Stocks turn higher on jump in energy demand
NEW YORK (AP) -- The stock
market extended a streak of erratic trading Wednesday, rebounding from early
losses and rising moderately after a drop in oil inventories lifted hopes for
an economic recovery.
The day, which began with a
sharp loss driven by a big drop in China's biggest stock market, followed a
trading pattern seen in markets around the world this week. Stocks have
alternately advanced and retreated as investors shuttle between worries about
the economy's challenges, namely consumer spending and high unemployment, and
nascent signs of healing.
Although stocks recovered,
Treasury prices held on to most of their gains. Government debt is a safe-haven
investment in a struggling economy.
The Dow Jones industrials
rose 61.22, or 0.7 percent, to 9,279.16.
Not so secret: UBS to
divulge Swiss account names
WASHINGTON (AP) -- The U.S.
pulled back the veil on Switzerland's famed tradition of banking secrecy
Wednesday, winning an agreement for banking giant UBS AG to disclose the names
of 4,450 American clients suspected of hiding assets in Swiss accounts.
The news is expected to prod
thousands more UBS clients in America to voluntarily disclose their financial
details to the Internal Revenue Service, lest they be pursued later.
The accounts held $18
billion at one time, though many have since been closed, said IRS Commissioner
Doug Shulman.
The Swiss, known worldwide
for keeping bank accounts secret, said UBS had no real choice in turning over
the names.
Oil prices jump on surprise
draw down of US supply
NEW YORK (AP) -- Oil prices
spiked Wednesday after the government reported a huge draw of crude oil from
U.S. stockpiles.
The report was surprising
because the demand for energy has been knocked down so badly by the recession.
Crude withdrawn from storage facilities last week wiped out a buildup in
supplies over the past two weeks.
Benchmark crude for
September delivery jumped $3.23 to settle at $72.42 a barrel on the New York
Mercantile Exchange. That contract expires Thursday, and most of the trading
has already shifted to the October contract, which climbed $2.74 to settle at
$73.83.
If the October contract ends
the week at that price, it would set a new high for 2009.
LaHood says car dealers will
'get their money'
WASHINGTON (AP) --
Transportation Secretary Ray LaHood assured car dealers Wednesday that they
will be reimbursed for the money they have fronted to customers buying cars
under the Cash for Clunkers program, responding to complaints over a backlog of
rebate payments.
Dealers must pay the rebates
out of pocket and wait for reimbursement from the federal government. Some car
dealers have said their reimbursement requests have not been approved, leading
to a cash crunch at their businesses. Dealers typically borrow money to put new
cars on their lots and must repay lenders within a few days of a sale.
LaHood's assurances came as
a growing number of dealers ceased offering the program. A group representing
New York metro dealerships said Wednesday that that hundreds of its members
have withdrawn from Cash for Clunkers, citing delays in getting reimbursed.
Deere posts 27 pct decline
in 3Q profit
Deere & Co. posted a 27
percent decline in third-quarter profit Wednesday as the slumping global
economy continued to depress sales of its tractors, bulldozers and other
products. But the results easily beat Wall Street expectations.
The world's largest maker of
farm equipment also trimmed its sales projections for 2009, saying it expects
the biggest single-year sales drop in at least 50 years, but reiterated an annual
profit forecast of $1.1 billion. Cost cuts and relatively healthy agricultural
equipment sales in North America are expected to bolster results.
Deere, which also makes
construction and forestry equipment, has faced dwindling demand for its
products as farmers and other customers rein in spending due to tough economic
conditions and weaker crop prices.
Germany jumps in the race
for viable electric car
BERLIN (AP) -- Forget that
they're cramped, have a limited driving range and outstrip the average consumer's
pocketbook. The race is on to create a viable electric car.
Germany -- home to brands
including Volkswagen, Porsche and BMW -- became the latest country to fast
track development of electric cars, the government approving a plan Wednesday
that aims to put 1 million of them on the road by 2020.
