WASHINGTON (AP) -- The
Federal Reserve delivered a vote of confidence in the U.S. economy Wednesday,
saying it would slow the pace of an emergency rescue program as the recession
appears to be ending. The central bank also held a
key banking lending rate at a record low near zero and again pledged to keep it
there for "an extended period" to nurture an anticipated recovery. Fed Chairman Ben Bernanke
and his colleagues said barometers suggest that "economic activity is
leveling out." That marked an upgrade from their last meeting in June when
Fed policymakers merely observed that the recession was easing because the pace
of the economy's contraction was slowing. June trade deficit rises,
imports and exports up WASHINGTON (AP) -- The U.S.
trade deficit edged up in June as imports rose for the first time in 11 months
and exports rose for the second straight month, confirming that the global
recession is easing its grip. The first back-to-back gains
for exports in a year were especially good news for America's manufacturing
sector. Those companies benefited from higher shipments of semiconductors,
aircraft and telecommunications equipment. The Commerce Department said
the deficit rose 4 percent to $27 billion, from May's $26 billion. The May
imbalance had been the lowest deficit in nearly a decade. Stocks jump as Fed raises
view of economy NEW YORK (AP) -- A more
upbeat Federal Reserve is reassuring investors that they've been making the
right bets. Stocks bounded higher
Wednesday after the central bank said the economy appears to be "leveling
out" rather than simply shrinking at a slower rate. The Fed's more
positive take on the economy compared with its assessment in June wasn't
surprising but it still bolstered hopes that the economy is in fact rebounding. Wednesday's advance
restarted the market's summer rally after a pause on Monday and Tuesday. Major
market indexes jumped more than 1 percent, including the Dow Jones industrial
average, which jumped 120 points to 9,361.61. Macy's profit falls in 2Q;
company raises outlook NEW YORK (AP) -- Macy's Inc.
boosted its profit outlook after reporting that its second-quarter earnings
beat expectations because it benefited from efforts to streamline its
structure. Macy's earned $7 million, or
2 cents per share, in the quarter that ended Aug. 1. That compares with $73
million, or 17 cents per share, in same period last year. Excluding restructuring
charges related to division consolidations and its efforts to tailor merchandise
to local markets, the company earned 20 cents per share, exceeding the profit
of 15 cents per share that analysts surveyed by Thomson Reuters forecast on
average. Treasurys fall as Fed plans
to ease debt purchases NEW YORK (AP) -- Long-term
Treasurys fell Wednesday after the Federal Reserve said it would wind down its
purchases of government debt and as a surge in stocks lured investors away from
safe-haven assets. Investors moved out of
Treasurys, sending yields higher after the central bank said it would slow its
buying of government debt in the coming weeks in order to hit its target of
purchasing $300 billion in Treasurys by the end of October. The Fed's more
upbeat tone on the economy, meanwhile, spurred buying in the stock market,
further chipping away at demand for the safety of Treasurys. US, Swiss keep deal on
secret accounts under wraps MIAMI (AP) -- The Swiss and
U.S. governments announced a deal Wednesday to settle American demands for the
identities of suspected tax dodgers, despite Switzerland's vaunted bank
secrecy. But they kept all details under wraps, including how many of the
52,000 names sought by the IRS from banking giant UBS AG will be revealed. Depending on the scale of
the deal, it could be a new blow to Switzerland's reputation as a safe place to
hide assets from the tax man back home. Switzerland has long been
under pressure from European neighbors and the U.S. to open its bank records
for foreign tax authorities. WTO win could open China's
door to US companies GENEVA (AP) -- The United
States has won a wide-ranging ruling against Chinese trade practices that could
provide massive market opportunities for American makers of everything from CDs
and DVDs to music downloads and books. The verdict released
Wednesday at the World Trade Organization in Geneva finds definitively against
China for forcing American media producers to route their business in China
through Chinese state-owned companies. The WTO victory comes as
President Barack Obama is being pressed to be tough on trade rules with China,
which many Democrats in the U.S. Congress blame for America's soaring trade
deficits and lost manufacturing jobs. The case is sensitive also for the
Chinese government, which asserts the right to keep out content it finds
objectionable. Sara Lee shares plunge on
weak outlook, 4Q loss PORTLAND, Ore. (AP) -- Sara
Lee Corp. narrowed its loss in the fiscal fourth-quarter but gave a weak
outlook for the year, sending shares of the food maker plunging Wednesday. Major food makers like Kraft
Foods Inc. and Kellogg Co. have had their challenges but generally have
benefited from of people keeping their spending focused on necessities like
food and eating more meals at home. The maker of Sara Lee
breads, Jimmy Dean sausages and other products saw its revenue shrink by 10
percent to $3.16 billion, as growth in its North American business was offset
by the negative impact of currency exchange on its international business. Oil rises as US imports
jump, China buys crude NEW YORK (AP) -- Oil prices
rose Wednesday as the market reacted favorably to signs of an increase in
future demand in China and a further loosening of the recession's grip in the
U.S. That trumped data showing a
continued slump in the nation's appetite for oil. Benchmark crude for
September delivery climbed 71 cents to settle at $70.16 a barrel on the New
York Mercantile Exchange. In London, Brent prices added 43 cents to settle at
$72.89 a barrel on the ICE Futures exchange. Toll Bros. reports increase
in signed contracts UNDATED (AP) -- Luxury
homebuilder Toll Brothers Inc. gave investors another shot of optimism about
the housing market recovery, saying it posted the first annual increase in
signed contracts for new homes in four years. Toll said Wednesday that new
home contracts rose 3 percent from the third fiscal quarter last year, and the
number was up a surprising 44 percent from the second fiscal quarter this year.
Demand was so robust the company has been able to scale back the incentives it
offered to get buyers in the door. Only 9 percent of buyers
backed out -- the lowest cancellation rate in three years. By The Associated Press The Dow rose 120.16, or 1.3
percent, to 9,361.61. The Standard & Poor's
500 index rose 11.46, or 1.2 percent, to 1,005.81, while the Nasdaq composite
index gained 28.99, or 1.5 percent, to 1,998.72. Benchmark crude for
September delivery climbed 71 cents to settle at $70.16 a barrel on the New
York Mercantile Exchange. In London, Brent prices added 43 cents to settle at
$72.89 a barrel on the ICE Futures exchange. In other Nymex trading,
gasoline for September delivery lost 1.69 cents to settle at $2.0253 a gallon
and heating oil gave up 1.96 cents to settle at $1.8921 a gallon. Natural gas
for September delivery also lost 6.2 cents to settle at $3.479 per 1,000 cubic
feet.