On Friday November 5, 2010, 6:03 pm EDT
WASHINGTON (AP) -- The jobs
crisis eased just a bit last month as the American economy added 151,000 jobs,
its best showing since April -- yet still not enough to make a significant dent
in unemployment.
In fact, the pace of job
creation is still only about half of what it would take to have a noticeable
effect on the jobless rate. So the big question remains: What will it take for
businesses to hire that vigorously again, and when will that be?
The unemployment rate held
steady for the third straight month at 9.6 percent in October, the government
said Friday.
Stocks post meager gains
despite strong jobs news
NEW YORK (AP) -- Stocks
struggled to end barely higher Friday after a blowout report on job creation
failed to extend a powerful rally this week driven by the Federal Reserve's
latest plan to pump up the economy.
The Dow Jones industrial
average waffled between gains and losses for much of the day before ending with
a gain of just 9 points. Earlier in the week the Dow reached its highest level
since September 2008, just before the peak of the financial crisis, over
enthusiasm about the Fed's $600 billion bond-buying program announced
Wednesday.
Stocks rapidly lost
momentum Friday, despite a report from the Labor Department showing that
employers added 151,000 jobs last month, the first gain since May and far more
than analysts had anticipated.
Pending home sales drop 1.8
percent in September
WASHINGTON (AP) -- The
number of people who signed contracts to buy homes fell in September after two
months of gains, a possible fallout from foreclosure moratoriums which have
disrupted activity in the housing market.
The National Association of
Realtors said Friday that its index of sales agreements for previously occupied
homes dropped 1.8 percent in September to a reading of 80.9. Contract signings
fell in every region of the country except the West.
The setback highlighted the
continued problems facing the housing industry as it struggles to mount a
sustained recovery from a deep recession.
Fannie Mae asks for $2.5B
in new US aid
WASHINGTON (AP) --
Government-controlled mortgage buyer Fannie Mae is asking for $2.5 billion in
additional federal aid after posting a narrower loss in the third quarter.
Fannie Mae also said Friday
it was likely that the market disarray and suspension of foreclosures due to
big lenders' problems with flawed documents will have a negative impact on the
delinquency rates of its loans, its expenses and foreclosure timelines.
However, the company said, "we cannot yet predict the extent of its
impact."
Fannie Mae said Friday it
lost $3.46 billion, or 61 cents a share, in the July-September quarter. That
takes into account $2.1 billion in dividend payments to the Treasury
Department. It compares with a loss of $19.8 billion, or $3.47 a share, in the
third quarter of 2009.
AIG cleans house; posts
$2.4B loss for 3Q
NEW YORK (AP) -- American
International Group Inc., one of the largest recipients of government aid
during the financial crisis, reported a $2.4 billion loss due to restructuring
charges Friday as the sprawling insurance company made more strides toward
trimming down its balance sheet and returning taxpayer-funded bailout money.
The moves by New York-based
AIG, which is still 80 percent owned by the government, will likely result in
an upgrade to the company's credit ratings, setting the stage for the
government to take the steps necessary to start selling its stake.
AIG still owes about $100
billion from the bailout package it received two years ago at the peak of the
2008 credit crisis, shortly after the collapse of the Lehman Brothers
investment bank. One of the first portions that AIG plans to repay is a $20
billion credit facility extended by the Federal Reserve which carries a hefty
fee.
Toyota profit quadruples to
$1.2B despite recalls
TOKYO (AP) -- Toyota's
second quarter profit more than quadrupled despite lingering worries about the
safety of its cars after massive recalls that are still dogging its sales in
the U.S.
Toyota reported
July-September profit of 98.7 billion yen ($1.2 billion) on Friday, up
dramatically from 21.8 billion yen profit a year earlier but lower than
analysts expected. Quarterly sales rose 5.8 percent to 4.807 trillion yen
($59.5 billion).
