Made in USA NEWS
RSS:
Publications
Comments

Frigid Fla. winter is bad news for tomato lovers

Ripe tomatoes are left to rot in the dirt in a field Thursday, March 4, 2010, in Plant City, Fla.  The recent cold weather in Florida has been especially hard on tomato farmers and is predicted to drive the up prices at the grocery store. (AP Photo/Chris O'Meara)

You say tomato, restaurants say sorry: Fla.’s freezing temps cause tomato shortage

Tamara Lush, Associated Press Writer, On Friday March 5, 2010, 5:35 am

ST. PETERSBURG, Fla. (AP) — A frigid Florida winter is taking its toll on your sandwich. The Sunshine State is the main U.S. source for fresh winter tomatoes, and its growers lost some 70 percent of their crop during January’s prolonged cold snap.

Wholesale prices are up nearly five times over last year. That means you can say goodbye to the beefsteaks on that burger and prepare to pay more than usual for the succulent wedges in your salad.

At Costello Sandwich and Sides in Chicago, which uses 10 to 15 cases of tomatoes a week and is now paying $25 a case instead of $15, customers can expect to get a bit less tomato on their sandwiches. The shop hasn’t raised prices or stopped serving tomatoes altogether, but manager Matthew Villareal says he can see the tomatoes are soft when the prep cooks are cutting them.

“The tomato prices definitely have gone up and the quality isn’t so great either,” he said. “We just kind of eat the cost.”

An unusually cold January in Florida destroyed entire fields of tomatoes — along with some green beans, sweet corn and squash. The cold scarred the tomatoes, damaged their vines, and forced many farmers to delay their harvest.

The average wholesale price for a 25-pound box of tomatoes is now $30, up from $6.50 a year ago. Florida’s growers would normally ship about 25 million pounds of tomatoes a week; right now, they’re shipping less than a quarter of that, according to Reggie Brown of the Florida Tomato Grower’s Exchange, a tomato farmer cooperative in Maitland.

Some parts of Florida saw average temperatures so low that this January and February were among the 10 coldest on record, according to the National Weather Service.

“Anecdotally, from talking to some real long timers, as well as people who watch the weather, this has been the most extended cold in maybe 60 years,” said Terry McElroy, spokesman for the Florida Department of Agriculture.

Industry estimates suggest that about two-thirds of the tomato crop in the major southwestern production region was destroyed, according to a Feb. 25 United States Department of Agriculture report.

There’s more bad news, Brown said: Because of the continued cold weather — 38-degree temperatures were predicted Friday in some central Florida growing areas — the current crop of fruit isn’t as far along as everyone had hoped.

“We thought they’d recover by early April, but now it’s mid- April,” he said.

And because high demand has driven up domestic prices, many wholesalers are buying from Mexico instead.

“We’re obviously losing market share to Mexico, and there’s always a price to pay to get the customer to get back into the Florida market,” Brown said.

Florida is the only place where tomatoes are grown on a large scale in the U.S. during winter. California doesn’t grow them until later in the year, and much of that state’s crop is used for processed foods, such as ketchup, sauce and juice. Other states grow tomatoes in greenhouses year- round, but Florida’s winter tomato crop is by far the largest.

At Subway restaurants, the timing of this year’s shortage was fortuitous: It hit right when the sandwich chain switches its tomato purchases from Florida to other regions.

While they so far haven’t been impacted, managers are ordering different varieties of tomatoes to keep supplies steady, a spokesman said Thursday.

McDonald’s Corp., CKE Restaurants Inc., (which owns Hardees, Carl Jr.) and Darden Restaurants (the nation’s biggest casual dining chain, which owns Olive Garden, Red Lobster, Longhorn Steakhouse; Capital Grille; Seasons 52) said it’s business as usual and no shortages are being reported.

Some Wendy’s restaurants posted signs saying tomatoes would only be provided upon request because of limited availability.

But smaller restaurants are feeling the pinch. In Chicago, where a hot dog isn’t a hot dog without chopped tomatoes, you might end up with just a bit less on the bun.

