AP
Business Highlights
Thursday September 25, 6:39 pm ET

Tentative meltdown deal: Bush, McCain, Obama meet

WASHINGTON (AP) -- President Bush and the two men fighting to succeed him joined forces Thursday at a historic White House meeting on a multibillion-dollar Wall Street bailout plan, aiming to stave off a national economic disaster.

Key members of Congress said they had struck a deal earlier in the day, but its future was unclear.

The tentative accord would give the Bush administration just a fraction of the $700 billion it had requested up front, with half that total subject to a congressional veto, Capitol Hill aides said. But nothing appeared final.

Stocks rise on bailout hopes; credit remains tight

NEW YORK (AP) -- Financial markets grew more upbeat Thursday as political leaders said they struck an agreement in principle on a massive spending plan to revive the crippled financial system.

The Dow Jones industrial average jumped about 200 points on optimism about the bailout, and demand for safe-haven assets remained high but eased slightly as some investors placed bets that a deal would help unclog credit markets.

New home sales and factory orders fall in August

WASHINGTON (AP) -- Weekly jobless claims surged to the highest level in seven years, durable goods orders took a bigger-than-expected tumble and new home sales plunged to the slowest pace in 17 years, according to government data released Thursday.

The latest trifecta of bad news about the economy raised new worries about a possible recession and underscored the concerns that are driving Congress and the White House to reach agreement on an historic bailout of the financial system.

GE cuts forecast, citing wounded financing unit

HARTFORD, Conn. (AP) -- General Electric Co., the industrial powerhouse that makes everything from jet engines to light bulbs, cut its earnings forecast for the year on Thursday, blaming volatile financial markets that have damaged the profitability of its loan and lease business, which accounts for almost half its income.

GE, a bellwether of the U.S. economy, warned that its GE Capital unit would face difficult conditions.

The unit has been caught in the downdraft hurting financial services stocks.

RIM 2Q earnings up 72 percent but outlook soft

NEW YORK (AP) -- The stock of Research in Motion Ltd. plunged in extended trading Thursday after the BlackBerry maker said the cost of launching new smart phones would eat into near-term profits.

The company is launching three major new models in the current quarter, and the cost of ramping up production will trim the company's gross profit margin.

RIM's U.S.-listed shares were down $20.39, or 21 percent, at $77.14. If that price lasts into Friday trading, the stock will set a new 52-week low.

Pilgrim's Pride to post 4Q loss; shares plummet

MILWAUKEE (AP) -- The nation's largest chicken producer, Pilgrim's Pride Corp., said Thursday that high animal feed costs will force it to post a "significant loss" in its fiscal fourth quarter and that it was trying to negotiate new terms with its lenders.

Its shares, which had already dropped 38 percent a day earlier before being halted, slid nearly 40 percent more to levels not seen since 2002.

The company, which holds about a quarter of the U.S. chicken market, said it is so sagged by debt that it may not meet the terms of its loan agreements, which means it could be forced to repay its debts faster than expected and possibly penalties. Analysts say arranging other financing may be difficult because of the credit turmoil on Wall Street.

Delta, NWA shareholders approve combination

Delta Air Lines Inc. and Northwest Airlines Corp. shareholders gave the go-ahead Thursday to a combination that would create the world's biggest carrier, deciding that in their volatile industry they like their chances better together than on their own.

The stock-swap deal announced April 14 still requires Justice Department approval. One other potential hurdle is a federal lawsuit seeking to block the deal that is set for trial Nov. 5 in San Francisco.

Wrigley shareholders approve $23B sale to Mars

MILWAUKEE (AP) -- Shareholders of Wm. Wrigley Jr. Co. have approved the company's $23 billion sale to Mars Inc., a move that will end more than a century of family control as the chewing-gum company becomes part of what will now be the world's largest candy maker.

The deal, expected to be finalized around Oct. 6, joins the company that makes gums like Juicy Fruit and Big Red with the privately held maker of M&Ms, Snickers and Skittles, bumping Britain's Cadbury PLC from the top candy-making slot.

Oil up near $108 as bailout wins initial approval

NEW YORK (AP) -- Oil prices swung higher in erratic trading Thursday as a U.S. financial rescue plan won preliminary approval from lawmakers, raising expectations of a resurgance in domestic energy demand.

Light, sweet crude for November delivery rose $2.29 to settle at $108.02 a barrel in early afternoon trading on the New York Mercantile Exchange after edging slightly lower for much of the day. Oil shed 88 cents to settle at $105.73 on Wednesday.

Discover 3Q profit falls, but tops estimates

NEW YORK (AP) -- Discover Financial Services' profit fell 11 percent in the third quarter but its lucrative card processing business drove the results above Wall Street's expectations.

The profit decline reflected a big increase in its allowance for loan losses as it wrote off more loans and set aside money for loans that may go sour amid deteriorating credit market conditions.

The Riverwoods, Ill.-based company reported Thursday its net income fell to $180 million, or 37 cents per share, in the quarter ended Aug. 31, compared with net income of $202 million, or 42 cents per share, in the 2007 period.

By The Associated Press

The Dow rose 196.89, or 1.82 percent, to 11,022.06. The gain helped erase some of the losses from heavy selling earlier in the week, though the blue chips still remain down by more than 360 points, or 3.2 percent.

Broader stock indicators also rose Thursday. The Standard & Poor's 500 index advanced 23.31, or 1.97 percent, to 1,209.18 and the Nasdaq composite index rose 30.89, or 1.43 percent, to 2,186.57.

Light, sweet crude for November delivery rose $2.29 to settle at $108.02 a barrel in early afternoon trading on the New York Mercantile Exchange after edging slightly lower for much of the day. Oil shed 88 cents to settle at $105.73 on Wednesday.

In other Nymex trading, gasoline futures rose 10.26 cents to settle at $2.6973 a gallon, while heating oil futures rose 2.13 cents to settle at $3.0483 a gallon. Natural gas futures rose 2.3 cents to settle at $7.931 per 1,000 cubic feet.

In London, November Brent crude rose $2.15 to settle at $104.60 a barrel on the ICE Futures exchange.