AP Business Highlights

·        
Companies:

On Thursday April 8, 2010, 5:57 pm EDT

Shoppers hand retailers a basket of Easter cash

NEW YORK (AP) -- Better weather and an earlier Easter enticed Americans to shell out for spring clothes in March, the fourth straight month of gains for retail sales. Target, Macy's, Gap and the parent of Victoria's Secret all beat Wall Street expectations.

The improvement was broad, spanning discounters, mass merchants, specialty stores and luxury retailers. The gains offer strong evidence that people are feeling more confident in the economic recovery and are more willing to spend.

Retailers had several factors on their side. The earlier holiday combined with comparisons to notoriously weak sales in March 2009 had analysts expecting solid improvements. But it's also clear that shoppers' mindset is changing.

Rubin is challenged on role in Citi's risk-taking

WASHINGTON (AP) -- Robert Rubin, the former financial superstar once lionized for his global crisis-fighting prowess, was scolded Thursday over the mortgage-securities disaster at Citigroup Inc. when he was a top executive there. His claim he didn't know of the risks piling up drew a sharp retort.

Rubin expressed regret. Yet he insisted he didn't know until late in the game, when the subprime mortgage crisis erupted in September 2007, about the $43 billion in high-risk mortgage securities on Citigroup's books.

He said Citi trading-desk executives who built up that mountain thought, as many others on Wall Street did, that the triple-AAA rated securities were safe from default.

Initial jobless claims increase unexpectedly

WASHINGTON (AP) -- The number of newly laid-off workers seeking unemployment benefits rose last week, a sign that jobs remain scarce even as the economy recovers.

The increase also may result from the difficulty the Labor Department has in seasonally adjusting the claims around the Easter holiday, which falls on different weeks each year.

The Labor Department said Thursday that first-time claims increased by 18,000 in the week ended April 3, to a seasonally adjusted 460,000. That's worse than economists' estimates of a drop to 435,000, according to a survey by Thomson Reuters.

Investors look past Greece worries to retail sales

NEW YORK (AP) -- The stock market recovered from an early slide after an increase in retail sales overshadowed concerns about Greece's debt problems and the job market.

The Dow Jones industrial average finished with a gain of 30 points to 10,927.07, after being down 53 and falling the prior two days. Broader indexes also rose.

The market turned higher around midday after sales gains at the nation's major retailers raised expectations for the economy as well as the corporate earnings reports that start to arrive next week.

Geithner China visit likely to spur currency shift

WASHINGTON (AP) -- Treasury Secretary Timothy Geithner's surprise visit Thursday to China yielded no immediate change in China's currency policy. But analysts predicted the Obama administration's efforts to mend frayed relations will result in a currency change, possibly within weeks.

A move to let the yuan rise in value against the dollar would benefit U.S. exporters. The undervalued Chinese currency has made Chinese goods cheaper for American consumers. But it's hurt U.S. companies by making their products costlier in China.

Analysts cautioned, though, that any appreciation of the yuan will likely be gradual.

Apple iPhone to soon get long-sought multitasking

CUPERTINO, Calif. (AP) -- Apple Inc.'s iPhone and iPad devices will soon be able to run more than one program at a time, an ability that phones from Apple's rivals already offer and that iPhone owners have long sought.

The changes, coming this summer to iPhones and this fall to iPads, mean that users might be able to listen to music through the Pandora program and check a bank account online simultaneously. Currently, users must return to Apple's home screen, effectively quitting the open program, before starting a new task.

US Airways-UAL talks cheer Wall Street

MINNEAPOLIS (AP) -- Wall Street sure would like to see United Airlines and US Airways combined into one airline. Travelers? Maybe, maybe not.

The general thinking among analysts is that the U.S. has too many big carriers offering too many seats. That drives down ticket prices and makes it harder for airlines to turn a profit. US Airways and United lost a combined $856 million last year. Airline investors like consolidation because they expect it would lead to fewer seats, and thus higher fares.

Which is where travelers start to get antsy.

"Mergers tend to be a net negative for consumers," said Tim Winship, the editor of FrequentFlier.com.

Rates on 30-year home loans rise to 5.21 pct

WASHINGTON (AP) -- Rates for 30-year home loans surged last week, rising to the highest level in eight months due to the improving economy and the end of a government push to keep rates low.

The average rate on a 30-year fixed rate mortgage was 5.21 percent this week, up from 5.08 percent a week earlier, Freddie Mac said Thursday. That's the highest since mid-August, when the average rate was 5.29 percent.

Rates had dropped to a record low of 4.71 percent in December, pushed down by a campaign by the Federal Reserve to reduce borrowing costs for consumers. The program ended last week, but the Fed left the door open to reviving the program if the economy weakens.

ECB's Trichet seeks to dampen Greek default fears

LONDON (AP) -- European Central Bank president Jean-Claude Trichet on Thursday sought to downplay mounting market fears that Greece could default on its debt, insisting a support framework outlined by EU leaders last month was "workable" and "a very, very serious commitment" by fellow eurozone governments in support of the struggling country.

Trichet made the remarks following the bank's decision to leave the main interest rate at a record low of 1 percent for the 11th month running. The decision was expected and attention focused almost entirely on the Greek crisis.

The backstop accord for Greece, which would include bilateral loans from willing eurozone countries and aid from the International Monetary Fund, does not seem to have worked -- the country's borrowing costs continued to shoot higher.

Fewer on-time flights in February

NEW YORK (AP) -- U.S. airlines operated fewer on-time flights in February, the Department of Transportation said Thursday, as massive snowstorms shut down some of the largest East Coast airports.

Sixty-one flights were delayed for at least three hours during the month-- triple the number of those delays in January. It was the highest number of 3-hour tarmac delays since August 2009. August is one of the busiest months of the year for air travel.

Among the top five flights with the longest tarmac delays in February, four were operated by US Airways. Three were on the same route: Dallas/Fort Worth to Charlotte, N.C.

By The Associated Press

The Dow rose 29.55, or 0.3 percent, to 10,927.07.

The S&P 500 index rose 3.99, or 0.3 percent, to 1,186.44, while the Nasdaq composite index rose 5.65, or 0.2 percent, to 2,436.81.

Benchmark crude for May delivery fell 49 cents to settle at $85.39 barrel on the New York Mercantile Exchange.

In other Nymex trading in May contracts, heating oil lost 1.57 cents to settle at $2.2281 a gallon, and gasoline dropped 1.64 cents to settle at $2.2983 a gallon.

In London, Brent crude gave up 78 cents to settle at $84.81 on the ICE futures exchange.

 

Share this page

Related Headlines

Related Blog Headlines

Related Message Boards