On Monday August 16, 2010, 5:58 pm EDT
Homebuilder confidence
sinks for 3rd month
WASHINGTON (AP) --
Homebuilder confidence dropped for the third straight month in August as the
struggling economy and a flood of cheap foreclosed properties kept people from
buying new homes.
The National Association of
Home Builders said its monthly index of builders' sentiment about the housing
market fell to 13, the lowest reading since March 2009. The index is adjusted
for seasonal factors.
Readings below 50 indicate
negative sentiment about the market. The last time the index was above 50 was
in April 2006.
China surges past Japan as
No. 2 economy
BEIJING (AP) -- China has
eclipsed Japan as the world's second-biggest economy after three decades of
blistering growth that put overtaking the U.S. in reach within 10 years.
Japan is still far richer
per person after confirming Monday that economic output fell behind its giant
neighbor for the three months ending June 30. However, the news is more proof
of China's arrival as a force that is altering the global balance of
commercial, political and military power.
Japan's economy grew just
0.1 percent in the second quarter, far short of expectations and well below the
1.2 percent growth in the first quarter.
Stocks eke out gain as
investor malaise continues
NEW YORK (AP) -- Stocks
managed to break a four-day losing streak Monday by the slimmest of margins.
Investors had no change of heart about the economy, however, and again poured
money into the safety of U.S. Treasurys.
The Dow Jones industrial
average fluctuated along with the other big market indexes throughout the day.
The Dow closed down just over a point at 10,302.01, but the other indexes had
slight gains. There were more winners than losers on the New York Stock
Exchange.
Analysts said Monday's
short buying spurt was a pause following four days of losses that sent the Dow
down almost 400 points.
China reduces holdings of
Treasury debt in June
WASHINGTON (AP) -- China
reduced its holdings of U.S. Treasury debt for a second straight month in June
while the holdings of Japan and Britain rose.
China's holdings fell by
$24 billion to $843.7 billion, a decline of 2.7 percent, the Treasury
Department said Monday in a monthly report on debt holdings.
Total foreign holdings of
Treasury securities rose $45.6 billion to a total of $4 trillion, an increase
of 1.2 percent.
The debt figures are being
closely watched at a time when the U.S. government is running up record annual
deficits. A drop in foreign demand would lead to higher interest rates in the
United States. The yield on Treasuries rises when fewer people invest in them.
Fed survey finds easier
business lending standards
WASHINGTON (AP) -- Banks
have eased lending standards for small businesses for the first time in nearly
four years, the Federal Reserve said Monday .
In its new survey of bank
lending practices, the Fed found that the loosening of loan standards was
occurring primarily at the country's largest domestic banks.
Banks had been reporting
relaxed credit standards for big corporations. But the new survey marked the
first indication that credit was beginning to ease for smaller companies.
Lowe's 2Q profit rises 10
pct; cuts sales outlook
NEW YORK (AP) -- People
bought more air conditioners and grills at Lowe's Cos. in early summer,
boosting second-quarter net income 10 percent, but overall spending was hurt by
hot weather and the weak economy, the home-improvement retailer said Monday.
The No. 2 home improvement
retailer joined a long line of companies in sounding a cautious note about
consumer spending and cut its yearly revenue guidance as worries grow about a
stalling economy.
Lowe's CEO Robert Niblock
said in an interview Monday with The Associated Press that Americans are
responding to programs such as the federal cash-for-appliances rebates and
sales but says 2010 is a "bouncing along the bottom" year.
Dell to buy storage
provider 3Par for $1.13B
SEATTLE (AP) -- Dell Inc.'s
purchase of a storage provider for $1.13 billion marks another step in the
personal computer industry's quest to expand into more profitable businesses.
As PC prices have plummeted
in recent years, computer manufacturers such as Dell and Hewlett-Packard Co.
are moving to meet emerging demand for technology services -- hoping they'll
find better profit margins there.
With the acquisition of
3Par Inc., which makes enterprise data storage equipment, Dell is boosting its
ability to help companies manage information technology in new ways, through
services generally referred to as "cloud computing."
Barclays to pay $298
million in bank case
WASHINGTON (AP) -- Barclays
Bank PLC has agreed to pay $298 million over criminal allegations that it
illegally engaged in financial transactions with banks in Cuba, Iran, Libya,
Sudan and Burma, the Justice Department disclosed in court papers Monday.
The countries are all under
economic and trade sanctions by the U.S. government.
Barclays and the Justice
Department's criminal division entered into a deferred prosecution agreement
for two years that will delay, and in all likelihood ultimately rule out, any
criminal proceedings if Barclays demonstrates to federal prosecutors that it
complies with U.S. laws.
FDA moves to withdraw
unproven blood pressure drug
WASHINGTON (AP) -- Federal
health regulators are pushing to withdraw a blood pressure drug that has been
on the market for 14 years in spite of the manufacturer's failure to submit
evidence that it actually helps patients.
The Food and Drug
Administration approved Shire Laboratories' drug ProAmatine in 1996 based on
promising early results in treating low blood pressure. But the company has
never conducted a mandatory follow-up study to actually prove the long-term
benefits of the drug.
For-profit education shares
dive on loan data
NEW YORK (AP) -- Shares of
for-profit education companies slid Monday as government data showed that many
of their students aren't repaying school loans, which could imperil the ability
of their students to receive federal financial aid, the bulk of the schools'
revenue.
Several schools contested
the government's methodology, but that couldn't stop shares of the companies
from tumbling to their lowest points in a year or more.
For-profit schools offer a
wide range of programs and certificates, from associate's degrees in the
culinary arts at Career Education Corp.'s Le Cordon Bleu to MBA degrees from
the Apollo Group Inc.'s University of Phoenix.
By The Associated Press
The Dow fell 1.14, or 0.01
percent, to 10,302.01. The Standard & Poor's 500 index rose 0.13, or 0.01
percent, to 1,079.38, while the Nasdaq composite index rose 8.39, or 0.4
percent, to 2,181.87.
Benchmark crude for
September delivery fell 15 cents to settle at $75.24 a barrel on the New York
Mercantile Exchange.
Natural gas fell 10 cents
to settle at $4.228 per 1,000 cubic feet on the Nymex.
In other trading in
September contracts, heating oil lost 0.68 cent to settle at $1.9888 a gallon
and gasoline gave up 1.53 cents to settle at $1.9243 a gallon.
In London, Brent crude fell
26 cents to settle at $74.85 a barrel on the ICE Futures exchange.