AP
Business Highlights
Wednesday March 11, 6:26 pm ET

Stocks extend gains into second day

NEW YORK (AP) -- Investors struggled but managed to turn Wall Street's best performance this year into a two-day advance.

Stocks ended with modest gains Wednesday but the Dow Jones industrial average still recorded its first two-day climb since Feb. 5-6. The buying was far more subdued than on Tuesday when Citigroup Inc.'s upbeat assessment of its business sent investors rushing into the market, in part to cover bets that stocks would continue to slide. The Dow on Wednesday ended up nearly 4 points at 6,930.40 after jumping 379 the day before.

Ford says modified UAW pact brings foreign parity

DETROIT (AP) -- Ford Motor Co. said Wednesday that recent modifications to its contract with the United Auto Workers union would help the company achieve parity with wages paid in the United States by overseas-based automakers.

In a conference call to review changes to the 2007 collective bargaining agreement, Ford said its labor and benefit costs would total $55 an hour by the end of the year, compared with estimates of $48 to $49 at foreign automaker plants in the U.S.

The Dearborn-based automaker said that further parity would be achieved in the following years, but did not offer specific numbers.

Budget deficit reaches $765B in 5 months

WASHINGTON (AP) -- Lower tax revenue and massive government spending on the bank bailout pushed the federal deficit to $765 billion in the first five months of the budget year, well on its way to hitting the Obama administration's projection of a record annual imbalance of $1.75 trillion.

The Treasury Department also said Wednesday that the February deficit reached $192.8 billion. That's a record for the month and up 10 percent from a year ago, but below analysts' expectations of $205.7 billion.

Freddie Mac seeks $30.8B in US aid after 4Q loss

WASHINGTON (AP) -- Freddie Mac said Wednesday it will ask the government for nearly $31 billion in additional aid after posting a gargantuan loss of more than $50 billion last year as the U.S. housing market worsened.

The mortgage finance company posted a loss of $23.9 billion, or $7.37 per share, in the fourth quarter of 2008. That compares with a loss of $2.5 billion, or $3.97 a share, in the year-ago period.

The recent loss was driven by $13.2 billion in hedged trades, $7.2 billion in credit losses from the declining housing market conditions and $7.5 billion in writedowns of the value of its mortgage-backed securities. The company also took a charge of $8.3 billion for now-worthless tax credits.

NY AG requests Merrill bonus order be overturned

CHARLOTTE, N.C. (AP) -- New York Attorney General Andrew Cuomo filed a request Wednesday asking a judge to end a temporary confidentiality order that keeps private the details of bonuses paid to Merrill Lynch & Co. employees just before the firm was sold to Bank of America Corp.

A judge is scheduled to determine on Friday if a temporary order that keeps individual bonus information confidential should be made permanent.

Bank of America was not immediately available to comment.

Billionaire Stanford to take the 5th in fraud case

DALLAS (AP) -- Texas billionaire R. Allen Stanford and one of his top officials have asserted their Fifth Amendment right against self-incrimination in the federal government's fraud case against them and Stanford's companies, according to court documents filed Wednesday.

Stanford said he will "decline to testify, provide an accounting or produce any documents" related to the Securities and Exchange Commission's civil case, which accuses him of running a "massive Ponzi scheme."

Finance chief James M. Davis, using similar language, also asserted his right not to incriminate himself.

Official warns Congress not to force lending

WASHINGTON (AP) -- A top Treasury official told Congress Wednesday that the federal government should not micromanage banks that receive taxpayer assistance, a caution to lawmakers itching to see results from a $700 billion rescue program for the financial sector.

Neel Kashkari, interim assistant secretary for financial stability at Treasury, told a congressional oversight panel that banks should not be forced to make loans that bankers might deem risky.

Kashkari, who was put in the job during the Bush administration, testified amid growing impatience among members of Congress who want evidence that the taxpayer money and the Treasury strategies are actually loosening credit markets.

4 states see double-digit jobless rates in Jan.

WASHINGTON (AP) -- Four states -- California, South Carolina, Michigan and Rhode Island -- registered unemployment rates above 10 percent in January, and the national rate is expected to hit double digits by year-end.

The U.S. Labor Department's report on state unemployment, released Wednesday, showed the increasing damage inflicted on workers and companies from a recession, now in its second year. Some economists now predict the U.S. unemployment rate will hit 10 percent by year-end, and peak at 11 percent or higher by the middle of 2010.

SEC head says 'uptick rule' may be reinstated

WASHINGTON (AP) -- Dramatic changes in the global economy may merit restoring a federal rule aimed at preventing a massive plunge in a stock price caused by a rush of short sellers, the head of the Securities and Exchange Commission said Wednesday.

SEC Chairman Mary Schapiro said the agency "hopefully" will propose for public comment next month reinstatement of the so-called uptick rule.

Toyota concerned about needs of parts suppliers

WASHINGTON (AP) -- A top Toyota executive said Wednesday the Japanese automaker is concerned about the fate of 20 percent of its parts suppliers who face a cash crunch because of the sluggish economy.

Jim Lentz, Toyota's top U.S. executive, said he stressed the company's concerns for U.S. suppliers during a 35-minute meeting with the Obama administration's auto task force on Wednesday.

Toyota, the world's No. 1 automaker in global vehicle sales, has warned of a $3.54 billion loss for the fiscal year through March -- its first annual loss since 1950 -- because of the economic downturn. Lentz requested the meeting with the panel to discuss conditions of the U.S. auto industry, but said Toyota is not seeking any federal aid.

By The Associated Press

The Dow rose 3.91, or 0.1 percent, to 6,930.40.

The Standard & Poor's 500 index rose 1.76, or 0.2 percent, to 721.36, while the Nasdaq composite index, which has a heavy representation of tech stocks, rose 13.36, or 1 percent, to 1,371.64.

The Russell 2000 index of smaller companies slipped 1.45, or 0.4 percent, to 366.30.

Benchmark crude for April delivery fell $3.38 to settle at $42.33 a barrel on the New York Mercantile Exchange.

In other Nymex trading, gasoline for April delivery fell 4.6 cents to settle at $1.2512 a gallon, while heating oil slipped 6.56 cents to settle at $1.1331 a gallon. Natural gas for April delivery fell 4.2 cents to settle at $3.798 per 1,000 cubic feet.

Brent prices settled where they began at $43.96 on the ICE Futures exchange in London.