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floridatoday.com

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Thursday Nov. 1, 2007

BUSINESS EDITOR DAVE BERMAN, [email protected] or 242-3654

The

Margin Personal & financial news you can use 14,200 14,000 13,800 13,600 13,400

Dow Jones 13,930.01 +137.54 WTFMTW

Oct. 24-31

NASDAQ

2,859.12

42.41

S&P 500

18.36

10-YEAR T-BONDS

0.09%

1,549.38

4.48% GOLD

$796.00

$8.20

SILVER

$0.11

$14.38 EURO

$1.450 CRUDE OIL

$94.53

Fed cuts rate to 4.5 percent BY SCOTT BLAKE FLORIDA TODAY

dustrial average rose 137.54 points Wednesday, closing at 13,930.01.

Those searching for a silver lining in the economy got a double dose of good news Wednesday, when the Federal Reserve cut a key interest rate, and the government reported the economy grew more than expected in the last quarter.

The Federal Reserve Board voted 9-1 to lower the federal funds rate by a quarter-point to 4.5 percent, as expected. The rate, which interest banks charge each other on overnight loans, influences prime lending rates for consumer loans.

Meanwhile, the Dow Jones in-

Commercial banks within

hours said they were cutting their prime rate — a benchmark rate for a number of credit cards, consumer loans and business loans — to 7.5 percent. Economists said the Fed’s action eventually should lower rates slightly on consumer credit purchases — from credit cards to auto and home loans. The rate cut follows a halfpoint cut by the Fed in September.

Economists generally think Wednesday’s rate cut may be the last one this year, and they say it probably will not be enough to improve substantially what retailers expect to be an off-year for holiday sales. The next Fed meeting is Dec. 11, its last of 2007. “Given high energy prices and the still-tight labor markets, the specter of inflation continues to hover around the economy, just out of sight,” Snaith said.

Nationwide, the effects of the housing slump on consumer spending have yet to be seen, said Josh Bivens, an economist with the Economic Policy Institute in Washington, D.C. “It may be next year before people realize they can no longer live off of their housing capital gains,” Bivens said. Contact Blake at 242-3644 or [email protected].

Scott Moody, AuthenTec’s cofounder and chief executive officer, was named by ITFlorida as Information Technology Leader of the Year.

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Harris, AuthenTec win tech honors

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MARKET NEWS AT To find out the latest numbers from U.S. financial markets, visit www.floridatoday.com/ stocks

BY WAYNE T. PRICE FLORIDA TODAY

Crude oil soars on supply drop Oil futures soared Wednesday to a new record near $95 a barrel after the government reported another drop in crude oil inventories. Light, sweet crude for December delivery rose $4.15 to settle at $94.53 a barrel on the New York Mercantile Exchange after rising as high as $94.74, a new trading record. The Energy Department’s Energy Information Administration said oil supplies fell by 3.9 million barrels last week. Analysts expected an increase of 100,000 barrels.

Photos by Rik Jesse, FLORIDA TODAY

Winners. Pam Gatto, president of Gatto’s Tires & Auto Service, along with store manager Mike Nevin and sales manager John Tidwell, says the key to success is hiring good people. The company was named best overall tire dealership in North America.

Gatto’s rolls over competition Tire chain named best in North America

About the company 0 Company: Gatto’s Tires & Auto Service 0 Headquarters: Melbourne 0 Locations: Seven in Brevard and Volusia counties 0 Employees: 70 people 0 Years in business: 35 0 Founder: Mike Gatto 0 President: Pam Gatto

BY WAYNE T. PRICE FLORIDA TODAY

Google surges beyond $700 Google Inc.’s stock price barreled through $700 for the first time Wednesday, propelled by a belief that the Internet search leader will become even more profitable as it plants its products and services in new markets. Google shares rose $12.23 to finish at $707. It took less than a month for the stock to leap from $600 to $700, building upon a fervor that has lifted Google’s market value by more than 30 percent since midSeptember. During that stretch, Google has created an additional $53 billion in shareholder wealth.

With demand up, consider drillers As oil prices and demand surge around the world, it’s a good time to be investing in oil drilling, SmartMoney says. A portfolio the magazine tracked for five months this year returned 31 percent. The top performer was McDermott International Inc. (MDR), which makes oil platforms and retrofits coal-fired power plants to cut emissions. It returned 61.5 percent. Other hot picks included Noble Corp. (NE), which returned 35.8 percent; Rowan Cos. Inc. (RDC), which returned 21.6 percent; Diamond Offshore Drilling Inc. (DO), which returned 20.5 percent; and ConocoPhillips (COP), which returned 17.3 percent — Gannett News Service

The Margin is compiled from staff and wire reports.

