CF Industries scored a big victory this morning at Terra Industries’ annual meeting in New York, as shareholders overwhelmingly voted to replace three Terra directors with three CF-nominated candidates, “CF claims victory.”

The victory strengthens CF’s hand in its bid to takeover the Sioux City-based company. Terra, which has repeatedly rejected CF’s hostile bid as inadequate, took a more conciliatory approach in a statement issued after the vote.

“…Terra shareholders noted that current trends in the fertilizer market could provide potential consolidation opportunities for many market participants. Terra’s board, as always, will continue to maintain an open-minded approach to considering any bona fide opportunity to create meaningful value for Terra shareholders.”

What will Terra’s next move be? Stay tuned. What do you think about the outcome today? Let us know.

CF Industries, which launched a hostile bid for Terra Industries in January, keeps on upping the ante, hoping that the Sioux City-based company will finally bite. Late Sunday, CF slightly raised its offer, including cash for the first time as I reported this morning, “CF adds cash to hostile bid for Terra.”

Read the full terms of the revised offer in CF’s news release, click here.

For the first time in five days, Wall Street pulled back Monday, as the Dow Jones industrial average dipped below 8,000, ”Stocks fall after four-week rally.”

The other major indexes also dipped after stock analyst Michael Mayo issued “sell” ratings on several banks and said in his report that loan losses could exceed levels seen in the Great Depression, ”Mayo gives ‘underweight’ rating to banks, citing loan losses”

The 46-year-old Mayo gained recognition in 1999 at Credit Suisse AG for correctly taking a bearish stance on bank stocks when other analysts remained bullish.

Other Wall Street observers also are wondering whether the recent uptick in stock prices could very well be a mirage, “A bear’s market in bull’s clothing,”

Shares of all three fertilizer makers involved in a takeover triangle — Sioux City-based Terra Industries, CF Industries and Agrium Inc. — all tumbled Monday. That came after Canadian ag giant Agrium urged CF shareholders to withhold their proxy votes for three director seats at CF’s annual meeting later this month, Agrium urges shareholders to withhold votes

Advancing more than 200 points, Dow Jones industrials finished Thursday above the 8,000 level for the first time since Feb. 9, “Wall Street extends four-week rally.”

Fueling the rally was an accounting rule change that could strengthen banks and commitments. The Financial Accounting Standards Board on Thursday voted unanimously to approve a measure giving companies flexibility in valuing illiquid mortgage assets that may have long-term value and strong cash flow, Market to market rules approved

Mark to market may seem like a whole lot of inside baseball for most people, but I know from talking to local financial institutions, like Sioux City-based Vantus Bank, the regulation was rather cumbersome.

It required institutions to assign a value to an asset, such as mortgage securities, based on the current market price for the security. But some banks complained they couldn’t sell certain assets because of a lack of a market, but also believe the assets are not distressed.

Wall Street rallies as banks boost sentiment

After another dismal performance on Wall Street Monday, stocks rebounded today, “Dow ends up 380 points higher.”

Investors reacted to better-than-expected earnings from beleagured Citibank, and a key lawmaker’s prediction that a trading rule that slows the pace of short selling would be reinstated.

Most locally-based stocks traded higher today, including Terra Industries, whose shares rose 50 cents to close at $25.67. On Monday, rival fertilizer manufacturer CF Industries raised the stakes on its hostile takeover bid for Terra, saying it would sweeten its offer for the Sioux City-based company.

At the same time, CF shot down an unsolicted buyout by a third party, Canadian ag giant Agrium Inc. Agrium, which conditioned its offer on CF dropping its bid for Terra, accused CF of failing to look out for the best interest of its shareholders, “Agrium says target shirking investors.”

“Moody’s identifies firm at risk of default”

Moody’s today released published a new list, called the Bottom Rung, which details 283 companies the ratings agency says are most likely to default on their debts,

Moody’s estimates that about 45 percent of the companies on the list will default on debt over the next year. Some of the names on the list come as no surprise, such as troubled automakers General Motors, Ford and Chrysler. Others include Eastman Kodak and MGM Grand.

