plus 4, US services sector survey drags world stocks down - NewOrleans.Com

US services sector survey drags world stocks down - NewOrleans.Com
Stocks to Watch - MSN Money
Software Provider to Move Global Headquarters to Philadelphia, Rendell ... - Gant Daily
Frustrated Congressional Black Caucus plays hardball with White House - Politico.com
Stocks Lose Ground After Services Data - ABC News

US services sector survey drags world stocks down - NewOrleans.Com

Posted: 03 Dec 2009 08:16 AM PST

US services sector survey drags world stocks down

Written by Associated Press | Thursday, 03 December 2009 04:17 Business News AP

LONDON (AP) - European and U.S. stock markets mostly fell Thursday after a downbeat U.S. services sector survey stoked concerns about the recovery in the world's largest economy just a day before a key jobs report.

In Europe, the FTSE 100 index of leading British shares was down 8.23 points, or 0.2 percent, at 5,319.16 while Germany's DAX fell 12.81 points, or 0.2 percent, to 5,768.87. The CAC-40 in France was up 12.55 points, or 0.3 percent, at 3,808.47.

On Wall Street, the Dow Jones industrial average was down 28.11 points, or 0.3 percent, at 10.424.57 soon after the open while the broader Standard & Poor's 500 fell 1.55 point, or 0.1 percent, at 1,107.69.

Stocks had been trading higher through the day after big gains in Asia - led by Japan's Nikkei - as investors continued to warm to Wednesday's news that Bank of America Corp. will repay $45 billion of government bailout money.

However, that optimism waned after a closely watched survey indicated that the services sector in the U.S. was falling back into recession. The Institute for Supply Management said its service industry index fell to 48.7 in November from 50.6 in October. The fall was unexpected - analysts were expecting a rise to 51.5 - and signaled renewed contraction in the sector as any reading below 50 does.

The data comes as investors turn their attention to Friday's U.S. nonfarm payrolls report for November - data that often sets the tone in the markets for a week or two.

If investors conclude the U.S. economy is losing steam, that could pave the way for a bout of profit-taking following an eight-month bull run.

The consensus is that November U.S. non-farm payrolls fell by around 120,000, but that the unemployment rate held steady at a 26-year high of 10.2 percent.

The news that the European Central Bank kept its benchmark interest rate unchanged at a historic low of 1 percent and will start withdrawing some of its extraordinary liquidity support had little market impact.

Sentiment had mainly been buoyed by the news that Bank of America intends to repay money it received during the height of the credit crisis last year and after its purchase of Merrill Lynch earlier this year to escape the heightened government supervision that goes along with it.

So far this week, investor jitters related to Dubai's debt problems have calmed amid hopes that Dubai World, the government investment company, will have around $26 billion worth of its debts restructured. Last week, the company - with a total of $60 billion worth of debt - sent shockwaves around global financial markets when it said it was looking to postpone forthcoming debt payments until May.

The hope in the markets is that Dubai's problems will not affect the global financial system.

"It wouldn't be a surprise if sentiment turned sour again as the week draws to a close, should tomorrow's nonfarm payrolls in the U.S. come in below expectations," said David Jones, chief market strategist at IG Index.

Earlier in Asia, Japanese stocks were boosted by a fall in the value of the yen which, if sustained, could help exporters - Japan is particularly dependent on exporting its cars and electronics for its economic growth. The Nikkei 225 stock average jumped 368.73 points, or 3.8 percent, to 9,977.67.

Hong Kong's Hang Seng added 1.2 percent to 22,553.87 and South Korea's index rose 1.5 percent to 1,615.00. Australia's benchmark rose 0.3 percent but Shanghai lost 0.2 percent.

Oil prices fell, with benchmark crude for January delivery down 39 cents at $76.21, while gold slipped 0.3 percent to $1,209.60 an ounce after earlier hitting a new record high of $1,227.5.

The dollar was up 0.9 percent on the day at 88.15 yen while the euro was 0.2 percent higher at $1.5076, having earlier been within touching distance of its 16-month high of $1.5144.

