US-BUSINESS Summary
Stocks rally on data; Cisco earnings lift techs
NEW YORK - U.S. stocks gained sharply on Thursday after an expansion in business productivity and a fall in jobless claims boosted investor confidence about the economy, while Cisco led gains in tech shares. U.S. non-farm productivity rose more than expected in the third quarter as companies squeezed more output from a smaller pool of labor, while fewer U.S. workers filed new jobless insurance claims than forecast last week -- hitting a 10-month low.
New arrests in Galleon insider-trading case
NEW YORK - Nine more people have been arrested in the Galleon Group insider-trading scandal, bringing to 15 the number charged in the biggest hedge fund-related case in history. The new arrests include Wall Street traders, lawyers and hedge fund managers, according to complaints filed in federal court in New York on Thursday,
Productivity surge signals job growth to follow
WASHINGTON - U.S. business productivity grew at its fastest clip in six years in the third quarter and new claims for jobless aid fell to a 10-month low last week, suggesting the labor market may be starting to bottom out. The Labor Department said on Thursday that productivity surged at a 9.5 percent annual rate, the quickest pace since the third quarter of 2003, as companies squeezed more output from a smaller pool of labor to hold the line on costs.
October retail sales fall short for many
NEW YORK - U.S. retail chains reported October sales that rebounded from the lows of a year ago but many failed to surpass Wall Street's boosted expectations as consumers spend selectively headed into the holiday season. Retailers including warehouse club operator Costco Wholesale Corp <COST.O> and apparel company Gap Inc <GPS.N> posted October sales at stores open at least a year, or same-store sales, that were better than analysts expected.
RIM stock climbs on share buyback
TORONTO - BlackBerry maker Research In Motion Ltd <RIM.TO> <RIMM.O> announced a share buyback worth up to $1.2 billion on Thursday, but analysts said competitive concerns will continue to exert pressure on the company's stock. RIM's shares climbed 3.2 percent after the Waterloo, company said it would repurchase up to 21 million shares, or 3.6 percent of outstanding common shares on Nasdaq. RIM hasn't bought back any stock in the last year.
Thomson Reuters CEO says worst over
NEW YORK - Thomson Reuters Corp <TRI.TO> <TRI.N> reported that quarterly revenue in its markets and legal businesses fell as customers cut costs in the wake of the financial crisis, but its CEO said the worst was over. The news and financial data publisher, whose shares fell about 1 percent, said on Thursday that third-quarter profit beat Wall Street estimates, helped by foreign currency rates and cost savings.
ECB takes first step towards exit, more due in Dec
FRANKFURT - The European Central Bank took its first step toward unwinding its extraordinary support measures for the euro zone economy on Thursday by signaling one-year loans to banks will not be repeated next year. The ECB kept its main interest rate on hold at 1 percent for the sixth month in a row and ECB President Jean-Claude Trichet promised to announce a decision on the rest of the central bank's policy of flooding markets with cheap and abundant funds in December.
Sara Lee raises forecast, shares hit year high
CHICAGO - Sara Lee Corp <SLE.N> posted higher-than-expected quarterly earnings and raised its full-year earnings forecast on Thursday, and its shares rose 3.5 percent. The company also said it will cut prices and spend more to market selected products, including in the bakery and coffee segments, as commodity prices come down and retail store brands battle with food manufacturers for market share.
Mortgage rates drop below 5 percent: Freddie Mac
NEW YORK - U.S. mortgage rates fell below 5 percent for the first time in three weeks, a key level that may boost home loan demand and help the hard-hit housing market recover, a closely watched mortgage survey showed Thursday. Interest rates on U.S. 30-year fixed-rate mortgages averaged 4.98 percent for the week ending November 5, down from the previous week's 5.03 percent, according to a survey released on Thursday by home funding company Freddie Mac <FRE.P> <FRE.N>.
Oil hovers near $80; demand outlook uncertain
LONDON - Oil hovered above $80 a barrel after a steep decline in U.S. crude inventories sent prices up 1 percent the previous day, as doubts about the pace of economic recovery in the world's largest fuel consumer tempered the rally. U.S. crude for December fell 18 cents to $80.22 by 1615 GMT, after hitting a high of $81 a barrel the previous day after news that U.S. crude inventories fell by a larger-than-expected 4 million barrels.