US-BUSINESS Summary
Stocks rally on data; Cisco earnings lift techs
NEW YORK - U.S. stocks gained sharply on Thursday after an expansion in business productivity and a fall in jobless claims boosted investor confidence about the economy, while Cisco led gains in tech shares. U.S. non-farm productivity rose more than expected in the third quarter as companies squeezed more output from a smaller pool of labor, while fewer U.S. workers filed new jobless insurance claims than forecast last week -- hitting a 10-month low.
New arrests in Galleon insider-trading case
NEW YORK - Nine more people have been arrested in the Galleon Group insider-trading scandal, bringing to 15 the number charged in the biggest hedge fund-related case in history. The new arrests include Wall Street traders, lawyers and hedge fund managers, according to complaints filed in federal court in New York on Thursday,
Productivity surges, job growth should follow
WASHINGTON - U.S. business productivity grew at its fastest clip in six years in the third quarter and new claims for jobless aid fell to a 10-month low last week, suggesting the labor market may be starting to bottom out. The Labor Department said on Thursday that productivity surged at a 9.5 percent annual rate, the quickest pace since the third quarter of 2003, as companies squeezed more output from a smaller pool of labor to hold the line on costs.
Retail sales suggest tepid holiday season
NEW YORK - More than half of U.S. retail chains posted October sales that fell short of Wall Street's heightened expectations, raising doubts about a widespread recovery for the holiday season. Department store chains and teen retailers in particular disappointed investor expectations, while such disparate companies as apparel retailer Gap <GPS.N> and luxury store chain Saks Inc <SKS.N> performed better than hoped as consumers return to spending selectively.
SEC official worried about "naked access"
NEW YORK access," Securities and Exchange Commission Commissioner Elisse Walter told Reuters.
RIM stock climbs on share buyback
TORONTO - BlackBerry maker Research In Motion Ltd <RIM.TO> <RIMM.O> announced a share buyback worth up to $1.2 billion on Thursday, but analysts said competitive concerns will continue to exert pressure on the company's stock. RIM's shares climbed 3.2 percent after the Waterloo, company said it would repurchase up to 21 million shares, or 3.6 percent of outstanding common shares on Nasdaq. RIM hasn't bought back any stock in the last year.
Thomson Reuters CEO says worst over
NEW YORK - Thomson Reuters Corp <TRI.TO> <TRI.N> reported that quarterly revenue in its markets and legal businesses fell as customers cut costs in the wake of the financial crisis, but its CEO said the worst was over. The news and financial data publisher, whose shares fell about 1 percent, said on Thursday that third-quarter profit beat Wall Street estimates, helped by foreign currency rates and cost savings.
BNY Mellon's Kelly shoots down BofA CEO talk
CHARLOTTE, North Carolina - Bank of New York Mellon Corp <BK.N> CEO Bob Kelly told the bank's senior managers he is not interested in the top job at Bank of America Corp <BAC.N>, defusing speculation that he would leave his current post. Kelly, in an email on Thursday, noted recent press reports linking him with Bank of America's search for a successor to Ken Lewis, who is stepping down as CEO at the end of the year.
Mortgage rates drop below 5 percent: Freddie Mac
NEW YORK - U.S. mortgage rates fell below 5 percent for the first time in three weeks, a key level that may boost home loan demand and help the hard-hit housing market recover, a closely watched mortgage survey showed Thursday. Interest rates on U.S. 30-year fixed-rate mortgages averaged 4.98 percent for the week ending November 5, down from the previous week's 5.03 percent, according to a survey released on Thursday by home funding company Freddie Mac <FRE.P> <FRE.N>.
Oil falls below $80; demand outlook uncertain
NEW YORK - Oil fell to below $80 a barrel on Thursday, as doubts about the pace of economic recovery dented optimism toward a rebound in fuel demand. U.S. crude for December fell 56 cents to $79.84 at 2:07 p.m. EDT. London Brent crude fell 64 cents to $78.25 a barrel.