WASHINGTON (AP) --
Nationwide home sales may have finally hit bottom, new data shows, but a host
of thorny problems are hindering any recovery.
Sales of previously occupied
homes rose by 2.4 percent from April to May -- the third monthly increase this
year -- but the results missed analysts' expectations, the National Association
of Realtors said.
Home sellers are still
competing against a growing number of bargain-priced foreclosures, buyers are
paying higher mortgage rates and new rules for property appraisers are delaying
or scuttling many deals.
GM to cut 4,000 more
white-collar jobs by year end
DETROIT (AP) -- About 4,000
more salaried workers at General Motors Corp. will lose their jobs by the end
of the year as the automaker continues to downsize.
The company notified its
more than 27,000 U.S. white-collar workers by e-mail Tuesday that that it will
offer standard severance packages, and employees near retirement age will have
the opportunity to retire early, spokesman Tom Wilkinson said.
Some involuntary cuts will
be necessary, Wilkinson said, as GM tries to shrink its U.S. salaried work
force to around 23,500 by year's end.
Stocks close mixed as
investors wait on the Fed
NEW YORK (AP) -- Investors
are holding off making big moves while they wait for the Federal Reserve.
Stocks ended mixed but
little changed Tuesday, one day after a sell-off. Traders are looking for the
central bank to outline its expectations for the economy and signal when it
might raise interest rates. The Fed's two-day meeting ends Wednesday.
Traders reacted coolly to a
report from the National Association of Realtors that May sales of existing
homes rose 2.4 percent. The increase was smaller than economists' forecast for
2.8 percent, and not enough to alleviate investors' anxiety about economic
reports later in the week on durable goods orders, new home sales and personal
spending.
Boeing again delays initial
787 test flight
UNDATED (AP) -- Boeing Co.
has again delayed the first test flight of its long-awaited 787 jetliner, a
hot-selling aircraft seen as pivotal for the company and one that could
transform the way it builds airplanes in the future.
The Chicago-based aerospace
giant said Tuesday it needs to reinforce small areas near the connection of the
wings and fuselage before conducting the test flight, which Boeing had insisted
would occur before July. A revised schedule for the flight, as well as first
deliveries to customers, will not be announced for several weeks.
The announcement comes as
Boeing, the world's second-largest commercial airplane maker, and European
archrival Airbus SA grapple with slumping orders for their jets as the
recession dampens demand for air travel and cargo services.
Madoff lawyer seeks 12-year
sentence for client
NEW YORK (AP) -- Bernard
Madoff's lawyer has told a judge scheduled to sentence the disgraced financier
next week that 12 years in prison will be sufficient punishment for the man who
swindled tens of billions of investors' dollars in one of history's biggest
frauds.
But a Colorado woman who
says her family was ruined financially by Madoff's thievery said a sentence
that short might only work "if he was hung by his toes" the whole
time.
The 71-year-old Madoff faces
up to 150 years in prison after pleading guilty on March 12 to 11 felony counts
including securities fraud and perjury. He admitted operating a massive Ponzi
scheme for decades. Federal sentencing guidelines call for Madoff to receive a
life sentence.
Oracle tops forecasts
despite sales, profit dip
SAN FRANCISCO (AP) --
Software maker Oracle Corp.'s results topped Wall Street's forecast for the
latest quarter Tuesday, despite a 5 percent drop in sales and a 7 percent
decline in profit.
The company blamed the
declines on the effects of a stronger dollar -- which makes deals done in other
currencies worth less. Companies also have been shelling out less for new
software because of the recession. Still, Oracle's chief financial officer,
Jeff Epstein, said in a statement that Oracle executed "substantially
better" than the company expected.
Oracle, which is based in
Redwood Shores, Calif., said after the market closed Tuesday that its net
income from March through May was $1.89 billion, or 38 cents per share. Last
year, it was $2.04 billion, or 39 cents per share.
TJX reaches settlement with
states on data theft
NEW YORK (AP) -- The parent
company of retailers T.J. Maxx and Marshall's will pay $9.75 million in a
settlement with multiple states related to a massive data theft that exposed
tens of millions of payment card numbers.
Framingham, Mass.-based TJX
Cos. said Tuesday it will pay $2.5 million to create a data security fund for
states as well as a settlement amount of $5.5 million and $1.75 million to cover
expenses related to the states' investigations. But TJX stressed that it
"firmly believes" that it did not violate any consumer protection or
data security laws.
TJX said the settlement's
costs are already accounted for in a 2007 reserve it created.
Weak dollar gives oil yet
another boost
COLUMBUS, Ohio (AP) -- The
weakened dollar boosted oil prices once again Tuesday, ending a two-day slump.
Benchmark crude for August
delivery rose $1.74 to settle at $69.24 a barrel on the New York Mercantile
Exchange.
There has been some optimism
about an economic rebound, which would tend to lift energy markets, but the
value of the U.S. currency is playing an even bigger role in prices for
everything from oil to gasoline on Nymex.
Crude is priced in the U.S.
currency and a lot of money has flooded into the market with big investors
using oil as a hedge against inflation. The dollar fell 2.37 cents against the
euro Tuesday.
Huntsman gets $1.7B
settlement from banks
THE WOODLANDS, Texas (AP) --
Huntsman Corp. said Tuesday two banks will pay it a $1.7 billion settlement
over its accusation they schemed to scuttle a $6.5 billion buyout of the
chemicals maker last year.
The agreement with
Switzerland's Credit Suisse and Germany's Deutsche Bank ends a trial in Texas
state court on fraud charges, Huntsman said.
Under terms of the
settlement, the banks will pay Huntsman $620 million in cash and provide $500
million in secured loan financing, $600 million in unsecured note financing and
$12 million in legal costs.
Ford, Nissan, Tesla's
electric plans get $8B jolt
DEARBORN, Mich. (AP) --
Cultivating the next generation of fuel-efficient vehicles, the Obama
administration said Tuesday it would lend $5.9 billion to Ford Motor Co. and
about $2.1 billion to Nissan Motor Co. and Tesla Motors Inc. in a
government-industry partnership to build green cars.
Energy Secretary Steven Chu
said the three automakers would be the first beneficiaries of a $25 billion
fund to develop fuel-efficient vehicles. The loans to Ford will help the
company upgrade factories in Illinois, Kentucky, Michigan, Missouri and Ohio to
produce 13 fuel-efficient vehicles.
By The Associated Press
The Dow Jones industrial
average fell 16.10, or 0.2 percent, to 8,322.91.
The Standard & Poor's
500 index rose 2.06, or 0.2 percent, to 895.10, and the Nasdaq composite index
fell 1.27, or 0.1 percent, to 1,764.92.
Benchmark crude for August
delivery rose $1.74 to settle at $69.24 a barrel on the New York Mercantile
Exchange.
In other Nymex trading,
gasoline for July delivery rose 3.35 cents to settle at $1.8932 a gallon and
heating oil rose 4.15 cents to settle at $1.769. Natural gas for July delivery
fell 6.4 cents to settle at $4.007 per 1,000 cubic feet.
In London, Brent prices rose
$1.82 to settle at $68.80 a barrel on the ICE Futures exchange.