the month before. Economists predicted U.S. service-sector activity would be flat from February. Either way, a sub-50 reading indicates continued contraction.

Global Markets

In Europe, London's FTSE 100 fell 2.31% to 4029.67 while Germany's DAX rose 0.07% to 4384.99 and the Paris' CAC 40 sank 1.11% to 2958.74.

In Asia, Japan's Nikkei 225 gained 0.34% to 8749.84 while Hong Kong's Hang Seng rose 0.16% to 14545.69. China's Shanghai Composite fell by 0.23% to 2419.78.


Post-Fed Blues: Banks Lead Selloff
FedEx to cut 1,000 jobs, $1 billion in expenses
Four in a Row for Stocks

Al Lewis: Brother, Can You Spare A House?

Michael Sichenzia spent four years in prison for mortgage frauds he committed in the late 1980s as a home builder in Suffolk County, N.Y.

Today, he's president of Dynamic Consulting Enterprises, a Deerfield Beach, Fla., company that helps troubled homeowners renegotiate loans with banks.

"I get a lot of people who come in here and say, "I don't want to pay what I owe,'" said Sichenzia, 49.
Banks, confronting unprecedented mortgage defaults and foreclosures, are increasingly willing to listen.

Rewarding failure, after all, is what they do -- whether it's for their top executives who've helped destroy the global economy, or just some guy in South Florida who bought way too much condo.

Homeowners living on the edge can call their bank or mortgage-servicing company and beg for mercy. But it helps to miss a couple of payments to really get a financial institution's attention.

"You certainly are going to get more traction... if you are behind in your payments," said Tim Mackey, an attorney who helps people with loan modifications in Arizona.

It typically takes Mackey's firm 50 to 60 hours to get the job done because most loan modification departments are thinly staffed.

Eventually, though, with a lot of persistence, troubled homeowners may get their loan re-amortized at 40 years or their interest rate dropped as low as 4%, significantly reducing their monthly payments.

President Barack Obama's Homeowners Affordability and Stability Plan will help millions more people do this.
I guess sometimes, it pays to not pay the mortgage. And what's in it for responsible homeowners who keep making their payments? Not a lower payment monthly payment. But maybe the slim hope that their property values will stop plunging after their deadbeat neighbors get a loan modification instead of a foreclosure notice.

Even more twisted in the loan modification universe is a polar shift in the economic incentive to cheat on a financial statement.

Not long ago, borrowers would exaggerate their incomes and the value of their assets to get financed. Now, however, they can get a better deal by exaggerating their poverty.

It's kind of like a liar loan in reverse.

"Whenever there's this much money in play, there will be attempts at fraud," said Jame Cofran, who heads the global banking and financial markets group at CGI Group Inc.

Many financial institutions are scantly prepared for the rising tide of loan modification requests. They did a sloppy job of collecting information when they made the loans in the boom, and they may do no better as they modify these loans in the bust.

Some institutions are so difficult to deal with, Sichenzia said he wonders whether they even care. Why deal with troubled borrowers when it's increasingly likely that the federal government will just buy up all the bad loans, anyway?

"It's a poker game, and they're holding," he said. "Why not just wait and dump it all on the government?"

Nevertheless, CGI, an information technology and business process service company, is rolling out systems to help financial institutions deal with the thickening onslaught of loan modification requests.

By electronically verifying income statements, tax returns, credit reports and other data, and organizing it in a computer file, CGI hopes to help banks avoid making loan modifications to people who exaggerate their financial hardships. It may be 2009, but many mortgage makers are still using paper files, leaving plenty of cracks to slip through, Cofran said.

Sichenzia said he will have no part of a loan modification unless it's for a client with a real hardship.

He said his company, with a staff of 25, thoroughly investigates its clients' claims and gets them to sign a notarized affidavit.

"I don't want some bank to come back and say to me, "Hey, you helped this person commit fraud,'" he said.
He's done enough time, already. Besides, there are too many people traipsing through his office who really do need a loan modification. He charges a flat fee of $550 for his service. Sometimes, he works free.

Many of his clients, after all, are elderly or disabled, and were clearly the targets of predatory lending practices. But now they don't have enough income to qualify for a loan modification, Sichenzia said.

