On Thursday June 17, 2010, 6:14 pm
New jobless claims up sharply as
layoffs persist
WASHINGTON (AP) -- The number of people
filing new claims for jobless benefits jumped last week after three straight
declines, another sign that the pace of layoffs has not slowed.
Initial claims for jobless benefits
rose by 12,000 to a seasonally adjusted 472,000, the Labor Department said
Thursday. It was the highest level in a month and overshadowed a report that
showed consumer prices remain essentially flat.
The rise in jobless claims highlighted
concerns about the economic rebound -- especially after a report earlier this
week said home construction plunged in May after government tax credits
expired.
Demand for imports helps widen trade
deficit
WASHINGTON (AP) -- Higher oil prices
and stronger demand for imported goods have widened the broadest measure of the
U.S trade deficit in the first three months of the year. The result is viewed
as a positive step for the recovery.
Even though America is sending more
money overseas than it is taking in, the stepped-up spending on foreign goods
and services was a sign of growing confidence among consumers.
But economists worry that the European
debt crisis could dampen demand for U.S. exports. And a stronger dollar would
make U.S. goods more expensive overseas.
Stocks eke out gain after downbeat
economic data
NEW YORK (AP) -- The stock market
managed a slender gain Thursday after traders shook off a pair of disappointing
economic reports.
Traders began buying late in the
session, although without the vehemence that has marked other final-hour moves
in recent weeks. The Dow Jones industrial average closed up about 24 points
after falling 90 early in the day, and scored its first three-day advance since
April. The Standard & Poor's 500 and Nasdaq composite indexes both rose a
little more than a point.
The late rebound following downbeat
employment and manufacturing news suggests that investors may be getting more
confident about the economic recovery, said Philip Orlando, the New York-based
chief equity market strategist at Federated Investors.
Demand for imports helps widen trade
deficit
WASHINGTON (AP) -- Higher oil prices
and stronger demand for imported goods have widened the broadest measure of the
U.S trade deficit in the first three months of the year. The result is viewed
as a positive step for the recovery.
Even though America is sending more
money overseas than it is taking in, the stepped-up spending on foreign goods
and services was a sign of growing confidence among consumers.
But economists worry that the European
debt crisis could dampen demand for U.S. exports. And a stronger dollar would
make U.S. goods more expensive overseas.
EU to publish potential bank losses
BRUSSELS (AP) -- European Union leaders
agreed Thursday to go public with the results of "stress tests"
checking the stability of the bloc's banks, an attempt to restore confidence to
markets spooked since Greece demanded a bailout to prevent an embarrassing
default.
Markets welcomed the news with the euro
climbing to about $1.24, its highest in about three weeks, and stock markets
rising.
Despite market fears that Spain may be
the next country to need a rescue plan, EU leaders meeting at a summit of the
27-nation bloc in Brussels insisted that they are not worried.
US cars top foreign brands on quality
survey
WASHINGTON (AP) -- U.S. automakers have
surpassed foreign brands for the first time in a survey that measures the
quality of new cars and trucks.
J.D. Power and Associates said Thursday
that owners of vehicles made by Detroit automakers reported fewer problems on
average during the first 90 days of ownership than those built by companies
based overseas.
It was the first time that has happened
in the 24 years the industry research group has conducted the annual quality
study that is a closely watched measure of the durability and reliability of
vehicles.
Toyota decides to restart Mississippi
auto plant
Toyota will resume construction of a
plant in Mississippi, hiring 2,000 workers with the goal of building compact
Corolla sedans by the fall of 2011, the Japanese automaker said Thursday.
The plant in Blue Springs, Miss., has
been on hold since late 2008, when Toyota suspended construction as the economy
fell apart and sales of new cars and trucks collapsed in the U.S.
The move signals that the automaker is
preparing for a sales rebound and looking to move past a recall crisis that
sullied its reputation for safety.
Grocer Kroger's 1st-qtr net income off
14 percent
PORTLAND, Ore. (AP) -- Supermarket
operator Kroger Co. proved that bigger isn't always better Thursday in
reporting that it gained shoppers and market share in the first quarter despite
aggressive competition from Wal-Mart Stores Inc.
Kroger, which is the nation's largest
traditional grocery store operator with chains as Ralphs, QFC and Dillons, said
its net income fell 14 percent for the quarter due to increased costs. But the
results beat expectations, the company affirmed its full-year guidance and its
shares rose sharply in trading.
The company said it earned $373.7
million, or 58 cents per share, for the quarter that ended May 22. That beat
the average forecast for earnings of 54 cents per share from analysts surveyed
by Thomson Reuters.
Freddie Mac: Mortgage rates up from
yearly low
NEW YORK (AP) -- Rates on 30-year fixed
mortgages backed off from yearly lows this week, but still remain historically
cheap.
Mortgage finance company Freddie Mac
says the average rate rose to 4.75 percent, up from 4.72 percent last week. The
rate hit 4.71 percent in December, the lowest since Freddie Mac began keeping
records in 1971.
A Federal Reserve program to reduce
borrowing costs for consumers pushed rates down to extraordinarily low levels
last year. Rates were expected to rise after the campaign ended this spring,
but have declined instead over the past two months as investors shifted money
into the safety of U.S. Treasury bonds.
FDA approves Sanofi-Aventis prostate
cancer drug
NEW YORK (AP) -- The Food and Drug
Administration on Thursday approved the first prostate cancer chemotherapy drug
found to extend the survival of men who are no longer being helped by other
treatments.
The drug is called Jevtana and it is
made by Sanofi-Aventis of France. The FDA approved Jevtana to treat prostate
cancer that does not respond to hormone-deprivation treatments or to docetaxel,
the cancer drug most commonly used to fight prostate tumors. Earlier this year,
a study showed Jevtana prolonged survival for those patients by 10 weeks.
Jevtana was approved for use in
combination with the steroid prednisone, which is often used in cancer
treatment.
By The Associated Press
The Dow rose 24.71, or 0.2 percent, to
10,434.17.
The S&P 500 index rose 1.43, or 0.1
percent, to 1,116.04, and the Nasdaq rose 1.23, or 0.05 percent, to 2,307.16.
Benchmark crude for July delivery
dropped 88 cents to settle at $76.79 a barrel on the New York Mercantile
Exchange.
Heating oil added 3.73 cents to settle
at $2.1474 a gallon, and gasoline gained 1.88 cents at $2.1640 a gallon.
Brent crude rose 54 cents to settle at
$78.68 a barrel on the ICE futures exchange.
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