The main runway at New York's John F. Kennedy International airport will be closed for four months starting March 1.  It appears that this one runway will cause a whole lot of problems. Millions of travelers will experience delays, including some not flying anywhere near the Big Apple. JFK's Bay Runway, at 14,572 feet, is one of the longest commercial runways in the world. It's a backup landing spot for the space shuttle, which has its next mission in April. The runway is being repaved with concrete and widened to accommodate today's bigger planes.

As earnings season begins to wind down, retailers weighed in with some rather favorable results.  Lowe's and Home Depot both posted better-than-expected results as consumers finally started meeting some of their home-furnishing needs.  Likewise, discounter Target showed signs of rebounding from recessionary woes and Macy's proved that previously down-and-out department stores may be on the road to recovery as well.  On the opposite end of the trend, Barnes & Noble struggled again and offered a pessimistic outlook as traditional "bricks and mortars" have trouble competing with online retailers.  And AIG apparently still has a long way to go (more government help may be needed).  In other corporate news, GM prepared to say goodbye to Hummer as its prior deal with Sichuan Tengzhong was rejected by Chinese regulators.  Schlumberger said hello to Smith International with a proposed $11 billion acquisition which would be the largest domestic transaction of the year.  Airlines reaped rewards of enhanced personal and business travel as revenues advanced industry-wide for the first time in 15 months.  However, despite the (so-called) economic recovery, an FDIC report showed that numerous banks are at risk of failing and they continue to shy away from lending at a time when many small businesses need it most.

NRG Energy, Inc. and CPS Energy reached a deal to resolve their ownership dispute over two planned reactors in Texas. This may be the first nuclear project in decades to move ahead in the U.S. In addition, President Obama announced that the Energy Department had approved $8.3 billion in loan guarantees to help Southern Co. build two nuclear reactors in Georgia. 

It has been a year since the government passed the $787 billion stimulus package. So where do things stand today?  Some claim that an estimated 2 million jobs have been added (or saved), there have been tax cuts for working families, and the overall direction of the economy is positive.  Others counter that private businesses are still not hiring, the heavy-hand of government now has a socialist feel, and the large amount of spending added to a ballooning debt that will stifle future growth.  With only about a third of the budgeted amount distributed thus far, year two "promises" more funds flowing into infrastructure projects, additional private sector jobs, and new tax cuts for small businesses.  
 
HP highlighted the earnings of the week as the tech giant experienced another strong quarter and forecast even better times ahead.  Rival Dell was not as fortunate as the company continued to struggle with shrinking margins (discounted PCs) and a lack of business spending.  Kraft posted a nice profit on cost-cutting measures and higher volumes; Barclays PLC has greatly benefited from its acquisition of the North American operations of Lehman; Wal-Mart issued disappointing sales figures and offered a weaker-than-expected outlook; on the other hand, JP Penney overcame higher pension costs and projected stronger sales and enhanced market share; and Whole Foods bested expectations as Americans appear to be living healthier lifestyles.

The former general manager of the Chilean mint was let go after the country's name was misspelled on the peso. Gregorio  Iñiguez  minted a set of 50-peso coins with the nation's name spelled C-H-I-I-E instead of the usual C-H-I-L-E, the BBC reported.  

Harsh weather blanketed much of country this week as 49 states had snow on the ground.  With many businesses (and the government) requiring that only "essential personnel" show up for work, economic releases were delayed and markets remained choppy as folks tried to determine whether or not they were needed.  The retail sales (see below) report was delayed for a day; Fed Chair Bernanke did not grant oral testimony as DC literally shut down (though not the White House); and traders worked from home as the blizzards impacted daily volume.  Analysts predict that 100,000+ workers may join (or remain on) the unemployment line in February as folks were not able to get to work and companies temporarily halted any hiring. 
 
Earnings results were mixed, at best, as signs of favorable news often came with negative caveats.  Coca Cola posted solid growth as emerging markets like China and India helped compensate for continued domestic challenges.  Disney bested Street estimates on cost-cutting measures, though weakness at theme parks and other consumer divisions disappointed investors.  UBS returned to profitability for the first time in over a year, though its private-banking group struggled as high net worth clients sought (perceived) greener pastures away from Swiss institutions.  In other corporate news, Google looked to expand into social networking to compete with Facebook; struggling Toyota recalled over 400,000 Prius cars; McDonald's posted decent same-store sales results for January; AIG announced a new peer performance-based compensation plan; and Goldman Sachs warned that this year's bonus reductions may not be repeated in the future.  
 

