http://www.cityam.com/devel/ City A.M. - business personality online sr City A.M. - business personality online http://www.cityam.com/devel/feed.php?type=rss http://www.cityam.com/devel/index.php?news=27576 Wall Street finished with steady gains, shrugging off mixed economic data and the Fed's dour outlook. The Federal Reserve minutes from its last rate setting meeting revealed that rates were cut to near zero because officials felt the economy needed help as it is likely to struggle for sometime. The central bankers also said gross domestic product growth will decline in 2009. The Institute for Supply Management said its service sector index rose to 40.6 in December, which was better-than-expected, from 37.3 in the previous month. It had been expected to fall to 37. The Commerce Department said new factory orders fell 4.6% to $384.6bn in November, the fourth straight month of decline. Economists had expected a decline of 2.6%. The government also revised October's decline to 6% from 5.1% reported previously. Pending US home sales fell to a record low in November, the National Association of Realtors said Tuesday. The index fell 4% to 82.3 from a downwardly revised October reading of 85.7 in October and much was worse than the 88 expected. Hopes also rose that President-elect Obama's massive economic stimulus package will get businesses investing for the future again. Citigroup, Bank of America and JP Morgan all made steady gains, while outside of the banking sector, Walt Disney moved up on hopes that some of the windfall from Obama's promised tax breaks will be spent on increased leisure activities. Futures market Intercontinental Exchange was down after Goldman Sachs downgraded the stock from "buy" to "neutral" on the back of weaker than anticipated trading volumes for the fourth quarter. Sat-nav maker Garmin also got sandbagged by Goldman Sachs; the stock was added to the US bank's "conviction sell" list. Job cuts took centre stage after the close yesterday. Health benefits firm Cigna said it was shedding 1,100 jobs to save $40m on Monday. Computer products maker Logitech also said yesterday that it was cutting 15% of its salaried work force. It also withdrew its corporate guidance without providing new earnings targets. S&P 500 - Risers American Capital Strategies Ltd. (ACAS) $7.31 +40.58% Developers Diversified Reality (DDR) $7.75 +35.96% Ciena Corp. (CIEN) $8.40 +18.64% General Growth Property Inc. (GGP) $1.60 +18.52% L S I Logic Corp. (LSI) $3.86 +18.04% Jds Uniphase Corp. (JDSU) $5.25 +15.89% Cb Richard Ellis Group (CBG) $5.00 +14.94% Prudential Fincl Inc. (PRU) $35.11 +14.85% Lincoln Natl Corp. (LNC) $25.01 +14.67% Hartford Fin Svc (HIG) $19.68 +14.22% S&P 500 - Fallers IntercontinentalExchange (ICE) $62.59 -14.26% Celgene Corp. (CELG) $50.47 -7.16% Liz Claiborne Inc. (LIZ) $3.16 -6.78% Laboratory Corp. (LH) $61.40 -6.49% Coventry Hlth Care (CVH) $14.24 -6.25% Quest Diagnostc (DGX) $48.50 -5.88% Molson Coors Co Class B (TAP) $45.73 -5.59% Reynolds American (RAI) $37.78 -5.50% Stryker Corp. (SYK) $38.77 -4.93% Kroger Co (KR) $25.36 -4.91% Dow Jones I.A - Risers Hewlett Packard Co (HPQ) $39.31 +8.20% General Motors (GM) $3.94 +6.20% American Express Inc. (AXP) $21.07 +5.61% Citigroup Inc. (C) $7.46 +5.37% Du Pont E I De Nem (DD) $27.65 +5.01% Walt Disney-Disney C (DIS) $24.31 +3.45% Intel Corp. (INTC) $15.37 +3.09% International Business Machines (IBM) $89.23 +2.78% Home Depot Inc. (HD) $25.26 +2.23% Alcoa Inc. (AA) $12.12 +2.19% Dow Jones I.A - Fallers McDonald's Corp. (MCD) $62.14 -2.23% Pfizer Inc. (PFE) $17.80 -1.98% Merck Co Inc. (MRK) $29.97 -1.83% Exxon Mobil Corp. (XOM) $80.30 -1.63% Coca Cola Co (KO) $44.71 -1.61% Verizon Commun (VZ) $31.96 -1.60% Wal Mart Stores (WMT) $56.02 -0.88% Caterpillar Inc. (CAT) $45.80 -0.61% Johnson and Johnson (JNJ) $59.69 -0.60% AT&T Inc. (T) $28.30 -0.46% Nasdaq 100 - Risers Flextronics International Ltd. (FLEX) $3.19 +15.16% Sun Microsystems Inc. (JAVA) $4.97 +11.19% Electronic Arts Inc. (ERTS) $18.56 +11.14% Marvell Technology Group Ltd. (MRVL) $7.64 +8.83% Applied Materials Inc. (AMAT) $11.58 +8.53% Nii Holdings Inc. (NIHD) $23.62 +8.50% Liberty Global Inc. (LBTYA) $18.04 +8.28% Research In Motion Ltd. (RIMM) $46.61 +7.65% Kla-Tencor Corp. (KLAC) $24.11 +7.63% Liberty Media Corp. (LINTA) $3.72 +7.20% Nasdaq 100 - Fallers Celgene Corp. (CELG) $50.47 -7.16% Garmin Ltd. (GRMN) $21.09 -4.14% Gilead Sciences Inc. (GILD) $49.63 -2.69% Intuitive Surgical Inc. (ISRG) $122.19 -2.67% Dentsply International Inc. (XRAY) $27.40 -2.66% First Solar Inc. (FSLR) $153.71 -2.59% Urban Outfitters Inc. (URBN) $14.80 -2.57% Stericycle Inc. (SRCL) $51.24 -2.33% Genzyme Corp. (GENZ) $66.19 -2.23% Amgen Inc. (AMGN) $58.34 -2.20% International News 06/01/2009 http://www.cityam.com/devel/index.php?news=27575 Trading updates from retailers this week have generally been not as bad as feared, but the City is holding its breath in expectation of poor performance from High Street giant Marks & Spencer. Marks & Sparks has had to resort to one-day super-sales in order to lure the shoppers in, but there is a suspicion that business on non-sales days fell off a cliff, as canny shoppers waited to see if M&S would repeat its super-sales day stunt, which it duly did. Freddie George, retail analyst at broker Seymour Pierce, believes Wednesday's trading update from M&S will include a profit warning, and that a cut in the dividend is "inevitable". Meanwhile, rival stockbroker Blue Oar is predicting M&S will announce an 8% year-on-year slide in sales. The clothing and food retailer is also expected to announce more than 1,000 job cuts tomorrow, including several hundred positions in the head office and support sectors. Takeaway pizza specialists Domino's Pizza saw like-for-like sales growth slow to 8.8% in the third quarter, and analysts are expecting a further slowing to around 6% in the fourth quarter. In the current environment, however, those sorts of growth figures would be the envy of many, more upscale restaurateurs, suggesting Domino's is benefiting from the trend to trade down. THIRD QUARTER STATEMENT Marks & Spencer, Domino's Pizza INTERIM DIVIDEND PAYMENT DATE 3i Group, Anglo Pacific, BSS Group, Halfords Group, Hill and Smith INTERIM EX-DIVIDEND DATE Aveva Group, Dairy Crest Group, FirstGroup, Gartmore European IT, Mitie Group, Monks Investment Trust, Northern Foods, Puma Brandenburg, Rensburg Sheppards, Speedy Hire, Workspace Group QUARTERLY EX-DIVIDEND DATE Investors Capital Trust A Shares EGMs Volga Gas FINAL DIVIDEND PAYMENT DATE AI Claims Solutions, Group NBT FINAL EX-DIVIDEND DATE Baring Emerging Europe, Carluccio's, Dawson Holdings, Dewhurst, Edinburgh Worldwide Inv Trust, Education Development International, Future, Grainger, JPMorgan Asian Investment Trust, JPMorgan Income & Capital Inv Trust, Keydata AIM VCT, Majedie Investments, Murray International Trust, Next Fifteen Communications, Paragon Group Of Companies, RM Group, Scottish Investment Trust, Shires Smlr.Co, Unicorn AIM VCT, Unicorn AIM VCT Series 2, WH Smith Stock Watch 06/01/2009 http://www.cityam.com/devel/index.php?news=27573 Urals Energy announced after the close on Tuesday that talks regarding a potential offer for the oil exploration and production firm with a third party have ended without an offer. The group now seeks to agree with Sberbank that it will proceed to undertake a disposal of its shares in ZAO Dulisma and in Taas Yuriakh, its two strategic assets in East Siberia, to Sberbank or a subsidiary. Urals Energy added that its liquidity position remains constrained and that discussions with a third party regarding a short term working capital facility are ongoing. "The company will now seek a small loan to maintain liquidity until proposals with Sberbank can be finalised," it said. "At present, the company has overdue amounts payable to Dulisma contractors and suppliers that must be partly satisfied by the end of January 2009 and which it will be unable to meet without the granting of this loan or other sources of cash not currently in hand," added the group. Small Cap News 06/01/2009 http://www.cityam.com/devel/index.php?news=27574 The trading update from clothing retailer Next on Tuesday morning was well received, allowing the group's property director, Andrew Varley, to cash in at a good price. Varley sold 10,000 shares at 1234.43p each, some