Comments from China Boost Stocks

Word on the Street

• An investment firm and its founder and chairman, Arthur Samberg, have agreed to pay a total of $28 million to settle a Securities and Exchange Commission complaint accusing them of insider trading involving Microsoft (MSFT) shares. The settlement follows a protracted congressional and SEC investigation into wrongdoing at Pequot.
• GDP Growth Revised Down – Economic growth in the first quarter was a little weaker than expected. The Commerce Department revised the nation’s first-quarter GDP growth rate down marginally on Thursday, from a 3.2% to a 3% increase.
• Tiffany & Company (TIF) more than doubled its fiscal first-quarter to $64.4 million across most of its markets and product lines. Gross profit rose to 57.8% of sales from 55.9% in the year-earlier period, and operating expenses were kept in line, rising only 13%.
• Treasury Secretary Timothy Geithner is finishing up his a series of visits with top British and German officials. Geithner said that the United States and Europe have a shared interest in creating a global approach to financial system restructuring.
• Mortgage rates have fallen to the lowest level of the year thanks to instability in financial markets overseas. The average U.S. rate for a 30-year fixed mortgage fell to 4.78 percent for the week ending today from 4.84 percent, according to Freddie Mac (FRE).
• Emerging markets for ketchup, baby food, and nutritional beverages helped fiscal fourth-quarter earnings rise at HJ Heinz Co. (HNZ). The world’s largest food processing companies said net income rose 9.8 percent during the fourth quarter.
• Costco 3Q Earnings Rise – Costco Wholesale Corp. (COST) posted third-quarter profit that exceeded analysts’ projections. Profit jumped 46% from last year, helped by lower costs and higher sales.
• Initial jobless claims declined by 14,000 to 460,000 last week. The four-week moving average rose 2,250 to 456,500, and it has essentially flat-lined for the past month after declining for much of 2010 so far.

Other Interesting Tidbits

• What’s Behind Wall Street’s Turmoil – With the Dow below 10000, leading economists Nouriel Roubini and Ian Bremmer continue their conversation about how America can recover.
• Morningstar’s Founder Sees Opportunities – With the credibility of many financial information firms damaged, Joe Mansueto is exploiting his company’s reputation as an “investor advocate”.
• 6 Apps for Your Next Road Trip – Phone apps to stay safe, be entertained and find the nearest clean bathroom.
• Is Microsoft Irrelevant? – Apple is now worth more than the software giant. Can Microsoft catch up in smartphones?