On Wednesday July 28, 2010, 6:28 pm EDT
Fed survey: Recovery slows
in some places
WASHINGTON (AP) -- The pace
of economic activity has slowed or held steady in parts of the country,
revealing a choppy path back to health.
A new survey released by
the Federal Reserve Wednesday found the U.S. economy growing this summer, even
as risks mount.
Of the 12 regions tracked
by the Fed, the survey said that growth held steady in Cleveland and Kansas
City, but slowed in Atlanta and Chicago. Economic activity elsewhere was
described as modest.
Orders for big-ticket goods
fall 1 percent in June
WASHINGTON (AP) -- Orders
to U.S. factories for big-ticket manufactured goods fell in June as demand for
commercial aircraft plummeted. But businesses increased spending on capital
goods for a second straight month, a sign that manufacturing continues to help
keep the economic recovery afloat.
Demand for durable goods
dropped 1 percent last month to a seasonally adjusted $190.5 billion, the
Commerce Department said Wednesday. It was the second straight monthly decline
and the largest drop since August 2009.
Dow ends 4-day win streak
on Fed economic report
NEW YORK (AP) -- Investors
cashed in some of their recent gains Wednesday after the Federal Reserve gave
them more confirmation that the economic recovery is slowing.
The Dow Jones industrial
average fell almost 40 points after the Fed released its regional survey of the
economy, a report known as the "beige book." The Fed said economic
growth has been steady during the summer in Cleveland and Kansas City, but has
slowed in Atlanta and Chicago. The central bank described economic activity
elsewhere as modest.
Unemployment rises in 75
pct of metro areas
WASHINGTON (AP) -- The
unemployment rate in about three-quarters of the nation's largest metro areas
rose last month as nearly one million teenagers entered the work force looking
for summer jobs.
The Labor Department said
Wednesday that the unemployment rate rose in 291 of 374 areas in June from May.
It fell in 55 areas and was flat in 28. That reverses the trend of the previous
three months, when joblessness fell in most metro areas.
But the report does not
adjust the figures to take into account seasonal trends, such as high school or
college students looking for work during the summer. As a result the figures
tend to be volatile from month to month.
Boeing 2Q profit falls;
expects defense layoffs
MINNEAPOLIS (AP) --
Boeing's second-quarter profit fell 21 percent, and it said layoffs are likely
in its defense business because of expected government spending cuts and
bargain-hunting.
Profits and revenue fell in
both Boeing's airplane and defense businesses. The commercial airplane downturn
seems to be ending, with orders up sharply from last year and U.S. airlines
reporting profits. But Boeing said the defense business would have lower
margins than expected for this year because of pricing pressure in the U.S.
Comcast 2Q profit dips on
NBC Universal deal costs
PHILADELPHIA (AP) --
Comcast Corp. reported lower second-quarter earnings Wednesday partly because
of costs related to its pending takeover of NBC Universal, yet it saw
improvements in advertising and demand for pricier television services.
The nation's largest cable
TV provider is still hoping to win regulatory approval and close by year's end
its deal to buy a controlling stake in the broadcaster from General Electric
Co. Costs to Comcast so far include legal fees and interest payments on
borrowing related to the pending transaction.
100 days later, BP taps new
CEO, seeks fresh start
NEW ORLEANS (AP) -- One
hundred days after the rig explosion that set off the worst offshore oil spill
in U.S. history, the oil giant behind it is hoping to move beyond the losses,
the gaffes and the live video that ran for weeks of the busted well coughing up
massive amounts of crude every second.
BP is replacing CEO Tony
Hayward with Managing Director Robert Dudley, selling $30 billion in assets and
setting aside $32.2 billion to cover the long-term cost of the spill. It's also
claiming a $9.88 billion tax credit in the second quarter based on the $32.2
billion charge.
BP executives were asked in
a conference call Tuesday whether they had discussed the tax credit with U.S.
authorities.
CVS announces deal with
Aetna, 2Q profit falls
NEW YORK (AP) -- CVS
Caremark Corp. Wednesday reported weaker quarterly earnings and lowered its
profit forecast, but shares rose as investors approved of a large pharmacy
benefit management services contract struck with Aetna.
CVS Caremark will
administer Aetna's retail pharmacy store network and manage customer service.
It will also handle prescription drug purchasing, manage inventories, and fill
prescriptions for Aetna's mail order and specialty pharmacy operations. The
contract will ramp up over several years and bring in revenue of $8.2 billion
next year. CEO Tom Ryan said the 12-year contract is the largest and longest
contract in the industry.
ConocoPhillips 2Q earnings
more than double
NEW YORK (AP) --
ConocoPhillips said Wednesday its second-quarter income more than doubled as
oil prices increased and refining margins jumped.
The Houston oil company
also announced plans to sell its entire holdings in Russian oil company Lukoil
by the end of next year.
The company purchased a
stake in Lukoil, Russia's largest private oil company, in 2004, hoping that it
would open the door to more exploration and production projects in the region.
Sprint Nextel posts first
subscriber gain in 3 years
NEW YORK (AP) -- Sprint
Nextel Corp. said Wednesday that it gained subscribers in its latest quarter,
the first such gain in three years, as it continued to improve customer service
and retention.
However, it continued to
lose the most lucrative customers, those who sign two-year contracts, and
posted a wider loss for its second quarter due to tax effects.
Sprint shares rose 6 cents,
or 1.5 percent, to $4.90 in morning trading. In pre-market trading, shares were
up as much as 10 percent before investors fully digested the numbers.
By The Associated Press
The Dow fell 39.81, or 0.4
percent, to 10,497.88.
The Standard & Poor's
500 index fell 7.71, or 0.7 percent, to 1,106.13, while the Nasdaq composite
index fell 23.69, or 1 percent, to 2,264.56.
Benchmark crude fell 51
cents to settle at $76.99 a barrel on the New York Mercantile Exchange.
Natural gas rose 9.9 cents
to settle at $4.774 per 1,000 cubic feet.
In other Nymex trading
heating oil fell 0.3 cent to settle at $1.9964 a gallon and gasoline dropped
0.02 cent to settle at $2.0634 a gallon.
In London, Brent crude lost
7 cents to settle at $76.06 a barrel on the ICE Futures exchange.