On Tuesday March 8, 2011, 6:07 pm EST
Underwater mortgages rise
as home prices fall
WASHINGTON (AP) -- The
number of Americans who owe more on their mortgages than their homes are worth
rose at the end of last year, preventing many people from selling their homes
in an already weak housing market.
About 11.1 million
households, or 23.1 percent of all mortgaged homes, were underwater in the
October-December quarter, according to report released Tuesday by housing data
firm CoreLogic. That's up from 22.5 percent, or 10.8 million households, in the
July-September quarter.
The number of underwater
mortgages had fallen in the previous three quarters. But that was mostly
because more homes had fallen into foreclosure.
Underwater mortgages
typically rise when home prices fall. Home prices in December hit their lowest
point since the housing bust in 11 of 20 major U.S. metro areas. In a healthy
housing market, about 5 percent of homeowners are underwater.
Roughly two-thirds of
homeowners in Nevada with a mortgage had negative home equity, the worst in the
country. Arizona, Florida, Michigan and California were next, with up to 50
percent of homeowners with mortgages in those states underwater.
Oklahoma had the smallest
percentage of underwater homeowners in the October-December quarter, at 5.8
percent. Only nine states recorded percentages less than 10 percent.
European growth helps
McDonald's February results
OAK BROOK, Ill. (AP) --
McDonald's says higher global demand, especially in Europe, boosted sales in
February.
Revenue at company-owned
and franchised restaurants open at least 13 months grew 3.9 percent, more
slowly than January's 5.3 percent. McDonald's Corp.'s stock fell 88 cents in
midday trading to $75.41.
The monthly sales figure is
a snapshot of the dollar value of food sales at all McDonald's restaurants.
McDonald's corporate revenue, reported quarterly, includes only revenue at
company-owned stores plus fees and rents paid by franchisees.
The sales metric is
considered a key indicator of a restaurant chain's performance because it
excludes the effects of locations that open or close during the year.
Icahn returns investors'
money. A 'sell' signal?
NEW YORK (AP) -- On the eve
of the bull market's second anniversary, billionaire investor Carl Icahn had an
unsettling message for his investors: Take your money back.
Icahn told investors in his
hedge funds that he didn't want to be responsible to them for "another
possible market crisis," especially given the rapid increases over the
past two years. Stocks have nearly doubled since hitting 12-year lows on March
9, 2009.
Icahn, who has built a
fortune from taking stakes in well-known companies and then pressing for
changes, also said he was concerned about the economic outlook and political
tensions in the Middle East. Icahn's targets over the years have included Yahoo
Inc., RJR Nabisco and Revlon.
Outside investors make up
just 25 percent, or $1.76 billion, of the $7 billion in assets Icahn oversees.
Despite losses in 2008, the funds have had returns of 106.9 percent since their
inception in 2004. In the first two months of the year the funds have returned
8.7 percent.
Not everyone believes Icahn
is returning his investors' money because he's bearish about the markets.
Jack Ablin, chief
investment officer at Harris Private Bank, said Icahn is likely trying to avoid
regulatory scrutiny. Under new laws, hedge funds have to register with the
Securities and Exchange Commission and allow the agency to inspect them.
Warner Bros. to offer movie
rentals on Facebook
NEW YORK (AP) -- Movie
rentals are coming to Facebook. Warner Bros. says it is testing a service that
will offer select movies for purchase or rental through the public pages of
these movies on the world's largest online social network.
Starting Tuesday, Facebook
users who visit the official page of "Batman: The Dark Night" will be
able to click a "watch" icon and pay 30 Facebook credits, or $3, to
watch the movie. The movie is streamed through a Facebook application.
Renters will have access to
a movie for 48 hours and can replay it as many times as they like. Warner Bros.
said it will add other movies in coming months but did not say what those would
be.
Energy Dept. boosts outlook
for oil and gas prices
NEW YORK (AP) -- Pump
prices will average $3.70 per gallon this spring and summer with a barrel of
oil averaging $102 this year, the U.S. Department of Energy said Tuesday.
Conflict in the Middle East
and fighting in Libya prompted government analysts to raise expectations for
gasoline prices by 50 cents a gallon for the peak driving season in the Energy
Information Administration's monthly Short-Term Energy Outlook. The EIA boosted
its per-barrel oil estimate by $9 for the year.
EIA sees pump prices
peaking at $3.75 a gallon in June. But its report says there is
"significant uncertainty surrounding the forecast" and pump prices
could spike above $4 this summer, which would threaten the all-time high of
$4.11 a gallon reached in July 2008.
On Tuesday the national
average for a gallon of regular hit $3.52, according to AAA, Oil Price
Information Service and Wright Express. That's 40 cents higher than a month ago
and 76 cents above a year ago.
Greece raises $2.3 billion
after rating cut
ATHENS, Greece (AP) --
Greece raised 1.625 billion euros ($2.28 billion) in an auction of treasury
bills Tuesday, though the higher interest rate it has to pay showed investor
unease a day after the country's credit rating was downgraded sharply.
