BIG THICKET NATIONAL PRESERVE, Texas Corinne Campbell stuffs her gear in waterproof sacks and then stuffs them and herself into a tiny circular cutout that marks the seat in her green kayak. After taking a quick peek at the GPS unit clipped near her orange vest to make sure it is getting a satellite signal, she shoves off between large downed tree trunks. Then she propels her tiny needle-nose craft into a wide rain-swollen creek that wiggles through what’s been called the biological crossroads...

TECHNOLOGY

Microsoft may buy online ad firm

The software giant is a contender to buy Internet ad firm 24/7 Real Media () for as much as $1 bil, the New York Post reported. The story sent 24/7 Real Media surging 20% to 11.97. The newspaper reported last month that WPP Group was also a suitor for 24/7 Real Media. Microsoft, () which declined comment, rose 0.8% to 30.19. Takeovers of online ad companies have risen since Google () announced a $3.1 bil deal to buy Internet marketer DoubleClick. On Mon., Yahoo () said it would buy online ad firm Right Media for about $680 mil.

Emerson’s int’l sales jolt Q3 EPS

The maker of measurement devices, tools, appliances and other equipment said its Q2 earnings increased 14% to 61 cents a share, a penny higher than views. Emerson Electric’s () revenue rose 14% to $5.51 bil, besting $5.4 bil expectations. The company benefited from a 12% rise in international sales. The company sees $2.50-$2.60 per share in annual earnings, guiding low of views for $2.59. Shares fell 1.9% to 46.09.

Perot Systems, () a provider of IT systems, had a flat Q1 EPS of 19 cents, matching views. Revenue rose 9% to $590 mil, below views. Lost profit from an expired contract was offset by higher revenue.

RETAIL

Liz Claiborne unravels on poor Q1

The apparel maker tumbled 17.3% to 37 after Q1 earnings fell 63% to 22 cents a share, missing expectations by 38 cents. Liz Claiborne’s () revenue slipped 2% to $1.15 bil, short of $1.25 bil views. The company’s ‘07 outlook was weak at $1.90-$2.05, well below analysts’ projections of $3.12. Analysts urged a shake up, with Morgan Keegan contending there are “huge chunks” of Claiborne’s business that “simply can’t grow.”

Steve Madden, () a shoe and accessory maker, said Q1 EPS fell 12% to 43 cents, beating views by 2 cents. Revenue fell nearly 2% to $106.7 mil, shy of views. Weak sales of women’s boots and men’s “sport fusion” products hurt the results. Still, it forecast ‘07 EPS in line with views. Shares rose 4.9% to 31.50.

Wet Seal, () a teen apparel retailer, lowered its forecast for April same-store sales but affirmed its Q1 EPS guidance. Shares rose 1.3% to 6.06.

MEDICAL

Medco beats, outlook disappoints

One of the largest U.S. prescription-benefit managers said its Q1 earnings rose 84% to $1.03 a share, topping views by 30 cents. Medco Health Solutions’ () revenue rose 6% to $11.16 bil, just beating forecasts. Its generic drug and mail-order prescription sales were strong. Medco raised ‘07 guidance to $3.40-$3.45. Views were for $3.37, but that was before it beat by 30 cents in Q1, raising analysts’ concerns of a weaker-than-expected Q2-Q4. Shares fell 7.5% to 72.15.

Hologic nearly doubles Q2 profit

A maker of diagnostic and medical imaging systems reported 47 cents a share ex items, crushing views by 23 cents. Hologic’s () revenue rose 79% to $181.1 mil, besting $174.9 mil expectations. The company’s quarter was aided by revenue from newly available selenia digital mammography systems. Its revenue was also lifted by AEG Elektrofotografie, R2 Technology and Suros Surgical Systems, all acquired after May 1 of last year. Shares climbed 2% to 58.74.

FDA panel backs Glaxo drug

An FDA advisory panel said high dosages of GlaxoSmithKline’s () asthma drug Advair offered a “substantial advantage” for patients with chronic obstructive pulmonary disease, but acknowledged concerns it could raise infections. The panel said data showed patients suffered fewer flare-ups of the lung disease, but acknowledged concerns about an increased risk of respiratory infections and pneumonia and urged further study. The FDA is expected to rule by Aug. Glaxo dipped 0.5% to 57.51.

Cyberonics, () a maker of an implantable device to treat depression, will cut 90 jobs, or about 15% of its work force. The company also appointed Daniel Moore as CEO. He is a former president of international distributor management at Boston Scientific. () Cyberonics fell 3% to 21.20.

Apria Healthcare, () a provider of home health care services, said its Q1 earnings rose 16% to 44 cents a share, topping views by a penny. The company’s revenue grew 6% to $389.3 mil, short of $392 mil expectations. Shares fell 0.8% to 31.50.

FINANCE

Nymex beats, revenue jumps

The operator of the New York Mercantile Exchange raised Q1 profit 34.1% to 59 cents a share, beating views by 2 cents. Revenue jumped 47% to $164.2 mil. Average daily volume rose 40% to 1.51 mil contracts. Nymex () declared a dividend of 10 cents, its first payout to shareholders since going public last November. Shares fell 3.5% to 125.20.

Chicago bourses see trading dip

The Chicago Mercantile Exchange said April volume fell 9% to an average of 5 mil contracts a day. The Merc’s total electronic trading volume was flat at 3.6 mil contracts, while options volume slid 19% to 1.1 mil contracts. It said there was a weaker demand for interest rate products. Meanwhile across town, the Chicago Board of Trade’s average daily volume fell 3% to 2.9 mil contracts. CBOT’s monthly volume rose 7% to 61.4 mil on record agricultural trades. CME shares slid 0.8% to 512.60. CBOT fell 2.2% to 184.50.

CBOT is still mulling rival bids from CME and the electronic Intercontinental Exchange. ()

Safeco tops, auto insurance falls

The property insurer raised Q1 operating profit 1.9% to $1.64 a share, beating views by a penny. Safeco () said it collected lower policy premiums and paid a higher share of each premium dollar in claims. Auto insurance underwriting profit fell 68% to $17.2 mil on lower premium revenue. Shares slid 2.7% to 64.93.

National City, () the No. 8 U.S. bank, will buy MAF Bancorp, () parent of MidAmerica Bank, for $1.9 bil to expand in Chicago and enter Wisconsin. MAF holders will get $56 a share in Nat’l City stock. National City slid 1.3% to 36.07. MAF shares shot up 36% to 54.44.

ENERGY

Marathon Oil beats Q1 EPS views

The oil and gas company said profit edged up 3% to $2.07 a share, beating views by 14 cents. Marathon Oil’s () sales fell 21% to $13 bil. Exploration and production earnings fell 17%. Refining earnings grew 8% to $345 mil as margins widened and the unit’s income tax rate fell. Shares slid 0.3% to 101.27.

