On Wednesday March 2, 2011, 6:09 pm EST
Fed survey: Economy expands
throughout US
WASHINGTON (AP) -- The U.S.
economy expanded in January and early February in all parts of the country, but
businesses reported they are under pressure to raise their prices.
A Federal Reserve survey
released Wednesday showed that all 12 of the Fed's regions reported growth and
it pointed to a pickup in job creation in each.
Retail sales picked up in
10 of the 12 regions, while falling in the Richmond and Atlanta areas. Factory
activity rose in all districts except St. Louis.
The survey hinted at some
inflationary concerns. Costs are rising for manufacturers and retailers in most
areas. Manufacturers in many districts said they are increasingly able to pass
on those costs to customers. Retailers in some districts said they have or soon
will raise prices.
Federal Reserve Chairman
Ben Bernanke endured tough questioning from members of Congress on Tuesday and
Wednesday about the threat of rising inflation. Lawmakers raised concerns that
the Fed's $600 billion bond-purchase program is laying the groundwork for
higher prices.
Those concerns have been
heightened by recent run-ups in the price of oil, corn, wheat and other
commodities.
Jobs breaks from medical
leave to unveil iPad 2
SAN FRANCISCO (AP) -- Apple
CEO Steve Jobs briefly emerged from his medical leave and walked on stage to a
standing ovation Wednesday to unveil the second generation of the popular iPad.
It comes with two cameras and will go on sale March 11 in the U.S.
Jobs looked frail as he
appeared in his signature black mock turtleneck, blue jeans and wire-rimmed
glasses.
The next-generation tablet
computer is faster than the original iPad's. As expected, it comes with two
cameras for taking photos and video chatting. The battery life will be the same
as the original -- about 10 hours of usage or a month on standby.
The iPad 2 is also thinner
-- 8.8 millimeters, or about a third of an inch, instead of the current 13.4
millimeters.
The original iPad, which
went on sale last April, was more popular than analysts anticipated. Apple sold
15 million in nine months.
The rush for iPads sparked
dozens of copycat touch-screen devices, but so far, none has broken into the
mainstream consciousness the way the iPad has. In February, Motorola Mobility
Inc.'s Xoom, the most promising challenger so far, went on sale. It runs a new
version of Google Inc.'s Android software that was designed for tablets, not
smart phones.
The new iPad will make it
even harder for rivals to compete.
Costco 2Q earnings rise on
overseas growth
Costco Wholesale Corp.'s
fiscal second-quarter net income rose 16 percent as the wholesale club operator
benefited from stronger business overseas and growing membership.
It extends Costco's run as
one of the stronger retailers in the slow economy. Shoppers have flocked to its
stores for deals on basics and more recently for housewares and other
discretionary purchases.
Costco, based in Issaquah,
Wash., on Wednesday reported net income of $348 million, or 79 cents per share,
for the period ended Feb. 13. That's up from $299 million, or 67 cents per
share, a year ago. The results met the expectations of analysts polled by
FactSet.
Revenue climbed 11 percent
to $20.88 billion, topping estimates of $20.4 billion.
Costco, which is the
nation's largest wholesale club operator, said that sales at its stores open at
least a year increased 7 percent. The figure rose 12 percent internationally
and 5 percent in the U.S.
BJ's Wholesale Club 4Q
earnings fall on expense
BJ's Wholesale Club Inc.'s
fiscal fourth quarter was dragged down by expenses but its adjusted results
beat expectations, sending its shares higher Wednesday.
The wholesale club operator
said it saw more shoppers as its membership grew and it took business from
other retailers. The company also forecast first-quarter results above
expectations.
The company, based in
Westborough, Mass., reported net income of $10.2 million, or 19 cents per
share, for the quarter. That's down 81 percent from $54.5 million, or $1 per
share, in the same period last year.
After taking out a $41.1
million expense related to the closing some stores, restructuring and asset
impairment charges, earnings rose to 95 cents per share from 94 cents per
share. That beat the 92 cents per share analysts surveyed by FactSet forecast.
BJ's said sales at clubs
open at least a year rose 3.8 percent in the quarter. Excluding gasoline,
merchandise sales at clubs open at least a year climbed 1.7 percent. This is
considered a key measure of financial performance as it strips out the impact
of recently opened or closed stores.
S&P warns of downgrades
on Portugal and Greece
LONDON (AP) -- Both
Portugal and Greece could see their debts further downgraded in the next two
months, ratings agency Standard & Poor's warned Wednesday, depending on
what happens at a crucial European leaders' summit later this month.
The agency said in a report
it is maintaining its A- rating on Portugal and its BB+ rating on Greece but
has kept both countries on so-called "CreditWatch with negative
implications."
Heavily indebted Greece
accepted an EU-IMF bailout last year, as did Ireland, and ailing Portugal is
widely expected to follow suit even though it managed to raise another euro1
billion ($1.38 billion) at a bond sale Wednesday.
S&P said it could lower
the ratings on both Portugal and Greece within the next two months after
analyzing an expected new European bailout mechanism. EU policymakers are to
decide later this month on the key features of the European Stability
Mechanism, which will replace the current European Financial Stability Facility
from 2013 on.
The agency said it was
unlikely that either rating would be cut by more than two notches. Even if
Portugal was downgraded two notches it would still be investment grade, while
Greece's debt is junk status already.
