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On Wednesday March 31, 2010, 5:59 pm EDT

Recharging debate, Obama expands offshore drilling

WASHINGTON (AP) -- Shaking up years of energy policy and his own environmental backers, President Barack Obama threw open a huge swath of East Coast waters and other protected areas in the Gulf of Mexico and Alaska to drilling, widening the politically explosive hunt for more homegrown oil and gas.

Obama's move allows drilling from Delaware to central Florida, plus the northern waters of Alaska, and exploration could begin 50 miles off the coast of Virginia by 2012. He also wants Congress to lift a drilling ban in the oil-rich eastern Gulf of Mexico, 125 miles from Florida beaches.

Tortoise rally: Stocks have slow but big 1Q gain

NEW YORK (AP) -- Stocks on Wednesday ended a first quarter that many investors and analysts would describe as healthy. The Standard & Poor's 500 index is up 4.9 percent by amassing a string of steady gains that were far from the supersized jumps seen in 2009. The Dow Jones industrials are up 4.1 percent, but with unremarkable gains of 50 points here and 15 there. They've had few of the triple-digit swings that used to be commonplace.

The market's relative tranquility has made many analysts upbeat about the chances that its gains will hold. The market has gotten used to the idea of a bumpy economic recovery, including the continuing struggles of the housing market. But analysts warn, for stocks to extend their January-March gains, investors will need to see employers hiring again.

Factory orders rise for 10th time in 11 months

WASHINGTON (AP) -- Factory orders rose in February, bolstered by strong demand for industrial machinery and commercial aircraft. It was the 10th increase in 11 months as manufacturing continues to provide crucial support for the nation's economic recovery.

Manufacturers, which were hit hard by the recession, are benefiting from overseas orders and increased business spending on capital equipment.

The Commerce Department said Wednesday that new orders rose 0.6 percent last month, just ahead of analysts' estimates for a 0.5 percent increase, according to Thomson Reuters. Still, that was the lowest uptick since August 2009.

UAW health trust gets $1.78B from warrant auction

DETROIT (AP) -- A union trust fund that pays the health care bills for retired Ford factory workers raised $1.78 billion by selling warrants to buy the automaker's stock.

The United Auto Workers trust auctioned warrants to buy 362 million shares on Tuesday for $5 each. They can be exercised any time between now and the end of 2012.

More than 200,000 retirees and their spouses are covered by the trust, which started paying their health care costs in January after Ford began transferring to the fund cash and other assets, including the warrants, valued at $14.8 billion.

RIM: higher 4Q profit as subscriber base grows

TORONTO (AP) -- BlackBerry phone maker Research In Motion Ltd. reported sharply higher earnings for its fiscal fourth quarter, yet its stock dropped as results failed to meet Wall Street expectations.

For the three months that ended Feb. 27, RIM earned $710.1 million, or $1.27 per share. That was up 37 percent from a year earlier and was nearly in line with analysts' predictions of $1.28 per share.

Yet revenue of $4.08 billion, while rising 18 percent over the same period a year earlier, was short of the $4.31 billion expected by analysts surveyed by Thomson Reuters.

Soybean, corn prices tumble after crop report

NEW YORK (AP) -- Soybeans plunged Wednesday after the government reported that stockpiles of beans are larger than expected. Corn and wheat also fell sharply in response to the Agriculture Department report.

The department said 2010 looks to be another record year of soybean production. May soybeans fell 33 cents, or 3.4 percent, to settle at $9.41 a bushel. Wednesday's slide was similar to the drop in early January after a crop report showed bigger-than-expected soybean production.

The department also said farmers intend to plant 78.1 million acres of soybeans in 2010. That would be less than 1 percent more than last year, but still set a new record.

Oil rises near $84 with weak US dollar

Oil prices rose near $84 a barrel Wednesday as the dollar weakened and oil traders shrugged off weak job news and a bigger-than-expected build in crude inventories.

Benchmark crude for May delivery climbed by $1.39 to settle at $83.76 on the New York Mercantile Exchange.

Even a surprisingly poor jobs report didn't pull down oil prices. Payroll company ADP said employers slashed 23,000 private-sector jobs in March. Economists surveyed by Thomson Reuters forecast the report would show employers added 40,000 jobs during the month.

Boeing to take charge on health care reform

CHICAGO (AP) -- Boeing Co. will take a charge of $150 million due to the recent health care overhaul legislation, the aircraft maker said Wednesday.

The charge will hurt earnings by 20 cents per share in the first quarter of 2010.

In 2013 Boeing will no longer be able to claim an income tax deduction related to certain prescription drug benefits for retirees. Accounting rules require that the company take the charge during the period the legislation is enacted.

Several other companies have said they will take accounting charges due to the health care reform bill including AT&T, AK Steel Corp., Caterpillar Inc. and 3M Co.

Toyota sales rise 40 pct in March on incentives

NEW YORK (AP) -- Toyota's sales surged 40 percent in March, a top company executive said Wednesday, as the automaker offered its deepest discounts ever to cope with the fallout of millions of recalls which began last fall.

Toyota rolled out the aggressive incentives early in March, including 0-percent financing on recalled models, low-priced leasing and free maintenance. The incentives aimed to draw customers into showrooms even as Toyota grappled with the recall of more than 8 million cars and trucks around the world.

Automakers are scheduled to report March U.S. sales on Thursday. Toyota's sales fell 9 percent in February while the broader industry's climbed 13 percent.

American Airlines, JetBlue form partnership

NEW YORK (AP) -- American Airlines and JetBlue Airways said Wednesday that they have formed a partnership to offer passengers connections to flights in and out of New York and Boston.

JetBlue customers will be able to connect on flights to 12 of American's international destinations from JFK and Boston. American customers can book nonstop JetBlue flights from JFK and Boston to 18 domestic spots that American doesn't serve from those cities.

American, a unit of AMR Corp., also plans to add 23 more flights to and from seven new destinations out of New York's JFK and LaGuardia airports by the end of the year.

By The Associated Press

The Dow fell 51 points, or 0.5 percent, to 10,856.63.

The broader S&P 500 index fell 3.84, or 0.3 percent, to 1,169.43. The Nasdaq composite index fell 12.73, or 0.5 percent, to 2,397.96.

Benchmark crude for May delivery climbed by $1.39 to settle at $83.76 on the New York Mercantile Exchange.

In other Nymex trading in April contracts, heating oil rose 3.99 cents to settle at $2.1646 a gallon, and gasoline gained 3.53 cents to settle at $2.31 a gallon.

Wednesday is the last day for trading the April heating oil and gasoline contracts, and most traders have switched over to May contracts. May heating oil rose 4.74 cents to settle at $2.1790 a gallon, and May gasoline added 3.51 cents to settle at $2.3072 a gallon.

Natural gas for May delivery fell 10.4 cents to settle at $3.869 per 1,000 cubic feet.

In London, Brent crude rose $1.42 to settle at $82.70 on the ICE futures exchange.

 

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