BP CEO quits amid sex scandal

The gas and oil giant’s CEO, John Browne, resigned hours after a judge cleared the way for a newspaper to publish accusations by his former boyfriend, who says Browne misappropriated BP resources. Browne was set to resign at the end of July. BP’s () board appointed Tony Hayward, who was cleared to take over Aug. 1. By leaving now, Browne forgoes a bonus of more than $6.9 mil and long-term performance share plan with up to $23.9 mil. Shares were unchanged.

Dril-Quip, () maker of offshore drilling equipment, said Q1 profit rose 34% to 59 cents a share, missing views by 2 cents. Revenue rose 20% to $117.7 mil, short of forecasts. Dril-Quip sees Q2 EPS of 55-65 cents vs. Wall St. views of 64 cents. Shares fell 6.2% to 47.37.

BUILDING

Vulcan Materials beats, but falls

The maker of asphalt and concrete raised EPS 30% to 91 cents, beating views by 11 cents. Revenue slipped 3% to $687.2 mil, but still topped views. Vulcan () said it raised prices 16% in its construction aggregates segment as shipments slid 14% due to weakness in the residential housing market. Asphalt selling prices also were up, offsetting higher costs for raw materials and declining sales volumes. Shares slid 6.8% to 115.27.

Masco, a building products maker, said Q1 earnings fell 26% to 37 cents a share ex items, beating views by a dime. The company’s revenue fell 9% to $2.88 bil, outdoing $2.77 bil forecasts. The company said sales were hurt from the struggling housing market. Shares leapt 9.5% to 29.80.

TELECOM

Qwest profit beats, revenue falls

The telecom provider more than doubled Q1 EPS to 12 cents, beating views by 3 cents. Revenue fell 1% to $3.45 bil, below views. Qwest Communications () said it enjoyed continued strength in mass markets, but that revenue growth from its wholesale divisions remained flat. Operating expenses declined 6%. Phone landlines declined 6.8% to 13.6 mil. Its fastest growing business tied to Internet, data and video services saw revenue climb 11%. Shares slipped 2.6% to 9.11.

Motorola’s () CEO Ed Zander and other managers were blasted by billionaire Carl Icahn in a letter to shareholders as part of his bid to win a seat on its board at a vote Monday. He said Motorola has “stumbled” due to “leadership setbacks.” Motorola rose 0.8% to 17.46.

SERVICES

Geo Group tops, sets stock split

The operator of correctional and detention facilities said Q1 earnings rose 34% to 43 cents a share ex items, topping views by 4 cents. Geo Group’s () revenue rose 28% to $237 mil, beating $226.6 mil forecasts. U.S. Corrections revenue for the first quarter of 2007 increased 12%. The company said its International Services revenue grew 25%. It also announced a 2-for-1 stock split. Shares climbed 1.8% to 52.13.

April 19, 2007 — Virginia Tech killer Cho Seung-Hui took a break between murders to mail a chilling multimedia missive - which included videos explaining the twisted reasons why “I did it. I had to!” and dozens of snapshots of himself in hostile poses with guns. NBC News said it received the creepy Express Mail package yesterday morning. It contained a postal clerk’s mark of 9:01 a.m. on 4/16/07 - proving Cho mailed it in the hours between committing a double murder at...

NEW YORK - Among consumer gadgets, watches are an odd category. The most expensive and prestigious watches aren’t the ones with the most functions or the most up-to-date chips they’re the ones that do the least, in as old-fashioned a way as possible. Just think of mechanical Rolexes. So when a watch comes along that uses digital technology to do something new, it usually ends up looking like a gimmick. That was my first reaction to Sony Ericsson’s Bluetooth Watch MBW-100 ($399,...

The media conglomerate, which operates the HSN shopping network, Ticketmaster and CitySearch, said Q4 earnings rose 29% to 67 cents a share ex items, beating views by 14 cents. IAC/InterActiveCorp. () said revenue increased 8% to $1.82 bil, just shy of forecasts of $1.87 bil. The company said its search site Ask.com, which IAC wants so that it can tie together its various Internet assets, had especially strong growth in its revenue per query. Shares dipped 1.4% to 38.72.

Bankrate jumps on record quarter

The online provider of mortgage and credit card information soared 14.7% to 44.47 after it said Q4 earnings surged 80% to 27 cents ex items, its most profitable quarter and 3 cents above views. Revenue climbed 49% to $20.7 mil, driven by robust online advertising. Bankrate () raised ‘07 revenue guidance to $95 mil-$100 mil vs. views of $98.8 mil.

CDC lifts outlook on strong sales

The Chinese Internet service and online gaming firm lifted its forecast for Q4 due to stronger-than-expected software licensing and gaming revenue. CDC Corp. () expects Q4 earnings of $34.3 mil-$35 mil, above views of $32.6 mil. For the year, the company expects ‘06 sales of $307 mil-$308 mil, topping analysts’ expectations for $304.8 mil. Shares jumped 5% to 10.69.

YouTube to post Japanese warning

Google’s () video-sharing Web site, YouTube, agreed to post warnings in Japanese urging users not to post copyrighted material on its site. YouTube also said it will try to filter out copyrighted Japanese video by enlisting the help of its parent company, according to a group of Japanese TV stations. The agreement comes after YouTube deleted 30,000 Japanese files in Oct. amid copyright complaints and last week’s demand by U.S. media company Viacom () that it withdraw more than 100,000 of its unauthorized video clips. Shares edged up 1% to 471.48.

EarthLink, () a provider of broadband Internet and phone services, said it swung to a Q4 loss of 20 cents a share, missing views by 4 cents. Revenue rose 5% to $328.2 mil, below views. Losing money at its wireless joint venture affected the results. Shares fell 3.9% to $6.96.

REAL ESTATE

Equity Office buyout bid raised

Private equity group Blackstone Group boosted its bid 3% for the REIT () to $23 bil in cash, the latest volley in a bidding war with Vornado Realty Trust. () Blackstone’s offer of $55.50 a share is still below Vornado’s sweetened bid of $56, but Blackstone’s offer is all cash. Equity Office stock rose above Blackstone’s bid, indicating the price could go even higher. In Nov., Blackstone agreed to buy Equity Office for $20 bil, or $48.50 a share. Equity Office rose 1% to 56.05.

ProLogis, () an industrial REIT, said Q4 funds from operations surged 95% to $1.11 a share, 7 cents above views. The company credited increasing rents and demand. Shares rose 3% to 67.77.

MEDICAL

State to pay for Merck vaccine

The vaccine against human papillomavirus, cited as the cause of most cervical cancer, will be offered free to girls in Wash. state. About 143,000 doses of Gardasil, made by drug maker Merck, () should be purchased by late spring, state officials said. Typically, the 3-shot vaccination cost $360. Last week, Texas announced HPV vaccination would be mandatory for girls entering the sixth grade as of Sept. ‘08. N.H. was the first state to offer the vaccine for free to all girls. Merck edged up 6 cents to 44.64.