way below the 1261p high for the day but still comfortably above Monday's closing value of 1091p. The sale, which raised £123,440, reduces Varley's stake in Next to 69,887 shares, representing 0.036% of the issued share capital. Next cheered the market by saying its full year profit forecast remains in line with City expectations of around £415m to £435m, despite posting a a 1.9% drop in sales in the half year to Christmas Eve. Like-for-like sales in the 347 stores that were unaffected by new openings down 7%, within the 4% to 7% range the firm had predicted. Top Director Buys Smith & Nephew (SN.) Director name: Mr David Illingworth Amount purchased: 48,355 @ 436.85p Value: £211,239 Aberdeen Asset Management (ADN) Director name: Mr Donald Waters Amount purchased: 37,000 @ 134.00p Value: £49,580 Cryo-Save Group (CRYO) Director name: Mr Werner Spinner Amount purchased: 75,000 @ 32.00p Value: £24,000 Worldspreads Group (WSPR) Director name: Mr David Leonard Amount purchased: 29,810 @ 51.00p Value: £15,203 Hogg Robinson (HRG) Director name: Mr John D Coombe Amount purchased: 185,925 @ 5.40p Value: £10,040 Top Director Sells Imperial Energy Corporation (IEC) Director name: Mr Peter M Levine Amount sold: 782,410 @ 1,250.00p Value: £9,780,125 Imperial Energy Corporation (IEC) Director name: Mr Christopher Hopkinson Amount sold: 391,204 @ 1,250.00p Value: £4,890,050 Imperial Energy Corporation (IEC) Director name: Mrs Ekaterina Kirsanova Amount sold: 260,802 @ 1,250.00p Value: £3,260,025 Imperial Energy Corporation (IEC) Director name: Mr Denis Kurochkin Amount sold: 97,800 @ 1,250.00p Value: £1,222,500 Imperial Energy Corporation (IEC) Director name: Mr John Hamilton Amount sold: 86,065 @ 1,250.00p Value: £1,075,812 Aberdeen Asset Management (ADN) Director name: Mr Martin J Gilbert Amount sold: 750,000 @ 129.00p Value: £967,500 Smith & Nephew (SN.) Director name: Mr David Illingworth Amount sold: 20,075 @ 436.85p Value: £87,698 Next (NXT) Director name: Mr Andrew John Varley Amount sold: 10,000 @ 1,234.40p Value: £123,440 Director Dealings 06/01/2009 http://www.cityam.com/devel/index.php?news=27571 The US market has bounced back from yesterday's fall, with banks featuring prominently among the Dow's best performers, as hopes rise that President-elect Obama's massive economic stimulus package will get businesses investing for the future again. Citigroup, Bank of America, JP Morgan and American Express all make steady gains, while outside of the banking sector, Walt Disney moves up on hopes that some of the windfall from Obama's promised tax breaks will be spent on increased leisure activities. Economic data sent mixed messages, however. The Institute for Supply Management said its service sector index rose to 40.6 in December, which was better-than-expected, from 37.3 in the previous month. It had been expected to fall to 37. The Commerce Department said new factory orders fell 4.6% to $384.6bn in November, the fourth straight month of decline. Economists had expected a decline of 2.6%. The government also revised October's decline to 6% from 5.1% reported previously. Pending US home sales fell to a record low in November, the National Association of Realtors said Tuesday. The index fell 4% to 82.3 from a downwardly revised October reading of 85.7 in October and much was worse than the 88 expected. In company news, job cuts are taking centre stage. Health benefits firm Cigna said it was shedding 1,100 jobs to save $40m on Monday. Meanwhile, computer products maker Logitech also said yesterday that it was cutting 15% of its salaried work force. It also withdrew its corporate guidance without providing new earnings targets. Futures market Intercontinental Exchange is the worst performing blue-chip after Goldman Sachs downgraded the stock from "buy" to "neutral" on the back of weaker than anticipated trading volumes for the fourth quarter. Sat-nav maker Garmin also got sandbagged by Goldman Sachs; the stock was added to the US bank's "conviction sell" list. Later on today, the Federal Reserve's Federal Open Market Committee will release the minutes from its December 15/16 meeting. S&P 500 - Risers American Capital Strategies