AP Business Highlights

On Monday April 19, 2010, 5:55 pm EDT

Stocks end mixed after financial stocks rebound

NEW YORK (AP) -- Investors snapped up financial stocks Monday after concerns eased about the government's case against Goldman Sachs.

The Dow Jones industrial average ended with a gain of 73 points to 11,092.05 after sliding for much of the day. The advance followed a drop of 126 points Friday after the Securities and Exchange Commission filed civil fraud charges against Goldman Sachs related to mortgage investments.

Analysts said reports that the SEC voted 3-2 along party lines to press its case against Goldman Sachs eased some of investors' worries. Investors seemed placated by the fact the vote wasn't unanimous. A rebound in Goldman helped lift financial shares.

Moving faster, Toyota recalls SUVs, agrees to fine

WASHINGTON (AP) -- Toyota hurriedly ordered recalls of nearly 10,000 Lexus SUVs for possible rollover dangers Monday and agreed to a record $16.4 million fine for a slow response in its broader earlier recall, scrambling to fix safety worries that threaten the Japanese auto giant's reputation.

The fine, the maximum under law, could hurt Toyota Motor Corp.'s image more than its financial bottom line: The penalty is the equivalent of a little more than $2 for every vehicle the company sold around the globe in 2009. And analysts said it would have little impact on dozens of private lawsuits, which have been combined before a federal judge in Santa Ana, Calif.

Citigroup earns $4.4B in 1Q as trading rebounds

NEW YORK (AP) -- Citigroup Inc. provided more evidence Monday that the nation's big banks may have turned a corner. The bank reported a surprise first-quarter profit as trading revenue offset losses from failed loans.

Citigroup said it earned $4.4 billion after payment of preferred dividends, compared with a loss of $696 million a year earlier. That was the bank's biggest quarterly profit since the second quarter of 2007.

The company cited strong trading of bonds, stocks and other securities for its big profit. Citigroup, one of the hardest hit banks during the credit crisis and recession, said losses from bad loans fell for the third consecutive quarter. It also set aside less money for loan losses.

Airline losses from ash spiral over $1 billion

PARIS (AP) -- As airline losses from the volcanic ash cloud spiraled over $1 billion on Monday, the industry demanded EU compensation and criticized European governments for relying too much on scientific theory -- not fact -- in their decisions to shut down airspace across the continent.

Shares of some European airlines fell as flight disruptions from the volcanic cloud moved into a fifth day, and the International Air Transport Association complained of "no leadership" from government leaders -- one of whom admitted to EU dissension about how to respond.

IATA officials said the $200 million estimate was at the low end of their projections, and that it could run as high as $250 million-$300 million a day.

Leading indicators jump 1.4 pct, topping estimates

NEW YORK (AP) -- A gauge of future economic activity jumped 1.4 percent in March, the fastest pace of growth in 10 months.

The rise in the Conference Board's index of leading economic indictors suggests economic growth is likely to continue for the next three to six months.

Economists polled by Thomson Reuters had expected the index to grow 0.9 percent last month.

The report says the leading indicators' growth was 0.4 percent in February and 0.6 percent in January, up from previous estimates of 0.1 percent and 0.3 percent.

IBM optimistic amid signs of tech spending rebound

NEW YORK (AP) -- IBM Corp. said Monday its first-quarter profit jumped 13 percent, and the company offered evidence that corporate technology spending is rebounding after the recession.

IBM said it earned $2.6 billion, or $1.97 per share, in the first three months of the year. In the same period of 2009 it earned $2.3 billion, or $1.70 per share.

The improvement came not just from cost cutting, which IBM relied on much of last year to raise profits. In the most recent quarter, revenue climbed 5 percent to $22.9 billion.

Dodd: Goldman suit should spur GOP on regulations

WASHINGTON (AP) -- The chairman of the Senate Banking Committee said Monday that the government's fraud lawsuit against Goldman Sachs should dissuade Republicans from attempting to block financial regulations pending before the Senate.

Sen. Christopher Dodd said Monday that his legislation would provide more transparency to the type of mortgage-backed instrument that Goldman assembled and that cost investors $1 billion.

The Securities and Exchange Commission filed civil charges Friday against the venerable Wall Street firm, claiming the bank misled investors about the risks surrounding the securities.

Halliburton grows at home, yet weakness abroad

NEW YORK (AP) -- Halliburton said Monday its first-quarter profit slumped nearly 46 percent as the company saw drilling operations slow internationally.

Reversing a trend last year, the Houston company's results were propped up by a resurgence in the U.S., where crews have been working around the clock to tap natural gas deposits in underground layers of shale.

Natural gas, which has fewer emissions that other fossil fuels like coal, has been a bright spot in the energy industry as Congress looks for ways to fight climate change. Halliburton CEO Dave Lesar said the oil services firm has been able to raise its prices as shale drilling expands.

Higher revenue, tax benefit boost Hasbro profit

NEW YORK (AP) -- Toys are increasingly making their way back into parents' budgets, Hasbro Inc.'s results showed Monday.

A big spike in sales of girls' toys and strong sales across the board helped Hasbro's first-quarter profit nearly triple. Revenue from girls' toys, including Littlest Pet Shop, My Little Pony and Strawberry Shortcake, rose 16 percent.

The second-largest U.S. toymaker also said Monday that it is starting a $625 million share buyback program.

Goldman and volcano take down oil prices

NEW YORK (AP) -- Oil prices fell again Monday on worries that fraud charges against Goldman Sachs could prompt a retreat from energy commodities to more safe-haven investments.

Traders also worried that disruption to air travel from the Icelandic volcano will reduce demand for jet fuel and could hamper the global economic recovery.

Meanwhile, crude oil's slide nudged gasoline prices slightly lower.

By The Associated Press

The Dow rose 73.39, or 0.7 percent, to 11,092.05.

The Standard & Poor's 500 index rose 5.39, or 0.5 percent, to 1,197.52, while the Nasdaq composite index slipped 1.15, or 0.1 percent, to 2,480.11.

Benchmark crude for May delivery tumbled $1.79 to settle at $81.45 a barrel in electronic trading on the New York Mercantile Exchange.

In other Nymex trading in May contracts, heating oil fell 6.01 cents to settle at $2.1568 a gallon, and gasoline slid 2.26 cents to close at $2.2544 a gallon. Natural gas declined 9.5 cents to $3.944 per 1,000 cubic feet.

In London, Brent crude's June contract was down $1.76 to settle at $84.23 on the ICE futures exchange.