"They are going to lose their homes," he said. "I see that every week, here. And it kills me."

--(Al's Emporium, written by Dow Jones Newswires columnist Al Lewis, offers commentary and analysis on a wide range of business subjects through an unconventional perspective. The column is published each Tuesday and Thursday at 9 a.m. ET. He can be reached at 201-938-5266 or by email at al.lewis@dowjones.com or on his blog, tellittoal.com.)


Business briefs: Mortgage rates are lowest on record
Obama to Announce More Aid for Small Businesses
GMAC resumes car loans to riskier borrowers

Week Ahead: Focus Shifts Back to Wall Street

For the first time in weeks, investors’ focus will shift away from Washington and back to Wall Street, where first quarter earnings reports will determine whether the market will continue its upward surge.

Dow Jones Industrial average member Alcoa (AA) kicks off the proceedings on Tuesday.

Analysts earlier this year had predicted a 12% decline in first-quarter profits. But economic conditions have worsened considerably, and that figure has risen to 36% according to Thomson Reuters. Make that 20%, if financial stocks are removed -- cold comfort.

Major retailers are expected to report a small increase in March same-store sales Thursday. Same-store sales likely grew 0.8% overall in March, compared with a decline of 0.7% a year earlier, according to Thomson Reuters.

If Wal-Mart (WMT), the world’s largest retailer, is taken out, same-store sales were expected to fall 3.2% for the month. Department stores are expected to report a staggering 21% drop. Discount stores, which have benefited from the recession, are likely to post a 2.6% increase.

Other companies reporting next week: housewares retailer Bed Bath & Beyond (BBBY), restaurant chain Ruby Tuesday (RT) and fertilizer company Mosaic (MOS) on Tuesday; and liquor company Constellation Brands (STZ) and discount retailer Family Dollar Stores (FDO) on Wednesday. Chevron (CVX), the second-largest U.S. oil company, will provide an interim update Thursday.

The Communications Workers of America board approved a strike by 125,000 workers in five AT&T (T) operations if new contracts are not reached before the current ones expire Saturday night. A major issue is whether workers will bear more of the cost of their health-care benefits.

The Securities and Exchange Commission will take up the issue of short selling Wednesday when the commissioners consider proposals to reinstate the uptick rule. The rule, which the SEC did away with in 2007, prevented traders from doing a short sale unless the price of the stock from the most recent trade was higher than the previous price.

On Monday, the private Conference Board issues its March employment trends index and the Chicago Federal Reserve Bank reports on regional manufacturing activity.

The government will detail February consumer credit Tuesday and February wholesale inventories Wednesday. The Federal Open Market Committee releases the minutes of its last meeting Tuesday.

The U.S. trade balance for February, to be released Thursday, is likely to be little changed from the month before. The deficit has been shrinking since last summer though it contracted sharply in November.

The markets are closed next Friday for the Good Friday holiday.


Week Ahead: All Eyes on Washington
Grocers ask shoppers to support wine sales
Bernard Madoff says he is ashamed

Market Winners & Losers: Vornado, Humana

Despite unemployment numbers that have not been seen in more than 25 years, the major indices rallied for a fourth day in a row closing up 0.9% to finish the first week of trading in the second quarter.

Here are Friday’s winners and losers:

Winners:

Kimco Realty Corp. (KIM)

News that it plans to sell upwards of $70 million in common shares was able to outweigh the cuts in production it announced for the coming quarter. It closed at up 25.5% to $9.40, a gain of $1.91.

Principal Financial Group Inc. (PFG)

The insurer gained 19.9% as it looked to be on the receiving end of government cash. It closed at $10.53, up $1.75.

International Game Technology (IGT)

This stock moved up in the mixed sector, gaining 16.4% to end the week. IGT finished the session at $11.66, up $1.64.

Vornado Realty Trust (VNO)

Following sector trends, the REIT continues to rise from yearly lows, closing up 13.2%. It ended the week at $40.66, a gain of $4.75.

Host Hotels & Resorts Inc. (HST)

This is another stock bouncing off its yearly lows to start the second quarter. It gained 13.1% Friday. The REIT closed at $5.01, up 58 cents.

