On Tuesday July 13, 2010, 6:09 pm EDT
Trade gap widens as imports
and exports both rise
WASHINGTON (AP) -- The
trade deficit rose in May to an 18-month peak as rising imports offset another
solid gain in U.S. exports. The surge in imports was a hopeful sign for the
economic recovery because it suggested businesses are optimistic that U.S.
consumers will spend more in coming months.
The trade gap grew 4.8
percent to $42.3 billion, the largest deficit since November 2008, the Commerce
Department said Tuesday.
U.S. exports of goods and
services rose 2.4 percent to $152.3 billion. It was the largest monthly total
since September 2008, the month the financial crisis struck with force.
Stocks surge after Alcoa,
CSX report strong profit
NEW YORK (AP) -- The stock
market got a shot of confidence and adrenaline from the start of second-quarter
earnings season.
Investors were enthusiastic
Tuesday about better-than-expected profits from aluminum maker Alcoa Inc. and
railroad operator CSX Corp. The Dow Jones industrial average rose more than 145
points and the major indexes were up well over 1 percent.
The companies, among the
first to report second-quarter earnings, also issued upbeat forecasts for the
rest of the year. That was heartening news for investors who have been
concerned that the recovery was stalling, or that the economy might even fall
back into recession.
Job openings drop in May as
hiring stays weak
WASHINGTON (AP) -- Job
openings dropped in May from the previous month and layoffs edged up, fresh
evidence that employers are reluctant to add workers.
The decline in job openings
comes after a sharp rise the previous two months, driven by temporary
government hiring for the 2010 census and more openings in the private sector.
As a result, the number of available jobs has rebounded since the depths of the
recession but remains well below pre-recession levels.
The Labor Department said
Tuesday that job openings fell to 3.2 million in May from 3.3 million in the
previous month. April's upwardly revised figure was the highest in 18 months.
Federal budget gap tops $1
trillion through June
WASHINGTON (AP) -- The
federal deficit has topped $1 trillion with three months still to go in the
budget year, showing the lasting impact of the recession on the government's
finances.
In its monthly budget
report, the Treasury Department said Tuesday that through the first nine months
of this budget year, the deficit totals $1 trillion. That's down 7.6 percent
from the $1.09 trillion deficit run up during the same period a year ago.
Worries about the size of
the deficit have created political problems for the Obama administration.
Congressional Republicans and moderate Democrats have blocked more spending on
job creation and other efforts. Republicans also have held up legislation to
extend unemployment benefits for the long-term jobless because of its effect on
the deficit.
Intel posts biggest profit
in a decade
SAN FRANCISCO (AP) -- Intel
Corp. posted its largest income in a decade Tuesday as the company benefits
from a strengthening computer market and more sophisticated factories.
The results topped Wall
Street's forecasts, and Intel raised its guidance, but that may not be enough
to quell fears about cracks in the computer industry's recovery amid fresh
economic worries.
Intel reported after the
market closed Tuesday that net income was $2.89 billion, or 51 cents per share,
in the quarter ended June 26. That compares with a loss of $398 million, or 7
cents per share, a year ago, when Intel was forced to pay a $1.45 billion fine
in Europe over antitrust violations.
BP partner refuses to help
pay for Gulf spill
NEW YORK (AP) -- Both of
BP's partners in its blown-out Gulf well have turned their backs on the
company, refusing to pay to help clean up.
A BP spokesman said Tuesday
that MOEX Offshore 2007 LLC has turned away a $111 million cleanup bill that BP
requested last month. The other minority owner, Anadarko Petroleum Corp.,
refused a $272 million bill from BP last week.
MOEX, which owns 10 percent
of the well, declined immediate comment. MOEX is owned by Japan's Mitsui Oil
Exploration Co.
Fed survey: Investors have
bigger debt appetite
WASHINGTON (AP) --
Investors are showing a bigger appetite to fund a range of securities, an
encouraging sign that credit conditions are improving.
The Federal Reserve, in its
first such survey, released Tuesday, found that demand has increased over the
last three months for funding high-grade corporate bonds, stocks, residential
mortgage-backed securities issued by Fannie Mae and Freddie Mac and other
asset-backed securities.
During the height of 2008
financial crisis, panicked investors lost their appetite to lend against a
variety of securities. That cut off the flow of credit to businesses and
consumers and plunged the country into the worst recession since the 1930s.
Vivus weight loss drug
faces FDA panel this week
NEW YORK (AP) -- Vivus
Inc.'s experimental drug Qnexa was effective in cutting weight, the Food and
Drug Administration said Tuesday, while acknowledging lingering concerns over
the drug's nervous system and psychiatric side effects.
Still, shares of Vivus
jumped as the drug edged closer to approval, potentially the first new
prescription drug therapy in more than a decade in the burgeoning obesity
market.
The FDA raised some
concerns in briefing documents posted online on Tuesday about a range of side
effects. It said reviewers should take into account rates of depression, memory
and concentration lapses, and heart-related issues, among others. The concerns
were not a surprise to Wall Street, which has been following development of the
drug over the last several years.
Yum 2Q profit falls but
adjusted beats forecasts
LOUISVILLE, Ky. (AP) -- The
owner of the Taco Bell, Pizza Hut and KFC fast-food brands says its
second-quarter profit dipped slightly this year, but its adjusted results beat
Wall Street's expectations.
The company raised its
full-year outlook.
Yum Brands said Tuesday
that it earned $286 million, or 59 cents per share, for the quarter. Revenue
rose 6 percent to $2.57 billion as it saw strong growth in China. A year
earlier, it earned $303 million, or 63 cents per share, including a $68 million
one-time gain for increasing and consolidating its stake in KFC in China.
Tax-wise, Steinbrenner
picked a great year to die
CHICAGO (AP) -- Born on the
Fourth of July, George Steinbrenner left the world stage with a great sense of
timing too.
By dying in 2010, the
billionaire and longtime New York Yankees owner's wealth avoids the federal
estate tax, likely saving his heirs enough money to field an entire team of
Alex Rodriguezes.
Steinbrenner's death
Tuesday comes during an unplanned gap year in the estate tax, the first since
it was enacted in 1916. Political wrangling has stalemated efforts in Congress
to replace the tax that expired in 2009.
That deprives the
government of billions of dollars in annual revenue but represents an
unexpected bonanza for the rich and those who inherit wealth.
By The Associated Press
The Dow rose 146.75, or 1.4
percent, to 10,363.02.
The Standard & Poor's
500 index rose 16.59, or 1.5 percent, to 1,095.34, while the Nasdaq composite
index rose 43.67, or 2 percent, to 2,242.03.
Benchmark crude for August
delivery gained $2.20 to settle at $77.15 on the New York Mercantile Exchange.
In other Nymex trading,
heating oil gained 5.61 cents to settle at $2.0474 a gallon, gasoline rose 5.41
cents to settle at $2.0821 a gallon and natural gas fell 3.4 cents to settle at
$4.354 per 1,000 cubic feet.
In London, Brent crude rose
$2.28 to settle at $76.65 a barrel on the ICE Futures exchange.