US stocks rally, cheered by bullish data

 U.S. stocks rally into the close after the ADP private-sector employment estimate, factory orders and productivity data cast a more optimistic light on the U.S. economy before Friday’s payrolls report, while leaving intact hopes of another interest-rate cut next week. Dow Jones Industrial Average climbs 196 points, boosted by gains in AIG shares..
US PRODUCTIVITY JUMPS; PAYROLLS SEEN HIGHER
 

  U.S. productivity soars 6.3% and labor costs tumble in 3Q, a welcome offset to rising energy prices and weak dollar. Meanwhile, ADP expects an increase of 189,000 private-sector payrolls in November. ISM services index falls to 54.1, while factory orders increase 0.5%..
MBIA CAPITAL POSITION WORSE THAN THOUGHT
 

  Shares plunge nearly 16% after Moody’s says bond insurer is at greater risk of having insufficient capital to maintain its triple-A rating than previously thought..
CHRYSLER CEO REPORTEDLY SEES $1.6B ‘07 LOSS
 

  Chrysler LLC is on track to lose $1.6 billion this year, Chief Executive Robert Nardelli told a group of employees this week, people familiar with the matter tell The Wall Street Journal..
AIG SAYS IT CAN WEATHER SUBPRIME WOES
 

  AIG shares jump nearly 5% after executives say the company does not expect eventual actual losses from the subprime mortgage crisis to be more than it can handle..
NOVELL DELAYS 4Q RELEASE ON SEC REVIEW
 

  Software company postpones release of its 4Q earnings because of inquiries from the SEC about its accounting practices. Novell says SEC sent it two letters about its 2006 annual report and a June quarterly filing. Shares fall 2%..
BUSH TO ANNOUNCE BROAD MORTGAGE RELIEF PLAN
 

  President is expected to unveil a broad plan tomorrow to help homeowners struggling with mortgages. Plan includes freezing interest rates, fast tracking borrowers toward refinancing and allowing more tax-exempt bond programs to fund refinancings..
CRUDE STOCKPILES DROP FAR MORE THAN EXPECTED
 

  U.S. crude-oil inventories fall by 8 million barrels to 305.2 million barrels, according to EIA data, surprising analysts who expected a 700,000-barrel draw. Gasoline inventories rise 4 million barrels, with analysts expecting a 700,000-barrel gain and distillate stockpiles also climb..
FDA PANEL REJECTS GENENTECH DRUG
 

  Genentech shares slide 9% as FDA panel narrowly rejects Avastin as proposed treatment for advanced breast cancer, saying data provided wasn’t sufficient to provide a favorable risk benefit analysis. FDA typically follows panel’s advice..
BRISTOL-MYERS TO CUT WORK FORCE BY 10%
 

  Bristol-Myers Squibb to cut about 4,300 jobs and shutter half of its 38 manufacturing plants in a plan to save about $1.5 billion by 2010. CEO says cost-cutting program doesn’t increase chances of a takeover of the drug maker..
EUROPEAN SHARES CLOSE HIGHER
 

  European stocks rise for the first time in three sessions as the heavyweight oil sector finds favor following a $2-dollar spike in crude oil prices. OPEC saying it will hold output levels also provides support. London ends 2.8% higher..
OPEC HOLDS OUTPUT LEVELS
 

  Oil cartel holds current oil output steady and will again meet in January. Decision, which sends oil prices higher, is a rebuff to major oil-consuming nations that sought a production hike to help cap the price of crude..
FANNIE PREFERRED STOCK DEAL SAID OVERSUBSCRIBED
 

  Fannie Mae’s $7 billion non-convertible preferred stock deal is oversubscribed, according to a person familiar with deal, which is expected to price tomorrow. Orders indicate strong demand..
COMCAST DROPS, CUTS OUTLOOK FOR YEAR
 

  Shares of Comcast plunge 12% after the company says cable revenue will grow slower than expected this year and capital costs will be higher as it battles increased competition and a slowing economy..
DEMOCRATS UNVEIL DEAL TO REPEAL BIG-OIL TAX BREAKS
 

  Democratic lawmakers unveil a $21 billion energy tax package that in large part repeals tax breaks for the biggest oil and gas firms to fund long-term extension of renewable-energy tax credits and encourages biofuels and energy efficiency..
MCCLATCHY SEES 2008 PROFIT GROWTH
 

  McClatchy projects 2008 earnings growth despite the ongoing troubles in the newspaper industry, as the company benefits from lower interest costs. Analysts had been expecting a profit drop..
PAULSON SAYS CHINA REFORM NOT FAST ENOUGH
 

  Treasury Secretary says China isn’t moving fast enough toward a more flexible currency policy, creating the risk that economic imbalances and protectionist sentiment will grow. He also expects to release a plan to overhaul the U.S. regulatory system next year..
NYMEX NOT IN TALKS WITH NYSE EURONEXT
 

  Nymex Chairman Richard Schaeffer says his exchange isn’t in merger talks with the NYSE Euronext but is open to a merger, acquisition or being bought. “All options are open,” Schaeffer says, noting the industry “is consolidating.”.
UBS MAKES TOP CANADIAN PICKS FOR 2008
 

  UBS Investment Research moves slightly away from resource stocks and more toward stocks with exposure to the Canadian economy, with diversity in agriculture and gold. Firms include Potash, Research In Motion and Goldcorp..
PERVASIVE CONFLICTS SEEN AMONG PAY CONSULTANTS
 

  Consultants who recommend pay packages for U.S. corporate executives have “pervasive” conflicts of interest that appear to be inflating executive compensation, says a study issued House Government Oversight Committee.
FACEBOOK APOLOGIZES FOR NEW AD FEATURE
 

  Mark Zuckerberg, founder and chief executive of Facebook, apologizes for gaffes the company made in rolling out a controversial new advertising system, and says users will be able to disable the system entirely..
  ======= DOW JONES NEWSWIRES ANALYSIS AND COMMENTARIES =======
 LATE TRADING ConAgra Up, Comtech Falls ConAgra Foods rises 4% in late trading after the packaged food company said it expects 2Q earnings from continuing operations to be higher than planned. Comtech Telecommunications falls 4% after receiving federal subpoena. TAKING STOCK More Dividend Cuts Likely For Financial Service Stocks Ongoing turmoil in the credit markets may goad some financial service firms to cut their dividends to conserve capital and buttress finances in preparation for more potential losses, writes Palash Ghosh.

  ============ U.S. MARKETS ACTION ===========
DJIA              up 196.23 points to 13444.96
NASDAQ            up  46.53 points to  2666.36
S&P 500           up  22.22 points to  1485.01
10-year T-note    down 15/32 at 102 13/32 yield 3.953
NYMEX Spot Crude  down $0.83 at $87.49/bbl at clowe
Dollar/Euro       up 0.0008 at 1.4618