New-home sales hit a low WASHINGTON (AP) -- Sales of new homes
fell unexpectedly to their lowest point on record in February, in part because
stormy winter weather kept buyers away. The results pointed to the housing
industry's struggle to rebound from the worst slump in decades. Sales fell 2.2 percent last month to a
seasonally adjusted annual sales pace of 308,000, the Commerce Department said
Wednesday. The news follows a report Tuesday that sales of existing homes fell
for a third straight month in February, to the lowest level since July. The drop in new-home sales was the
fourth consecutive monthly decline and the worst showing on records dating to
1963. January's results, meanwhile, were revised upward slightly to a pace of
315,000. January durable goods orders up 0.5
percent WASHINGTON (AP) -- Orders for
big-ticket manufactured goods rose for a third consecutive month in February,
bolstered by strong demand for commercial aircraft and machinery. The hope is
that continued strength in manufacturing will help sustain the economic
recovery. The Commerce Department said Wednesday
that orders for durable goods advanced 0.5 percent last month, slightly lower
than the 0.7 percent gain that economists had expected. The increase was led by the second huge
jump in demand for commercial aircraft, an increase of 32.7 percent which
followed a 134.9 percent rise in this volatile category in January. Excluding
transportation, orders posted a 0.9 percent increase, much better than the 0.6
percent decline in January. Stocks fall after agency cuts Portugal
debt rating NEW YORK (AP) -- Major stock indexes
fell from their 2010 highs Wednesday as weakness in the housing market and
rising European debt loads revived investors' pessimistic view of the economy. The Dow Jones industrial average fell
about 53 points to 10,836.15. It was only the Dow's second drop in 12 days.
Broader stock indexes also slid. Treasury prices tumbled after a
government debt auction drew only modest demand for a second straight day. That
raised concern that the government will have to pay more to attract buyers for
its debt. Washington has been issuing record amounts of debt to help revive the
economy. Frantic EU seeks solution to Greek debt
crisis BRUSSELS (AP) -- European leaders are
facing a moment of truth at a Thursday summit, as markets press them to come up
with a financial safety net for Greece -- with help from the International
Monetary Fund -- to stop the euro's slide and keep debt crises from afflicting
more eurozone countries. The euro hit a 10-month low against the
U.S. dollar on Wednesday as leading credit ratings agency Fitch Ratings
downgraded Portugal's debt, turning up the volume on investor fears that
Europe's currency union has no way to shore up members with troubled economies. BofA to start reducing mortgage
principal CHARLOTTE, N.C. (AP) -- Bank of America
Corp. is giving some of its most troubled mortgage borrowers relief from the
threat of foreclosure. The bank, the largest mortgage servicer
in the country, said Wednesday it will forgive up to 30 percent of some
customers' total mortgage balance. The homeowners must have missed at least two
months of mortgage payments and owe at least 20 percent more than their home is
currently worth. The plan is the newest provision of an
agreement the Charlotte, N.C.-based bank reached 18 months ago with state attorneys
general to settle charges over high-risk loans made by Countrywide Financial
Corp. Google deals in doubt amid spat with BEIJING (AP) -- Google Inc.'s business
ties in China unraveled a little more Wednesday amid a widening backlash to the
U.S. Internet company's decision to move its Chinese search engine offshore in
a challenge to the country's online censorship laws. While the stand is winning Google
praise in the U.S. and other countries, it's threatening to turn the company
into a pariah in China. A high-profile Communist Party
newspaper skewered Google in a front-page story. And more of its partners and
advertising customers in the country appeared to be distancing themselves from
the company. Google, based in Mountain View, Calif.,
still hopes to expand its non-search operations in China, but its refusal to
play by the government's censorship rules could make that unrealistic. Attorneys sharpen tools to sue SAN DIEGO (AP) -- As lawsuits over The main topic at the conference,
organized by legal publisher HarrisMartin, was Thursday's scheduled hearing
before a panel of federal judges in San Diego who will choose whether to
combine more than 100 Lawyers for people suing Pressure growing on China to revalue
currency WASHINGTON (AP) -- Pressure on China to
allow its currency to rise in value against the dollar intensified on Wednesday
with a prominent economist telling Congress that the Obama administration
should cite China and four other Asian economies as currency manipulators in a
report due in April. C. Fred Bergsten, head of the Peterson
Institute for International Economics, told the House Ways and Means Committee
on Wednesday that a successful campaign to pressure Asian nations on the
currency issue could create as many as 1.2 million new American jobs. Bergsten said he believed the Chinese
yuan was undervalued by about 40 percent against the dollar and the other
currencies were similarly undervalued. Starbucks to pay first dividend,
expands buyback CHICAGO (AP) -- Starbucks' CEO
proclaimed its once-stumbling brand is back in business after two years of
layoffs and store closings, while the coffee giant issued its first-ever
dividend for investors on Wednesday. Speaking in front of thousands of
shareholders and employees at the company's annual meeting in Seattle, CEO
Howard Schultz said the brand's ambitious turnaround effort sliced $580 million
from its expenses and the turnaround is now taking hold. Earlier in the day, Starbucks announced
the dividend, pledging to return 10 cents per share to investors and ultimately
boosting that payment to as much as 40 percent of its annual profit. It also
will expand its effort to buy back its own shares. NEW YORK (AP) -- The company said the shares are worth
about $5 billion. They will be sold on the open market with proceeds funding a
stock repurchase program. The sale of the Lukoil stake is
separate from the plan that By The Associated Press The Dow fell 52.68, or 0.5 percent, to
10,836.15, a day after closing at its highest level since The Standard & Poor's 500 index
dropped 6.45, or 0.6 percent, to 1,167.72. The Benchmark crude for May delivery lost
$1.30 to settle at $80.61 a barrel on the New York Mercantile Exchange.
Earlier, the price dropped as low as $79.88. In other Nymex trading in April
contracts, gasoline fell 4.17 cents to settle $2.2211 a gallon, and heating oil
fell 3.11 cents to close at $2.0707 a gallon. Natural gas dropped 2.5 cents to
settle at $4.105 per 1,000 cubic feet. In London, Brent crude fell $1.08 to
settle at $79.62 on the ICE futures exchange.