“We’re a little more careful with our tomatoes,” admitted Bill Murphy, owner of Murphy’s Red Hots, which uses 75 to 100 pounds of the fruit a week. “You still owe it to your customers to get them out there and get them on the dogs. You try to get an extra piece out of every tomato if you can. You don’t toss them around like they’re pennies, you toss them around like they’re quarters.”

Associated Press writers Caryn Rousseau and Ashley Heher in Chicago contributed to this report.


Ford to invest $155M, add jobs at engine plant

CLEVELAND – Ford Motor Co. said it will spend $155 million upgrading a factory to build a new fuel-efficient V6 engine for the 2011 Mustang and expects to add 60 jobs as a result.

Ford says the upgrades are part of $1.8 billion in investments for engineering and facility modernization that will support its 2011 vehicle launches. There have been a total of 1,260 jobs added by Ford as part of those changes.

Ford recently had around 600 workers on indefinite layoff nationwide.

The automaker developed nine upgraded engines and drive trains for its 2011 model Ford, Lincoln and Mercury vehicles.

The 2011 Mustang goes on sale this spring.


Duck! Watch out for falling home prices

cnnmoney

Les  Christie, staff writer, On Thursday February 25, 2010, 10:08 am EST

Despite signs that the real estate market might be lurching forward, prices are expected to fall further this year and next.

The average home price in the United States will fall by about 6% by September 2011, according to a joint report between Fiserv and Moody’s Economy.com. And that’s after plunging more than 27% in the past three years.

Most of the projected home price decline will occur during the usually slow summer months of 2010. After that, prices should begin to stabilize, according to Fiserv, and stay almost flat through fall of 2011.

The main reason for continued decline, according to Mark Zandi, economist and co-founder of Economy.com, is foreclosures — the same thing that’s plagued markets for the past three years.

“Foreclosure sales will pick up this spring as mortgage servicers figure out who can qualify for a modification and who can’t,” said Zandi.

He figures there are at least 4.5 million mortgage loans either in foreclosure or clearly headed in that direction. When that additional inventory hits the market, it will provide numerous choices for buyers and encourage sellers to drop their listing prices.

The end of two federal programs, which have been propping up markets, will also tamp down prices.

The Federal Reserve has been purchasing mortgage-backed securities since early 2009, scooping up as much as $1.25 trillion worth. That has dampened rate increases by providing a ready market for the securities. But the Fed’s program lapses on March 31, when it cedes the playing field to private investors, who will almost surely demand higher rates.

Any resulting rise in rates will cause some buyers to withdraw from the market and others to look for lower priced homes. Either way, demand for homes drops and so do prices.

A month after the Fed bows out of the mortgage-buying market, the homebuyer tax credit will start to expire. To qualify for the $8,000 credit, homebuyers must sign a contract before April 30 and close by June 30. When the first date passes, many buyers are expected to vacate the market, weakening the demand for homes.

In a broader sense, home prices are ultimately decided by employment. “If [the job market] improvement is stronger than expected, prices will get better. If it’s weaker than expected, prices will be worse,” Zandi said.

Worst of the worst

The worst performing market will be Miami, Fla. Moody’s projects prices there to drop a heart-stopping 29.2% by Sept. 30. That follows a 47.7% decline the metro area recorded in the past three years. Grand total: 64% drop.

Other disastrous performances will be turned in by the Hanford, Calif., metro area, where prices are projected to plummet 27.2% through Sept. 30, 2010 following their 36.9% drop for the previous 36 months. Ft. Lauderdale and West Palm will also register steep drops.

There’s some good price news coming out of California’s Central Valley for a change; prices will begin to emerge from their free fall toward the end of this year.

In Merced, for example, which crashed and burned by 71.8% in the past three years (through last September), they’ll only fall only another 6.2% in the next six months before bouncing back with a rise of 10.1% by Sept. 30, 2011.


Brisk 5.9 percent growth in Q4 will likely fade

JEANNINE AVERSA, AP Economics Writer

WASHINGTON – The economy rocketed ahead at a 5.9 percent pace in the final quarter of 2009, stronger than initially estimated. But the growth spurt isn’t expected to carry over into this year.