Gatto’s Tires & Auto Service, the Melbourne-based service chain, has received a top honor from Tire Review magazine. The 35-year-old Gatto’s bested more than 100 other independent shops to be judged best overall tire dealership in North America. Judges in the national contest considered categories such as customer service, expertise, community service, appearance, achievement and merchandising. Gatto’s received the highest overall score in all the categories. “When I saw the criteria used by the judges — after we were notified we had won — I realized that we focus very heavily on each and every one of them,” company President Pam Gatto said. Gatto’s father, Mike, started the business 35 years ago in Melbourne, and it has grown to seven locations in Brevard and Volusia counties. “This was the very first year for the contest, and we couldn’t be more proud to have Gatto’s as our first Top Shop Award recipient,” Tire Review magazine Editor Jim Smith said. “We developed the contest to bring focus to what makes for a successful small business, especially one in a highly competitive industry like ours,” Smith See GATTO’S, 2C

Contact Price at 242-3658 or [email protected] .

Award. Pam Gatto is president of Gatto’s Tire’s & Auto Service store in Melbourne. The store won the “Top Shop Award” from Tire Review magazine.

Wal-Mart to holiday shoppers: C U @ the sale BY WAYNE T. PRICE

son,” a statement from the company said.

FLORIDA TODAY

Wal-Mart, in hopes of getting consumers to start shopping early for the holidays, plans to announce today a series of special sales that use e-mail and text messages to get the word out. Wal-Mart will offer “Black Friday prices” on “five of the most sought after gifts this sea-

Brevard County businesses, and business leaders, made out fairly well at the annual ITFlorida awards gala. Harris Corp. and AuthenTec Inc., two Melbourne-based companies, were recognized by the Tallahassee-based business technology organization for providing the “best application of information technology throughout Florida.” Also getting special recognition was Scott Moody, AuthenTec’s co-founder and chief executive officer, who ITFlorida named its Information Technology Leader of the Year for 2007. Moody, who co-founded AuthenTec in 1998, was recognized as the individual who has made significant achievements within the Florida information-technology industry and directly affected the growth and viability of that sector. AuthenTec designs and manufactures fingerprint sensors that provide security for users of personal computers, cell phones and other consumer electronic products. Along with AuthenTec and Harris, Craig Technologies Inc. was one of 40 finalists from Florida for the top honors. “Having three strong corporate citizens from Brevard County make a positive showing at this event solidifies the hightech direction our community is headed in,” said Lynda Weatherman, CEO of the Economic Development Commission of Florida’s Space Coast.

Black Friday is a retailing industry term for the day after Thanksgiving, the traditional start of the Christmas shopping season. What are the gifts Wal-Mart will be pushing? That’s a secret. Wal-Mart is telling customers to sign up for e-mail or text-

message alerts, or go online to www.walmart.com/secret to find out what items are on sale or to sign up for the alerts. The items will be available in stores beginning Friday, when Wal-Mart officially opens its special Christmas shops within its stores. Retail experts are predicting many stores will start so-called Black Friday sales early.

NOT ONE BUT EVERY IN STOCK

Wal-Mart says its pricing will save typical families more than $650 this Christmas season. “Our customers can fulfill all their holiday needs at Wal-Mart and not only save money, but buy gifts they can be proud to give,” John Fleming, chief merchandising officer for Wal-Mart Stores U.S., said in a statement. Contact Price at 242-3658 or [email protected].

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Chamber sets date for awards FLORIDA TODAY Staff

The Military Affairs Council of the Cocoa Beach Area Chamber of Commerce will host its Community Services Awards beginning at 5:30 p.m. Nov. 28 at the Comfort Inn & Suites Resort, 3901 N. Atlantic Ave., Cocoa Beach. This annual event recognizes people who are serving on the Space Coast for their contributions of personal time and talents to nonprofit and charitable organizations in Brevard County. Commanding officers from each of the military branches nominate enlisted and noncommissioned personnel for the awards. The cost to attend this event is $20 per person (civilians) or $15 per person (active-duty military). Contact the chamber at 459-2200 by Nov. 26.

MIKE ERDMAN

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