On Thursday September 16, 2010, 6:12 pm EDT
Two big threats to the
economy shrink a bit
WASHINGTON (AP) --
Economists are less worried that the U.S. will experience another round of mass
layoffs and its first bout of deflation since the 1930s after the release of
two government reports Thursday.
The third drop in jobless
claims in four weeks and a mild uptick in wholesale prices in August add to
evidence that a second recession is unlikely.
Concerns about another
downturn intensified last month when jobless claims spiked past the
half-million mark. Wholesale prices, meanwhile, fell in early summer for three
straight months. But those trends have, for now, reversed themselves, leaving
an economy that is still growing, but at a pace too slow to create many jobs.
Congress wants tough stance
with China over trade
WASHINGTON (AP) -- Congress
is pressuring the Obama administration to take a tougher stand with China over
trade practices that they say have cost Americans millions of jobs.
Democrats and Republicans
on committees in the Senate and House told Treasury Secretary Timothy Geithner
on Thursday that China is manipulating its currency. They said that and other
practices have led to a huge trade gap between the two countries and job losses
in the United States.
Geithner said the
administration was ready to work with Congress on an effective strategy. But he
cautioned that the government should not take any action that would wind up
hurting U.S. companies and businesses by triggering retaliation by China, an
important trading partner.
FedEx delivers int'l
profits but cuts US jobs
NEW YORK (AP) -- FedEx
Corp. indicated Thursday that the global economic recovery remains uneven.
While strength in international shipments is boosting net income, FedEx is
cutting 1,700 jobs in its U.S. freight business to offset losses there.
The world's second-largest
package delivery company did raise its financial outlook after as it said
first-quarter net income doubled. But projections for the second quarter and
full year fell shy of Wall Street expectations. FedEx shares dropped almost 4
percent.
International air shipments
have driven FedEx's results for more than a year; international revenue rose 24
percent in the quarter ended Aug. 31. But while FedEx earned $380 million in
the first quarter, the FedEx Freight segment lost $16 million and has been
unprofitable for four straight quarters.
Census: 1 in 7 Americans
lives in poverty
WASHINGTON (AP) -- The
ranks of the working-age poor climbed to the highest level since the 1960s as
the recession threw millions of people out of work last year, leaving one in
seven Americans in poverty.
The overall poverty rate
climbed to 14.3 percent, or 43.6 million people, the Census Bureau said
Thursday in its annual report on the economic well-being of U.S. households.
The report covers 2009, President Barack Obama's first year in office.
The poverty rate increased
from 13.2 percent, or 39.8 million people, in 2008.
Stocks end mixed as
September rally loses steam
NEW YORK (AP) -- Stocks
struggled to a mixed finish Thursday as a two-week rally lost momentum. News of
a retrenchment by FedEx Corp. also discouraged buyers.
Stocks have been rising for
most of September, but on unusually weak volume as skepticism lingers about the
economy. FedEx, an economic bellwether, darkened the mood with an announcement
that it would eliminate 1,700 jobs in an effort to save its money-losing U.S.
trucking business.
Traders were becoming wary
as the Standard & Poor's S&P 500 index, the benchmark most used by
professional investors, approached the high end of its recent trading range.
Investors are often hesitant to push a major index outside of recently tested
limits for fear that automated selling programs could kick in and send prices
lower.
Oracle's net swells 20 pct
amid Hurd hiring hubbub
SAN FRANCISCO (AP) --
Oracle Corp.'s net income swelled 20 percent in the latest quarter as the world's
biggest maker of database software prospered from freer technology spending by
corporations.
Oracle's results, reported
Thursday, came as the company finds itself in a starring role in Silicon
Valley's latest soap opera, this one involving Mark Hurd, the ousted chief of
Hewlett-Packard Co. Oracle has scooped Hurd up to help sharpen its attack on
its longtime partner HP.
Hurd's hiring keys up the
drama between Oracle and HP at a time when Oracle is muscling into HP's turf by
selling computer servers. That's a business Oracle picked up with the $7.3
billion purchase earlier this year of Sun Microsystems, a struggling server
maker and fallen idol of the tech world.
GM CEO: Repayment of
bailout could take years
DETROIT (AP) -- It will
take a couple of years for taxpayers to get back the billions they spent
bailing out General Motors, but the company has a goal of returning the money,
GM's new CEO said Thursday.
CEO Daniel Akerson told
reporters that the government won't be repaid with the company's initial public
stock offering, which could happen later this year, but couldn't answer more
specific questions about the sale.
Akerson, a former
telecommunications industry executive and GM board member since July 2009, said
the $50 billion government bailout of GM saved a lot of jobs and helped to
preserve the country's manufacturing base.
Final well sealing small
comfort to Gulf residents
LAFITTE, La. (AP) -- News
that BP's busted well will probably be sealed once and for all this weekend
brings little comfort to many along the Gulf Coast who are still paying dearly
for the high-seas mistakes of the company and its partners.
BP's promise to stick
around until all those hurt by the spill are made whole means very different
things to different people, from Louisiana fishermen to Mississippi seafood
processors, Alabama business owners to tourism workers in the Florida
Panhandle. And for many, it's not just about money.
Down in the bayous of
southern Louisiana, it could be years before life, and the fishing that sustains
it, returns to normal.
FDA panel says 'no' to
experimental diet pill
ADELPHI, Md. (AP) --
Federal health experts rejected a highly anticipated weight loss pill Thursday
that was thought to offer a safer way to shed pounds than older medications
linked to dangerous side effects.
The Food and Drug
Administration's panel of experts voted 9-5 against Arena Pharmaceuticals' drug
lorcaserin, saying a series of unresolved safety questions outweighed the
drug's modest benefits.
The FDA is not required to
follow the panel's vote and will make its own decision by Oct. 22.
By The Associated Press
The Dow Jones industrial
average rose 22.10, or 0.2 percent, to close at 10,594.83. The Dow has now
risen in 10 of the last 12 days, but it's still 5.5 percent below its 2010
closing high level reached on April 26.
Broader indexes were mixed.
The Standard & Poor's 500 index fell 0.4, or 0.04 percent, to 1,124.66. The
index is still up 7.2 percent for September, which is usually a weak month for
stocks.
The Nasdaq composite edged
up 1.93, or 0.08 percent, to 2,303.25.
Benchmark oil for October
delivery lost $1.45 to settle at $74.57 a barrel on the New York Mercantile
Exchange.
Natural gas gained 6.7
cents to settle at $4.062 per 1,000 cubic feet.
In other Nymex trading in
October contracts, heating oil fell 3.36 cents to settle at $2.0990 a gallon
and gasoline fell 3.78 cents to settle at $1.9247 a gallon.
In London, Brent crude for
November delivery dropped 94 cents to settle at $78.48 a barrel on the ICE
Futures exchange.