Toyota pedal maker says making
redesigned pedals WASHINGTON (AP) -- Toyota Motor Corp.
said Thursday it's closing in on solutions to a gas pedal system problem, but
it still had no details on when drivers would see repairs as an embarrassing
recall spread to more than 2.4 million vehicles on three continents. Toyota dealers in the U.S. have been
swamped with calls from concerned owners but had few answers as the recalls
snowballed. Elkhart, Ind.-based CTS Corp., which made the parts, is cranking
out redesigned gas pedal assemblies that fix the problem, which is caused by
condensation around an arm attached to the pedal and springs that send the
pedal back to the idle position. Jobless claims, durable goods point to
weak growth WASHINGTON (AP) -- Evidence that the
economic rebound remains sluggish emerged from reports Thursday on new claims
for unemployment aid and orders to U.S. factories. The number of people claiming jobless
aid fell last week, but less than expected. And orders for big-ticket
manufactured goods rose but also fell short of analysts' predictions. Weak job
creation, in particular, is restraining consumer spending and holding back the
economic recovery. The reports follow President Barack
Obama's State of the Union address Wednesday night, which focused on the
economy and jobs. Obama called on Congress to enact a second stimulus package,
urging that it contain help for small businesses and funding for infrastructure
projects. Disappointing tech forecasts drag
stocks lower NEW YORK (AP) -- The stock market
resumed its slide Thursday as disappointing forecasts from technology companies
brought new concerns about the economy. A weaker outlook from technology maker
Qualcomm Inc. dragged the Nasdaq composite index lower. Drops in Motorola Inc.
and Apple Inc. also hurt tech stocks. The Dow Jones industrial average fell
almost 116 points to 10,120.46, its sixth loss in nine days. The market also fell in response to a
report from Standard & Poor's that said it no longer considers Britain's
banking system among the "most stable and low-risk." The report added
to concern about rising debt levels other countries, such as Greece, and drove
the dollar higher as investors sought safety. That sent some commodities prices
lower, hurting materials stocks. Ford earns $2.7B in 2009, first profit
in 4 years DEARBORN, Mich. (AP) -- Defying
economic conditions that sent its U.S. rivals into bankruptcy court, Ford Motor
Co. clawed its way to a $2.7 billion profit in 2009 and expects to stay in the
black in 2010. It was the automaker's first annual profit in four years. Ford's full-year revenue of $118.3
billion fell 14 percent from 2008, but the Dearborn-based automaker benefited
from $5.1 billion in cuts to manufacturing, engineering and advertising and a
$1.3 billion profit at Ford Credit. It gained market share in North and South
America and Europe despite the worst U.S. sales climate in 30 years. Share in
Asia was flat. Ford CEO Alan Mulally said 2009 was
"pivotal" but Ford has work to do. Chrysler says it won't sue over dealer
arbitration DETROIT (AP) -- Chrysler Group LLC said
Thursday it won't sue to try to stop arbitration with hundreds of dealers it
wants to close. Chrysler shut down 789 dealers in June
amid lagging sales. General Motors Corp. also told 2,000 dealers it plans to
revoke their franchise agreements by October. But Congress objected and passed
a law in December allowing GM and Chrysler dealers to appeal those decisions. Chrysler said Thursday that 409 of its
dealers have filed paperwork to appeal the closures. The American Arbitration
Association, which is handling the appeals, said 1,573 dealers in all have
filed to appeal, including dealers from GM. Chrysler had been considering a federal
lawsuit to try to stop the process, but said Thursday it will go forward with
arbitration. P&G, Colgate sales up; consumers
return to brands CINCINNATI (AP) -- Two of the world's
most familiar consumer products companies, Procter & Gamble and
Colgate-Palmolive, say sales are improving for their toothpastes, soaps and
other household items. They're using promotions, tinkering
with prices and rolling out new versions of popular lines to attract
cash-strapped shoppers who had been turning to store brands or other cheaper
options. They're also benefiting from consumers in growing overseas markets
such as Brazil and China. Both companies reported
better-than-expected earnings. Colgate-Palmolive profit rose 27 percent and
sales rose 11 percent last quarter, while P&G said sales were up 6 percent
and growing. Microsoft fiscal 2Q earns up 60 pct on
PC rebound REDMOND, Wash. (AP) -- Microsoft Corp.
said Thursday that earnings in the most recent quarter jumped 60 percent,
helped by a rebound in personal computer sales. The PC industry bounced back during the
2009 holiday shopping season after one of its roughest years to date.
Microsoft's earnings are closely tied to computer sales because its two most
profitable divisions make the Windows operating system and Office business
software. Microsoft said its net income for the
fiscal second quarter that ended Dec. 31 rose to $6.7 billion, or 74 cents per
share, compared with $4.2 billion, or 47 cents per share, in the year-ago
period. Revenue increased 14 percent to $19 billion. Fed chief Bernanke wins 2nd term in
closest vote WASHINGTON (AP) -- Embattled Federal
Reserve Chairman Ben Bernanke won confirmation for a second term Thursday, but
only by the closest vote ever for the crucial post and after withering
criticism from lawmakers for bailing out Wall Street while other Americans
suffered in recession. The Senate confirmed Bernanke for a new
four-year term by a 70-30 vote, a seemingly solid majority but 14 votes worse
than the closest previous vote for a Fed chairman. The Senate battle over Bernanke's
confirmation has been a test of central bank independence, a crucial element if
the Fed is to carry out unpopular but economically essential policies. Natural gas prices fall for fourth day NEW YORK (AP) -- Natural gas prices
slid Thursday for the fourth straight day as a fresh stack of economic data
provided little evidence that the U.S. will increase its appetite for oil and
gas anytime soon. The Energy Information Administration
said that natural gas supplies dropped by 86 billion cubic feet last week, less
than analysts expected. During the past year, the country has
been working off a massive oversupply of natural gas, which is used to heat
homes and run power generators. But the EIA report said that the 2.52 trillion
cubic feet in storage is still above the five-year average for this time of
year. Judge dismisses charges against
Broadcom's ex-CEO SANTA ANA, Calif. (AP) -- A federal judge
on Thursday dismissed felony narcotics charges and two civil forfeiture cases
against Broadcom Corp. co-founder and former CEO Henry T. Nicholas III, wiping
the slate clean for a man who once faced the possibility of decades in prison. Prosecutors asked U.S. District Judge
Cormac J. Carney to dismiss the narcotics case after he threw out a parallel
securities fraud case against Nicholas and the chipmaker's former chief
financial officer six weeks ago. In doing so, the judge cited prosecutorial
misconduct and a lack of evidence for the charges. Carney, however, acknowledged Nicholas'
apparent drug problem before dismissing the narcotics indictment. By The Associated Press The Dow fell 115.70, or 1.1 percent, to
10,120.46. The Standard & Poor's 500 index
fell 12.97, or 1.2 percent, to 1,084.53, while the Nasdaq fell 42.41, or 1.9
percent, to 2,179.00. Benchmark crude for March delivery fell
3 cents to settle at $73.64 a barrel on the Nymex. In London, Brent crude for March
delivery lost 11 cents to settle at $72.13 a barrel on the ICE Futures
exchange. In other Nymex trading in February
contracts, heating oil added less than a penny to settle at $1.9191 a gallon,
while gasoline dropped 2.18 cents to settle at $1.9174 a gallon. The natural gas contract for March
delivery gave up 8.6 cents to settle at $5.138 per 1,000 cubic feet on the New
York Mercantile Exchange.