On Thursday April 22, 2010, 5:24 pm EDT
Rosy reports: Home sales jump, jobless
claims fall
WASHINGTON (AP) -- The economy is
improving, with home sales up, jobless claims down and inflation tame. Yet
there are concerns the economic rebound won't get much juice from the housing
market, which is being fueled by government tax breaks.
Sales of previously occupied homes grew
by nearly 7 percent last month, more than expected, the National Association of
Realtors said Thursday. It was a welcome sign after three months of declines,
and a solid kickoff to what's expected to be a strong spring selling season.
Nevertheless, many analysts caution
that the housing rebound could fade in the second half of the year. They
predict a flood of low-priced foreclosures will hit the market and push down
prices in a destabilizing "double dip."
Stocks recover after Obama speech, home
sales data
NEW YORK (AP) -- Stocks recovered from
early losses and closed modestly higher Thursday after President Barack Obama's
speech on financial reform contained no unpleasant surprises.
The Dow Jones industrial average rose
about 9 points to 11,134.29, after being down as much as 108. Broader indexes
also turned higher.
The market fell sharply early in the
day on concerns about Greece's continuing debt problems, and on fears that
Obama would advocate tough restrictions on banks. When he didn't, stocks
recovered.
US Airways ends talks with United about
combo
ATLANTA (AP) -- US Airways has broken
off talks with United Airlines, leaving United to pursue a deal with
Continental Airlines that would reshuffle the lineup in the airline industry.
US Airways, the nation's sixth-largest
carrier, didn't specifically say Thursday why it ended talks with United,
although Continental's involvement appears to have played a role.
Renewed discussions about airline
consolidation come as fuel prices are on the rise. While demand for air travel
has improved from recession lows, major carriers are still struggling to turn
profits. Several major carriers, including Continental, reported first-quarter
losses this week.
CenturyTel, seeking scale, to buy Qwest
for $10.6B
NEW YORK (AP) -- CenturyTel Inc., the
country's fifth-largest local-phone company, said Thursday that it will buy
Qwest Communications International Inc., the third-largest, in a stock swap
worth $10.6 billion to gain the benefits of scale in a shrinking business.
The combined company would have about
17 million phone lines serving customers in 37 states, but would still be
dwarfed by AT&T Inc. and Verizon Communications Inc. It would be based at
CenturyTel's headquarters in Monroe, La., rather than in Denver, where Qwest is
based.
Microsoft 3Q net income up 35 percent
REDMOND, Wash. (AP) -- Microsoft Corp.
said Thursday that its net income in the most recent quarter rose 35 percent,
helped by strong sales of Windows 7.
Microsoft is the latest company to
benefit from what seems to be a rebound in business spending on technology
after the economic downturn. It makes most of its money selling the Windows
computer operating system, Office programs and other business software. The
company said Windows 7, its newest version, now runs on 10 percent of PCs.
For the January-March fiscal third
quarter, Microsoft earned $4 billion, or 45 cents per share. That's higher than
the 42 cents per share forecast by analysts surveyed by Thomson Reuters. It's
up from $3 billion, or 33 cents per share, a year ago.
Obama slams Wall Street ways while
asking support
NEW YORK (AP) -- President Barack Obama
rebuked Wall Street for risky practices Thursday even as he sought its leaders'
help for "updated, commonsense" banking regulations to head off any
new financial crisis.
The president acknowledged differences
of opinion over how to best protect bailout-weary taxpayers but denounced
criticism from some Republicans who claim a Democratic-sponsored bill headed
for Senate action would encourage rather than discourage future bailouts of
huge banks.
PepsiCo's 1Q profit rises on
international growth
NEW YORK (AP) -- PepsiCo Inc.'s
international growth pushed its first-quarter profit up 26 percent, as people
in developing countries bought more of its snacks and drinks.
The company hopes to take that success
and run with it, pledging to invest more in its overseas business as it fights
stagnation at home and in Europe. It may come up against rival Coca-Cola Co.,
who plans to do the same in these high growth markets.
In the first quarter, PepsiCo's North
American beverage volume slipped 4 percent, but revenue rose by 32 percent and
profit by nearly that much because it bought out its two largest bottlers there
and focused on selling more profitable products.
American Express reports cardholder
spending up
NEW YORK (AP) -- American Express Co.
says a big jump in its cardholders' spending helped its first-quarter earnings
more than double to $885 million.
American Express says Thursday it set
aside less money for losses on its credit cards. It joined the nation's big
banks in reporting improvement in credit card operations. Meanwhile, cardholder
spending is up 16 percent.
The company's results are above
forecasts. The company earned 73 cents per share, compared with $437 million,
or 31 cents a year earlier. Analysts surveyed by Thomson Reuters expected a
profit of 64 cents per share.
Goldman exec in alleged fraud to
testify on Hill
WASHINGTON (AP) -- The Goldman Sachs
trader at the center of fraud charges filed by the Securities and Exchange
Commission will testify before a Senate subcommittee next week, the panel
announced Thursday.
Fabrice Tourre, who was named along
with Goldman & Co. in the charges filed last week, will testify Tuesday
before the Permanent Subcommittee on Investigations, the panel said.
The hearing is the fourth in a series
examining the causes of the financial crisis. It also will include testimony
from Goldman CEO Lloyd Blankfein, chief financial officer David Viniar and four
other current and former Goldman executives.
Greek debt crisis worsens as EU revises
figures
ATHENS, Greece (AP) -- Markets pushed
Greece closer to an expensive bailout after the EU raised its estimate of the
country's budget deficit Thursday and a top agency downgraded Greece's credit
rating. The twin moves caused the heavily indebted nation's borrowing costs to
spike to unsustainable levels.
So far, Greece's Socialist government
has insisted it prefers to tap bond markets for its borrowing requirements and
avoid using a joint eurozone-International Monetary Fund rescue package, the
details of which are being hammered out in talks that began in Athens on
Wednesday.
By The Associated Press
The Dow rose 9.37, or 0.1 percent, to
11,134.29.
The Standard & Poor's 500 index
rose 2.73, or 0.2 percent, to 1,208.67, while the Nasdaq composite index rose
14.46, or 0.6 percent, to 2,519.07.
Benchmark crude for June delivery rose
2 cents to settle at 83.70 a barrel on the New York Mercantile Exchange.
The price of natural gas rose 17.3
cents to settle at $4.128 per 1,000 cubic feet on the New York Mercantile
Exchange.
In other Nymex trading in May
contracts, heating oil rose 0.92 cent to settle at $2.215 a gallon and gasoline
added 1.75 cents to close at $2.3002 a gallon.
In London, Brent crude edged down 3
cents to settle at $85.67 on the ICE Futures exchange.