NewsWatch: Obama unveils $50 bln infrastructure plan

By MarketWatch

MARKETWATCH FRONT PAGE

President Barack Obama unveils a $50 billion plan to upgrade the nation’s roads, airports and railways, choosing a Labor Day rally in Milwaukee to announce the administration’s latest proposal to revive the economy.
See full story.

Stocks to watch: Casey’s, Phillips-Van Heusen

Among the companies whose shares are expected to see active trade in Tuesday’s session are Casey’s General Stores Inc., Phillips-Van Heusen Corp., and Flow International Corp. U.S stock markets are closed Monday for the Labor Day holiday.
See full story.

Short week to have some economic impact

Investors will likely focus on consumer credit and jobs in the holiday-shortened week ahead.
See full story.

In charts: What we learned about the economy

A look at the week’s economic indicators, including the smaller-than-forecast decline in nonfarm payrolls in August.
See full story.

July’s trade balance data may unravel mystery

A fresh set of trade data to be released will be eagerly cross-examined by economists after last month’s report proved a cipher.
See full story.

MARKETWATCH COMMENTARY

In the late 1990s, as Silicon Valley’s tech industry headed into boom-land, so too did New York City, writes Therese Poletti.
See full story.

MARKETWATCH PERSONAL FINANCE

In this week’s Realty Q&A, a retiree says his only debt is his $94,000 mortgage, and he wonders whether he should tap his 401(k) to pay off that bill. Lew Sichelman offers some advice.
See full story.

NewsWatch: Obama unveils $50 bln infrastructure plan

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5 people shot at Jacksonville bar

Police spent Friday looking for a shooter — or shooters — after an apparent dispute at an Eastside nightclub led to a spray of bullets in the street.

Even in a neighborhood where 109 assaults have been reported in the past two years and a man was killed in a shootout last summer, the number of shots fired early Friday rattled those who remember better days.

“It’s bad. It’s real bad. Jacksonville really has changed over the years,” said Lloyd Gilbert, who lives on 13th Street just north of Friday’s crime scene. “It doesn’t make no damn sense. It doesn’t make no sense at all.”

Police were called about 4 a.m. to Ethio’s in the 2100 block of Phoenix Avenue. Five people were taken to Shands Jacksonville hospital — driven by other civilians — to be treated for gunshot wounds, said Jacksonville Sheriff’s Office Lt. L.J. Gayle.

Gayle said he was unsure what led to gunfire, although he said there was some sort of dispute by the club. As of Friday evening there were no arrests announced and police would not say whether investigators had identified a suspect or if the shooter had acted alone.

By mid-morning about a dozen people congregated on street corners about a block away from the bar to watch the investigation unfold. The standard red-striped caution tape cordoned off the investigative area and kept people from getting any closer.

One woman said there’s a shooting in the neighborhood every weekend.

Police records show a total of 109 assaults, 26 robberies and 39 residential burglaries have been reported within a five-block radius of the 11th Street and Phoenix Avenue intersection since September 2008. About half of those were recorded in the past year.

In the parking lot of a corner grocer about a block from the bar, a shootout killed a 23-year-old and put an 18-year-old in the hospital in August 2009.

Police records further show Ethio’s alone has been the target of 19 service calls since January.

Investigators had scattered dozens of evidence tags throughout the street outside the bar Friday morning, making note of shell casings and the blood officers discovered on the pavement upon arrival.

No injuries were believed to be life-threatening, although a hospital spokesman said one of the victims, a 21-year-old man, was in serious condition. A 29-year-old man was listed in good condition, while no information was available for two other men and a woman, ages 29, 28 and 24, respectively.

Gilbert said he roamed the same neighborhood as a child growing up in the 1960s and ‘70s and felt safe. It’s home. He said he doesn’t like the gunfire, but he refuses to let it scare him away.

“I don’t want to leave because I’ve been here all my life,” he said.

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Jacksonville woman killed after losing control of car on 9A

A Jacksonville woman traveling with two young children was killed Thursday evening after she lost control of her car on Florida 9A near Alta Drive, the Florida Highway Patrol said.

Farren M. Carter, 24, was northbound in the inside lane about 7:35 p.m. when she lost control for an unknown reason, the report said. Carter tried to swerve back onto the road from the median but failed to regain control of the Honda Accord. The car began to rotate clockwise as it traveled across both northbound lanes, eventually going down the embankment and flipping over before coming to rest on its roof.

