Toyota halts sales of 8 recalled
vehicle models WASHINGTON (AP) -- Toyota is suspending
U.S. sales of eight recalled vehicle models to fix accelerator pedals that
stick. As part of the plan, Toyota is halting
production at five manufacturing facilities for the week of Feb. 1 "to
assess and coordinate activities." There are 2.3 million vehicles involved
in the recall, which was announced last week. The Japanese automaker says the sales
suspension includes the 2009-2010 RAV4, the 2009-2010 Corolla, the 2009-2010
Matrix, the 2005-2010 Avalon, the 2007-2010 Camry, the 2010 Highlander, the
2007-2010 Tundra and the 2008-2010 Sequoia. Consumer Confidence Index climbs in
Jan. CHICAGO (AP) -- Americans' confidence
in the economy improved modestly in January for the third straight month, as
they begin to feel slightly better about business conditions and the job
picture, according to a survey released Tuesday. The Conference Board's Consumer
Confidence Index increased to 55.9 -- the highest in more than a year but still
relatively gloomy. That compares with 53.6 in December. January's index was better than the
expected 53.5 forecast by economists. Economists watch confidence numbers
closely because consumer spending accounts for about 70 percent of U.S.
economic activity. It takes a reading of 90 to indicate an economy on solid
footing and 100 or more to indicate growth. GM to sell Saab to Dutch carmaker
Spyker for $74M DETROIT (AP) -- Saab got a new life
Tuesday as General Motors Co. agreed to sell the Swedish car brand to the small
Dutch luxury carmaker Spyker Cars NV. Under the deal, GM will get $74 million
in cash plus $326 million worth of preferred shares in Saab. GM will get
"other considerations," which it did not specify. The Swedish
government is also ready to guarantee a loan of up to 4 billion kronor ($550 million)
from the European Investment Bank, Industry Minister Maud Olofsson said. The deal is a coup for Spyker and a
lifeline for Saab, which has lost money for years under GM's ownership and was
slated for liquidation. Saab has around 3,500 employees in Sweden. Stocks give up advance as financial
stocks slide NEW YORK (AP) -- Stocks gave up a
healthy advance and closed slightly lower Tuesday as investors suffered another
bout of anxiety over President Barack Obama's plan to regulate banks. The Dow Jones industrial average, up 90
points in the early afternoon, closed with a loss of 2.57. The other major
indexes were also down modestly. Uneasiness about Obama's plan to limit
the size and trading operations of big banks pulled financial stocks and then
the entire market lower. News reports that Paul Volcker, the head of the
President's Economic Recovery Advisory Board, would testify about the plan
before Congress next week, contributed to the market's turnaround. The drop was the market's fifth in
seven days, and the fact that it came shortly before the closing bell showed
how uneasy investors are; last-hour pullbacks were the hallmark of a troubled
market during the financial crisis of 2008. Verizon posts 4Q loss on $3B in layoff
costs NEW YORK (AP) -- Verizon Communications
Inc. on Tuesday posted an unusual loss for the fourth quarter, as a charge for
layoffs in its shrinking landline business overshadowed the growing, and
profitable, wireless business. And even the wireless business ran into
trouble, as tough competition cut into Verizon's profit margins. Verizon CEO Ivan Seidenberg told
analysts on a conference call that the company continues to feel the effect of
the economic downturn, particularly in selling service to businesses. The nation's second-biggest phone
company lost $653 million, or 23 cents per share, in the last quarter. In the
same period a year earlier it had a profit of $1.24 billion, or 43 cents per
share. Delta posts small loss for fourth
quarter ATLANTA (AP) -- Delta Air Lines Inc.'s
corporate travel demand is picking up, its trans-Atlantic business has
rebounded and it is holding its own in Asia as it closes the books on a
turbulent 2009. The world's biggest airline on Tuesday
posted a $25 million loss for the final three months of the year. That's an
improvement from the $1.4 billion loss it posted a year earlier. Delta hopes for a boost in 2010 from
the economic recovery, as it looks to expand its presence in New York and Asia.