Warren Buffett says economy
keeps improving slowly
OMAHA, Neb. (AP) --
Billionaire Warren Buffett said Wednesday the U.S. economy continues to improve
and doesn't need as much government help as it is currently getting.
Buffett appeared for three
hours Wednesday on CNBC four days after releasing his annual letter to
Berkshire Hathaway Inc. shareholders and discussing his insatiable appetite for
big acquisitions like last year's purchase of the Burlington Northern Santa Fe
railroad.
Berkshire's chairman and
CEO said most of the businesses his company owns, except the ones that make
housing-related products, continue to improve despite the fluctuations in
public sentiment about the economy.
And he said he is
optimistic about the future because of the strength and resiliency of the U.S.
system.
He said he doesn't think
the U.S. economy needs as much monetary or fiscal stimulus as it is getting
from the Federal Reserve and government spending.
Buffett said all the
government's stimulus efforts were needed in 2008 and 2009 to keep the economy
moving, but he's seen no indication of the nation trying to break its addiction
to stimulus spending. He predicted the current deficit spending in the United
States is guaranteed to generate inflation.
Gadhafi, rebels differ on
state of Libya's oil
CAIRO (AP) -- Libya's
leader blamed rebel "gangs" Wednesday for scaring off international
oil firms and triggering a steep drop in crude output, but asserted all oil
facilities were firmly under government control.
Oil officials in the
rebel-held east, meanwhile, in an apparent attempt to reassure oil companies,
said there was no dip in exports from the region and that funds from oil sales
would continue to be deposited in Libya's accounts, even if the OPEC member
state comes under international sanction.
The dueling statements did
little to clarify the murky picture of how the OPEC member country's vital oil
sector was operating after two weeks of fighting. In a sign that neither side
was giving a full picture, government and rebel forces fought Wednesday for
control of an eastern oil installation at the Brega port in a battle that
included a government airstrike.
The list of unknowns in
Libya far eclipses the list of certainties.
There is some production,
but nowhere near the 1.6 million barrels per day the country normally produces.
The country's de facto oil minister, Shukri Ghanem, said several days ago that
production nationwide has declined by half.
Exports are continuing from
at least some eastern ports. But it was unclear if that oil was being siphoned
from existing stocks and how quickly workers would be able to top-up the
storage tanks if production from some fields has been halted. Other ports,
including the one at Brega, have seen pipeline output fall by as much as 80
percent.
Drops in Saudi Arabia fuel
Mideast markets slide
DUBAI, United Arab Emirates
(AP) -- Investors rattled by spreading Mideast unrest drove stocks across the
Arab world down sharply Wednesday, with regional heavyweight Saudi Arabia's
exchange suffering another day of steep declines.
The kingdom's benchmark
Saudi All Shares Index rebounded slightly from earlier losses to close 3.89
percent weaker, piling on to losses sustained in a 6.8 percent rout late in the
previous session after most other regional markets had closed.
The Saudi index has lost
about a fifth of its value since the start of the year even as oil prices --
the kingdom's main source of revenue -- are pushing back toward $100 a barrel
on the New York Mercantile Exchange.
Investors fear the
demonstrations that have shaken Bahrain and Oman could spread elsewhere in the
Gulf, including OPEC kingpin Saudi Arabia, the largest Arab economy.
Anti-government organizers are calling for rallies in Saudi Arabia on March 11,
though it remains unclear how much support opposition groups have.
The cost for insuring the
debt for several of the Gulf nations continued to climb on Wednesday.
The five-year credit
default swap for Saudi Arabia climbed 3.54 percent to 142.78 basis points,
according to financial data provider CMA. Meanwhile, Bahrain's CDS was up 4.84
percent to 306.31 basis points. Qatar and Abu Dhabi's five-year CDS were up
2.71 percent and 2.25 percent, respectively, to 118.38 and 118.01 basis points.
Increasing unrest in North
Africa, particularly Libya, a significant oil producer, is putting further
pressure on Mideast markets.
Obama to put government
property up for sale
WASHINGTON (AP) --
President Barack Obama is putting government property up for sale to help save
taxpayers billions of dollars.
An administration official
says Obama will propose the creation of an independent board of private and
public sector leaders Wednesday to review real estate owned by the federal
government that could be sold or consolidated.
The administration says at
least 14,000 structures are no longer needed and thousands more aren't fully
used. The official says the board would send its recommendations to Congress
for approval and could deliver $15 billion in savings within its first three
years in operation.
The official agreed to
speak before Obama's announcement only on condition of anonymity.
By The Associated Press
The Dow Jones industrial
average rose 8.78 points, or 0.1 percent, to close at 12,066.80.
The S&P 500 rose 2.11,
or 0.2 percent, to 1,308.44.
The Nasdaq composite gained
10.66 points, or 0.4 percent, to 2,748.07.
Benchmark West Texas
Intermediate for April delivery added $2.60, or 2.6 percent, to settle at
$102.23 per barrel, the highest settlement since Sept. 26, 2008.
In London, Brent crude
added 93 cents to settle at $116.35 per barrel on the ICE Futures Exchange.
In other Nymex trading,
natural gas for April delivery fell 5.5 cents to settle at $3.818 per 1,000
cubic feet.
Gasoline for April delivery
added 4.61 cents to settle at $3.0295 per gallon. Gasoline futures also have
been tugged higher by the unrest in the Middle East, rising 12 percent since
the beginning of February.
Heating oil for April
delivery added 3.42 cents to settle at $3.0577 per gallon.