Consumer Save More Than They Spend, Markets Open Lower

While incomes climbed by the largest amount in a year, consumers saved more than they spent. The Dow lost 24 points to 8448 while Nasdaq slipped 3 points to 1826.

On the upside

Although Palm (Nasdaq: PALM) widened fourth quarter losses, the results were better than expected.

Russian newspaper Vedomosti reported that Telenor and Alfa Group were close to an agreement to merge their stakes in Vimpelcom (NYSE: VIP) and Kyivstar.

A bidding war for Borland Software (Nasdaq: BORL) began when an unnamed party offered $1.25 per share for the company, topping Micro Focus' $1.15 per share offer made last week.

On the downside

The Food and Drug Administration issued Immucor (Nasdaq: BLUD) a notice of intent to revoke the license for some blood reagents.

Although KB Home (NYSE: KBH) narrowed second quarter losses, the results were worse than expected.

The Associated Press reported that former MGM Mirage (NYSE: MGM) chief executive Terry Lanni received a compensation package valued at approximately $5.8 million in 2008.

In the broad market, declining issues outpaced advancers by a margin of nearly 5 to 4 on the NYSE and by nearly 7 to 5 on Nasdaq. The Russell 2000 which tracks small cap stocks eased 2 points to 506.