The fresh reading on the nation’s economic standing, released by the Commerce Department on Friday, was better than the government’s initial estimate a month ago of 5.7 percent growth. It would mark the strongest showing in six years.

Even so, it didn’t change the expectation of much slower economic activity in the current January-to-March quarter.

Adding to that picture was a separate report Friday that sales of previously occupied homes fell sharply in January for the second straight month, to their lowest point since summer. The results were far worse than forecast. They are another sign the housing market’s recovery is faltering.

Roughly two-thirds of last quarter’s GDP growth came from a burst of manufacturing — but not because consumer demand was especially strong. In fact, consumer spending weakened at the end of the year, even more than the government first thought.

Instead, factories were churning out goods for businesses that had let their stockpiles dwindle to save cash. If consumer spending remains lackluster as expected, that burst of manufacturing — and its contribution to economic activity — will fade.

The signs aren’t hopeful. Consumer confidence took an unexpected dive in February. Unemployment stands at 9.7 percent. Home foreclosures are at record highs. And many Americans are still having trouble getting loans.

Forecasters at the National Association for Business Economics predict the economy will expand at only a 3 percent pace in the first quarter of this year. The next two quarters should log similar growth, they predict.

Unlike past rebounds driven by the spending of shoppers, this one is hinging more on spending by businesses and foreigners.

Stronger spending by businesses and foreigners contributed to the bump-up in economic growth in the fourth quarter. So did the fact that companies stopped slashing their stockpiles of goods. During the worst of the recession, companies cut inventories at record rates.

Businesses boosted spending on equipment and software at a sizzling 18.2 percent pace, the fastest in nine years. Foreigners snapped up U.S.-made goods and services, which propelled exports to grow at 22.4 pace, the most in 13 years.

And the slower drawdown in businesses’ stockpiles accounted for nearly 4 percentage points of the fourth-quarter’s overall growth, even more than the government first estimated.

Consumers, however, lost energy. They increased their spending at a pace of just 1.7 percent. That was weaker than first thought and down from a 2.8 percent growth rate in the third quarter.

Looking ahead, consumer spending is expected to aid the recovery — not lead it. That’s one reason why the recovery is expected to move forward at only a moderate pace of around 3 percent in coming quarters.

In normal times, such growth would be considered respectable. But the nation is emerging from the worst recession since the 1930s. Sizzling growth in the 5 percent range would be needed for an entire year to drive down the unemployment rate, now 9.7 percent, by just 1 percentage point.

For all of this year, the economy is expected to grow 3.1 percent, according to the NABE forecasters. Though modest, that pace would mark a big improvement from 2009, when the economy contracted by 2.4 percent — the worst showing since 1946.

As government stimulus wanes and Federal Reserve economic-support programs end, the economy — especially the fragile housing market — could suffer. Economists say the odds of the economy sliding back into a recession this year are low, but they won’t rule it out.

In appearances on Capitol Hill on Wednesday and Thursday, Federal Reserve Chairman Ben Bernanke said record-low interest rates are still needed to make sure the recovery becomes firmly rooted and to help ease high unemployment.

If gains from inventories and exports are taken out, the economy last quarter grew at just a 1.6 percent pace.

And, improvements in the housing market also tailed off at the end of last year — despite massive government support.

There’s worry inside and outside the Fed about how housing will fare once a homebuyer tax credit ends in the spring and the Fed stops a mortgage-securities buying program that has lowered mortgage rates and boosted sales.


January home sales fall 7.2 percent

By ALAN ZIBEL, AP Real Estate Writer

WASHINGTON – Sales of previously occupied homes took a large drop for the second straight month in January, falling to the lowest level since summer. It was another sign the housing market’s recovery is faltering.

The National Association of Realtors said sales fell 7.2 percent to a seasonally adjusted annual rate of 5.05 million from a downwardly revised pace of 5.44 million in December.

The results, the weakest since June, were far worse than forecast. Economists expected a slight increase to a rate of 5.5 million.

The report “is certainly not good,” said Lawrence Yun, the trade group’s chief economist.

