On Thursday December 2, 2010, 6:11 pm EST
Holiday shoppers came out
to spend in November
NEW YORK (AP) -- Shoppers
had retailers' registers ringing in November, getting the holiday season off to
a roaring start.
Retailers on Thursday
reported revenue figures that topped expectations and showed the second-biggest
monthly percentage gain in four years. The reports raise hopes spending might
remain strong for the rest of the holiday season and help the economy recover.
But it's still early in the
holiday game and 40 percent of sales typically come in the last 10 days before
Christmas. Analysts expect stores will need to keep up the deep but
well-planned discounts.
The International Council
of Shopping Centers' index showed a 5.8 percent gain in revenue at stores open
at least a year for November, much better than the 3 to 4 percent increase
expected.
ECB extends special crisis
measures
LONDON (AP) -- The European
Central Bank stepped up efforts to contain the continent's government debt
crisis, as bank president Jean-Claude Trichet announced it would prolong
measures to provide ready cash to banks and steady the financial system.
Markets were initially
disappointed Thursday when Trichet did not say the bank would go even further
and increase its purchases of government bonds. The euro sagged almost a cent
during his news conference.
But it quickly bounced
back, trading higher on the day on market chatter that the bank might in fact
be quietly buying bonds of financially troubled eurozone countries -- despite
Trichet's reticence on the issue.
Companies beware: The next
big leak could be yours
SAN FRANCISCO (AP) --
WikiLeaks' release of secret government communications is a warning to the
world's biggest companies: You may be next.
Computer experts have
warned for years about the threat posed by disgruntled insiders and by poorly
crafted security policies, which give too much access to confidential data. And
there is nothing about WikiLeaks' release of U.S. diplomatic documents to
suggest that the group can't -- or won't -- use the same methods to reveal the
secrets of powerful corporations.
And as WikiLeaks claims it
has incriminating documents from a major U.S. bank, possibly Bank of America,
there's new urgency to addressing information security inside corporations and
a reminder of its limits when confronted with a determined insider.
Jump in holiday retail
sales pushes stocks higher
NEW YORK (AP) -- Strong
retail sales and a healthy reading on the housing market helped stocks start
December with a two-day winning streak.
The Dow Jones industrial
average rose 106 points. Combined with a 249-point gain Wednesday, the Dow has
had its best two-day run since July 7-8.
Major retailers reported
sales in November that were stronger than analysts expected. Increased spending
during the holiday season would be a strong signal that consumers are feeling
more confident.
Two-year low for layoffs
hints at hiring pickup
WASHINGTON (AP) -- November
marked a two-year low for the number of people applying for initial
unemployment benefits, suggesting that the tight job market may be easing at
last.
The slowing of layoffs and
a solid month for retailers are the latest evidence of a strengthening economy
in the final months of the year. Even the struggling housing market showed
signs of improvement: On Thursday, it posted a third straight monthly increase
in signed contracts for home purchases.
Some economists are now
sketching a more optimistic forecast for Friday's report on November
employment, though few expect a change in the 9.6 percent unemployment rate.
PepsiCo to buy stake of
Wimm-Bill-Dann for $3.8B
NEW YORK (AP) -- PepsiCo
Inc. is buying a majority stake in Wimm-Bill-Dann Foods for $3.8 billion, a
deal that will make it the biggest food and beverage company in Russia.
The deal is Pepsi's largest
international acquisition ever. It gives the company dominant position in the
fast-growing Russian market and furthers its plan to build its global nutrition
business.
Combined, the companies
will hold six of Russia's 20 largest food and beverage brands and will be about
twice the size of its nearest competitor in the country. PepsiCo said the deal
will make Russia its second-largest market behind the U.S.
Madoff trustee sues
JPMorgan, others for $6.4B
NEW YORK (AP) -- The trustee
trying to recover money for investors cheated by Bernard Madoff is suing JP
Morgan Chase for $6.4 billion, saying the bank had a central role in abetting
the disgraced financier as he carried out his fraud.
Trustee Irving Picard
announced Thursday the filing of the lawsuit in U.S. Bankruptcy Court in New
York.
Picard alleges the bank
ignored the fraud and collected fees and profits, even though it had
well-documented suspicions about the scam.
Liberty Media gives up
stake in Diller's IAC
NEW YORK (AP) -- Barry
Diller and John Malone, two media moguls whose partnerships over the past 17
years have been rocky at times, are cutting more of their business ties as
Malone's Liberty Media sheds its voting stake in Diller's IAC/InteractiveCorp.
Diller, 68, is also
stepping down as CEO of IAC/InterActiveCorp, though he will stay on as chairman
and likely increase his ownership stake in the Internet company. His
replacement is Greg Blatt, 42, who has been with IAC since 2003 and most
recently served as CEO of the online dating site Match.com.
Liberty Media Corp. gave up
its 60 percent voting stake in IAC for $220 million in cash and IAC's Evite and
Gifts.com businesses, which are small but profitable.
Toll Brothers posts profit
for 4Q on tax benefit
LOS ANGELES (AP) --
Homebuilder Toll Brothers Inc. caters to high-income earners who tend to enjoy
a smaller rate of joblessness than most, but even they're not buying.
The nation's largest
builder of luxury homes on Thursday reported its new home contracts fell 27
percent in the August-October quarter from a year earlier.
The results, which echo
those of other large homebuilders in recent weeks, reflect a housing market
that remains hampered by high unemployment, uncertainty over home prices and
weak consumer confidence in the U.S. economy.
Grocer Kroger rings up 3Q
profit
CINCINNATI (AP) -- Kroger
Co. doesn't yet see the end of rough economic times for American consumers,
even after ringing up increased sales and a solid profit for its third quarter.
The nation's largest traditional-format
grocer said many shoppers are buying more items but at lower prices, and
they're still showing uncertainty in their spending amid intense competition
for their dollars. Kroger shares tumbled Thursday after the company released
its earning report.
Kroger said grocery prices
are down, despite hikes in milk, meats and produce, and aggressive promotions
continue to cut into profit margins. The company has stayed cautious in
earnings guidance, and Thursday narrowed its range at both ends.
By The Associated Press
The Dow Jones industrial
average rose 106.63, or 1 percent, to close at 11,362.41 The Dow jumped 2.3
percent Wednesday, its biggest gain since Sept. 1, after a report showed that
private employers were adding jobs.
The broader Standard & Poor's
500 index rose 15.46, or 1.3 percent, to 1,221.53. The Nasdaq composite index
rose 29.92, or 1.2 percent, to 2,579.35.
Benchmark oil for January
delivery added $1.25 to settle at $88 a barrel on the New York Mercantile
Exchange, just shy of the contract's 2010 high of $88.29 a barrel.
Meanwhile, gasoline for
January delivery added 5.49 cents to settle at $2.3553 per gallon. The price
has risen about 20 percent since Labor Day, the unofficial end of the heavy
summer driving season.
In other Nymex trading in
January contracts, heating oil gained 4.9 cents to $2.4546 a gallon. Natural
gas added 7.4 cents to $4.343 per 1,000 cubic feet after the Energy Department
said natural gas inventories held in underground storage in the lower 48 states
declined by 23 billion cubic feet to 3.814 trillion cubic feet for the week
that ended Nov. 26.
In London, Brent crude rose
$1.77 to settle at $90.69 a barrel on the ICE futures exchange.