AP
Business
Highlights
Tuesday
November 18, 6:55 pm ET
Wall Street pulls off final-hour rebound
The market, which had been down four of the past five sessions,
has been volatile amid worries about how long a recession might be. That's
driven many retail investors to the sidelines, while big institutional traders
like hedge funds keep major stock indexes vacillating.
The Dow ended up 151.17, or 1.83 percent, to 8,424.75.
Big Three automakers beg for $25 billion lifeline
WASHINGTON (AP) -- Detroit's Big Three automakers pleaded with
Congress on Tuesday for a $25 billion lifeline to save the once-proud titans of
U.S. industry, warning of a national economic catastrophe should they collapse.
Millions of layoffs would follow their demise, they said, as
damaging effects rippled across an already-faltering economy.
But the new rescue plan appeared stalled on Capitol Hill, opposed
by the Bush administration and Republicans in Congress who don't want to dip
into the Treasury Department's $700 billion financial bailout program to come
up with the $25 billion in loans.
Lawmakers press Paulson on bailout plan changes
WASHINGTON (AP) -- Faced with exasperated lawmakers upset by
shifts in bailout strategy, Treasury Secretary Henry Paulson launched a
spirited defense Tuesday of his handling of the $700 billion program and
expressed fresh reservations about tapping the pool for mortgage guarantees to
relieve skyrocketing home foreclosures.
Members of the House Financial Services Committee grilled Paulson
for not doing enough to help distressed homeowners and for failing to force
banks that get some of the bailout money to specifically use it to bolster
lending to customers, one of the prime reasons behind the rescue package.
Wholesale prices plunge in October
WASHINGTON (AP) -- Wholesale prices in October experienced the
biggest one-month drop on records that go back more than 60 years, illustrating
the impact falling energy prices and fears of a prolonged recession can have on
inflation.
Wholesale prices dropped by a record 2.8 percent last month, reflecting
the fact that energy prices decreased by the largest amount in 22 years. After
spending most of the year worrying about surging costs for energy, food and
other commodities, analysts found it remarkable that prices could reverse so
quickly.
Homebuilder sentiment index plunges to record low
LOS ANGELES (AP) -- Homebuilders' confidence in a near-term
housing recovery sank to a new all-time low this month, reflecting growing
worries over the U.S. financial crisis, rising unemployment and weakening
consumer confidence, an industry trade association said Tuesday.
The National Association of Home Builders/Wells
Oil prices fall again as demand for fuel withers
Light, sweet crude for December delivery fell 56 cents to settle
at $54.39 a barrel on the
But there were signs that plummeting gas prices have begun to
bring American motorists back to the pump. Americans used about 100,000 more
barrels per day of gas for the week than they did the previous week, according
to a MasterCard SpendingPulse report.
Home Depot 3Q profit falls 31 percent
CHICAGO (AP) -- Home Depot Inc. gave investors a welcome surprise
Tuesday, posting a better-than-expected third-quarter profit and offering Wall
Street a second straight day of good news for the battered home improvement
sector.
But the 31 percent drop in earnings still shows just how badly
the chain has been pummeled by the economic meltdown -- which executives warned
was unlikely to abate anytime soon as they predicted a steeper drop in
full-year sales.
Yahoo's fate riding on Yang's successor as CEO
SAN FRANCISCO (AP) -- With Jerry Yang
quitting as Yahoo Inc.'s chief executive, the Internet company's board will
confront pivotal questions as it looks for a new leader.
If Yahoo plays it safe and hires someone from within or someone
friendly with Microsoft Corp., it could signal the board merely wants an
interim captain who can steer the ship until Microsoft, or possibly another
buyer, comes to the rescue.
But should Yahoo recruit a CEO with a prestigious resume or pluck
an up-and-coming technology star, it will be seen as a sign that the company is
digging in to remain independent for the long haul.
Saks posts bigger-than-expected 3Q loss
NEW YORK (AP) -- Saks Inc. reported a wider-than-expected loss
for the third quarter Tuesday, as the company resorted to deep discounts in an
attempt to pull in affluent customers spooked by massive job losses on Wall
Street and shrinking stock portfolios.
The New York-based operator of
HP shares soar after solid 4Q outlook
NEW YORK (AP) -- Hewlett-Packard Co. surprised Wall Street on
Tuesday by saying its earnings will be slightly above analysts' expectations,
going against the grain as other technology bellwethers have slashed forecasts
and posted weak results in the sagging economy.
The Palo Alto, Calif.-based computer and printer maker expects
earnings of 84 cents per share and adjusted earnings of $1.03 per share for the
three months ended in October. This is slightly better than the $1 per share,
excluding items, that analysts polled by Thomson
Reuters are expecting.
By The Associated Press
The Dow ended up 151.17, or 1.83 percent, to 8,424.75.
The Standard & Poor's 500 index rose 8.37, or 0.98 percent,
to 859.12, after earlier in the drifting toward its 2003 low of 818.69. The Nasdaq composite index rose 1.22,
or 0.08 percent, to 1,483.27. The Russell 2000 index of smaller companies fell
3.79, or 0.84 percent, to 447.51.
Light, sweet crude for December delivery fell 56 cents to settle
at $54.39 a barrel on the
In other Nymex trading, gasoline
futures fell 3.78 cents to settle at $1.1368 a gallon. Heating oil fell 3.31
cents to settle at $1.7579 a gallon while natural gas for December delivery
fell 1.7 cents to settle at $6.516 per 1,000 cubic feet.
In