AP
Business Highlights
Friday February 6, 6:40 pm ET

Jobless rate 7.6 pct; 598K job cuts most since '74

WASHINGTON (AP) -- Recession-battered employers eliminated 598,000 jobs in January, the most since the end of 1974, and catapulted the unemployment rate to 7.6 percent. The grim figures were further proof that the nation's job climate is deteriorating at an alarming clip with no end in sight.

The Labor Department's report, released Friday, showed the terrible toll the drawn-out recession is having on workers and companies. It also puts even more pressure on Congress and President Barack Obama's administration to revive the economy through a stimulus package and a revamped financial bailout plan, both of which are nearing completion.

Consumer credit falls more than expected in Dec.

WASHINGTON (AP) -- Consumer borrowing fell for a third straight month in December, the longest stretch in 17 years, as households cut spending amid a steep recession and rising job layoffs.

The Federal Reserve said Friday that consumer borrowing dropped at an annual rate of 3.1 percent in December. The $6.6 billion decline was nearly double what analysts expected. It followed an $11 billion drop in November that was the biggest monthly plunge on record going back to 1943.

Wall Street shrugs off January job losses of 598K

NEW YORK (AP) -- Wall Street has had another big rally as investors bet the government will take some big steps to help the economy.

All the major indexes rose more than 2 percent Friday, including the Dow Jones industrial average, which rose more than 200 points as investors looked past another bleak jobs report and awaited word from Washington about an economic stimulus plan and changes to the government's financial rescue program.

The Dow industrials rose 217.52, or 2.70 percent, to 8,280.59.

Oil near $40 again on dismal jobs report

NEW YORK (AP) -- Oil prices sank below $41 a barrel Friday as the government reported that U.S. employers slashed more than a half million jobs last month, the most in 35 years.

Light, sweet crude for March delivery dropped a dollar to settle at $40.17 a barrel on the New York Mercantile Exchange. Retail gas prices rose to almost $2 a gallon as refineries took units temporarily off-line for seasonal maintenance.

Oil traders see layoffs as an instant drag on oil demand. People have less need for gasoline when they no longer have a daily commute. They also stop buying toys, nonstick pans, raincoats and millions of other products that are made with petroleum.

Delphi seeks to end health benefits for retirees

DETROIT (AP) -- Troubled auto parts supplier Delphi Corp. has asked a bankruptcy judge to allow it to cancel health care and life insurance benefits for current and future salaried retirees, citing the steep downturn in the overall auto industry in recent months.

The request filed Wednesday with U.S. Bankruptcy Court in New York seeks to cut those benefits to 15,000 salaried retirees as soon as April 1. The Troy, Mich.-based company said the moves would save about $70 million annually, or $200 million through 2011.

Cutting the benefits also would allow Delphi to reduce its balance sheet liabilities by $1.1 billion, the company said.

Toyota sees first annual loss since 1950

TOKYO (AP) -- Toyota forecast its first annual loss since 1950 on Friday as plunging demand for cars, especially in the U.S., and the strong yen pummeled earnings at the world's No. 1 automaker.

Toyota Motor Corp. reported a 164.7 billion yen ($1.8 billion) loss for the October-December quarter, down sharply from the 458.6 billion yen profit for the same period the previous year. Quarterly sales plunged 28.4 percent to 4.8 trillion yen.

Joining a string of Japanese companies that are now expecting to slide into the red for the year, Toyota said it expects a loss of 350 billion yen ($3.85 billion) for the fiscal year through March -- a stunning reversal from the record 1.72 trillion yen profit it posted the previous year.

Obama says jobless numbers demand action

WASHINGTON (AP) -- President Barack Obama decried as "inexcusable and irresponsible" the delay of his economic recovery legislation in Congress with an estimated 3.6 million Americans losing their jobs since the recession began.

Obama's remarks were some of his most direct and pointed in support of the massive economic package that the Senate considered Friday and tried to pare down below its $900-billion-plus price tag. Obama acknowledged it was not perfect and pledged to work with lawmakers to refine the measure, which he called "absolutely necessary."

Weyerhaeuser 4Q loss balloons to $1.2B

NEW YORK (AP) -- Weyerhaeuser Co. said Friday its fourth-quarter loss ballooned to more than $1 billion as the rapidly deteriorating U.S. housing market forced the timber and wood products company to book a massive charge and write down other assets.

The Federal Way, Wash.-based company, which builds houses and makes pulp and wood panels from trees it grows on more than 6 million acres, is facing its most challenging environment in a generation.

The company's loss amounted to $5.73 per share in the three months ended Dec. 31. It reported a loss of $63 million, or 30 cents per share, in the year-earlier period.

Biogen's 4Q profit grows as Icahn makes power play

NEW YORK (AP) -- Activist investor Carl Icahn made another power play for Biogen Idec Inc. Friday as the company said its fourth-quarter profit edged up 3 percent and 2009 results could top expectations.

Icahn made a failed attempt at placing three nominees on the company's board of directors last June.

This time around, Icahn also is trying to place three nominees on the board, including two from the prior shareholder rejection, while expanding its membership to 13 from 12.

BofA CEO Lewis buys nearly $1 million more shares

CHARLOTTE, N.C. (AP) -- In his latest move to show support for his bank, Bank of America Corp. Chief Executive Ken Lewis spent almost a million dollars this week to buy additional shares of his struggling bank.

He also told employees in a memo that the bank's board "unanimously endorsed our business model, strategic direction and the team," at its regular meeting on Jan. 28.

And Lewis reiterated the strength of his company, saying in an interview with CNBC on Friday that Bank of America would not need additional funding from the federal government and it still believes its acquisition of brokerage Merrill Lynch & Co. was the right thing to do.

By The Associated Press

The Dow industrials rose 217.52, or 2.70 percent, to 8,280.59.

Broader stock indicators also jumped. The Standard & Poor's 500 index rose 22.75, or 2.69 percent, to 868.60, and the Nasdaq composite index rose 45.47, or 2.94 percent, to 1,591.71.

The Russell 2000 index of smaller companies rose 15.62, or 3.43 percent, to 470.70.

Light, sweet crude for March delivery dropped a dollar to settle at $40.17 a barrel on the New York Mercantile Exchange.

In other Nymex trading, gasoline futures fell 2.41 cents to settle at $1.2507 a gallon. Heating oil dropped 0.74 cent to settle at $1.3598 a gallon, while natural gas for March delivery rose 13.2 cents to settle at $4.774 per 1,000 cubic feet.

In London, the March Brent contract gave up 25 cents to settle at $46.21 on the ICE Futures exchange.