WASHINGTON (AP) -- Consumers
and businesses went on a big-ticket spending spree in July, sending home, car
and equipment sales soaring by the largest amount in years.
The sales, detailed in two
government reports Wednesday, confirmed a subtle but marked shift in confidence
about the economy. New home sales jumped almost 10 percent from June, while
orders for long-lasting goods like appliances, planes and computers rose nearly
5 percent in July, the third increase in the past four months.
Most economists now agree
the recession that began in December 2007 has ended or is ending. Some say the
economy is poised to grow strongly in the July-September quarter, but will
probably show weaker growth after government stimulus spending tapers off.
Stocks eke out small gains,
Dow higher for 7th day
NEW YORK (AP) -- Stocks
finished a choppy day of trading Wednesday mostly higher following positive
reports on home sales and factory orders.
The Dow Jones industrials
rose for the seventh straight day, marking another new high for the year. All
the major stock indicators finished in positive territory, but the gains were
minuscule.
An increasingly cautious
mood has gripped the market in recent days, following a period of fervid buying
this spring and summer that sent stocks up more than 45 percent since early
March. While economic data is improving, investors are now questioning whether
the market can go much higher without clear evidence of economic growth.
Cash for Clunkers under
budget with 690,000 sales
WASHINGTON (AP) -- The
popular Cash for Clunkers program generated nearly 700,000 new car sales during
the past month, giving the U.S. auto industry a badly needed jolt of activity
during the deepest decline in auto sales in two decades.
The government, releasing
final data on the car incentives, said Wednesday that dealers submitted 690,114
sales totaling $2.88 billion, bringing the program to a close under its $3
billion budget. Japanese auto manufacturers led American companies in new car
sales through the program, which ended late Monday.
Many dealers are still
waiting to be repaid for the Cash for Clunkers incentives they gave car buyers
and were allowed to submit paperwork seeking reimbursement until late Tuesday.
Agency that insures bank
deposits may need help
NEW YORK (AP) -- The
government agency that guarantees you won't lose your money in a bank failure
may need a lifeline of its own.
The coffers of the Federal
Deposit Insurance Corp. have been so depleted by the epidemic of collapsing
financial institutions that analysts warn it could sink into the red by the end
of this year.
That has happened only once
before -- during the savings-and-loan crisis of the early 1990s, when the FDIC
was forced to borrow $15 billion from the Treasury and repay it later with
interest.
On Thursday, the agency
reveals how much is left in its reserves. FDIC Chairman Sheila Bair may also
use the quarterly briefing to say how the agency plans to shore up its
accounts.
US thrifts earn $4M in 2Q;
40 on 'problem' list
WASHINGTON (AP) -- U.S.
thrifts eked out a $4 million profit in the second quarter, but the number of
troubled institutions continued to rise, the government said Wednesday.
The Office of Thrift
Supervision said the small profit in the April-June period marked the
industry's first positive earnings since the third quarter of 2007. It compared
with a loss of $5.4 billion in the year-ago period, and $1.62 billion in the
first quarter of this year.
"Problem thrifts"
on the Treasury Department agency's confidential list, those rated by examiners
as having significantly low capital reserves and other deficiencies, rose to
40. That's up from 31 in the first quarter and 17 a year earlier.
Oil prices fall again as oil
supplies rise
HOUSTON (AP) -- The price of
oil fell again Wednesday with new government data showing that U.S. crude
supplies increased last week, a sign that demand remains weak.
Benchmark crude for October
delivery slipped 62 cents to settle at $71.43 a barrel in trading on the New
York Mercantile Exchange. In London, Brent crude fell 17 cents to settle at
$71.65.
The Energy Department
reported Wednesday that U.S. crude stockpiles rose by 200,000 barrels for the
week ending Aug. 21. The same report a week ago showed a large and unexpected
draw on oil, which sent prices soaring.
The price for a barrel of
oil briefly touched $75 on Tuesday before falling 3 percent for the day -- a
common occurrence in the volatile energy markets of late.
Chrysler sues Daimler over
key 2010 vehicle parts
NEW YORK (AP) -- Chrysler
Group LLC has sued Daimler AG, accusing the German automaker of failing to
abide by contracts requiring it to supply crucial parts and putting the
production of key 2010 Chrysler vehicles in jeopardy.
The Auburn Hills,
Mich.-based company said without the Daimler-supplied steering columns and
torque converters it will be unable to produce several 2010 model-year
vehicles, including the Chrysler 300 and the Jeep Grand Cherokee SUV.
Chrysler filed the lawsuit
in bankruptcy court in New York on Friday and is seeking unspecified damages
from Daimler.
Chrysler emerged from
Chapter 11 bankruptcy protection in June after the bulk of its assets were
purchased by Italian automaker Fiat Group SpA. A large portion of Chrysler's
liabilities were left behind and are being liquidated under court supervision.
German business sentiment
improves in August
FRANKFURT (AP) -- German
business confidence improved for a fifth consecutive month in August as
Europe's largest economy showed signs of recovery from its deep downturn, a
closely watched survey said Wednesday.
The Ifo Business Climate
Survey, conducted by the Institute for Economic Research at the University of
Munich, said its reading of German business sentiment rose to 90.5 points in
August from 87.4 points in July.
Participants' expectations
for the economy also improved in August, to 95 points from 90.4 points in July.
Japan's export decline
worsens in July
TOKYO (AP) -- Japan's
exports fell 36.5 percent in July from a year earlier as an emerging rebound in
global demand lost steam, the government said Wednesday.
In June, shipments from
Japan posted their smallest decline in six months, helping drive the world's
second-biggest economy out of a yearlong recession in the April-June quarter.
But the latest figure, steeper
than June's 35.7 percent fall, suggests that Japan's recovery may be fleeting
without stronger overseas appetite for the country's cars and gadgets.
Merkel: GM talks focused on
Magna offer for Opel
BERLIN (AP) -- Chancellor
Angela Merkel said Wednesday that Germany's talks with General Motors Co. over
the future of its Opel unit remained focused on Berlin's preferred bid, by
Canadian auto parts maker Magna.
But she softened her
insistence that the deal be reached swiftly, saying substance -- not speed --
was paramount.
Merkel's government hopes to
see Opel, including its British unit Vauxhall, sold to an investor group led by
Magna International Inc. which includes Russian state-owned bank Sberbank. She
said in a Wednesday interview with N24 TV that ongoing talks centered on that
bid.
By The Associated Press
The Dow Jones industrials
rose 4.23, or 0.04 percent, to 9,543.52.
The Standard & Poor's
500 index rose 0.12, or 0.01 percent, to 1,028.12, while the Nasdaq composite
index rose 0.20, or 0.01 percent, to 2,024.43.
Benchmark crude for October
delivery slipped 62 cents to settle at $71.43 a barrel in trading on the New
York Mercantile Exchange.
In other Nymex trading,
gasoline for September delivery fell 2.44 cents to settle at $1.9826 a gallon
and heating oil fell less than a penny to settle at $1.852 a gallon. Natural
gas fell 2.8 cents to settle at $2.882 per 1,000 cubic feet.
In London, Brent crude fell
17 cents to settle at $71.65.