On Thursday March 3, 2011, 7:14 pm EST
Shoppers show strength in
February; gas hikes loom
NEW YORK (AP) -- Strong
February sales at stores up and down the price spectrum, from J.C. Penney to
Saks, show that a broad range of shoppers are feeling more comfortable about
the economy.
The question is whether
rising gas, food and clothing prices will reverse the trend this spring.
Retailers on Thursday
reported surprisingly strong revenue gains for February. The International
Council of Shopping Centers' index of 28 retailers rose 4.2 percent compared
with the same month last year. That was well above the trade group's
projections for a 2.5 percent to 3 percent increase.
The gain follows a 4.7
percent increase in January and the best holiday season since 2006. The figures
are based on revenue at stores open at least a year, a key indicator of a
retailer's health because it excludes the effects of stores that open or close
during the year.
February started slowly for
merchants because snowstorms kept some shoppers home. As the month went on,
weather improved, perking up sales of spring clothing.
UN: World food prices
highest in at least 20 years
ST. LOUIS (AP) -- Prices
for major crops climbed Thursday as a U.N. agency said food costs are now at
their highest point since the agency began tracking them 20 years ago.
Global prices have surged
2.2 percent just in the past month, according to the U.N.'s Food and
Agriculture Organization in Rome. The FAO's index, which measures the price of
staple food items and big commercial crops like corn and soybeans, reached its
highest level since 1990.
The price increases have
been driven by cereals, meat and dairy products. After rising for eight months,
global prices of corn, wheat and soybeans are near record levels set in 2008,
when riots erupted in countries like Haiti and U.S. food prices jumped.
U.S. consumers are
relatively shielded from the higher grain costs. Average incomes are higher in
the United States than in most of the world. And the cost of grain represents
only a small portion of the prices U.S. consumers pay for food products. Still,
U.S. prices are expected to creep up later this year for items ranging from
poultry to soda to wheat bread.
In the developing world,
the effects have been dire. Higher food prices have pushed an estimated 44
million people into extreme poverty. Economists think the problem could worsen
as governments curtail grain exports to increase their own stockpiles.
Drop in jobless claims raises
hopes for hiring
WASHINGTON (AP) -- The
number of people filing for unemployment benefits sank last week to its lowest
point in nearly three years, and retailers and other service companies posted
strong results Thursday for last month.
On the eve of the
government's February jobs report, the news suggests the economy may be about
to take off despite growing concerns about inflation.
The stock market had its
best day in three months. The Dow Jones industrial average rose more than 190
points, or 1.6 percent, erasing most of its losses since the unrest in Libya
began.
And some analysts raised
their forecasts for how many jobs the economy created last month. The consensus
is 175,000, but many economists are now estimating 200,000 or more, and they
expect the pace to hold for the rest of the year.
That would almost certainly
bring the unemployment rate, now 9 percent, down steadily.
ECB shocks markets with
April rate hike hint
LONDON (AP) -- The European
Central Bank's chief shocked markets Thursday by saying interest rates could be
raised as soon as the next policy meeting in April -- far earlier than expected
-- to fight inflation across the 17-nation eurozone.
Speaking after the bank
left its main interest rate unchanged at the record low of 1 percent, President
Jean-Claude Trichet said "strong vigilance" was warranted and that an
interest rate increase next month was "possible" though "not
certain."
Grocer Kroger cautiously
upbeat, says 4Q profit up
CINCINNATI (AP) -- The
nation's largest traditional grocery chain says more households are buying most
of their groceries at its stores while stretching out their spending over more
trips as they face higher food and gas prices.
Kroger Co. on Thursday
reported that its fourth-quarter profits and sales jumped, as the company saw
increased customer loyalty and gained on the competition in most of its
markets.
The grocer said shoppers
are paying more at checkout as its food and dairy prices rise, and they made
more trips to the store in the fourth quarter, though each transaction was
worth less than a year earlier.
Average rate on 30-year
mortgage falls to 4.87 pct
NEW YORK (AP) -- The
average rate on the 30-year fixed mortgage dropped this week, following lower
yields on Treasury bonds.
Freddie Mac said Thursday
the average rate on the 30-year loan slipped to 4.87 percent from 4.95 percent.
