Today's Headlines

Bloomberg:
- The risk of owning the debt of European financial companies fell to the lowest level since July as credit-default swap traders bet that the worst losses from subprime mortgages are known.
- Mortgage applications in the US rose 2.4% last week, as purchases gained for the first time in three weeks and refinancing rebounded.
- The US economy will skirt recession even as the housing slump takes a bigger bite from growth, according to a survey of economists.
- A group called DraftGore.com placed an open letter in the NY Times urging former vice president and 2000 Democratic presidential nominee Al Gore to run again for the White House.
- Chrysler’s US factory workers went on strike today after the UAW union failed to reach a new contract agreement with the third-largest US-based automaker.
- Akamai Technologies(AKAM) and Limelight Networks(LLNW), makers of software that increases data-delivery speed on the Internet, rose in Nasdaq trading after an analyst rated the stocks “buy” in new coverage.
- Costco Wholesale Corp.(COST), the largest US warehouse club, reported fourth-quarter profit that exceeded analysts’ estimates as customers bought more fresh food and consumer electronics. The stock had its biggest gain in five years, rising 9%.
- Hovnanian Enterprises(HOV) climbed as much as 6.6% on speculation it may be bought by Toll Brothers(TOL), the largest US luxury homebuiler.

Wall Street Journal:
- The US economy will continue to expand at a moderate pace because export growth will counteract the housing slump and households won’t stop spending, said Mickey D. Levy, the chief economist at Bank of America(BAC).
- MGM Mirage(MGM) will build a new casino resort in Atlantic City.

NY Times:
- President Bush’s administration is developing new rules to allow more foreign guest workers into the country for farm labor.
- Marking a new form of collaboration between the entertainment industry and corporations seeking to highlight a social or political agenda, Electronic Arts(ERTS), the No. 1 video game publisher, plans to announce today that it has collaborated with BP Plc(BP), the energy company, in developing the latest installment of the hit SimCity computer game series.
- Intel Pushes Partners to Spend More on Online Ads.

Seeking Alpha:
- Goldman(GS) Boosts Cisco(CSCO) Target: Significant Upside Will Follow.

AP:
- EBay Inc.(EBAY) plans to start a social-networking service and will introduce other “customer-friendly” features to revive sales.