Business Roundup for 1/6/14
Business roundup for Monday, January 6.
NEW YORK (AP) — Stocks appear to be regaining some of the ground lost this morning, as traders assess a couple of economic reports pointing in different directions. The Institute for Supply Management says its service-sector index dropped to 53 last month, though that still indicates growth. Meanwhile, the Commerce Department reports factory orders climbed in November, led by a surge in aircraft demand and businesses investing in machinery, computers and other long-lasting goods.
BOSTON (AP) — JetBlue is scaling back operations at Boston’s Logan airport and three airports in the New York area to rest crew and service aircraft after dozens of weather-related delays. The airline says operations are being reduced at Boston, Newark, JFK and LaGuardia and will cease entirely at 5 p.m. Eastern time, until tomorrow. Some passengers have been stuck at Logan for two days.
FREMONT, Calif. (AP) — Men’s Wearhouse is raising its offer for Jos. A. Bank Clothiers and taking the bid directly to its rival’s shareholders. Jos. A. Bank says it is reviewing the $1.61 billion offer, or $57.50 per share, and will make a recommendation to shareholders by Jan. 17. While each chain has rejected offers from the other, analysts say a combination of Men’s Wearhouse and Jos. A. Bank appears inevitable.
LAS VEGAS (AP) — AT&T says it’s setting up a “1-800″ service for wireless data. Websites that pay for the service will be toll-free for AT&T’s wireless customers, meaning the traffic won’t count against a surfer’s monthly allotment of data. AT&T is the first major cellphone company to create a comprehensive service for sponsored wireless access in the U.S.
NEW YORK (AP) — Microsoft says it has sold more than 3 million Xbox Ones. Microsoft says demand for the video game console has been strong since its November launch, selling out in many stores throughout the holidays.
CHICAGO (AP) — Boeing says it delivered a record 648 planes last year, including 65 of its 787s. Battery problems halted work on the 787 for four months in 2013, but Boeing was able to step up the pace once deliveries resumed in May. It handed over 25 of the jets during the final quarter of last year. The total put Boeing ahead of Europe’s Airbus, which has said it expected to deliver about 600 jets for the year.
WASHINGTON (AP) — U.S. factory orders climbed in November, led by a surge in aircraft demand. And businesses stepped up spending on machinery, computers and other long-lasting goods that signal investment. The Commerce Department says factory orders rose 1.8 percent in November. That follows a 0.5 percent decrease in October. The index now stands at its highest level on records dating back to 1992.
WASHINGTON (AP) — U.S. service companies expanded at a steady but slightly slower pace in December as sales dipped and new orders plunged to a four-year low. The report suggests that growth may remain modest in the coming months. The Institute for Supply Management says its service-sector index fell to 53 last month, down from 53.9 in November. Any reading above 50 indicates expansion.
WASHINGTON (AP) — The Senate is expected today to confirm Janet Yellen as head the Federal Reserve. Yellen would replace Ben Bernanke on Feb. 1. Later today, senators are expected to vote on a three-month extension of jobless benefits for the long-term unemployed — that’s some 1.3 million Americans. Those payments stopped Dec. 28.
BELLEVUE, Wash. (AP) — T-Mobile says it’s reached a deal that will allow it to boost cellular coverage inside buildings and in rural areas in nine of the top 10 U.S. markets. T-Mobile has reached deals to buy spectrum licenses from Verizon Wireless for $2.37 billion in cash. And T-Mobile will transfer other kinds of spectrum licenses to Verizon for about $950 million. Coverage areas include New York, Los Angeles, Dallas, Houston, Philadelphia, Atlanta, Washington, D.C., and Detroit.
NEW YORK (AP) — The stock market is starting out 2014 on a bit of a sour note. The S&P 500 index edged a fraction of a point lower to 1,831 on Friday, beginning a year with a two-day losing streak for the first time since 2005. The Nasdaq composite also fell. It was down 11 points to 4,131. But the Dow Jones industrial average managed to gain 29 points, closing at 16,469. Futures point to a weak start today.
KUALA LUMPUR, Malaysia (AP) — International stock markets were mostly lower today, opening the week on a cautious note ahead of the release of data from the U.S. and China that will reflect the pace of growth in the world’s top two economies. Benchmark crude oil rose above $94 a barrel.
WASHINGTON — Two reports scheduled for release today may be of some interest to traders although they aren’t likely to have a great deal of impact on the market: The Institute for Supply Management’s service sector index for December; and the November factory order report from the Commerce Department Tomorrow, the government will releases international trade data for November.
LAS VEGAS (AP) — The Consumer Electronics Association estimates that global spending on technology will slip 1 percent this year to $1.06 trillion as the lower average selling price of smartphones and tablets offsets unit growth in markets like China. Steve Koenig, the association’s director of industry analysis, issued the forecast at the opening of the annual International CES gadget show. Spending on smartphones and tablets is still expected to account for some 43 cents of every dollar spent on technology this year.
LONDON (AP) — Britain’s Treasury chief says the country still has a long way to go to eliminate the deficit and that substantial savings must be gleaned from welfare cuts. George Osborne says 2014 is to be the “year of hard truths,” and that there are still big underlying problems in the economy. Osborne told autoworkers in Birmingham on Monday that billions of pounds (dollars) in welfare cuts will be needed.
(Copyright 2013 The Associated Press. All Rights Reserved)