Losers:

Akamai Technologies Inc. (AKAM)

The computer service company dropped 6.9% after an analyst downgrade. It closed the week at $20.06, a loss of $1.49.

Tenet Healthcare Corp. (THC)

Talks with Columbia/HCA Healthcare were stalled, moving the stock toward its yearly lows. THC closed down 6.7% to $1.11, a loss of 8 cents.

Humana Inc. (HUM)

Possible overexposure to Medicare could cause massive problems for the insurer. It dropped sharply from its opening price. HUM last traded down 5.7% to $25.46, a loss of $1.54.

Bristol-Myers Squibb Co. (BMY)

This stock dropped 5.4% as buyout talks for the pharmaceutical company have ceased. BMY closed at $20.17, down $1.16.

Newmont Mining Corp. (NEM)

Reacting to lower commodity prices today, NEM fell 5.1% to end the week. It closed session at $43.89, down $2.35.


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Accounting Rule Makers Soften Mark-to-Market's Bite

Accounting rule makers approved altering controversial mark-to-market accounting guidelines on Thursday to give companies more flexibility when they value assets.

The Financial Accounting Standards Board said it will give companies greater latitude to determine the “fair value” of assets. Mark-to-market had been widely criticized in recent months by the financial-services industry and some market observers who said it contributed to the financial and credit meltdown last fall.

FASB spokesman Neal McGarity maintained that the board had been “responsive” to concerns, and said “our decisions rarely please everyone, but we believe we have helped market participants… with these actions.”

FASB will now let companies use “significant judgment” to value assets when those assets are trading in inactive markets under distressed circumstances.

Also, the standards have been relaxed by which companies have to take impairment charges when they take losses on their investments, particularly in cases where they plan to hold those assets to maturity or where they don’t have to sell them quickly.

Companies will now have to disclose assets valued at fair value quarterly, rather than on the current annual basis.

The changes will take effect for the second quarter of the year, though companies are allowed to adopt them for the first quarter if they have the means to do so. Retroactive changes won’t be allowed.

In the past, MTM meant that companies had to value assets based on the last trading price. In distressed markets, particularly where assets were not trading or there were just a few trades at fire-sale prices, MTM meant that those assets would have to be priced at very low levels.

Companies argued that this wasn’t a good representation of the value, particularly for assets that were being held to maturity. However, supporters of the rules maintained that they were necessary for transparency and accuracy.

FASB had already issued an opinion last fall saying that companies didn’t have to use “fire-sale” prices -- ultra-low prices usually resulting from forces sales -- when valuing assets. Still, critics kept up the pressure, leading to Thursday’s changes.

“I applaud the very important actions taken by FASB today, which has made significant progress toward addressing inaccurate asset valuations in the markets,” House Financial Service Committee Chairman Barney Frank (D-Mass.) said in a statement. “The FASB believes the rule can be applied more fairly and take into account the currently dysfunctional state of some markets. The integrity of the standard-setting process is preserved, while avoiding the pro-cyclical effects of improper valuation practices.”

Still, industry support for the changes was tepid.

“Today’s decision should improve information for investors by providing more accurate estimates of market values,” said Edward Yingling, president and CEO of the American Bankers Association, in a statement. But the ABA opined that FASB “has not done enough to fully repair the accounting rules for securities classified as ‘held to maturity.’”

FASB said it expects to be able to issue the final language of the changes next week.


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U.S. Factory Orders Rebound From January Decline

WASHINGTON--New orders received by U.S. factories rose in February, government data showed on Thursday, breaking a six-month streak of declines and bolstering hopes the economy may be beginning to crawl out of the depths of a recession.

The Commerce Department said factory orders rose 1.8% in February after a revised 3.5% drop in January, initially reported as a 1.9% decline.

Economists polled by Reuters had expected a February increase of 1.5%.

Orders for non-defense capital goods excluding aircraft, seen as a measure of business confidence, jumped 7.1% after a steep 12.3% drop in January.


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Feds Seize Madoff's $9M Mansion to Recoup Funds for Victims

Federal authorities have seized jailed Ponzi scheme mastermind Bernard Madoff's $9 million Florida mansion in an effort to recoup funds for victims of the disgraced financiers gigantic fraud.

