US Stocks: Industrials, Financials Weak; Tech Bounces

Date: Mon, 02 Feb 2009 17:01:46 -0500

US Stocks: Industrials, Financials Weak; Tech Bounces

Industrial and financial stocks fell again Monday as the stock market
awaits hints about the outlook of the banking system, economic growth
and corporate earnings. Technology stocks, which are less dependent on
financing than corporations in most sectors, were strong. The stock
market remains on tenterhooks, waiting for the latest Treasury
Department plan to rescue the banking sector. Treasury Secretary
Timothy Geithner will divulge that plan next
week, according to reports. Currently, traders are flying blind,
because many corporations are refusing to give financial projections
in the absence of a specific economic-recovery plan, which in many
cases will be decisive for their earnings prospects.

MACY'S JOINS THE LAYOFF PARADE: 7,000 JOBS TO BE SHED IN REORG

Joining the parade of companies laying off thousands, department-store
giant Macy's announces its will cut loose 7,000 jobs in a
restructuring while slashing its quarterly dividend by 62%.

EARNINGS OUTLOOK: MOTOROLA'S WIRELESS FUTURE IN FOCUS

Investors already know Motorola Inc. had a poor fourth quarter. What
they want to know Tuesday when Motorola reports full results is if the
company will suffer even more in the first few months of 2009 -- and
beyond.

ECONOMIC REPORT: U.S. REAL CONSUMER SPENDING DROPS SIXTH TIME IN SEVEN MONTHS

As U.S. real consumer spending falls for the sixth time in seven
months, Americans' savings rate grows, December data compiled by the
Commerce Department show.

GM SEEKS $7 BILLION IN TAX RELIEF FROM CONGRESS: REPORT

General Motors Corp. is struggling to avoid a $7 billion tax
associated with a U.S. Treasury Department plan to give much of the
troubled company's outstanding stock to debt holders, the United Auto
Workers union and the federal government, according to a published
report.