Gene test for breast cancer OK’d

U.S. health officials approved a genetic test that can provide women with early breast cancer an estimate of whether the disease is likely to return in 5 to 10 years. Dutch company Agendia made a test called MammaPrint, and the test measures the activity of 70 genes using a sample from a breast cancer tumor that has been removed. The FDA cautioned that the test is not perfect and should be used with other information.

FINANCE

MGIC to buy Radian for $5.47 bil

The mortgage insurer plans to buy rival Radian Group () for $5.47 bil. The move will let it cut costs amid shrinking demand that has been affected further by a slowing housing market. MGIC Investment () and Radian expect to close the deal in Q4. The combined company is to be called MGIC Radian Financial Group and is going to have nearly $15 bil in total assets.

ENERGY

Duke Energy Q4 EPS tops views

The company said its earnings rose 2% to 43 cents a share ex items, beating views by 3 cents. Duke Energy’s revenue jumped 34% to $4.07 bil, missing expectations of $4.56 bil. In the quarter, which CEO James E. Rogers called “lackluster,” the company completed the sale of its Commercial Marketing and Trading business and closed on its $195 mil purchase of N.C.’s Rockingham power plant. Shares fell 1% to 20.06.

Dawson tops views; shares soar

The provider of seismic data to oil and gas companies leapt 14.9% to 41.04 after it said Q1 earnings more than doubled to 71 cents a share, beating views by 13 cents. Dawson Geophysical () said revenue jumped 51% to $53.7 mil. The company said it benefited from “brisk domestic exploration activities by the oil and gas industry.”

BP finishes ‘06 on a weak note

The British oil giant, BP’s () Q4 net profit fell 22% to $2.88 bil, missing expectations, as revenue slipped 1.6% to $62.8 bil as it closed out a problem-plagued year. BP struggled last year as it was forced to shut half of a key Alaska pipeline due to corrosion, suffered production delays in the Gulf of Mexico and had its safety record blasted by a U.S. inquiry into a fatal Texas refinery blast. CEO John Browne took much of the blame and has announced he’ll retire early. BP fell nearly 1% to 63.25.

National Oilwell Varco, () a provider of oil field services and equipment, more than doubled Q4 profit to $1.35 per share, beating views by 29 cents. Revenue climbed 42% to $2.08 bil, above views. Strong demand for its rig technology products and oil field supplies helped the result. Shares rose 9.4%.

RETAIL

Wal-Mart sex-bias suit to proceed

A federal appeals court said the corporate giant must face a class-action lawsuit claiming that Wal-Mart discriminated against women in pay and promotions. The suit would cover as many as 1.5 mil current and former female workers and, if successful, could cost the company billions. The ruling upholds a federal judge’s decision. Wal-Mart rose 6 cents to 48.58.

Activist joins Home Depot board

The largest home improvement retailer, Home Depot () will give a seat on its board to Relational Investors, an investment group that wants to consider a leveraged buyout of Home Depot to generate shareholder value. The group threatened a proxy fight over the company’s direction, but under the agreement Home Depot will give a seat to Relational principal David Batchelder, who will drop the proxy challenge. Home Depot said it will oppose any move involving a sale of the company. Shares rose 0.6% to 41.27.

Urban Outfitters, () an apparel retailer, said Q4 same-store sales fell 5%. Shares rose 1.4% to 25.38.

DIVERSIFIED

Tyco beats, but offers no outlook

The conglomerate, Tyco () said Q1 earnings rose 15% to 45 cents a share ex items, edging past views by a penny. Revenue climbed 8% to $10.3 bil, above analyst forecasts. Tyco will split into 3 publicly traded companies, as it plans to spin off its health care and electronics divisions early in Q2. It didn’t issue a Q2 EPS outlook. Shares fell 1.9% to 32.59.

Emerson Electric’s Q1 tops views

The diversified manufacturer said earnings rose 15% to 55 cents a share, beating views by 2 cents. Revenue rose 11% to $5.1 bil vs. expectations of $4.99 bil. Sales from existing businesses rose 4%. Emerson () said 4 of its 5 segments had higher sales. The process management, industrial automation and network power segments reported double-digit revenue gains. Shares slid 1% to 45.12.

TRANSPORTATION

Northwest Air narrows Q4 loss

The bankrupt carrier cut its loss to $7 mil ex items, far less than the $386 mil it lost a year ago. Revenue rose 2% to $2.98 bil. Lower fuel costs and higher fares boosted results. Northwest Air will distribute about $44 mil to employees via its profit-sharing and performance-incentive payments, as well as holiday payments.

US Air () said Jan. traffic increased 4.7% on all 3 of its airlines US Airways, America West and US Airways Express. Capacity rose less than 1% as occupancy rose 2.8% to 73.3%. Shares slid 10 cents.

METALS

Metal Management falls on miss

The metals recycler, Metal Management () said Q3 earnings remained unchanged at 60 cents a share, falling short of views by 14 cents. Revenue increased 33% to $524 mil. The company blamed weak U.S. iron market demand, slower domestic stainless steel mill consumption and falling copper prices. Income from joint ventures declined to $357,000 from $3 mil a year ago. Excluding depreciation, costs of sales rose 36% to $471.7 mil. Shares fell 3% to 40.82.

Troy Bayliss yesterday celebrated his 38th birthday by setting the fastest time in qualifying for the European round of the World Superbike Championship on a slippery and dangerous Donington Park, while Britain’s James Toseland settled for a prudent fourth best, 1.359sec behind. “The track had a dry line only two feet wide, but the times were good and I’m feeling confident,” Bayliss said after climbing from his Xerox Ducati. The Australian reigning champion also dismissed...

BY JESSE EMSPAK INVESTOR’S BUSINESS DAILY Posted 2/9/2007 Rydex Investments has launched a Japanese yen exchange-traded fund, the latest of eight that the firm offers to advisers. Tim Meyer, ETF business manager, said Rydex wants to offer diversification beyond equities, fixed income and cash. The new ETF is called the CurrencyShares Japanese Yen Trust and trades under the ticker FXY. It should start trading this week. The other ETFs offered track the euro, the British pound,...

The search engine leader Google () boosted its share of the U.S. Internet search market to 47.4% with an increase of 0.4% in Dec., while No. 2 ranked Yahoo () edged up 0.3% to 28.5% in Dec. ComScore Networks, a Web audience measurement firm, said No. 3 Microsoft’s () share fell 0.5% to 10.5% and IAC/InterActiveCorp () dipped 0.1% to 5.4% of U.S. Web searches. ComScore said total Web searches conducted in Dec. rose 30% to 6.7 bil from a year ago. Google hit an intraday high of 513, but ended down 0.1% at 504.28. Yahoo dipped 0.5% to 29.29.