Also seized by U.S. Marshals in Florida were an antique yacht and a smaller boat.

All of the property will be auctioned off and the proceeds dispersed among Madoff’s thousands of victims.

A U.S. Marshals spokesman said the 8,753-square-foot, five-bedroom mansion was taken over by the government late Wednesday afternoon, a few hours after marshals seized the boats.

Marshals spent several hours filming and photographing items in the house that might be removed at some point.

The mansion was unoccupied when federal authorities arrived.

Palm Beach County property records show the mansion was purchased in 1994 under Madoff’s wife Ruth’s name for $3.8 million, the Associated Press reported. The 2008 property tax bill was $157,298.

The spokesman said the estate would be monitored and is no longer considered Madoff's property.

Madoff’s attorney Ira Sorkin told reporters he is not taking issue with the seizure of Madoff’s Florida properties.

Madoff, 70, is in jail in New York awaiting sentencing after he pleaded guilty to swindling billions from investors in what could be the biggest scam in Wall Street history. He faces up to 150 years behind bars.

Meanwhile, the U.S. Justice Department has stated its objection to the release of e-mails sent by victims of Madoff to a federal judge who presided over the hearing at which Madoff pleaded guilty.

According to court documents, television networks ABC and NBC are seeking the release of the e-mails, which victims sent to District Judge Denny Chin ahead of the hearing.

Most of the e-mails urge Chin to throw the book at Madoff and to make certain as much of Madoff’s riches as possible are returned to his victims.

All of the e-mails have been released, but many of the names of the victims have been redacted because the writers don’t want their names made public.

The media outlets want the information to be released without the redactions, according to the court papers.


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Global M&A Activity Falls 32% in First Quarter

Global merger activity slowed in the first quarter 2009, dropping 32% to total $561.1 billion, according to Dealogic.

The drop might not come as a surprise, as the economic turmoil drags on and credit markets remain solidly frozen. The number of deals were down 29% to 7,554 for the quarter.

Targeted M&A activity in the U.S. fell 42% to $216.4 billion for the quarter -- and even then, it could have been lower if it hadn't been helped by the U.S. government's bailout program. The finance industry led the pack with $132.4 billion -- getting a sizable boost from the government’s $25 billion cash injection in Citigroup (C).

Health care M&A activity accounted for 23% of the global total bringing in $128.1 billion.

A key contributor was Pfizer’s (PFE)deal to acquire the drugmaker Wyeth for $68 billion. The New York-based company issued more than $13 billion in debt to help fund the purchase. The deal valued Wyeth shares at $50.19 each and Pfizer agreed to pay $33 in cash and 0.985 share in Pfizer stock for each Wyeth share.

Activity in Europe paints an even bleaker picture, with volume down 42%, totaling $181.6 billion, from 314.3 billion in the same quarter a year before.

“When the economy starts to rebound, activity will be the first thing to pick up,” said Marc Pado, U.S. market strategist at Cantor Fitzgerald.

According to Pado, once capacity utilization hits about 90%, merger activity will pick up -- and it's just around 70% right now.

“Capacity utilization over 90% means you have to expand and acquisition is a lot cheaper than growing organically.”

Initial public offerings are also experiencing a drought with only two successful offering in the past eight months. Mead Johnson (MJN) spun off parent company Bristol Myers Squibb (BMY) after raising more than $700 million. Grand Canyon Education (LOPE) made its public debut in November, the first such offering since August.

Credit markets, the backbone of M&A activity have remained relatively solid, making it harder to complete deals. Companies, even those with high credit ratings, are having a hard time securing credit and finding buyers for their debt to muster up cash.

Pado also pointed to the stock’s low valuation as putting pressure on merger activity, saying when markets go down companies don’t like to use stock as capital to purchase.

"When you are using your stock in a mergers for capital and its been cut down 50% and you feel your company is worth more than that you won’t want to use that,” he said.


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Market Winners & Losers: JDS Uniphase, Apollo Group

April couldn’t the fool the start of Q2 as the markets rebounded from early losses to finish the day up 1.7% on average.

Here are Wednesday’s winners and losers:

Winners

JDS Uniphase Corp. (JDSU)
JDSU named a new president to its Communications Test & Measurement division and shares gained on the news. The stock finished the day up 15.4%, or 50 cents, closing at $3.75 a share.

