Trade deficit increases to $40.4
billion in March WASHINGTON (AP) -- The U.S. trade
deficit rose to a 15-month high as rising oil prices pushed crude oil imports
to the highest level since the fall of 2008, offsetting another strong gain in
exports. The larger deficit is evidence of a rebounding U.S. economy. Analysts expect this year's deficit to
be up significantly from 2009, when it hit an eight-year low. But U.S. exports
should keep growing, providing a major source of strength from American
manufacturers, and will only be marginally affected by the European debt
crisis. The Commerce Department reported
Wednesday that the trade deficit rose 2.5 percent to $40.4 billion in March
compared to the February imbalance. It was the largest monthly trade deficit
since December 2008. As summer nears, expect gas prices to
go ... down? Gas prices are poised to fall as
Memorial Day approaches, a welcome change for motorists who have gotten used to
seeing increases cut into their summer vacation money. Experts who had been predicting a
national average of more than $3 per gallon by Memorial Day now say prices have
likely peaked just beneath that threshold. Rising supplies and concerns about
the global economy have helped send wholesale gasoline prices plummeting by 22
cents a gallon since last week. The decline in prices is starting to
filter down to motorists, but it will take several weeks for the full effects
to be reflected in pump prices, which average $2.90 nationwide. SAP buying Sybase for $5.8B in attack
on Oracle, move into mobile phones SAN FRANCISCO (AP) -- German business
software maker SAP AG has agreed to buy Sybase Inc. in a $5.8 billion deal that
ratchets up SAP's rivalry with database leader Oracle Corp. The deal intensifies the battle between
SAP and Oracle to run more of the programs that corporations use to manage
their data. Oracle is the world's leading database maker -- a market where
Sybase is a small player -- and has been on a buying binge in an attempt to
take business in other areas from SAP. SAP, headquartered in Walldorf,
Germany, says the acquisition will also give it key technology from Sybase that
lets business programs run on mobile phones. WASHINGTON (AP) -- The federal budget
deficit hit an all-time high for April as the government kept spending to aid
the recovery while revenue fell sharply. The Treasury Department said Wednesday
the April deficit soared to $82.7 billion. That was significantly higher than
last year's April deficit of $20 billion and the largest imbalance for that
month on record. April's record deficit was higher than it would normally be
because about a third of the increase resulted from benefits for May that were
paid on the last day in April, analysts note. That was because May 1 fell on a
Saturday. The government normally runs surpluses
in April as millions of taxpayers file their income tax returns. However,
income tax payments were down this April, reflecting the impact of the
recession which has pushed millions of people out of work. Stocks recover from recent slide over
debt fears NEW YORK (AP) -- A dose of good
economic news sent stocks sharply higher Wednesday and erased the Dow Jones
industrials' big plunge of last week. The Dow rose 148 points to return to
where it stood before Thursday's tumble that briefly took the average down
nearly 1,000 points. The technology-dominated Analysts say the market's rebound from
last week's drop reflects investors' growing confidence that Europe's debt
problems are contained for now. Fears that Europe's problems would spill over
to the U.S. fed the market's plunge. What went wrong at oil rig? A lot,
probers find WASHINGTON (AP) -- Bad wiring and a
leak in what's supposed to be a "blowout preventer." Sealing problems
that may have allowed a methane eruption. Even a dead battery, of all things. New disclosures Wednesday revealed a complex
cascade of deep-sea equipment failures and procedural problems in the oil rig
explosion and massive spill that is still fouling the waters of the Gulf of The public also got its first look on
Wednesday of oil gushing from the broken pipe that rests nearly a mile under
water as BP PLC, the well's operator, released a video taken by a remotely
controlled camera. Oil flowing from a break in the yellowish pipe becomes
lighter in color as it mixes with natural gas. Over the past 21 days more than
4 million gallons of oil have been released. NEW YORK (AP) -- The company is more than doubling its
annual rate of giving as the number of Americans receiving food stamps has
risen to one in eight, and food banks are straining to meet demand. EU lays out tighter rules to stem debt
crisis BRUSSELS (AP) -- European Union
officials urged a crackdown on widespread government overspending, calling
Wednesday for much closer economic coordination between EU nations to curb the
acute debt crisis that has threatened to sink their shared currency. The plan by the EU's executive
commission advocated unprecedented scrutiny of countries' spending plans even
before they go to their national parliaments -- and new financial penalties for
rulebreakers. That would deepen the ties that bind 16
nations in Europe's currency union and would curtail some nations' power over
their own economies in an attempt to keep more reckless spenders like recently
bailed-out Greece from dumping their debts on all eurozone members. Local push helps Macy's back to
profitability NEW YORK (AP) -- Macy's intense focus
on tailoring its merchandise to local markets helped push the department store
chain to profitability in the first quarter. More customers who had defected to rivals
returning to its stores, the chain said, helping to drive better-than-expected
sales. However, the department store operator,
which boosted its annual outlook last month, said it's too early to further
raise its guidance for the year because of economic uncertainty. Shares rose 80
cents, or 3.4 percent, to close at $24.70. Gold hits new high as investors seek
safety NEW YORK (AP) -- The price of gold
reached a record high Wednesday as investors uneasy about the euro put their
money and their trust into the metal. Gold for June delivery jumped as high
as $1,249.20 an ounce, nearly $22 above the previous record of $1,227.50 set
Dec. 3. It later settled at $1,243.10, up $22.80 from Tuesday's close. The gold rally is a sign that investors
aren't completely convinced that weak European countries will be able to
control their rising debts through cost-cutting. The doubts are persisting even
though European leaders agreed earlier this week to a nearly $1 trillion
bailout to support countries including Greece that are struggling to pay their
debts. By The Associated Press The Dow Jones industrial average rose
148.65, or 1.4 percent, to 10,896.91. The Dow stands at its highest level since
May 4. The Dow is up 5 percent in three days, its best gain since July. The Standard & Poor's 500 index
rose 15.88, or 1.4 percent, to 1,171.67, while the Benchmark crude lost 72 cents to settle
at $75.65 a barrel on the New York Mercantile Exchange. In other Nymex trading in June
contracts, heating oil climbed 1.90 cents to settle at $2.1591 a gallon, and
gasoline rose 1.52 cents to settle at $2.2104 a gallon. Natural gas gained 15.3
cents to settle at $4.284 per 1,000 cubic feet. In London, Brent crude rose 71 cents to
settle at $81.20 on the ICE futures exchange.