AP
Business Highlights
Tuesday December 23, 7:08 pm ET

Home sales in 2008 slowest in a decade

WASHINGTON (AP) -- U.S. home sales in 2008 are expected to be the worst in a decade, November data confirmed Tuesday, and there appears to be no quick turnaround coming next year.

Existing home sales plunged to a rate of 4.49 million last month, down 8.6 percent from October, and worse than economists predicted. Total sales, not calculated as an annual rate, fell 17 percent in November from a year earlier to 322,000, the National Association of Realtors said.

Meanwhile, the Commerce Department said November sales of newly built homes fell 2.9 percent from October to a pace of 407,000 units, the slowest rate in nearly 18 years.

Madoff investor found dead of suicide

NEW YORK (AP) -- The founder of an investment fund that lost $1.4 billion with Bernard Madoff was discovered dead Tuesday after committing suicide at his Madison Avenue office, marking a grim turn in a scandal that has left investors around the world in financial ruin.

Rene-Thierry Magon de la Villehuchet was found sitting at his desk at about 8 a.m. with both wrists slashed, New York Police Department spokesman Paul Browne said. A box cutter was found on the floor along with a bottle of sleeping pills on his desk. No suicide note was found.

Dow falls for 5th straight session on grim data

NEW YORK (AP) -- Wall Street pulled back again Tuesday in muted trading ahead of the holiday, as another round of reports showed further deterioration in the housing market and broader economy.

The Dow Jones industrial average finished lower for the fifth straight day, shedding 100.28, or 1.18 percent, to 8,419.49. The Dow is well off the multiyear lows it tumbled to in mid-November, but it is still down more than 400 points, or 4.6 percent, so far for the month of December. Typically, December is the one of the best months for the stock market.

Economy declined 0.5 percent in third quarter

WASHINGTON (AP) -- As the longest recession in a quarter century intensifies, analysts believe the small decline in economic activity in the third quarter has worsened significantly in the current fourth quarter.

The Commerce Department said Tuesday that the gross domestic product, the broadest measure of economic health, declined at an annual rate of 0.5 percent in the July-September quarter. Corporate profits fell 1.2 percent.

American Express gets OK for $3.39B from gov't

NEW YORK (AP) -- American Express Co. said Tuesday it received preliminary approval to obtain $3.39 billion in capital as part of the government's $700 billion bank rescue program.

Primarily a credit card lender, American Express changed its structure to become a bank holding company last month. The change in status allows American Express to tap a wide array of government funding and lending programs, including the bank investment program.

More declines for oil on latest batch of bad news

Oil prices dipped below $38 a barrel Tuesday on fresh evidence of weakness in the U.S. housing market and a shrinking gross domestic product that suggests the recession may be worsening.

Light sweet crude for February delivery fell 93 cents to settle at $38.98 on the New York Mercantile Exchange after dipping to $37.79 earlier in the day.

Prices have fallen 73 percent since July, with massive job layoffs and weak consumer spending eating away at energy use.

CIT to receive $2.33B from government program

NEW YORK (AP) -- Commercial financial firm CIT Group Inc. said Tuesday it received preliminary approval to obtain $2.33 billion as part of the government's $700 billion bank investment program.

The approval comes just hours after the government approved CIT's application to become a bank holding company. The change in structure to become a bank holding company was a prerequisite to obtaining the funds.

Treasury provides support for 92 more banks

WASHINGTON (AP) -- The Treasury Department says it has provided an additional $4.7 billion to 92 banks as part of the government's $700 billion rescue of the financial system.

The department released a list of 49 banks that got final approval last Friday to receive $2.8 billion. It said an additional 43 banks received final approval Tuesday, but those names will not be released until Monday.

Treasury also confirmed that it had given preliminary approval to American Express Co. and CIT Group to receive support from the $700 billion bailout fund.

American Greetings swings to 3Q loss on charges

PORTLAND, Ore. (AP) -- American Greetings Corp. shares sank to their lowest price in 21 years Tuesday after the greeting card company reported that it swung to a loss in its third quarter due to hefty charges and lower sales in the tough economy.

American Greetings posted a loss of $193.3 million, or a loss of $4.25 per share, compared with a profit of $29 million, or 52 cents per share, last year.

Wells Fargo, Wachovia shareholders approve deal

NEW YORK (AP) -- Wells Fargo & Co. and Wachovia Corp. shareholders on Tuesday voted to approve Wells Fargo's $11.8 billion purchase of Wachovia.

The combination creates one of the nation's largest banks. A combined Wells Fargo and Wachovia will have more than $1.42 trillion in assets and nearly $800 million in deposits, with operations in 39 states and Washington, D.C.

By The Associated Press

The Dow Jones industrial average shed 100.28, or 1.18 percent, to 8,419.49.

Broader indexes also declined on Tuesday. The Standard & Poor's 500 index fell 8.47, or 0.97 percent, to 863.16. The Nasdaq composite index fell 10.81, or 0.71 percent, to 1,521.54. The Russell 2000 index of smaller companies fell 6.43, or 1.35 percent, to 468.64.

Light sweet crude for February delivery fell 93 cents to settle at $38.98 on the New York Mercantile Exchange after dipping to $37.79 earlier in the day.

On the Nymex Tuesday, gasoline futures fell less than a penny to settle at 86.6 cents a gallon. Heating oil fell 1.45 cents to settle at $1.327 a gallon while natural gas for January delivery jumped 44.3 cents to settle at $5.737 per 1,000 cubic feet.

In London, February Brent crude fell $1.09 to settle at $40.36 a barrel on the ICE Futures exchange.