Economic mixed bag: No inflation but little hiring

WASHINGTON (AP) — The picture of an economy growing modestly without producing inflation yet struggling to create jobs emerged from government reports.

The number of newly laid-off workers requesting jobless benefits fell slightly last week for the third straight time. But initial claims remain above levels that would signal net job gains.

In a separate report, the Labor Department said consumer prices were flat in February. Meanwhile, a private research group said its gauge of future economic activity rose just 0.1 percent in February, suggesting slow growth this summer. The gain in the Conference Board's index of leading economic indicators was the smallest in 11 months.

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Stocks end mixed after price, jobs reports

NEW YORK (AP) — Stocks ended mixed after reports signaled that the economy is slowly regaining strength.

The Dow Jones industrial average rose for an eighth straight day, its longest unbroken climb since August. The Dow gained 46 points to 10,779.17 while broader indexes were little changed.

Reports indicated that inflation remains in check, jobless claims are inching lower and manufacturing is growing.

Renewed concern about economic troubles in Greece kept the gains in check. The country said it might turn to the International Monetary Fund for support if European leaders can't agree to a bailout plan next week.

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FedEx sees economic recovery spreading

NEW YORK (AP) — FedEx says the global economic recovery is broadening, as the U.S. economy gains steam and Asia continues to show strong growth.

For the U.S., FedEx confirmed what economists have been saying and what government reports have been showing: Manufacturing is leading a slow economic recovery while consumers are keeping purse strings tight.

Last month, U.S. industrial production grew more than expected and the services sector accelerated at the fastest clip in more than two years. But consistently high unemployment and stagnant pay have so far held off any surge in consumer spending.

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Govt rewarded bank auditors with big bonuses

WASHINGTON (AP) — As banks gambled on the risky mortgages that helped create the worst financial crisis in generations, the U.S. government handed out millions of dollars in bonuses to regulators at agencies that missed or ignored warning signs that the system was on the verge of a meltdown.

The bonuses, detailed in payroll data released to The Associated Press, are the latest evidence of the government's false sense of security during the go-go days of the financial boom. Just as bank executives got bonuses despite taking on dangerous amounts of risk, regulators got taxpayer-funded bonuses for doing "superior" work monitoring the banks.

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Barnes & Noble makes CEO switch

NEW YORK (AP) — Barnes & Noble changed CEOs Thursday, elevating the president of its Web site to lead the company, a surprise move that highlights the importance of digital books to the bookseller's future.

The company said former CEO Steve Riggio will stay on as vice chairman and be actively involved with the company.

New CEO William Lynch helped launch the company's electronic book store and oversaw the introduction of its electronic book reader, the Nook. The company is counting on the technology on to boost sales and ward off intense competition from online retailers, discount stores and rival e-readers such as Amazon.com's Kindle.

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Pain in the tank: Gas prices highest since 2008

Motorists are paying the highest prices for gas since October 2008. Retail gasoline prices rose on Thursday on an expected increase in demand and as more expensive spring and summer blends of gasoline make their way to the pumps.

The nationwide average hit $2.799 per gallon, a penny higher than Wednesday, according to AAA, Wright Express and Oil Price Information Service.

Prices have now jumped 18.9 cents in the past month and are 87.9 cents higher than year-ago levels. Back on Oct. 23, 2008 prices averaged $2.8215 per gallon.

The Energy Department and many industry experts expect prices to top $3 this spring.

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Court records illuminate Viacom-YouTube battle

SAN FRANCISCO (AP) — YouTube co-founder Steve Chen once warned a fellow co-founder to stop posting pirated videos on their Web site, according to court documents unsealed Thursday as part of a 3-year-old copyright lawsuit against the online video leader.

That bit of intrigue was among the confidential information that had been kept under wraps since Viacom Inc. sued YouTube for alleged copyright infringement of "The Colbert Report, "The Daily Show" and other shows in a federal court in New York.

The newly released evidence also revealed that Viacom wanted to buy YouTube before getting beat out by Google Inc., which acquired the site for $1.76 billion in 2006. One Viacom executive even suggested a joint bid by Viacom and Google.

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Apple director, ex-auto executive York dies

DETROIT (AP) — Jerome York, an Apple Inc. board member and a financial wizard credited with turning around Chrysler and IBM, died Thursday of a brain aneurysm. He was 71.

He died at POH Regional Medical Center in Pontiac, Mich., after being taken there on Tuesday night.

York, who led an investigation of Apple's stock option practices, was a pillar of financial and business expertise, Apple Inc. CEO Steve Jobs said. Jobs said York joined Apple's board in 1997 when most people doubted the company's future; since then, the company has launched such highly successful products as the iPhone and the iPod.

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Greece: Will ask for IMF help if EU fails

BRUSSELS (AP) — Greece warned Thursday that it will be forced to turn to the International Monetary Fund if the EU can't agree to a bailout plan next week that will help reduce its market borrowing rates.

Greece is paying a high price to sell bonds because investors fear its massive budget gap this year could cause it to default on debt payments. It needs to borrow some euro54 billion ($74 billion) this year and euro20 billion of that in April and May.

Prime Minister George Papandreou said he expects European Union leaders to decide at a March 25-26 summit on a blueprint of aid from the 16 eurozone countries.

He said he wasn't asking for money but a clear mechanism for financial help in case Greece can't afford to borrow from markets.

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Porsche takes top spot in dependability study

NEW YORK (AP) — Porsche shot to the top of a closely watched study of long-term vehicle dependability, overtaking U.S. and Japanese rivals, J.D. Power and Associates said Thursday.

The German sports car brand took the No. 1 spot in the annual study, which gave it ninth place last year. Lincoln came in second, while Buick and Lexus tied for third. Mercury and Toyota rounded out the top five.

The annual study measures problems experienced by the original owners of vehicles after three years. In last year's study, Buick and Jaguar tied for fewest problems, but both brands lost ground to rivals this year.

By The Associated Press

The Dow rose 45.50, or 0.4 percent, to 10,779.17. That marks the highest close since Oct. 1, 2008. The Dow last rose for eight straight days in the period ended Aug. 27.

The broader Standard & Poor's 500 index slipped 0.38, or less than 0.1 percent, to 1,165.83, while the Nasdaq composite index rose 2.19, or 0.1 percent, to 2,391.28.

Benchmark crude prices fell 73 cents to settle at $82.20 a barrel on the New York Mercantile Exchange.

In other Nymex trading in April contracts, heating oil fell 2.04 cents to settle at $2.1127 a gallon, and gasoline dropped 0.88 cent to settle at $2.3009 a gallon. Natural gas slid 21.8 cents to settle at $4.085 per 1,000 cubic feet. Earlier, natural gas hit a new 52-week low of $4.054.

In London, Brent crude was down 48 cents to settle at $81.48 on the ICE futures exchange.