WASHINGTON (AP) -- New home
sales rose last month at the fastest clip in more than eight years as buyers
eagerly took advantage of bargain prices -- a clear sign, economists said, that
the real estate market may finally be bouncing back. Historically low interest
rates and a federal tax credit for first-time homeowners also helped push home
sales to their highest level since November, the Commerce Department reported
Monday. While home prices are still
falling around the country, sales have now risen for three months in a row.
Construction of new homes is at the busiest level since last fall. And home
resales rose in June for the third straight month. New home sales rose 11
percent in June to a seasonally adjusted annual rate of 384,000, from an upwardly
revised May rate of 346,000, the Commerce Department reported Monday. Shares of
homebuilders surged on the news. Verizon 2Q profit falls,
tops view, plans job cuts NEW YORK (AP) --
Cost-cutting at Verizon Communications Inc.'s wireline business failed to keep
pace with falling revenues as the nation's largest wireless carrier reported a
21 percent drop in second-quarter profit and announced further job cuts. The company said Monday it
will cut more than 8,000 employee and contractor jobs before the end of the
year in the wireline business, speeding up its efforts to keep costs in line,
according to chief financial officer John Killian. In recent years, Verizon has
balanced layoffs in wireline with hiring in wireless, but Chief Operating
Officer Denny Strigl said that would not be the case this time. Obama declares new era of
cooperation with China WASHINGTON (AP) -- President
Barack Obama declared a new era of "cooperation, not confrontation"
with China on Monday, even though two days of high-level talks were not
expected to resolve differences over the two nations' yawning trade gap and
China's unease over soaring U.S. budget deficits. The Obama administration
pledged to get control of the deficits once the economic crisis is resolved. It
also pressed China to reshape its economy to rely more on domestic demand and
less on exports that drive up the U.S. trade deficit. Both sides sought to
underscore the importance of the revamped Strategic and Economic Dialogue with
Obama delivering a major policy address to welcome a sizable Chinese delegation
of 150 diplomats. Stocks edge higher on mixed
signs about economy NEW YORK (AP) -- Investors
are still building on a stock market rally even when the news isn't all great. Stocks edged higher Monday
after zigzagging in subdued trading on mixed economic and corporate earnings
reports. The Dow Jones industrial
average rose only 15 points. But modest moves in the market's indicators belie
larger forces at work: Investors aren't dumping stocks, even in the face of
downbeat news. Disappointing earnings from
Verizon Communications Inc., Aetna Inc. and Corning Inc. kept the market's
gains in check, adding another pause to a powerful rally that has sent major
indexes rocketing 11 percent in just two weeks. SEC rule on 'naked'
short-selling now permanent WASHINGTON (AP) -- Federal
regulators on Monday made permanent an emergency rule aimed at reducing abusive
short-selling, put in at the height of last fall's market turmoil. The Securities and Exchange
Commission announced that it took the action on the rule targeting so-called
"naked" short-selling, which was due to expire Friday. Short-sellers bet against a
stock. They generally borrow a company's shares, sell them, and then buy them
when the stock falls and return them to the lender -- pocketing the difference
in price. "Naked"
short-selling occurs when sellers don't even borrow the shares before selling
them, and then look to cover positions sometime after the sale. At the same time, the SEC has
been considering several new approaches to reining in rushes of regular
short-selling that also can cause dramatic plunges in stock prices. Silverman leaving NBC to
head multimedia venture NEW YORK (AP) -- Ben
Silverman has left NBC after two years as entertainment chief of the
hit-starved network and is heading back to the content-producing role where he
once found success. He is starting a new company
with an initial investment from media mogul Barry Diller's IAC/InterActiveCorp,
and already has a consultancy deal in place with NBC. NBC had hoped Silverman
could bring the magic touch he had with his Reveille production studio to turn
around the fourth-pace network. Yet in two years marred by a
writers' strike and a cratering economy, Silverman wasn't a game-changer at
NBC. His legacy is likely to be more about striking deals with advertisers than
improving NBC's competitive position. Aetna 2Q profit falls on
higher-than-expected cost INDIANAPOLIS (AP) -- Health
insurer Aetna Inc. chopped its 2009 profit outlook for the second time since
June on Monday and said its second-quarter profit sank 28 percent, as medical
costs rose faster than it expected. Hartford, Conn.-based Aetna
blamed health care providers and the slumping economy for costs that exceeded what
the managed care company expected when it set premiums. Aetna said the amount
of work providers are doing on patients per diagnosis has increased, as they
look to squeeze out more revenue. The increase in costs for
its commercial business -- which includes private employer-sponsored coverage
and individual policies -- led to bigger bills for emergency room, urgent care,
laboratory and preventive services. Agilent Technologies to buy
Varian for $1.5B NEW YORK (AP) -- Scientific
instrument maker Agilent Technologies said Monday it will buy Varian Inc. for
$1.5 billion in cash, or $52 per share. Agilent is paying a premium
of 33 percent to Friday's $39.20 closing price for Varian. Varian, of Palo
Alto, Calif., reported $1.01 billion in revenue in fiscal 2008. Scientific
instruments accounted for $838.7 million in sales and the remainder came from
vacuum technologies. The boards of both companies
approved the deal, which is expected to close by the end of the year pending
approval from shareholders and regulators. Santa Clara, Calif.-based
Agilent said the acquisition gives it more products in the life sciences,
environmental and materials businesses, and believes the deal will add to its
profits in 2010. Honeywell 2Q earns fall 38
percent WASHINGTON (AP) -- Honeywell
International Inc. said Monday its second quarter earnings dropped 38 percent
as the company's businesses in troubled sectors like automobiles and
construction continued to drag down its results. The company said it doesn't
expect any recovery this year from the recession, as customers such as airlines
are expected to keep holding off on the purchase of Honeywell parts as they
struggle with their own financial problems. The Morristown, N.J.-based
diversified manufacturer earned $450 million, or 60 cents per share, in the
three months ended June 30, down from $723 million, or 96 cents per share, a
year ago but matched the expectations of analysts polled by Thomson Reuters. Oil prices settle higher
again amid mixed data Oil prices pushed higher
again on Monday, as stock markets dipped with mixed signals on the economy. Benchmark crude for
September delivery rose 33 cents to settle at $68.38 a barrel on the New York
Mercantile Exchange. Oil has rebounded by almost
$10 a barrel this month as stronger economic results from the U.S. and China
boosted investor optimism along with better than expected second-quarter
earnings results from many companies. By The Associated Press The Dow Jones industrial
average rose 15.27, or 0.2 percent, to 9,108.51, its first finish above the
9,100 mark since Nov. 5. The blue chips crossed zero 27 times during trading
but spent almost the entire day with a loss. The Dow has been up 10 of the past
11 trading days. The broader Standard &
Poor's 500 index rose 2.92, or 0.3 percent, to 982.18, while the Nasdaq
composite index rose 1.93, or 0.1 percent, to 1,967.89. Benchmark crude for
September delivery rose 33 cents to settle at $68.38 a barrel on the New York
Mercantile Exchange. In other Nymex trading,
gasoline for August delivery rose 1.88 cents to settle at $1.9347 a gallon and
heating oil gained 1.53 cents to settle at $1.7966. Natural gas for August
delivery fell 9.1 cents to $3.604 per 1,000 cubic feet. In London, Brent prices rose
49 cents to $70.81 a barrel on the ICE Futures exchange. Top Stories