It hit a 40-year low of 4.17 percent in November.
The average rate on the
15-year fixed home loan fell to 4.15 percent from 4.22 percent. It reached 3.57
percent in November, the lowest level on records dating back to 1991.
Mortgage rates tend to
track the yield on the 10-year Treasury note. Investors are putting more money
into Treasurys, concerned that Libya's uprising will keep oil prices above $100
a barrel and hurt consumer spending. That has lowered those yields.
Low mortgage rates haven't
been enough to boost housing. Fewer homebuyers signed contracts to purchase
homes in January, the second straight month of waning demand, the National
Association of Realtors said Monday.
Wendy's/Arby's Group 4Q
loss narrows
NEW YORK (AP) --
Wendy's/Arby's Group Inc. trimmed expenses in the fourth quarter, helping to
narrow its loss as it looks to sell its struggling Arby's business.
The fast-food chain, which
is looking at raising prices to deal with rising beef costs, is ramping up
efforts to increase sales at Wendy's. This includes the national launch of a
new cheeseburger line named for founder Dave Thomas and the expansion of its
breakfast menu in more markets.
Wendy's/Arby's, based in
Atlanta, is hoping the burgers and other new products, combined with restaurant
modernization and expansion plans, will be enough to draw in customers.
Wal-Mart raises dividend 21
percent, to $1.46
BENTONVILLE, Ark. (AP) --
Wal-Mart Stores Inc. said Thursday that it is increasing its annual dividend 21
percent, to $1.46 from $1.21.
The world's largest
retailer said it will pay quarterly dividends of 36.5 cents in April, June,
September and January in fiscal 2012, which ends Jan. 31. The next dividend
will be paid on April 4 to shareholders of record on March 11.
President and CEO Mike Duke
said the company was able to boost its dividend because of its earnings
performance in fiscal 2011 and its strong financial position.
BP withholds majority of
2010 bonus payments
LONDON (AP) -- BP is
blocking bonuses to executives who were responsible for operations in the Gulf
of Mexico during last year's disastrous well blowout, including former CEO Tony
Hayward and the former head of exploration and production, Andy Inglis.
The British oil company's
annual report also revealed Thursday that new CEO Bob Dudley decided to forgo
his 2010 bonus but two other directors will receive payouts linked to their
performance in separate divisions.
BP PLC said the board's
remuneration decisions for 2010 were dominated by the scale and impact of the
Gulf spill, which began with the April 20 explosion on the Deepwater Horizon
rig that killed 11 workers and led to the worst oil spill in U.S. history.
Research firm says tablet
growth hurts PC demand
STAMFORD, Conn. (AP) --
Market research firm Gartner Inc. has reduced its PC shipment forecast for this
year and next, predicting the growing popularity of tablet computers such as
Apple Inc.'s iPad will cut into the demand for consumer laptops.
Gartner said Thursday that
it expects global PC shipments of 387.8 million in 2011, up 10.5 percent from
2010. Previously, Gartner predicted 15.9 percent growth.
In 2012, Gartner now thinks
440.6 million PCs will be shipped, up 13.6 percent from 2011. Its earlier
estimate called for 14.8 percent growth.
Gartner said that while
consumer laptop shipments have climbed an average of 40 percent annually in the
past five years, the availability of Internet access on various mobile devices
means that consumers are not as tied to laptops for getting on the Web.
By The Associated Press
The Dow Jones industrial
average gained 191.40 points, or 1.6 percent, to 12,258.20. The Dow is still
below where it was trading on Feb. 18, before a three-day plunge caused by a
surge in oil prices as the unrest in Libya deepened.
The Standard & Poor's
500 index rose 22.53, or 1.7 percent, to 1,330.97.
Benchmark West Texas
Intermediate for April delivery fell 32 cents to settle at $101.91 per barrel
on the Nymex.
In other Nymex trading for
April contracts, heating oil fell less than a penny to settle at $3.049 per
gallon and gasoline futures lost less than a penny to settle at $3.026 per
gallon. Natural gas gave up 4 cents to settle at $3.778 per 1,000 cubic feet.
In London, Brent crude fell
$1.56 to settle at $114.79 per barrel.