Symantec warns; shares tumble

The security software maker fell 13% to 17.79 after it slashed its Q3 forecasts to 10-11 cents a share, less than half the 29 cents analysts projected. Symantec () also lowered its revenue outlook to $1.29 bil-$1.31 bil, below views of $1.4 bil. The decline comes amid rising expenses and weaker sales at its data center business. For Q4, it forecast earning 4-6 cents a share, well shy of the 32 cents Wall Street had expected.

HP announces chip innovation

The technology company said its research showed that it found a way to create chips up to 8 times denser than integrated circuits by using less energy. Hewlett-Packard () said new chips could be built using the same size transistors and also could be built in current fabrication plants with only minor modifications. HP said its researchers could have a laboratory prototype within the year. Shares rose 0.8% to 43.20.

Court rejects IBM workers’ suit

The Supreme Court refused to hear an age discrimination lawsuit against IBM () that could have cost the computer giant $1.4 bil. The class action suit, in which a lower court ruled in IBM’s favor, decreed that the company’s “cash balance” pension plan was allowable. More than 1,500 other companies use an IBM-style pension plan. The high court also decided not to weigh in on a suit from an employee who claims IBM retaliated after workers complained about how managers handled overtime. Shares rose 1.5% to 100.82.

Covansys () a provider of information technology services, reported that delayed Q3 earnings rose 22% to 28 cents a share, 2 cents below views. Revenue dipped slightly to $110.9 mil. Shares fell 3.3% to 23.65.

MEDICAL

Omrix soars on competitors’ woes

The maker of biosurgical and immunotherapy products hit an all-time high on news that the FDA proposed limits on bovine-derived thrombins enzymes that promote blood clotting in medical products in an effort to stymie the spread of mad cow disease. Omrix () makes human-derived thrombin, which will not be affected by the potential ban, analysts said. Shares climbed 5.2% to 35.18.

Forest Labs beats, lifts guidance

The drug maker Forest () said Q3 earnings climbed 37% to 78 cents a share, topping views by 12 cents. Revenue jumped 18% to $893 mil. Sales of the company’s antidepressant treatments rose 14% to $555 mil, while sales of the Alzheimer’s disease treatment Namenda grew 40% to $173.9 mil. Forest Laboratories raised its 2007 EPS outlook to $2.79-$2.84 vs. views of $2.70. Shares fell 1.3% to 53.02.

Genesis HealthCare to go private

The operator Genesis () of more than 200 nursing homes agreed to be bought by 2 private equity firms for $1.25 bil, or $63 a share in cash. Formation Capital and JER Partners will also assume $450 mil in debt. Genesis, which retained Goldman Sachs () as its financial adviser, will operate as a privately held company after the buyout. The company did not give an estimate of when the deal will close. Shares jumped 15.9% to 61.26.

BioMarin, () a biotech pharmaceutical company, saw positive results for its Phenoptin treatment in a late-stage study with children. The drug is aimed at phenylketonuria, which affects about 50,000 people worldwide. Shares rose 1.4% to 17.91.

Osiris Therapeutics, () a biotech-drug maker, said European regulators granted orphan drug status to its stem cell treatment Prochymal, which helps prevent rejection of transplanted bone marrow. The status gives Osiris several incentives, including 10 years of market exclusivity if the drug is approved. Shares fell 2% to 27.95.

MedImmune () won a 2nd case before the Supreme Court this month, with justices allowing its patent challenge against Johnson & Johnson () to proceed. Previously, the justices ruled in favor of MedImmune’s effort to challenge a patent held by Genentech. () MedImmune dipped 0.5% to 35.20.

TRANSPORTATION

SkyWest warns due to weather

The regional airliner said Q4 earnings were hurt by cold weather problems in Denver that forced the carrier to cancel about 2,850 flights. SkyWest () now sees earnings of 44-50 cents a share, below analysts’ expectations of 63 cents. The company also said it will take unspecified charges tied to its accelerated pilot training in preparation for flying additional aircraft for Midwest Airlines () and Delta Air Lines, which will eventually reimburse those costs. SkyWest rose 2.5% to 28.43.

DIVERSIFIED

GE buys British aerospace giant

The world’s largest aircraft engine maker agreed to buy the aerospace business of Smiths Group, Britain’s third largest aerospace company, for $4.8 bil in cash. GE () said the purchases would complement its aerospace portfolio by adding flight management systems, electrical power management, mechanical actuation systems and airborne platform computing systems. Smiths Aerospace has over 11,000 employees and posted revenue of $2.4 bil in ‘06. GE rose 0.6% to 38.11.

TELECOM

Cheaper BlackBerrys sink stock

Research in Motion () fell 3.9% to 127.71 after retailers slashed prices on the new BlackBerry Pearl smart phone to $149.99 from $199.99 when sold with a 2-year wireless contract. Analysts worried that consumers will start to equate RIM phones with the lower price, which may make it harder to sell upcoming smart phones at higher prices. Research in Motion also released preliminary handset sales for Q3 showing sales leapt 64% from a year ago.

Verizon spins off phone assets

The phone company will spin off phone operations in Maine, Vt. and N.H. and combine the assets with FairPoint Communications. () Verizon () investors would receive 1 share of FairPoint for each 55 shares of Verizon they own. The deal would be worth about $1 bil to Verizon investors. The spun-off phone assets would be assigned $1.7 bil in Verizon debt. FairPoint jumped 15.5% to 21.41. Verizon fell 0.5% to 37.16.

DEFENSE

Navy halts Lockheed ship work

The No. 1 U.S. defense contractor was ordered by the Navy to stop work on 1 of 2 coastal combat ships because of big cost overruns. Lockheed Martin () ’s work will be stopped immediately for 90 days while costs are reviewed. It is building the 1st and 3rd of the Navy’s coastal combat ships and General Dynamics () is building the 2nd and 4th. The $1.3 bil littoral combat ship program is a major piece of the Navy’s vision for its future fleet. Lockheed rose 0.7% to 97.

Northrop Grumman () won a $40.4 mil pact to work on a Navy missile system. Shares rose 0.3% to 69.79.

FINANCE

Goldman buys USI for $992 mil

The insurance broker agreed to be bought by Goldman Sachs () ‘ private equity arm for about $992.8 mil. GS Capital Partners agreed to pay USI Holdings () $17 per share, representing a 9% premium over its Friday closing price of 15.55. The offer is 21% higher than the stock’s average price over the 30 days up to Oct. 24. USI put the total value of the deal, including debt, near $1.4 bil.

Citigroup, () a financial institution, will re-brand itself with a shorter name, Citi, and a new logo without the signature red umbrella, according to a published report.

