PPI, Best Buy: Tuesday's Headlines

(Updated with Best Buy margin comments, PPI data, New York Fed manufacturing index.)

NEW YORK (TheStreet) -- Here are the top stock market headlines for the morning of Tuesday, Dec. 15, 2009.

Tuesday's Early Headlines

• Wells Fargo Next in Line to Repay TARP Funds -- Wells Fargo (WFC) late Monday said it would repay the government's $25 billion preferred equity investment after completing a $10.4 billion stock offering, becoming the last of the major banks to repay the U.S. bailout from the height of the financial crisis. Wells Fargo said it will raise $1.35 billion by issuing common stock, and it also intends to raise another $1.5 billion by selling assets agreed to by the Federal Reserve. The announcement came hours after Citigroup (C) said it would repay $20 billion in bailout funds.
• Wholesale Price Inflation Up, Manufacturing Down -- The Labor Department said its producer price index rose 1.8% in November, greater than the 0.8% rise economists had predicted. The core number, which excludes food and energy, ticked 0.5% higher, more than doubling expectations. Meanwhile, the New York Federal Reserve said its Empire State manufacturing index sank to a reading of 2.55 this month, down from 23.51 in November and well below the consensus target of 24.
• Airlines Could Lose $56 Billion Next Year -- The International Air Transport Association revised its financial outlook for 2010 and now expects airlines to report $5.6 billion in losses as compared to earlier loss forecasts of $3.8 billion. IATA said in 2010 air passenger traffic will return to its 2007 peak and air cargo demand also would rebound as depleted inventories are restocked. However, the authority expects high fuel costs and low yields will likely contribute to mounting losses.
• Fed's Policy-Making Arm Begins Two-Day Meeting on Interest Rates -- The Federal Open Market Committee begins a two-day meeting on interest rates Tuesday morning, with a decision expected Wednesday at 2:15 p.m. EST. Economists do not expect the Fed will raise interest rates from the target range of zero to 0.25%, as recent comments from Fed officials indicate that the "extended period" phrase in the Fed's statement will not yet be removed.
• Goldman Sachs Faces Lawsuit Over "Improper" Bonus Payments -- Reuters reports that an institutional investor is suing Goldman Sachs (GS), claiming the firm is preparing to pay out improper bonuses. The lawsuit, filed with the New York Supreme Court by the Security Police and Fire Professionals of America Retirement Fund, accuses Goldman executives, including CEO Lloyd Blankfein, of "blindly" rewarding executives "for corporate performance that has absolutely nothing to do with the skill of the company's employees." The lawsuit states that Goldman is estimated to issue payouts in excess of $22 billion, the Reuters report said.
• Google Talks to T-Mobile About Nexus One Phone -- The Wall Street Journal reports that Google (GOOG) is in talks with Deutsche Telekom's (DT) T-Mobile USA to sell its upcoming phone at a discounted price for the carrier's customers. The Internet search giant also is holding discussions with other wireless carriers on similar lines, the report said, citing sources familiar with the development. According to the deal, Google would offer the phone, dubbed the Nexus One, at a cheaper price to T-Mobile carrier's subscribers because T-Mobile would pay Google for helping sign up a new customer.