While you were sleeping: BusinessWire overnight wrap

Friday 9th January 2009

Shares of Wal-Mart Stores Inc, the world's biggest retailer, fell 7.4%, dragging the Dow Jones Industrial Average lower after announcing earnings would miss forecasts.

Wal-Mart led retailers including Gap and Limited Brands, which owns the Victoria's Secret chain, in announcing weaker sales or forecasts, underlining the extent of the recession in the world's biggest economy.

President-elect Barack Obama said the US risks a prolonged economic slump without tax cuts and greater government spending as he urged the Congress to support his US$775 billion stimulus package

"I don't believe it's too late to change course, but it will be if we don't take dramatic action as soon as possible," he said in a speech at George Mason University in Fairfax, Virginia. "If nothing is done, this recession could linger for years. The unemployment rate could reach double digits."

Investors and traders are awaiting the release on Friday in the US of non-farm payrolls for December, which is expected to show America shed 523,000 jobs last month. A Federal Reserve report showed consumer borrowing tumbled by a record US$7.94 billion in November, highlight the inability of many Americans to access credit to fund their spending.

The Dow fell 0.8% to 8698.5 and the Standard & Poor's 500 Index declined 0.2% to 904.75. The Nasdaq Composite rose 0.5% to 1607.08.

Wal-Mart fell to US$51.47, the Gap dropped 5.5% to US$12.82 and Limited Brands declined 7.5% to US$9.91. General Motors fell 2.9% to US$4.01 and JPMorgan Chase slipped 3.1% to US$27.24. Sun Microsystems tumbled 11% to US$4.52 after Goldman Sachs added the stock to its 'sell' list.

Boeing Co. slipped 0.8% to US$44.41 after figures showed deliveries fell 15% in 2008 as it lost ground to rival Airbus SAS after an eight-week strike.

The US dollar fell against the yen and the euro on the prospects of a weakening jobs market in the US and the sell-off in stocks. The dollar fell to 91.30 yen from 92.65 and slipped to $1.3719 per euro from $1.3644. The euro fell to 125.18 yen from 126.42.

US Treasuries gained after a sale of US$16 billion on 10-year notes drew stronger demand. The bonds attracted a record-low yield of 2.419%

Crude oil and copper fell amid speculation demand for fuel and metals will wane as the US recession endures. Crude for February delivery fell 2.3% to US$41.65 a barrel on the New York Mercantile Exchange.

Copper futures for March delivery fell 2.2% to US$1.479 a pound in New York.

The Bank of England cut its benchmark interest rate by 50 basis points to 1.5%, the lowest in the central bank's history, stoking concern it is running out of leverage to revive the economy.

The FTSE 100 Index edged down 0.1% to 4505.37. Rio Tinto dropped 4.5% as prices of commodities slipped. Cairn Energy fell 4.9%. Prudential fell 7.5% and Standard Chartered slipped 7.5%.

Germany's DAX 30 fell 1.2% to 48779.91, as Commerzbank tumbled 14% and Infineon fell 11%. France's CAC 40 declined 0.7% to 3324.33.

Satyam Computer Services, India's No. 4 software exporter, said it may restate earnings after chairman Ramalinga Raju said profits had been inflated for some years.

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