Microsoft and Yahoo challenge Google: Bing it on
SAN FRANCISCO (AP) -- Microsoft Corp. has finally roped Yahoo Inc. into an
Internet search partnership, capping a convoluted pursuit that dragged on for
years and setting the stage for them to make a joint assault against the dominance
of Google Inc.
The 10-year deal announced
Wednesday gives Microsoft access to the Internet's second-largest search engine
audience, beefing up the software maker's arsenal as it tries to better
confront Google, which is by far the leader in online search and advertising.
While the agreement shapes
up as a potential boon for Microsoft, it was greeted in the stock market as a
letdown for Yahoo. Just 14 months ago, Microsoft dangled $9 billion in front of
Yahoo in an attempt to forge a search advertising partnership, only to be
rebuffed. Yahoo had also turned down Microsoft's $47.5 billion bid to buy the
entire company.
Yahoo has been struggling so
badly since then that Microsoft isn't paying any money in advance.
Fed survey: Stabilization
seen in some regions
WASHINGTON (AP) -- The
economy is finally showing signs of stabilizing in some regions of the country
-- especially in parts of the Northeast and Midwest -- bolstering hopes of a
broader-based recovery this year.
A Federal Reserve snapshot
of economic conditions issued Wednesday found that most of the Fed's 12 regions
indicated either that the recession was easing or that economic activity had
"begun to stabilize, albeit at a low level."
The economy remains fragile.
But the fact that some Fed regions reported signs of activity beginning to
level out raises hope that the recession, which started in December 2007, is
drawing to a close.
Stocks slip as fears remain
about pace of recovery
NEW YORK (AP) -- The stock
market is holding up, just not pressing ahead as the economic signs look a
little less promising.
Stocks had their fourth
straight day of minimal moves Wednesday as commodity prices slid and orders for
big-ticket manufactured goods fell, injecting more uncertainty into the market.
Investors are uneasy but
aren't giving up on stocks. The Dow Jones industrials lost only 26 points on
Wednesday and major indexes are still up about 11 percent since mid-July.
Analysts say the market's buoyancy after such a big gain is a welcome sign of
stability, but also that more good news is needed for stocks to resume their
climb.
For now, though, investors
are finding more reasons for concern. The price of oil and other commodities
fell for a third day after stocks tumbled in China on fears that growth in that
country would slow. That could hurt demand for a range of commodities.
Trustee sues Madoff's wife
for nearly $45M
NEW YORK (AP) -- The trustee
overseeing the liquidation of Bernard Madoff's assets sued the disgraced money
manager's wife on Wednesday, asking for nearly $45 million that he says was
spent on "a life of splendor."
Trustee Irving H. Picard
spelled out his claims in a lawsuit against Ruth Madoff in U.S. Bankruptcy
Court in Manhattan. Ruth Madoff several weeks ago moved out of a $7 million
Manhattan penthouse where she and her husband had lived during their 49-year
marriage.
Ruth Madoff's lawyer, Peter
Chavkin, said in a statement that Picard's action was "wrong as a matter
of law and fairness."
Energy prices slide as
unused crude piles up
NEW YORK (AP) -- Oil prices
sank nearly 6 percent Wednesday, the largest drop in more than three months,
with more signs emerging that consumers are cutting back on energy costs.
Benchmark crude for September
delivery fell $3.88 to settle at $63.35 a barrel on the New York Mercantile
Exchange. In London, Brent prices lost $3.35 to settle at $66.53 a barrel on
the ICE Futures exchange.
The summer driving season
has been a bust for industries that rely heavily on summer travel because
Americans are staying very close to home. Industries have cut back as well,
shuttering factories that consume a lot of energy and laying off workers.
Time Warner beats 2Q
estimates; outlook steady
LOS ANGELES (AP) -- Time Warner
Inc.'s second-quarter earnings beat Wall Street forecasts Wednesday despite a
declining advertising market, as its Turner cable networks held up better than
expected and "The Hangover" became a sleeper box office hit.
The New York-based media
conglomerate also affirmed its projection for full-year adjusted earnings at
roughly $1.98 per share, or flat year-over-year, and confirmed its spinoff of
the AOL Internet portal would occur around the end of 2009.
