On Thursday May 13, 2010, 5:58 pm EDT
Millions of jobs that were cut won't
likely return
WASHINGTON (AP) -- Fewer construction
workers will be needed. Don't expect as many interior designers or advertising
copywriters, either. Retailers will get by with leaner staffs.
The economy is strengthening. But
millions of jobs lost in the recession could be gone for good.
And unlike in past recessions, jobs in
the beleaguered manufacturing sector aren't the only ones likely lost forever.
What sets the Great Recession apart is the variety of jobs that may not return.
That helps explain why economists think
it will take at least five years for the economy to regain the 8.2 million jobs
wiped out by the recession -- longer than in any other recovery since World War
II.
AP Source: NY AG probing 8 banks over
securities
NEW YORK (AP) -- New York's attorney
general has launched an investigation into eight banks to determine whether
they misled ratings agencies about mortgage securities, according to a person
familiar with the inquiry.
Cuomo's office is investigating
Stocks fall after drop in retail,
financial shares
NEW YORK (AP) -- A late-day slide left
stocks lower Thursday following a disappointing forecast from department store
chain Kohl's and a drop in financial shares.
The Dow Jones industrial average ended
down about 114 points after shooting up by nearly 149 on Wednesday.
Stocks mostly made modest moves for
much of Thursday's trading but fell in the final hour. The drop signaled that
traders remain on edge and not sure about the market's direction.
BP's next try to stem oil gusher:
Smaller tube
WASHINGTON (AP) -- BP officials said
Thursday they would thread a small tube into a jagged pipe on the seafloor to
suck oil to the surface before it can spew into the Gulf and add to a disaster
apparently set in motion by a long list of equipment failures.
Engineers will have to make sure the
6-inch-wide tube is inserted deep enough into the 21-inch-wide pipe so gas and
seawater don't mix, which can form crystals that could clog the tube. They'll
also have to thread the tube into the pipe without hitting debris around the
riser.
The smaller tube will be surrounded by
a stopper to keep oil from leaking into the sea. The tube will then siphon the
crude to a tanker at the surface, though BP declined to estimate how much oil
the tube will be able to collect.
New claims for unemployment insurance
inch down
WASHINGTON (AP) -- New claims for
unemployment benefits dipped for the fourth straight week, a sign the job
market is improving at a slow but steady pace.
Employers, encouraged by a recovering
economy, are hiring again. But they are not doing it at the level needed to
reduce the jobless rate.
The Labor Department said Thursday that
initial claims dropped last week by 4,000 to a seasonally adjusted 444,000.
That's slightly above analysts' estimates, according to Thomson Reuters. The
previous week's total was revised up to 448,000.
Kohl's 1Q net income rises on higher
revenue
NEW YORK (AP) -- Department store
operator Kohl's Corp.'s first-quarter net income rose 45 percent as shoppers
spent more at its stores, particularly for shoes and home goods. But the
company's CEO said that consumers' buying remains below what it was before the
Great Recession.
The retailer raised its full-year
guidance, but even the higher forecast for the second quarter and full year
were short of analysts' expectations. Its shares fell $3.34, or 5.8 percent, to
close at $53.81.
Kohl's said its net income rose to $199
million, or 64 cents per share, in the three months ended May 1, up from $137
million, or 45 cents per share, a year ago.
Ford CEO Mulally tells shareholders
automaker's improvement will continue into 2011
WILMINGTON, Del. (AP) -- Ford's chief
executive told shareholders that the second-largest U.S. automaker will see
"continuing improvement" into 2011 but wouldn't say when the company
might reinstate a dividend.
Alan Mulally also said the company
expects to be "solidly profitable" in 2010, a prediction that was
first issued two weeks ago. Before that, Ford had said it didn't expect solid
profits until 2011.
The predictions follow four straight
profitable quarters for Ford, which has rebounded better than most rivals from
a historic plunge in auto sales during the recession. Ford posted staggering
losses in 2008 and early 2009.
Chrysler concerned about GM's financing
plans
WASHINGTON (AP) -- Chrysler raised
concerns Thursday about reports that rival
CEO Sergio Marchionne told reporters
that Chrysler was wary of being put at a competitive disadvantage with
Online ad sales rose 7 percent to $5.9B
in 1Q
NEW YORK (AP) -- Internet ad sales are
on the mend as first-quarter revenue rose 7 percent, marking the second
straight quarter of increase, according to the Interactive Advertising Bureau.
The revenue of $5.9 billion marks the
highest for a first quarter, which is typically a slower period following high
ad spending over the holidays.
Thursday's study by the IAB and
PricewaterhouseCoopers says retailers are spending more on Internet ads as
Americans go back shopping. Retailers accounted for 20 percent of all online
marketing in 2009.
The rebound came after online ad
revenue slumped for the first three quarters of 2009.
Adobe makes 'love' not war in dispute
with Apple
NEW YORK (AP) -- Adobe is firing back
at Apple with love.
Adobe Systems Inc. is countering
Adobe is running advertisements in
major newspapers saying "We Love Apple" - with a bright red heart in
place of love.
"What we don't love," it
continues, "is anybody taking away your freedom to choose what you create,
how you create it, and what you experience on the Web."
By The Associated Press
The Dow Jones industrial average fell
113.96, or 1.1 percent, to 10,782.95. The Standard & Poor's 500 index fell
14.23, or 1.2 percent, to 1,157.44, while the
Natural gas prices rose 5.5 cents to
settle at $4.339 per 1,000 cubic feet of gas on the New York Mercantile
Exchange. Prices have jumped about 9 percent since May 5.
Oil prices continued to slide Thursday,
following the stock market lower. Benchmark crude for June delivery dropped
$1.25 to settle at $74.40 a barrel on the Nymex. Prices have fallen about 15
percent in the last 10 days.
In other Nymex trading in June
contracts, heating oil fell 2.72 cents to settle at $2.1319 a gallon, gasoline
lost 1.53 cents to settle at $2.1951 a gallon.
In London, Brent crude was down $1.09
to settle at $80.51 on the ICE futures exchange.