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News in Brief

S&P may downgrade Alcoa ratings on weak operations
SAN FRANCISCO (MarketWatch) -- Standard & Poor's said Wednesday that it may downgrade Alcoa Inc.'s ratings on a weak operating environment and low aluminum prices. S&P has a BBB+ long-term and A-2 short-term corporate credit rating on Alcoa.

NYSE halts trade in Satyam Computer until further notice
NEW YORK (MarketWatch) -- Trading in Satyam Computer Services Ltd. was halted on the New York Stock Exchange ahead of the market's open Wednesday. The stock exchange said its regulators were evaluating news related to India's fourth-largest software company, with its shares halted until further notice. Earlier, shares of Satyam crashed 77% in Mumbai after the company's founder quit after revealing the company had inflated its balance sheet by more than $1 billion.

Fannie Mae to offer new 3-year Benchmark Notes
SAN FRANCISCO (MarketWatch) -- Fannie Mae will offer 3-year Benchmark Notes with the issue size to be determined, the mortgage giant said Wednesday. The issue will price on Thursday with settlement scheduled for Friday.

Sheila Bair to stay as FDIC chair under Obama: WSJ
SAN FRANCISCO (MarketWatch) -- Sheila Bair, the chair of the Federal Deposit Insurance Corporation, will remain in her post under the Obama Administration, The Wall Street Journal reported Wednesday on its Web site, citing Democratic officials. Bair, a Republican, was appointed to the post by President George W. Bush in 2006.

Stimulus must help economy in the long run, Obama says
WASHINGTON (MarketWatch) -- President-elect Barack Obama said Wednesday that his proposals to jump-start the economy must also build a stronger nation in the long run. Obama said the size of the stimulus package hasn't yet been settled in discussions with lawmakers, but it would likely be on the "high side" of his team's estimates and lower than some economists have been recommending. The latest guesses are that it will be about $775 billion over two years. Obama acknowledged that the federal government could run trillion-dollar deficits for many years if nothing is done to rein in unnecessary spending. He named long-time McKinsey & Co. executive Nancy Killefer as the nation's first chief performance officer to examine federal spending line by line.

Crude extends losses as U.S. inventories rise
NEW YORK (MarketWatch) - Crude-oil futures widened their losses Wednesday after data showed U.S. crude inventories rose more than expected. Stockpiles gained 6.7 million barrels to 325.4 million in the week ended Jan. 2, the U.S. Energy Information Administration reported. Analysts surveyed by energy information provider Platts had expected a buildup of 1.5 million barrels. After the data, crude-oil futures for February delivery were off 7.7% at $44.84 a barrel on the New York Mercantile Exchange. Oil was down 3.6% before the data. Gasoline supplies rose by 3.3 million barrels in the latest week, while distillate stocks rose by 1.8 million barrels, the EIA reported.