Higher consumer spending in Q1 still
lacks vigor WASHINGTON (AP) -- Consumers spent more
and helped lift the economy last quarter but not enough to ignite the recovery
and drive down unemployment. Spending by consumers rose by the
fastest pace in three years, the Commerce Department said Friday . That helped
the economy grow at a 3.2 percent pace in the January-to-March quarter. It
marked the third straight quarterly gain as the United States heals from the
longest and deepest recession since the 1930s. Stocks fall on weaker-than-expected
economic data NEW YORK (AP) -- Stocks ended April
with a big loss Friday on disappointment with two economic reports and worries
about a criminal investigation of The Dow Jones industrial average fell
158 points, and all the major indexes fell more than 1 percent. Investors lost some of their optimism
about the economy after the government's weaker-than-expected gross domestic
product report and news of a drop in consumer sentiment. Reports that the
government has started a criminal investigation of Goldman sent financial
stocks tumbling. Investors feared that possible charges against the company
could have a chilling effect on the banking industry. AP sources: Madoff sons, brother may
face charges NEW YORK (AP) -- Federal authorities
will charge at least two employees from disgraced financier Bernard Madoff's
former firm in the coming weeks -- and Madoff's brother and two sons could be
next, two people familiar with the probe into Madoff's financial fraud told The
Associated Press. Madoff's brother, Peter, and sons
Andrew and Mark -- executives in the Madoff firm's legitimate market-making and
proprietary-trading business -- are likely to face tax fraud charges later this
year, but may escape more serious securities fraud charges if authorities fail
to come up with solid evidence they knowingly participated in the massive
fraud, the people said. Fed adopts plan to let banks set up CDs WASHINGTON (AP) -- The Under the plan, the Fed would offer
so-called "term deposits" that would pay interest. Doing so would
provide banks with another incentive to park their money at the Fed, rather
than having it flow back into the economy. Once the economy is on firm footing,
this would be one of the tools the Fed could use to tighten credit. The Fed says Friday's action has
"no implication for the near term conduct of monetary policy." Drilling stocks sell off amid industry
scrutiny NEW YORK (AP) -- Investors sold shares
of companies with ties to oil drilling in the Gulf of As the extent of the spill unfolded,
investors tried to determine the near- and long-term impact. Shares of
companies that operate offshore rigs fell while major oil producers that
reported healthier first-quarter earnings this week fared better. Oil spewing from the deepwater well
where an explosion occurred 10 days ago reached Louisiana's wetlands as storms
threatened to deter efforts to protect the environment. Greek PM says more cuts needed for
survival ATHENS, Greece (AP) -- Facing a dire
choice of additional pain or bankruptcy, Greece on Friday heralded drastic new
cuts and tax increases to win rescue loans from its European partners and the
International Monetary Fund -- and avoid a disastrous default on government
debt. Prime Minister George Papandreou said
cuts are inevitable if the country is to keep afloat. Greece, the EU and the IMF are expected
to complete talks this weekend over what extra steps Athens must take as a
condition of the rescue, which would provide 45 billion euros in loans this
year and up to a reported 120 billion euros over three years. Goldman shares plunge as feds open
criminal probe WASHINGTON (AP) -- Shares of The criminal inquiry follows civil
fraud charges filed by the government against Goldman two weeks ago and as
Congress pushes toward enacting sweeping legislation aimed at preventing
another near-meltdown of the financial system. The investigation by the U.S.
attorney's office in Manhattan stems from a criminal referral by the Securities
and Exchange Commission, a knowledgeable person said Thursday. The person spoke
on condition of anonymity because the inquiry is in a preliminary phase. Avon Products 1Q profit drops with
currency hit NEW YORK (AP) -- A currency devaluation
in But consumers in many international
markets spent more on Avon's cosmetics and other products, and its revenue
climbed 15 percent, the company said Friday. Avon, whose force of thousands of
independent sellers ballooned during the recession as unemployed workers sought
new income, increased its marketing spending during the quarter and continued
to recruit sellers to promote its low-price products, some of which sell for
less than $5. NEW YORK (AP) -- The San Ramon, Calif. oil company
reported income of $4.55 billion, or $2.27 per share, for the first three
months of the year. That compares with $1.84 billion, or 92 cents per share, in
the same part of 2009. Excluding charges associated with employee
reductions in its refining, marketing and chemicals business, Employment costs up 0.6 percent in
first quarter WASHINGTON (AP) -- Employment costs
rose modestly in the first quarter, reflecting an acceleration in the cost of
benefits such as pensions. The Labor Department says that its
Employment Cost Index rose 0.6 percent for the three months ending in March. It
was the biggest quarterly gain since a similar 0.6 percent rise in the third
quarter of 2008. Economists had expected a smaller 0.5 percent increase. Even with the slight uptick, employment
costs remain subdued, rising by just 1.7 percent for the 12 months ending in
March as the worst recession since the Great Depression has kept a lid on
employee compensation. By The Associated Press The Dow fell 158.71, or 1.4 percent, to
11,008.61. The Standard & Poor's 500 index
fell 20.09, or 1.7 percent, to 1,186.69, while the Oil rose 98 cents to settle at $86.15
per barrel on the New York Mercantile Exchange. In other Nymex trading in May
contracts, heating oil rose 3.73 cents to settle at $2.2888 a gallon, and
gasoline gained 4.07 cents to settle at $2.3963 a gallon. Natural gas lost 6
cents to settle at $3.920 per 1,000 cubic feet. In London, Brent crude rose 54 cents to
settle at $87.44 per barrel on the ICE futures exchange.