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.