Tax credits fuel 6 pct rise in April
home sales WASHINGTON (AP) -- A rush of homebuyers
aiming to meet a deadline to qualify for a federal tax credit pushed the number
of signed sales contracts to the highest level since October. The National Association of Realtors
said Wednesday its seasonally adjusted index of sales agreements for previously
occupied homes rose 6 percent in April from a month earlier to a reading of
110.9. March's reading was revised upward to 104.6. The rise marked the third consecutive
month of increases, all of them aided by federal tax credits of up to $8,000. But the tax credits expired on April
30. Many analysts expect sales to drop in the coming months. Stocks jump after pending home sales
top forecasts NEW YORK (AP) -- The stock market
rebounded Wednesday following a stronger-than-expected increase in pending home
sales and a recovery in shares of energy companies. The Dow Jones industrial average rose
about 226 points to 10,249.54, its third biggest gain of 2010. Major indexes
recovered the losses they suffered Tuesday shortly before the close, when the
government announced criminal and civil investigations into the Gulf oil spill. Energy stocks led the advance after oil
prices rose. Schlumberger, which provides services to oil companies, rose more
than 8.8 percent, while Baker Hughes climbed about 10.5 percent. Buffett defends rating agencies for
missing crisis NEW YORK (AP) -- Billionaire investor
Warren Buffett on Wednesday defended credit rating agencies that gave overly
positive grades to mortgage-related investments before the housing bust. He
said the agencies were among many who missed warnings signs of the crisis. But he said he counted himself among
those who failed to foresee the collapse of the housing bubble. Buffett called
it the "greatest bubble" he had ever seen. Had he known how bad it
would get, Buffett said he would have sold his company's stake in rating agency
Moody's Corp. Consumers snap up cars in May, despite
fewer deals DETROIT (AP) -- Americans shrugged off
fewer discounts and a scary stock market plunge last month, snapping up new
automobiles and delivering another month of higher sales for carmakers. The industry's double-digit jump in
sales shows that consumers feel the economy is healthy enough for them to buy a
new car or truck. It's easier to get a car loan and gas prices are holding
steady. Those factors helped ease any jitters about the 8 percent drop in the
stock market last month. May marked the seventh straight month
of year-over-year sales increases for the auto industry. For new AT&T users, no more `all
you can eat' data NEW YORK (AP) -- Just in time for the
release of a new iPhone, AT&T will stop letting new customers sign up for
its unlimited Internet data plan for smart phones and iPads and charge more for
users who hog the most bandwidth. AT&T hopes to ease congestion on its
network, which has drawn complaints, particularly in big cities. But the
approach could confuse customers unfamiliar with how much data it takes to
watch a YouTube video or fire up a favorite app. Current subscribers will be able to
keep their $30-per-month unlimited plans, even if they renew their contracts.
But starting Monday, new customers will have to choose one of two new data
plans for all smart phones, including iPhones and BlackBerrys. Treasury sees options available for AIG
repayments WASHINGTON (AP) -- Treasury Secretary
Timothy Geithner on Wednesday looked past the collapse of an American
International Group deal to sell off a subsidiary, saying the insurance giant
has other options for paying back its $182 billion government bailout. Geithner addressed the issue after
Prudential PLC, a British company, said it was backing out of a deal to buy
American International Assurance. The deal faltered after Prudential
shareholders balked at the $35.5 billion price. AIG refused to accept less
money. Hovnanian trims loss in Q2 LOS ANGELES (AP) -- Hovnanian
Enterprises Inc. says it trimmed its loss in the fiscal second quarter, as the
homebuilder saw write-downs on land and other assets decline sharply versus a
year ago. The company said Wednesday it lost
$28.6 million, or 36 cents a share, in the three months ended in April. That
compares with a loss of $118.6 million, or $1.50 a share, in the prior-year
period. Revenue dropped to $318.6 million from
$398 million the year before. Analysts surveyed by Thomson Reuters
were expecting a loss of 64 cents a share on revenue of about $352 million. Mercury falling: Ford eliminates
mid-range brand DEARBORN, Mich. (AP) -- Ford Motor Co.
said Wednesday it will cease production of its 72-year-old Mercury brand by the
end of 2010 after years of declining sales. Ford plans to expand its luxury Lincoln
lineup to make up for lost Mercury sales and support Lincoln-Mercury dealers
who will suddenly be without a brand. Derrick Kuzak, Ford's product
development chief, said Lincoln will have seven new or revamped vehicles in the
next four years, including the brand's first compact car. Ex-Vivendi execs face French trial over
finances PARIS (AP) -- The once-jetsetting
Jean-Marie Messier, who transformed a stodgy water company into media giant
Vivendi Universal, went on trial in Paris on Wednesday on charges he misled
investors about the company's health as it took on billions of dollars of debt
and neared bankruptcy. Messier is on trial with six others,
including American Edgar Bronfman Jr., a former top Vivendi executive and now
CEO of Warner Music Group. Messier could face up to five years in prison and
euro350,000 in fines if convicted. In the courtroom, Messier showed
contrition and admitted to mistakes -- but insisted that his strategic
decisions were made in the interest of the company. Apple's Jobs says iPad idea came before
iPhone RANCHO PALOS VERDES, Calif. (AP) --
Apple Inc. CEO Steve Jobs shared a secret with his audience at a technology
conference outside Los Angeles Tuesday: The idea for the iPad came before the
iPhone. The idea to ditch the keyboard for what
Jobs calls a multi-touch display came about in the early 2000s, although the
company was working on a telephone at the time, he said. That's when a
prototype was brought to him that used the device's now-famous scrolling
mechanism. But the tablet product was put on the
shelf, the iPhone went into development for several years before making its
debut in 2007 and Apple only started selling the iPad tablet computer in April. By The Associated Press The Dow rose 225.52, or 2.3 percent, to
10,249.54. The Standard & Poor's 500 index
rose 27.67, or 2.6 percent, to 1,098.38, while the Nasdaq composite index
climbed 58.74, or 2.6 percent, to 2,281.07. Benchmark crude for July delivery rose
28 cents to settle at $72.86 a barrel on the New York Mercantile Exchange. In other Nymex trading in July
contracts, heating oil rose 3.55 cents to settle at $2.0059 a gallon, and
gasoline added 4.36 cents to settle at $2.0261 a gallon. Natural gas was up
17.6 cents to settle at $4.424 per 1,000 cubic feet. In London, the Brent crude July contact
rose $1.04 to settle at $73.75 on the ICE futures exchange.