Some firms with a Siouxland presence also landed on the dubious list, including: Carmike, a theater chain with screens at Southern Hills Mall; Bon-Ton Stores, parent of the Younkers department store chain; and Sirius XM satellite radio, a major customer of the Stream outsourcing call center in Sergeant Bluff.

To view Moody’s entire “Bottom Rung” list, click here. (Registration is required)

Heading into the weekend, the economic news seems to be turning from bad to worse. If that’s even possible. Consider some of today’s top headlines.

Economy in ‘Free-Fall’: Unemployment Rate Surges to 8.1 percent

Another 651,000 U.S. jobs were lost in February, the Labor Department said today, bringing the total number of jobs lost since the recession began in December 2007 to 4.4 million.

The unemployment rate jumped to 8.1 percent, it’s the highest level in 25 years

Stocks look cheap, but they could get cheaper

“There’s no doubt that people can look at market valuations and determine that stocks are relatively inexpensive — but that doesn’t mean they’re going to quit going down,” said Michael Gibbs, director of equity strategy at Morgan Keegan & Co. in Memphis, Tenn.

The high jobless numbers for February pushed Dow Jones industrial average below 6,500 for the first time in nearly 12 years. But in late afternoon trading, the blue chips pushed into positive territory, as investors looked for bargains.

John Deere lays off more workers

Closer to home, tri-state manufacturers continue to shed jobs.

Farm equipment John Deere Co. today announced 325 employees will be placed on indefinite layoff at its Quad-Cities area later this month. It’s the second major layoff this year.

Verifications, which does employment screening for global and national companies, today said it has has laid off 27 people at its three South Dakota locations, in Aberdeen, Mitchell and Watertown.

As we reported yesterday, Terex Load King said it has suspended manufacturing at its Elk Point, S.D. trailer plant, idling about 80 workers.

Stocks move higher after five days of heavy selling

After the Dow Jones tumbled below 7,000 for the first time in a decade, the market rallied today on a of a possible Chinese economic stimulus package and a slightly better-than-expected report on the services sector.

Maybe Barback Obama was right — this is a good time to buy stocks. If I were you, I’d take a wait-and-see approach, rather than take the president’s financial advice.

Mortgage help, Do you qualify?

Also pushing up stocks was today’s rollout of details for the Obama administration’s $75 billion plan to help up to 9 million struggling homeowners.

As many as 5 million homeowners who are “under water” on their mortgages, meaning they owe more than the house is worth, could get government help to refinance into new low interest rates. Another 4 million homeowners could qualify for a second provision that gives lenders and servicers incentives to restructure your mortgage to more affordable levels.

Bill seeks crackdown on vehicle emissions

An Iowa legislator wants the Hawkeye state to adopt California-style emissions standards that are more stringent than federal law.

The proposed standards would be based on a law in California that requires tailpipe emissions of greenhouse gases from cars and light trucks to be cut 22 percent by 2012 and 30 percent by 2016.

Critics say the added regulations could raise the price of a passenger vehicle in Iowa by $3,000. In western Iowa, it also could drive more sales into neighboring Nebraska and South Dakota. Neither border state is contemplating adopting its own emissions regulations.

Here’s today’s belated briefing:

Wall Street tumbles anew as financials slide

The financial markets start off a new week on a down note, on nenewed fears about the economy and big banks. Worries pushed the Dow Jones below 7,000 Jones for the first time in nearly 12 years.

The credit crisis and recession have now slashed half the blue chip stock’s average value since it hit a record high over 14,000 in October 2007.

Survey: Outlook bleak for Plains, Midwest states
In his most recent survey of regional business leaders, Creighton University economics professor Ernie Goss reports companies producing durable goods continued to cut jobs in February and international sales remained weak.

In February, the overall index for the Mid-America Business Conditions survey increased slightly for the second straight month, to 34.6 from January’s 33.5. But the index remained below 50 in negative territory.

Uncertainty over new health safety net for jobless

The Associated Press reports that the Obama administration, in its rush to include a health care safety net for laid-off workers in the recently signed stimulus bill, has not told employers exactly how to make it work.

At issue is the program called COBRA, the acronym for the law that allows workers to keep their company’s health insurance plan for 18 months after they leave their job, if they pay the premiums.