ENERGY

Panel blames BP in deadly blast

The British oil giant British Petroleum () did not emphasize safety at its 5 U.S. refineries before an ‘05 explosion in Texas City, Texas, that killed 15. An independent panel made 10 recommendations, including that an independent monitor report to BP’s board for 5 years. The blast has cost BP $2 bil in compensation payments. The report follows the announced early retirement of BP CEO John Browne. BP fell 2% to 63.28.

MEDIA

Netflix to offer movie downloads

The DVD-by-mail provider Netflix () will stream movies and TV shows over the Internet in a bid to fend off a technology shift threatening its survival. It budgeted $40 mil to expand its data centers to cope with the increase in demand. The new instant viewing system “Watch Now” will be offered at no extra charge to a small percentage of its 6 mil subscribers. Shares rose 3 cents to 22.74.

BUILDING

InfraSource Services lifts outlook

The provider InfraSource Services () of infrastructure design to utilities boosted its Q4 earnings guidance to 15-17 cents a share vs. views of 13 cents. It also raised its sales outlook to $240 mil-$250 mil, above views of $213.6 mil. It credited completion of several projects and stronger demand amid unseasonably mild weather. Shares rose 2.2% to 21.96.

Centex sees Q3 loss, sales drop

The home builder said it expects to post a loss from continuing operations for Q3 on sharp drops in home closings and sales in “one of the most challenging housing environments in the past 25 years.” Centex () and rival KB Home () warned they will take charges to reduce their land positions. Meanwhile, billionaire investor Carl Icahn said he had increased his stake in another home builder, WCI Communications. () Centex fell 3% to 51.61.

ACT Opposition water spokesman Richard Mulcahy is concerned the Acting Chief Minister, Katy Gallagher, does not fully understand the Murray River issues in order to negotiate for the ACT. He says it is unfortunate Chief Minister Jon Stanhope is on official business overseas during these crucial water negotiations between the Commonwealth and some state governments. Mr Mulcahy says Ms Gallagher’s statements that this week’s summit satisfied her concerns and there is little relevance...

JOHN Reid’s handling of the crisis enveloping the Home Office has infuriated the Chancellor, jeopardising Reid’s chances of winning high office in a Gordon Brown government. Brown has made it known the Home Secretary will have to sort out his department to guarantee a prominent role in government once Tony Blair departs. Senior Brown allies said the prime minister-in-waiting was furious at the leak last Sunday of plans to split the Home Office, and became even more frustrated...

The media conglomerate, which operates the HSN shopping network, Ticketmaster and CitySearch, said Q4 earnings rose 29% to 67 cents a share ex items, beating views by 14 cents. IAC/InterActiveCorp. () said revenue increased 8% to $1.82 bil, just shy of forecasts of $1.87 bil. The company said its search site Ask.com, which IAC wants so that it can tie together its various Internet assets, had especially strong growth in its revenue per query. Shares dipped 1.4% to 38.72.

Bankrate jumps on record quarter

The online provider of mortgage and credit card information soared 14.7% to 44.47 after it said Q4 earnings surged 80% to 27 cents ex items, its most profitable quarter and 3 cents above views. Revenue climbed 49% to $20.7 mil, driven by robust online advertising. Bankrate () raised ‘07 revenue guidance to $95 mil-$100 mil vs. views of $98.8 mil.

CDC lifts outlook on strong sales

The Chinese Internet service and online gaming firm lifted its forecast for Q4 due to stronger-than-expected software licensing and gaming revenue. CDC Corp. () expects Q4 earnings of $34.3 mil-$35 mil, above views of $32.6 mil. For the year, the company expects ‘06 sales of $307 mil-$308 mil, topping analysts’ expectations for $304.8 mil. Shares jumped 5% to 10.69.

YouTube to post Japanese warning

Google’s () video-sharing Web site, YouTube, agreed to post warnings in Japanese urging users not to post copyrighted material on its site. YouTube also said it will try to filter out copyrighted Japanese video by enlisting the help of its parent company, according to a group of Japanese TV stations. The agreement comes after YouTube deleted 30,000 Japanese files in Oct. amid copyright complaints and last week’s demand by U.S. media company Viacom () that it withdraw more than 100,000 of its unauthorized video clips. Shares edged up 1% to 471.48.

EarthLink, () a provider of broadband Internet and phone services, said it swung to a Q4 loss of 20 cents a share, missing views by 4 cents. Revenue rose 5% to $328.2 mil, below views. Losing money at its wireless joint venture affected the results. Shares fell 3.9% to $6.96.

REAL ESTATE

Equity Office buyout bid raised

Private equity group Blackstone Group boosted its bid 3% for the REIT () to $23 bil in cash, the latest volley in a bidding war with Vornado Realty Trust. () Blackstone’s offer of $55.50 a share is still below Vornado’s sweetened bid of $56, but Blackstone’s offer is all cash. Equity Office stock rose above Blackstone’s bid, indicating the price could go even higher. In Nov., Blackstone agreed to buy Equity Office for $20 bil, or $48.50 a share. Equity Office rose 1% to 56.05.

ProLogis, () an industrial REIT, said Q4 funds from operations surged 95% to $1.11 a share, 7 cents above views. The company credited increasing rents and demand. Shares rose 3% to 67.77.

MEDICAL

State to pay for Merck vaccine

The vaccine against human papillomavirus, cited as the cause of most cervical cancer, will be offered free to girls in Wash. state. About 143,000 doses of Gardasil, made by drug maker Merck, () should be purchased by late spring, state officials said. Typically, the 3-shot vaccination cost $360. Last week, Texas announced HPV vaccination would be mandatory for girls entering the sixth grade as of Sept. ‘08. N.H. was the first state to offer the vaccine for free to all girls. Merck edged up 6 cents to 44.64.

Gene test for breast cancer OK’d

U.S. health officials approved a genetic test that can provide women with early breast cancer an estimate of whether the disease is likely to return in 5 to 10 years. Dutch company Agendia made a test called MammaPrint, and the test measures the activity of 70 genes using a sample from a breast cancer tumor that has been removed. The FDA cautioned that the test is not perfect and should be used with other information.

FINANCE

MGIC to buy Radian for $5.47 bil

The mortgage insurer plans to buy rival Radian Group () for $5.47 bil. The move will let it cut costs amid shrinking demand that has been affected further by a slowing housing market. MGIC Investment () and Radian expect to close the deal in Q4. The combined company is to be called MGIC Radian Financial Group and is going to have nearly $15 bil in total assets.

ENERGY

Duke Energy Q4 EPS tops views

The company said its earnings rose 2% to 43 cents a share ex items, beating views by 3 cents. Duke Energy’s revenue jumped 34% to $4.07 bil, missing expectations of $4.56 bil. In the quarter, which CEO James E. Rogers called “lackluster,” the company completed the sale of its Commercial Marketing and Trading business and closed on its $195 mil purchase of N.C.’s Rockingham power plant. Shares fell 1% to 20.06.

