On Wednesday April 28, 2010, 5:54 pm
EDT
Spain downgraded, Europe debt crisis
widens
BERLIN (AP) -- Europe's debt crisis
mushroomed Wednesday as Spain saw its credit rating lowered, just as Germany
sought to reassure nervous investors that Greece would not be allowed to go
under, saying Berlin's share of a key aid package could be approved in the next
few days.
Stock and bond markets had begun to
regain their composure after stinging downgrades of Greece and Portugal the day
before, when Standard & Poors delivered more bad news by cutting Spain's
rating to AA from AA+ amid concerns about the country's growth prospects
following the collapse of a construction bubble.
Fed keep rates at record lows; upbeat
on economy
WASHINGTON (AP) -- The Federal Reserve
sounded a more confident note Wednesday that the economy is strengthening but
pledged to hold rates at record lows to make sure it gains traction.
Wrapping up a two-day meeting, the Fed
in a 9-1 decision retained its pledge to hold rates at historic lows for an
"extended period." Doing so will help energize the recovery.
The Fed offered a more upbeat view of
the economy even as it noted that risks remain. It said the job market is
"beginning to improve," an upgrade from its last meeting in
mid-March. It observed then that the unemployment situation was merely
"stabilizing."
Stocks climb on earnings; Fed holds
rate steady
NEW YORK (AP) -- Investors gave stocks
a rebound after reassuring words from the Federal Reserve and another batch of
upbeat earnings reports.
The Dow Jones industrials rose 53
points to 11,045.27, making back a quarter of the 213 they lost the previous
day.
Investors were able to shake off
Standard & Poor's downgrade of Spain's debt, the third European country in
two days to have its rating lowered. Instead, they focused on the domestic
economy.
Earnings provided a boost to stocks
throughout the day. Cable company Comcast Corp., defense contractor Northrop
Grumman Corp. and Dow Chemical Co. were the latest companies to top earnings
expectations.
Publisher: Creditors win bid for Philly
newspapers
NEW YORK (AP) -- A bankruptcy auction
to decide the fate of Philadelphia's two major daily newspapers ended Thursday
with a group of creditors taking ownership for $139 million.
Publisher Brian Tierney won't fight
confirmation for ownership of Philadelphia Newspapers by creditors whose bid
proved to be too much for a group of local investors backed by local
philanthropists.
The lenders' winning bid will allow
them to try to salvage some of their $318 million investment in the company,
which was bought by a group including Tierney and home builder Bruce Toll in
2006 for $515 million.
Unemployment falls in a majority of US
cities
WASHINGTON (AP) -- Unemployment rates
fell or remained level in three-quarters of the 372 largest metropolitan areas,
a sign that the economic recovery is widespread.
The Labor Department said Wednesday the
jobless rate dropped in 69 percent of metro areas last month from February. It
rose in 24 percent of large cities and remained the same in the rest. That's an
improvement from February, when the unemployment rate decreased in 51 percent
of metro areas and increased in one-third.
The report follows other recent
encouraging news about jobs. Employers added 162,000 jobs in March, the government
said earlier this month, the most significant gain in three years.
Toyota to recall about 50,000 Sequoia
SUVs
WASHINGTON (AP) -- Toyota Motor Corp.
recalled about 50,000 Sequoia sport utility vehicles from the 2003 model year
to fix an unexpected slowing of the vehicle in the latest recall issued by the
Japanese automaker.
Toyota said Wednesday that the recall
would address the vehicle's electronic stability control system, which helps
maintain traction during turning. In some cases, the stability control could
activate at low speed and prevent the SUV from accelerating as quickly as a
driver expects, the company said.
The automaker said they had no reports
of accidents or injuries connected to the issue and about half of the vehicles
had already been repaired under warranty.
Dow Chemical 1Q profit climbs as demand
rebounds
DENVER (AP) -- Dow Chemical Co. says
consumers across much of the globe are starting to spend more on furniture,
electronics and appliances. Even the housing market is looking better to the
nation's largest chemical manufacturer.
Dow said Wednesday the improving demand
signals a stronger economy, although it remains concerned about high
unemployment, potential inflation in some regions and debt problems in European
countries.
Dow said stronger demand and price
increases across most of its businesses bolstered its first-quarter results.
Net income rose to $466 million, or 41 cents a share, after paying preferred
dividends, A year ago, it earned just $24 million, or 3 cents a share.
Euro sinks again as S&P downgrades
Spain's debt
NEW YORK (AP) -- The dollar surged to a
1-year high against the euro Wednesday as the debt crisis in Europe
intensified, but gave back some of its gains after the Federal Reserve offered
a more upbeat view of the economy and pledged to keep rates at record lows.
In late New York trading, the euro sank
as low as $1.3116, its weakest point since April 2009, before edging back up to
$1.3187. On Tuesday, it was worth $1.3184.
On Wednesday, credit ratings agency Standard
& Poor's downgraded Spain's debt a day after cutting the ratings of Greece
and Portugal. Budget deficits in several European countries and fears of
prospective debt defaults have dragged down the euro from a level above $1.51
in early November.
HP to be Palm's Silicon Valley savior
in $1B deal
SAN FRANCISCO (AP) -- Palm Inc. a
pioneer in the smart phone business that couldn't quite make the comeback it
needed, has agreed to be bought out by Hewlett-Packard Co. for about $1 billion
in cash.
The two Silicon Valley companies
announced Wednesday that the deal will see HP pay $5.70 for every Palm common
share. Palm had closed trading Wednesday at $4.63 but traded as high as $18.09
in the past 52 weeks.
When debt is included, the deal values
Palm at $1.2 billion.
The transaction is expected to close by
the end of July.
GE says economy has stabilized
General Electric Co. said Wednesday
that the broader economy and its own industrial and lending businesses are
improving, signs the "clouds are breaking" after one of the worst
years ever for the company.
Some key economic indicators have
stabilized, including the high unemployment rate and the decline in housing
prices, GE told investors at its annual meeting in Houston. Bank losses have
stopped growing and capital markets have improved, a positive sign for GE's
troubled GE Capital lending unit that has been the source of many of its
problems.
GE is frequently seen as an economic
indicator since it is has a major presence in sectors ranging from
transportation to finance and employs more than 300,000 people in dozens of
countries.
By The Associated Press
The Dow rose 53.28, or 0.5 percent, to
11,045.27.
The Standard & Poor's 500 index
rose 7.65, or 0.7 percent, to 1,191.36, while the Nasdaq composite index rose
0.26, or 0.01 percent, to 2,471.73.
Benchmark crude for May delivery rose
78 cents to settle at $83.22 a barrel on the New York Mercantile Exchange.
In other Nymex trading in May
contracts, heating oil fell 0.13 cent to settle at $2.2290 a gallon, and
gasoline gained 0.59 cent to settle at $2.3327 a gallon. Natural gas rose 5.5
cents to settle at $4.271 per 1,000 cubic feet.
In London, Brent crude rose 38 cents to
settle at $86.16 on the ICE Futures exchange.