BOSTON (MarketWatch) -- Pfizer Inc. announced early Tuesday that its board has approved a $5 billion stock buyback program on top of its existing $4 billion authorization, and that it intends to purchase around $5 billion shares in 2011 alone. As of the end of 2010, Pfizer had repurchased approximately 60 million shares. Pfizer also said it plans to raise its once-coveted dividend, which it cut to help fund its 2009 mega-merger with rival Wyeth. "While the dividend level remains a decision of the board and will continue to be evaluated in the context of future business performance, barring significant unforeseen events, we continue to target a dividend payout ratio comparable to the current industry average of approximately 40 percent in about three years," said Pfizer's new chief executive officer, Ian Read, in a statement.

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NEW YORK (MarketWatch) -- The Federal Reserve Bank of New York on Tuesday took another step towards preparing for the eventual tightening of monetary policy and shrinking of its balance sheet, reminding investors of tools the U.S. central bank can use in addition to directly raising its target interest rate. The Fed released eligibility criteria for companies interested in participating in reverse repurchase operations, in which the Fed loans some of the securities it holds to firms for a specific -- and usually short -- period, with the promise of taking them back at a certain time. Reverse repos, usually conducted just with the designated 18 primary government security dealers, are one tool for the Fed to unwind its massive liquidity operation when policy makers want to. In August, the Fed listed as new counterparties money funds managed by 18 firms including Bank of America , BlackRock Inc. [c blk], Charles Schwab Corp. , divisions of Deutsche Bank , Federated Investors Inc. , Goldman Sachs group Inc. , J.P. Morgan Chase & Co. and Wells Fargo & Co. , as well as Legg Mason Inc. and others.

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SAN FRANCISCO (MarketWatch) -- Gold futures turned lower and crude oil cemented a recent turn lower after a gauge of manufacturing activity came in better than expected on Tuesday. Gold for April delivery , which was clinging to small gains, reversed lower and most recently was trading $2 off at $1,331.70 an ounce on the Comex division of the New York Mercantile Exchange. Oil for March delivery retreated 19 cents, or 0.2%, to $92 a barrel on the NYMEX. It traded at $92.20 a barrel moments before the announcement. The Institute of Supply Management reported its index above expectations and the highest since May 2004.

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WASHINGTON (MarketWatch) - Conditions for the nation's manufacturers improved for the 18th straight month, the Institute for Supply Management reported Tuesday. The ISM index rose to 60.8% in January from 58.5% in December. This is the highest level of the factory index since May 2004. The report was much stronger than expected. The consensus forecast of estimates collected by MarketWatch was for the index to remain steady at 58.5%. Readings above 50 indicate expansion. Below the headline, the report was also strong. The key employment index improved to 61.7% in January from 58.9% in December. New orders jumped to 67.8% in January from 62% in the prior month. Input prices soared in January. The price index jumped to 81.5 from 72.5 in the prior month.

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