US-BUSINESS Summary
Stocks rally on economic data, Cisco
NEW YORK - U.S. stocks jumped on Thursday, pushing the S&P 500 up for a fourth day, as economic data boosted confidence in the recovery and strong results from Cisco Systems <CSCO.O> suggested a rebound in technology spending. The market's advance was broad-based, and the Dow ended above 10,000 for the first time in two weeks.
Insider trading probe ensnares 14 more
NEW YORK - Fourteen people were charged with fraud and conspiracy in a dramatic widening of an insider trading scandal that has ensnared hedge fund managers, top Silicon Valley executives and a bevy of white-shoe advisers. In complaints that read like scripts for the TV series "The Sopranos," prosecutors alleged suspects dropped off bags full of cash, used prepaid cellphones to dodge wiretaps, and used nicknames such as "the Greek."
Sparring over evidence at Wall Streeters trial
NEW YORK - In closing arguments in the trial of the first high-profile Wall Streeters on fraud charges stemming from the financial crisis, a U.S. prosecutor said two hedge fund managers told "black and white lies," but a defense lawyer attacked the government for "misleading" the jury. U.S. prosecutor Ilene Jaroslaw said on Thursday former Bear Stearns hedge fund managers Ralph Cioffi and Matthew Tannin lied to investors in the early months of 2007 about the health of their funds even though they were seeing some of the worst market conditions ever.
Fannie Mae posts $18.9 billion Q3 loss, taps Treasury
NEW YORK - Fannie Mae, the largest provider of funding for U.S. home loans, said on Thursday bad mortgages and a federal foreclosure prevention program left it with a $18.9 billion loss, forcing it to tap the Treasury again to plug a hole in its net worth. Fannie Mae <FNM.P> <FNM.N> , seized by the government last year, said the quarterly loss stemmed from $22 billion in credit-related expenses. These included charges on mortgages it bought out of securities as it modified loans under President Barack Obama's foreclosure prevention plan.
Productivity surges, job growth should 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.
Starbucks beats view, raises targets
LOS ANGELES - Starbucks Corp <SBUX.O> raised its financial forecasts for 2010 in the latest sign a year-long turnaround effort is boosting margins and putting it back on track for growth, sending shares up 4 percent. The company, which has been slashing its outlets, laying people off and reducing costs, raised its target for fiscal 2010 earnings -- excluding items -- to growth of 15 percent to 20 percent from a previously forecast growth range of 13 percent to 18 percent.
BofA: Credit card loss rate could have peaked in Q3
CHARLOTTE, North Carolina - Bank of America Corp's <BAC.N> credit card loss rate may have peaked in the third quarter, but it will remain elevated for a "substantial number of quarters," the bank's head of consumer banking said on Thursday. Bank of America, the largest U.S. bank, has shown the highest credit card loss rate among the biggest lenders, given its high exposure to subprime borrowers. Last month, it posted a $1 billion quarterly loss.
Retail sales suggest tepid holiday season
NEW YORK - More than half of U.S. retail chains posted October sales that fell short of Wall Street's heightened expectations, raising doubts about a widespread recovery for the holiday season. Department store chains and teen retailers in particular disappointed investor expectations, while such disparate companies as apparel retailer Gap <GPS.N> and luxury store chain Saks Inc <SKS.N> performed better than hoped as consumers return to spending selectively.
SEC official worried about "naked access"
NEW YORK access," Securities and Exchange Commission Commissioner Elisse Walter told Reuters.
Fed's balance sheet expands in latest week
NEW YORK - The U.S. Federal Reserve's balance sheet grew slightly in the latest week on increased holdings of government and mortgage agency debt, Fed data showed on Thursday. The Fed's balance sheet liabilities -- a broad gauge of its lending to the financial system -- rose to $2.147 trillion on Wednesday from $2.144 trillion a week ago.