Schaeffer's Daily Market Blog Features: U.S. Airways, Marsh & McLennan, AT&T, Apple Computer, and Goodyear Tire & Rubber

November numbers for Delta Air Lines (DALRQ) show narrowing losses, the company said in its monthly operating report filed with the U.S. Bankruptcy Court for the Southern District of New York. The third-ranked air carrier in terms of domestic traffic reported this morning that its losses for November came to $49 million, including reorganization items, compared with $181 million in losses for the same month in 2005. Its monthly loss excluding reorganization items was $12 million. November operating income was $52 million, including a $31 million negative impact from fuel hedges, and Capacity fell 6.5 percent in November, Delta said.

DALRQ is currently in Chapter 11 reorganization and has set forth a plan to reemerge from bankruptcy status as a stand-alone carrier. DALRQ's creditors are currently weighing this plan against the proposed $8.3 billion hostile bid from U.S. Airways Group (NYSE:LCC).

"November's results continue the momentum that will deliver a nearly $2 billion year-over-year improvement in Delta's net income excluding reorganization items for 2006," Ed Bastian, DALRQ's chief financial officer, said in a statement. Meanwhile, LCC's Chief Executive Doug Parker said that his company has no plans to ease their pursuit of DALRQ and that he sees no reason LCC would increase its $8.4 billion offer.

So far in trading today, both companies have dropped slightly, with DALRQ standing at $1.30 per share, and LCC at $55.20.

12:23 PM Power Corp. Wins Bidding War for Putnam

According to The Wall Street Journal, the bidding battle for Putnam Investments is over. Putnam's parent company, Marsh & McLennan (NYSE:MMC) has agreed to sell Putnam to Canadian Holding company Power Corp. for $3.9 billion, which analysts perceive as fair market value for the Bostonian financial institution. Putnam brings with it a mixed bag of upsides and downsides. On one hand, both compliance issues with regulators and mutual fund-related performance problems have been, for the most part, completed. Yet, many on the street can't ignore the fact that Putnam funds still do not perform well enough to justify their cost.

Power Corp. beat out Amvescap Plc (AVZ) of the U.K. for the right to purchase Putnam, but that seems to have been a case of losing the battle and potentially winning the war. The news that AVZ was out of the deal seems to have elicited a sigh of relief from AVZ shareholders. After riding on support of its 10-day moving average in the $22 to $23 range for most of the past month, shares today have bounced up 6.5 percent to $24.62. MMC is up only slightly at $30.70.

1:26 PM Midday Rundown

As we roll on through the final trading session of 2006, stocks are mixed, but the Dow Jones Industrial Average (DJIA - 12,502.9) is set to log a 17-percent gain for the year. The last time the venerable index had as good a year was 2003. The blue chips are currently flat, but have found a bit of support from AT&T (NYSE:T), which has added nearly one percent after offering additional concessions to regulators in order to get its $85-billion acquisition of BellSouth (BLS) approved. Investors have turned to equities looking for news in the absence of any economic news, so let's do the same.

Investors have taken heart in news at Apple Computer (NASDAQ:AAPL), which stated that Chief Executive Steve Jobs was aware of favorable stock-option grant dates, but did not personally benefit from them. The computer company announced that a special committee of its board found no evidence of misconduct by current management. AAPL has added more than five percent in today's trading thanks to the news.

Elsewhere, the online edition of The Wall Street Journal reported that Marsh & McLennan (MMC) agreed in principle to sell its Putnam Investments money-management unit to Power Corp. of Canada for $3.9 billion. According to the article, a deal could be announced early next year.