____

AP Business Writer Jeremiah Marquez in Hong Kong contributed to this report.

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Stocks to Watch - MSN Money

Posted: 03 Dec 2009 07:26 AM PST

Unemployed © Rubberball/Jupiterimages The number of first-time unemployment claims fell by a seasonally adjusted 5,000 to 457,000 in the week ending Nov. 28, the Labor Department said this morning -- the fewest initial claims since the week of Sept. 6, 2008.

Claims in the previous week were revised lower by 4,000 to 462,000. Economists had expected first-time claims to rise to about 480,000.

The Labor Department said both actual and adjusted claims fell last week, even though it was shortened by the Thanksgiving holiday.

"The fact that claims not only remained low but declined further suggests that labor market conditions are improving more quickly than we had thought," Nomura Securities economist Zach Pandl wrote in a note to clients this morning.

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Software Provider to Move Global Headquarters to Philadelphia, Rendell ... - Gant Daily

Posted: 03 Dec 2009 07:48 AM PST

HARRISBURG - A leading contract management software provider will relocate its global headquarters from New Jersey to Philadelphia and create 37 high-paying jobs within three years, Gov. Edward G. Rendell announced today.

I-many Inc. will move its headquarters from Edison, N.J., to an expanded, state-of-the-art facility in the Mellon Bank Center on Market Street in Philadelphia. Thirteen employees will be relocated from the Edison facility.

"This was a highly competitive project, and I-many's decision to locate its global headquarters in Philadelphia and to create dozens of high-paying jobs in the process speaks well of Pennsylvania's business climate," said Rendell. "As we work to recover from the recession, we must continue to invest in quality projects like this one to create jobs in Pennsylvania and leverage private sector investment."

I-many develops and provides computer software and related professional services to help clients manage contractual relationships. Most of I-many's customers are health care/life sciences companies that require regulatory compliance with state and federal laws and commercial trading partners.

"I-many has undergone many exciting changes this year with the expansion of our customer base and executive team, and now our corporate headquarters' move. This move to Center City Philadelphia is part of our global strategy to increase our competitiveness and grow revenues as we enter a new chapter in our company's history," said P. Kevin Kilroy, president and CEO of I-many.

The project was coordinated through the Governor's Action Team, economic development professionals who work directly with businesses that are considering locating or expanding in the state. Pennsylvania provided I-many with a $262,450 funding offer that includes a $120,000 opportunity grant, $31,450 in job training assistance, and $111,000 in job creation tax credits.

Since Rendell took office in 2003, GAT has successfully completed 1,186 projects, resulting in commitments to create 125,903 new jobs and retain 298,235 existing positions. The commonwealth has offered more than $2.2 billion in assistance for these projects, which will leverage more than $16 billion in additional investment.

For more information on I-many, visit www.imany.com.

For more information on the Governor's Action Team and other Department of Community and Economic Development programs, visit www.NewPA.com or call 1-866-466-3972.

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Frustrated Congressional Black Caucus plays hardball with White House - Politico.com

Posted: 03 Dec 2009 07:48 AM PST

The long-simmering family feud between the Congressional Black Caucus and the first African-American president burst into the open on Wednesday, with members boycotting a financial overhaul vote as a warning shot at 1600 Pennsylvania Ave.

The 43-member caucus — which included Illinois Sen. Barack Obama from 2004 to 2008 — has chafed against President Obama and his top aides since the Inauguration, complaining that the White House takes it for granted and plays favorites with conservative Blue Dog Democrats.

Ten CBC members decided to boycott the House Financial Services Committee vote en masse after a tumultuous morning meeting at the Capitol between Rep. Maxine Waters (D-Calif.) and White House chief of staff Rahm Emanuel failed to yield a deal, according to people familiar with the meeting.

The bill passed easily, but Waters suggested the CBC's 43 members could vote with the GOP to scuttle a variety of Democratic bills if Obama and Emanuel don't address what she thinks is a lack of understanding of the CBC's wide-ranging goals of reducing urban unemployment, home foreclosures and bank failures.

