AP
Business Highlights
Friday November 21, 7:02 pm ET

Stocks surge on report of Geithner nomination

NEW YORK (AP) -- Wall Street put a stop to a terrifying decline and stormed higher Friday as President-elect Barack Obama appeared ready to tap the chief of the New York Federal Reserve as the next treasury secretary and hand him the herculean task of righting the U.S. financial system.

The Dow Jones industrial average, which had broken even for the day until news of the nomination leaked about an hour before the close, raced upward and finished 494 points higher, a rally of more than 6 1/2 percent.

The outbreak of buying pushed the Dow above 8,000 -- a figure that would have seemed like a nightmare three months ago but on Friday was a relief for Americans who have watched their investments and retirement savings drain away with alarming speed.

In the two previous days, the Dow had lost a staggering 873 points, more than 10 percent of its value, and the broader Standard & Poor's 500 index had sunk to its lowest level since 1997.

Pressure on Citigroup builds, shares fall below $4

NEW YORK (AP) -- Pressure intensified on Citigroup to sell part or all of itself as its stock fell below $4 a share on Friday and fears escalated about future loan losses.

CEO Vikram Pandit told managers earlier in the day he opposes breaking up the company, but the bank's board of directors was meeting Friday to discuss whether to do exactly that, the Wall Street Journal reported.

What investors are worried about is that all the risky debt sitting on Citigroup's balance sheet will eventually turn into losses as the economy worsens and the markets stay turbulent -- losses that could be nearly impossible to reverse.

FDIC OKs backing for bank debt, deposits

WASHINGTON (AP) -- The FDIC will guarantee up to $1.4 trillion in U.S. banks' debt for more than three years as part of the government's financial rescue plan.

The directors of the Federal Deposit Insurance Corp. voted Friday to approve the plan, which is meant to break the crippling logjam in bank-to-bank lending.

The FDIC will provide temporary insurance for loans between banks -- except for those for 30 days or less -- guaranteeing the new debt in the event of payment default by the issuing bank.

Automakers need to make case for government aid

WASHINGTON (AP) -- Democratic leaders ordered Detroit's Big Three automakers Friday to submit what amounts to a detailed loan application to Congress so lawmakers can decide whether to give the beleaguered industry an emergency $25 billion lifeline.

In a letter to the auto executives released Friday afternoon, House Speaker Nancy Pelosi and Senate Majority Leader Harry Reid demanded a detailed accounting by Dec. 2 of the companies' financial condition and short-term cash needs, as well as how they would achieve long-term viability.

Bush signs jobless benefits extension

WASHINGTON (AP) -- With no end in sight to economic bad news, President George W. Bush on Friday ensured that millions of laid-off workers will keep getting their unemployment checks as the year-end holidays approach.

Bush signed an extension of jobless benefits into law just before 8 a.m., as he was preparing to leave the White House for a morning flight to Lima, Peru, to attend the 21-nation Asia-Pacific Economic Cooperation forum.

Congressional leadership rushed the bill to the White House after it was approved Thursday to make the unusually quick bill signing possible before Bush left the country.

Wal-Mart names Duke to succeed Scott as CEO

NEW YORK (AP) -- Wal-Mart Stores Inc., the world's largest retailer, unexpectedly announced Friday that its chief executive will retire in February and be replaced by the head of its international division.

The surprise change in leadership right before the crucial holiday season comes as Wal-Mart has roared back to success as people looking for bargains shop more at discounters. Still, the company faces hurdles ahead amid slowing growth in the U.S., and analysts say the decision to tap an international executive serves as a testament that the company sees its future growth oversees.

US gas prices dip below $2, lowest in 3-plus years

HOUSTON (AP) -- Only four months after peaking at an unheard of $4.11 a gallon, the national average price for gasoline tumbled below $2 Friday, its lowest point in more than three years. Yet the global economic contrast between then and now could not be more stark.

There was muted joy for consumers wading through an economy that's almost certainly in recession, with thousands of jobs being lost and mortgage foreclosures continuing to rise to record levels.

Light, sweet crude for January delivery rose 51 cents to settle at $49.93 a barrel on the New York Mercantile Exchange.

Foodmakers Heinz, Smucker post higher earnings

MILWAUKEE (AP) -- With consumers looking for comfort foods and ways to save money, foodmakers H.J. Heinz Co. and J.M. Smucker Co. posted higher earnings Friday and said they're benefiting from price increases and the trend of more people eating at home.

Sales in the recent three-month quarter were strong for Heinz's core products, like its namesake ketchup, and T.G.I. Friday's frozen meals, and Smucker's fruit spreads, Hungry Jack potatoes and pancakes.

Revenue for Heinz rose 4 percent to $2.61 billion in the quarter ended Oct. 29, on a 7.1 percent worldwide price increase. Volume slipped 1.3 percent. Smucker's sales rose 19 percent to $843.1 million in the three months ended Oct. 31, and the Orrville, Ohio-based company said pricing was the primary driver, though it also saw volume gains.

Boeing warns of possible layoffs in 2009

UNDATED (AP) -- Boeing Co. may lay off some workers next year as part of an effort to cut costs in response to difficult market conditions and a slowing global economy, a company executive said.

In an internal memo sent to employees Thursday, Rick Stephens, senior vice president of human resources, was quoted as saying the aerospace company expects its number of employees to decline in 2009 after several years of growth.

Japan's central bank keeps interest rates on hold

TOKYO (AP) -- Japan's central bank, which kept its already low interest rates on hold Friday, looks like it may coast in neutral for a while despite signs of a prolonged economic slump at home and abroad.

The Bank of Japan last month cut its benchmark rate to 0.3 percent from 0.5 percent, so expectations for another rate reduction so soon were low. The October rate cut also left Japan, which has the lowest interest rates among major economies, with little wiggle room to loosen policy in the future.

Describing the economy as "increasingly sluggish," the central bank said it does not expect a turnaround anytime soon.

By The Associated Press

The Dow rose 494.13 points, or 6.54 percent, to settle at 8,046.42.

The Standard & Poor's 500 index jumped 47.59, or 6.32 percent, to 800.03, and the Nasdaq composite advanced 68.23, or 5.18 percent, to 1,384.35. The Russell 2000 index of smaller companies rose 21.23, or 5.51 percent, to 406.54.

Light, sweet crude for January delivery rose 51 cents to settle at $49.93 a barrel on the New York Mercantile Exchange.

In other Nymex trading, gasoline futures rose 5.7 cents to settle at $1.0643 a gallon. Heating oil gained 2.37 cents to settle at $1.6996 a gallon while natural gas for December delivery advanced 16.4 cents to settle at $6.532 per 1,000 cubic feet.