AP Business Highlights

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On Wednesday February 17, 2010, 5:49 pm EST

Toyota investigating Corolla steering problems

TOKYO (AP) -- Toyota Motor Corp. said Wednesday it's looking into complaints of power steering problems with its popular compact car and is considering a recall as one option. That would be another blow to the world's largest automaker grappling with a spate of safety lapses ranging from sticking gas pedals to braking problems.

President Akio Toyoda also said he's not going to Washington to appear at congressional hearings next week, preferring to leave that to his U.S.-based executives while he focuses on beefing up quality controls -- though he would consider attending if invited.

Toyoda promised a backup safety system in all future models worldwide that will override the accelerator if the gas and brake pedals are pressed at the same time.

Data on industry output, home building boost hopes

WASHINGTON (AP) -- Hopes that the economy can sustain its recovery drew support Wednesday from news that industrial ouput rose for a seventh straight month and home construction hit a six-month peak in January.

Analysts cautioned, though, that the gains in both sectors could falter if consumer demand weakens.

The report on industrial production from the Federal Reserve showed gains in all three major categories: manufacturing, mining and utilities. It was the first such collective show of strength since August. Manufacturing output rose 1 percent, led by a nearly 5 percent gain in auto production.

Stocks climb on upbeat earnings, economic reports

NEW YORK (AP) -- A stream of good news has the stock market back on an upward path.

Encouraging corporate and economic reports Wednesday added to hopes that a recovery is taking hold even as big concerns remain about unemployment and bursting budgets in countries like Greece.

Deere & Co. and Whole Foods Market Inc. jumped after their profit reports topped expectations and the companies raised their forecasts. Improved reports on home construction and production at factories also helped pull the market higher.

The Dow Jones industrial average rose 40 points to 10,309.24, a day after it jumped 170 following a stronger manufacturing figures. Treasury prices fell as demand for safe havens eased.

Walgreen buying NYC market leader Duane Reade

NEW YORK (AP) -- Walgreen Co. is looking to make itself an instant success in New York City -- where the nation's largest drug store chain has until now been just a bit player.

Walgreen announced plans Wednesday to buy privately held Duane Reade in a deal that will more than quadruple the number of stores it has in the metro area and make Walgreen the dominant player the biggest market in the country.

Walgreen, the nation's largest drugstore operator, agreed to would pay about $623 million for Duane Reade Holdings Inc., which is the biggest drugstore chain in the city, where it has operated for 50 years.

FTC: Don't be fooled by job-related scams

WASHINGTON (AP) -- The Federal Trade Commission said Wednesday that it is cracking down on con artists who target the unemployed with bogus job placement and work-at-home scams.

The consumer protection agency said it has asked federal courts to shut down seven entities charged with peddling such schemes and to freeze their assets.

The Justice Department has pursued criminal action in 44 additional cases and state attorneys general are pursuing 18 more, FTC officials said.

Deere says farm orders send 1Q profit up 19 pct

Deere & Co. boosted its outlook for 2010 Wednesday after an unexpected increase in agricultural orders helped drive first-quarter profit 19 percent higher.

Deere said lower costs and a roughly $75 million benefit from favorable currency rates also helped offset the "stubbornly weak" economy and 6 percent lower revenues.

The maker of iconic green and yellow machinery said it earned $243.2 million, or 57 cents per share, during the quarter that ended Jan. 31. That's up 19 percent from $203.9 million, or 48 cents per share a year ago. Analysts surveyed by Thomson Reuters expected profits of 19 cents on average, but Deere beat even the highest profit prediction of 38 cents per share.

Federal deficit at $430.69 billion through January

WASHINGTON ( AP) -- The federal deficit through the first four months of the budget year is running at a record-breaking pace even though the deficit in January was slightly smaller than expected.

The massive tide of red ink reflects the continued fallout from a deep recession and a severe financial crisis. It highlights the formidable challenges President Barack Obama will face in trying to get the deficit down to more manageable levels.

The Treasury Department said Wednesday that the deficit for January totaled $42.63 billion. That left the total of red ink so far this budget year at $430.69 billion, 8.8 percent higher than last year when the deficit soared to an unprecedented level of $1.42 trillion.

HP profit jumps 25 pct, company raises outlook

SAN JOSE, Calif. (AP) -- Hewlett-Packard Co.'s profit swelled 25 percent in the latest quarter because of cost-cutting and a stronger showing from its personal-computer division.

Revenue was up in most of the technology company's major divisions and HP raised its 2010 outlook, citing "accelerating market momentum."

The numbers show that technology spending by corporations is creaking back to life. HP is a bellwether because it is the world's biggest maker of PCs and printers. And HP's latest results are the first from a major tech company to include the full month of January.

Some Fed officials favor reeling in stimulus soon

WASHINGTON (AP) -- With the economy healing, Federal Reserve officials debated last month when to reel in the extraordinary stimulus aid they injected into the economy. Some officials wanted to start selling assets on the Fed's books "in the near future," documents released Wednesday show.

Selling assets would sop up some of the stimulus money and shrink the Fed's $2.2 trillion balance sheet. But many members expressed concern that such transactions could drive up interest rates and hurt the economic recovery.

Last week, Fed Chairman Ben Bernanke said he didn't expect any asset sales soon. The documents on the Fed's closed-door meeting last month pointed to divergent thoughts about the timing and tools to reverse course and start tightening credit.

Trade agency reviewing Kodak patent complaint

ROCHESTER, N.Y. (AP) -- A federal agency that oversees trade disputes said Wednesday it will investigate Eastman Kodak Co.'s patent-infringement complaint over digital-camera technology used in iPhones and BlackBerrys.

The U.S. International Trade Commission in Washington will weigh whether to block imports of the smart phones after Kodak alleged Apple Inc.'s iPhone and Research in Motion Ltd.'s camera-enabled BlackBerry models infringe on a 2001 patent covering ways to preview digital images.

Patent cases can take years to resolve, and agreements over licensing and royalty payments often emerge. But the trade commission is seen as a fast-track mediator that typically resolves disputes in 12 to 15 months.

By The Associated Press

The Dow rose 40.43, or 0.4 percent, to 10,309.24.

The Standard & Poor's 500 index rose 4.64, or 0.4 percent, to 1,099.51, while the Nasdaq composite index rose 12.10, or 0.6 percent, to 2,226.29.

Benchmark oil for March delivery added 32 cents to settle at $77.33 a barrel on the New York Mercantile Exchange.

In other Nymex trading in March contracts, heating oil increased 1.04 cents to settle at $2.0067 a gallon, and gasoline rose 1.89 cents to settle at $2.0071 a gallon. Natural gas gained 7.6 cents to settle at $5.386 per 1,000 cubic feet.

In London, Brent crude added 59 cents to settle at $76.27 a barrel on the ICE futures exchange.

 

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