Carter was taken to Shands Jacksonville hospital but died, the Highway Patrol said.

The two children with Carter, 6-year-old Jody Price and 4-year-old Jaden Thomas, were also taken to Shands Jacksonville hospital. They did not suffer serious injuries.

The children were wearing their seat belts while Carter did not have hers on, the FHP said.

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Preseason ends with a Jaguars victory as both teams rest starters

It was an evenly matched contest between two sets of second-team offenses and defenses, and in Thursday night’s preseason game, neither produced much excitement.

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Bond Report: Treasurys drop after ISM, jobs data

By Deborah Levine, MarketWatch

NEW YORK (MarketWatch) — Treasury prices dropped Wednesday, pushing yields up for the first session in three, after a report showed the manufacturing sector in the U.S. improved in August.

Adding to a U.S. report on private-sector employment and strong economic data from China and Australia, the news eased concerns about the outlook for global growth.

Yields on 10-year notes
/quotes/comstock/31*!ust10y
(UST10Y
2.58,
+0.11,
+4.37%)
, which move inversely to prices, rose 11 basis points to 2.58%. A basis point is 0.01%.

Last week, the benchmark security’s yield touched the lowest level since January 2009.

Yields on 2-year notes
/quotes/comstock/31*!ust2yr
(UST2YR
0.51,
+0.03,
+5.87%)
increased 3 basis points to 0.51%, after touching an all-time low last week.

Yields on 30-year bonds
/quotes/comstock/31*!ust30y
(UST30Y
3.65,
+0.14,
+3.84%)
jumped 14 basis points to 3.66%.

The rise in yields Wednesday erased much of the gains in the previous two sessions which helped Treasurys of all maturities return 2.05% in August, the best gain in a month since December 2008, according to an index compiled by Bank of America Merrill Lynch.

Stocks rallied on Wednesday, reducing investors’ interest in the relative safety of U.S. debt. The S&P 500 Index
/quotes/comstock/21z!i1:inx
(SPX
1,078,
+28.38,
+2.70%)
jumped about 2.8% in afternoon trading.
Read about U.S. stocks.

The Institute for Supply Management’s index on manufacturing activity rose to 56.3 in August from 55.5 in July. Economists surveyed by MarketWatch expected the index to slide to 53.2.
Read about ISM.

The report also has an employment component that improved, raising optimism about the government’s monthly employment report being released Friday, said strategists at CRT Capital Group.

“The Treasury market sold off sharply in the wake of the data,” CRT’s David Ader and Ian Lyngen wrote in a note.

ADP said that private employers in the U.S cut 10,000 jobs in August. The ADP report on private employers comes two days before the Labor Department’s much more closely followed nonfarm-payrolls report, which includes government workers.
See more on ADP.

Economists surveyed by MarketWatch are looking for an overall decline of 105,000, including an expected increase of 25,000 jobs in the private sector.

Many analysts had expected ADP to show a slightly positive number, according to CRT. ADP tends to underestimate private payroll growth — as determined by the Labor Department report — by 65,000, they said.
Read about the ADP data.

Therefore, Wednesday’s ADP report implies that Friday’s data will show that companies added 55,000 workers, which would be better than the current forecast.

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Bond Report: Treasurys drop after ISM, jobs data

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Rick Scott: Jennifer Carroll will help me get state moving again

Rick Scott announced State Rep. Jennifer Carroll as his running mate this morning during a news conference outside Jacksonville Naval Air Station and said she can help him get Florida’s economy moving again.

Scott stressed Carroll’s background, which includes 20 years in the Navy and experience as a businesswoman.

“We are going to have a lieutenant governor who goes out and talks to busineses every day to ask, ‘What can we do for you?’ ’’ Scott said.

Scott would not answer if he started talking with Carroll, a supporter of Scott’s primary opponent, Bill McCollum, before last week’s primary.

“We aren’t going to talk about everything we did,” Scott said.

At a Tuesday night campaign stop, Scott said he had selected his running mate and it was someone he had vetted for a long time.

Many politicians from around the area say that politically, the 51-year-old Republican lawmaker makes sense as Scott’s running mate.

