AP Business Highlights

Stocks pare gains; Higher crude boosts energy

 

NEW YORK (AP) -- Investors waiting for earnings reports to flow in traded cautiously Monday, giving up early gains and leaving the market narrowly mixed. The Dow Jones industrials reached a new 2009 trading high, edging closer to 10,000. The Dow closed up 20.86, or 0.2 percent, at 9,885.80.

Volume was light because of the Columbus Day holiday. Bond markets were closed and there were no economic reports.

A weaker dollar and a spike in oil prices above $73 drove energy and materials prices higher, but weakness in technology and industrial shares held the market back. Stocks got an early boost from a better-than-expected profit report from Dutch company Royal Philips Electronics. That sent Britain's leading stock indicator to its highest level in a year.

American is first woman to win Nobel in economics

WASHINGTON (AP) -- Elinor Ostrom became the first woman to win a Nobel Prize in economics, honored along with fellow American Oliver Williamson on Monday for analyzing economic governance -- the rules by which people exercise authority in companies and economic systems.

Ostrom was also the fifth woman to win a Nobel award this year -- a record for the prestigious honors.

It was an exceptionally strong year for the United States, with 11 American citizens -- some of them with dual nationality -- among the 13 Nobel winners, including President Barack Obama, who won the Nobel Peace Prize on Friday.

Oil, fuel prices jump as dollar, temperatures fall

UNDATED (AP) -- Energy prices rose Monday as an October chill across much of the U.S. sent thermometers plummeting along with the weakening U.S. currency.

Benchmark crude for November delivery gained $1.50 to settle at $73.27 on the New York Mercantile Exchange. The last time crude closed above $73 was in late August with the U.S. driving season in full swing.

Heating oil rose 4.16 cents to settle at $1.8944 a gallon and natural gas jumped 11 cents to settle at $4.88 per 1,000 cubic feet.

Even though there are enormous supplies of all three due to the recession and there is little chance of a shortage in the near term, crude prices have risen 5 percent in three trading days.

Data and contacts vanish from Sidekick phones

NEW YORK (AP) -- Owners of Sidekick phones may have lost all the personal information they put on the device, including contact numbers, because of a failure of servers that remotely stored the data.

The incident is a huge blow to the reputation of the Sidekick and is a reminder of the dangers of trusting a single provider to safeguard information.

The phones are made by a Microsoft Corp. subsidiary and sold by T-Mobile USA, which says many Sidekick owners' information is "almost certainly" gone. T-Mobile is offering customers $20 to refund the cost of one month of data usage on the phone.

FINRA fines Citigroup $600K over tax trading plans

WASHINGTON (AP) -- Citigroup Inc. has agreed to pay a $600,000 fine and be censured to settle regulators' charges that it failed to supervise complex stock-trading strategies aimed at reducing the bank's potential tax bill.

The Financial Industry Regulatory Authority, the brokerage industry's self-policing organization, on Monday announced the civil fine against the bank's division Citigroup Global Markets Inc. Citigroup did not admit or deny FINRA's allegations.

Citigroup failed to supervise and control trading, and to prevent improper internal trades as well as those with some of the bank's trading partners, FINRA said. The transactions in question occurred between 2000 and 2005.

Survey: Most economists see recovery beginning

NEW YORK (AP) -- More than 80 percent of economists believe the recession is over and an expansion has begun, but they expect the recovery will be slow as worries over unemployment and high federal debt persist.

That consensus comes from leading forecasters in a survey by the National Association for Business Economics released Monday.

The forecasters upgraded the economic outlook for the next several quarters, but cautioned that unemployment rates and the federal deficit are expected to remain high through the next year. Forecasters now expect the economy, as measured by gross domestic product, to advance at a 2.9 percent pace in the second half of the year, after falling for four straight quarters for the first time on records dating to 1947. They expect a 3 percent gain in 2010.

Chicago Cubs file Chapter 11 to speed team's sale

NEW YORK (AP) -- The Chicago Cubs filed for Chapter 11 bankruptcy protection Monday, a step that will allow their owner to sell the baseball team in an $845 million deal. The filing in Wilmington, Del., was anticipated and is expected to lead to a brief stay in Chapter 11 for the Cubs. A hearing was scheduled for Tuesday in front of the judge who has been handling the bankruptcy of the Cubs' owner, Tribune Co.

The Cubs' filing is part of the Tribune Co.'s plans to sell the team, Wrigley Field and related properties to the family of billionaire Joe Ricketts, the founder of Omaha, Neb.-based TD Ameritrade.

Tribune, which also owns the Chicago Tribune and the Los Angeles Times, filed for bankruptcy protection in December, but the Cubs were not covered in the filing.

Philips third quarter net profit triples to $256M

AMSTERDAM (AP) -- Royal Philips Electronics NV reported net profit of euro174 million ($256 million) for the third quarter on Monday, three times the depressed levels of a year ago, due to cost-cutting measures.

In the same period in 2008, the world's largest lighting manufacturer had reported profits of euro57 million, including around euro80 million in net restructuring and impairment charges.

Despite the increase in profit, the company said sales fell 11 percent to euro5.62 billion in the third quarter of 2009, as demand continued to lag for consumer electronics, high-end health care equipment and many kinds of lights, notably those used in the automobile industry.

Onyx Pharma will pay up to $851M for Proteolix

NEW YORK (AP) -- Onyx Pharmaceuticals Inc. said Monday it will buy cancer drug developer Proteolix Inc. in a deal that could be worth as much as $851 million.

Onyx shares advanced $1.36, or 5 percent, to close at $28.26.

Onyx will pay $276 million upfront for the privately held South San Francisco, Calif.-based company, and in the process it gains Proteolix's cancer drug candidate carfilzomib, which is being tested as a treatment for multiple myeloma, non-Hodgkin lymphoma, and solid tumors. Its drugs are designed to trigger cancer cell death with minimal damage to the rest of the patient's body.

Apple director Levinson leaves Google's board

MOUNTAIN VIEW, Calif. (AP) -- Google Inc. said Monday that Arthur Levinson has resigned from the Internet search leader's board, averting a potential showdown with government regulators over his overlapping job as a director for computer and gadget maker Apple Inc.

The Federal Trade Commission had been investigating whether Levinson's double duty on the boards of both Google and Apple would lessen competition between the companies as they increasingly collide in the same markets.

The same issue had dogged Google Chairman Eric Schmidt until he stepped down from Apple's board two months ago.

By The Associated Press

The Dow closed up 20.86, or 0.2 percent, at 9,885.80. The Standard & Poor's 500 index rose 4.70, or 0.4 percent, to 1,076.19. Both indexes had their highest close in a year.

The Nasdaq composite index fell 0.14, or 0.01 percent, to 2,139.14.

Benchmark crude for November delivery gained $1.50 to settle at $73.27 on the New York Mercantile Exchange.

Heating oil rose 4.16 cents to settle at $1.8944 a gallon and natural gas jumped 11 cents to settle at $4.88 per 1,000 cubic feet.

In other Nymex trading, gasoline for November delivery gained 3.1 cents to finish at $1.799 a gallon. In London, Brent crude rose $1.36 to settle at $71.36 on the ICE Futures exchange.

 

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