AP Business Highlights

 

On Tuesday July 27, 2010, 5:49 pm EDT

Confidence falls even as corporate profits rise

NEW YORK (AP) -- Americans' confidence in the economy faded further in July, according to a monthly survey released Tuesday, amid job worries and skimpy wage growth. That's at odds with Wall Street's recent rally fueled by upbeat earnings reports from big businesses such as chemical maker DuPont Co. and equipment maker Caterpillar Inc.

The Consumer Confidence Index came in at 51.0 in July, a steeper-than-expected decline from the revised 54.3 in June, according to a survey the Conference Board. The decline follows last month's decline of nearly 10 points, from 62.7 in May, and is the lowest point since February. It takes a reading of 90 to indicate a healthy economy -- a level not seen since the recession began in December 2007.

Stocks fall slightly on consumer confidence report

NEW YORK (AP) -- Stocks fell modestly Tuesday after three days of big gains. The Dow Jones industrial average rose 12 points, but its advance was largely due a jump in DuPont Co. after the chemical maker reported strong earnings. Broader market indexes fell slightly, and there were more losers than gainers on the New York Stock Exchange.

Investors have been torn over the past few months between buying on companies' upbeat reports and selling on government and private sector numbers that keep pointing to a slowing of the economy. When earnings reports are done, unsettling data on jobs, housing and consumer spending will dominate trading, and may well lead to more selling.

BP taps new American CEO, reports $17 billion loss

NEW ORLEANS (AP) -- The American picked to lead oil giant BP as it struggles to restore its finances and oil spill-stained reputation pledged Tuesday that his company will remain committed to the Gulf region even after the busted well is sealed.

Robert Dudley will become BP PLC's first non-British chief executive, the company said as it reported a record quarterly $17 billion loss and set aside $32.2 billion to cover costs from the spill.

BP ended weeks of speculation by confirming that gaffe-prone Tony Hayward will step down Oct. 1. The London-based company is seeking to reassure both the public and investors that it is learning lessons from the April 20 oil rig explosion that killed 11 workers and set off the worst offshore spill in U.S. history.

Home prices increase 1.3 pct. in May from April

NEW YORK (AP) -- Home prices rose in May for the second straight month as federal tax incentives pulled more buyers into the market.

The Standard & Poor's/Case-Shiller 20-city home price index released Tuesday posted a 1.3 percent increase in May from April.

Nineteen of 20 cities showed price gains month over month. Minneapolis and Atlanta led the way with 2.8 percent and 2 percent increases, respectively. And San Diego posted its 13th straight monthly gain.

GE pays $23M to settle Iraq kickback charges

WASHINGTON (AP) -- General Electric Co. will pay $23.4 million to settle federal charges that some of its subsidiaries paid illegal kickbacks to the Iraqi government in order to win contracts under a U.N. program.

The Securities and Exchange Commission said in a civil complaint filed Tuesday in federal court that GE subsidiaries gave cash, computers, medical supplies and other goods worth $3.6 million to the Iraqi health and oil ministries from 2000 to 2003.

The SEC alleged the kickbacks were in return for contracts to supply medical and water purification equipment under the United Nations' oil-for-food program, which provided humanitarian aid to prewar Iraq.

DuPont 2Q profit climbs; lifts outlook for year

NEW YORK (AP) -- Chemical maker DuPont Co. said Tuesday its net income nearly tripled in the second quarter as revenue surged in most of its businesses and it raised prices.

The Wilmington, Del., company also raised its earnings forecast for the year, saying it expects to continue to benefit from higher prices, growing sales and better efficiency.

DuPont, which makes a wide range of chemicals and many other products including Teflon and Kevlar, said its net income rose to $1.16 billion, or $1.26 per share, from $417 million, or 46 cents per share. Excluding a gain related to a tax settlement, DuPont earned $1.17 per share.

Occidental Petroleum 2Q earnings jump 56 percent

NEW YORK (AP) -- Occidental Petroleum Corp. said Tuesday that net income jumped 56 percent in the second quarter as prices for oil and natural gas rose and the company pumped more from the ground.

The Los Angeles oil company reported earnings of $1.06 billion, or $1.31 per share, up from $682 million, or 84 cents per share in the same quarter a year ago. Revenue increased 29 percent to $4.8 billion.

Analysts had estimated earnings of $1.33 per share on revenue of $4.7 billion.

Lockheed surfs Pentagon changes; 2Q net up 12 pct

WASHINGTON (AP) -- Defense contractor Lockheed Martin Corp. said Tuesday that its second-quarter profit rose 12 percent thanks to stronger military hardware sales and a gain from plans to sell off a business unit.

Earnings from the nation's biggest supplier of military equipment beat Wall Street expectations and the company raised its earnings per share outlook by 15 cents mostly due to a lower expected share count and an expected $30 million of higher profits in its space division. But it also trimmed its revenue outlook.

The Bethesda, Md., company reported net income of $825 million, or $2.22 per share, up from $734 million, or $1.88 per share in the same quarter last year.

US Steel talks of hurdles ahead after 2Q loss

NEW YORK (AP) -- United States Steel Corp. on Tuesday said there are some hurdles ahead for the global steel industry, as it gave a shaky outlook for the current quarter after posting a second-quarter loss.

The loss was far smaller than a year ago as sales more than doubled. For the current quarter, the company expects to post a profit compared with a year-ago loss. It thinks results will fall below the $198 million in income from operations during the second quarter because of declining orders from spot market customers.

Audit: US cannot account for $8.7B in Iraqi funds

BAGHDAD (AP) -- A U.S. audit has found that the Pentagon cannot account for over 95 percent of $9.1 billion in Iraq reconstruction money, spotlighting Iraqi complaints that there is little to show for the massive funds pumped into their cash-strapped, war-ravaged nation.

The $8.7 billion in question was Iraqi money managed by the Pentagon, not part of the $53 billion that Congress has allocated for rebuilding. It's cash that Iraq, which relies on volatile oil revenues to fuel its spending, can ill afford to lose.

By The Associated Press

The Dow rose 12.26, or 0.1 percent, to 10,537.69 after gaining 405 points the past three days.

The Standard & Poor's 500 index fell 1.17, or 0.1 percent, to 1,113.84, while the Nasdaq composite index fell 8.18, or 0.4 percent, to 2,288.25.

Benchmark crude lost $1.48 to settle at $77.50 a barrel on the New York Mercantile Exchange.

In other Nymex trading, heating oil fell 4.32 cents to settle at $1.9994 a gallon and gasoline gave up 4.26 cents to settle at $2.0632 a gallon.

In London, Brent crude lost $1.37 to settle at $76.13 a barrel on the ICE Futures exchange.