Sales declined throughout the country, falling the most — nearly 11 percent — in the Northeast. Sales fell by about 7 percent in the South and Midwest and by more than 5 percent in the West.

Potential buyers have left the market this winter because the deadline for a tax credit for first-time buyers was extended. It had been set to expire on Nov. 30, but Congress extended the deadline until April 30 and expanded it to existing homeowners who move.

“We hope that there will be another surge come late spring” as the new deadline nears, Yun said.

The median sales price was $164,700, unchanged from a year earlier and down 3.4 percent from December.

The inventory of unsold homes on the market was down slightly at 3.27 million. That’s a 7.8 month supply at the current sales pace, up from a recent low of 6.5 months in November.

The bleak report comes after the government reported Wednesday that sales of newly built homes plunged 11 percent to a record low in January. The report, which measures signed contracts to buy homes rather than completed sales, also came as surprise to economists.

The main question hanging over the housing market this year is whether interest rates will rise, and by how much. The Federal Reserve’s $1.25 trillion program to push down mortgage rates is scheduled to expire on March 31.

After that program runs out, mortgage rates should not spike, but rather rise gradually to about 6 percent over the next year, predicts Cameron Findlay, chief economist at LendingTree.com. That will mean homebuyers may have to reduce their price range, and could put downward pressure on prices.


10 Job Sectors in Decline

10 Job Sectors in Decline

What to Do If Your Industry Is on the Way Out

by Margaret Steen, for Yahoo! HotJobs
People in almost every profession may feel like jobs are scarce right now. For many industries, this is a temporary situation. But jobs in some fields are expected to continue disappearing even after the economy picks up.Is your industry on the decline? The federal government projects that a number of industries will lose jobs from 2008 to 2018.

“You can’t sit around and wait for news to come out about what’s going to happen to your industry,” said Alexandra Levit, author of “New Job, New You.” “You have to be proactive about this.”

Disappearing Jobs

Here’s a list of the top 10 industries expected to lose the most jobs by 2018 — and what to do if you’re working in one of them:

1. Department stores: Projected to lose 10.2 percent of the 1.56 million jobs they had in 2008.

2. Semiconductor manufacturing: Projected to lose 33.7 percent of the 432,000 jobs it had in 2008.3. Motor vehicle parts manufacturing: Projected to lose 18.6 percent of its 544,000 jobs.

4. Postal service: Projected to lose 13 percent of the 748,000 jobs it had in 2008.

5. Printing and related jobs: Projected to lose 16 percent of its 594,000 jobs.

6. Cut-and-sew apparel manufacturing: Projected to lose 57 percent of its 155,000 jobs.

7. Newspaper publishers: Projected to lose 24.8 percent of its 326,000 jobs.

8. Mining support jobs: Projected to lose 23.2 percent of its 328,000 jobs.

9. Gas stations: Projected to lose 8.9 percent of its 843,000 jobs.

10. Wired telecom: Projected to lose 11 percent of its 666,000 jobs.

Semiconductors are one of several manufacturing industries on the declining list. Because so many different types of manufacturing jobs are disappearing, it will not be easy to simply get another manufacturing job. You may need to develop some completely new skills.

Levit suggests beefing up your resume with volunteer work so you can show skills that will be applicable in other industries. For example, helping a volunteer organization deal with its members can show that you have client-service skills.

She also recommends being innovative to keep your job. “You need to be front and center with management, giving them suggestions for how they can remain competitive.”

Are You Affected?

What should you do if your industry is on this list? First, don’t panic. The job declines in these industries are projected to take place over a decade. And many jobs — a majority in most of these industries — will remain even after 10 years.

Still, it’s good to start thinking about Plan B. Build your savings and start researching what other industries might be able to use your skills.

If you’re nearing retirement and had been planning to move into a different field, you might want to make the move earlier. And if you have many years of work ahead of you, you should consider seriously whether it’s feasible for you to stay in your industry for the long term.

“Start sharpening your transferrable skills,” Levit said. These include project management, budgeting, and customer service. “You want to be developing a resume that showcases the skills you have in all those areas.”


