Weekly Recap - Week ending 04-Dec-09

The major indices logged another winning week -- hitting fresh 2009 highs -- thanks to mostly broad-based buying interest. The week got off to a solid start on decreased concerns over Dubai's debt situation and ended on an upbeat note as the U.S. unemployment rate unexpectedly dropped.

Nine of the 10 sectors posted a gain, led by utilities (+3.9%), telecom (+2.4) and financials (+2.3%). Commodity-related stocks underperformed, with energy shedding 1.5% on the week.

With only one S&P 500 company reporting earnings, economic data was in full focus as investors awaited the November employment report.

The employment report was better-than-expected on all the major metrics. Employers shed 11,000 nonfarm payrolls in November, far less than the 125,000 median estimate. In addition, prior months were revised to show smaller drops. In turn, the unemployment rate declined to 10.0%, from a previous reading of 10.2%.

Although corporate news was on the slow side due to the lack of major earnings reports, there were some notable items as retailers reported same-store sales and another major bank moved to repay government bailout loans.

Overall same-store sales disappointed, resulting in retailers logging some of the biggest declines on the week. Of the 27 retailers that Briefing.com follows, 19 missed the consensus estimate and 16 posted negative numbers. Among the biggest losers on the week, Game Stop (GME) shed 15.8%, Abercrombie & Fitch (ANF) lost 9.7% and Macy's (M) fell 6.0%.

5:46PM Steris Statement in Response to December 3, 2009 FDA Notice (STE) 29.14 -4.17 : Co was notified on Dec 3, 2009 that the FDA had issued a notice to healthcare facility administrators regarding the regulatory status of the STERIS SYSTEM 1 Sterile Processing System, as well as actions healthcare facilities should take if they use this device. "We disagree with the FDA's recent notice and are working to engage in further dialogue with the Agency about this matter. Since its introduction in 1988, we estimate that the SYSTEM 1 Sterile Processing System has safely and effectively sterilized more than 300 million devices when used as directed," said STERIS President and Chief Executive Officer, Walt Rosebrough. "We understand our Customers' concerns and apologize for the inconvenience the FDA notice will cause to their sterilization and decontamination processes." The FDA has stated that healthcare administrators should transition to acceptable alternatives to meet their sterilization and decontamination requirements. If they do not have an acceptable alternative, FDA has stated that Customers may continue to use SYSTEM 1 while they assess their sterilization requirements. FDA has also stated it is not aware of any confirmed cases of infection directly attributable to inadequate reprocessing by SYSTEM 1... As a result of the Dec 3, 2009 FDA notice, the Company is considering its available options and expects to have further discussions with the FDA. There is no assurance, however, that the FDA will not pursue an administrative or enforcement action or not seek other remedies, including the demand that STERIS stop further sales of the SYSTEM 1 device and any related services, accessories and sterilant. These actions by the FDA could possibly result in administrative orders or judgments requiring re-labeling or restriction on the manufacturing, sale, or distribution of products, or could require us to take other actions, including recalls, to pay significant monetary fines or civil damages, or to be subject to other governmental or third party claims or remedies, which could materially affect our business, performance, value, financial condition, and results of operations. Additional information regarding the FDA investigation of SYSTEM 1 is described in our Form 10-K for the fiscal year ended March 31, 2009 and the Form 10-Q for the quarter ended September 30, 2009.

5:26PM USG Corp and Lafarge Enter into Agreement to Resolve (USG) 14.43 +0.37 : USG Corp and its subsidiary, United States Gypsum Company, together with Lafarge North America Inc., announced that they have entered into an agreement resolving certain disputes between the parties that had been the subject of a lawsuit in the federal district court for the Northern District of Illinois. Under the terms of the agreement, USG will receive $105 million and will grant a fully paid-up license for the use of certain USG technologies.

5:16PM Yahoo! and Microsoft Finalize Search Agreement (YHOO) 15.19 +0.08 : The companies have finalized and executed the definitive Search and Advertising Services and Sales Agreement and License Agreement in accordance with the letter agreement announced in July. "Microsoft and Yahoo! believe that this deal will create a sustainable and more compelling alternative in search that can provide consumers, advertisers and publishers real choice, better value, and more innovation. "Yahoo! and Microsoft welcome the broad support the deal has received from key players in the advertising industry and remain hopeful that the closing of the transaction can occur in early 2010."