Dawson tops views; shares soar

The provider of seismic data to oil and gas companies leapt 14.9% to 41.04 after it said Q1 earnings more than doubled to 71 cents a share, beating views by 13 cents. Dawson Geophysical () said revenue jumped 51% to $53.7 mil. The company said it benefited from “brisk domestic exploration activities by the oil and gas industry.”

BP finishes ‘06 on a weak note

The British oil giant, BP’s () Q4 net profit fell 22% to $2.88 bil, missing expectations, as revenue slipped 1.6% to $62.8 bil as it closed out a problem-plagued year. BP struggled last year as it was forced to shut half of a key Alaska pipeline due to corrosion, suffered production delays in the Gulf of Mexico and had its safety record blasted by a U.S. inquiry into a fatal Texas refinery blast. CEO John Browne took much of the blame and has announced he’ll retire early. BP fell nearly 1% to 63.25.

National Oilwell Varco, () a provider of oil field services and equipment, more than doubled Q4 profit to $1.35 per share, beating views by 29 cents. Revenue climbed 42% to $2.08 bil, above views. Strong demand for its rig technology products and oil field supplies helped the result. Shares rose 9.4%.

RETAIL

Wal-Mart sex-bias suit to proceed

A federal appeals court said the corporate giant must face a class-action lawsuit claiming that Wal-Mart discriminated against women in pay and promotions. The suit would cover as many as 1.5 mil current and former female workers and, if successful, could cost the company billions. The ruling upholds a federal judge’s decision. Wal-Mart rose 6 cents to 48.58.

Activist joins Home Depot board

The largest home improvement retailer, Home Depot () will give a seat on its board to Relational Investors, an investment group that wants to consider a leveraged buyout of Home Depot to generate shareholder value. The group threatened a proxy fight over the company’s direction, but under the agreement Home Depot will give a seat to Relational principal David Batchelder, who will drop the proxy challenge. Home Depot said it will oppose any move involving a sale of the company. Shares rose 0.6% to 41.27.

Urban Outfitters, () an apparel retailer, said Q4 same-store sales fell 5%. Shares rose 1.4% to 25.38.

DIVERSIFIED

Tyco beats, but offers no outlook

The conglomerate, Tyco () said Q1 earnings rose 15% to 45 cents a share ex items, edging past views by a penny. Revenue climbed 8% to $10.3 bil, above analyst forecasts. Tyco will split into 3 publicly traded companies, as it plans to spin off its health care and electronics divisions early in Q2. It didn’t issue a Q2 EPS outlook. Shares fell 1.9% to 32.59.

Emerson Electric’s Q1 tops views

The diversified manufacturer said earnings rose 15% to 55 cents a share, beating views by 2 cents. Revenue rose 11% to $5.1 bil vs. expectations of $4.99 bil. Sales from existing businesses rose 4%. Emerson () said 4 of its 5 segments had higher sales. The process management, industrial automation and network power segments reported double-digit revenue gains. Shares slid 1% to 45.12.

TRANSPORTATION

Northwest Air narrows Q4 loss

The bankrupt carrier cut its loss to $7 mil ex items, far less than the $386 mil it lost a year ago. Revenue rose 2% to $2.98 bil. Lower fuel costs and higher fares boosted results. Northwest Air will distribute about $44 mil to employees via its profit-sharing and performance-incentive payments, as well as holiday payments.

US Air () said Jan. traffic increased 4.7% on all 3 of its airlines US Airways, America West and US Airways Express. Capacity rose less than 1% as occupancy rose 2.8% to 73.3%. Shares slid 10 cents.

METALS

Metal Management falls on miss

The metals recycler, Metal Management () said Q3 earnings remained unchanged at 60 cents a share, falling short of views by 14 cents. Revenue increased 33% to $524 mil. The company blamed weak U.S. iron market demand, slower domestic stainless steel mill consumption and falling copper prices. Income from joint ventures declined to $357,000 from $3 mil a year ago. Excluding depreciation, costs of sales rose 36% to $471.7 mil. Shares fell 3% to 40.82.

Investors are a lot like dieters: they look to January as a fresh start. Profit taking last year left many flush with cash, and this, combined with the desire to take advantage of the more favorable tax treatment offered by long-term capital gains, suggests to us that investors are likely to plow this money back into the market. This logic has stood the test of time. The Stock Trader’s Almanac first observed that since 1945, whenever the S&P 500 advanced in January, it continued to...

For the Mail on Sunday’s stock picks read the . Sunday Telegraph Anglo-Dutch foods and household goods manufacturer has come under much criticism in recent months for failing to act in areas such as product innovation compared to rivals such as . Its top line growth has slowed and the company is seen as having an overly bureaucratic internal culture. But, Unilever owns some of the most well-known consumer brands on the market, with Dove Soap, Magnum ice cream and Flora margarine,...

The business software maker rose 3.9% to 40.05 after it bumped ‘08 fiscal views up to $710 mil-$720 mil, topping analysts’ projections of $711 mil. Salesforce is in Q4 of its ‘07 fiscal year. Salesforce.com () said it boosted forecasts due to the demand for its products and plans to launch a service called AppStore, which customers can use to buy and sell the company’s on-demand applications products to customers. Shares rose 3.9% to 40.05.

Is it a sour note for iTunes sales?

Sales at Apple’s music store are off 65% since Jan., according to an analysis of credit card transactions by Forrester Research. By contrast, the researcher said, sales of Apple’s () iPod music player are up fourfold for the period. Nielsen Soundscan said rival online digital music stores are struggling even more, posting 3 consecutive quarters of flat or declining revenue. Apple did not disclose revenue, but claimed that iTunes is making a profit. Apple fell 2.9% to 86.14.

HP chief plans more cost cutting

CEO Mark Hurd said the computer and printer maker will continue to trim expenses after a restructuring that slashed its work force by 10%. Hewlett-Packard () also will pursue new sales strategies to improve its overall position, he said. Hurd dismissed rumors that HP may buy security provider Symantec, () and said it will engage only in targeted mergers and acquisitions. HP forecast ‘08 EPS of $2.78-$2.98 vs. views of $2.88 and revenue of $101 bil-$103 bil, matching expectations. Shares fell 0.5% to 39.83.

Research In Motion, () the maker of BlackBerry devices, sued Samsung, claiming that the name of its new BlackJack smart phone is too similar to RIM’s BlackBerry label. RIM wants a court to block BlackJack sales. RIM fell 2% to 124.64.

TRANSPORTATION

United Airlines mum on rumors

The airline giant ignored speculation that the carrier would announce at an analysts’ meeting Tues. a merger with Continental or Delta Air Lines. United () CEO Glenn Tilton said simply that he favored industry consolidation; he declined to speculate on what United might do. Published reports suggested United would announce a deal with Continental () or Delta. US Airways’ recent $8 bil bid for Delta also fueled speculation. United fell 3% to 43.24 and Continental tumbled 5.6% to 42.88.