Huntington Bancshares Inc. (HBAN)
After reworking more than $600 million subprime cash from mortgage lender Franklin Credit Management,the stock moved up 15%. Shares ended the session at $1.91, up 25 cents on the day.

Wyndham Worldwide Corp. (WYN)
Whyndham Worldwide’s vacation exchange company RCI celebrated its 35th anniversary Wednesday and shares responded by jumping 13.1%, or 55 cents, to close at $4.75 a share.

Textron Inc. (TXT)
The conglomerate continued its move to the upside, gaining 12.4%, after reaffirming its full-year cash outlook. TXT closed at $6.45, up 71 cents on the day.

Sprint Nextel Corp. (S)
News that many consumers will be able to integrate their cable and internet with sprint phone service helped boost Sprint shares by 11.2%. The stock finished the day at $3.97, a gain of 40 cents.

Losers

Apollo Group Inc. (APOL)
A warning about a surge in bad debt expenses sent the stock plunging 15.2% on Wednesday. Shares ended the day at $66.46 a piece, down $11.87 on the day.

Celgene Corp. (CELG)
Shares of the biotech company fell 13.4% as it offered a disappointing earnings outlook. CELG closed at $38.47, a loss of $5.93 on the day.

Fidelity National Information Services Inc. (FIS)
Apparently the news that FIS was buying Metavante Technologies did not sit well investors. FIS shares lost 7.3%, or $1.32, on Wednesday to close at $16.88.

Moody’s Corp. (MCO)
The ratings agency got hit hard on Wednesday, with shares losing 6%, or $1.38, to close at $21.54 a piece.

Lennar Corp. (LEN)
The home builder continued its downward trend, falling another 5.3% on Wednesday. Shares ended the session at $7.11, a loss of 40 cents on the day.


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Market Winners & Losers: Dynegy, AIG
Walgreen profits decline 7%

Market Winners & Losers: Apollo Group, Lincoln National

The autos took a turn for the worst on Monday, and the markets responded accordingly. The major indices fell 3.2% while the dollar moved stronger to start the week.

Here are Monday’s winners and losers:

Winners

Fifth Third Bancorp (FITB)
News that the regional is selling its majority stake in its payment-processing unit sent the stock up 5.5%, or 13 cents, to end the day at $2.48 a share.

Apollo Group Inc. (APOL)
The stock dropped sharply after opening, only to rally 3% later ahead of its earnings release on Tuesday. Shares ended the day at $78.94 a piece, a gain of $2.29 on the day.

Allergan Inc. (AGN)
Continued rumors of a possible buyout by GlaxoSmithKline sent the stock up another 2.9%. The stock ended the session at $48.36, up $1.35 on the day.

Gilead Sciences Inc. (GILD)
Another biotech that made money Monday, Gilead saw its shares surge 2.8%, or $1.25, to $48.36 as a hypertension drug moved further into clinical testing.

Abbot Laboratories (ABT)
With a new drug-coated stent on the way, shares of Abbot moving the stock up 2.8%. It ended Monday at $47.89 a gain of $1.29.

Losers

Lincoln National Corp. (LNC)
A downgrade by Credit Suisse and its withdrawal from an FDIC-backed loan program helped sink the stock 38.2% to start the week. Shares closed at $6.41, a loss of $3.96 on the day.

Manitowoc Co. (MTW)
The crane manufacturer’s gloomy earnings outlook sent shares spiraling 33.4% lower on Monday. MTW shares ended at $3.07, a loss of $1.54 on the day.

General Motors Corp. (GM)
The automaker got a less-than-courteous offer from the government to shape up or ship out, moving shares 25.4% to the downside. The stock closed at $2.70, a loss of 92 cents on the day.

Principal Financial Group Inc. (PFG)
Following sector trends, the stock finished down sharply, losing 22.5%. PFG last traded at $7.89, a loss of $2.32 on the day.

Capital One Financial (COF)
Another stock following sector trends, COF dropped 20.2% on Monday, closing at $11.35 – a loss of $2.88 a share.


Tax Tips: Loss on home sale can’t be deducted
Market Winners & Losers: Dynegy, AIG