Retail sales rise unexpectedly in January
WASHINGTON (AP) --
But higher gasoline prices and sales, and buyers snapping up other
items on post-holiday discounts appeared to aid last month's results. Analysts
cautioned that the relief is unlikely to last.
The Commerce Department reported Thursday that January retail
sales rose 1 percent from December after having fallen for six straight months.
Wall Street economists surveyed by Thomson Reuters had expected January sales
to show a drop of 0.8 percent. They plunged a revised lower 3 percent in
December, which marked the weakest holiday selling season since at least 1969.
Lawmakers bargain into overtime on stimulus bill
WASHINGTON (AP) -- Reluctant to call it quits, key lawmakers
bargained into overtime Thursday on the $790 billion economic stimulus
legislation, dickering over tax cuts and federal spending before reaching an
apparent final agreement more than 24 hours after announcing a deal.
Lingering controversy over school-modernization money, a
scaled-back tax break for businesses and other issues forced a delay in final
votes on the legislation. But Democratic leaders still hoped for final passage
by the weekend.
Republicans, lined up to vote against the bill, piled on the
scorn.
President Barack Obama delivered what has become a daily call for
congressional action.
New jobless claims drop slightly to 623K
WASHINGTON (AP) -- Nearly 5 million Americans continued to draw
jobless benefits late last month, and new requests again exceeded 600,000 as
companies lay off scores of workers amid a deepening recession.
The Labor Department said Thursday that the number of initial
jobless benefit claims dropped to a seasonally-adjusted 623,000, from an
upwardly revised figure of 631,000 the previous week. The latest tally still
was above analysts' expectations of 610,000 claims.
And in a sign that laid-off workers are having difficulty finding
new work, the number of people claiming benefits for more than one week rose to
4.81 million from 4.78 million, the highest total since records began in 1967.
Gregg withdraws as commerce secretary nominee
WASHINGTON (AP) -- Republican Sen. Judd
Gregg of New Hampshire abruptly withdrew his nomination as Commerce secretary
Thursday, the third Cabinet-level pick scuttled and the latest political
stumbling block in Barack Obama's young presidency.
The about-face left Obama without a full team to lead the government.
Obama's first choice for Commerce secretary, New Mexico Gov. Bill
Richardson, took his name out of consideration amid a federal investigation
dealing with state contracts in
Stocks mixed after report of mortgage subsidies
A Reuters report that the government
plans to subsidize troubled homeowners' mortgage payments helped the Dow Jones
industrial average pare sharp losses Thursday afternoon and finish down less
than 7 points. The Federal Housing Finance Agency declined to comment on the
report.
The idea of targeted help for homeowners impressed investors more
than the government's $789 billion economic stimulus package and its revised
plan to bail out problem banks.
Administration weighs plan to lower mortgage rates
WASHINGTON (AP) -- The Obama
administration is considering spending taxpayer dollars to lower mortgage rates
for borrowers on the verge of foreclosure, according to two people briefed on
the plan.
The details of the government's plan were not final. But they are
expected to be unveiled in the coming weeks as part of a plan to spend $50
billion on foreclosure prevention and establish national standards for
modifying home loans.
Those briefed on the plan spoke on condition of anonymity because
the details were not yet complete.
Fed: Americans' net worth hammered by recession
WASHINGTON (AP) -- The recession has cut many
Americans' net worth by about 20 percent as the value of homes, stock
portfolios and businesses have plummeted, the Federal Reserve said Thursday.
The Fed said the average net worth of American households plunged
22.7 percent since the recession began in December 2007 through October, when
the report was prepared. The median net worth, or the midpoint between the
wealthiest and poorest, fell 17.8 percent.
The impact has disproportionately fallen on the wealthiest
households and those between the ages of 55 and 64, a Federal Reserve economist
said. Net worth tends to peak in that age bracket, as retired Americans begin
to spend down their savings.
Charter Communications to file Chapter 11
PHILADELPHIA (AP) -- Struggling Charter Communications Inc., the
nation's fourth largest cable operator, said Thursday that it plans to file a
prearranged Chapter 11 bankruptcy by April 1.
Charter, which is controlled by Microsoft Corp. co-founder Paul
Allen, said it has reached an agreement in principle with holders of $8 billion
in debt who will give up repayment of their debt. In return, they will receive
common shares, or warrants for rights to get common shares, that translate to
nearly owning the entire company after bankruptcy.
Allen will remain as an investor and retain the largest voting interest
in Charter.
Coca-Cola 4Q profit down on charges, strong dollar
NEW YORK (AP) -- Coca-Cola Co. said Thursday that its
fourth-quarter profit fell 18 percent as it felt the effect of the stronger
dollar and took several write-downs, but the world's largest soft drink maker
sold more of its products around the world.
The results -- including a 4 percent increase in worldwide case
volume -- beat Wall Street estimates, and Coca-Cola's shares rose 7.6 percent
to end at $44.39.
The seller of Sprite, Fanta, VitaminWater, Minute Maid orange juice and Nestea also
plans to accelerate spending cuts and said it will save $500 million a year by
2011.
Viacom 4Q profit falls amid recession
LOS ANGELES (AP) -- Viacom Inc., the media conglomerate
controlled by Sumner Redstone, said Thursday its fourth-quarter profit fell 69
percent as the recession hurt advertising, home entertainment and video game
revenue and it recorded $454 million in charges.
The owner of the MTV, Nickelodeon and Comedy Central cable
networks and the
Excluding charges for programming write-downs and restructuring
related to the reduction of 850 jobs, or 7 percent of its work force, in
December, New York-based Viacom earned 76 cents per share.
Oil tumbles below $34 a barrel on economic fears
COLUMBUS, Ohio (AP) -- Oil prices slid to a new low for the year
Thursday because of growing doubts that the $789 billion stimulus package will
reinvigorate the economy and demand for energy.
Crude supplies in the
Retail gas prices, meanwhile, reached a new high for 2009 on
Thursday and appeared headed back to $2 a gallon as refiners cut back on
production.
Jury finds against tobacco company in
smoker death
FORT LAUDERDALE, Fla. (AP) -- A jury decided Thursday that a
longtime chain-smoker's death from lung cancer was caused by nicotine
addiction, a potentially costly loss for tobacco giant Philip Morris and an
important test case for thousands of similar Florida lawsuits.
The lawsuit by Elaine Hess, widow of Stuart Hess, is the first of
about 8,000 such cases to go to trial since the
The state's high court upheld the conclusion that tobacco
companies knowingly sold dangerous products and concealed smoking's health
risks, but ruled each case must be proven individually. Now the case will
proceed to the liability and damages phases.
By The Associated Press
The Dow Jones industrial average slipped 6.77, or 0.09 percent,
to 7,932.76, after falling by more than 245 points in earlier trading. The
blue-chip index got within 142 points of its Nov. 20 close of 7,552.29, which
was a five-and-a-half year low.
Broader stock indicators ended higher. The Standard & Poor's
500 index rose 1.45, or 0.17 percent, to 835.19, and the Nasdaq composite index rose 11.21, or 0.73 percent,
to 1,541.71.
Light, sweet crude for March delivery tumbled $1.96, more than 5
percent, to settle at $33.98 a barrel on the
In other Nymex trading, gasoline
futures fell 1.15 cents to settle at $1.2583 a gallon. Heating oil rose less than a penny to settle at $1.3218 a gallon while
natural gas for March delivery fell 4.7 cents to settle at $4.485 per 1,000
cubic feet.
In