U.S. stocks recover from IBM earnings forecasts
NEW YORK, Jan. 19 (UPI) -- U.S. stock indexes initially fell Friday, after IBM's earnings forecasts below expectations capped a week of high-tech earnings disappointments, but then began recovering.
The Dow Jones industrial average rose 5.85 or 0.05 percent to 12,573.78 in late-morning trading. The Standard & Poor's 500-stock index rose 4.18 or 0.29 percent to 1,430.55. The technology-heavy Nasdaq composite index gained 6.91 or 0.28 percent to 2,450.12.
Dow component IBM fell 4.18 or 4.2 percent to $95.27 after the company said its fourth-quarter net income would rise 11 percent and its revenue would rise 7.5 percent. Investors had hoped the earnings would have been stronger.
Japan's Nikkei Index finished the day 0.4 percent lower at 17,310 as tech shares fell in parallel with tech-stock declines on Wall Street.
The 10-year U.S. Treasury note slipped 7/32, or $2.19 per $1,000 invested, to yield 4.78 percent. The 30-year bond fell 8/32, yielding 4.86 percent.
The dollar was at 121.36 yen from 121.21 yen at Thursday's close. The euro was at $1.2944 from $1.2965 Thursday.
Virgin America makes 'sweeping changes'
BURLINGAME, Calif., Jan. 19 (UPI) -- Virgin America Inc. has made changes to counter U.S. regulators' concerns about foreign control of the proposed low-cost airline.
To "remove any doubt" that its application complies with U.S. laws governing foreign ownership and control, Virgin America said Britain's Virgin Group would reduce its presence on the new carrier's eight-member board to two from three voting seats and relinquish veto or consent rights a minority investor normally has, Air Transport World reported Friday.
U.S. airlines must be controlled by U.S. citizens and foreign equity is restricted to 25 percent of voting stock.
The proposed Burlingame, Calif., airline also said it would put its voting shares into a trust approved by the U.S. transportation department, let the airline to fly without the Virgin name if necessary, remove Virgin Group head British entrepreneur Richard Branson from the Virgin America board and even fire Chief Executive Fred Reid, a former Delta Air Lines president Branson hired, if the U.S. Transportation Department requested.
Rival airlines have the opportunity to comment on Virgin America's latest application.
Developed world curbs oil use, agency says
NEW YORK, Jan. 19 (UPI) -- Oil consumption in the developed world has fallen for the first time in more than 20 years, the Paris-based International Energy Agency says.
The 0.6 percent decline among the 30 member countries of the Organization for Economic Cooperation and Development may point to an end to the long rise in oil prices, The Wall Street Journal reported Friday.
The resulting shift could help oil-consumer economies at the expense of producers and exporters, the newspaper said.
Crude oil traded between $50 and $51 a barrel on the New York Mercantile Exchange Friday. It traded above $77 in July.
Demand for gas-guzzling sport-utility vehicles has also fallen, while investments in and sales of alternative fuels such as ethanol are booming, the newspaper said.
This has added to the fall in U.S. gasoline prices and to swelling inventories, which has been aggravated by the slide in crude-oil prices.
AAA said Friday the average U.S. retail regular-unleaded gasoline price was $2.196 a gallon, down 1.3 cents from Thursday. The U.S. energy department's Energy Information Administration said prices could get close to $2 a gallon by the end of this month or early in February.
IBM creates business-innovation institute
HOPEWELL JUNCTION, N.Y., Jan. 19 (UPI) -- IBM Corp. and business, government and education leaders have formed an institute to improve business competitiveness in the region north of New York City.
The Institute for Business Innovation seeks to take a leadership role in driving business innovation throughout the fast-growing Hudson Valley by creating academic-business-government collaboration, IBM Vice President and institute Executive Director Vincent Cozzolino says.
"Businesses nationwide are facing a competitive global economy with a lack of skilled workers," he says, adding the institute seeks "to be action oriented in helping affiliated businesses and organizations close innovation capacity and performance gaps and lead in their fields."
Directors include executives and business specialists from colleges and universities, high-tech and career-services companies, construction, healthcare and agriculture, an economist and a utility. It also includes a local U.S. congressman and state and county officials.
The New York-based Intelligent Community Forum said this week collaborations such as this create "intelligent communities" that are "role models for the world's best practices in creating competitive local economies and vibrant societies."