Shares of Monster Worldwide fell after the company reported a quarterly loss. Monster also said it will aquire recruitment site Hotjobs from Yahoo for $225 million.

Earnings season plugged along with more positive than negative releases; consumers continued their surprising return to the malls as January sales at department stores, apparel retailers, and discounters built on the activity from the holidays; the labor markets appeared headed toward stabilization (perhaps), and manufacturing offered some nice signs of growth.  And, yet, many investors still are not convinced that the economic strength is real (or especially sustainable). 
 
As the week began, over three-quarters of S&P companies that had reported actually beat analysts' expectations.  Naysayers were quick to point out that much of the improvements reflected cost cuts and not enhanced sales; some claimed that relative earnings comparisons should be easier this quarter as late 2008 represented with worst of the downturn.  Among the positive quarterly reports this week, DR Horton provided hope that housing is on the road to recovery; Cisco showed that corporate spending for technology may be strengthening; NewsCorp overcame newspaper challenges, primarily due to its studio blockbuster Avatar; UPS reported increased holiday activity and strong overseas operations.  Both ExxonMobil and BP PLC posted better-than-expected results, though their refinery businesses remained weak and were major drags on overall bottom lines.  Meanwhile, Royal Dutch Shell's numbers disappointed analysts and drug maker Pfizer issued a lackluster outlook and lowered its future financial targets

Electric car manufacturer Tesla Motors said it is planning a public offering of stock.  The Palo Alto, California-based company said in a filing with the SEC on Friday that it plans to go public.  The company makes the $109,000 Roadster sports car, and it has plans to start selling cheaper electric vehicles in the future.

How should investors react when a hectic week brings...a Fed Chairman confirmation AND policy meeting, a State of the Union address, a mixed bag of earnings, and the strongest GDP growth rate since 2003?  For the most part, they may have simply been too busy digesting the vast array of critical news to make any major investing decisions.
 
When investors finally managed to pull themselves away from riveting C-Span, they found renewed interest in fourth quarter earnings season.  All seemed well in tech-land (for the most part) as Apple reported it's most profitable quarter ever and introduced its next new thing, the iPad.  TI posted strong numbers on surging chip sales.  Microsoft reaped the rewards of enhanced PC sales and a successful Window 7 release.  Internet shoppers helped Amazon.com's earnings climb over 70% as the Kindle (among others) was met with nice demand.   Elsewhere, Ford returned to profitability after four years and also projected job additions in its Chicago plant.  Travelers posted its best quarter since going public, a nice sign for financials.  Procter & Gamble and Colgate both bested expectations as consumers continue to regain confidence (at least on life's necessities).  Not all earnings news was entirely favorable as Caterpillar experienced increased demand, but its 2010 guidance missed the Street's forecast.  In addition, Chevron kicked off reports for the energy sector with disappointing results from its refining business. 

Harley-Davidson reported its first quarterly loss in 16 years. Hurt by restructuring costs and tight credit markets, the motorcycle maker is gearing up for a tough 2010 as unemployment fears and a weak economy cool demand for its high-end motorcycles. 

Politics and investors make strange bedfellows and, for the time being, the two do not seem to get along very well.  Despite some reasonably favorable earnings reports, investors instead took their cues from the happenings in the nation's capital (and Massachusetts) and stocks suffered accordingly.  President Obama was dealt a major blow when the most liberal seat in the Senate was taken over by a Republican.  The people of Mass have spoken and apparently they don't like what they see in health care reform.  Eager to bounce back from defeat, Obama took shots at Wall Street with a populist plan to change the rules of the game for "too big to fail" firms that would limit some of the risk-taking and profit incentives of commercial banks.  While Republicans may be quick to scoff at this proposal, they too understand that Average Joes are tired of business as usual on Wall Street as bad decisions are rewarded with bailouts, bonuses, and golden parachutes.  To add insult to injury, grandstanding politicos appear determined to hold Bernanke hostage and blame Fed policymakers for all that ailed the country.  Once thought to be a shoo-in for reconfirmation as Chair, Dr. Bernanke now faces dissent from both parties. 
 
