Goldman 1Q earnings surpass Wall Street estimates
NEW YORK (AP) -- Goldman
Sachs, in another sign that banks may be turning around, beat Wall Street's
earnings expectations as it reported a profit of $1.66 billion for the first
three months of this year. The bank also said it planned to raise $5 billion in
stock to help it pay back government bailout funds.
The New York-based bank said
it earned $3.39 per share, easily surpassing analysts' forecasts for profit of
$1.64 per share. This compares with earnings of $1.47 billion, or $3.23 per
share, in the quarter ended Feb. 29 of last year.
Goldman's news, released a
day earlier than anticipated, came days after another top-performing bank,
Wells Fargo & Co., said it expected to report record first-quarter earnings
of $3 billion, well above Wall Street's estimates.
Express Scripts to buy
WellPoint unit for $4.68B
INDIANAPOLIS (AP) -- Express
Scripts Inc. stands to gain considerable negotiating clout from its $4.68
billion deal to buy the pharmacy benefits management businesses of health
insurer WellPoint Inc., and experts say that could mean savings for customers
buying prescription drugs.
St. Louis-based Express
Scripts said Monday it planned to buy WellPoint's NextRx subsidiaries in a
cash-and-stock deal. Express Scripts is the third-largest pharmacy benefits
manager, and the deal likely would vault it past No. 2 CVS Caremark and push it
close to the top stand-alone company, Medco Health Solutions Inc., based on
prescriptions managed.
Shipper says piracy needs
multinational solution
MOBILE, Ala. (AP) -- A
multinational coalition must stand up against Somali pirates like the ones who
raided an American cargo ship this week, the president of the company that
manages the ship said Monday.
One country cannot stand
alone against pirates like the ones who tried to hijack the M/V Maersk Alabama
and held its American captain hostage, said Erik L. Johnsen, president of
Mobile-based International Shipholding Corp., which manages the Alabama for
owner Maersk Line Limited, based in Norfolk, Va. He said many seafaring nations
must team to battle the problem.
Stocks end mostly higher
ahead of earnings reports
NEW YORK (AP) -- Stocks
ended mostly higher Monday ahead of a flurry of earnings reports that could
determine whether the economy is really getting better, as investors have been
hoping over the past month as they drove the market higher.
Early signs were good.
Goldman Sachs Group Inc. surprised investors after the end of trading Monday
when it released better-than-expected quarterly results and announced a $5
billion stock offering. The company had been scheduled to report results early
Tuesday.
The bank's $1.7 billion
profit was just the sort of good surprise traders were eager for Monday as they
snapped up financial stocks. Some are looking for signs of recovery, while
others don't want to get burned if banks beat the low expectations the market
has set for the industry.
Investors take Madoff to
bankruptcy court
NEW YORK (AP) -- A small
group of investors took Bernard Madoff to bankruptcy court on Monday, saying
the disgraced financier bilked them out of nearly $64 million.
A Manhattan judge cleared
the way for the newly filed Chapter 7 petition last week by granting a request
from the same investors to lift a temporary order barring bankruptcy for
Madoff. They had argued that a bankruptcy case was needed to protect their
rights amid an ongoing scramble to seize his assets.
MetLife says it will not
seek US Treasury funds
NEW YORK (AP) -- MetLife
Inc. will not participate in the Treasury Department's capital purchase
program, the New York-based insurer said Monday.
The company issued the
statement in response to widespread speculation that life insurers may be the
next group of financial services companies to seek a federal bailout.
One rival insurer, Genworth
Financial Inc., saw its shares tumble 18 percent Monday, after its bid to
qualify for the $700 billion program expired without Treasury approval. That
failure cost the insurer its planned purchase of Minnesota-based InterBank,
denying Genworth much needed capital.
Oil settles near $50
SIOUX FALLS, S.D. (AP) --
Oil prices settled just above $50 a barrel Monday, recovering from earlier lows
as traders continued to look to the equity markets for signs the economy is set
to recover.
Benchmark crude for May
delivery dropped $2.19 to settle at $50.05 a barrel on the New York Mercantile
Exchange after dipping as low as $48.84 earlier in the day.
AP Poll: Taxpayers more
frugal with refunds
WASHINGTON (AP) -- Hopes for
an economic boost fueled by this year's tax refunds could be dashed as most
people say they plan to be frugal with their annual windfalls.
In previous years, tax
refunds have helped increase retail sales in March, April and May by 12 percent
to 20 percent over sales in February, Internal Revenue Service Commissioner
Doug Shulman said Monday.
Thirty-eight percent of
those receiving a refund said they intend to spend at least part of it,
according to an Associated Press-GfK poll released Monday. But the spending
appears to be mostly on basic needs: 17 percent said they would use the money
for everyday needs such as food and clothing, up from 7 percent a year ago.
American Airlines unveils
newest jet in fleet
FORT WORTH, Texas (AP) --
American Airlines will add the first of 76 new Boeing jets to its fleet this
week in a move that the carrier hopes will cut fuel and maintenance costs.
The Boeing 737-800 aircraft
will replace about one-fourth of American's current aging fleet of McDonnell
Douglas MD-80 series jets, which have been the subject of several maintenance
problems in the past year.
American took delivery of
the first two planes late last month, held a media open house Monday, and
planned to put them into service carrying passengers Tuesday in Chicago.
The planes are the newest
generation of Boeing's workhorse 737 series. American already has 77 Boeing
737-800s it bought nearly a decade ago. They list for $72.5 million to $81
million. American officials said they paid less than sticker price, but
wouldn't say how much.
By The Associated Press
The Dow fell 25.57, or 0.3
percent, to 8,057.81. The Standard & Poor's 500 index rose 2.17, or 0.3
percent, to 858.73, and the Nasdaq composite index rose 0.77, or 0.1 percent,
to 1,653.31.
Benchmark crude for May
delivery dropped $2.19 to settle at $50.05 a barrel on the New York Mercantile
Exchange after dipping as low as $48.84 earlier in the day.
In other Nymex trading,
gasoline for May delivery fell 1.78 cents to settle at $1.4632 a gallon and
heating oil dropped 3.08 cents to settle at $1.3980 a gallon.
In London, Brent prices fell
$1.92 to settle at $52.14 a barrel on the ICE Futures exchange.
Meanwhile, natural gas
futures on the Nymex gained 1.8 cents to settle at $3.628 per 1,000 cubic feet,
down from a July peak of $13.69. Lower prices mean consumers could save money
on heating next winter, with some already signing contracts with distributors
to lock in current low rates.