Spike in Prius complaints may not be all it seems

NEW YORK (AP) — Reports of sudden acceleration in the Toyota Prius have spiked across the country. But that doesn't mean there's an epidemic of bad gas pedals in the popular hybrid.

Experts on consumer psychology say the relentless negative media attention Toyota has received since the fall makes it much more likely that drivers will mistake anything unexpected — or even a misplaced foot — for actual danger.

In just the first 10 weeks of this year, 272 complaints have been filed nationwide for speed control problems with the Prius, according to an Associated Press analysis of unverified complaints received by the National Highway Traffic Safety Administration.

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Wholesale inventories fall while sales increase

WASHINGTON (AP) — Businesses trimmed inventories at the wholesale level again in January even though sales rose for a 10th consecutive month. The dip in inventories underscored that businesses remain cautious about restocking their depleted shelves.

The Commerce Department said Wednesday that inventories at the wholesale level were reduced 0.2 percent in January following a 1 percent drop in December. Sales were up a solid 1.3 percent, the best showing since a 3.6 percent rise in November.

Economists are hoping that the steady gains in sales will soon prompt a sustained rebound in inventory restocking. That would trigger increased factory production and provide support for the fledgling recovery.

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Stocks rise after inventories fall and sales gain

NEW YORK (AP) — Scant buying lifted stocks for a second day Wednesday after the government reported a drop in companies' inventories.

The Dow Jones industrials rose only 3 points to 10,567.33 as the market remained in a lull that began on Monday. Many investors stayed on the sidelines amid an absence of news that could influence trading.

The drop in inventories and the rise in sales suggests that companies are working through inventory to meet demand and will have to begin restocking, helping nudge stocks higher. The numbers on the economy haven't been strong enough to galvanize traders because many improvements are already reflected in stock prices.

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Budget deficit sets record in February

WASHINGTON (AP) — The government ran up the largest monthly deficit in history in February, keeping the flood of red ink on track to top last year's record for the full year.

The Treasury Department said Wednesday that the February deficit totaled $220.9 billion, 14 percent higher than the previous record set in February of last year.

The deficit through the first five months of this budget year totals $651.6 billion, 10.5 percent higher than a year ago.

The Obama administration is projecting that the deficit for the 2010 budget year will hit an all-time high of $1.56 trillion, surpassing last year's $1.4 trillion total. The administration is forecasting that the deficit will remain above $1 trillion in 2011, giving the country three straight years of $1 trillion-plus deficits.

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Unemployment rises in 30 states in January

WASHINGTON (AP) — Unemployment rose in 30 states in January, the Labor Department said Wednesday, evidence that jobs remain scarce in most regions of the country.

The data is somewhat better than December, when 43 states reported higher unemployment rates, but worse than November, when rates fell in most states.

Still, five states reported record-high joblessness in January: California, at 12.5 percent; South Carolina, 12.6 percent; Florida, 11.9 percent; North Carolina, 11.1 percent; and Georgia, 10.4 percent.

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Oil prices rise to settle above $82

NEW YORK (AP) — Oil settled above $82 on Wednesday after driving past $83 briefly following a government report that showed U.S. crude oil supplies didn't grow as much as analysts expected last week.

Benchmark crude for April delivery rose 60 cents to settle at $82.09 on the New York Mercantile Exchange.

The Energy Information Administration said crude inventories grew last week by 1.4 million barrels to 343 million barrels. Analysts expected a build of 2.1 million barrels, according to a survey by Platts, the energy information arm of McGraw-Hill Cos. The lower build raised hopes that demand might be picking up, although there's still a lot of oil on hand.

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Britain confronts debt of Greek proportions

LONDON (AP) — Government debt is growing, as is the deficit. The economy is struggling to get out of recession and there is talk of spending cuts or higher taxes. The unions are on edge. And the currency is plummeting.

The country is not Greece — but Britain, almost six times bigger, racking up debt even faster, and headed into a critical election.

The woes of Britain — only recently a cocky symbol of the global boom times — show that the troubles for Europe, and the West, extend far beyond the traditionally laggard countries of southern Europe.

Britain does have some factors in its favor: unlike Greece and its reliance on the common euro currency, it prints the currency in which its liabilities are denominated. It is also considered a surer bet for repayment, maintaining a triple-A credit rating.

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Buffett's salary unchanged, but security costs up

OMAHA, Neb. (AP) — Warren Buffett brought home less pay than Berkshire Hathaway's chief financial officer again last year, but the company is paying more to protect the billionaire these days.

Buffett, chairman and chief executive of the Omaha, Neb.-based company, received $519,490 total compensation in 2009, an increase of 6 percent, according the proxy statement mailed to shareholders this week. The reason Buffett's compensation grew is Berkshire spent $28,781 more on his security.

Berkshire's chief financial officer, Marc Hamburg, saw his compensation grow 11 percent, to $874,750 in 2009, to remain the top earner at the company's 21-person headquarters.

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Connecticut AG sues Moody's, S&P over debt ratings

NEW YORK (AP) — Connecticut's attorney general sued Moody's Investors Service and Standard & Poor's over ratings the agencies issued on risky investments.

In the civil lawsuit filed Wednesday, Attorney General Richard Blumenthal alleged Moody's and S&P knowingly assigned false ratings to complex investments that pushed the country into recession.

The suit, which Blumenthal called the first of its kind against ratings agencies, is being brought under Connecticut's unfair trade practices law. The attorney general is seeking penalties and fines that could reach into the hundreds of millions of dollars, he said.

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Brown-Forman 3Q profit falls on higher expenses

LOUISVILLE, Ky. (AP) — The maker of Jack Daniel's whiskey and Korbel champagne saw its fiscal third-quarter profit drop on higher expenses that were expected, but adjusted results surpassed analysts' estimates.

The liquor company on Wednesday also narrowed its full-year earnings outlook — which may miss Wall Street's forecast — to account for a charge, sales trends and other items.

Brown-Forman, like many alcoholic beverage companies, has come under pressure during the recession as consumers have gone out to bars and restaurants less frequently. Individuals have also traded down to cheaper brands in an effort to save money.

By The Associated Press

The Dow rose 2.95, or less than 0.1 percent, to 10,567.33.

The S&P 500 index rose 5.16, or 0.5 percent, to 1,145.61. The Nasdaq composite index rose 18.27, or 0.8 percent, to 2,358.95, an 18-month high.

Benchmark crude for April delivery rose 60 cents to settle at $82.09 on the New York Mercantile Exchange.

In other Nymex trading in April contracts, heating oil rose 2.64 cents to settle at $2.1162 a gallon. Gasoline gained 2.48 cents to settle at $2.2851 a gallon. Natural gas rose 4.3 cents to settle at $4.559 per 1,000 cubic feet. Earlier, natural gas hit a 52-week low of $4.450.

In London, Brent crude rose 57 cents to settle at $80.48 on the ICE futures exchange.