AP
Business Highlights
Wednesday November 26, 6:10 pm ET

Dow, S&P 500 clinch 4th straight winning session

NEW YORK (AP) -- A stock market gaining confidence in the nation's financial system bolted higher Wednesday, propelling the Dow Jones industrials and Standard & Poor's 500 index to their first four-day advance since last spring.

The market reversed losses from earlier in the session after President-elect Barack Obama pledged he would have a plan to deal with the nation's economic crisis on his first day in office.

Analysts warned that this latest advance came on light pre-holiday volume. The Dow industrials rose 247.14, or 2.91 percent, 8,726.61.

Obama reassures nervous nation on ailing economy

CHICAGO (AP) -- President-elect Barack Obama sought to reassure the nation and nervous holiday shoppers about the ailing economy Wednesday as beleaguered stores braced for their most important month of the year.

Fifty-five days away from taking office, he declared he would have an economic plan ready for action "starting day one."

To help with ideas from outside the White House, Obama announced he was forming a new team of advisers with former Federal Reserve Chairman Paul Volcker as the head.

New jobless claims drop from 16-year high

WASHINGTON (AP) -- New jobless claims fell more than expected last week from a 16-year high, the government said Wednesday, though they remain at elevated levels due to the slowing economy.

The Labor Department reported that initial requests for unemployment benefits fell to a seasonally adjusted 529,000 from the previous week's upwardly revised figure of 543,000. That is lower than analysts' expectations of 537,000.

Despite the improved number, initial claims remain at recessionary levels. The four-week average, which smooths out fluctuations, rose to 518,000, its highest level since January 1983, when the economy was emerging from a steep recession.

Oil prices jump again in volatile trading week

HOUSTON (AP) -- Oil prices rose sharply Wednesday as a large interest rate cut in China and news of a possible Russian output cut appeared to counter another round of dour economic news and larger-than-expected crude stockpiles in the U.S.

Trading followed this week's established pattern of volatility in the oil markets.

In Nymex trading, light, sweet crude for January delivery jumped more than 7 percent, or $3.67 to settle at $54.44 a barrel.

Tiffany 3Q profit beats view, but outlook lowered

NEW YORK (AP) -- Tiffany & Co. on Wednesday reported third-quarter earnings that topped Wall Street expectations, but the luxury goods retailer warned of job cuts and lowered its 2008 outlook as consumers scale back on spending amid a tough economy.

Tighter credit and widespread layoffs have caused many consumers to cut back on non-essentials and the forecast is gloomy for retail's crucial holiday shopping season. Tiffany's strong international sales had typically helped offset recent weakness in the U.S., but the company warns that Europe and Asia remain "challenging."

BCE deal may be in jeopardy due to solvency issues

TORONTO (AP) -- The largest leveraged buyout in history is unlikely to close after the Canadian telecom company BCE Inc. said Wednesday an audit has found the proposed $35 billion deal to take the company private may not meet solvency requirements.

An investment group led by the Ontario Teachers Pension Plan Board and several U.S. partners had expected to complete its deal for BCE, the parent of Bell Canada, on Dec. 11. It would have been the biggest takeover in Canadian history.

EU proposes 2-year euro200 bn economic stimulus plan

BRUSSELS, Belgium (AP) -- The European Commission urged EU governments Wednesday to jointly combat the economic slowdown with euro200 billion (US$256.22 billion) in spending and tax cuts to boost growth and consumer and business confidence.

If fully enacted, its two-year "European Economic Recovery Plan" would see the 27 EU governments spend 1.5 percent of the bloc's gross domestic product to halt the slowdown that has already pushed some European nations into recession.

Cerberus claims it was misled in deal for Chrysler

DETROIT (AP) -- Relations between Chrysler's current and former owners turned ugly Wednesday when private equity firm Cerberus Capital Management LP accused Daimler AG of "intentionally and materially" misleading Cerberus before the German automaker sold Chrysler last year.

Both sides slugged it out with dueling news releases. Cerberus claimed Daimler breached the sale contract, while Daimler called the allegations absurd.

The unusual public feud likely is a prelude to arbitration or a lawsuit over the sale, said Peter Henning, a former Securities and Exchange Commission attorney who teaches at Wayne State University Law School in Detroit.

China slashes interest rate to spur growth

BEIJING (AP) -- China announced its biggest interest rate cut in 11 years on Wednesday to spur private borrowing and support a multibillion-dollar stimulus package to boost slowing economic growth.

The 1.08 percentage-point rate cut -- the fourth cut in three months -- reflects the government's urgency about raising private consumption and investment to supplement state spending on the stimulus package.

Interest on a one-year loan will fall to 5.58 percent, effective Thursday, while interest paid on deposits will fall to 2.52 percent.

Deere 4Q falls on weaker consumer sales, expenses

UNDATED (AP) -- Deere & Co.'s quarterly profit fell 18 percent as weaker results in its small equipment and credit divisions, coupled with higher expenses, overwhelmed strong sales of farm machinery.

The world's largest maker of agricultural equipment also forecast lower earnings next year, citing the global economic downturn, with equipment sales remaining virtually flat.

Although prices have declined for commodities such as corn and soybeans, they remain high enough for farmers to earn solid income, company executives say. That is the most important factor driving equipment purchases, they say.

By The Associated Press

The Dow industrials rose 247.14, or 2.91 percent, 8,726.61.

Broader indicators also rose. The S&P 500 advanced 30.29, or 3.53 percent, to 887.68; it last had a four-day winning streak May 27-30. Its rally was its largest since 1933.

The Nasdaq composite index rose 67.37, or 4.60 percent, to 1,532.10. The Russell 2000 index of smaller companies rose 25.45, or 5.74 percent, to 468.63.

Light, sweet crude for January delivery jumped more than 7 percent, or $3.67 to settle at $54.44 a barrel.

In London, January Brent crude rose $3.57 cents to settle at $53.95 on the ICE Futures exchange.

In other Nymex trading, gasoline futures jumped 8.49 cents to close at $1.1798 a gallon. Heating oil gained 3.79 cents to settle at $1.7367 a gallon while natural gas for January delivery jumped 49.2 cents to settle at $6.878 per 1,000 cubic feet.