Existing-home sales rose 6.5 percent in December to an annual rate of 4.74 million units, as the median home sales price plunged 15.3 percent to $175,400 from $207,000 a year ago. The decline is the largest year-over-year drop in records going back to 1968.

Separately, the New York- based Conference Board's monthly forecast of economic activity increased 0.3 percent in December.

Economists surveyed by Thomson Reuters had expected a 0.3 percent decline.

The group's index of leading economic indicators fell 0.4 percent in November and a revised 1.0 percent in October.

If the jump in the money supply had been excluded, the index would have dropped a hefty 0.6 percent in December, said Ian Shepherdson, chief U.S. economist at High Frequency Economics in Valhalla, N.Y.

The index is designed to forecast economic activity in the next three to six months.

* It's shaping up to be another lousy year for workers, with more companies expecting to cut payrolls.

That's part of the latest outlook from forecasters in a survey released Monday by the National Association for Business Economics that depicts the worst business conditions in the U.S. since the report's inception in 1982.

Thirty-nine percent predicted job reductions through attrition or "significant" layoffs over the next six months, up from 32 percent in the previous survey in October. Around 45 percent in the current survey anticipated no change in hiring plans, while roughly 17 percent thought hiring would increase.

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Facing heavy debt, Smurfit-Stone files for Chapter 11

Smurfit-Stone Container Corp., the largest producer of cardboard box materials in North America, on Monday filed for Chapter 11 bankruptcy protection as it seeks to restructure its heavy debt amid a global credit freeze.

The Chicago-based company employs nearly 22,000 people working at about 150 facilities across North America and in Asia.

NEW WALGREEN CEO Drugstore operator Walgreen Co. opted for continuity over change in picking its new chief executive, promoting company veteran Gregory Wasson to the post.

Wasson, who has been with Walgreen for 29 years, has been chief operating officer since 2007 and before that led the Walgreen Health Services unit for five years.

Wasson replaces Jeffrey Rein, who led the company for two years before resigning in October. Rein's departure followed Walgreen's unsuccessful attempt to buy California-based Longs Drugs Stores. Longs sold to CVS.

SHELF-FRIENDLY CEREAL BOX Kellogg Co.