On Thursday October 14, 2010, 6:16 pm EDT
Yahoo shares rise on buyout
talk
SAN FRANCISCO -- Yahoo
Inc.'s management insists the Internet company still boasts one of the world's
best-known brands even as it has flopped financially. Some investment vulture
funds apparently agree.
Reports saying they are
exploring the possibility of buying Yahoo in tandem with another struggling
Internet icon, AOL Inc., have sent Yahoo's shares higher.
A successful bid would
likely result in the sale of Yahoo's prized holdings in Asia and replace the
company's foul-mouthed, sometimes prickly CEO Carol Bartz with AOL's younger
and more diplomatic leader, Tim Armstrong.
Another takeover attempt of
Yahoo could also elicit a counter bid from its spurned suitor of two years ago,
Microsoft Corp.
Google 3Q earns up 32 pct
as online ads strong
SEATTLE (AP) -- Google
Inc.'s third-quarter earnings climbed 32 percent to beat Wall Street's
expectations as companies spent more to advertise to Web surfers.
The Web search leader
clocked an impressive performance despite adding 1,500 workers in the quarter,
for a total of 3,500 new employees so far this year. Google also spent more
than four times as much on data centers and other equipment than it did a year
ago.
Investors sent shares of
Google jumping in extended trading after the release of results Thursday.
Market rallies for a flat
finish
NEW YORK (AP) -- Stocks
closed little changed Thursday on another disappointing jobs report and growing
concern over an investigation of banks' foreclosure practices. But the market
made up earlier losses as investors anticipated that the Federal Reserve will
take steps soon to strengthen the economy.
Bank and other financial
stocks were pummeled as more companies suspended foreclosures on homes while
taking steps to confirm that they have fully complied with the law.
In a move that effectively
froze the market for foreclosed homes, the attorneys general of all 50 states
announced Wednesday that they are planning to investigate whether banks took
all of the appropriate steps before foreclosing on hundreds of thousands of
homes.
Lost year for jobs, tough
election for Democrats
WASHINGTON (AP) -- The job
market has barely improved since January, making 2010 a lost year for the
millions who are out of work.
The number of people
applying for jobless benefits and the high unemployment rate have essentially
been static in that time, the latest data show.
It's a bleak picture for
Democrats, who could lose control of Congress in three weeks. Numerous polls
show voters blame President Barack Obama and his party for the slow economic
recovery and the 9.6 percent unemployment rate -- not much better than the 9.7
percent rate when the year began.
A sluggish economy has made
employers reluctant to hire. Most economists don't expect much improvement
until late next year. Some say conditions could worsen, and the jobless rate
could drift back up to 10 percent this spring.
Trade deficit widens
sharply to $46.3 billion
WASHINGTON (AP) -- The U.S.
trade deficit widened sharply in August, reflecting a surge in imports of
consumer products as businesses restocked their shelves in hopes of a pickup in
consumer demand.
The politically sensitive
deficit with China climbed to an all-time high, a development that was certain
to increase pressure on the Obama administration to take a tougher line on
trade issues including China's tightly controlled currency.
The Commerce Department
said Thursday the deficit in August increased 8.8 percent to $46.3 billion.
Exports edged up a slight 0.2 percent but this increase was swamped by a 2.1
percent jump in imports.
Verizon to join AT&T in
selling Apple's iPad
NEW YORK (AP) -- In a sign
of warming relations between the two companies, Verizon Wireless is going to start
selling Apple Inc.'s iPad at the end of this month, the companies said
Thursday.
The news follows published
reports that Verizon Wireless will start selling a version of the iPhone early
next year. The companies have not confirmed the reports, and Verizon Wireless
has downplayed the possibility of an iPhone for its current network.
AT&T Inc. is Apple's
exclusive U.S. carrier for the iPhone. It's also the only U.S. carrier that's
compatible with the "3G" version of the iPad, which allows for
cellular data access.
Verizon Wireless won't sell
the 3G version. Instead, it will sell the Wi-Fi version, with the option of
bundling it with a "MiFi" gadget for about $130.
Oxy Pete's highly paid CEO
Irani to step down
NEW YORK (AP) -- Under
heavy criticism from shareholders over his lofty compensation, Occidental
Petroleum Corp.'s longtime chief executive said Thursday he'll relinquish his
role as CEO next year and take a pay cut.
Ray Irani, who made nearly
$150 million from 2006 to 2009 and was America's sixth-highest paid CEO last
year, will remain company chairman. He plans to retire at the end of 2014,
according to a regulatory filing.
Occidental made the
decision five months after investors protested Irani's pay package at the
company's annual meeting. It's a sign that investors are gaining some sway over
corporate boards, especially those that granted executives handsome pay
packages during the recession.
Mortgage rates hit
decades-low of 4.19 percent
WASHINGTON (AP) -- Rates on
30-year mortgages fell this week to 4.19 percent, the lowest level in decades.
They were pushed down by lower Treasury bond yields.
Investors are buying up
Treasury bonds in anticipation of a move by the Federal Reserve designed to
lower mortgage rates and yields on corporate debt.
As a result, the average
rate for 30-year fixed loans dropped to the lowest level on records dating back
to 1971, mortgage buyer Freddie Mac said Thursday. It's down from 4.27 percent
the previous week. The last time rates were this low was in the early 1950s.
The average rate on 15-year
fixed loans fell to 3.62 percent, the lowest on records dating back to 1991,
Freddie Mac said.
OPEC keeps its oil output
targets unchanged
VIENNA (AP) -- OPEC oil
ministers on Thursday left production targets unchanged despite what they say
is oversupply, signaling both satisfaction with crude prices in the $80s and
determination to send a message of stability to energy-dependent nations
emerging from recession.
A senior OPEC official also
confirmed that the organization was studying a consultant's report that warns
of possible substantial losses in earning power for members by 2050 as the
world goes green and reduces dependence on fossil-based fuels.
The report was prepared for
OPEC as part of its long-term strategy, approved Thursday. It says the gross
domestic product of OPEC members could fall between 27 percent and 44 percent
in 40 years as nations enact laws to counter climate change.
By The Associated Press
The Dow Jones industrial
average ended the day down 1.51, or less than 0.01 percent, at 1,1094.57, after
falling as much as 70 in the morning. The Standard & Poor's 500 index fell
4.29, or 0.36 percent, to 1,173.81. The Nasdaq composite index fell 5.85, or
0.2 percent, to 2,435.38.
Benchmark crude lost 32
cents to settle at $82.69 a barrel on the New York Mercantile Exchange. Trading
was volatile with the November contract expiring Thursday.
Natural gas lost 3.9 cents
to settle at $3.657 per 1,000 cubic feet on the Nymex.
In other energy trading,
heating oil gave up 1.68 cents to settle at $2.2839 a gallon and gasoline
dropped 2.96 cents to settle at $2.1365 a gallon.
In London, Brent crude fell
11 cents to settle at $84.53 a barrel on the ICE Futures exchange.