Toyota Motor Corp. is the
only major automaker whose U.S. sales have been sluggish despite a recent
onslaught of incentives that have boosted other automakers' results --
underlining how its once sterling image continues to be tarnished in that
crucial market.
Consumer borrowing posts
rare gain in September
WASHINGTON (AP) --Consumer
borrowing increased in September for the first time since January even though
the category that includes credit cards dropped for a record 25th straight
month. The rise in credit came from the category that includes student loans.
The Federal Reserve said
Friday that consumer credit increased at an annual rate of $2.1 billion in
September after having fallen at a rate of $4.9 billion in August. It was only
the second increase in the past 20 months.
Americans have been
reducing their borrowing for nearly two years as they try to repair their
balance sheets in the wake of a steep recession and high unemployment.
Post 3Q earnings soar but
Kaplan woes loom
NEW YORK (AP) -- The
Washington Post Co. posted a sharp jump in its third-quarter net income Friday,
but growing federal scrutiny of its cash cow, the Kaplan for-profit education
business, continues to loom over the company.
In response to tightening
regulation, the Post said it is overhauling its enrollment policy to allow
students a trial period before they commit to paying -- a move it warned will
likely cut into Kaplan's revenue.
The Post Co. earned $60.9
million, or $6.84 per share in the three months ended Oct. 3, up from earnings
of $17.1 million, or $1.81 per share, a year earlier.
Bank of America rejects
call to buy back mortgages
NEW YORK (AP) -- Bank of
America said it will not buy back bad mortgages from a series of high-profile
investors who complained defaults are being handled improperly and homes not
being foreclosed upon fast enough.
In response to an effort to
push the Charlotte, N.C.-based bank to buy back defaulted mortgages made by its
Countrywide unit, Bank of America attorneys rejected claims that the loans were
made improperly or being handled incorrectly in a letter Thursday.
The complaining investors
include the Federal Reserve Bank of New York, Freddie Mac, Pimco Investment
Management and Blackrock Financial Management.
The Fed is involved because
it took over assets held by American International Group Inc., which faltered
under the weight of bad home loans.
Qantas: faulty design,
build may be behind blowout
SYDNEY, Australia (AP) --
Qantas believes the engine that blew apart on the world's largest jetliner was
probably designed or built incorrectly, the chief of the Australian airline
said Friday, focusing attention on the engine's manufacturer, Rolls-Royce.
Hours after CEO Alan Joyce
spoke, another Qantas plane with Rolls-Royce engines suffered an engine problem
and turned back to Singapore's airport shortly after it took off for Sydney.
Qantas said the problem with the smaller Boeing 747 was not serious and the
flight was scheduled to take off again, 3 1/2 hours late.
Rolls-Royce Group PLC did
not comment on Friday's developments. Around a billion dollars was wiped off
its market value as the company's share price slid for the second day, ending
the day over 5 percent lower.
By The Associated Press
The Dow closed up 9.24, or
0.1 percent, at 11,444.08. The broader Standard & Poor's 500 index edged up
4.79, or 0.4 percent, to 1,225.85, and the Nasdaq composite index edged up
1.64, or 0.1 percent, to 2,578.98.
The Dow gained 326 points
this week, or 2.9 percent, its fourth weekly gain out of the past five. The
S&P is up 3.6 percent for the week and the Nasdaq rose 2.9 percent.
Benchmark oil for December
delivery rose 36 cents to settle at $86.24 a barrel on the New York Mercantile
Exchange. The price wobbled between small gains and losses after hitting a high
for the year of $87.22 a barrel earlier in the session.
In Nymex trading in
December contracts on Thursday, heating oil added 1.17 cents to settle at
$2.3848 a gallon, gasoline gained 0.29 cent to settle at $2.1800 a gallon and
natural gas rose 8.1 cents to settle $3.937 per 1,000 cubic feet.
In London, Brent crude
picked up 11 cents to settle at $88.11a barrel on the ICE Futures exchange