On Thursday October 7, 2010, 5:53 pm EDT
Shoppers may have the upper
hand this Christmas
NEW YORK (AP) -- The
Christmas shopping season doesn't kick off for another six weeks, but retailers
already are signaling they're prepared to discount aggressively to entice
shoppers still skittish about spending.
Gift buyers are likely to
scrutinize every purchase, from $20 toys to $1,000 designer jackets, do their
homework before they buy, and limit how many stores they visit.
That could put stores in a
jam this year because for many, deadlines for holiday orders were in spring
when the economic recovery looked more solid. Since then several indicators and
consumers' collective mood have darkened.
Retailers report September
back-to-school boost
NEW YORK (AP) -- Americans
proved in September they are willing to spend, as long as the price and the
product are right.
Stores including
Abercrombie & Fitch Co., Limited Brands Inc. and Macys Inc. posted strong
September sales figures, helped by customers lured to malls by back-to-school
discounting. That strength was partly offset by erratic weather in the last
week of the month, including a heat wave on the West Coast and tropical storms
on the East Coast.
The results are a positive
sign that shoppers will be willing to spend during the upcoming holiday season.
Weak economy has nations
waging currency wars
WASHINGTON (AP) -- Fears of
a full-blown currency war flared Thursday as the dollar fell to an eight-month
low against the euro and the U.S. stepped up pressure on China to let its
currency rise.
The escalating tension
threatened to dominate a three-day conference of the International Monetary
Fund and the World Bank. Leaders from both groups warned Thursday that a
currency war could destabilize global financial markets at a fragile moment.
The flare-up comes as
investors are anticipating the U.S. Federal Reserve will pump billions more
dollars into the U.S. economy. That is weakening the value of the dollar
against the euro, which has been surging.
Alcoa 3Q income dips 21
percent
NEW YORK (AP) -- Alcoa Inc.
said Thursday its net income slid about 21 percent in the third quarter on
higher foreign exchange and energy costs.
The Pittsburgh aluminum
maker on Thursday reported net income of $61 million, or 6 cents per share, for
the three-month period ended Sept. 30. That compares with earnings of $77
million, or 8 cents per share for the same period last year. Revenue increased
14.6 percent to $5.3 billion.
The results beat Wall
Street expectations of 5 cents a share on revenue of $4.95 billion.
Alcoa, which supplies a
variety of manufacturers including the auto and aerospace industries, is one of
the first companies to report financial results for the quarter, and economists
use its results to get an early read on the health of the economy.
Stocks dip ahead of jobs
news, pull back from 11K
NEW YORK (AP) -- Stocks
edged lower Thursday, backing away from early gains, as uncertainty built up
ahead of a key report on the labor market.
The Dow Jones industrial
average came within two points of 11,000 before turning lower for most of the
day. The Dow hasn't traded above that level since May 4, about a week after
reaching its highest point of the year.
Slightly better news on
claims for unemployment insurance gave stocks an early lift, but the gains
faded quickly as traders opted for caution ahead of Friday's employment report
from the Labor Department, the most crucial piece of news on the economic
calendar.
Unemployment claims drop,
while job openings rise
WASHINGTON (AP) --
Companies are laying off fewer workers and advertising more job openings, two
encouraging signs that arrived a day before the government issues the September
jobs report.
But economists say
employers aren't ramping up hiring fast enough to reduce the unemployment rate,
now 9.6 percent. Some economists expect the rate to top 10 percent by early
next year.
Companies at least aren't
laying off so many workers. Fewer people applied for unemployment benefits for
the fourth time in five weeks, the Labor Department said Thursday.
Lawyers compete for big
payoff, control in BP case
MIAMI (AP) -- More than 100
lawyers are battling for the biggest chunks of what is likely to be a
multibillion-dollar settlement for Gulf of Mexico oil spill victims, jockeying
for spots on the elite team that will control the plaintiffs' cases.
A judge will pick 12 to 15
lawyers to take the lead in lawsuits against BP PLC and other companies filed
by thousands of fishermen, restaurateurs, hotel operators, property owners and
many others over the worst offshore oil spill in U.S. history.
Competition is fierce: The
candidates include a former Cabinet secretary and the lawyer who represented Al
Gore in the 2000 presidential recount case. The team could get up to 15 percent
of a multibillion-dollar settlement from more than 300 lawsuits that have been
consolidated in New Orleans federal court. And that's on top of the typical 30
percent fee that lawyers charge their individual clients.
Consumers cut credit card
borrowing for 24th month
WASHINGTON (AP) -- Consumer
borrowing fell again in August as consumers cut back on credit card use for the
24th consecutive month, the Federal Reserve said Thursday.
Borrowing by consumers
declined by $3.3 billion that month. It was the 18th drop for overall consumer
borrowing in the past 19 months.
Americans are borrowing and
spending less as they face widespread unemployment and uncertainty about their
financial futures. The reduced use of credit by consumers is a drag on the
recovery, which has yet to show a sustained rebound.
PepsiCo's 3Q profit rises,
but narrows guidance
NEW YORK (AP) -- PepsiCo
Inc.'s third-quarter net income rose 12 percent on strong sales gains in drinks
and Frito-Lay snacks abroad, but shares fell after the company lowered the top
end of its guidance because of investments to expand its presence overseas.
Shares fell $2.01, or 3
percent, to $65.10 in heavy volume Thursday.
The company also said it
expects to be hurt by changes in currency exchange rates, which happens to
businesses with interests abroad.
Pepsi has been expanding in
growing markets like China and India to hook shoppers as they get more money.
The moves help bolster weaker performance in developed regions like the U.S.
and Western Europe, where people are limiting their spending in down economies.
GM, UAW reach wage-cutting
deal at small-car plant
ORION TOWNSHIP, Mich. (AP)
-- General Motors and the United Auto Workers have reached a cost-cutting deal
that could accomplish what once seemed impossible: Turning a profit on
subcompact cars made in the United States.
The deal could cut in half
the hourly wage of some longtime UAW workers at a factory in Orion Township,
Mich., the first time the union has agreed to a pay cut for workers who are not
new hires.
GM says it will make a
profit selling the Chevrolet Aveo, a revamped subcompact to be built at the
plant starting next year.
Most other automakers,
including GM's main rival Ford Motor Co., build subcompacts in Mexico or other
countries with far lower labor costs. U.S.-based automakers have struggled for
years to make money on small cars.
By The Associated Press
The Dow Jones industrial
average fell 19.07, or 0.2 percent, to close at 10,948.58. The Standard &
Poor's 500 index fell 1.91, or 0.2 percent, to 1,158.06, while the Nasdaq
composite rose 3.01, or 0.1 percent, to 2,383.67.
Benchmark oil for November
delivery lost $1.56 to settle at $81.67 a barrel on the New York Mercantile
Exchange.
Natural gas fell 24.8 cents
to settle at $3.617 per 1,000 cubic feet. It hit a 52-week low of $3.610 at one
point in the session.
In other Nymex trading in
November contracts, heating oil lost 5.60 cents to settle at $2.2518 a gallon
and gasoline dropped 3.79 cents to settle at $2.1180 a gallon.
In London, Brent crude fell
$1.63 to settle at $83.43 a barrel on the ICE Futures exchange.