Ltd. (ACAS) $6.17 +18.65% L S I Logic Corp. (LSI) $3.70 +13.15% Prudential Fincl Inc. (PRU) $34.20 +11.87% S&P 500 - Fallers IntercontinentalExchange (ICE) $64.03 -12.29% Liz Claiborne Inc. (LIZ) $3.07 -9.59% Quest Diagnostc (DGX) $47.64 -7.55% Dow Jones I.A - Risers Citigroup Inc. (C) $7.40 +4.52% Hewlett Packard Co (HPQ) $37.66 +3.66% General Motors (GM) $3.84 +3.50% Bank Of America Corp. (BAC) $14.46 +3.43% Jp Morgan Chase Co (JPM) $30.15 +3.08% Walt Disney-Disney C (DIS) $24.17 +2.85% American Express Inc. (AXP) $20.48 +2.66% Dow Jones I.A - Fallers Verizon Commun (VZ) $31.70 -2.40% Merck Co Inc. (MRK) $29.93 -1.97% McDonald's Corp. (MCD) $62.73 -1.31% Johnson and Johnson (JNJ) $59.39 -1.10% Pfizer Inc. (PFE) $17.97 -1.05% Wal Mart Stores (WMT) $55.95 -1.01% Coca Cola Co (KO) $45.07 -0.81% Nasdaq 100 - Risers Flextronics International Ltd. (FLEX) $3.06 +10.47% Liberty Global Inc. (LBTYA) $17.94 +7.68% Nasdaq 100 - Fallers Celgene Corp. (CELG) $50.97 -6.24% Garmin Ltd. (GRMN) $21.00 -4.52% 06/01/2009 http://www.cityam.com/devel/index.php?news=27570 London's top stocks ended with good gains, having recovered from a slight dip just before close after an uncertain start on Wall Street. Retailers and miners continue to feature prominently among the best performers but private equity group 3i led the way. Hedge fund manager Man Group also finished strongly. The company's AHL funds are believed to have fared much better than rivals last year, many of which were hit by the slump in commodity prices. Swiss bank Credit Suisse has upped its 2009 earnings forecast for Man by 19% on the strength of AHL's performance, while stockbroker Evolution Securities has reiterated its "buy" recommendation in a broker note. Elsewhere in the financial sector, inter-dealer broker ICAP finished higher but banks react negatively to the FSA's decision to list its ban on short selling banking stocks. Citigroup also warned against buying into the theory that banks look cheap. "Despite trading at 0.9x 2009E price to tangible book, the risk of banks making retained losses and raising more capital may not be fully priced in yet," said Citi analyst Simon Samuels. Lloyds TSB and Royal Bank of Scotland led the banking sector down, but sub-prime lender Cattles continued to advance strongly on hopes that its application for a banking licence will be granted. Yesterday Barclays announced it controlled around 5% of Cattles's share capital through funds it manages. High street fashion chain Next was wanted after it said its full year profit forecast remains in line with City expectations of around £415m to £435m. The clothing retailer saw a 1.9% drop in sales in the half year to Christmas Eve, with like-for-like sales coming in at the bottom end of expectations. Response to department store Debenhams results was even more enthusiastic. Like-for-like sales fell 3.5% during the 18 weeks ended 3 January, in line with expectations. Profit before tax and EBITDA for the 18 weeks were both higher than last year due to "the increase in gross transaction value, the continuing tight management of costs and stocks and our decision to focus on the levers that drive cash margin". Marks & Spencer rose despite expectations that it will announce 1,000 job cuts when it unveils its trading update tomorrow. A refusal to slash prices to boost sales helped out-of-town based home wares retailer Dunelm increase margins in the past 26 weeks, though sales felt the impact. Defensive favourite United Utilities was lower, however, after US bank Goldman Sachs rated the water company's shares a "sell" on fears that deflation and increased regulatory burdens will erode profitability in 2009. Goldman Sachs has chopped its price target for the stock by almost a fifth to 555p. Tobacco giant BATs failed to get a lift from positive comment from JP Morgan. The US bank has raised its 2009 and 2010 earnings estimates by 3% to factor in the positive effect of currency translations and lower interest rates. British Airways said its financial guidance for the year remains unchanged as it reported a 3.4% drop in traffic, while no-frills airline Ryanair reported an 11% rise in total passenger numbers in