“I just really think she adds a lot to the ticket. She is African-American, she is a female, and she is really sharp,” said state Sen. Stephen Wise, R-Jacksonville.

Rep. Mike Weinstein, R-Jacksonville, said her background working the halls of the Legislature makes her a good pick.

“The governor runs the executive [branch], but it would be a great advantage if the lieutenant governor knows the Legislature,” he said.

Carroll served as the deputy majority leader in 2003 and as the House majority whip, or the party’s chief vote counter, from 2004 to 2006.

Carroll served as chair of the African-Americans for McCollum steering committee and was in attendance at a recent McCollum rally in Jacksonville.

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Florida high court strikes 3 amendments from ballot

TALLAHASSEE – The Florida Supreme Court sliced three proposed constitutional amendments from the ballot Tuesday and threw out a challenge to two more, setting the boundaries for the November vote.

In a series of opinions released Tuesday afternoon, justices struck down a legislative redistricting amendment, a measure challenging the federal health care law and a property tax measure. They also ordered a lower court to dismiss a challenge to a pair of citizen-initiative redistricting proposals, meaning the votes on those measures will go forward.

All three redistricting amendments deal with the rules lawmakers will face when they begin crafting the districts for legislative and congressional districts following the results of the 2010 Census.

Amendments 5 and 6, sponsored by the group Fair Districts Florida, are aimed at barring lawmakers from drawing politically gerrymandered districts. The Legislature countered with its own proposal, Amendment 7, arguing that the citizen proposals could endanger some districts drawn to preserve “communities of interest” or allow minority voters to elect representatives of their choice – a charge Fair Districts denies.

On a 5-2 vote, the court ruled that Amendment 7 would have allowed lawmakers to ignore a long-standing constitutional requirement that districts be contiguous, but that the ballot summary didn’t state that.

“This is a matter that should have been clearly and unambiguously stated in the ballot language. Failing this clear explanation, the voters will be unaware of the valuable right – the right to have districts composed of contiguous territory – which may be lost if the amendment is adopted,” the majority ruled.

Justices Barbara Pariente, Fred Lewis, Peggy Quince, Jorge Labarga and E.C. Perry joined the majority.

In a dissent, Chief Justice Charles Canady said the majority misread the amendment and was overstepping its bounds.

“The majority’s decision unduly interferes with a process that is fundamental to our constitutional system of democratic governance,” Canady wrote in an opinion joined by Justice Ricky Polston.

Incoming House Speaker Dean Cannon, R-Winter Park, said he respected the court.

“However, it’s terribly disappointing to have the work of the legislative branch demolished by a co-equal branch of government, especially when there’s no express authority in the constitution for their doing so,” he said.

In the case dealing with the citizen amendments, the court ordered the dismissal of a case filed by U.S. Reps. Corrine Brown, a Democrat from Jacksonville, and Mario Diaz-Balart, a Republican from Miami.

Brown and Diaz-Balart challenged Amendment 6, which deals with congressional districts. Legislators later successfully asked the circuit court hearing the case to add a challenge to Amendment 5, dealing with legislative districts.

Threat of ’serial attacks’

The court ruled that hearing the case after the Supreme Court already upheld the ballot language in an earlier advisory opinion would “encourage serial attacks on citizen initiatives.”

Four justices – Canady, Lewis, Quince and Labarga – joined the decision, Polston joined parts of it while saying the circuit court should hear parts of the case the Supreme Court didn’t touch on in its earlier decision, and Pariente and Perry recused themselves.

Brown and Diaz-Balart denounced the ruling in a joint statement issued late Tuesday.

“I wholeheartedly believe that Amendment 6 is merely a subtle attempt to dilute minority representation on a federal level,” Brown said. “… This amendment is nothing more than a deceitful attempt to turn the clock back to the days before 1992, when Florida did not have any African-American representation in Congress.”

House Democratic Leader Franklin Sands, D-Weston, hailed both redistricting decisions.

“The Florida Supreme Court today checked the arrogant abuse of power by Republican legislative leaders by ensuring that voters will have a reasonable opportunity to improve our state’s redistricting process,” he said.

Health care mandates stay

The health care amendment would have barred mandates for health care services in Florida, potentially challenging a provision in the federal health care law requiring citizens to buy insurance.

