AP
Business Highlights
Wednesday January 21, 6:44 pm ET

Financial, tech stocks lead Wall Street higher

NEW YORK (AP) -- Wall Street snapped back Wednesday from a steep sell-off the day before with a rebound in the same financial stocks that were pummeled on Tuesday.

Upbeat comments from banks, stronger-than-expected results from IBM Corp. and hopes that Washington will offer more help to the economy powered a rally that recovered most of the previous session's losses.

The Dow Jones industrials surged nearly 280 points and all the major indexes rose more than 3.5 percent. Some bounce would have been expected after the Dow tumbled 332 points Tuesday, but forecasts from PNC Financial Services Group Inc. and Bank of New York Mellon eased concerns that the troubles at financial giants like Citigroup Inc. were hitting all banks.

Parsons to become chairman at Citigroup

NEW YORK (AP) -- Citigroup Inc. said Wednesday that board member Richard Parsons -- the former CEO of Time Warner -- will be taking over as chairman.

Parsons succeeds Win Bischoff, who became chairman in December 2007 after the company let go of its embattled CEO and chairman at the time, Charles Prince. The move is effective Feb. 23.

Bischoff is not putting himself up for re-election at the board's annual meeting this spring, and will retire later this year, Citigroup said.

GM falls behind Toyota in annual global sales

NEW YORK (AP) -- Toyota Motor Corp. sold more cars and trucks worldwide than any other automaker last year, seizing the crown General Motors Corp. held for 77 years. But with its overall sales having fallen for the first time in 10 years and the entire industry mired in a slump, there's little for the Japanese company to celebrate.

GM said Wednesday it sold 8,355,947 cars and trucks around the world in 2008, falling about 616,000 vehicles short of the 8.972 million Toyota announced Tuesday. GM said the shortfall was mainly caused by the economic downturns in the U.S. and Europe that slashed vehicle demand in those major markets, where Toyota doesn't have as large of a presence.

Apple beats Street in holiday quarter; shares soar

By The Associated Press

Apple Inc. said Wednesday its profit in the holiday quarter edged up 2 percent and beat Wall Street's expectations, buoyed in part by growing iPod sales outside the U.S.

The iPod and iPhone maker's predictions for the current quarter came in lower than analysts were predicting, but investors seemed happy to focus on the results rather than the forecast. In extended trading after the report was released, Apple's shares jumped $9.83, or 12 percent, to $92.66.

In a conference call, Apple gave no new details on the health of Chief Executive Steve Jobs, but Tim Cook, the chief operating officer who is handling day-to-day operations in Jobs' absence, attempted to assure analysts that Apple will continue to do well no matter who's in charge.

Geithner apologizes for taxes, moves toward OK

WASHINGTON (AP) -- Timothy Geithner apologized to Congress Wednesday for what he called "careless mistakes" in failing to pay $34,000 in taxes and moved closer to confirmation as treasury secretary and the Obama administration's point man in reviving the economy.

While some Republican lawmakers questioned whether Geithner was being forthright in the explanation of his tax errors, he appeared to have sufficient support to win approval from the Senate Finance Committee.

Committee Chairman Max Baucus, D-Mont., scheduled a committee vote for Thursday with new Obama administration hoping the nomination can quickly be approved by the full Senate so that Geithner can assume his role in dealing with the worst financial crisis since the Great Depression.

Intel to cut jobs as it consolidates manufacturing

SANTA CLARA, Calif. (AP) -- Intel Corp. said Wednesday it is consolidating its manufacturing operations as a part of a restructuring bid that will affect thousands of jobs from the U.S to the Philippines.

Between 5,000 and 6,000 employees will be affected, though some may be offered posts at other facilities, the company said.

The world's largest chip maker is closing two assembly test facilities in Penang, Malaysia and one in Cavite, Philippines and will halt production at a plant in Hillsboro, Ore. It will also end wafer production at a facility in Santa Clara, Calif. All five are older factories, the company said.

AMR, UAL report 4Q losses, shares plunge

DALLAS (AP) -- The major U.S. airlines have grounded aircraft and eliminated flights, but those moves might not be enough in the face of a recession that is choking demand for air travel. Their struggles, however, could be working to the benefit of consumers.

Carriers American Airlines and United Airlines said Wednesday that they lost more money in the fourth quarter. United parent UAL Corp. lost $1.3 billion, hurt by a wrong bet on the direction of oil prices. The company plans to cut 1,000 more jobs.

Airline stocks tumbled, pushed lower by a bump in oil prices.

Shares of American parent AMR Corp. plunged $2.48, or 23.7 percent, to $7.98, as airline officials said advance bookings were weak, especially for March. UAL shares sank 71 cents or 6.1 percent, to $10.91.

US Bancorp 4Q profit falls on higher credit costs

NEW YORK (AP) -- U.S. Bancorp shares hit a 12-year low on Wednesday after the Minneapolis-based bank reported a 72 percent drop in earnings in the final three months of last year -- its eighth-straight quarterly profit decline.

Despite the bank's reassurances that it does not plan to raise capital, nor seek additional government assistance, analysts are concerned that credit costs will remain high through 2009.

Investors have grown increasingly fearful in recent weeks that banks will need more government assistance as loan losses continue to climb. The government has already pumped $250 billion into the financial sector through preferred stock purchases, and has been forced to provide Citigroup Inc. and Bank of America Corp. with $20 billion in extra aid apiece.

EBay 4Q profit and revenue fall amid recession

NEW YORK (AP) -- Quarterly earnings fell 31 percent at eBay Inc., indicating that its Internet auctions are being hurt by the recession just like traditional retail sales. The results, combined with a forecast below analysts' expectations, sent eBay shares skidding nearly 6 percent.

San Jose, Calif.-based eBay said Wednesday it earned $367 million, or 29 cents per share, in the quarter. That fell from $531 million, or 39 cents per share, in the year-ago quarter.

Excluding one-time items in the most recent period, eBay earned 41 cents per share -- 2 cents higher than the prediction of analysts polled by Thomson Reuters.

Best Buy taps president and COO Dunn as new CEO

CHICAGO (AP) -- Best Buy Co. Inc. laid out a succession plan Wednesday, saying Brian J. Dunn, its president and chief operating officer, will take over this summer as chief executive of the nation's largest consumer electronics chain.

The 48-year-old, who began working at the company as a store clerk in 1985, will succeed retiring CEO Brad Anderson, 59.

The Richfield, Minn.-based retailer said Dunn also will be named to its board of directors and stand for election at the 2010 meeting of shareholders.

The changing of the guard comes at a particularly crucial time for the chain, which last month began offering voluntary severance packages to virtually all its 4,000 corporate employees as falling sales plague retailers across the country.

By The Associated Press

The Dow Jones industrial average rose 279.01, or 3.51 percent, to 8,228.10.

Broader stock indicators also gained. The Standard & Poor's 500 index advanced 35.02, or 4.35 percent, to 840.24, and the Nasdaq composite index rose 66.21, or 4.60 percent, to 1,507.07.

Light, sweet crude for March delivery rose $2.71 to settle at $43.55 a barrel on the New York Mercantile Exchange.

In other Nymex trading, gasoline futures rose 3 cents to settle at $1.1738 a gallon. Heating oil rose a penny to settle at $1.386 a gallon while natural gas for February delivery rose 13.8 cents to settle at $4.78 per 1,000 cubic feet.

In London, the March Brent contract rose $1.40 to settle at $45.02 on the ICE Futures exchange.