NATIONAL

CIRCUIT CITY BOARD REJECTS HIGHFIELDS’ TAKEOVER OFFER

Circuit City Stores’ board rejected a $3.25 billion takeover offer by Highfields Capital Management LP, saying shareholders are better served by the company’s plan to fend off Best Buy.

The board of Richmond, Va.-based Circuit City, the no. 2 U.S. electronics chain, put its support behind the company’s strategy to boost profit by cutting costs, relocating, and remodeling stores. The retailer, which has had a net loss in seven out of the last nine quarters, is losing market share to no. 1 Best Buy.

– Bloomberg News

ECONOMY

U.S. CREDIT GROWTH ACCELERATED IN JANUARY, FEDERAL RESERVE SAYS

Growth in American consumer installment credit accelerated more than expected during January on greater demand for credit card, auto, and other personal loans, the Federal Reserve reported in Washington.

Non-mortgage borrowing rose $11.5 billion – or 6.6% at an annual rate – to $2.1 trillion, the Fed said. In December, such debt increased by $8.7 billion, more than first estimated.

Consumer spending, which accounts for two-thirds of the American economy, picked up even after the Fed raised rates to 2.25% in December from 1% in June to stem inflation. The U.S. central bank raised rates another quarter point last month. Revolving credit, which includes credit cards, rose by $5.4 billion in January after rising by $5.6 billion in December.

– Bloomberg News

TECHNOLOGY

GOOGLE HIRES TOP MICROSOFT ENGINEER

Google hired a top Microsoft engineer who was one of the six original members of the team that created the Windows NT operating system, as the company courts talent to compete with Microsoft and Yahoo!.

Mark Lucovsky said on his Web log that he spent 16 years at Microsoft, the world’s largest software maker, before switching to Google. A spokesman for Mountain View, Calif.-based Google, Steve Langdon, confirmed that the company had hired Mr. Lucovsky.

Google, the most-used Internet search engine, is racing to hire top computer programmers to build new products and services to compete with no. 2 Yahoo and no. 3 Microsoft’s MSN. Google has said it’s having difficulty finding qualified applicants, even though it offers perks such as free lunches and on-site massages.

– Bloomberg News

MARKETS

STOCKS RISE DESPITE BOEING SHAKEUP

A cautious stock market finished the session mixed Monday as a troubling top-level management shakeup at Boeing Co. pressured blue chips, while technology shares saw strong buying. The Dow Jones industrial average came within 16 points of cracking 11,000 but settled with a minimal loss.

Profit-taking pushed the Dow lower as Boeing, a Dow component, said its chief executive officer, Harry Stonecipher, was asked to resign by the company’s board for a relationship with a female executive. It is the second major CEO scandal for the aircraft manufacturer in less than 18 months.

However, investors were cheered by three separate merger announcements in the financial, defense, and communications sectors – a sign of corporate America’s confidence in economic growth. A jump in tech stocks, which had been lagging in the market’s recent rally, reflected newfound confidence on the part of investors. The Dow fell 3.69, or 0.03 percent, to 10,936.86.

Broader stock indicators gained ground. The Standard & Poor’s 500 index was up 3.19, or 0.26 percent, at 1,225.31, also adding to its multiyear high from Friday. The Nasdaq composite index gained 19.60, or 0.95%, to 2,090.21 on the momentum of technology shares.

– Associated Press