The state had asked the court to replace the entire amendment for a ballot summary it conceded was misleading, but the court ruled 5-2 that it would not, instead setting aside an unpublished 2004 opinion that allowed a summary to be replaced with the amendment itself.

“Our role in this process is as a reviewer of constitutional validity, not as an editor or author,” the court held.

In a dissent, Canady said the court should have followed the state’s advice.

“The courts should act with restraint when we are asked to interpose judicial power to bar the people from voting on a proposal submitted to them by their elected representatives,” he wrote, in a dissent joined by Polston.

The property tax measure, dealing with a break for non-homesteaded property, was also a 5-2 decision with Canady and Polston dissenting.

Incoming Senate President Mike Haridopolos, R-Merritt Island, questioned all four decisions.

“It is a sad day when more than 60 percent of the elected representatives of the people of the state of Florida can’t get ballot measures approved by the court, but special interest groups can,” he said.

brandon.larrabee@jacksonville.com,

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Stocks to Watch: Stocks in focus Tuesday: Dollar General, H-P

By MarketWatch

SAN FRANCISCO (MarketWatch) — Among the companies whose shares are expected to see active trade in Tuesday’s session are Dollar General Corp., Hewlett-Packard Co. and Winn-Dixie Stores Inc.

Dollar General
/quotes/comstock/13*!dg/quotes/nls/dg
(DG
27.38,
-0.71,
-2.53%)
is expected to report second-quarter earnings of 39 cents a share, according to analysts surveyed by FactSet Research.

After Monday’s closing bell, Hewlett-Packard
/quotes/comstock/13*!hpq/quotes/nls/hpq
(HPQ
38.56,
+0.56,
+1.47%)
agreed to pay the U.S. government $55 million as part of a settlement of claims that the technology giant defrauded the General Services Administration, according to the Justice Department. The government had alleged that the Palo Alto, Calif.-based H-P “knowingly paid kickbacks, or ‘influencer fees,’ to systems-integrator companies in return for recommendations that federal agencies purchase H-P’s products.”

Watch list

Donaldson Co.
/quotes/comstock/13*!dci/quotes/nls/dci
(DCI
42.88,
-0.48,
-1.11%)
said that its fiscal fourth-quarter net income rose to $51.2 million, or 65 cents a share, from $23.6 million, or 30 cents a share, in the year-ago period. Revenue increased to $515.2 million from $421.3 million a year ago. Analysts surveyed by FactSet Research forecast 64 cents a share on revenue of $498.9 million. The filter maker forecast 2011 earnings of $2.28 to $2.48 a share, compared with an analyst consensus of $2.49 a share.

Winn-Dixie
/quotes/comstock/15*!winn/quotes/nls/winn
(WINN
8.02,
+0.05,
+0.63%)
reported its fourth-quarter net income rose to $14 million, or 25 cents a share, from $9.4 million, or 17 cents a share, in the same quarter last year. Revenue edged up 1.8% to $1.75 billion, while same-store sales fell 5.2% in the quarter, which the retailer blamed on “increased competitive activity.” Analysts surveyed by FactSet had forecast earnings of 15 cents a share on revenue of $1.79 billion. For fiscal 2011, the company expects adjusted earnings before interest, taxes, depreciation and amortization of $100 million to $130 million.

Stocks to Watch: Stocks in focus Tuesday: Dollar General, H-P

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Jaguars: Still a work in progress in victory

TAMPA — In what was supposed to be a dress rehearsal for the regular season on Saturday night, the Jaguars looked as if they’re still not ready for Broadway.

Against a Tampa Bay team that was playing without injured starting quarterback Josh Freeman, the Jaguars trailed 13-9 when they pulled the starters deep into the third quarter.

The Jaguars did pull out a 19-13 victory, their first of the preseason, with their backups.

Luke McCown threw a 27-yard pass to John Matthews with 1:14 left in the third quarter for the go-ahead score.

Photo Gallery:

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How Rick Scott ended up with the GOP nomination for governor

The ballroom at the Hilton in Altamonte Springs was all but empty when incoming Senate President Mike Haridopolos ventured in to talk to the remaining reporters.

It was not long after Attorney General Bill McCollum, whom Haridopolos supported in the Republican primary for governor, had told supporters that he was still waiting for all the votes to be counted after a bitter fight with health-care executive Rick Scott. But by the time Haridolopos, R-Merritt Island, walked into the ballroom, it was clear that Scott would prevail.