The goal is ambitious. Of
the 41 million cars in the country, only 1,452 are electric, and Germany is
entering an increasingly congested field.
To help bring Germany up to
speed, the government plans to spend some euro500 million ($705 million) on the
plan over the next three years -- including euro115 million ($164 million) to
establish eight test regions examining how the cars could best be introduced.
Judge rules for Merck on
allergy drug's patent
TRENTON, New Jersey (AP) --
The patent for Merck & Co.'s blockbuster allergy and asthma drug is valid,
a federal judge ruled Wednesday, handing the drugmaker a crucial victory in its
2 1/2-year legal battle to block a rival from selling a cheaper generic version.
U.S. District Judge Garrett
E. Brown Jr. upheld the patent for Singulair, which as Merck's top-selling drug
provides about one-sixth of its annual revenue. Brown also issued an injunction
that prevents Israel's Teva Pharmaceuticals from selling generic Singulair, a
long-term drug to prevent asthma and allergy flare-ups, in the U.S. until the
patent expires in August 2012.
Bruce Kuhlik, general
counsel for Merck, said in a statement that the ruling was appropriate and that
the company vigorously defends its patent rights.
BJ's Wholesale 2Q profit
drops but beats estimates
PORTLAND, Ore. (AP) -- BJ's
Wholesale Club said Wednesday that wet weather, food deflation and weak
consumer spending hurt its second-quarter results, but the warehouse club chain
beat analysts' estimates and raised its full-year profit outlook.
The Natick, Mass.-based
company earned $35.1 million, or 64 cents per share, for the quarter ended Aug.
1, down from $36.5 million, or 61 cents per share, a year earlier. The year-ago
results were boosted by a $2 million income-tax settlement that added 3 cents
per share.
Revenue fell roughly 5
percent to $2.57 billion.
Analysts surveyed by Thomson
Reuters had forecast profit of 62 cents per share on revenue of $2.56 billion,
on average.
Glaxo used ghostwriting
program to promote Paxil
WASHINGTON (AP) -- Drugmaker
GlaxoSmithKline used a sophisticated ghostwriting program to promote its
antidepressant Paxil, allowing doctors to take credit for medical journal
articles mainly written by company consultants, according to court documents
obtained by The Associated Press.
An internal company memo
instructs salespeople to approach physicians and offer to help them write and
publish articles about their positive experiences prescribing the drug.
The document was uncovered
by the Baum Hedlund PC law firm of Los Angeles, which is representing hundreds
of former Paxil users in personal injury and wrongful death suits against
GlaxoSmithKline. The firm alleges the company downplayed several risks
connected with its drug, including increased suicidal behavior and birth
defects.
Wells Fargo sued over home
equity lines of credit
NEW YORK (AP) -- The banking
unit of Wells Fargo & Co. is facing a lawsuit claiming it illegally reduced
the size of customers' home equity lines of credit.
The suit, which was filed in
Illinois, claims Wells Fargo failed to accurately assess the value of
customers' houses before deciding to cut the size of their credit lines. San
Francisco-based Wells Fargo is being accused of using unreliable computer
models that wrongly valued home prices too low to justify cutting the size of
customers' loans.
By The Associated Press
The Dow Jones industrials
rose 61.22, or 0.7 percent, to 9,279.16.
The Standard & Poor's
500 index rose 6.79, or 0.7 percent, to 996.46, while the Nasdaq composite
index rose 13.32, or 0.7 percent, to 1,969.24.
Benchmark crude for
September delivery jumped $3.23 to settle at $72.42 a barrel on the New York
Mercantile Exchange.
In other Nymex trading,
gasoline for September delivery climbed 3.44 cents to settle at $2.0346 a
gallon and heating oil added 5.37 cents to settle at $1.9187. Natural gas for
September delivery increased 2.3 cents to settle at $3.119 per 1,000 cubic
feet.
In London, Brent prices
increased $2.22 to settle at $74.59 a barrel on the ICE Futures exchange.