Last Updated: January 30th, 2009: 12:00 PM ET---After opening slightly higher on a number of upbeat earnings results and a fourth-quarter GDP reading that showed a better-than-expected contraction, the major US equity indices dropped and are now trading with significant losses. Weakness is largely broadbased with 25 of the Dow's 30 components in the red and Citigroup (NYSE:C) is leading the decline, off 5.4%. Prior to the open, the Commerce Department released its advance reading on the nation's Gross Domestic Product (GDP) showing a decline at a 3.8% annual rate, which marked the lowest reading since '82 when the reading showed a 6.4% contraction. This negative reading comes after the third-quarter's 0.5% decline, which is the first consecutive decline in GDP since 1991. While the contraction was severe, it came in short of economists' forecasts of a 5.4% contraction. For all of '08, GDP rose 1.3%, its slowest pace since 2001. In another report released before the open, the Labor Department said its employment cost index, the broadest measure of labor costs, rose 0.5%, just shy of economists' average expectations of 0.7%. Later in the morning the University of Michigan released its December reading for its consumer sentiment index showing a slight increase to 61.2, which matched expectations. The Chicago purchasing managers index came in at 33.3 for the month of January, down from Decembers 35.1 reading and short of the 34.2 reading economists were expecting. In earnings news, Honeywell (NYSE:HON) reported a fourth-quarter profit of $0.97 per share, in line with consensus estimates. Revenues grew to $8.7 billion, less than the $8.97 billion analysts were expecting. The New Jersey-based company reiterated its guidance for 2009. Chevron (NYSE:CVX) reported fourth-quarter earnings of $2.14 per share, excluding a one-time gain, beating consensus estimates of $1.81 per share. Revenues fell to $45.2 billion, less than the $47.9 billion analysts were expecting. Exxon Mobil (NYSE:XOM) reported fourth-quarter earnings of $1.55 per share, ex-items, topping estimates of $1.45. Revenues fell 27% in the quarter, year-over-year to $84.7 billion but still were ahead of estimates of $69.1 billion. Procter & Gamble (NYSE:PG) reported fiscal second-quarter earnings of $1.58 cents per share, meeting estimates. Net revenues fell 3% compared to the year-ago period to $20.4 billion, slightly below estimates of $20.6 billion. The company forecasts its third-quarter earnings per share to come between 78 cents and 86 cents, compared to estimates of 85 cents. Gannett (NYSE:GCI) reported fourth-quarter adjusted earnings per share of 85 cents, ahead of analyst estimates of 81 cents. Revenues fell 8.5% in the quarter year-over-year to $1.74 billion, and came in short of consensus estimates of $1.79 billion. Following six months of failed deal talks between Switzerland-based pharma company Roche Holdings and Genentech (NYSE:DNA), known for its development of cancer drug Avastin, the company took its approach hostile with an $86.50 per share bid. Roche Holdings, which already owns 55.8% of Genentech (NYSE:DNA), lowered its bid from the initial $89 per share offer. Roche spokesman Alexander Klauser was quoted as saying, "In the past six months, we've had numerous discussions with the special Genentech committee and in light of the lack of progress we decided to make an offer directly to Genentech shareholders." At the time of this report, the Dow Jones Industrial Average is down 105 points to 8,044, the S&P 500 is trading 12 points lower to 833 and the Nasdaq is trading 20 points lower to 1,487.

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