STOCKS NEWS US-AIG may give up control of Asia unit: sources

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U.S. stock market report [.N] 1043 ET 23Feb2009-AIG may give up control of Asia unit: sources ------------------------------------------------------------------------------

American International Group (AIG.N) may be willing to give up control of its prized Asian division, said sources with direct knowledge of the matter on Tuesday. The unit is worth about $20 billion.

The move comes as the company faces massive losses and is seeking additional funds.

According to the sources, AIG may consider a bid for a majority stake in American International Assurance Company Ltd if buyers submit a compelling offer. Previously, the company had been determined to cap the stake sale at 49 percent. [ID:nLO307447]

Shares of AIG tumbled 25 percent to 40 cents on Tuesday.

Reuters Messaging: ryan.vlastelica.reuters.com@reuters.net 1038 ET 23Feb2009-Bernanke says strong action needed to end crisis ------------------------------------------------------------------------------

Ben Bernanke, the U.S. Federal Reserve chairman, on Tuesday said that strong action was needed to end the recession, and that unless government efforts succeed in restoring financial stability, the recession may not end in 2009.

"If actions taken by the administration, the Congress and the Federal Reserve are successful in restoring some measure of financial stability-- and only if that is the case, in my view-- there is a reasonable prospect that the current recession will end in 2009 and 2010 will be a year of recovery," Bernanke said in testimony prepared for delivery to the Senate Banking Committee. [ID:nN24402092]

Reuters Messaging: ryan.vlastelica.reuters.com@reuters.net 1028 ET 23Feb2009-Target falls after results, peers rise modestly ------------------------------------------------------------------------------

Shares of retailer Target Corp (TGT.N) fell on Tuesday after the company reported fourth-quarter earnings that missed expectations and were down 41 percent from the prior year as consumers pared spending on clothing and fell behind on payments for Target credit cards. [ID:nN23329024]

The stock fell 2.7 percent to $27.66. Among the company's peers, Dow component Wal-Mart Stores (WMT.N) rose 0.6 percent to $49.19, Dollar Tree (DLTR.O) added 1.2 percent to $35.22, BJ's Wholesale BJ.N was up 1.2 percent to $27.81 and Costco Wholesale (COST.O) gained 1.7 percent to $41.87.

Reuters Messaging: ryan.vlastelica.reuters.com@reuters.net 1018 ET 23Feb2009-Markets cut gains after data, Bernanke ------------------------------------------------------------------------------

Major U.S. indices cut their gains on Tuesday, with the Dow turning flat after data showed that consumer confidence fell to a record low in February. The markets were also pressured by Fed Chairman Ben Bernanke, who warned in testimony to a Senate committee that the recession, which began in 2007, may not end this year. [ID:nN24401864]

The Dow Jones industrial average .DJI was up 0.2 percent at 7,126.65 while the S&P 500 .SPX gained 0.4 percent to 746.26 and the Nasdaq .IXIC was up 0.7 percent to 1,397.66.

Reuters Messaging: ryan.vlastelica.reuters.com@reuters.net 1014 ET 23Feb2009-Consumer confidence hits new low in February ------------------------------------------------------------------------------

U.S. consumer confidence fell to another record low in February, as consumers believe that already dire economic conditions would continue to weaken, and that the jobs market would continue to deteriorate.

The Conference Board's sentiment index fell to 25 from 37.4 in January. Analysts were looking for a reading of 35.5. [ID:nN24401372]

Reuters Messaging: ryan.vlastelica.reuters.com@reuters.net