AP
Business Highlights
Thursday January 8, 6:16 pm ET

Stores' dismal December means prices should fall

NEW YORK (AP) -- Retailers reported dismal sales figures for December on Thursday as even Wal-Mart Stores Inc., one of the bright spots in the industry, finally buckled under the pressures of the deteriorating economy.

As the figures confirmed fears that the holiday season was the weakest since at least 1969, the malaise cut through practically all areas from kitchen gadget stores to jewelry purveyors and teen apparel retailers.

The deep discounts that began well before the official start of the holiday season spurred a number of merchants to cut their earnings outlooks, fueling more concerns about the health of the industry.

Obama: Congress must act boldly and now on economy

WASHINGTON (AP) -- President-elect Barack Obama implored Congress to "act boldly and act now" on Thursday to fix an economy growing perilously weaker, and leading lawmakers set an informal goal of mid-February for enacting tax cuts and government spending that could cost as much as $1 trillion.

Some Democrats grumbled about the incoming administration's proposed tax cuts, and Republicans warned against excessive new spending, both sides signaling the incoming president they intend to place their own stamp on the economic recovery effort.

Prosecutors: Madoff was ready to send out $173M

NEW YORK (AP) -- Prosecutors said Thursday that investigators found 100 signed checks worth $173 million in Bernard Madoff's office desk that he was ready to send out to his closest family and friends at the time of his arrest last month in what is alleged to be largest financial fraud in history.

The detail was provided in a court filing Thursday as prosecutors argued that Madoff should have his bail revoked and be sent to jail. They said the checks were further evidence that he wants to keep his assets away from burned investors in a more than $50 billion fraud.

The judge was expected to rule Friday or Monday whether Madoff should be sent to jail or remain free on bail, confined to his luxury Upper East Side penthouse with an electronic ankle bracelet and under 24-hour guard.

Stocks end mostly higher after mortgage deal

NEW YORK (AP) -- A deal to help head off more mortgage foreclosures pulled Wall Street out of a slump Thursday, giving stocks a mostly higher close. Democratic lawmakers reached an agreement with Citigroup Inc. on a plan to let bankruptcy judges alter loans in an effort to prevent home from going into foreclosure. Other lenders are expected to follow suit.

Wall Street traded lower for much of the session after a profit warning from Wal-Mart Stores Inc. intensified fears that consumers are even worse off than thought. Their reluctance to spend -- evident in Thursday's retail sales reports from many of the nation's biggest merchants -- could make it harder for the nation to recover from the recession.

The Dow Jones industrial average ended with a modest decline while the technology-focused Nasdaq composite index rose more than 1 percent.

Finding a new job becomes harder as layoffs mount

WASHINGTON (AP) -- The number of laid-off workers who are continuing to draw unemployment checks jumped more than expected to 4.6 million at the end of December and is likely to keep climbing this year -- fresh evidence that people are finding it increasingly difficult to get a new job amid a deepening recession.

The Labor Department's report Thursday also said first-time applications for jobless benefits dropped to 467,000 last week. But economists largely described that decline as a distortion, reflecting the government's difficulty in making seasonal adjustments over the holiday period.

Even with the dip, the figure still signaled trouble in the labor market. A year ago, initial claims stood at 330,000.

Citi reaches deal with lawmakers on home loans

WASHINGTON (AP) -- Democratic lawmakers have reached a deal with Citigroup Inc. on a plan to let bankruptcy judges alter home loans in an effort to prevent foreclosures and urged other lenders to follow suit.

The lawmakers aim to attach the plan to President-elect Barack Obama's economic stimulus legislation, and said Thursday the change in bankruptcy law could ease the foreclosure crisis that has dragged the economy into the worst recession in decades.

The compromise between Citigroup and Sens. Richard Durbin of Illinois, Charles Schumer and Christopher Dodd of Connecticut would be limited to loans made before the bill is signed. Obama has said he backs the concept.

