Updated with UPS guidance, economist comment on jobs data
NEW YORK (
) -- Here are the top stock market headlines for the morning of Friday, Jan. 8, 2010.
Friday's Early Headlines
- Economy Loses 85,000 Jobs in December -- The Labor Department said that the U.S. economy lost 85,000 jobs last month, worse than many economists had predicted, while the unemployment rate held steady at 10%. The November payrolls data was revised from a loss of 11,000 jobs to an addition of 4,000 jobs, the first rise in employment in two years. October's payrolls number was revised down to a loss of 127,000 from 111,000. "November payrolls looked too good to be true relative to ADP and other indicators so this is a correction," said Ian Shepherdson, chief economist with High Frequency Economics, in an email. "The underlying trend undoubtedly continues to improve and payrolls will be positive by February, not least because Census hiring will start to rise."
- Best Buy December Revenue Up, Reaffirms 2010 Guidance -- Best Buy (BBY) - Get Report said Friday that total revenue jumped 13% in December to $8.5 billion as same-store sales rose 8.2%. The electronics retailer also maintained its 2010 annual guidance. In December, Best Buy raised its earnings guidance to a range of $3 to $3.15 a share, up from $2.70 to $3 previously. It also said it expects full-year sales of $49 billion to $49.5 billion, up from $48 billion to $49 billion. Analysts expect full-year earnings of $3.10 a share on sales of $49.1 billion, according to Thomson Reuters.
- UPS Raises Guidance, Cuts Jobs -- UPS (UPS) - Get Report said that when it reports fourth-quarter earnings next month, it now expects a profit of 73 cents to 75 cents a share, up from its previous estimate of 58 cents to 65 cents a share. Analysts are forecasting a profit of 63 cents a share, according to Thomson Reuters. However, UPS also said it will cut 1,800 management and administrative positions as part of a restructuring aimed at streamlining its U.S. package segment.
- Bank of America Doles Out 2007-Style Bonuses -- Bank of America's (BAC) - Get Report investment bankers are likely to get bonuses that are close to 2007 levels as the bank tries to keep employees following its takeover of Merrill Lynch, The Wall Street Journal reports, citing people familiar with the situation. Bank of America bankers are expected to get bonuses equal to what they got in 2007, but the overall average is likely to be "somewhat" lower, a person told the Journal. The year 2007 wasn't a record year for bonuses at the combined firm, this person added
- Fed Case Boosted by AIG Emails -- The New York Federal Reserve Bank urged American International Group (AIG) - Get Report in late 2008 to limit disclosures about its payments to banks after getting a $180 billion government bailout. Emails show the New York Fed persuaded AIG not to disclose that it was paying banks 100 cents on the dollar on credit default swaps they bought from the giant insurer.
- Saab Bidders Get in Before Deadline -- Saab received a revised bid from Dutch luxury carmaker Spyker Thursday while two other groups reportedly submitted bids for the General Motors unit just before a deadline. In a statement, GM said it continues to "receive and evaluate proposals" for Saab and won't comments on discussions until a decision is reached. The deadline to submit bids was 5 p.m. EST on Thursday. Formula One tycoon Bernie Ecclestone and partner Genii Capital made a last-ditch cash offer for for Saab, Bloomberg reports. A third group of investors, which includes former MAN CEO Hakan Samuelsson, also put in a bid, a Swedish daily newspaper says
-- Written by Robert Holmes in Boston
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