Issue link: https://www.epageflip.net/i/21035
8B – Daily News – Wednesday, December 8, 2010 NEW YORK (AP) — Stocks closed mixed Tuesday after enthusiasm over a deal to extend tax cuts faded. Bond prices fell sharply as traders anticipated the tax cuts would boost economic growth but also lead to ballooning bud- get deficits. The yield on the 10-year Treasury note jumped to 3.13 percent, its highest level since June 22. President Barack Obama and Republican leaders agreed to a broad package of tax cuts and an extension of unemployment benefits. The compromise plan helped send stocks higher in the morning, briefly pushing the Standard & Poor’s 500 index to its highest level since the peak of the financial crisis in Sep- tember 2008. Private economists began raising their expectations for economic growth in response to the tax cut deal. Bond traders focused on another factor: the widening budget deficit. Esti- mates vary widely, but some put the total cost of the package in the range of $900 billion over the next two years. Stocks end flat as rally over tax cuts fades Wall Street Slashing tax receipts to the Treasury without a plan to fill the shortfall is ‘‘the height of irresponsibility,’’ said Dan Greenhaus, chief economic strategist at Miller Tabak, in a note to clients. The extension of the Bush- era tax cuts, which were due to expire at the end of the year, removed a major source of uncertainty for financial mar- kets. The deal announced late Monday also included a one- year break on payroll taxes which will put money directly in Americans’ pockets. The same is true for the extension of unemployment benefits, which economists see as an effective way to stimulate the economy by getting people spending again. ‘‘The deal in Washington is a big deal,’’ said Kim Caughey Forrest, equity research analyst at Fort Pitt Capital Group. ‘‘Investors really do like cer- tainty, and they really do like certainty around taxes.’’ The Dow Jones industrial average fell 3, or 0.03 percent, to close at 11,359.16. It had been up as many as 89 points before turning lower in the afternoon. The broader Standard & Poor’s 500 index rose 0.6, or 0.05 percent, to 1,223.75. The S&P closed within 2 points of its 2010 high reached on Nov. 5. The Nasdaq composite index rose 3.6, or 0.1 percent, to 2,598.49. Treasury prices fell sharply, sending their yields higher. The yield on the 10-year Treasury note rose to 3.13 percent from 2.93 percent late Monday. The yield on the 10-year note is a widely used benchmark for interest rates on loans including mortgages. Citigroup Inc. rose 3.8 per- cent to $4.62 after the govern- ment said late Monday it reached a deal to sell its remain- ing stake in the bank for a $12 billion profit. Nicor Inc. jumped 4.3 percent to $48.79 after the natural gas distributor said it had agreed to be acquired by AGL Resources Inc. for about $2.38 billion in cash and stock. Shares of New York Times Co. rose 4 percent to $9.76 after the newspaper publisher said declines in print advertising sales are slowing and expenses are falling. Investors were also encour- aged by news out of Europe. European stock markets rose after finance ministers from the 16 nations that use the euro did not rule out increasing their $1 trillion bailout fund. Ireland also passed a budget with steep tax hikes aimed at slashing its deficit. The dollar was up 0.5 per- cent against an index of six other currencies. It had been down as much as 0.4 percent earlier in the day before recoup- ing its losses by midday. Rising stocks were even with declining ones on the New York Stock Exchange. Consolidated trading volume was 7.6 billion shares. NYfeds: Boston businessman giving up $625 million NEW YORK (AP) — A 97-year-old Boston-area apparel entrepreneur agreed Tuesday to forfeit $625 million to be distrib- uted to cheated investors in jailed Bernard Madoff’s historic Ponzi scheme, authorities revealed, as a court trustee said negotia- tions are under way to recover money as well from the owners of the New York Mets. Local Business Operators! Your business can be part of the Premier Edition Celebrating Christmas as we celebrate it in this unique and wonderful place we call “Home.” Featuring original Christmas stories, poems and photos from local residents -- your customers -- in addition to their favorite recipes and Christmas Carols ... and much more. Tehama Country Christmas Album of the Thank your customers for their business, wish clients and potential clients a Merry Christmas and Happy New Year, remind them about your merchandise, brands and services. Special discounted advertising rates for regular Daily News advertisers. Deadline for Advertising Reservations: Wednesday, December 8 Published as a special extra section to the full run of The Daily News on Saturday, December 18 Call your Advertising Representative TODAY to make your space reservation! D NEWSAILY 527-2151 RED BLUFF TEHAMACOUNTY The U.S. government said in papers filed in feder- al court in Manhattan that Massachusetts business- man and philanthropist Carl Shapiro, one of the first investors in Madoff’s investment business and a longtime Madoff friend, entered the forfeiture deal along with his partners. The papers were filed by the government to recover the money from the accounts of JP Morgan Chase Bank, N.A. It said the proceeds would be dis- tributed to Madoff investors. The papers said Shapiro held an account in his name with Madoff’s investment business since 1961 and had controlled accounts for others from time to time. Madoff started his investment business in 1959. That action proceeded as court-appointed trustee Irv- ing Picard filed a complaint under seal in U.S. Bank- ruptcy Court to recover money from Sterling Equi- ties, along with its partners and family members. Picard said his office was ‘‘engaged in good-faith negotiations’’ with the Ster- ling defendants, who include the owners of the New York Mets baseball team. Auxiliary A member of CHW St. Elizabeth Community Hospital jewelry and accessories Sale $5 Sponsored by the Volunteers of St. Elizabeth Community Hospital Auxiliary 9am-4pm • Warde-McAulley Room (Adjacent to the hospital) Wednesday-Thursday December 8th 530.529.8002 redbluff.mercy.org 2550 Sister Mary Columba Dr., Red Bluff, CA 96080 -9th Proceeds benefit St. Elizabeth Community Hospital In a statement of its own, Sterling agreed with Picard that the sealing of his law- suit was necessary because the parties are negotiating a settlement. It added: ‘‘Regardless of the outcome of these dis- cussions, we want to emphasize that the New York Mets will have all the necessary financial and operational resources to fully compete and win. That is our commitment to our fans and to New York.’’ The trustee overseeing jailed financier Bernard Madoff’s assets has labeled the New York Mets win- ners in the epic fraud. We have adopted a Military Family for Christmas Help us make their Holiday unforgetable & receive 50% off your next jewelry purchase Gold Exchange See store for details Expires Dec. 18, 2010 Come in and be treated like family 530 528-8000 423 Walnut St. Red Bluff 9:30 a.m., to 6:00 p.m. for Custom Wreaths & Designs Call 527-4578 or 526-4578 Dec. 9, 10 & 11 Thu.-Fri.-Sat. A year ago, Picard said in a bankruptcy filing that the Mets made nearly $48 million in Madoff’s scheme. He said the Mets Limited Partnership origi- nally invested about $523 million, but eventually withdrew about $571 mil- lion from the accounts. The latest actions come as a deadline approaches this weekend to file court papers before the revelation of the fraud reaches two years. In December 2008, Madoff revealed to his sons and later to the FBI that he had operated a bogus invest- ment business for decades, reporting to investors that their $21 billion had risen in value to more than $65 bil- lion when it actually had dwindled to just a few hun- dred million dollars. CHRISTMAS BOUTIQUE for Red Bluff Garden Club SCHOLARSHIP Tehama County High Schools 216 Pine St. Red Bluff Victorian House, corner of Rio & Pine ALL FRESH WREATHS, ARRANGEMENTS AND MORE