Haridopolos was asked how Scott had defeated McCollum and essentially the entire Republican establishment. He quickly turned to a truckload of television ads Scott had run in a personally funded spending spree unequaled in state politics.

“$60 million is $60 million,” Haridopolos said.

But political observers say it was more than simply the money that propelled Scott across the finish line, despite the opposition of most of the state’s elected GOP leadership, outside organizations like the Florida Chamber of Commerce and a 30-year veteran of the Florida political scene.

“I can’t remember a candidate who took on not only an established candidate but the entire infrastructure of a party – and won,” said Matthew Corrigan, a political science professor at the University of North Florida.

An anti-incumbent wave, a strong message and, yes, the money, all helped Scott pull off what is the most stunning election upset of the political season so far.

“You have to say that his message resonated, you have to talk about the resources he had, you have to talk about the tireless effort he made in the campaign,” said Sen. John Thrasher of St. Augustine, who doubles as chairman of the Republican Party of Florida. While he clashed with Scott over some of the businessman’s campaign ads, Thrasher did not endorse a candidate in the primary.

Not a ‘career politician’

McCollum is only the latest in a line of “career politicians” to go down to defeat in races across the country.

“In a different political environment, his [Scott's] candidacy might not have worked,” said Aubrey Jewett, a political science professor at the University of Central Florida.

But that wasn’t enough, said Lenny Curry, chairman of the Republican Party in Duval County.

“Many of the candidates that are running against incumbents are missing two elements: a message and money,” said Curry, who also did not endorse a candidate. “You’ve got to offer the public more than, ‘Throw the bums out.’”

Still, the anti-incumbency mood in a way might have inoculated Scott against the most serious threat to his campaign: a Medicare fraud scandal at Columbia/HCA, which Scott founded, in which the company ultimately paid the largest fine of its kind in U.S. history. Shortly before the election, questions began emerging about Solantic, a company Scott founded after leaving Columbia, and Scott’s poll numbers started dropping. In the end, he won anyway.

“Voters were more willing to give all of that a pass based on the fact that he is not a career politician, and he is part of the solution rather than the problem,” said Chris Ingram, a Republican political consultant who didn’t work for either campaign.

As recently as the day before the vote, McCollum’s campaign was cautiously optimistic the attorney general would win. While polls were divided, the final Mason-Dixon poll in the state, a bellwether in other elections, gave McCollum the lead.

“I can’t remember when Mason-Dixon’s been wrong in a race,” Corrigan said.

A resonating message

But that poll had been taken before a weekend barrage of advertising attacking McCollum on everything from congressional pay raises during his 20 years in Washington to a seemingly confused position on the Arizona measure cracking down on illegal immigration to ties between McCollum and disgraced former state GOP Chairman Jim Greer – ties, McCollum allies and Thrasher said, that were grossly exaggerated.

“It seems like the McCollum campaign, the last three days or so, just wasn’t as pervasive as the Scott campaign,” Corrigan said.

Scott’s focus on jobs also appeared to pay off. Curry thinks it helped Scott in Northeast Florida. Duval County, the region’s largest county, had an unemployment rate higher than the state rate in July, according to the state’s workforce agency. Scott carried Duval by 17 percentage points.

“Rick Scott talked about jobs, and he had business experience, and I think that resonated with people,” Curry said.

In fact, Scott carried eight of the 10 counties with the highest unemployment rates in the state in July, often by huge margins.

And Scott was quicker in seizing on hot-button issues, like the immigration law and the controversial Islamic center two blocks from the site of the attack on the World Trade Center.

“They were very nimble and quick on the current issues,” Corrigan said.

In the end, a stronger message might have separated Scott from Jeff Greene, the billionaire investor crushed Tuesday by U.S. Rep. Kendrick Meek in the Democratic primary for U.S. Senate. Like Scott, Greene had poured millions of dollars of his own fortune into the race. Corrigan also noted that Scott’s on-the-ground network seemed to be more effective than Greene’s.

“Greene just spent money on TV commercials,” he said.

Jewett also noted, admittedly tongue in cheek, that another small factor might have been the difference in the spending.

“Quite frankly, Greene spent a lot of money,” he said, “but he didn’t spend $50 million.”


brandon.larrabee@jacksonville. com, (678) 977-3709

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