Giant Airbus A380 cleared to fly

The largest airliner in the world, the A380, was declared safe by U.S. and European aviation associations after 6 years of development problems. Wiring problems with the double-decker behemoth, which can be configured to hold 853 passengers, sent Airbus into financial and management turmoil and cut a quarter off the European aerospace group’s market value. The safety rating comes a month late, as FedEx canceled its order and switched to Airbus rival Boeing’s 777.

11 mil United Airlines shares were sold for $40.58 each by Pension Benefit Guaranty, the federal group that assumed control of several United pension funds last year.

Continental Airlines () said passenger traffic rose 3.3% in Nov. and projected a 1%-3% rise for Dec.

Midwest Air Group, () which operates passenger airlines Midwest Airlines and Midwest Connect, said its Nov. passenger traffic rose 13.2%, capacity climbed 6.2% and occupancy increased 4.2 percentage points to 74%.

Copa Holdings () said Nov. traffic rose 28.4% and capacity climbed 18.3% as occupancy edged up 5.9 percentage points to 75.8%. Shares fell 2.4% to 44.85.

CHEMICALS

Scotts Miracle-Gro lifts outlook

The lawn and garden company, Scotts Miracle-Gro () projected ‘07 profit of $2.91-$2.96 a share, topping expectations of $2.88. Scotts Miracle-Gro forecast ‘07 revenue of $2.92 bil-$2.97 bil, also above analysts’ view of $2.87 bil, representing an 8%-10% increase from this year. The company said it will return $750 mil to investors through a $250 mil stock buyback and a one-time cash dividend. It said buyback and dividend payout would be completed by March 31. Shares surged 5% to 53.39.

SERVICES

Sabre agrees to $4.5 bil buyout

The operator of the Travelocity Web site said it has accepted a takeover offer from a private consortium led by Silver Lake Partners and Texas Pacific Group. The deal amounts to $32.75 a share; the equity funds will assume roughly $550 bil in debt. Sabre () has about 9,000 employees and had ‘05 sales of $2.52 bil. The Sabre sale comes a week after rival Worldspan was sold to online travel planner Travelport for $1.4 bil. Sabre rose 5% to 31.96.

MACHINERY

Agco falls as outlook disappoints

The manufacturer of farming equipment slid 3.8% to 31 after it forecast a 5%-10% decline in S. American sales and flat sales in N. America and Europe. Agco, which makes tractors and combines, predicted ‘07 sales would climb 3%-5% to $5.4 bil, just shy of views. It sees ‘07 earnings climbing 30%, less than a 34% gain analysts project. Agco’s weak outlook appeared to drag down rival Deere, () which fell 2.7% to 94.49.

DIVERSIFIED

Siemens scandal hurts outlook

The German company, Siemens () lowered its ‘06 net income forecast by 2.6% to $4 bil due to charges tied to a corruption scandal and taxes. Siemens workers are accused of embezzling $264 mil. Its CFO said the company also uncovered over $500 mil in suspicious payments that are possibly tied to bribes. Siemens rose 0.5% to 97.52.

RETAIL

Source of E. coli still unknown

A fast-food chain run by Yum Brands () said health experts found no illnesses linked to the strain of bacteria found in onions at a N.Y. Taco Bell. The CDC said 64 Taco Bell customers in 5 states were sickened by E. coli, but they have not been able to pinpoint the source. As a precaution, Taco Bell changed produce suppliers in N.Y., N.J., Pa., and Del. Yum fell 2.6% to 57.98.

Safeway () forecast ‘07 EPS of $1.90-$2 vs. views of $1.92. Shares rose 2.2% to 33.17.

REGULATION

Justice to cool corporate tactics

The Justice Dept. said it will back off its tough legal offensives spurred by past corporate scandals by requiring prosecutors to get approval from Washington before seeking confidential information between firms and their lawyers. Under the new policy, the government no longer can penalize corporations that pay attorneys’ fees for their employees.

This column was originally published on RealMoney on Feb. 9 at 12 p.m. EST. It’s being republished as a bonus for TheStreet.com readers. For more information about subscribing to RealMoney, please click here. Over the last couple of weeks I have consistently argued (in columns and the Columnist Conversation) that the European finance ministers were setting up the market for disappointment if the G7 statement does not single out Japan or express concern over the weakness of the yen....

Ambassador William Brownfield played down a warning from Venezuelan President Hugo Chavez that he could be expelled, and repeated a U.S. demand that firms affected by Chavez’s nationalization efforts be compensated. Still, the envoy said, “my suitcases are packed and ready.” JAPAN: PM Shinzo Abe told Parliament that it must change its pacifist constitution, increase its security role and free itself of World War II’s political remnants. CHINA: Police have detained...

Sun Micro, () the maker of enterprise computers said after hours that it earned 3 cents a share in Q2, reversing a 7-cent loss a year ago and surpassing views by 2 cents. Revenue rose 7% to $3.57 bil, also topping forecasts. Sun also said it is selling to KKR Private Equity Investors $700 mil of debt that can be converted into stock. Sun said it will use the money to fund future growth. Shares, which fell 1.6% to 5.66 during the day, rose in late trading.

U.S. investigators question Jobs

Apple () CEO Steve Jobs answered an inquiry by U.S. regulators regarding stock option backdating at his company. The maker of the popular iPod music player, computers and yet-to-be released cell phone agreed in Nov. to take an $84 mil charge for misdating options. Apple is one of more than 160 companies under investigation for backdating options. Shares fell 1.3% to 85.70.

Baidu wins OK to report news

The Chinese Internet search leader won gov’t approval to become an online news portal, industry sources said. Media Partners Asia said the move will enable it to better compete against Google. () China keeps tight controls on news reporting. Baidu () rose 1.8% to 124.55.

DIVERSIFIED

Johnson & Johnson beats views

The health care giant, Johnson & Johnson () said Q4 earnings increased 16% to 81 cents a share ex items, edging past views by 2 cents. Revenue rose 9% to $13.68 bil. J&J’s consumer health care division jumped 11%, its pharmaceutical unit rose 9% and the medical devices unit grew 7%. Strong sales for consumer products overseas offset the cost of J&J’s $217 mil acquisition of Pfizer () Consumer Healthcare in Q4. J&J expects 2007 EPS of $4.05-$4.10 ex items vs. views of $4.04. Shares fell 1% to 66.50.

United Tech tops views, sees low

The maker of air conditioners, elevators, aircraft engines and Sikorsky helicopters said its Q4 earnings rose 40% to 87 cents a share, beating views by 2 cents. United Technologies’ () sales rose 14% to $12.8 bil, beating views of $12.2 bil. It said robust demand for aerospace and commercial construction offset a weak housing market. United Technologies sees ‘07 EPS of $4.05-$4.20, the midpoint below views of $4.16. Shares rose 3.2% to 66.14.