Time Warner, which also owns
the Warner Bros. movie studio, the HBO and Turner cable networks and Time Inc.
magazines, earned $519 million, or 43 cents per share, in the three months
ended in June. That's down 34 percent from $792 million, or 66 cents per share,
a year earlier.
ConocoPhillips profit tumbles
76 percent
HOUSTON (AP) --
ConocoPhillips became the second oil major in as many days to report plunging
profits for the second quarter, saying Wednesday its earnings fell a whopping
76 percent because of the year-over-year fall in oil and gas prices and lousy
refining results.
The dismal outcome for the
nation's third-largest oil company followed BP PLC's report Tuesday of earnings
53 percent below the April-June period a year ago, when crude prices were at
triple-digit levels.
Profit declines of 50 percent
or more are expected to be the norm for producers, but they still could cause a
double-take for an industry that only a year ago was notching the fattest
profits on record.
ConocoPhillips took a
beating in both of its major businesses -- finding and producing oil and
natural gas and refining and selling gasoline and other types of fuel.
Sprint Nextel posts wider 2Q
loss, shares skid
KANSAS CITY, Mo. (AP) --
Investors pummeled Sprint Nextel Corp.'s shares Wednesday after the nation's
third-largest wireless carrier said it continued to hemorrhage some of its most
valuable customers during the second quarter despite the introduction of the
glitzy Palm Pre smartphone.
The Overland Park,
Kan.-based company's shares closed down 54 cents, or 11.7 percent, to $4.05
Wednesday, about midway within their 52-week range of $1.35 to $9.57.
In an interview with the
Associated Press, Chief Executive Officer Dan Hesse said he wasn't happy about
the net quarterly loss of 257,000 subscribers, including 991,000 customers who
sign annual contracts and are generally the most profitable.
But he noted the losses are
slowing and that the company has taken steps to eliminate many of the technical
and customer service problems that have chased away customers in the past.
Firms make case against new
trading limits
WASHINGTON (AP) -- Financial
firms that play a dominant role in the energy futures market brought their case
to federal regulators Wednesday against new limits on speculative trading that
would apply to them in their role as market middlemen.
Speculative trading has been
blamed by some market watchers for widening the oil price swings that have
punished industries and consumers.
Marking a potential shift
for the government, the Commodity Futures Trading Commission may be moving
toward setting new restraints on the amount of trading in energy futures by
Wall Street firms and other participants that are solely financial investors.
Visa quarterly profit jumps
72 percent
BOSTON (AP) -- Visa Inc.'
said Wednesday its fiscal third-quarter profit jumped 72 percent, as recent
cost-cutting helped offset declining payment processing volume.
The world's largest
electronic payment network on Wednesday reported net income of $729 million, or
97 cents per share, for the three months ended June 30. That's up from a profit
of $422 million, or 51 cents per share, in the year-ago period.
Excluding one-time items
such as the sale of an interest in a Brazilian venture, Visa's adjusted
quarterly profit was $507 million, or 67 cents per share.
Analysts surveyed by Thomson
Reuters expected a profit of 67 cents per share. Analysts' estimates typically
exclude one-time items.
By The Associated Press
The Dow Jones industrial
average fell 26.00, or 0.3 percent, to 9,070.72. The Dow also fell Tuesday
after a weak reading on consumer confidence. The two-day drop was the first for
the Dow in more than a month. The average is on pace to record its best July in
20 years.
The broader Standard &
Poor's 500 index fell 4.47, or 0.5 percent, to 975.15, while the Nasdaq
composite index slid 7.75, or 0.4 percent, to 1,967.76.
Benchmark crude for
September delivery fell $3.88 to settle at $63.35 a barrel on the New York
Mercantile Exchange. In London, Brent prices lost $3.35 to settle at $66.53 a
barrel on the ICE Futures exchange.
In other Nymex trading,
gasoline for August delivery fell 5.56 cents to settle at $1.855 a gallon and
heating oil lost 9.34 cents to settle at $1.6713 a gallon. Natural gas for
August delivery dropped 15.6 cents to settle at $3.379 per 1,000 cubic feet.