Housing market struggles without
government aid
WASHINGTON (AP) -- Americans showed far
less appetite to buy new homes last month after the government stopped offering
a homebuyer tax credit. The news signaled a renewed housing slump that
threatens the broader economy.
Sales of new homes fell in May to their
lowest level on record, plunging 33 percent from the month before. The bleak
data followed a report earlier this week that sales of existing homes dipped,
too.
New-home sales for May came in at a
seasonally adjusted annual sales pace of 300,000, the Commerce Department said
Wednesday. That was the slowest in the 47 years records have been kept. And it
was the largest monthly drop on record.
Fed strikes more cautious tone on US
recovery
WASHINGTON (AP) -- The Federal Reserve
struck a more cautious tone about the strength of the U.S. economic recovery,
indicating Europe's debt crisis poses a risk to it.
Wrapping up a two-day meeting
Wednesday, the Fed in a 9-1 decision retained its pledge to hold rates at
record-low levels for an "extended period." Doing so is intended to
energize the rebound.
The Fed expressed confidence that the
recovery will stay intact despite threats from abroad and at home. But Chairman
Ben Bernanke and his colleagues offered a slightly more reserved outlook than
the last time they convened.
Stocks fall on home sales slump,
cautious Fed view
NEW YORK (AP) -- The stock market
closed with a slight loss Wednesday after sales of new homes hit a record low
and the Federal Reserve indicated that problems in Europe pose a threat to the
U.S. economy.
The Dow Jones industrial average rose
about 5 points to 10,298.44, but broader indexes fell and losing stocks
outnumbered advancers on the New York Stock Exchange. Treasury prices rose,
pushing down interest rates. The yield on the benchmark 10-year Treasury note
fell to its lowest level in more than a year.
Stocks fell early in the day after the
government said new home sales dropped. The Dow lost as much as 66 points after
the housing numbers came out.
More oil gushing into Gulf after
problem with cap
NEW ORLEANS (AP) -- Tens of thousands
of gallons more oil gushed into the Gulf of Mexico on Wednesday after an
undersea robot bumped into the cap that had been containing some of the crude,
forcing BP to remove it.
The setback, yet another in the
nine-week effort to stop the gusher, came as the Obama administration tried to
figure out how to resurrect a six-month moratorium on deepwater drilling and
thick pools of oil washed up on beaches in Florida.
Removing the containment cap meant
about 29,000 extra gallons of oil an hour were spewing, based on the record
amount that had been captured in the previous 24 hours. Under the current
worst-case scenario, as much as 104,000 gallons an hour -- 2.5 million gallons
a day -- is flowing when there are no devices stopping some of it.
Survey: Hiring plans of US CEOs at
3-year high
NEW YORK (AP) -- The number of CEOs planning
to ramp up hiring is at the highest level since mid-2007, according to a survey
that suggests big U.S. companies are growing more confident about the economic
recovery.
The Business Roundtable, an association
of CEOs of big U.S. companies, said Wednesday its survey shows 39 percent of
chief executives expect to boost their payrolls in the second half of 2010.
Only 17 percent say jobs will drop, while 43 percent expect no change in their
current work force.
The proportion of those planning to
hire is at the highest level since the second quarter of 2007, when it was at
42 percent.
CarMax 1st-quarter net income jumps
RICHMOND, Va. (AP) -- Used car
dealership chain CarMax Inc. said Wednesday its net income more than tripled in
the fiscal first quarter because it sold more vehicles as the industry slowly
recovers from the worst U.S. auto sales market in decades.
The results beat Wall Street
expectations, and its shares rose $1.74, or 8.7 percent, to $21.74 in morning
trading after climbing more than 10 percent earlier in the session.
The Richmond company, which will join
the Standard & Poor's 500 after the market closes Friday, said its net
income climbed to $101.1 million, or 44 cents per share, in the three months
ended May 31, up from $28.7 million, or 13 cents per share, a year ago.
Nike 4Q net income rises with higher
revenue
BEAVERTON, Ore. (AP) -- Higher sales
and better margins helped Nike Inc.'s fourth-quarter net income jump 53 percent
from a year earlier, when it recorded a major restructuring charge.
The world's largest athletic shoe and
clothing company on Wednesday reported net income of $522 million, or $1.06 per
share, for the quarter that ended May 31. That's up from $341.4 million, or 70
cents per share, a year earlier.
Excluding the restructuring charge from
last year's fourth quarter, Nike's net income grew 7 percent.
Judge sides with Google in $1B Viacom
lawsuit
SAN FRANCISCO (AP) -- A federal judge
sided with Google Inc. on Wednesday in a $1 billion copyright lawsuit filed by
media company Viacom Inc. over YouTube videos, saying the service promptly
removed illegal materials as required under federal law.
The ruling in the closely watched case
further affirmed the protections offered to online service providers under the
1998 Digital Millennium Copyright Act.
Viacom Inc. had alleged that YouTube
built itself into the world's largest video-sharing site by promoting the
unlicensed use of video taken from Viacom cable channels such as MTV, Comedy
Central and Nickelodeon.
Oil prices slide as stockpiles build
Oil prices dropped Wednesday after the
government reported that crude supplies unexpectedly grew last week and remain
well above typical levels.
Benchmark crude for August delivery
fell $1.50 to settle at $76.35 on the New York Mercantile Exchange.
Retail gasoline prices climbed as well,
rising 0.9 cent to a national average of $2.741 per gallon, according to AAA,
Wright Express and Oil Price Information Service. Prices have risen 4.1 cents
in the past week. They are 5.2 cents below month-ago levels and 5.2 cents
higher than a year ago.
Cisco commits $1B in meeting with
Russian leader
SAN JOSE, Calif. (AP) -- Cisco Systems
Inc. said Wednesday it will invest $1 billion to help foster high-tech
innovation in Russia.
Cisco CEO John Chambers made the
commitment at a meeting at the company's San Jose headquarters with Russian
President Dmitry Medvedev, who was visiting the computer networking equipment
manufacturer as part of a tour of Silicon Valley.
Medvedev has said he wants to bring
more high-tech innovation to Russia's oil-dependent economy and create the
country's own Silicon Valley outside Moscow.
By The Associated Press
The Dow closed with a gain of 4.92, or
0.1 percent, to 10,298.44 after being up nearly 75 points in afternoon trading.
The index lost 149 points Tuesday after the home sales report.
The broader Standard & Poor's 500
index fell 3.27, or 0.3 percent, to 1,092.04, and the Nasdaq composite index
fell 7.57, or 0.3 percent, to 2,254.23.
Benchmark crude for August delivery
fell $1.50 to settle at $76.35 on the New York Mercantile Exchange.
In other Nymex trading, heating oil
fell 4.45 cents to settle at $2.0684 a gallon, gasoline dropped 5.12 cents to
settle at $2.0823 a gallon and natural gas gained 4.8 cents to settle at $4.804
per 1,000 cubic feet.
in London Brent crude lost $1.77 to
settle at $76.27 a barrel on the ICE futures exchange