December. Aer Lingus, meanwhile, said it expects to report a profit in 2008 despite an operating loss of about €20m. Carbon, ceramic and magnetic materials supplier Morgan Crucible is to increase its stake in technical moulding and vehicle integration business NP Aerospace by 11% to 60% for £12.2m. Irish building materials giant CRH has maintained its forecast of a profit for 2008 of €1.6bn despite a steadily deteriorating trading outlook in the second half. CRH added that about €1.6bn would represent a mid-teen percentage decline on the 2007 outcome of €1.9bn, and in line with guidance provided in the update of 11 November. Engineering and construction firm Balfour Beatty has bought the interests in a military housing privatisation project at Lackland Air Force Base in San Antonio, Texas. Feed supplier and flour miller Carr's Milling's first quarter of the current year to August was ahead of budget and last year, but trading is getting tougher. Shareholders in oil and gas group EnCore Oil are applauding the company's announcement of a successful drilling in the UK North Sea. Faroe Petroleum, which has a 10% in the block 42/13 licence, also rises sharply on the news. Drug developer Ark Therapeutics said the Marketing Authorisation Application (MAA) for Cerepro, its gene-based therapy for brain cancer, has cleared the validation stage. The Cerepro MAA application now commences formal review. FTSE 100 - Risers 3i Group (III) 342.25p +21.15% Man Group (EMG) 287.00p +17.38% Xstrata (XTA) 899.50p +13.43% Next (NXT) 1,227.00p +12.47% Standard Life (SL.) 226.25p +12.42% Vedanta Resources (VED) 790.50p +11.34% Eurasian Natural Resources (ENRC) 395.00p +11.19% Rio Tinto (RIO) 1,927.00p +11.13% Old Mutual (OML) 59.80p +10.13% British Land Co (BLND) 624.00p +9.96% FTSE 100 - Fallers Lloyds TSB Group (LLOY) 119.00p -5.33% Serco Group (SRP) 464.50p -4.18% Johnson Matthey (JMAT) 1,079.00p -3.75% Bunzl (BNZL) 592.00p -3.19% HSBC Holdings (HSBA) 657.75p -3.13% Diageo (DGE) 959.50p -2.98% Royal Bank of Scotland Group (RBS) 51.00p -2.86% Compass Group (CPG) 354.25p -2.14% United Utilities Group (UU.) 622.50p -2.12% British American Tobacco (BATS) 1,810.00p -1.90% FTSE 250 - Risers Debenhams (DEB) 34.25p +20.18% Cattles (CTT) 29.50p +19.19% DSG International (DSGI) 21.00p +16.67% Tullett Prebon (TLPR) 162.00p +15.71% Brixton (BXTN) 160.50p +14.64% Ashmore Group (ASHM) 168.25p +12.17% Chaucer Holdings (CHU) 62.75p +11.56% BlackRock World Mining Trust (BRWM) 305.25p +11.20% Inchcape (INCH) 45.00p +11.11% Dunelm (DNLM) 144.00p +10.77% FTSE 250 - Fallers PV Crystalox Solar (PVCS) 97.50p -9.09% Michael Page International (MPI) 210.50p -7.27% BTG (BGC) 131.75p -6.06% DS Smith (SMDS) 79.50p -5.92% Wincanton (WIN) 175.75p -5.89% Hiscox (HSX) 320.00p -5.19% PartyGaming (PRTY) 197.00p -5.17% Mondi (MNDI) 205.25p -4.98% Aegis Group (AGS) 77.00p -4.94% F&C Commercial Property Trust (FCPT) 68.25p -4.88% Markets 06/01/2009 http://www.cityam.com/devel/index.php?news=27569 Europe's leading exchanges closed with good gains, helped by Volkswagen's rally on news that Porsche raised its stake in the carmaker to a majority. Luxury sportscar maker Porsche said it now holds more than 50% in fellow German auto manufacturer Volkswagen and plans to up its stake to 75% later this year. Stuttgart-based Porsche now owns 50.76% of the shares in the world's third-largest carmaker, up from 42% previously. As a result, Porsche is obliged to make a takeover offer for truck maker Scania, in which VW is the dominant shareholder. The group said it has no strategic interest in the Swedish company and will only offer the minimum price for the shares that is prescribed by law. Elsewhere in the sector, Toyota Motor is to halt production at its Japanese plants for 11 days in February and March to reduce its stock of unsold vehicles. The Japanese car firm will stop output for six days in February and five days in March, according to reports. Toyota, which saw sales in the US drop 37% in December, said the suspension will affect its 12 directly operated plants, including four car assembly plants and other factories that make engines, transmissions and other parts. In the pharmaceuticals