AP
Business Highlights
Friday March 6, 6:22 pm ET

Huge layoffs push joblessness toward double digits

WASHINGTON (AP) -- Tolling grimly higher, the recession snatched more than 650,000 Americans' jobs for a record third straight month in February as unemployment climbed to a quarter-century peak of 8.1 percent and surged toward even more wrenching double digits.

The human carnage from the recession, well into its second year, now stands at 4.4 million lost jobs. Some 12.5 million people are searching for work -- more than the population of the entire state of Pennsylvania.

No one seems immune: The jobless rate for college graduates has hit its highest point on record, just like the rate for people lacking high school diplomas.

Consumer borrowing rose unexpectedly in January

WASHINGTON (AP) -- Consumer borrowing rose unexpectedly in January after three months of declines, but the small increase did not shake economists' views that borrowing will remain weak this year as mass layoffs persist amid the recession.

The Federal Reserve said Friday that borrowing increased at an annual rate of $1.76 billion in the first month of the year. Economists expected borrowing to decline at a rate of $5 billion.

The small gain came mainly from the category that includes credit cards, which rose at a 1.2 percent rate in January after dropping 9.5 percent in December. The category that covers auto loans rose 0.6 percent after a smaller 0.1 percent rise in December.

GM shares reach 75-year low amid bankruptcy talk

NEW YORK (AP) -- General Motors Corp. shares fell to their lowest point in more than 75 years Friday, as investors fretted that the ailing automaker may be forced to file for bankruptcy protection despite government help.

GM shares hit a low of $1.27 in late morning trading before rebounding to close down 41 cent, or 22 percent, at $1.45.

The low point matched a low set May 4, 1933, according to the Center for Research in Security Prices at the University of Chicago. The price is adjusted for splits and other changes.

GM said in a statement Friday that it has not changed its intention to avoid a bankruptcy filing, and that an out-of-court restructuring remains its best option to survive the worst auto sales climate in 27 years.

Stocks end mixed after February jobs data

NEW YORK (AP) -- Investors have gotten used to bad news, but layoffs topping 600,000 a month still made for a volatile day on Wall Street.

Stocks soared, sank and then clawed their way back to a mixed close Friday after the Labor Department released its February jobs report. The Dow rose 32.50, or 0.5 percent, to 6,626.94.

Still, the major indexes remain down sharply for the week and near 12-year lows. The Dow Jones industrial average is down 6.2 percent for the week, and the Standard & Poor's 500 index is down 7 percent. Both have fallen more than 24 percent since the start of 2009.

H&R Block posts 3Q profit, beats expectations

KANSAS CITY, Mo. (AP) -- H&R Block Inc. is bracing for what could be a make-or-break final stretch of this year's income tax season.

The nation's largest tax preparer reported better-than-expected earnings for its fiscal third quarter Friday. But it also said the total number of tax returns prepared by its network of retail offices or through its online and TaxCut software products was down 1.8 percent through the end of February versus a year ago.

The retail offices, which generate the highest fees, saw a 3.9 percent decline from a year ago.

Roche raises price in hostile offer for Genentech

NEW YORK (AP) -- Swiss drug developer Roche boosted its hostile tender offer for biotechnology pioneer Genentech Inc. to $93 per share Friday, raising the total offer value to $45.7 billion, after its initial offer failed to pick up much support from shareholders.

For weeks, Genentech's board had been calling Roche's $86.50 bid too low, with much of Wall Street saying shareholders likely wouldn't bite at the offer. In its statement Friday, Roche said it received tenders for only 500,000 shares in the tender offer that was set to expire March 12, a tiny fraction of the 44 percent the company needs to take control of Genentech.

Wells Fargo slashes dividend, expects $5B savings

NEW YORK (AP) -- Following the lead of other major banks, Wells Fargo & Co. said Friday it will slash its dividend by 85 percent to shore up its capital base.

The bank, which is still digesting the acquisition of Wachovia Corp., said cutting its quarterly payout from 34 cents a share to 5 cents would result in $5 billion in annual savings.

Wells Fargo also disclosed improved mortgage lending figures for the first two months of the year and said it hoped to pay back $25 billion in government rescue funds as soon as possible. It also said it has identified ways to save an additional $2 billion a year.

Obama auto panel meets at White House

WASHINGTON (AP) -- The White House said Friday it was trying to determine "how to be the best partner" for the struggling U.S. auto industry as its auto task force met Friday to review the status of General Motors Corp. and Chrysler LLC.

Cabinet-level members of the panel, led by Treasury Secretary Timothy Geithner and White House economic adviser Larry Summers, were at the White House to review restructuring plans from GM and Chrysler, which are surviving on $17.4 billion in loans.

The government could recall its loans if GM and Chrysler fail to sign deals for debt restructuring and other concessions from stakeholders by March 31. GM and Chrysler are seeking $21.6 billion in additional financing to execute turnaround plans submitted last month.

Among chemical makers, Rohm & Haas a prized asset

NEW YORK (AP) -- When Dow Chemical swooped in last summer to buy a much-smaller rival, many believed the more-than $15 billion offer was too high with Wall Street barreling toward an economic meltdown and the mortgage crises in full swing.

Yet Dow Chemical Co. needed the stability that came with the products sold by Rohm & Haas, a specialty chemical maker that has carefully crafted a reputation as an industry leader for nearly 100 years.

Since that July bid, Dow's market capitalization -- or the total value of all its shares -- has fallen well below that of its target and even below its $15.4 billion offer for the Philadelphia-based company.

Whole Foods offers to settle FTC's buyout claims

AUSTIN, Texas (AP) -- Whole Foods Market Inc. will sell 13 stores to resolve the Federal Trade Commission's challenge of its $565 million purchase of Wild Oats Markets, the company said Friday.

Whole Foods is putting 12 Wild Oats stores and one Whole Foods store up for sale in Arizona, Colorado, Connecticut, Missouri, New Mexico, Nevada, Oregon and Utah.

The Austin, Texas-based company will also sell leases and assets of 19 Wild Oats stores that have closed.

Wells Fargo slashes dividend, expects $5B savings

NEW YORK (AP) -- Following the lead of other major banks, Wells Fargo & Co. said Friday it will slash its dividend by 85 percent to shore up its capital base.

The bank, which is still digesting the acquisition of Wachovia Corp., said cutting its quarterly payout from 34 cents a share to 5 cents would result in $5 billion in annual savings.

Wells Fargo also disclosed improved mortgage lending figures for the first two months of the year and said it hoped to pay back $25 billion in government rescue funds as soon as possible. It also said it has identified ways to save an additional $2 billion a year.

By The Associated Press

The Dow rose 32.50, or 0.5 percent, to 6,626.94. The S&P 500 index rose 0.83, or 0.12 percent, to 683.38, while the Nasdaq composite index fell 5.74, or 0.44 percent, to 1,293.85.

Light, sweet crude for April delivery rose $1.91 to settle at $45.52 Friday on the New York Mercantile Exchange.

In other Nymex trading, gasoline for April delivery rose 2 cents to settle at $1.3322 a gallon, while heating oil gained 7 cents to settle at $1.2294 a gallon. Natural gas for April delivery fell 14.3 cents to settle at $3.945 per 1,000 cubic feet.

In London, Brent prices rose $1.21 to settle at $44.85 on the ICE Futures exchange.