[R]11:30AM New York – U.S. stocks declined after a weak read on the service sector in the economy.[/R]

Market averages came under heavy pressure in the morning trading after sharply lower read on the service sector in the economy. The non-manufacturing index dropped to 41.90 in January from 54.4 in December. The sharp reversal in the read unnerved the market.

Economists were looking for a read between 51 and 53 in index in January. Any reading on the index below 50 suggests that the sector is shrinking and above 50 suggests that the sector is growing.

The read, if accurate, indicates that U.S. economy is retreating, that too, sharply. However, the accuracy of the survey has been questioned by economists in the past. Its predictive power of the recessionary trend has been low and more data in the subsequent will clarify the picture.

Nervous investors sold stocks in the morning and the U.S. treasuries gained. S&P 500, Dow Jones declined 1.7%, and Nasdaq fell 1.5%.

Whirlpool (WHR: chart) jumped $7.60 or 9.3% to $89.15 after it reported better than expected fourth quarter earnings. Earnings in the quarter from continuing operations of $187 million increased 41% to a record $2.38 per diluted share compared to $133 million, or $1.67 per diluted share reported during the previous year's quarter. Revenue of $5.3 billion for the quarter increased 7% from the $5.0 billion in the previous year.

Full-year 2007 earnings from continuing operations were $8.10 per diluted share, up 28 percent from the $6.35 per diluted share reported in the same period last year. The company reported record annual net sales of $19.4 billion, an increase of 7% from the prior year.

International sales and cost savings from recently acquired Maytag lifted the earnings.

Operating profit increased 74 percent to $332 million and operating profit margins expanded 2.4 percent from the previous year. Fourth-quarter operating results benefited from cost- efficiency realization associated with the previous year's acquisition of Maytag, productivity improvements, improved product mix and a favorable net currency impact.

Church & Dwight rose 3.8% or $2.00 to $54.92 after reporting fourth quarter earnings.

Church & Dwight (CHD: chart) reported full-year 2007 sales increased 14% to $2.22 billion from $1.95 billion in 2006. Organic sales growth for 2007 was approximately 5%, adjusting for revenue related to acquisitions and foreign exchange.

Earnings per share were up 19% to $2.46 compared to $2.07 in the prior year. Cash flow from operations increased 34% to $249 million compared to $186 million in 2006, and free cash flow (cash from operations less capital expenditures) was up 44% to $200 million versus $139 million in the prior year.

Net income was $31.7 million in the fourth quarter or $0.46 per share, an increase of $0.10 per share from the prior period’s net income of $23.9 million or $0.36 per share.

This year’s fourth quarter results include a $3.5 million charge relating to the reorganization of the Company’s Canadian business and trademark impairment charges of $4.2 million related to certain international brands. Last year’s results included $12.9 million of charges related to trademark impairments and a loss on the sale of a small U.S. plant.

Net sales for the fourth quarter increased 10% to $579.7 million. Organic sales, which exclude the impact of foreign exchange, increased approximately 9% in the quarter.

The company forecasted 13% rise in earnings in the year 2008 to $2.77 per share despite rising commodities costs and slowing economy.

The company is planning to launch new versions of condoms named Thintensity and Magnum thin to complement its Trojan product line. In addition, in the first quarter of 2008, First Response is launching a digital pregnancy test kit and a daily ovulation test kit.

In oral and skin care, the Company will be expanding its Nair depilatory product line with Nair Shower Power, a convenient way to remove hair in the shower, and Nair Soothing Wax strips.

The Company will also be introducing three new SpinBrush products in the battery-powered toothbrush category, and launching two new oral care products under the Arm & Hammer name: Age Defying toothpaste, to protect and rebuild enamel; and Whitening Booster, an additive used with any toothpaste for convenient whitening.