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US STOCKS CLIMB; INSPIRED BY CHINA'S RALLY


U.S. stocks climb higher as a rally in share prices in China carries over
into early U.S. trading. The Dow Jones Industrial Average is up more than 50
points, with all of its components showing gains except for GE, which is off
1%. Alcoa and Bank of America are each up 8% and Caterpillar is up 7%.

GE SHARES TUMBLE TO 18-YEAR LOWS


Shares of General Electric fall for the fourth straight session to levels not
seen since 1991 as the cost of protecting the debt of its ailing financing arm
continues to soar. GE shares recently were down 10% amid concerns about its
liquidity position and whether it would need to raise capital.

ISM: US SERVICES SHRINK AT FASTER PACE IN FEBRUARY


Non-manufacturing activity contracts at a faster pace in the U.S. in
February, as the Institute for Supply Management's composite index of
non-manufacturing activity falls to 41.6 from 42.9 in January, while its
non-manufacturing business index drops 40.2 from 44.2.

20% OF MORTGAGES UNDERWATER IN DECEMBER


More than 8.3 million U.S. residential properties that had a mortgage on them
were underwater at the end of December, with mortgage debt greater than what
the homes were worth, according to a report by First American CoreLogic.

US BANCORP SLASHES DIVIDEND 88%


U.S. Bancorp cuts its quarterly dividend to 5c from 42.5c as it looks to
preserve cash, but CEO Richard Davis says the Minneapolis bank has no plans at
this time to raise additional capital or get capital support from the U.S.
Shares down 5%.

COSTCO WHOLESALE 2Q NET DOWN 27%


Warehouse and discount retailer Costco Wholesale's fiscal 2Q net income falls
27%, primarily because of overall weak economic conditions. Last month, Costco
warned earnings would fall "substantially below" analysts' estimates.

FED'S FISHER SEES MORE US ECONOMY CONTRACTION


Federal Reserve Bank of Dallas President Richard Fisher says the latest
"disturbing" data, including gross domestic product, suggest the economy may
have suffered a sharper contraction early this year than in the previous three
months.

COMCAST SEES HIGHER REVENUE, CASH FLOW IN 2009


Broadband cable company expects revenue, operating cash flow and free cash
flow to rise in 2009 despite the economic slowdown, although its CFO doesn't
expect the advertising market to rebound this year.

UBS SHARES RALLY AS CHAIRMAN REPLACED


Shares in Swiss bank UBS move higher as Chairman Peter Kurer steps down in
favor of Kaspar Villiger, a former Swiss finance minister. The move follows the
surprise appointment of Oswald Gruebel as CEO last week. Banking analysts have
welcomed the appointments, while the Swiss government says the new Chairman
will have to rebuild trust in the bank. Villiger says he is convinced UBS can
be turned around.

TOLL BROTHERS 1Q LOSS NARROWS


Toll Brothers's fiscal first-quarter loss narrowed to $88.9 million, or 55
cents a share, as the nation's largest builder of luxury homes took fewer
write-downs, but the said weak consumer confidence is still restraining the
market.

LIZ CLAIBORNE 4Q LOSS WIDENS ON $693M IN WRITE-DOWNS


Company's 4Q loss increases to $828.9 million or $8.85 a share in write-downs
as the struggling apparel maker says it wouldn't provide an earnings outlook
for this year because of economic uncertainty. Shares down 7%.

BJ'S NET RISES 5% ON TAX GAIN


BJ's Wholesale Club fiscal 4Q net income rises to $52.7 million, or 91c a
share, on a tax gain and increased revenue as the discount warehouse chain
continues to benefit from shoppers looking for more bargains in the weak
economy. Shares rise 8%.

OIL STEADY NEAR $45/BARREL AS OIL SUPPLY TIGHTENS


Oil futures steady around $45 a barrel after oil inventories fell 757,000
bbls, compared with an expected rise, while gasoline inventories rose 168,000
bbls.

EU UNVEILS PROPOSALS TO TOUGHEN FINANCIAL SUPERVISION


European Commission unveils proposals to toughen financial supervision and
beat a path out of the global financial crisis. Commission broadly backs ideas
put forward by former Bank of France Governor Jacques de Larosiere.

OBAMA UNVEILS GUIDES ON MORTGAGE MODIFICATIONS


The Obama administration's guidelines for its housing market rescue plan are
aimed at enabling loan servicers to immediately start modifying eligible
mortgages, including reducing the amount homeowners owe per month.

FED'S HOENIG MAKES CASE FOR RATE BOOSTS


Kansas City Federal Reserve President Thomas Hoenig says the Fed will need to
begin tightening its "extremely accommodative" monetary policy "well before" an
economic recovery takes hold to avoid inflation problems down the road.

HIGH COURT ALLOWS PATIENT LAWSUIT AGAINST WYETH


U.S. Supreme Court rules 6-3 that a Vermont woman can sue Wyeth for injuries
she suffered after taking one of the drug maker's medicines, as FDA oversight
of drug labeling doesn't prevent the filing of state-level consumer liability
lawsuits.

LUXURY DEPARTMENT STORES TO REMAIN PRESSURED


Fitch says same-store sales for U.S. luxury department stores will remain
highly pressured and likely fall in the double-digit range this year, with
sales underperforming the broader department-store sector.

MADOFF LAWYER'S CONFLICT HEARING POSTPONED


A hearing on whether to replace disgraced financier Bernard L. Madoff's
lawyer because of potential conflicts of interest raised by prosecutors has
been postponed until next week.

RIVIERA GETS DEFAULT NOTICE ON $245M LINE


Las Vegas casino operator Riviera Holdings says it has received notice of
technical default from Wachovia Bank on a $245 million credit line after the
company refused to enter a deal in the form requested by the bank.

PHOENIX MAY HAVE OVERSTATED LOSS; STATE FARM HALTS SALES


Financial-services company may have overstated its 4Q loss by 40c a share and
says State Farm has notified the company it will stop selling Phoenix products
pending an evaluation of its relationship with the firm. Phoenix last week
reported a loss of $3.71 a share.

COURT ORDERS SUDAN PRESIDENT'S ARREST FOR DARFUR


The International Criminal Court in The Hague issues an arrest warrant for
Sudanese President Omar al-Bashir on charges of war crimes in Darfur, but says
prosecutors haven't provided enough evidence to support charges of genocide.


======= DOW JONES NEWSWIRES ANALYSIS AND COMMENTARIES =======

FED WATCH
US Treasury, Fed Mulling Exit Strategies

Matthew Cowley says government is already lining up exit strategies, and
plans may have moved a step forward as Treasury and Federal Reserve Board
appear to raise the prospect of the Fed issuing its own debt to absorb vast
amount of money pumped into financial system.

HEARD ON THE STREET
Arbitrage Looks More and More Arbitrary

Betting on M&A has become a blood sport. Merger arbitragers have been
trampled as private-equity acquisitions and even big corporate-transactions
have unraveled, write John Jannarone and Liam Denning.

============ U.S. MARKETS ACTION ===========
DJIA up 114.93 points to 6840.31
NASDAQ up 28.97 points to 1349.98
S&P 500 up 12.69 points to 708.86
10-year T-note 97 24/32 at 3.011 yield dn .101
NYMEX Crude down $0.08 at $38.86/bbl
Euro/Dollar up 0.0020 at 1.2561