New home sales hit record low in January

MARTIN CRUTSINGER, AP Economics Writer

WASHINGTON – Sales of new homes plunged to a record low in January, underscoring the formidable challenges facing the housing industry as it tries to recover from the worst slump in decades.

The Commerce Department reported Wednesday that new home sales dropped 11.2 percent last month to a seasonally adjusted annual sales pace of 309,000 units, the lowest level on records going back nearly a half century. The big drop was a surprise to economists who had expected sales would rise about 5 percent over December’s pace.

While winter storms were partly to blame, home sales have fallen for three straight months despite sweeping government support. Economists were already worried that an improvement in sales in the second half of last year could falter as various government support programs are withdrawn.

“There is no doubt that January and February are going to be messy months for housing, given the severe weather conditions, but that doesn’t take away from the fact that the housing sector has taken another big step back, even with the government aid,” Jennifer Lee, a senior economist at BMO Capital Markets, said in a research note.

January’s weakness was evident in all regions except the Midwest, where sales posted a 2.1 percent increase. Sales were down 35 percent in the Northeast, 12 percent in the West and almost 10 percent in the South.

The drop in sales pushed the median sales price down to $203.500. That was down 5.6 percent from December’s median sales price of $215,600, and off 2.4 percent from year-ago prices.

New home sales for all of 2009 had fallen by almost 23 percent to 374,000, the worst year on record. The National Association of Home Builders is forecasting that sales will rise to more than 500,000 sales this year, an improvement from 2009 but still far below the boom years of 2003 through 2006 when builders clocked more than 1 million new home sales per year.

January’s data will increase concerns that the housing rebound could falter in coming months as the government withdraws the support it has used to try to bolster the housing market, which stood at the epicenter of the country’s overall recession, the worst downturn since the 1930s.

A $1.25 trillion program from the Federal Reserve which has held down mortgage rates is set to end March 31 and tax credits to bolster home buying are scheduled to expire at the end of April.

First-time home buyers could qualify for a credit of up to $8,000 while homeowners who have lived in their current properties for at least five years could claim a tax credit of up to $6,500 if they decided to move into another home.

Though the overall economy started growing again this past summer, economists are worried because unemployment remains high. This weakness is causing consumers to shy away from spending, especially on big-ticket items such as homes.

The Conference Board reported Tuesday that its Consumer Confidence Index fell almost 11 points to 46 in February, pushing the index down to its lowest reading since last April. At 46, the index is a long way from the 90 reading that economists generally view as depicting healthy consumer attitudes.


Chip Makers, the Next Battle Is in Smartphones

by Ashlee Vance

The semiconductor industry has long been a game for titans.

More from NYTimes.com:

Skype in a Struggle to Be Heard on Mobile Phones

Microsoft Starts Over in Phone Software


The going rate for a state-of-the-art chip factory is about $3 billion. The plants typically take years to build. And the microscopic size of chip circuitry requires engineering that practically defies the laws of physics.

Over the decades, legions of companies have found themselves reeling, even wiped out financially, from trying to produce some of the most complex objects made by humans for the lowest possible price.

Now, the chip wars are about to become even more bloody. In this next phase, the manufacturers will be fighting to supply the silicon for one of the fastest-growing segments of computing: smartphones, tiny laptops and tablet-style devices.

The fight pits several big chip companies — each trying to put its own stamp on the same basic design for mobile chips — against Intel (INTC), the dominant maker of PC chips, which is using an entirely different design to enter a market segment in which it has a minuscule presence.

Consumers are likely to benefit from the battle, which should increase competition and innovation, according to industry players. But it will be costly to the chip manufacturers involved.

More from Yahoo! Finance:

Your Cell Phone Company’s Dirty Little Secret

What Your Gadget Really Costs

The Least-Trusted Banks in America


Visit the Banking & Budgeting Center

“I worry about that,” said Ian Drew, an executive vice president at ARM Holdings (ARMH), which owns the rights to the core chip design used in most smartphones and licenses that technology to manufacturers. “But ultimately, these chip makers are all pushing each other, and if one falls over, there are still two or three left.”

