AP Business Highlights

  • Wednesday March 25, 2009, 6:35 pm EDT

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Durable goods orders, new home sales rise in Feb.

WASHINGTON (AP) -- Orders to U.S. factories for big-ticket manufactured goods and new homes sales both rose unexpectedly in February, but economists said the gains were unlikely to last as the recession persists.

The Commerce Department said Wednesday that orders for durable goods -- manufactured products expected to last at least three years -- increased 3.4 percent last month, much better than the 2 percent fall economists expected. It was the first advance after a record six straight declines and the strongest one-month gain in 14 months.

February new home sales rise unexpectedly

WASHINGTON (AP) -- It was the second-worst month on record for sales of new homes. But last month still brought a long-awaited shred of good news for the battered building industry.

The Commerce Department said sales rose 4.7 percent in February to a seasonally adjusted annual rate of 337,000 from an upwardly revised January figure of 322,000. Even after the revision to January's sales results, that month remained the worst on records dating back to 1963.

Stocks manage moderate gain after erratic session

NEW YORK (AP) -- Wall Street has managed a moderate gain after an attack of nerves had investors giving back a big early advance and then barreling back into the market right before the close.

Trading was extremely erratic -- the Dow Jones industrials rose as much as 203 points in early trading in response to upbeat economic data, then fell nearly 110 during the afternoon before closing up 90 at 7,749.81. Analysts said weak demand during an auction of government debt stirred up worries about how easily Washington will be able to raise money to fund its economic rescue program. The fear in the market is that the government might not be able to easily raise the hundreds of billions of dollars it needs.

Administration seeks action on financial overhaul

The administration wants Congress to act quickly on legislation that would give it sweeping new powers to seize financial firms whose collapse could jeopardize the U.S. economy, Treasury Secretary Timothy Geithner said Wednesday.

In a speech in New York, Geithner said the country should never again be faced with having to choose between a meltdown of the financial system and massive taxpayer bailouts.

The new legislation, which Geithner said will be sent to Congress this week, would give the administration the power to take over financial institutions like troubled insurance giant American International Group Inc.

Postal chief says post office running out of money

WASHINGTON (AP) -- The post office will run out of money this year unless it gets help, Postmaster General John Potter told Congress on Wednesday as he sought permission to cut delivery to five days a week.

The agency lost $2.8 billion last year and is looking at much larger losses this year. Reducing mail delivery from six days to five days a week could save $3.5 billion annually, Potter said. He also urged changes in how the post office pre-pays for retiree health care to cut its annual costs by $2 billion.

Mortgage applications up on jump in refinancing

WASHINGTON (AP) -- Mortgage applications surged last week, coming mostly from borrowers looking to refinance at sharply lower rates after the Federal Reserve unveiled plans to buy Treasury bonds and mortgage-backed securities.

The Mortgage Bankers Association said Wednesday its weekly application index climbed 32.2 percent for the week ended March 20. The index came in at 1159.4, up from 876.9 a week earlier.

On an unadjusted basis, the index rose 31.4 percent compared with the previous week, the trade group said.

Feds sue Dish Network over do not call complaints

WASHINGTON (AP) -- The nation's second largest satellite TV provider -- Dish Network -- is being sued by the federal government for alleged violations of the national Do Not Call Registry.

The Federal Trade Commission on Wednesday accused Dish Network of making thousands of phone calls to people on the Do Not Call list. The FTC said Dish is the biggest violator to date, based on the number of complaints to the agency.

The company, in Englewood, Colo., issued a statement denying the allegations. A spokeswoman would not comment further.

EU presidency: US stimulus is 'the road to hell'

BRUSSELS (AP) -- The head of the European Union slammed President Barack Obama's plan to spend nearly $2 trillion to push the U.S. economy out of recession as "the road to hell" that EU governments must avoid.

The blunt comments by Czech Prime Minister Mirek Topolanek to the European Parliament on Wednesday highlighted simmering European differences with Washington ahead of a key summit next week on fixing the world economy.

It was the strongest pushback yet from a European leader as the 27-nation bloc bristles from U.S. criticism that it is not spending enough to stimulate demand.

Oil prices fade as storage levels hit 16-year high

COLUMBUS, Ohio (AP) -- Oil prices faded Wednesday as a government report showed U.S. crude inventories rising to levels last seen in 1993.

Benchmark crude for May delivery fell $1.21 to settle at $52.77 a barrel on the New York Mercantile Exchange, one day after closing at a high for the year.

Crude in storage last week rose 3.3 million barrels, according to the Energy Information Administration, much more than what was expected by analysts.

Swiss to negotiate tax cooperation with US

BERN, Switzerland (AP) -- The Swiss government said Wednesday it would immediately start negotiating ground rules with the United States and Japan on how Switzerland will help them pursue alleged tax evaders with money in Swiss banks.

Switzerland will refuse to hand over banking information unless the other countries present compelling evidence of tax evasion by specific individuals, Swiss President Hans-Rudolf Merz said.

Negotiations with European countries will begin later, Merz said.

By The Associated Press

The Dow closed up 89.94, or 1.17 percent, at 7,749.81, while the Standard & Poor's 500 index rose 7.63, or 0.95 percent, to 813.88 and the Nasdaq composite index rose 12.43, or 0.82 percent, to 1,528.95.

Benchmark crude for May delivery fell $1.21 to settle at $52.77 a barrel on the New York Mercantile Exchange.

In London, Brent prices shed $1.75 to settle at $51.75 on the ICE Futures exchange.

In other Nymex trading, gasoline for April delivery fell three-quarters of a cent to settle at $1.495 a gallon, while heating oil lost 3.5 cents to settle at $1.4647 a gallon. Natural gas for April delivery fell 1.8 cents to settle at $4.295 per 1,000 cubic feet.