Consumer prices dip unexpectedly in March
WASHINGTON (AP) -- Consumer prices dipped unexpectedly in March,
leaving prices over the past year falling at the fastest clip in more than a
half-century. The recession is expected to keep a lid on inflation as
widespread layoffs dampen wage pressures and weak demand keeps companies from
raising prices.
The Labor Department said Wednesday that consumer prices edged
down 0.1 percent last month as a drop in energy prices offset the biggest rise
in tobacco prices in more than a decade. It was a better performance than the
0.1 percent rise in the Consumer Price Index that economists had expected.
Fed survey finds faint signs of hope
WASHINGTON (AP) -- The Federal Reserve said Wednesday there are some
faint signs the steep plunge in economic activity that began last fall is
starting to level off.
The Fed's latest survey of business conditions nationwide found
five of its 12 regional banks reporting a moderation in the pace of the
economic decline.
The survey, known as the Beige Book, struck a slightly more
positive tone than last month's report, which described an economy plunging
rapidly after the financial shocks that occurred last fall.
Hints of stabilizing economy spark late rally
Early caution gave way to a rally in the last hour of trading as
investors looked for stocks that could benefit from a rebound. Technology
stocks lagged after Intel Corp.'s tightlipped forecast caused jitters about a
corner of the market that had drawn buyers over the past month.
The Dow Jones industrial average ended with a gain of 109 points
to 8,029.62.
Fiat CEO: Concessions or no Chrysler deal
MILAN (AP) -- Automaker Fiat Group SpA
will walk away from a deal to take a 20 percent stake in Chrysler LLC if the
U.S. automaker's unions don't agree to major cost cuts, Fiat CEO Sergio Marchionne said in an interview published Wednesday.
Fiat and Chrysler are up against an April 30 deadline for Fiat to
take a stake in the failing
Quest pays $302 million to settle misbranding case
In a statement Wednesday, the Department of Justice said the
settlement represents one of the largest recoveries ever in a case involving a
medical device. Quest and its subsidiary Nichols Institute Diagnostics will pay
the U.S. $262 million plus interest to resolve civil charges for misleading
product claims.
Charles Schwab 1Q earnings fall 29 percent
Shares jumped nearly 10 percent in early trading, and were up
more than 10 percent, or $1.69, to $18.05 at the close.
The San Francisco-based brokerage and investment manager earned
$218 million, or 19 cents per share, down from $305 million, or 26 cents per
share, a year earlier.
Investor group says it may buy GM's Saturn brand
The proposal from a group led by Black Oak Partners LLC is among
several that GM has received for the brand, said GM spokesman Mike Morrissey.
The group said in a statement issued Wednesday that it would get
vehicles from GM initially, but it expects to sell smaller, fuel-efficient
vehicles from other global manufacturers.
Treasury says bank lending declined in February
WASHINGTON (AP) -- Bank lending to consumers and businesses for
many types of loans fell in February despite the billions of dollars in
government support the banks received.
The Treasury Department said Wednesday its latest monthly survey
of lending activities at the nation's biggest banks showed nine reported
increases and 12 posted declines. The median, or midpoint, for lending activity
slipped 2.2 percent in February.
While the median level of activity in mortgage lending rose 35.4
percent and home equity lines of credit grew 17.7 percent, lending to
businesses for commercial and industrial loans plunged 47 percent.
AMR loses $375M, sees challenges ahead
DALLAS (AP) -- American Airlines parent AMR Corp. lost $375
million in the first quarter as people flew less this year than they did a year
earlier, and officials said May and June bookings look like more of the same.
Still, the loss reported Wednesday was much narrower than Wall
Street expected, and AMR's long-depressed shares jumped 79 cents, or 18.7
percent, to close at $5.01 after hitting $5.15 earlier in the day.
Even though it cut flights, American's planes were not as full.
Corporate travel was especially weak and revenue tumbled 15 percent compared
with the first quarter of 2008, wiping out the airline's gain from cheaper
fuel.
UBS sees $1.75B 1Q loss, to cut 8,700 jobs
GENEVA (AP) -- Troubled Swiss banking giant UBS AG said Wednesday
that it will slash its global work force of 76,200 people by more than 10
percent as part of across-the-board cost cutting to return to profit after
racking up billion dollar losses for yet another quarter.
The 8,700 job cuts will hit the
By The Associated Press
The Dow Jones industrial average rose 109.44, or 1.4 percent, to
8,029.62.
The Standard & Poor's 500 index rose 10.56, or 1.3 percent,
to 852.06. The tech-heavy Nasdaq
composite index edged up 1.08, or 0.1 percent, to 1,626.80.
Benchmark crude for May delivery dropped 16 cents to settle at
$49.25 a barrel on the
In
In other Nymex trading, gasoline for
May delivery fell less than a penny to settle at $1.4509 a gallon. Heating oil
for May delivery was unchanged, settling at $1.401 per gallon. Natural gas for
May delivery lost less than a penny to settle at $3.681 per 1,000 cubic feet.