In return for selling the
26-week bills, Greece had to pay an interest rate of 4.75 percent, the Public
Debt Management Agency said. The rate was up from the 4.64 percent it had to
pay in a similar auction last month, but lower than the 4.90 percent demanded
in January.
Though investors wanted a
higher rate in return for their cash, the Greek government still managed to
raise more than the original offer of 1.25 billion euros. Demand was relatively
healthy, with the auction 3.59 times oversubscribed.
Tuesday's sale came after
Moody's slashed the debt-ridden country's junk rating by three notches to B1,
prompting a furious riposte from the Greek government.
Greece began short-dated
treasury bill sales last September to maintain a presence in the market after
its debt crisis sent interest rates for longer-term money soaring, effectively
blocking the country from the bond market.
Ford CEO Mulally gets
$56.5M in stock award
DEARBORN, Mich. (AP) --
Ford Motor Co.'s top two executives received nearly $100 million worth of stock
for their performance during 2009 and 2010, years in which the company's
profits and stock price surged.
The awards, disclosed in
regulatory filings late Monday, are considered excessive by some Ford assembly
line workers. But Wall Street may not see it that way. Ford's stock price rose
3 percent on Tuesday.
CEO Alan Mulally, credited
with propelling the company from staggering losses a few years ago to profits
of $2.7 billion in 2009 and $6.6 billion last year, received stock valued at
$56.5 million before taxes.
The man who hired Mulally,
Executive Chairman Bill Ford Jr., got stock worth $42.4 million, according to
paperwork filed with the U.S. Securities and Exchange Commission.
Salaries and other
compensation were not listed and will be revealed later this year.
The Dearborn, Michigan,
company was in financial peril late in 2006 when Bill Ford removed himself as
CEO and hired Mulally away from Boeing Co. Ford Motor Co. lost $12.6 billion
that year.
Under Mulally, the company
mortgaged assets including its blue oval logo to borrow more than $23 billion,
allowing it to weather the recession. It avoided filing for bankruptcy or
following General Motors Co. and Chrysler Group LLC in taking government aid.
Tropicana raising prices on
orange juice
Tropicana says it will
increase the price of some of its juices by 4 to 8 percent to cope with higher
costs tied to the impact of cold weather on citrus crops in Florida.
The juice maker, which is
owned by PepsiCo Inc., is the largest purchaser of Florida fruit and juice.
The company said Tuesday
that it is coping with two extreme freezes, the coldest December on record and
a smaller-than-expected crop for second year in a row.
A report released this week
by the U.S. Department of Agriculture this week shows that orange production is
down in Florida but the full impact of the recent cold weather won't be known
until June.
Starbucks' new logo debuts
on cups, cafes
SEATTLE (AP) -- Starbucks
customers saw something new Tuesday when they sipped their coffee.
The Seattle-based company
rolled out its new words-free logo Tuesday on all its cups. Signs also changed
at a handful of stores, and the new logo will show up on more storefronts in
the future.
The Associated Press first
reported in January that Starbucks was updating its logo and would introduce it
this month in conjunction with its 40-year anniversary.
Starbucks on Tuesday also
introduced a number of new coffee flavors and baked goods as part of the
anniversary celebration. In addition, Starbucks said Tuesday it plans to roll
out its Via instant coffee in China starting in April, according to a report in
the Wall Street Journal.
P&G's air freshener
Febreze hits $1B in revenue
CINCINNATI (AP) -- The
Procter & Gamble Co. says Febreze air fresheners have joined its
billion-dollar brand club.
Spokesman Lee Bansil said
Tuesday that Febreze revenue over the past 12 months hit $1 billion.
That gives P&G 24
brands that bring in revenue of $1 billion or more. The company has sold off
two others -- Folgers coffee and Actonel osteoporosis treatment -- in the past
three years.
Febreze officials have said
sales held up during the recession as people spent more time at home, giving
them more reason to care about how their homes smelled.
By The Associated Press
The Dow Jones industrial
average gained 124.35 points, or 1 percent, to 12,214.38. The S&P 500 rose
11.69, or 0.9 percent, to 1,321.82.
Energy companies were the
only group in the S&P index to fall, losing 0.6 percent.
The Nasdaq composite rose
20.14, or 0.7 percent, to 2,765.77.
The benchmark in the U.S.,
West Texas Intermediate crude for April delivery, fell 42 cents to settle at
$105.02 per barrel. Brent crude dropped $1.98 to settle at $113.06 per barrel
on the ICE Futures exchange in London.
In other Nymex trading for
April contracts, heating oil lost 5.5 cents to settle at $3.011 per gallon and
gasoline futures gave up 5.7 cents to settle at $2.947 per gallon. Natural gas
lost 6.3 cents to settle at $3.864 per 1,000 cubic feet.