Delta expects a government decision by early February on a deal between it and
US Airways to swap some takeoff and landing slots involving New York's
LaGuardia Airport. Delta also wants to bring Japan Airlines into its SkyTeam
alliance. Delta wouldn't say when it expects to hear if JAL plans to dump its
alliance with American Airlines and join SkyTeam. Berkshire will replace BNSF in S&P
stock indexes OMAHA, Neb. (AP) -- Standard &
Poor's will add Warren Buffett's Berkshire Hathaway Inc. to its S&P 100 and
S&P 500 indexes after Berkshire acquires Burlington Northern Santa Fe. S&P announced the stock index
changes Tuesday. Buffett's company will replace BNSF in both indexes after
shareholders approve Berkshire's acquisition of the railroad company next
month. Berkshire shareholders agreed to split
the company's Class B stock 50-for-1 last week, and that move gave Buffett's
company enough liquidity to meet S&P's criteria. Berkshire shares jumped in after-hours
trading. Borders Group CEO Marshall leaves for
another job NEW YORK (AP) -- Borders Group Inc., the
No. 2 traditional U.S. bookseller, said Tuesday its CEO Ron Marshall is leaving
after about a year with the company to accept the CEO post at another retailer
Borders didn't name. Marshall's departure leaves Borders
scrambling to find its fourth CEO in five years and follows a disappointing
holiday season and three straight quarterly losses. Borders named Marshall as CEO and
president last January to replace George Jones. Marshall, founder of private
equity firm Wildridge Capital Management, was hired for his turnaround skills,
having been involved in other turnaround projects as CEO of food distributor
and retailer Nash Finch Co. and as chief financial officer of Pathmark Stores
Inc., now a unit of the Great Atlantic & Pacific Tea Co. Home prices rise for 6th straight month
in Nov. MIAMI (AP) -- Home prices rose for the
sixth straight month in November, fueled by tax credits for homebuyers. The Standard & Poor's/Case-Shiller
20-city home price index released Tuesday inched up 0.2 percent to a seasonally
adjusted reading of 145.49. The index was off 5.3 percent from November last
year, nearly matching analysts' estimates that it would fall by 5.1 percent. Fourteen of 20 cities in the index
showed gains from October to November. The index is now up more than 3 percent
from its bottom in May, but still 30 percent below its May 2006 peak. S&P lowers Japan credit rating
outlook TOKYO (AP) -- Standard & Poor's
lowered its assessment of Japan's fiscal health Tuesday, threatening a credit
rating cut if the economy stays weak and debt remains sky high. In a surprise move, S&P affirmed
the country's "AA" long-term debt rating but revised its outlook to
"negative" from "stable." Japan shoulders the biggest public debt
burden among industrialized countries and S&P predicts the country's debt
will balloon to 115 percent of gross domestic product over the next several
years. Yahoo 4Q earnings top analyst views as
slump eases SAN FRANCISCO (AP) -- Yahoo Inc. moved
further down the road to recovery in the fourth quarter as online advertising
began to snap out of a yearlong stupor to ease the Internet company's
long-running slump. The results released Tuesday
represented Yahoo's best performance since the company hired Silicon Valley
veteran Carol Bartz as chief executive a year ago. Bartz has been vowing since
her arrival to engineer a turnaround that eluded her two predecessors, Terry
Semel and Jerry Yang. Bartz, 61, still has her work cut out
for her, but at least Yahoo is turning more profitable because of mass layoffs
and other cost cutting orchestrated by the new management team. By The Associated Press The Dow fell 2.57, or less than 0.1
percent, to 10,194.29. The Standard & Poor's 500 index slid 4.61, or 0.4
percent, to 1,092.17. The Nasdaq composite index dropped 7.07, or 0.3 percent,
to 2,203.73. Benchmark crude for March delivery fell
55 cents to settle at $74.71 a barrel on the New York Mercantile Exchange.
Earlier in the session, it dropped as low as $74.14. In other Nymex trading in February
contracts, heating oil lost 1.5 cents to settle at $1.9508 a gallon, while
gasoline dropped 3.34 cents to settle at $1.9674 a gallon. February natural gas
futures fell 23.7 cents to settle at $5.485 per 1,000 cubic feet. In London, Brent crude for March
delivery gave up 40 cents to settle at $73.29 a barrel on the ICE Futures
exchange.