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On Monday April 5, 2010, 5:43 pm EDT

US service sector gauge grows faster in March

NEW YORK (AP) -- The U.S. service sector grew in March at its fastest pace in more than two years, suggesting the economic recovery is expanding from the nation's factories to its shops, restaurants, hospitals and other big sources of jobs.

The Institute for Supply Management, a trade group, said Monday its service index rose to 55.4 in March from 53 in February.

Economists surveyed by Thomson Reuters had expected a reading of 54. Any reading above 50 signals expansion.

It is the strongest pace of growth since ISM revised how it measured the service sector in January 2008.

Pending home sales rise 8.2 percent in February

WASHINGTON (AP) -- The housing market is coming back from the winter doldrums.

The number of buyers who agreed to purchase previously occupied homes rose sharply in February, far exceeding expectations, a report said Monday.

That's a sign that a second round of government incentives is pushing buyers to make offers before a deadline at the end of this month. Buyers may also be motivated by worries that mortgage rates will climb later this year.

The National Association of Realtors said Monday its seasonally adjusted index of sales agreements rose 8.2 percent from January to a February reading of 97.6. January's reading was revised slightly downward to 90.2.

Stronger jobs, services reports send stocks higher

NEW YORK (AP) -- Stronger reports on jobs and services industries lifted the stock market Monday and pushed the Dow Jones industrial average toward the 11,000 mark.

The Dow rose 46 points to 10,973.55, closer to crossing the psychological benchmark of 11,000 for the first time in 18 months. The growing confidence about the economy hurt demand for Treasurys and drove up interest rates. The yield on the 10-year Treasury note briefly rose to 4 percent, its highest level since June.

Major stock indexes have been climbing for 13 months with little interruption. Since February, stocks have drawn most of their gains from steady advances rather than the big bursts higher that occurred last year.

Toyota hit with $16M fine over recalls in US

WASHINGTON (AP) -- Toyota Motor Corp. faces a maximum penalty of more than $16 million, a record civil penalty against an automaker, for failing to promptly notify the U.S. government about defective gas pedals among its vehicles.

Toyota has recalled more than 6 million vehicles in the U.S., and more than 8 million worldwide, because of acceleration problems in multiple models and braking issues in the Prius hybrid.

Transportation Secretary Ray LaHood said Monday that documents obtained from the Japanese automaker showed that Toyota knew of the problem with the sticking gas pedals in late September but did not issue a recall until late January. The sticking gas pedal recall involved 2.3 million vehicles.

GM to use brake safety measure worldwide

DETROIT (AP) -- General Motors says it will install a new brake safety measure that can prevent unintended acceleration on all its new vehicles worldwide by 2012.

The announcement Monday comes as federal regulators consider making the technology mandatory on new cars and trucks after Toyota's big problems with vehicles that can speed out of control. Congress is also exploring the issue after a series of hearings last month on Toyota's recall of millions of vehicles over gas pedals that get stuck or trapped on floor mats.

GM has not had major problems with unintended acceleration, but the company said it was taking the step as a means of reassuring customers about the safety of its vehicles.

Apple sells more than 300,000 iPads on first day

SEATTLE (AP) -- Apple Inc. said Monday that it delivered more than 300,000 iPads on its opening day, meeting expectations of some analysts while underscoring the challenges the company still faces marketing the device beyond early adopters.

The total seemed modest given the weeks of hype about the revolutionary nature of Apple's new touch-screen tablet device. Furthermore, the figures included pre-orders that were picked up or delivered Saturday and iPads sent to retail stores such as Best Buy but not necessarily purchased. Apple did not say how many went to such stores.

Assuming most of the 300,000 iPads ended up in the hands of consumers Saturday, though, the figure is in line with the number of iPhones that Apple sold when the smart phone made its debut in June 2007.

Gov't aims to help more "underwater" homeowners

WASHINGTON (AP) -- The government launched a new effort on Monday to speed up the time-consuming, often-frustrating process of selling your home if you owe more than it's worth.

The Obama administration will give $3,000 for moving expenses to homeowners who complete such a sale -- known as a short sale -- or agree to turn over the deed of the property to the lender. It's designed for homeowners who are in financial trouble but don't qualify for the administration's $75 billion mortgage modification program.

Owners will still lose their homes, but a short sale or deed in lieu of foreclosure doesn't hurt a borrower's credit score for as much time as a foreclosure.

AP Source: Report on Social Security delayed

WASHINGTON (AP) -- The Obama administration is delaying release of the annual report on the financial health of Social Security and Medicare so that the new report can reflect the impact of the recently passed health care overhaul.

An administration official told The Associated Press that this year's trustees report will be delayed until June 30, three months later than it usually comes out.

The official, who spoke on condition of anonymity before the formal announcement, said Monday that the delay will allow the government to determine the impact of the massive overhaul of health care that President Barack Obama just signed into law.

Gasoline, oil break out to 18-month highs

New reports showing improvement in the housing and services sectors combined with encouraging employment data to send oil and gasoline prices to an 18-month high Monday.

After months of trading in a range of $75 to $85, a recent rally driven by positive U.S. economic news has some analysts wondering if oil could make its first foray into triple digits since late 2008. But that's also raised concerns about an increase in gasoline prices that could hurt consumers just as they're starting to spend again.

On Monday, reports on pending home sales and the service sector came in better than expected. At the end of last week, the Labor Department said the country posted its best growth in jobs in three years and its fastest growth in industrial activity since July 2004.

Overstock's brash CEO delivers 1st annual profit

SALT LAKE CITY (AP) -- If Overstock.com's unconventional CEO had a defining moment, it might have been a conference call he had with investors five years ago.

For an hour, Patrick Byrne lashed out at what he called a conspiracy of short sellers and others plotting to destroy his company's share price so a "bottom feeder" could take over the Internet discounter. Byrne says his point was to expose "crooked" hedge funds and how federal regulators were powerless to stop them.

"We've got a group of parasites who have found a loophole that they can keep on using to just drain resources out of entrepreneurs in America, and in the process kill small companies," Byrne thundered on the call.

By The Associated Press

The Dow rose 46.48, or 0.4 percent, to 10,973.55, its highest close in 18 months.

The broader Standard & Poor's 500 index rose 9.34, or 0.8 percent, to 1,187.44. It also stands at an 18-month high.

The technology-dominated Nasdaq composite index rose 26.95, or 1.1 percent, to 2,429.53. The Nasdaq is at its best level since Aug. 15, 2008.

Benchmark crude for May delivery rose $1.75 to settle at $86.62 a barrel on the New York Mercantile Exchange.

In other Nymex trading in May contracts, heating oil rose 5.08 cents to settle at $2.2675 a gallon, and gasoline gained 2.65 cents to settle at $2.3502 a gallon. Natural gas picked up 19.1 cents to settle at $4.277 per 1,000 cubic feet.

In London, Brent crude added $1.87 to settle at $85.88 on the ICE futures exchange.

 

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