On Wednesday September 1, 2010, 5:48 pm
Weak auto sales for August
amid economic worries
DETROIT (AP) -- Americans
nervous about the drumbeat of bad economic news stayed away from auto
showrooms. Automakers nervous about their bottom lines didn't offer deals to
lure them in.
As a result, it was the
worst August for U.S. auto sales since 1983, when the country was at the end of
a double-dip recession. General Motors, Toyota, Honda and Ford all reported
declines from the month before and from a year earlier.
The bleak results were a
reminder that, for all the good news about the turnaround of the Detroit
automakers, the market for cars and trucks in the United States remains frail.
Initial data showed sales came in at about 997,000, down 5 percent from July,
according to AutoData Corp.
Manufacturing in US and
abroad lifts economy
WASHINGTON (AP) --
Manufacturing is growing in the United States and abroad, easing fears that the
economy might be on the verge of a second recession.
The U.S. sector expanded
for a 13th straight month in August, coinciding with gains in Chinese
manufacturing and auto sales.
In the U.S., manufacturing
has helped lead the economy out of the worst recession since the 1930s and
factories kept churning out goods last month.
The Institute for Supply
Management said Wednesday that its manufacturing index rose to 56.3 in August
from 55.5 in July. A reading above 50 indicates growth. The trade group's index
has surged since late 2009 and hit a six-year high in April.
Stock market kicks off
September with strong gains
NEW YORK (AP) -- Stocks
jumped Wednesday after surprisingly strong growth in U.S. and Chinese
manufacturing allayed some of the worries that had been building over the
global economy in recent weeks.
The Dow Jones industrial
average jumped 255 points on the first day of September. With investors pouring
into stocks, Treasury prices fell and interest rates rose.
The new reports snapped a
string of disappointing economic data that sent stocks slumping in August. The
Standard & Poor's 500 Index, the benchmark most widely used by professional
investors, lost 4.7 percent in the month, its worst August performance since
2001.
Ex-Lehman CEO says
regulators refused to save firm
WASHINGTON (AP) -- The
former chief of Lehman Brothers told a panel investigating the financial crisis
that the Wall Street firm could have been rescued, but regulators' refused to
help -- even though they later bailed out other big banks.
Richard S. Fuld Jr. told
the Financial Crisis Inquiry Commission at a hearing that Lehman did everything
it could to limit its risks and save itself in the fall of 2008.
Fuld accepted
responsibility for mistakes made that saddled Lehman with some $60 billion in
bad investments. But he said federal regulators denied Lehman proposals that
could have saved the firm, while other financial firms later received the
government assistance that Lehman was denied.
Apple unveils new box for
streaming movies, TV
SAN FRANCISCO (AP) -- Apple
Inc. announced a smaller, cheaper version of its Apple TV device for streaming
movies and television shows over the Internet and into the living room. It also
unveiled a new line of iPods, including a touch-screen Nano model.
The tiny new Apple TV
system announced Wednesday will only let people rent, not buy, content. For
first-run high-definition movies the day they come out on DVD, people will have
to pay $4.99. High-definition TV show rentals will be 99 cents.
The price of the box is
also being cut to $99, from $229. Cheaper options for streaming video had been
available, including Roku's set-top boxes that start at $60.
July unemployment up in
about half of US cities
WASHINGTON (AP) -- The
unemployment rate rose in nearly half of the nation's 372 largest metro areas
in July, as the pace of hiring slowed from earlier this year.
The Labor Department says
the jobless rate rose in 176 areas, dropped in 152 and was unchanged in 44.
Despite the weak showing,
that's an improvement from June, when the jobless rate rose in about
three-quarters of the metro areas. But it's worse than this spring, when rates
declined in more than 230 areas for three straight months.
Heinz 1Q profit rises 13
pct on overseas strength
PORTLAND, Ore. (AP) -- H.J.
Heinz Co.'s fiscal first-quarter net income jumped 13 percent as the
foodmaker's business boomed in growing overseas markets such as India, China
and Russia.
Heinz, best known for its
signature ketchup, reported before the market opened Wednesday that it earned
$240.4 million, or 75 cents per share, for the quarter that ended in late July.
That's up from $212.6 million, or 67 cents per share, in the same quarter last
year.
Heinz's revenue rose 1.6
percent to $2.48 billion.
The earnings beat analyst
expectations of 73 cents per share but fell short of revenue expectations of
$2.53 billion, according to a poll by Thomson Reuters.
Borders 2nd-quarter loss
widens as revenue drops
NEW YORK (AP) -- Borders
Group Inc. reported a slightly larger loss in the second quarter and said it
will sell more items besides books as it readies for the crucial holiday
season.
The company is also closing
underperforming stores and introducing a paid loyalty program as it continues
to battle tough competition from online retailers like Amazon.com and discount
stores such as Walmart.
Since financier Bennett
LeBow invested $25 million in the company in May and became CEO, Borders has
made a variety of moves to shore up its struggling business, including selling
its Paperchase stationery unit and introducing an electronic bookstore.
Borders Inc. CEO Mike
Edwards said more changes are in the works.
Botox maker to pay $600M to
resolve investigation
WASHINGTON (AP) -- Allergan
Inc., the maker of wrinkle-smoothing Botox, has agreed to pay $600 million to
settle a yearslong federal investigation into its marketing of the top-selling,
botulin-based drug.
The Justice Department and
the company said Wednesday in a statement it will plead guilty to one
misdemeanor charge of "misbranding," in which the company's marketing
led physicians to use Botox for unapproved uses. Those included the treatment
of headache, pain, spasticity and cerebral palsy in children.
Companies are prohibited
from promoting drugs for unapproved, or "off-label," uses.
By The Associated Press
The Dow Jones industrial
average gained 254.75 points, or 2.5, percent to close at 10,269.47.
Broader indexes also had
large gains. The Standard & Poor's 500 index rose 30.96, or 3 percent, to
1,080.29, and the Nasdaq gained 62.81, or 3 percent, to 2,176.84.