While banks suffered late in the week from Obama's vision for their future, their quarterly earnings were actually quite promising.  Wells Fargo reemerged "in the black" and Bank of America moved closer to joining the club.  Citigroup struggled with a sizable loss, but acknowledged improvements in its credit lending business.  Goldman's profits increased again as the poster child for overpaid executives chose not to award bonuses (for the time being) and their bottom line benefited dramatically.  Among non-financials, Starbucks continued to resurrect its business as earnings tripled during the quarter, while McDonalds reaped nice rewards for its venture into cheaper coffee.  Google recognized double-digit revenue growth for the first time in a year, and IBM reported solid showings from both its services and consulting operations.  GE beat expectations and forecast even better results in the quarters to come, though its financial arm continued to be an obstacle to profitability. In transaction news, Kraft and Cadbury finally appear headed to the altar (much to the dismay of Warren Buffett who felt $19.44 billion was a bit excessive).  MetLife moved close to a $14-ish billion deal to buy Alico from AIG (which in turn could pay back some proceeds to the NY Fed).  
 

Heineken announced it will purchase Mexico's second largest beer producer. The Dutch brewer will pay $5.2 billion for Femsa, which will give it valuable brands (Dos Equis XX, Tecate, Sol) in fast growing Latin American markets. 

A new year; new recovery; new economy; new hope...but still many of the same challenges (and related dialogues) continue.  Mindful of the growing deficits prompted by government bailouts, President Obama proposed a "Financial Crisis Responsibility Fee" to be paid by the nation's largest financial services companies to raise $90+ billion over the next decade.  A congressional panel began grilling various officials (banking execs, regulators, etc.) about their roles in the financial debacle and, as expected, excessive bonuses highlighted much of the heated exchange.  The NY Attorney General joined the criticism as Wall Street prepared to disburse what many consider outrageous compensation packages.  The SEC continued to delve deeper into the Bank of America - Merrill Lynch transaction and hopes to add new charges pertaining to the lack of shareholder disclosure.  Finally, on a favorable note, the Federal Reserve actually reported strong profits from some of its innovative stimuli, much of which ultimately get paid to Treasury.  
 
Earnings season kicked off amid great expectations.  Thomson Reuters expects earnings at S&P 500 companies to triple from last year, though certain analysts are fearful that much of the improvement stems from temporary cost-cutting measures and future quarters may reveal continued weakness in day-to-day operations.  Turning to the numbers, Alcoa reported a narrower loss and better revenues last quarter, but the results still fell short of expectations.  Intel far surpassed its projected profits as computer shipments surged last quarter, a report that brought newfound confidence to the technology sector.  One day later, however, JPMorgan-Chase disappointed investors as higher trading and investment banking fees could not compensate for the continued weakness in its consumer-driven mortgage and credit card lending areas.   To add insult to injury, the firm then announced a record $9.3 billion bonus plan for investment-bankers.

Iceland's President vetoed legislation that would have forced Iceland to repay $5.5 billion to Britain and the Netherlands. As a result Fitch Ratings downgraded Iceland's debt rating to BB+  and the country could be at risk of losing financial aid promised by the International Monetary Fund.  

Welcome to 2010.  Somehow the mood on Wall Street feels much better this year than last, though many of the same uncertainties linger.  Is the one-time dire labor situation showing any real signs of improvement (see below)?  Will the consumer shrug off unemployment concerns and help lead the economy into a better-than-expected recovery?  When will Bernanke and friends begin to unwind some of the Fed's stimuli and what impact will the moves have on the economy and markets?  Have equities moved "too far, too fast" or will investors be willing to reallocate some of their cash reserves (within money markets) into riskier asset classes?  
 
Business transactions made early headlines as rumors swirled about a bidding war for candy company Cadbury PLC.  Nestle briefly appeared to enter the mix, though such speculation soon ended and the Swiss company instead became pizza makers by announcing its intent to purchase the Tombstone, CPK, and DiGiorno brands from Kraft for $3.7 billion.   Meanwhile Kraft sweetened its bid for Cadbury, but ran into another potential stumbling block when a major shareholder by the name of Warren Buffett expressed dissatisfaction with the deal (Hershey may still enter the bidding).  In other deal-making news, French Total SA followed Exxon-Mobil's footsteps into the domestic natural gas market by forging a $2.25 billion venture with Chesapeake Energy.