"I think that it is important for us to educate those people around [Obama]," Waters told reporters. "We've got to get his people educated and moving. We have not brought these issues to him personally — it is important first to educate those people around him so they understand."

House Judiciary Committee Chairman John Conyers (D-Mich.), who recently accused Obama of bowing down to the GOP on health care reform, was more pointed, shouting "Yes!" when asked if he was disappointed with Obama's level of attentiveness to African-Americans' needs.

He added that he had an extensive list of issues with the president — a list he said was too long to disgorge in a hallway conversation with a reporter.

"There are those who choose not to speak about African-Americans or the working class," Waters said. "We can no longer be in denial that certain sectors of our population, including the African-American community, are feeling the recession to a greater extent."

Waters, a former CBC chairwoman and one of its most outspoken members, clashed often with Emanuel during his days in the House and has also had a rocky relationship with the president, according to staffers.

But the volatile Los Angeles Democrat isn't the only CBC member to have run-ins with the equally combustible Emanuel.

For years, caucus members have complained that Emanuel worked against their interests by failing to appoint a sufficient number of blacks to senior staff positions when he was chairman of the Democratic Congressional Campaign Committee. Many still believe Emanuel favors the conservative, mostly white Democrats he helped elect to battleground districts in the South, West and Midwest.

CBC members have long said they would rather deal with Obama senior adviser Valerie Jarrett, who is black, but have been forced to negotiate with Emanuel, Obama's point man in the House.

But, increasingly, the members' grievances have focused on Obama himself.

In the lead-up to February's stimulus vote, many caucus members grumbled that Obama buckled by allowing the GOP to strip out nearly $60 billion in aid to states to make way for an extension of the alternative minimum tax that will largely benefit the middle class.

CBC Chairwoman Barbara Lee (D-Calif.) is still bothered by Obama's selection of New Hampshire Republican Sen. Judd Gregg as commerce secretary — an appointment that ended with Gregg's voluntary withdrawal over ideological differences with the White House.

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Stocks Lose Ground After Services Data - ABC News

Posted: 03 Dec 2009 08:09 AM PST

NEW YORK (Reuters) - U.S. stocks lost ground on Thursday after data showing the U.S. services sector shrank unexpectedly in November offset Bank of America's plans to repay $45 billion in taxpayer bailout funds.

The U.S. services sector index fell to 48.7 in November, indicating contraction, from 50.6 in October, according to an industry report.

Wall Street initially rose after Bank of America Corp made the surprising announcement on Wednesday in a what is viewed as a victory for outgoing Chief Executive Kenneth Lewis that could free the top U.S. lender from pay curbs as it looks to hire a new CEO. Bank of America shares were up 1.6 percent to $15.90.

"We actually had a pretty good feeling going into this with the Bank of America payback that had a lot of people almost jovial," said Dan Cook, senior market analyst at IG Markets in Chicago.

"The ISM services doesn't seem to get as much weight as the manufacturing, but seeing it head in this direction is not a positive sign."

The Dow Jones industrial average <.dji> dropped 27.66 points, or 0.26 percent, to 10,425.02. The Standard & Poor's 500 Index <.spx> fell 1.23 points, or 0.11 percent, to 1,108.01. The Nasdaq Composite Index <.ixic> gained 4.35 points, or 0.20 percent, to 2,189.38.</.ixic></.spx></.dji>

The numbers of U.S. workers filing new claims for unemployment fell last week, the government said, while other data showed non-farm productivity was slightly less robust than previously thought.

U.S. retailers posted much weaker-than-expected sales for November in a slow kickoff to the key holiday shopping season.

The Retail HOLDRs ETF fell nearly 1 percent. Abercrombie & Fitch Co shed 6 percent to $37.53, while Target Corp fell 3.3 percent to $46.13.

Federal Reserve Chairman Ben Bernanke, making a case for a second term, told Congress the Fed's forceful actions prevented a devastating financial crisis from getting even worse.

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