METALS

AK Steel soars on profit forecast

The Ohio-based steel company said it lost 45 cents a share, including a $133.2 mil charge. AK Steel did not provide a per-share breakdown of the charges. Analysts were expecting the company to post a 19-cents-a-share profit, excluding charges. AK Steel’s sales rose 14% to $1.58 bil, beating $1.47 bil views. But AK Steel’s stock surged 9.7% to 18.40 after it projected an ‘07 operating profit of $60-$65 a ton on steel shipments, more than double the $27 a ton it earned last year.

Steel Dynamics, () a steel maker, said after hours that Q4 EPS jumped 56% to $1.03, matching views. Net sales rose 47% to $840 mil. Shares dipped in late trading.

TRANSPORTATION

United chilled by winter weather

The airliner’s Q4 earnings losses lessened to 55 cents a share, down from a $2.58 loss last year but 20 cents worse than expected. The company blamed winter storms for grounding 4,000 flights in December, dampening earnings. The airliner’s revenue rose 5% to $4.6 bil, but fell shy of expectations. United Airlines () did turn around an operating loss of $182 mil a year ago to a $23 mil gain and has earned 14 cents a share since emerging from bankruptcy 11 months ago. Shares fell 8.1% to 44.81.

Tata Motors boosts truck sales

India’s No. 1 automaker, Tata Motor () and a subsidiary of Tata Group, the country’s top business conglomerate, raised net profit 12% to $116 mil, above views. Sales jumped 37% to $1.5 bil, driven by strong sales of its trucks and buses. Tata Motors sold 141,827 vehicles, up 28% from a year ago. In 2007, under a joint venture with Italian carmaker Fiat, Tata will build cars and engines for the overseas market.

Burlington Northern beats views

The railroad operator said its Q4 earnings rose 26% to $1.42 a share, beating views by 3 cents. Burlington Northern Santa Fe saw revenue increase 9% to $3.9 bil, topping $3.7 bil estimates. Revenue in its coal shipments grew 22% while agriculture shipments jumped 9% on the strength in corn and fertilizer. Shares rose 3.9% to 80.10.

Northwest Airlines estimated that unsecured claims against it total $8.75 bil-$9.5 bil. The No. 5 U.S. airline has been in bankruptcy since Sept. ‘05.

AEROSPACE

Precision lifted by aircraft demand

Precision, () the maker of metal components and products for several industries said Q3 earnings soared 68% to $1.15 a share, passing views by 17 cents. Revenue shot up 61% to $1.38 bil. Sales of its aerospace and industrial components rose 13% amid a boom in commercial and military plane-building. Precision Castparts’ sales of its fastener products climbed 27% to $254.5 mil. Shares rose 6.2% to 85.45.

BUILDING

Jacobs Engineering lifts outlook

Jacobs, () the provider of technical services for engineering and construction projects said Q1 earnings rose 40% to $1.01 a share, beating views by 12 cents. Revenue climbed 20% to $2.02 bil. Jacobs said backlog increased 16% to $10.4 bil, including a technical professional services component of $5.5 bil, up 22%. It raised its 2007 profit forecast to $4-$4.30 a share vs. views of $3.96. Shares surged 9.2% to 87.85.

D.R. Horton beats, outlook cloudy

The nation’s largest home builder by units sold said its Q1 earnings dropped 49% to 50 cents a share, beating views by 17 cents. D.R. Horton’s sales fell 28% to $2.3 bil, missing $2.8 bil views. The company did not provide guidance, but said that the slumping housing marking will “remain challenging.” In a possible sign that the worst may be over, the builder said its cancellation rate was 33%, an improvement from 40% in the previous quarter. Shares rose 4.6% to 28.37.

WCI Communities, () a luxury home builder, expects to post a Q4 loss due to higher defaults in traditional and tower home building, impairment charges of $75 mil-$90 mil and write-offs of land options of $25 mil-$30 mil. Analysts expect a Q4 EPS gain of 42 cents. Shares fell 4.4% to 20.79.

TELECOM

Alcatel-Lucent falls on warning

The French telecom equipment maker, Alcatel-Lucent () said Q4 operating income remained flat at $742.5 mil, while revenue dropped 16% to $5.72 bil. The company warned that growing pains, tougher competition and customers turning to its rivals because its product line was not ready hurt Q4 results. Alcatel’s $11.6 bil acquisition of U.S.-based Lucent was dependent on the North American market for a larger share of its revenue. But instead the merger created short-term uncertainty. Alcatel fell 7.3% to 13.15.

Avaya profit meets, but sales miss

The communication equipment and software maker said Q1 profit climbed 8.3% to 13 cents ex items, meeting views. Sales edged up 2.5% to $1.28 bil, falling short of expectations. Avaya () said it experienced delays of delivering its products due to changes made in its warehousing and distribution operations. It expects those disruptions hurt Q1 revenue by about $20 mil. Shares rose 0.7% to 13.39.

CONSUMER

Energizer powers past forecast

The battery maker, Energizer () jumped 10.9% to 83.80 after it said Q1 earnings rose 17% to $2.12 a share ex items, besting views by 20 cents. Revenue grew 9% to $959.2 mil, offsetting higher zinc costs. Its battery unit’s sales rose 5% in North America and 13% internationally, while sales of razors and blades increased 9%. The company said nickel, copper and other material costs will remain high through 2007, anticipating unfavorable material costs of $65 mil-$75 mil for the year.

FINANCE

BlackRock tops, boosts outlook

The asset manager’s Q4 earnings rose 33% to $1.61 a share ex items, beating view by 8 cents. Revenue surged to $1.02 bil, up from $369 mil a year ago and easily topping Wall Street’s projections. The surge was primarily due to its acquisition of Merrill Lynch’s asset-management business. BlackRock () raised its ‘07 EPS guidance to $7.25-$7.55, well above analysts’ projections of $7. Shares rose 4% to 176.15.

OFFICE EQUIPMENT

Xerox tops, sales beat views

The copier and printer maker raised Q4 profit 18.8% to 38 cents a share ex items, beating views by a penny. Revenue rose 3% to $4.38 bil, above views. Xerox () sold its corporate headquarters in Dec. for $54.8 mil following several years of downsizing. It expects Q1 EPS of 21-23 cents, in line with views. Xerox offered no specific guidance for ‘07 except to state that its EPS would grow. Shares fell 1% to 16.53.

DAKAR, Senegal Rebels in eastern have killed and eaten two , conservationists said Wednesday, adding they feared more of the endangered animals may have been slaughtered in the lawless region. Only about 700 mountain gorillas remain in the world, 380 of them spread across a range of volcanic mountains straddling the borders of Congo, Rwanda and Uganda in Central Africa. One dismembered gorilla corpse was found Tuesday in a pit latrine in Congo’s , a few hundred yards from a park patrol...