Update:
I thought one can do this with CSS but this approach would not work in all browser, e.g. not in IE6. If this is important for you, than you have to stick with the JS approach.
I also updated the code because I think I know understood what you really want:
Here you go (you got the syntax wrong):
$(".new-dev").hover(function(){
$(this).css('cursor','pointer');
$(this).find('a').css('color','#696969');
},function(){
$(this).find('a').css('color','#000');
});
This applies the color changing to every a inside elements with class new-dev. But as you change the cursor style only once, a better solution might be:
$(".new-dev").css('cursor','pointer').hover(function(){
$(this).find('a').css('color','#696969');
},function(){
$(this).find('a').css('color','#000');
});
This applies the cursor style to all elements with class new_dev first and then applies the hover functions. There is no need to set the cursor style inside the hover function over and over again.
Read about selectors and traversing in the documentation.
Note: color changes the color of the font, if you want to change the background color, use background-color.