On Monday August 9, 2010, 5:38 pm EDT
Stocks rise as investors
await Fed meeting outcome
NEW YORK (AP) -- Investors
are getting optimistic that the Federal Reserve will restart some of its
economic stimulus programs.
Stocks closed moderately
higher Monday, a sign that many investors expect the Fed to take steps to put
some energy back into the recovery. The Dow Jones industrial average rose 45
points. Trading was very light as many investors stayed out of the market while
they waited for the Fed's decision. Many traders have been avoiding any big
investment decisions for much of the summer because they have no sense of where
the economy is headed.
Chrysler sees smaller loss
but tough work remains
DETROIT (AP) -- Chrysler is
stanching its losses, seeing increased demand for its cars and trucks and
preparing for a major product rollout 14 months after emerging from bankruptcy
protection.
But the automaker is far
from healthy, and its CEO says Chrysler has more tough work ahead as it tries
to make a profit and pay off government loans.
Chrysler Group LLC narrowed
its second-quarter loss to $172 million, a $25 million improvement from the
first quarter, it said Monday. Revenues climbed 8.2 percent to $10.5 billion.
U.S. market share is rising.
Gov't likely to keep big
mortgage market role
WASHINGTON (AP) -- Keeping
Fannie Mae and Freddie Mac in business will cost taxpayers billions. But
getting the federal government out of the mortgage business would cost home
buyers dearly, in the form of higher interest rates.
The Obama administration
will begin tackling this dilemma next Tuesday at a public conference on the
future of the mortgage system. Fannie and Freddie lost a combined $9 billion in
the April-to-June quarter and have needed more than $148 billion to stay afloat
since the government rescued them nearly two years ago.
The administration and
Congress are under pressure to address Fannie and Freddie's role that
contributed to the mortgage crisis after leaving that out of the broader
financial regulatory overhaul.
Honda recalling nearly 400K
vehicles
WASHINGTON (AP) -- Honda
Motor Co. is recalling the popular Accord and Civic passenger cars to address
problems with an ignition switch that could allow the key to be removed without
the transmission being shifted into park, its third recall over the problem
since 2003.
Honda said the most recent
recall involved 384,220 vehicles and includes 2003 model year Accord and Civics
and 2003-2004 versions of the Honda Element. Honda told the National Highway
Traffic Safety Administration that the defect with the automatic transmissions
could lead to a vehicle rolling away and increase the risk of a crash.
Sara Lee CEO Brenda Barnes
steps down permanently
NEW YORK (AP) -- Sara Lee
Corp. Chairman and CEO Brenda Barnes will step down permanently to focus on
improving her health following a stroke, the food maker said Monday.
Barnes, 56, had been on
temporary medical leave since May 14. She will also leave her position on Sara
Lee's board of directors.
CFO Marcel Smits, who has
been handling the CEO duties in her place, will continue to do so until a new
CEO is named.
The food maker, based in
Downers Grove, Ill., said its board has started a process to select a new CEO
and is looking inside and outside of the company.
Cold smoothies, hot July
spike McDonald's sales
CHICAGO (AP) -- McDonald's
lesson from July: If you want to start selling cold, fruity drinks, pick one of
the hottest months in U.S. history.
The fast-food giant posted
its biggest monthly increase in more than a year in an important U.S. sales
figure as U.S. as the fast-food chain's new fruit smoothies and ice-cold
frappes got a warm reception from customers.
The increase shows just how
much the behemoth is outpacing its competitors as customers keep flocking to
the world's largest hamburger chain while competitors post anemic U.S. sales.
Shares touched an all-time high Monday morning.
Merck discloses probe of
foreign sales practices
TRENTON, N.J. (AP) -- Two
federal agencies are probing drugmaker Merck & Co. for possibly violating
anti-bribery laws in multiple foreign countries.
Merck, the world's
second-biggest drugmaker by revenue, has received inquiry letters from both the
Department of Justice and the Securities and Exchange Commission, the company
said in a regulatory filing. The letters "seek information about
activities in a number of countries and reference the Foreign Corrupt Practices
Act," according to Merck.
The FCPA act bars U.S.
companies from bribing government officials in other countries to win business,
among other things.
DOJ says negotiations
completed for $20B fund
WASHINGTON (AP) -- The
Justice Department and BP announced Monday that they have finished negotiations
to implement a $20 billion fund for victims of the Gulf oil spill and that BP
has made a $3 billion initial deposit.
The company still needs to
ensure that all the necessary funds will be available if something happens to
the BP subsidiary that established the trust and that the Justice Department
looks forward to completing an appropriate security arrangement in the near
future, said Associate Attorney General Tom Perrelli.
Tyson 3Q net income up 89
pct, chicken improves
NEW YORK (AP) -- Meat
producer Tyson Foods Inc. posted an 89 percent jump in third-quarter net
income, helped by higher beef and pork prices and a chicken business that's
recovering.
The company has been
working through an industrywide downturn brought on by a combination of higher
production costs and slumping demand as shoppers cut back on trips out to eat.
The Springdale, Ark.-based
company said its prepared foods unit struggled in the quarter because of rising
ingredient costs but still made money.
Internet calling service
Skype files for IPO
NEW YORK (AP) -- Skype SA,
the Internet calling service that was controlled until last year by eBay Inc.,
filed Monday for a U.S. initial public offering.
Luxembourg-based Skype
tentatively put the value of the offering at $100 million, but that's a rough
estimate only used as a basis for calculating the filing fee for the Securities
and Exchange Commission.
Skype did not say when its
shares would go on sale, or at what price. It expects to list on the Nasdaq
Stock Market under an unspecified symbol.
By The Associated Press
The Dow rose 45.19, or 0.4
percent, to 10,698.75.
The Standard & Poor's
500 index rose 6.15, or 0.6 percent, to 1,127.79, and the Nasdaq composite
index rose 17.22, or 0.8 percent, to 2,305.69.
Benchmark crude for
September delivery rose 78 cents to settle at $81.23 a barrel on the New York
Mercantile Exchange. Oil has stayed above $80 a barrel for six straight
sessions.
In other Nymex trading in
September contracts, heating oil rose 0.66 cent to settle at $2.1538 a gallon,
gasoline gained 0.60 cent to settle at $2.1187 a gallon and natural gas fell
15.8 cents to settle at $4.309 per 1,000 cubic feet.
In London, Brent crude
added 83 cents to settle at $80.99 a barrel on the ICE Futures exchange.