sector, Sanofi-Aventis was one of the main risers in Paris, while rivals AstraZenenca and GlaxoSmithKline were also up. Across the markets, the German DAX gained 42 points to 5,026 the French CAC closed up 36 points at 3,396, while the Swiss market rose 43 points to 5,799. Metro was down after Merrill Lynch slashed its recommendation on the German retailer to "underperform" from "buy". Shares in HeidelbergCement closed lower after its largest shareholder, German billionaire Adolf Merckle, committed suicide. The family of the 74-year old said in a statement that the "passionate family entrepreneur" was broken by the "uncertainties of the last few weeks and his powerlessness to act." In economic news, euro zone inflation has dropped to its lowest level in more than two years, raising expectations that the European Central Bank will continue to cut interest rates. Inflation is expected to be 1.6% in December compared with 2.1% in November, according to a flash estimate issued by European Union statistics office Eurostat, well below the ECB's target rate of just under 2%. International News 06/01/2009 http://www.cityam.com/devel/index.php?news=27572 Shares in Western Canadian Coal fell after it said it will reduce operations at the Brule Mine and Wolverine operation. "The reduced operating rates are a result of rising inventory levels as some customers defer shipments through the next few months," said the group. "With the current production curtailments taken by some customers, along with the uncertainty of the coal markets beyond April 2009, the Company has made these prudent decisions," it added. The Brule mine expects to be operating at an annual run rate of approximately 750,000 tonnes per year effective at the end of January 2009, down from its current run rate of 1.3m tonnes per year. The Wolverine operation has given notice to employees that it may curtail operations effective May 18, 2009, subject to market conditions for the next coal year. Notice was also given to the contractor at Wolverine to terminate the mining operation contract. When operations resume, these will be done by the company itself. The operation is currently operating at an annual run rate of 1.6m tonnes of coal per year. "The Company expects to operate at these rates until the current economic uncertainty improves and the demand for coal becomes clearer. When the markets do improve, the Company has the flexibility to quickly increase operating rates and also pursue its growth plans," it said. Small Cap News 06/01/2009 http://www.cityam.com/devel/index.php?news=27567 BP has appointed Lamar McKay as president of BP America and will serve as the group's chief representative in the US. The group said McKay brings with him a "deep knowledge of BP's US operations to his new position." McKay has lead BP's special projects team since early 2008 and has served as executive vice president for BP America. He will succeed Robert Malone, who will retire after 34 years with the company. "Bob Malone has made an extraordinary difference during his tenure at BP America and during his long career with BP," said BP Chief Executive Officer Tony Hayward. "We are a better company because of his ability to connect with the men and women who operate and maintain our facilities and his unflagging commitment to safe operations." Company News 06/01/2009 http://www.cityam.com/devel/index.php?news=27566 The US service sector held up better than expected in December, figures from the Institute for Supply Management (ISM) show. The ISM's non-manufacturing index in December was 40.6, against a reading of 37.3 in November, which represented a record low for the index. Although a level below 50 indicates a contraction, the December reading was above the level expected by economists, who had forecast a figure in the region of 36.5 to 37. Nevertheless, the December figure represented the third month in succession in which the index had come in below 50. The service sector accounts for more than 80% of US economic activity and includes businesses such as banks, restaurants and tourism-related companies. Last week, the ISM's manufacturing index hit a 28-year low. Commodities 06/01/2009