Markets head down Friday
NEW YORK, Jan. 28 (UPI) -- U.S. markets headed lower Friday after the Commerce Department said the gross domestic product grew less than expected in the fourth quarter.
The GDP rose 3.2 percent, the department said. Economists had been predicting growth of around 3.5 percent.
In late morning trading, the Dow Jones industrial average shed 127.57 points, 1.06 percent, to 11,862.30. The Standard & Poor's 500 index lost 17.26 or 1.33 percent, to 1,282.28. The Nasdaq composite index dropped 62.26, or 2.26 percent, to 2,693.02.
The benchmark 10-year treasury note rose 3/32 to yield 3.38 percent.
The euro fell to $1.3628 from Thursday's $1.3738. Against the yen, the dollar fell to 82.28 yen from Thursday's 82.88 yen.
The Nikkei 225 index in Tokyo lost 1.13 percent, 118.32, to 10,360.34.
Ford posts $6.6 billion earnings for 2010
DEARBORN, Mich., Jan. 28 (UPI) -- Ford Motor Co. reported its largest profit in 11 years Friday -- $6.6 billion in 2010.
The last time Ford posted profits that size was 1999, when its Explorer was the best-selling sport utility vehicle in the country. The auto industry is looking at a vastly different market now, with research geared toward finding the breakthrough hybrid or all-electric vehicle to satisfy government mandates and public demand for safe, reliable but cheap transportation.
Ford said it had earned enough last year to reward hourly employees with an average bonus of $5,000, the Detroit Free Press reported.
i "We've always said that all our stakeholders will benefit from the growth of the company and improving profitability, and I think this is a specific reflection of that," said Lewis Booth, the company's chief financial officer.
"It's a delight to be paying profit-sharing," he said.
During the year, Ford cut its debt from $33.6 billion to $19.1 billion. It also gained market share, partly due to recalls that plagued rival Toyota.
"We've fixed the fundamentals of the business … and we've continued to make progress on the balance sheet," Booth said.
GDP rose in fourth quarter
WASHINGTON, Jan. 28 (UPI) -- The U.S. government said Friday the nation's economic output picked up steam in the fourth quarter, rising 3.2 percent compared to the third quarter.
The preliminary estimate puts economic growth at a faster pace than the previous quarter when the gross domestic product rose 2.6 percent.
As expected, consumer spending was the primary contributor to fourth quarter growth, rising 4.4 percent to notch the biggest increase in the category since the first quarter of 2006. In addition, imports, which contributes negatively to the nation's output, declined sharply in the quarter, the report said.
Although the figure is the first of three estimates, which firms as more data become available, the Bureau of Economic Analysis said the GDP product for the year rose 2.9 percent after dropping to 2.6 percent in 2009 compared to 2008.
The bureau said prices for goods and services rose 2.1 percent in the fourth quarter, a jump from 0.7 percent in the previous quarter. Core prices, which exclude food and energy, rose 1.1 percent.
For the year, increased exports and gains in commercial fixed investment, especially equipment and software, were primary contributors. Consumer spending and inventory investment also rose, the bureau said.
Digital topped paperbacks at Amazon
SEATTLE, Jan. 28 (UPI) -- U.S. retailer Amazon said Friday it sold more digital books in the fourth quarter than traditional paperbacks.
Amazon founder and Chief Executive Officer Jeff Bezos said the surge in digital book sales came "after selling millions of third-generation Kindles with the new Pearl e-ink display during the quarter," Internet Retailing reported.
Bezos said digital books overtaking paperbacks came "sooner than expected."
Amazon passed another milestone October through December, posting its first quarter with more than $10 billion in sales.
Amazon's sales rose to $34.2 billion for the year, a 40 percent jump over 2009, the company said.
