February 13 2008 at 03:03 PM

At last, an economic data report that surprises on the upside. Retail sales in January rose 0.3%, after falling 0.4% in December, the Commerce Department reported today. Sales of clothing, autos, gasoline and healthcare items all rose. But purchases of electronics and sporting goods, along with restaurant food fell—a sign that consumers are cutting back on discretionary items.

The retail report sent stocks higher in early trading. Yet economists cautioned not to take the latest number as a sign that things are looking up for the American consumer. Retail sales figures, which are notoriously volatile, are expected to head south in the coming months.

Source: The New York Times

Coca-Cola’s sparkling fourth quarter

The world’s largest soft-drink maker reported a 79% increase in net income for the fourth quarter, to $1.21 billion. Revenues climbed 24%, to $7.33 billion, led by higher sales of soda in Asia and Latin America. Soda volumes in North America fell, but sales of Vitaminwater continued strong.

Source: CNNMoney.com

Obama and McCain prevail in Potomac Primary

Senator Barack Obama swept the “Potomac Primary” in Virginia, Maryland, and Washington D.C. Tuesday in a landslide, giving his campaign for the Democratic Party’s nomination for the presidency a surge in momentum. Rival Senator Hillary Clinton must win in Ohio and Texas, which vote Mar. 4, to stay in the race. Senator John McCain also won big in the Potomac Primary, extending his lead over former Arkansas governor Mike Huckabee. Speaking in Little Rock, Ark., Huckabee again refused to concede the race for the Republican nomination.

Source: Politico, Washington Post

Venezuela Cuts Off Oil to Exxon Mobil

Venezuela suspended all commercial activities, including deliveries of crude and oil products, with Exxon Mobil. Last week, Exxon won backing from courts in the U.S., U.K., and the Netherlands to freeze up to $12 billion in assets belonging to Venezuelan state oil company, Petroleos de Venezuela. Exxon is seeking compensation from the government of Hugo Chavez, after it nationalized a project the American oil major held a stake in.

Source: BBC

New York state goes after health insurers

New York State Attorney General Andrew Cuomo has the healthcare industry in his sights. The NY AG announced he is launching a suit against UnitedHealth and issuing subpoenas to 16 other insurers as part of an investigation into reimbursement practices. Cuomo claims that insurers have cheated customers out of hundreds of millions of dollars by creating “convoluted and dishonest systems” for determining rates of reimbursement on medical procedures. The announcement sent UnitedHealth’s stock down to $44 in early trading—it’s lowest point in more than three years.

Source: Bloomberg

Rio Tinto’s Profits Puts Pressure on BHP to Cough Up More Money

Rio Tinto, the third-largest mining company in the world, reported underlying profit of $7.4 billion, above analysts expectations. Rio Tinto’s better than expected results and increased dividend to $1.36 puts pressure on BHP Billiton to up its $147 billion takeover offer.

Source: Sydney Morning Herald

The Strike is Over

Hollywood’s writers 100-day strike came to an end Tuesday. More than 90% of the 3,775 writers, who voted in Los Angeles and New York, cast a ballot to immediately end the entertainment industry’s most contentious labor stoppage in recent history. The writers will be back at work Wednesday.

Source: Los Angeles Times

Yahoo Buys Maven

Yahoo has purchased broadband video company Maven Networks as part of Chief Executive Officer Jerry Yang’s new strategy to become a must-buy for online advertisers. The six-year-old Cambridge, Mass.-based start up helps web sites, including CBS Sports, Sony BMG, and TV Guide, show online video and insert advertisement in those clips.

Source: Boston Globe

Microsoft Also Makes an Acquisition

Microsoft bought Danger, a Palo Alto company best know for creating the technology behind the Sidekick smart-phones. The financial details of the deal were not disclosed. One of Danger’s co-founders is Andy Rubin, who went on to start Android, which Google acquired in 2005.

Source: San Jose Mercury News

Dell Buys Brother’s Firm MessageOne

Computer giant Dell will buy MessageOne, an email archive and disaster recovery company, for $155 million. MessageOne was co-founded in 1998 by Adam Dell, brother of Dell founder and chief executive Michael Dell.

Source: Austin American-Statesman

Delta CEO Waives Merger Compensation

Delta Air Lines CEO Richard Anderson told the airline’s board of directors that he will waive millions of dollars in merger compensation if Delta finds a marriage partner. Delta’s board has accepted his offer. Potential mates for Delta are Northwest Airlines or UAL Corp.

Source: Wall Street Journal

Delphi Bankruptcy Exit in Jeopardy

The $6.1 billion plan to pull auto-parts supplier Delphi out of bankruptcy protection hit a snag after its lenders, J.P. Morgan Chase and Citigroup, ran into difficulties syndicating the loan to other lenders. Delphi’s former parent, General Motors, may have to step in and provide financing.

Source: Wall Street Journal

Spielberg Drops Out of Olympics Over Darfur

Filmmaker Steven Spielberg is withdrawing as an artistic adviser to the 2008 Summer Olympics in Beijing due to China’s lack of progress in resolving the crisis in Darfur, Sudan. Spielberg was invited by Chinese director Zhang Yimou to work on the Olympics’ ceremonies. Spielberg’s decision is a huge public relations blow for the Chinese government.

Source: Variety