On Thursday February 25, 2010, 6:09 pm EST
Rising jobless claims reflect weakening
recovery
WASHINGTON (AP) -- Layoffs are no
longer dropping as they were in the final months of last year, reinforcing
fears that the jobs crisis will weigh down consumer spending and the economic
rebound.
Severe weather contributed to a rise in
jobless claims last week. But other economic data add to evidence that the
recovery remains weak and uneven.
An example is orders for big-ticket
manufactured goods, excluding airplanes and other transportation equipment.
Those orders dropped 0.6 percent in January, the government said Thursday.
Earlier in the week, new-home sales
fell in January to their lowest pace on record. And consumer confidence plunged
in February.
Fed to look into insurance contracts on
Greek debt
WASHINGTON (AP) -- Federal Reserve
Chairman Ben Bernanke told lawmakers Thursday that the central bank is looking
into the use by Goldman Sachs and other Wall Street firms of high-risk
financial instruments to make bets that Greece would default on its debt.
Bernanke said the Fed is examining
companies' use of credit default swaps, a form of insurance against bond
defaults. He made the comments at the start of a Senate Banking Committee
hearing. It marked the second day that the Fed chief has testified on Capitol
Hill about the economy.
He also repeated a message he delivered
Wednesday to the House Financial Services Committee: that record-low interest
rates are still needed to ensure the economic recovery lasts and to help
relieve high unemployment.
Stocks fall on renewed concerns about
economy
NEW YORK (AP) -- Stocks fell Thursday
but closed well off their lows as investors set aside some of their concerns
about Greece's rising debt.
The recovery came as the dollar pulled
back from an early spike. The dollar is seen as a safe investment. So its
retreat signals that by the end of the day, investors had lost some of their
fears about Greece's debt problems hurting other countries.
The Dow Jones industrial average closed
down 53 points at 10,321.03, after having fallen 188. Treasury prices, like the
dollar, rose as investors sought safety.
Coke to acquire bottler's North
American business
NEW YORK (AP) -- Coca-Cola plans to buy
the North American operations of its largest bottler in an effort to put more
new drinks on shelves more quickly to keep up with changing tastes.
The move comes just days before main
rival PepsiCo is expected to complete a similar deal.
The Coca-Cola deal marks a change in
strategy -- at least publicly -- for Coca-Cola Co., which has defended its
arrangement of being separate from its bottlers ever since PepsiCo announced
its $7.8 billion deal to buy its two biggest North American bottlers in August.
Toyota pledges to take safety `to the
next level'
WASHINGTON (AP) -- Toyota's chief
executive visited the assembly line at Toyota's largest North American
manufacturing plant Thursday and met with Transportation Secretary Ray LaHood,
repeating pledges he made to Congress this week to improve safety efforts.
Akio Toyoda told LaHood that the
world's top automaker would "advance safety to the next level" as it
tries to restore customer faith in its cars and trucks that has been badly
damaged by the recall of 8.5 million vehicles over safety concerns.
The recall has damaged Toyota's
reputation and the company is facing legal and PR problems on several fronts: a
criminal investigation by federal prosecutors in New York; a probe by the
Securities and Exchange Commission; and anger by U.S. dealerships in line to
repair potentially millions of recalled vehicles. Toyota is offering some
customers new reimbursements for rental cars and other expenses.
Former Madoff aide charged with cooking
books
NEW YORK (AP) -- Bernard Madoff's claim
to have pulled off his multibillion dollar swindle without assistance fell
apart further Thursday, as one of his longtime aides was charged with helping
him cook the books.
Daniel Bonventre, an accountant who
worked for Madoff since the late 1960s, was arrested early Thursday morning at
his home in Manhattan, authorities said. He faces conspiracy, securities fraud
and tax charges.
The 63-year-old was also sued Thursday
by the Securities and Exchange Commission. The SEC accused Bonventre of
falsifying records both to disguise Madoff's fraud and illegally enrich
himself.
Rates on 30-year home loans rise to
5.05 pct
WASHINGTON (AP) -- Rates for 30-year
home loans rose above the 5 percent threshold for the first time in three
weeks, but remained near historically low levels.
The average rate on a 30-year fixed
rate mortgage was 5.05 percent this week, up from 4.93 percent a week earlier,
mortgage finance company Freddie Mac said Thursday.
Rates had dropped to a record low of
4.71 percent in December, pushed down by an aggressive government campaign to
reduce consumers' borrowing costs.
Freddie Mac collects mortgage rates on
Monday through Wednesday of each week from lenders around the country. Rates
often fluctuate significantly, even within a given day, often in line with
long-term Treasury bonds.
Kohl's 4Q profit rises on solid sales
NEW YORK (AP) -- Kohl's Corp. saw
higher profit and solid sales in the fourth quarter as the department store
operator attracted more customers who took advantage of its value-priced
store-label brands, but still spent less per trip.
The chain, known for its moderately
priced products, also gave a full-year earnings prediction within range of Wall
Street's expectations. But its first-quarter earnings guidance was below
analysts' views, and it offered a cautious sales outlook for the year amid an
uncertain economy. Shares rose $2.49, almost 5 percent, to $54.08 as results
beat Wall Street forecasts.
"Demand will continue to be weak
throughout 2010" and sales will be fueled by taking market share away from
rivals, Kevin Mansell, Kohl's president, chairman and CEO told investors,
sounding the same theme offered by other major retailers this week.
Fidelity's 2009 profit rises 5 percent
BOSTON (AP) -- Fidelity Investments
said Thursday its operating profit rose 5 percent last year, boosted in part by
job cuts, as revenue continued to lag after two years of unusual volatility in
financial markets.
The nation's largest mutual fund
company also saw fund performance improve.
Fidelity is privately held and doesn't
report quarterly financial numbers. But the Boston company said in its annual
report that its operating income last year was $2.51 billion, excluding
interest expenses and taxes.
That's up from $2.39 billion in 2008,
when sharply declining markets eroded the value of assets that Fidelity and
rival fund companies rely on for management fee income.
Oil prices tumble on economy worries
Oil prices tumbled Thursday on new
signs that the economy remains weak and that demand for crude is still tepid at
best.
Benchmark crude for April delivery fell
$1.83 to settle at $78.17 a barrel on the New York Mercantile Exchange.
Oil has been bouncing back and forth
for months between $70 and $80 as investors watch economic data for clues about
where the economy is heading following the Great Recession.
The signs Thursday were mostly negative
as the government said new claims for unemployment benefits last week jumped
unexpectedly while a separate report on big-ticket manufactured goods was
mixed.
By The Associated Press
The Dow fell 53.13, or 0.5 percent, to
10,321.03.
The broader Standard & Poor's 500
index slipped 2.30, or 0.2 percent, to 1,102.94. The Nasdaq composite index
fell 1.68, or 0.1 percent, to 2,234.22.
Benchmark crude for April delivery fell
$1.83 to settle at $78.17 a barrel on the New York Mercantile Exchange.
In other Nymex trading in March
contracts, heating oil fell 5.59 cents to $1.9862 a gallon, and gasoline lost
6.19 cents at $2.0370 a gallon. April natural gas prices were down 9.2 cents to
$4.767 per 1,000 cubic feet.
In London, Brent crude gave up $1.80 at
$76.29 on the ICE futures exchange.