WASHINGTON (AP) -- The
unemployment rate has hit double digits for the first time since 1983 -- and is
likely to go higher. The 10.2 percent jobless rate for October shows how weak
the economy remains even though it is growing. The rising jobless rate could
threaten the recovery if it saps consumers' confidence and makes them more
cautious about spending as the holiday season approaches.
The October unemployment
rate -- reflecting nearly 16 million jobless people -- jumped from 9.8 percent
in September, the Labor Department said Friday. The job losses occurred across
most industries, from manufacturing and construction to retail and financial.
Stocks post modest gains as
job losses slow
NEW YORK (AP) -- Investors
undaunted by a surprisingly weak jobs report found enough positive news to
nudge stocks higher.
News that the nation's
unemployment rate rose above 10 percent last month for the first time in 26
years didn't derail the stock market's strong gains in the week, which lifted
major indexes more than 3 percent.
The rise in joblessness to
10.2 percent in October, while bad news for the economy, reassured some
investors that the Federal Reserve will have to hold interest rates low for
some time. That tends to weaken demand for the dollar, which in turn gives a
boost to stocks.
The Dow Jones industrial
average rose 17.46, or 0.2 percent, to 10,023.42, boosting its gain for the
week to 311 points.
Consumer borrowing drops
$14.8B in September
WASHINGTON (AP) -- Consumers
borrowed less for a record eighth straight month in September amid rising
unemployment and tight credit conditions. Economists worry the declines in
borrowing will drag on the fledgling recovery.
The Federal Reserve said
Friday that borrowing fell at an annual rate of $14.8 billion in September.
That's the biggest decline since July and was larger than the $10 billion drop
economists expected.
Americans are borrowing less
as they try to repair cracked nest eggs and replenish rainy day funds in a
dismal jobs market. Many are finding it hard to get credit as banks, hit by the
worst financial crisis in decades, have tightened lending standards.
Regulators shut United
Security Bank, small Ga. bank
WASHINGTON (AP) --
Regulators have shut United Security Bank, a small bank in Georgia, bringing
the number of bank failures this year to 116 amid the struggling economy and a
cascade of defaults on loans.
The Federal Deposit
Insurance Corp. on Friday took over United Security Bank, based in Sparta, Ga.,
with $157 million in assets and $150 million in deposits and two branches.
Ameris Bank, based in Moultrie, Ga., agreed to assume the assets and deposits
of the failed bank.
The failure of United
Security Bank is expected to cost the federal deposit insurance fund an
estimated $58 million.
Obama signs homebuyer,
jobless bill assistance
WASHINGTON (AP) -- President
Barack Obama signed a $24 billion economic stimulus bill into law Friday,
giving tax incentives to prospective homebuyers and additional jobless benefits
to those idled by the business slump.
The bill-signing came a day
after the House, displaying rare bipartisan agreement over the troubling
employment picture nationally, voted 403-12 to pass the measure. The Senate had
approved it unanimously on Wednesday.
The White House said the
law, which also includes tax cuts for struggling businesses, builds on
provisions in the $787 billion stimulus package enacted last February to avert
an economic meltdown.
AIG posts 2nd consecutive
quarterly profit
NEW YORK (AP) -- AIG said
Friday it was profitable for the second straight quarter as its core insurance
operations continue to stabilize after the company's bailout by the government
last year.
American International Group
Inc. also said the amount of its government financial assistance dropped by 4
percent during the third quarter. Its results got a lift from the increasing
value of investments it still holds that soured last year and helped drive it
to the brink of collapse.
While new insurance business
stabilized compared with the second quarter, it is still sharply below year-ago
figures as the economy remains weak and AIG struggles with its image after
being bailed out by the government. A recovery in its core insurance operations
is considered vital to AIG repaying the government.
Berkshire Hathaway says 3Q
profit triples to $3.2B
OMAHA, Neb. (AP) -- Warren
Buffett's company says its third-quarter profit tripled as the improving
economy and stock market boosted the value of Berkshire Hathaway Inc.'s
derivative contracts.
Berkshire said Friday it generated
$3.2 billion, or $2,087 per share, in net income. That's up significantly from
last year's $1.1 billion, or $682 per share.
Most of the swing in
earnings is related to unrealized gains in the value of Berkshire's
derivatives, some of which are tied to credit defaults and some of which are
tied to equity markets.
Berkshire's insurance
companies performed well, but its other operating companies struggled.
Freddie Mac loses $6.3B in
3Q
WASHINGTON (AP) -- Freddie
Mac says its losses narrowed to $6.3 billion in the third quarter and the
company didn't need a federal cash infusion.
The McLean, Va.-based
mortgage finance company has received about $51 billion since it was seized by
federal regulators in September 2008, but avoided tapping the government for
more aid for the second-straight quarter.
The quarterly loss, which
works out to $1.94 per share, includes $1.3 billion in dividends paid to the
Treasury Department. It compares with a loss of $25 billion, or $19.44 per
share, in the year-ago period.
The results were driven by
$7.6 billion in credit losses as the company continued to build its reserves
for bad mortgages.
Oil settles lower after US
unemployment report
NEW YORK (AP) -- Oil prices
tumbled Friday after the government said the U.S. unemployment rate topped 10
percent for the first time since 1983.
Benchmark crude for December
delivery gave up $2.19 to settle at $77.43 a barrel on the New York Mercantile
Exchange. In London, Brent crude for December delivery shed $2.12 to settle at
$75.87 on the ICE Futures exchange.
America's thirst for
petroleum has slumped all year. With nearly 16 million people now out of work,
traders found few reasons to expect it will return anytime soon. Crude prices
shed most of their gains from earlier in the week, when financial reports
showed consumers were spending more, and companies were squeezing more
productivity out of their workers.
GM says Europe chief Forster
to leave post
DETROIT (AP) -- Carl-Peter
Forster, the chief executive of General Motors Europe who runs its struggling
Opel unit, will leave the company, GM said Friday.
GM said in a statement that
Forster, 55, would advise the company on picking a new Opel CEO. The statement
gave no time frame for his departure.
Forster will be replaced
temporarily by Nick Reilly, who is now president of GM's international
operations who once ran Opel's Vauxhall operations in the United Kingdom, said
a person briefed on the executive moves.
The person asked not to be
identified because that move has not been announced publicly.
By The Associated Press
The Dow Jones industrial
average rose 17.46, or 0.2 percent, to 10,023.42.
The Standard & Poor's
500 index rose 2.67, or 0.3 percent, to 1,069.30, while the Nasdaq composite
index rose 7.12, or 0.3 percent, to 2,112.44.
Benchmark crude for December
delivery gave up $2.19 to settle at $77.43 a barrel on the New York Mercantile
Exchange. In London, Brent crude for December delivery shed $2.12 to settle at
$75.87 on the ICE Futures exchange.
In other Nymex trading, heating
oil fell 5.41 cents to settle at $2.0035 a gallon. Gasoline for December
delivery lost 6.34 cents to settle at $1.9243 a gallon. Natural gas for
December delivery plunged 18.7 cents to settle at $4.595 per 1,000 cubic feet.