Oil hits $100, weak manufacturing report; Dow worst start in decades

CBS News

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[Music] It was a disappointing start to the new year on Wall Street. Oil prices hit $100 a barrel for the first time ever. That coupled with a weak manufacturing report sparked recession fears and that ignited a sell-off on Wall Street. The Dow tumbled 220 points, its worst start to a new year in decades. The Nasdaq fell back 42. Crude prices settled back at $99 a barrel after crossing the $100 mark, but analysts are predicting that prices will remain near the record high in the coming weeks. That will eventually trickle down to the gas pumps and add as much as 20% to Americans heating bills this winter. Keep an eye on shares of Starbucks, which slipped to a new low Wednesday after one Wall Street firm downgraded the coffee giant stock. Experts say consumers worried about the economy are buying cheaper coffee elsewhere. High food and labor costs are also cutting into Starbucks's profits. Daimler Chrysler has been hit with the largest fine ever given out by the government for violating fuel economy standards. The automaker was fined over $30 million for its 2006 imported passenger cars. Daimler's cars averaged just under 25 m a gallon that year, but the government required an average of 27.5 miles per gallon. That's your money watch. Log on to cbsnews.com for more. In New York, I'm Alexis Christopherus.

Toyota overtakes Ford as No. 2 automaker in 2007

CBS News

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[Music] 2007 was the year Ford fell from grace. It lost its title of the nation's number two automaker to Japanese rival Toyota. It was also the worst year for the overall auto industry in nearly a decade. And with record gas prices predicted this summer, analysts saying another tough year lies ahead for the automakers. On Wall Street, an early rally fizzled by day's end as investors remained focused on record oil prices. The Dow managed to add 12 points, but the Nasdaq slid about seven. How about downloading movies not to your PC, but right to your TV? Netflix is teaming up with LG on a new set top box that pipes movies and other programming right to televisions. No telling yet how much the new box will cost when it hits the market this summer or fall. And makers of flat panel TVs are trying to cut the cord. Several wireless technologies for highdefinition TVs will be on display at next week's Consumer Electronics Show in Las Vegas. Manufacturers promise that before the next holiday season, those pretty flat panels on walls will be free of the not so pretty cords hanging down. And that's your money watch. Track all your business headlines at cbsnews.com. In New York, I'm Alexis Christopherus.