AP
Business Highlights
Initial jobless claims drop
to 457,000
WASHINGTON (AP) -- New
jobless claims fell last week for the third time in four weeks but remain
elevated. The decline is a sign that the economy likely added jobs in July,
although not enough to lower the nation's high unemployment rate.
First-time claims for
unemployment insurance dropped by 11,000 to a seasonally adjusted 457,000, the
Labor Department said Thursday.
Claims have fluctuated this
month because of temporary seasonal factors. General Motors and other
manufacturers skipped their traditional summer shutdowns, which led to fewer
layoffs and unemployment claims. But the impact of that distortion has largely
Stocks fall amid
uncertainty over the economy
NEW YORK (AP) -- Stocks
ended an erratic day with a modest loss Thursday as investors tried to
reconcile another batch of conflicting economic signals.
The Dow Jones industrial
average closed down 30 points after falling as much as 110 and rising 87 during
the course of the day. The other big market indexes also closed slightly lower.
Thursday's trading fit with
the market's months-long pattern. Investors are torn between upbeat earnings
news from companies and reports that point to an uncertain recovery.
Big Oil posts better
profits on higher fuel prices
NEW YORK (AP) -- The major
oil companies continue to climb back from the recession, with higher fuel
prices driving up earnings.
After setting record
profits in 2008, the oil industry tanked last year as the global economic downturn
induced a dramatic drop in oil and natural gas prices. On Thursday, Exxon Mobil
Corp. said it earned $7.56 billion in the second quarter, its best result since
the last three months of 2008. Royal Dutch Shell Group posted a 15 percent gain
in net income. A day earlier, ConocoPhillips said net income nearly tripled in
the April-June period.
Chevron Corp. reports its
quarterly results on Friday.
Citigroup paying $75M to
settle civil charges
WASHINGTON (AP) -- Banking
titan Citigroup Inc. is paying $75 million to settle civil charges that it
misled investors about its potential losses from subprime mortgages as the
housing bust hit in 2007.
The Securities and Exchange
Commission announced the settlement with Citigroup on Thursday. It said the
company repeatedly made misleading statements in calls with analysts and
regulatory filings about the extent of its holdings tied to high-risk
mortgages.
The bank had said the
exposure was $13 billion or less. The SEC said it exceeded $50 billion.
Toyota recalls 412,000 cars
in US to fix steering
NEW YORK (AP) -- Toyota is
recalling nearly half a million cars, most of them large sedans sold in the
U.S., for problems that can cause the steering wheel to lock up. It's the
latest indication that the automaker is still struggling with vehicle problems
even as it works to overhaul quality control.
The recall, announced
Thursday, affects 412,000 vehicles in the U.S. -- 373,000 Avalon sedans and
39,000 Lexus LX 470 SUVs. The recall is Toyota's largest since announcing it
would fix 600,000 Sienna minivans over rusting spare tire holders in April.
Mortgage rates hit low of
4.54 percent
NEW YORK (AP) -- Mortgage
rates are the most affordable in decades for those who can qualify for a loan.
For many, the opportunity
to buy a home or refinance at this time is lost because of the tough economy
and tight credit standards. But those who have secure jobs, superior credit and
strong finances could do even better than the 4.54 average rate that Freddie
Mac reported Thursday, according to experts.
The latest rate is the
lowest for a 30-year fixed loan since Freddie began tracking rates in 1971. It
also marks the fifth time in six weeks that the mortgage company has reported
hitting a new average low.
Southwest reports $112
million 2Q profit
DALLAS (AP) -- Southwest
Airlines Co. added an upbeat note to a strong quarter for the airline industry
by reporting a $112 million profit for spring and early summer.
The nation's biggest
discount airline also said Thursday that it sees no evidence travel demand is
weakening, despite persistently high unemployment and consumer jitters about
the economy.
Southwest said its adjusted
earnings were 29 cents per share in the second quarter, enough to beat
analysts' expectations. Revenue rose 21 percent thanks to a 15 percent increase
in average fares during the start of the summer vacation period.
UAW head: GM to file
paperwork in August for IPO
DETROIT (AP) -- General
Motors Co. will file paperwork in mid-August to start the process of selling
stock to the public, the head of the United Auto Workers union said Thursday.
President Bob King said GM
would file the paperwork, called a registration statement, along with its
second-quarter earnings. King made the announcement in a statement touting the
union's cooperation in the turnaround of the U.S. auto industry.
GM confirmed that the
earnings would be released in mid-August, but spokeswoman Renee Rashid-Merem
would not comment on when the public stock offering paperwork would be filed
with the U.S. Securities and Exchange Commission.
Weak revenue, Venezuela hit
Colgate's 2Q
CHICAGO (AP) --
Colgate-Palmolive Co.'s shares sank Thursday when the consumer product maker
posted revenue below expectations and told investors that Venezuela's currency
devaluation would drag down its full-year results more than expected.
It's the second straight
quarter where news about Venezuela, one of Colgate's largest markets in Latin
America, has plagued the world's largest toothpaste maker.
Colgate also recorded a
hefty charge in its first quarter because of its business in Venezuela, which
devalued its currency then and moved the Bolivar to a two-tier exchange
structure.
Motorola 2Q earnings climb,
revenue stabilizes
NEW YORK (AP) -- Motorola
Inc. on Thursday reported a sharply higher profit for the second quarter and
stabilized its long revenue decline as its strategy of focusing on smart phones
like the Droid bore fruit.
Co-CEO Greg Brown said he
expects the company to post a revenue increase for the third quarter, which
would be the first such increase in three years.
The Schaumburg, Ill.,
company reported net income of $162 million, or 7 cents per share in the
April-June quarter. That's up from $26 million, or 1 cent per share, a year
ago.
By The Associated Press
The Dow fell 30.72, or 0.3
percent, to 10,467.16.
The Standard & Poor's
500 index fell 4.60, or 0.4 percent, to 1,101.53. The Nasdaq composite index
fell 12.87, or 0.6 percent,to 2,251.69.
Benchmark crude for
September delivery rose $1.37 to settle at $78.36 a barrel on the New York
Mercantile Exchange.
Natural gas for September
delivery rose 10.9 cents to $4.827 per 1,000 cubic feet.
In other Nymex trading,
heating oil for August delivery added 4.08 cents to $2.0372 a gallon. Because
that contract expires on Friday, much of the trading has moved to the September
contract, where the price gained 4.36 cents at $2.0696 a gallon.
The August contract for
gasoline, which also expires Friday, rose 3.4 cents to $2.0974 a gallon. The
September contract rose 3.63 cents to $2.1010 a gallon.
Brent crude settled up 31
cents at $77.59 a barrel on the ICE futures exchange.