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On Thursday April 1, 2010, 6:01 pm EDT

Rising factory output points to economy's recovery

WASHINGTON (AP) -- Rising factory output and a decline in the pace of layoffs are giving economists confidence that the recovery has staying power.

The government is expected to report Friday that the economy added jobs in March for only the second time since December 2007.

Still, job creation is likely to remain weak for years to come, in part because U.S. factories have become more efficient, producing more goods with fewer workers. On top of that, the sector's contribution to the overall economy has been shrinking for decades due to competition from China and other countries where factory workers are paid much less.

Jobs, manufacturing reports boost stock market

NEW YORK (AP) -- Stronger reports on jobs and manufacturing boosted stocks Thursday ahead of the government's March employment report.

The Dow Jones industrial average rose 70 points to a 2010 high on the final day of a shortened week. The stock market will be closed Friday and the bond market will close early for Good Friday. Major stock indexes rose for a fifth straight week.

Economists expect the Labor Department will report that employers added 190,000 jobs last month. That would mark on the second month of jobs growth since the recession began in December 2007. Government hiring for the 2010 census could provide a temporary boost, but an increase would still be welcome news for stock investors.

Big deals lure car buyers, lift US sales in March

DETROIT (AP) -- Car shoppers flocked to showrooms last month, lured by big promotions from Toyota and other automakers that could persist into the spring.

Toyota's unprecedented incentives, including low-interest financing, cheap leases and free maintenance for return customers, pushed up its U.S. sales 41 percent in March and helped it recover from a dismal February. They also touched off an incentive war that drew in buyers to rival dealers.

General Motors Co. reported a 21 percent jump in new vehicles sales on Thursday, while Ford's climbed nearly 40 percent and Honda Motor Co. rose 23 percent over March last year.

The sales point to one conclusion: March was a good time to buy a new car.

New mileage rules: Pay more for cars, less at pump

WASHINGTON (AP) -- Drivers will have to pay more for cars and trucks, but they'll save at the pump under tough new federal rules aimed at boosting mileage, cutting emissions and hastening the next generation of fuel-stingy hybrids and electric cars.

The new standards, announced Thursday, call for a 35.5 miles-per-gallon average within six years, up nearly 10 mpg from now.

By setting national standards for fuel efficiency and greenhouse gas emissions from tailpipes, the government hopes to squeeze out more miles per gallon whether you buy a tiny Smart fortwo micro car, a rugged Dodge Ram pickup truck or something in between.

Brand name, low price make Primerica IPO a hit

NEW YORK (AP) -- Primerica Inc., a unit of Citigroup Inc. powered by an army of agents selling financial services to friends and neighbors, on Thursday had one of the best-performing initial public offerings so far this year as investors were comforted by the high-profile name of its parent and were drawn to a low offering price.

The Primerica offering comes as analysts expect technology and financial companies to lead an IPO market comeback. Five newly public companies have posted double-digit gains on their first day of trading in the past two weeks.

Shares of Primerica surged $4.65, or 31 percent, to close at $19.65 after the deal raised $320.4 million by selling 21.4 million shares for $15 apiece to initial investors. The stock, which reached $20.20 during the session, trades under the ticker "PRI."

CarMax 4Q profit doubles, revenue up

RICHMOND, Va. (AP) -- Used car dealership chain CarMax Inc. said Thursday its fourth-quarter earnings doubled as higher prices and increased customer traffic drove sales. It also plans to resume store growth, a sign of recovery from the worst U.S. auto sales market in decades.

Its shares climbed 55 cents, or 2.2 percent, to $25.67 in morning trading after trading at a 52-week high of $26.35 earlier in the session.

Stronger sales and profits as well as increasing stability in the credit markets will allow the Richmond company to open between eight and 15 stores over fiscal 2012 and 2013, said CEO Tom Folliard. It also will open three previously built stores this fiscal year, which it had announced last quarter.

Oil settles near $85, higher fuel costs ahead

Oil prices have been stuck in a range of about $70 to $85 a barrel for months. That may be changing and it could mean higher fuel costs before long.

Crude pushed to an 18-month high Thursday, passing $85 a barrel at one point, driven by a growing sense of optimism that the world will need more oil as it pulls out of the Great Recession. Now worries are starting to crop up that the rally for oil could lead to nasty results if prices keep climbing and choke off the economic recovery.

Motorists already feel the rising cost of oil at the pump, where the average nationwide retail price of gasoline is at the highest level since October 2008 and is expected to top $3 per gallon this spring or summer.

Deadline looms to use federal foreclosure money

LEHIGH ACRES, Fla. (AP) -- With a use-it-or-lose-it deadline just months away, communities have spent less than half of $4 billion available under a federal program to redevelop abandoned and foreclosed properties.

Some city, state and county officials say they've been stymied by confusing and ever-changing federal rules for the money, awarded in the midst of the nation's foreclosure crisis.

A year after the Neighborhood Stabilization Program started, about a third of more than 300 local governments given the help have barely made a dent in their funds, according to a recent U.S. Department of Housing and Urban Development report.

Geithner: Disparity in recovery 'deeply unfair'

WASHINGTON (AP) -- Treasury Secretary Timothy Geithner said Thursday it's "deeply unfair" that some financial institutions that got taxpayer-paid bailouts are emerging in better shape from the recession than millions of ordinary Americans.

He acknowledged public outrage over that and said people watched with disdain as Washington protected the banks and investment houses whose risky bets caused the crisis, even as the national unemployment rate was soaring to double-digit levels for the first time in a generation.

But in a nationally broadcast interview, Geithner also argued that President Barack Obama had no choice when facing a financial crisis but to support then-President George W. Bush's "unpopular" bailout plan.

US drug sales growth bounced back in 2009

WASHINGTON (AP) -- Growth in U.S. sales of pharmaceuticals bounced back last year as rebates and low-cost generic drugs drove an increase in the number of prescriptions filled, according to data tracking firm IMS Health.

U.S. pharmaceutical sales climbed 5.1 percent to $300.3 billion in 2009 after two prior years of slower growth. IMS Health attributed the turnaround to increased filling of prescriptions, which grew at a 2.1 percent pace compared with 1 percent in 2008.

In response to the economic downturn, drugmakers have been offering co-pay coupons and other programs to help patients pay for their prescriptions. Those programs combined with offers on low-cost generic drugs from Wal-Mart, Walgreens and other retailers to drive sales.

By The Associated Press

The Dow rose 70.44, or 0.7 percent, to 10,927.07.

The Standard & Poor's 500 index rose 8.67, or 0.7 percent, to 1,178.10. The technology-dominated Nasdaq composite index rose 4.62, or 0.2 percent, to 2,402.58.

Benchmark crude for May delivery rose $1.11 to settle at $84.87 a barrel on the New York Mercantile Exchange after climbing to an 18-month high.

In other Nymex trading in May contracts, heating oil rose 3.77 cents to settle at $2.2167 a gallon, and gasoline gained 1.65 cents to settle at $2.3237 a gallon. Natural gas added 2.17 cents to settle at $4.086 per 1,000 cubic feet.

In London, Brent crude rose $1.31 to settle at $84.01 on the ICE futures exchange.

 

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