Intel, based in Santa Clara, Calif., has long been held up as the gold standard when it comes to ultra-efficient, advanced chip manufacturing plants. The company is the last mainstream chip maker to both design and build its own products, which go into the vast majority of the PCs and servers sold each year.

Most other chips, for items as diverse as cars and printers, are built by a group of contract manufacturers, based primarily in Asia, to meet the specifications of other companies that design and market them. Traditionally, these companies, known as foundries, have trailed Intel in terms of manufacturing technology and have handled chips with simpler designs.

But with mobile technology, an expensive race is on to build smaller chips that consume less power, run faster and cost less than products made at older factories.

For example, GlobalFoundries plans to start making chips this year in Dresden, Germany, at what is arguably the most advanced chip factory ever built. The initial chips coming out of the plant will make their way into smartphones and tabletlike devices rather than mainstream computers.

“The first one out there with these types of products is really the one that wins in the marketplace,” said Jim Ballingall, vice president for marketing at GlobalFoundries. “This is a game changer.”

The company, a new player in the contract chip-making business, was formed last year when Advanced Micro Devices (AMD), Intel’s main rival in the PC chip market, spun off its manufacturing operations. GlobalFoundries, based in Sunnyvale, Calif., has been helped by close to $10 billion in current and promised investments from the government of Abu Dhabi.

The vast resources at GlobalFoundries’ disposal have put pressure on companies like Taiwan Semiconductor Manufacturing (TSM), United Microelectronics (UMC) and Samsung Electronics, which also make smartphone chips. The message from GlobalFoundries is clear: as the newcomer in the market, it will spend what it takes to pull business away from these rivals.

At the same time, Apple (AAPL), Nvidia (NVDA) and Qualcomm (QCOM) are designing their own takes on ARM-based mobile chips that will be made by the contract foundries. Even without the direct investment of a factory, it can cost these companies about $1 billion to create a smartphone chip from scratch.

Recently, these types of chips have made their way from smartphones like the iPhone to other types of devices because of their low power consumption and cost.

For example, Apple’s coming iPad tablet computer will run on an ARM chip. So, too, will new tiny laptops from Hewlett-Packard (HPQ) and Lenovo. A couple of start-ups have even started to explore the idea of using ARM chips in computer servers.

“Apple was the first company to make a really aspirational device that wasn’t based on Intel chips and Microsoft’s (MSFT) Windows,” said Fred Weber, a chip industry veteran. “The iPhone broke some psychological barriers people had about trying new products and helped drive this consumer electronics push.”

Companies like Nvidia and Qualcomm want to get their chips into as many types of consumer electronics as possible, including entertainment systems in cars, and home phones with screens and Web access.

At the Mobile World Congress in Barcelona, Spain, last week, manufacturers displayed a wide range of slick devices based on ARM chips, including a host of tablets and laptops. In addition, HTC released its Desire smartphone, built on a Qualcomm ARM chip called Snapdragon, which impressed show-goers with its big touch-screen display.

Meanwhile, Intel is about to enter the phone fray, both to expand its market and defend itself against the ARM chip makers. Its Atom line of chips, used in most netbooks and now coming to smartphones, can cost two to three times as much as the ARM chips, according to analysts. In addition, the Atom chips consume too much power for many smaller gadgets.

Intel executives argue that consumers will demand more robust mobile computing experiences, requiring chips with more oomph and PC-friendly software, both traditional Intel strengths.

“As these things look more like computers, they will value some of the capabilities we have and want increasing levels of performance,” said Robert B. Crooke, the Intel vice president in charge of the Atom chip. “We’re seeing that from our customers in a number of spaces, including digital TVs and hand-held devices.”

Intel also has deep pockets. As of December, the company had more than $9 billion in cash and short-term investments.

Mr. Crooke said that Intel’s manufacturing expertise would allow it to produce a new crop of chips every 18 months or so that would be cheaper and use less power. As rivals shift to more cutting-edge chip-making techniques, he said, they are likely to run into problems that Intel solved years ago.

At the same time, competition from other chip makers will pressure them to lower their prices.

“I don’t know whether it will make it harder for these guys to invest in the future, but you certainly would think so,” Mr. Crooke said.


