Stocks jump on renewed optimism on housing, banks
The Dow Jones industrial average shot up 235 points to 8,504.08,
making up three-quarters of last week's losses. All the major indexes rose
about 3 percent.
A better-than-expected profit report from Lowe's Cos., an uptick in homebuilder sentiment and positive
comments from analysts about
Obama set to release pollution standards
WASHINGTON (AP) -- President Barack Obama will issue new fuel efficiency
standards and pair them with a broader goal of reducing pollution from vehicle
tailpipes, marking the first time limits on greenhouse gases will be linked to
federal standards for cars and trucks.
Officials familiar with the administration's discussions say
Obama will unveil the new standards on Tuesday. The officials spoke on
condition of anonymity because the official announcement had not been made.
White House spokesman Robert Gibbs would not release details of
the announcement on Monday, although he said the administration has been
working with states, businesses and environmental groups on a deal.
Lowe's 1Q profit falls, but tops Wall Street view
CHICAGO (AP) -- Lowe's Cos. Inc. said shoppers buying paints,
plants and replacement parts in the first quarter helped the home-improvement
chain beat Wall Street forecasts and prompted it to boost its full-year
outlook.
The results sent the company's shares higher Monday as the
company said business was "less bad" in all regions of the country
and that economic conditions may -- slowly -- be
improving.
For the three months that ended May 1, Lowe's said it earned $476
million, or 32 cents per share. That's down nearly 22 percent from the previous
year's profit of $607 million, or 41 cents per share, but was well ahead of
forecasts.
Homebuilder sentiment index jumps 2 points
LOS ANGELES (AP) -- Homebuilders are growing more optimistic
about the state of housing and say they see signs that the end of the housing
market's three-year downward spiral may be near.
The increasingly upbeat mood was reflected in an index of
builders' confidence released Monday, which rose for the second month in a row
in May.
A separate report by the industry's trade group showed housing
affordability improved in the first three months of this year amid falling home
prices and low interest rates.
Dealer group, Chrysler in franchise closing talks
NEW YORK (AP) -- A group representing Chrysler dealers said
Monday it is in talks with the automaker in hopes of getting it to scale back
plans to terminate the franchise agreements of about a quarter of its dealers.
Michael Bernstein, an attorney for the Chrysler National Dealer
Council, said that while it's unlikely that Chrysler LLC will change its mind
about eliminating dealer franchises, he's optimistic that the company will at
least agree to end fewer than the 789 originally listed in its court motion.
In addition, he said the group wants to ensure that the dealers
whose franchise agreements ultimately are terminated get the help they need
from Chrysler for a smooth transition.
GM, UAW in dispute over imports and plant closures
DETROIT (AP) -- Critical concession talks between General Motors
Corp. and the United Auto Workers are being overshadowed by a public spat about
the automaker's plans to import vehicles from other countries while it closes
16
The fight, which began last week, continues with less than two
weeks left before a June 1 deadline for GM and the union to reach a deal on
concessions that are a critical part of the automaker's government-ordered
restructuring.
If GM can't reach deals with the union, debt holders and other
stakeholders by the deadline, the century-old
Energy prices bounce back ahead of holiday
SIOUX FALLS, S.D. (AP) -- Energy prices resumed their climb into
summer driving season Monday, a show of confidence that Americans will overlook
dismal economic news as they head out on their Memorial Day weekend trips.
Benchmark crude for June delivery jumped $2.69 to settle at
$59.03 a barrel on the
With the June Nymex contract expiring
Tuesday, the market was also keeping close tabs on the July contract, which rose $2.59 to settle at $59.59.
Retail gasoline prices inched up again overnight to a new
national average of $2.311 for a gallon of regular unleaded, according to auto
club AAA, Wright Express and Oil Price Information Service.
US: Drugmaker Wyeth cheated Medicaid
WASHINGTON (AP) -- The Justice Department on Monday accused
Wyeth, one of the nation's biggest drugmakers, of
cheating Medicaid programs out of hundreds of millions of dollars by
overcharging for a stomach acid drug.
The Justice Department and more than a dozen states have joined
in two whistleblower lawsuits against the Madison, N.J.-based drug company
filed in federal court in
The court papers claim that between 2000 and 2006, Wyeth offered
steep discounts to thousands of hospitals for two versions of Protonix, a drug that suppresses stomach acid.
Post office has cut 25,000 jobs this year
WASHINGTON (AP) -- The U.S. Postal Service
has cut its staff by 25,000 this year as it struggles to reduce massive
deficits, Postmaster General John Potter said Monday.
Postal employment is now below 635,000, Potter said, down from
about 800,000 in 1999. Thousands of carrier routes have also been eliminated as
mail volume declines, he said.
The agency still faces a potential $6.5 billion loss this year,
Potter said, and even with increased borrowing and other changes it could
finish the year with a $1.5 billion shortfall.
MUMBAI, India (AP) -- India's stock market surged an
unprecedented 17 percent, forcing trade to close for the day, after the
Congress Party's definitive victory in national elections set the scene for
long-delayed economic reforms.
In just seconds of trading, the
The rupee rose over 3 percent Monday, to close at 47.88 rupees
per dollar in
By The Associated Press
The Dow rose 235.44, or 2.9 percent, to 8,504.08. That was the
biggest point gain since a 246-point jump on April 9.
The S&P 500 index rose 26.83, or 3
percent, to 909.71, putting it back into positive territory for the year.
The Nasdaq composite index
rose 52.22, or 3.1 percent, to 1,732.36.
Benchmark crude for June delivery jumped $2.69 to settle at
$59.03 a barrel on the
In
In other Nymex trading, gasoline for
June delivery jumped 7.75 cents to settle at $1.7581 a gallon and heating oil
gained 5.7 cents to settle at $1.4757 a gallon. Natural gas for July delivery
rose 4.8 cents to settle at $4.265 per 1,000 cubic feet.