On Tuesday August 31, 2010, 6:01 pm
Americans' economic
confidence ticks up slightly
NEW YORK (AP) -- Americans'
confidence in the economy improved slightly in August from July, but they're
still roughly as gloomy as a year ago.
The downbeat sentiment
underscores the challenges ahead for the increasingly shaky recovery and for
retailers, which are grappling with a weak start to back-to-school shopping.
Worries are even growing about the critical holiday shopping season.
The Conference Board, a
private research group, said Tuesday that its Consumer Confidence Index rose to
53.5 from a revised 51.0 in July. Economists surveyed by Thomson Reuters had
expected 50.5. The increase comes after two straight months of declines.
Stocks end a brutal August
with meager gains
NEW YORK (AP) -- The stock
market ended its worst August since 2001 with meager gains Tuesday after
minutes from the latest Federal Reserve meeting showed officials' increasing
concern about the economy.
Stock indexes gave up most
of their gains in mid-afternoon after the release of minutes from the Fed's
Aug. 10 meeting. Fed officials said during their discussions that they
recognized that the economy might need further stimulus beyond the purchases of
government debt the central bank announced that day. Some of the officials
acknowledged that economy had softened more than they had anticipated.
The Dow Jones industrial
average ended with a gain of 5 points, having been up 64 following a reading on
consumer confidence in August that came in stronger than expected. Stocks fell
sharply for much of August after a series of reports suggested that the
recovery has weakened.
Source: JPMorgan Chase
halting proprietary trading
BOSTON (AP) -- A source
familiar with the situation says JPMorgan Chase & Co. is shutting down its
proprietary trading desks and eliminating dozens of jobs to comply with new
restrictions on investment banks.
The source spoke Tuesday to
The Associated Press on condition of anonymity because JPMorgan Chase isn't
formally announcing the move.
The overhaul of financial
regulations signed into law in July limits proprietary trading in which an
investment bank trades on its own accounts for its own profit, rather than on
behalf of clients.
Fed officials discussed
further stimulus steps
WASHINGTON (AP) -- Federal
Reserve officials signaled at their August meeting that they would consider
going beyond a modest program to purchase government debt if necessary to boost
the economy.
Minutes of the Fed's
discussions from the Aug. 10 meeting show the central bank recognized that the
economy could need further stimulus beyond the debt purchases. Those are
intended to lower interest rates on a range of consumer and business loans.
The minutes, which were
released Tuesday, did not spell out what new steps might be taken. But they do
indicate that the officials focused attention on the modest move the Fed did
take at the meeting, which would invest a small amount of proceeds from its
huge mortgage bond portfolio in Treasury securities.
Large banks earn billions,
small banks struggle
WASHINGTON (AP) -- U.S.
banks are making money again, although a split picture of the industry has
emerged since the financial crisis.
The largest banks are
thriving, mostly because they can borrow on the cheap and have rid themselves of
bad debt. Yet smaller banks lack those advantages and are failing at the
fastest pace in years.
Overall, banks made $21.6
billion in net income in the April-to-June quarter, the Federal Deposit
Insurance Corp. said. It was the highest quarterly level since 2007.
No deal: buyers will see
fewer discounts for cars
DETROIT (AP) -- For years,
Americans shopping for cars were treated to all sorts of deals and incentives,
especially at the end of summer. Think Cash for Clunkers, which paid up to
$4,500, or promotions that offered employee discounts to everyone.
Those days are over.
Deals are getting more
scarce because automakers, newly lean and profitable, are holding the line on
those profit-eating promotions. In July, they offered $1,000 less in incentives
per car than a year earlier, according to Edmunds.com.
And with no one expecting
the government to offer a repeat of the Clunkers program, get ready for fewer
discounts on your next car.
SEC says it lacked
authority to charge Moody's
WASHINGTON (AP) -- The Securities
and Exchange Commission has declined to seek fraud charges against Moody's
Investors Services over its ratings of risky investments that led to the
financial crisis.
But the SEC said it decided
against seeking civil charges only because it determined it lacked authority to
charge a foreign affiliate of Moody's.
Instead, in a report on its
investigation, the SEC warned all credit rating agencies that they could face
charges if they mislead investors with deceptive ratings.
MTV revival pulling Viacom
out of ratings slump
LOS ANGELES (AP) -- MTV is
finally getting its mojo back, thanks to the tanned twenty-somethings of
"Jersey Shore."
Ever since its December
debut, the show's buzz has been huge, even making it into one of President
Barack Obama's speeches. The July 29 start of the second season, shot in Miami,
drew 5.3 million viewers, nearly quadruple the original opener. And audiences
have been staying put ever since.
"Jersey Shore" is
just one contributor to a ratings rebound that MTV has enjoyed since January.
It marks MTV's first consistent gain in three years.
That's a big win for parent
company Viacom Inc., as its movie studio Paramount Pictures has been paring
down its slate. Higher ratings mean advertisers from fast food chains to
clothing retailers are lining up to get on board. Analysts say that should help
boost the stock price in the months ahead.
Deere sells wind energy
business for $900M
ST. LOUIS (AP) -- Energy
company Exelon Corp. said Tuesday it will pay $900 million for the wind energy
assets of manufacturer Deere & Co., potentially signaling an active merger
and acquisition period ahead for the power industry.
With energy prices
persistently low due to a grinding economic recovery, stakes in the power
industry have begun to shift. Power generation facilities like Deere's massive
wind farms are a bargain for big firms like Exelon who have cash on hand.
Exelon's purchase comes on
the heels of other big acquisitions in the power industry, as companies look to
lock in good deals before an expected recovery starts to boost prices.
By The Associated Press
The Dow Jones industrial
average rose 4.99, or 0.05 percent, to close at 10,014.72.
Broader indexes were mixed.
The Standard & Poor's 500 index edged up 0.41, or 0.04 percent, to
1,049.33. The Nasdaq composite index fell 5.94, or 0.3 percent, to 2,114.03.
Benchmark crude for October
delivery lost $2.78 to settle at $71.92 a barrel on the New York Mercantile
Exchange.
In other Nymex trading in
September contracts, heating oil fell 3.03 cents to settle at $1.9944 a gallon
and gasoline slid by 4.47 cents to $1.8894 a gallon. Natural gas for October
delivery added 0.4 cent to settle at $3.816 per 1,000 cubic feet.
In London, Brent crude lost
$1.96 to settle at $74.64 a barrel on the ICE Futures exchange.