Senate Advances Jobs Bill

Wall Street Journal

Republicans Vote for $15 Billion Measure in Rare Moment of Bipartisanship

By NAFTALI BENDAVID

WASHINGTON—The Senate voted to advance a $15 billion job-creation package Monday, showing a rare hint of bipartisanship as five Republicans voted to end debate on the Democratic bill, including newly elected Sen. Scott Brown of Massachusetts.

Scott Brown, Massachusetts’ newly-elected senator, voted with four other Republicans to pass a jobs creation package. Is it the beginning of bipartisanship? Jerry Seib joins the News Hub panel to discuss.

    The measure, which includes tax breaks for businesses hiring unemployed workers, moved ahead on a 62-30 vote, with Sen. Ben Nelson (D., Neb.) voting against it. The Senate is expected to vote on final passage of the bill within days.

    Polls show the public deeply concerned about the economy and a stubbornly high unemployment rate. President Barack Obama has said job creation is a top goal of the administration. But while few senators took issue with the jobs package forwarded Monday, several Republicans said they were unhappy that Majority Leader Harry Reid had blocked a larger $85 billion program.

    The centerpiece of Monday’s bill was a provision that frees any company hiring an unemployed worker from paying the worker’s 6.2% Social Security payroll tax in 2010. If the company keeps the new hire for a year, it would receive a $1,000 tax credit.

    The bill also would allow businesses to write off the depreciation of new equipment more quickly. It would extend authorization for highway and transit construction funding. And it would help state and local governments issue construction bonds.

    Republicans were angry that Mr. Reid set aside provisions that would have extended other tax breaks, including a tax credit for research-and-development spending. The bill also excludes an extension of unemployment-insurance benefits and Cobra health programs.

    “This vote was not about jobs. I wish it were,” Sen. Orrin Hatch (R., Utah.) said. “Two weeks ago, the majority leader decided to pull the rug out from under a common-sense bipartisan bill only hours after it was introduced…and then quickly made sure that Republicans had no input into the measure.”

    Democrats said they planned to address these items in separate legislation and that they wanted the slimmed-down bill advanced Monday to focus on job creation.

    JOBS

    Associated PressSenate Majority Leader Harry Reid courted several moderate Republicans for support for the jobs bill.

    “This Senate jobs bill is not perfect,” said Mr. Brown, whose election victory in Massachusetts last month put an end to the Democrats ability to mount a 60-vote majority in the Senate, the number of votes needed to overcome filibusters. “I wish the tax cuts were deeper and broader, but I voted for it because it contains measures that will help put people back to work.”

    Mr. Brown was joined in voting yes by fellow Republican Sens. Olympia Snowe and Susan Collins of Maine, George Voinovich of Ohio and Christopher Bond of Missouri.

    Democrats suggested the vote could open the door for a period of greater bipartisanship. “It’s really a new day,” said Mr. Reid of Nevada.

    The vote represented a successful gamble by Mr. Reid. Earlier this month, Sens. Max Baucus (D., Mont.) and Charles Grassley (R., Iowa) proposed an $85 billion jobs bill that had bipartisan support. But some Democrats complained that the legislation was loaded with extraneous provisions designed to win Republican votes.

    So Mr. Reid offered his stripped down version, hoping some Republicans would come around, especially with voters so anxious about joblessness.

    The House passed a $154 billion jobs bill late last year, including elements similar to those in the Senate bill. Mr. Reid plans to unveil a series of additional job-creation measures in coming months.

    Write to Naftali Bendavid at naftali.bendavid@wsj.com


    Intel, VC firms to invest $3.5B in US companies

    WASHINGTON – Intel and 24 venture-capital firms are planning to invest $3.5 billion over the next two years on U.S.-based technology companies to help create new jobs.

    Intel Corp.’s CEO, Paul Otellini, announced the “Invest in America Alliance” in a speech Tuesday in Washington.

    The program will target areas such as clean technology, information technology and biotechnology. It also includes a commitment by 17 major technology companies to boost their hiring of college graduates to make cutting-edge technologies.