Obama team urges delay in digital TV transition

WASHINGTON (AP) -- President-elect Barack Obama is urging Congress to postpone the Feb. 17 switch from analog to digital television broadcasting, arguing that too many Americans who rely on analog TV sets to pick up over-the-air channels won't be ready.

In a letter to key lawmakers Thursday, Obama transition team co-chair John Podesta noted that the Commerce Department has run out of money for coupons to subsidize digital TV converter boxes for consumers. People who don't have cable or satellite service or a new TV with a digital tuner will need the converter boxes to keep their older analog sets working.

EU, Russia strike deal on monitoring gas flow

BRUSSELS, Belgium (AP) -- The European Union said Thursday that gas supplies should restart after it struck a deal with Russia on supervising the flow of gas through Ukraine.

But officials could not say when many homes and businesses across Europe could turn on their heating again after two days without gas during freezing winter weather.

Russia cut off the natural gas it sends to Europe through the Ukraine on Wednesday when a payment dispute escalated. Russia claims Ukraine siphoned off gas for its own use. Ukraine denies this.

Schlumberger to cut up to 1,000 jobs

HOUSTON (AP) -- Schlumberger Ltd., the world's largest oilfield services company, says it's eliminating up to 1,000 jobs in North America, or about 5 percent of its work force, and is looking at cuts elsewhere globally.

Schlumberger and other service companies have seen business fall off as crude prices have tumbled and producers large and small scale back operations.

Macy's will shutter 11 stores in 9 states

NEW YORK (AP) -- Department-store operator Macy's Inc. said Thursday it will close 11 underperforming stores in nine states -- affecting 960 employees -- and lowered its forecast for the fourth quarter after one of the weakest holiday seasons in years.

Stores slated to close include locations in Los Angeles, West Palm Beach, Fla., Nashville, Tenn., and St. Louis, among others. Cincinnati-based Macy's Inc. says the closures will cost about $65 million, most of which will be booked in the 2008 fourth quarter.

Clearance sales at the stores begin next week.

Strike, weaker demand hurt 2008 Boeing deliveries

PITTSBURGH (AP) -- Hurt by an autumn strike and shrinking airline demand, Boeing Co.'s passenger jet deliveries fell 15 percent in 2008, ensuring that archrival Airbus retained its rank as the world's top plane maker.

Orders for Boeing planes, meanwhile, plunged by more than half last year, following three straight years of exceptionally strong bookings.

Boeing, the world's second-largest plane manufacturer after Airbus, has blamed an eight-week strike by machinists and other production glitches for delaying the delivery of new jetliners.

Chevron sees lower profit in fourth quarter

HOUSTON (AP) -- Chevron Corp. says its fourth-quarter profit will be significantly lower than the prior quarter because of the big drop in oil prices.

After peaking above $147 a barrel in July, oil prices spent the remainder of 2008 falling dramatically. When the fourth quarter began Oct. 1, crude was trading at around $100 a barrel. Three months later, on Dec. 31, it settled at $44.60, a decline of nearly 60 percent.

During the first two months of the fourth quarter, Chevron said its crude oil price averaged $61.70 per barrel, a 45 percent drop from the $112.22 a barrel it realized for the entire third quarter.

By The Associated Press

The Dow Jones industrials fell 27.24, or 0.31 percent, to 8,742.46.

Broader stock indicators advanced. The Standard & Poor's 500 index rose 3.08, or 0.34 percent, to 909.73, and the Nasdaq composite index rose 17.95, or 1.12 percent, to 1,617.01.

Light, sweet crude for February delivery fell 93 cents to settle at $41.70 a barrel on the New York Mercantile Exchange. On Wednesday, prices tumbled more than 12 percent in the largest single-day percentage decline since September 2001.

In other Nymex trading, gasoline futures rose 1.18 cents to settle at $1.0882 a gallon. Heating oil fell 2.35 cents to settle at $1.5196 a gallon, while natural gas for February delivery tumbled 29 cents to settle at $5.583 per 1,000 cubic feet.

In London, February Brent crude fell $1.19 to settle at $44.67 a barrel on the ICE Futures exchange.