Intel takes a hit
Intel Corp. shares fell after the computer-chip maker said that a price war with rival Advanced Micro Devices would hurt profits this year more than analysts had expected. Despite the pain, Intel CEO Paul Otellini said that slashing prices and pumping out new products to win market share would eventually pay off for investors. (Bloomberg) The stock drop came even though Intel reported record sales of expensive microprocessors. "Clearly the market would prefer that they have higher profit margins," said analyst Dean McCarron of Mercury Research, "but in this environment that's probably not all that realistic." (AP in Yahoo! Finance)
Clearer skies
Airlines are ending their worst losing streak ever. Wall Street expects U.S. carriers to post a collective profit of $2 billion to $3 billion for 2006, after losses totaling $35 billion for the five years ending in 2005. Lower fuel prices, continued strong demand, and the reluctance of big carriers to make more seats available are helping to keep profits flowing in 2007. (USA Today)
Walkman steps up
Sony Ericsson crushed expectations by reporting that its quarterly profit more than tripled as record Walkman phone sales helped it take market share from Motorola and Samsung. (MarketWatch.com)
What they knew, and when
An Interior Department official knew three years ago about a legal blunder in oil leases that ended up costing the government billions of dollars in payments from energy companies, according to e-mails uncovered by the department's chief investigator. The revelation suggests the mistake could have been fixed quicker. But oil prices were lower then, and the official -- Johnnie M. Burton, the director of the department's Minerals Management Service -- told investigators she "did not remember putting a great deal of thought into the matter." (The New York Times, free registration required)
Frozen oranges
Winter crops in California have been decimated by icy weather. The freeze has ruined $1 billion worth of citrus, along with everything from avocadoes to cut flowers. California Gov. Arnold Schwarzenegger has requested federal disaster aid. As many as 12,000 field workers could lose their jobs for the rest of the growing season, and grocery shoppers across the country could soon feel the effects. "If you bought an orange at the supermarket for 50 cents," said Todd Steel, owner of fruit wholesaler Royal Vista Marketing, "expect to pay a dollar to $1.49 for it." (AP in Yahoo! Finance)
BEST COLUMNS OF THE DAY
In debt? Grow up
There are plenty of ways to climb out of debt, says George Mannes in Money, "but you'll never dig out unless you also change the attitude toward money that contributed to your getting into debt in the first place." Americans' average credit card debt has more than doubled since 1990. To avoid sinking further, start paying as much as possible on loans with the highest interest rates, and as little as possible on the rest. Lock up those credit cards, and start saving even a token amount from each paycheck. Stick to the plan -- it's part of being a grown-up.
New year, fresh start
The holidays are over, says Tara Weiss in Forbes, but that's no reason to feel "uninspired and bummed." The first month of 2007 can be a time to "refocus your energy at the office." Set attainable goals. If you have too much on your plate, focus on delegating some of your responsibilities. If you're a slob, clean up your messy desk and office. If you're the boss, boost morale by complimenting employees when they do a good job. The sense of accomplishment you'll get will help put the "winter doldrums" in the past.
GOOD DAY FOR: Showing up for work, as 61 percent of executives say telecommuters are less likely to be promoted than colleagues who go to the office every day, according to a survey by executive search firm Korn/Ferry International. Productivity isn't the problem -- 78 percent of the executives say telecommuters are more productive than or as productive as their office-bound peers. (Los Angeles Times, free registration required)
BAD DAY FOR: Following orders, after a German motorist turned left when the "friendly voice" of his Audi's satellite navigation system told him to, and went over the curb onto a streetcar track. He got stuck, and a dozen trams were delayed until a tow truck could pull the car clear. (Reuters)
NOTED: Twenty-seven percent of mobile phone users who recently changed providers said they switched to get better network coverage. Only 14 percent said they were after a cheaper plan, and 13 percent said they wanted to be on the same network as family and friends, according to a ComScore Networks study. (New York Post, free registration required)