CONSUMER CONFIDENCE FALLS: The Conference Board reported Tuesday that its consumer confidence index dropped more than nine points to 87.3 as worries about the job market have intensified, following a rise in January to a revised reading of 96.4. That reading was the index's highest since mid 2002. Analysts had expected a decline, but to no lower than 92.3. "A lot of it has to do with the labor market and the fact that we're not seeing the kind of pickup in jobs that consumers had originally expected," said Scott Hoyt, director of consumer economics for Economy.com in West Chester, Pa.
PARMALAT USA SEEKS CHAPTER 11: Parmalat USA Corp., the U.S. subsidiary of fraud-ridden dairy giant Parmalat Finanziaria, filed for bankruptcy protection Tuesday, saying it needs to obtain financing quickly but will continue operating normally. During the Chapter 11 reorganization, Parmalat USA managers will work with a financial adviser on long-term solutions, which include the possible sale of its U.S. dairy business, the company said in a statement. The company has obtained $35-million in short-term financing from GE Capital Corp.
BRITAIN MAY PRIVATIZE BBC: A report commissioned by Britain's opposition Conservative Party calls for the British Broadcasting Corp. to be broken up and weaned away from dependence on license fees paid by television viewers. The BBC's charter expires at the end of 2006, and the British government plans to publish its proposals for renewing the charter later this year. The report, released Tuesday, suggested that after 2010, when Britain switches to exclusively digital TV transmission, the BBC should be funded by subscription fees and ads.
FIRST ADVANTAGE LOSES EXEC: First Advantage Corp. of St. Petersburg said Timothy Fargo has resigned as president of its Omega Insurance Services subsidiary to pursue other interests. First Advantage acquired the St. Petersburg insurance investigation company in September 2003. Fargo started Omega in 1996. His early partner was Richard Taffet, who became Omega's vice president and will succeed Fargo as president.
SYKES' INVESTORS NERVOUS: Sykes Enterprises' stock price fell sharply in heavy trading Tuesday before recovering to close at $7.10, down 7 percent. The fall came a day after Sykes, a Tampa customer-service outsourcer, declined to forecast full-year financial results for 2004 and predicted first-quarter earnings ranging from a loss of two cents per share to a profit of five cents. Also Tuesday, two Wall Street analysts reiterated their "buy" ratings on Sykes' stock, but one of them, Michael Coady of Sidoti & Co., cut his 2004 earnings forecast for Sykes by two-thirds, to 9 cents per share.
GOLDMAN TO PAY $45.5-MILLION: Investment and brokerage giant Goldman Sachs & Co. will pay $45.5-million to settle charges in the New York Stock Exchange specialist investigation and is cooperating with state and federal investigations into improper mutual fund activities, according to the company. Goldman Sachs subsidiary Spear, Leeds & Kellogg Specialists LLC was one of five firms that settled with the Securities and Exchange Commission last week for $240-million. The firms were accused of placing their own trades ahead of customers' business on the floor of the NYSE.
SEC MAY BAN FLEET UNIT: FleetBoston Financial Corp.'s mutual fund group may be barred from managing funds by the Securities and Exchange Commission, the second time such a penalty has been sought in the federal and state inquiries of improper trading. The SEC and New York Attorney General Eliot Spitzer accused Fleet's Columbia fund management and distribution units of allowing $2.5-billion of short-term trades by investors including hedge funds that hurt other holders and violated prospectuses.
MICROSOFT FORMS ALLIANCE: Microsoft Corp., the world's largest softwaremaker, formed an alliance with Internet service providers to make the Web safer from viruses and hackers, and is working on a "Caller ID" system to block unwanted e-mail. Microsoft joined Internet companies such as Time Warner Inc.'s America Online, TeliaSonera AB and Deutsche Telekom AG's T-Online to form the group, chairman Bill Gates said at the RSA Security conference in San Francisco.
DISNEY FIGHTS POOH SUIT: A lawsuit brought by Steven Slessinger Inc., Tampa residents and owners of Winnie the Pooh merchandising rights should be thrown out because they withheld, stole and possibly manufactured documents over the 13 years the case has been pending, Walt Disney Co. attorney Daniel Petrocelli said Tuesday in a hearing. Unless a judge agrees with Disney's argument, a trial is scheduled for January. SSI lawyer Eric Ferrer said the company did not steal documents, arguing that Disney was making that claim only in an effort to delay a trial on the merits of SSI's lawsuit.
BofA BUYS DIRECT ACCESS: Bank of America Corp. said it bought Direct Access Financial Corp., a maker of securities trading software, to bolster its new electronic trading services unit. Financial terms weren't disclosed. Direct Access will become a unit of the bank's securities unit, Banc of America Securities LLC, which has started an electronic trading services group.
CYPRESS GARDENS DEAL COMPLETED: Cypress Gardens, one of Florida's oldest tourist attractions, got a new owner Tuesday who promised to rejuvenate the park of botanical gardens and water ski shows with thrill rides and a water park to appeal to younger visitors. Kent Buescher, owner of Wild Adventures in Valdosta, Ga., closed on the 68-year-old property Tuesday. The park's new name, Cypress Gardens Adventure Park, captured what will be Buescher's efforts to expand the park's demographic appeal beyond senior citizens to include families with children.
4-WEEK T-BILL RATE RISES: The U.S. Treasury sold $19-billion worth of its four-week securities at a discount rate of 0.935 percent, up from 0.895 percent during the previous two weekly auctions, for the highest since 0.935 percent Dec. 2.
Earnings:
The Home Depot Inc.: The nation's largest home improvement store chain said a nearly 39 percent jump in fourth-quarter profit is proof its strategy to pump billions into retraining employees, improving customer service and renovating its stores is working. The earnings beat Wall Street expectations.
Federated Department Stores Inc.: The department store operator, whose stores include Macy's and Burdines, reported a 35 percent increase in fourth-quarter earnings, helped by strong holiday-season sales and good inventory management. The company's results exceeded Wall Street expectations.
Clear Channel Communications Inc.: The nation's largest radio station owner posted nearly flat profits in the fourth quarter Tuesday, falling short of Wall Street expectations because of weak demand for advertising on local stations.
H.J. Heinz Co.: Strong ketchup sales and new products helped boost earnings by more than 33 percent in its third quarter, the company reported Tuesday. The results were in line with expectations.
