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On Friday March 26, 2010, 5:25 pm EDT

Year-end growth spurt not likely to be repeated

WASHINGTON (AP) -- The burst of energy the economy showed at the end of last year isn't likely to be repeated anytime soon.

The Commerce Department reported Friday that the economy grew at a 5.6 percent pace in the October-to-December quarter in its third and final estimate of economic activity during the period.

Even though growth turned out to be a tad less than the government's prior two estimates for the quarter, the new reading still marked the strongest showing in six years. Many economists, however, think the economy has slowed in the current quarter to about half the pace seen at the end of last year.

European leaders: Greece plan to stabilize euro

BRUSSELS (AP) -- A hard-won deal to provide a safety net for Greece provided the debt-ridden country with some welcome relief Friday, with its cost of borrowing on international markets edging down slightly and labor unions at home saying they would hold off on any further strikes -- at least for now.

Prime Minister George Papandreou said that while Greece still faced problems, the new plan would give it breathing space to implement his Socialist government's harsh austerity program, designed to reduce its massive budget deficit and pull Greece out of a financial crisis that has rocked the European Union's common currency.

Stocks give up early gains for 2nd straight day

NEW YORK (AP) -- Stocks closed mixed for a second day after investors grew pessimistic about the market's ability to keep its rally going.

The Dow Jones industrial average rose 9 points to 10,850.36 Friday. It had been up as much as 68 after European leaders announced a plan to help Greece with its debts. A similar advance and retreat occurred Thursday. Analysts see that pattern as a sign of an overheated market. The Dow has climbed 16 of the last 21 days.

Major stock indexes still managed to rise for a fourth straight week.

Gov't unveils plan to shrink some home loans

WASHINGTON (AP) -- Under pressure to stem the foreclosure crisis, the Obama administration launched a plan Friday to reduce the amount some troubled borrowers owe on their home loans and give jobless homeowners a temporary break.

Administration officials cautioned that the plan won't stop all foreclosures or help all troubled homeowners. Instead, officials said their goal is to meet their original target, announced last year, of helping 3 million to 4 million borrowers avoid foreclosure.

Administration officials played down any notion that the new plan would solve the foreclosure epidemic. About 6 million homeowners have missed at least two months of payments.

State jobless rates stabilize as layoffs slow

WASHINGTON (AP) -- State unemployment rates stabilized last month, reflecting a broader nationwide trend, according to a Labor Department report Friday. Sixteen states said their jobless rate was unchanged in February, seven reported declines and 27 reported increases.

That's an improvement from January, when 30 states saw their rates rise, and much better than December, when joblessness rose in 43 states.

The nationwide unemployment rate was 9.7 percent in February, the same as the previous month. Layoffs are slowing as the economy is recovering and there are signs that employers are stepping up hiring.

AT&T will take $1B non-cash charge for health care

NEW YORK (AP) -- AT&T Inc. will take a $1 billion non-cash accounting charge in the first quarter because of the health care overhaul and may cut benefits it offers to current and retired workers.

The charge is the largest disclosed so far. Earlier this week, AK Steel Corp., Caterpillar Inc., Deere & Co. and Valero Energy announced similar accounting charges, saying the health care law that President Barack Obama signed Tuesday will raise their expenses. On Friday, 3M Co. said it will also take a charge of $85 million to $90 million.

GM to add workers, boost output at Canadian plants

DETROIT (AP) -- General Motors Co. will bring back 600 laid-off auto workers and add equipment at two Canadian factories in an effort make more midsize crossover vehicles that have been selling well in both the U.S. and Canada.

The company announced Friday that it will add equipment and reconfigure the body-making shop at its factory in Ingersoll, Ontario, where it makes the Chevrolet Equinox and GMC Terrain crossovers.

It also will put hundreds of workers back on the clock at a factory in Oshawa, Ontario, and add equipment to the plant so it can make Equinoxes in addition to its current product, the Chevrolet Impala full-size sedan.

Chrysler to let 50 dealers rejoin sales network

DETROIT (AP) -- If your local Chrysler dealer was forced out of business by the company last year, it could soon be selling new cars again.

Chrysler Group LLC said Friday it is offering to reinstate 50 of the 789 dealers that it previously tried to drop while it was making its way through Chapter 11 bankruptcy protection.

The 50 Chrysler dealers, which the company would not identify, are in areas that can offer service to customers without hurting the remaining stores in its network of 2,334 dealers selling Chrysler, Dodge and Jeep vehicles in the U.S., the company said. The dealers being offered reinstatement have not yet been notified of the company's decision, a spokeswoman said.

Drivers catch a break as gas prices hold steady

NEW YORK (AP) -- Motorists filling up for weekend driving caught a small break at the pump Friday, as average retail gasoline prices held steady at the same level as a week ago.

Nationwide average retail prices shed less than a penny overnight to $2.811 a gallon. Pump prices are 13.3 cents higher than a month ago and 80.2 cents more expensive than the same time last year, according to AAA, Wright Express and Oil Price Information Service. Motorists are paying 16 cents per gallon more now than they were at the start of the year.

Toyota stopping output in UK, France for 9 days

TOKYO (AP) -- Toyota said Friday it is stopping production at its factories in France and Britain for a total of nine days amid falling sales that the company partly attributed to its recent recall woes.

The world's No. 1 automaker will suspend output at it plant in France for four days starting April 6, said spokeswoman Ririko Takeuchi. Toyota will also stop production at its two factories in Britain for five working days sometime in May.

In early June, Toyota also plans to halt one of its two assembly lines at its Burnaston plant in Britain for another five working days, Takeuchi said.

By The Associated Press

The Dow rose 9.15, or 0.1 percent, to 10,850.36.

The Standard & Poor's 500 index rose 0.86, or 0.1 percent, to 1,166.59, while the Nasdaq composite index fell 2.28, or 0.1 percent, to 2,395.13.

Benchmark crude for May delivery fell 53 cents to settle at $80 a barrel on the New York Mercantile Exchange.

In other Nymex trading in April contracts, heating oil rose a fraction to settle at $2.0697 a gallon, and gasoline lost 1.03 cents to settle at $2.1975 a gallon. Natural gas gave up 10.9 cents to settle at $3.981 per 1,000 cubic feet.

In London, Brent crude fell 32 cents to settle at $79.29 on the ICE futures exchange.

 

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