AP Business Highlights

  • Wednesday April 1, 2009, 6:18 pm EDT

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Glimmer of hope in March's steep auto sales drop

DETROIT (AP) -- March proved to be another dismal month of steep declines for U.S. auto sales as low consumer confidence and job uncertainty continued to keep buyers away from showrooms, but the improvement from February signaled that bargain-hunting buyers may be providing the momentum for a turnaround.

General Motors Corp.'s sales fell 45 percent, while Ford Motor Co. reported a 41 percent drop. Sales at Chrysler, Toyota, Honda and Nissan were just a few points better.

Wall Street begins 2nd quarter slightly higher

NEW YORK (AP) -- Wall Street began the second quarter on solid footing Wednesday as better-than-expected economic reports helped extend a four-week rally.

After falling in the early going on disappointing jobs data, the Dow Jones industrials ended with a gain of 153 points to 7,761.60 following reports showing a rebound in pending home sales and improving manufacturing activity. Other major indexes rose about 1.5 percent.

Authorities seize Bernard Madoff's 2 boats in Fla.

MIAMI (AP) -- Federal authorities seized disgraced financier Bernard Madoff's vintage yacht and a smaller boat from two Florida marinas early Wednesday, part of an effort to recoup assets to pay back his swindled investors.

The 55-foot yacht named "Bull" and a 24-foot motor boat were taken from marinas on Florida's east coast, said Barry Golden, a spokesman for the U.S. Marshals Service. The yacht, a 1969 Rybovich, is worth $2.2 million.

Economy contracting at slower pace, no bottom yet

WASHINGTON (AP) -- New economic reports on construction spending, manufacturing and pending home sales suggest the recession may be moving closer to a bottom.

But most analysts think the low point is still months away, with more bad news likely before the economy stabilizes and begins to rebound.

The Commerce Department reported Wednesday that construction spending dropped 0.9 percent in February. Meanwhile, a trade group's measure of the health of manufacturing in March showed that key sector of the economy shrank for the 14th straight month. The National Association of Realtors said pending home sales rebounded in February from a record low.

Dow closes on $16.5B buyout of Rohm & Haas

NEW YORK (AP) -- Dow Chemical Co. said Wednesday it has closed on it $16.5 billion buyout of Rohm & Haas Co., a deal that it hopes will fuel growth in the high-margin specialty chemicals market.

Rohm & Haas will form the core of a new advanced materials unit that is expected to have $14 billion in annual sales, Midland, Mich.-based Dow said.

The Rohm & Haas brand will disappear and its stock will cease trading on Wednesday, Dow said.

Jobless rates rise in all US metro areas in Feb.

WASHINGTON (AP) -- Unemployment rates rose in all of the nation's largest metropolitan areas for the second straight month in February.

The U.S. Labor Department reported Wednesday all 372 metropolitan areas tracked saw their jobless rates rise in February from a year earlier. Indiana's Elkhart-Goshen and North Carolina's Hickory-Lenoir-Morganton, both hammered by manufacturing layoffs, registered the biggest annual increases.

Oil falls below $49 amid gloomy data

HOUSTON (AP) -- Oil prices staged a late rally but still closed below $49 a barrel Wednesday, as more signs of a sick economy fueled worries about energy consumption. The nation's oil inventories are now at levels not seen in more than 15 years.

But crude's decline is likely to have a benefit for consumers at the gasoline pump, where the national price for regular unleaded dipped slightly overnight. It marked the first decrease in gasoline prices in more than two weeks.

Benchmark crude for May delivery fell $1.27 to settle at $48.39 a barrel on the New York Mercantile Exchange.

FDIC's Bair urges higher capital for banks

WASHINGTON (AP) -- The head of the Federal Deposit Insurance Corp. says new oversight of big financial institutions deemed to be high risk should include raising their capital requirements to help protect the financial system.

FDIC Chairman Sheila Bair's comment that some big banks and other financial institutions should be mandated to hold more capital as a buffer against risk in times of stress brought vigorous applause from an audience of bankers Wednesday. Many were executives from smaller, community banks.

Fidelity National buying Metavante for $2.94B

NEW YORK (AP) -- Fidelity National Information Services Inc. said Wednesday it will acquire Metavante Technologies Inc. in an all-stock deal valued at about $2.94 billion.

Based on Fidelity National's share price, the deal values Metavante stock at a 23 percent premium over its Tuesday closing price of $19.96. Fidelity National shares closed Tuesday at $18.20.

Panel: Diabetes drug seems safe, more study needed

SILVER SPRING, Md. (AP) -- A federal panel said Wednesday a diabetes drug from Bristol-Myers Squibb appears free from heart problems seen with similar drugs but added that long-term studies should be done after approval to confirm its safety.

Bristol-Myers and partner AstraZeneca have asked the Food and Drug Administration to approve their drug Onglyza for millions of Americans with type 2 diabetes.

By The Associated Press

The Dow rose 152.68, or 2 percent, to 7,761.60, and broader market indicators also rose. The Standard & Poor's 500 index rose 13.21, or 1.7 percent, to 811.08, and the Nasdaq composite index gained 23.01, or 1.5 percent, to 1,551.60.

Benchmark crude for May delivery fell $1.27 to settle at $48.39 a barrel on the New York Mercantile Exchange.

In London, Brent prices fell 79 cents to settle at $48.44 a barrel on the ICE Futures exchange.

In other Nymex trading, gasoline for May delivery fell 4.96 cents to settle at $1.3717 a gallon, and heating oil fell 2.21 cents to settle at $1.3458 a gallon.

Natural gas for May delivery fell 8.1 cents to settle at $3.695 per 1,000 cubic feet. Earlier, natural gas hit a new low of $3.629 per 1,000 cubic feet.