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On Friday June 18, 2010, 5:24 pm

Unemployment falls in 37 states in May

WASHINGTON (AP) -- A majority of states saw their unemployment rates drop in May. But the widespread declines were mainly because people gave up looking for work and were no longer counted.

The unemployment rate fell in 37 states and the District of Columbia, the Labor Department said Friday. Six states had increases and seven experienced no change.

Forty-one states and the District of Columbia saw a net increase in jobs. But that reflected national data showing a huge gain because of government hiring of temporary census workers.

Stocks climb for 4th day; Dow closes up 16 points

NEW YORK (AP) -- Stocks rose for a fourth straight day Friday, led by shares of minerals companies after gold prices settled at another record high.

The Dow Jones industrial average rose 16 points and ended the week up 2.3 percent. Broader indexes also edged higher.

The Dow posted its second consecutive weekly gain. Before that, the Dow had been down for three weeks. Investors have been trying to determine whether the stock market's "correction" is over. A correction is generally considered a drop of 10-20 percent from a recent peak. The Dow has risen back 6.4 percent from its lowest close of the year on June 7, but it's still down 6.7 percent from the 2010 high it reached on April 26.

Obama tells G-20 nations to seal economic recovery

WASHINGTON (AP) -- President Barack Obama is appealing to the world's major economies not to waver in their efforts to support a sustained rebound from the near collapse of the global economic system in the fall of 2008.

Obama's appeal for unity in a letter to other leaders of the Group of 20 major industrial countries underscored a number of divisions that have developed between the major powers. Many European nations, rattled by the debt crisis that had engulfed Greece, have started to trim their own budget deficits while China has rejected calls by the United States to allow its currency to rise in value as a way to boost sales of American and other foreign products in China.

"Pink pill" to boost female libido eludes pharma

GAITHERSBURG, Md. (AP) -- A "pink pill" to boost women's sex drive remains elusive after a decade of searching by some of the world's biggest drugmakers.

A panel of health experts on Friday rejected the latest offering submitted for federal approval: an antidepressant drug that failed to increase sexual desire in two studies.

The Food and Drug Administration's panel of reproductive advisers voted unanimously that the benefits of the pill from Boehringer Ingelheim did not outweigh side effects, including fatigue, depression and fainting spells.

Senate fails to spare doctors from Medicare cuts

WASHINGTON (AP) -- After a week of partisan wrangling, the Senate on Friday passed legislation to spare doctors a 21 percent cut in Medicare payments looming for months. But the last-ditch effort came too late.

Moments after the Senate acted, Medicare announced it would begin processing claims it has already received for June at the lower rate. The reason: the House cannot act on the fix until next week.

That means doctors, nurse practitioners, physical therapists and other providers who bill under Medicare's physician fee schedule will have to resubmit their claims if they want to be made whole, with added paperwork costs both for the providers and for taxpayers.

Europe's market blues ease

PARIS (AP) -- The incipient panic about Europe's debt crisis seems to have subsided into mere pessimism this week, with the euro rebounding and investors encouraged by political leaders' new willingness to take quick action to calm market fears.

The big underlying issues haven't been erased: Spain is still dogged by speculation it may eventually need a rescue plan similar to the bailout already given to Greece. And many governments are cutting back on welfare programs and other spending to chip away at their heavy debt burdens -- and sometimes facing street protests as a result.

Yet positive news from trouble spots Spain and Greece, as well as EU leaders' united pledge for more banking transparency, helped buoy the euro.

Walgreen and CVS strike new deal, avoiding split

NEW YORK (AP) -- CVS Caremark Corp. and Walgreen Co. have settled a dispute that threatened to change where millions of Americans can fill prescriptions.

The companies, which said Friday they have agreed on a multiyear deal but did not disclose its terms, were battling over the amounts Caremark reimburses Walgreen for filling prescriptions for Caremark patients.

Walgreen and CVS do billions of dollars in business together each year, as Walgreen is the largest U.S. drugstore operator and CVS's Caremark is the third largest prescription benefits manager. It handled drug benefits for about 53 million people last year. At the same time, the CVS drug store chain is Walgreen's top competitor.

SpaghettiOs, frozen dinners pulled from shelves

WASHINGTON (AP) -- Two popular grocery items are being pulled off the shelves -- SpaghettiOs that weren't adequately heated during processing, and Marie Callender frozen dinners that pose a salmonella risk.

The Department of Agriculture announced both recalls late Thursday. ConAgra Foods is recalling all Marie Callender's brand cheesy chicken and rice frozen meals after they were possibly linked to a salmonella outbreak in 14 states.

And Campbell Soup Co. is recalling 15 million pounds of SpaghettiOs with meatballs after a cooker malfunctioned at one of the company's plants in Texas.

Moody's cuts BP ratings, again

NEW YORK (AP) -- Moody's Investors Service downgraded the senior unsecured ratings of BP PLC on Friday, the latest in a string of hits to the beleaguered oil company.

The downgrade comes three days after scientists gave a new estimate of 2.52 million gallons spilling daily into the Gulf of Mexico from a well that BP was drilling.

It cut all of BP's long-term debt securities by three notches to "A2" from "Aa2."

It is the second time this month that Moody's has downgraded the company and follows downgrades from other ratings agencies as well.

Caterpillar posts strong machine sales in May

NEW YORK (AP) -- Caterpillar Inc. said Friday its machine sales worldwide jumped 11 percent in May compared with a year ago as a rebound in North American and Asian business markets helped offset declines in European sales.

It was the first time since August 2006 the company has reported year-over-year growth in North America machine sales, said Jefferies & Co. analyst Stephen Volkmann.

Caterpillar is the world's largest maker of construction and mining equipment. Because its iconic yellow-and-black equipment is used in many different sectors all over the world, the company's sales are considered an indicator of global economic health.

By The Associated Press

The Dow rose 16.47, or 0.2 percent, to close at 10,450.64.

The broader Standard & Poor's 500 index rose 1.47, or 0.1 percent, to 1,117.51. The Nasdaq composite index edged up 2.64, or 0.1 percent, to 2,309.80.

Benchmark crude was up for the week, rising 39 cents to settle at $77.18 a barrel on the New York Mercantile Exchange. Oil settled Monday at $75.12 a barrel.

In other Nymex trading, heating oil fell 1.85 cents to settle at $2.1289 a gallon. Gasoline lost 1.64 cents to settle at $2.1476 a gallon, and natural gas dropped 16.5 cents to settle at $4.997 per 1,000 cubic feet.

Brent crude was down 46 cents to settle at $78.22 on the ICE futures exchange.

 

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