UPI NewsTrack Business

U.S. markets make strong headway Monday

NEW YORK, Nov. 9 (UPI) -- U.S. markets rose sharply Monday with Ford Motor Co. and General Electric getting a jump start on the week with quick gains.

Ford shares rose 4.52 percent while GE shares rose 3.39 percent following a Friday in which the Dow Jones industrial average ended the week above 10,000 points.

SprintNextel shares soared, gaining 17.54 percent while the Dow Jones industrial average put up numbers remarkably similar to Thursday, when it gained 203.82 points.

By close Monday, the Dow added 203.52 points, 2.03 percent, to 10,226.94, a high for the year. The Standard & Poor's 500 rose 23.78 or 2.22 percent to 1,093.08. The Nasdaq composite index gained 41.62 or 1.97 percent to 2,154.06.

On the New York Stock Exchange, 2,541 stocks advanced and 496 declined on a volume of 4.4 billion shares traded.

The benchmark 10-year U.S. Treasury note rose 6/32 to yield 3.48 percent.

The euro rose to $1.4996 from Friday's $1.4847. Against the yen, the dollar rose to 90.014 yen from Friday's 89.94 yen.

In Japan, the Nikkei 225 index rose 0.2 percent, 41.015, to 9,808.99.

In Britain, the FTSE 100 rose 1.8 percent, 92.46, to 5,235.18.

-0-

GM gives go ahead to Cadillac Converj

DETROIT, Nov. 9 (UPI) -- U.S. auto giant General Motors Co. has given the green light to production of an electric Cadillac called the Converj, sources close to the company said.

No production schedule has been set, but the go-ahead came after a Nov. 2 presentation to the GM board of directors, The Detroit News reported Monday.

Analysts said a premium brand electric vehicle would help defray production costs for GM's move to electricity-powered cars. GM has already spent $1 billion researching electric vehicles, much of it focused on the Volt, which is scheduled to go into production late next year.

Rebecca Lindland, director of industry research at IHS Global Insight said, "Cadillac needs as much excitement in its portfolio as possible, so I think it's a good strategy for them."

"A snazzy-looking little car like that would be cool," California Cadillac dealer Scott Allen said.

-0-

Northrop Grumman to sell TASC for $1.6B

LOS ANGELES, Nov. 9 (UPI) -- U.S. defense contractor Northrop Grumman said it would sell its adviser services division TASC Inc. to an investor group for $1.65 billion.

The company said the deal to sell the division to General Atlantic LLC and affiliates of Kohlberg Kravis Roberts & Co. was subject to regulatory approval, but was expected to close by the end of the year.

"This transaction is in the best interest of Northrop Grumman's customers, employees and shareholders," said Northrop Chairman and Chief Executive Officer Ronald Sugar.

The sale "reflects Northrop Grumman's desire to align quickly with the government's new organizational conflict of interest standards, while preserving TASC's unique organizational culture and its status as the advisory services employer of choice," he said.

TASC Inc. employs 5,000 and is expected to generate revenues of $1.6 billion in 2009.

-0-

Michigan winning some job tug-o-wars

LANSING, Mich., Nov. 9 (UPI) -- Michigan Gov. Jennifer Granholm is finding some success tempting Massachusetts companies to relocate in the Great Lakes State, officials said.

Massachusetts Gov. Deval Patrick tipped his hat to the rival governor saying Granholm "busted my chops," by luring battery company A123 to Michigan, The Boston Globe reported Monday.

In addition, using tax breaks combined with federal help, Michigan has persuaded alternative fuel producer Mascoma to build a $200 million factory in Kinross, Mich. Massachusetts solar panel maker Evergreen Solar also choose Michigan for a new factory, the newspaper said.

Granholm said she is doing "what you've got to do," to lure job-producing companies to her state. Patrick, in return, said Massachusetts "just couldn't match" incentives offered by Michigan, which has suffered from a sharp downturn in the automotive industry.

Nick d'Arbeloff, head of the New England Clean Energy Council, said, "the federal government is being very generous with any company or organization that has some means to help Michigan up from its dire circumstances."

Out of $2.4 billion Department of Energy grant money targeted for production of electric vehicles more than $1 billion went to projects that would help Michigan go from rust belt to green belt, the newspaper said.