Obama touts plan for
cleaner, more efficient cars
WASHINGTON (AP) -- President
Barack Obama is asking consumers to put their money -- up to $1,300 per new
vehicle by 2016 -- behind his plan for higher efficiency standards for cars and
trucks and tougher rules on their greenhouse gas emissions.
In return, Obama said
Tuesday in unveiling the plan, drivers would make up the higher cost of more
fuel-efficient, cleaner vehicles by buying less gas at the pump. It would take
just three years to pay off the investment and would, over the life of a
vehicle, save about $2,800 though better gas mileage, the president said.
Housing bottom in sight, but
recovery will be slow
WASHINGTON (AP) --
Single-family home construction posted a modest rebound in April, raising hopes
that the three-year slide in housing is leveling off. But a bulging supply of
unsold homes, record levels of foreclosures and still-falling home prices
suggest a sustained recovery isn't likely until next spring at the earliest.
The Commerce Department said
construction of homes and apartments fell 12.8 percent last month to a
seasonally adjusted annual rate of 458,000 units. That's the lowest pace on
records going back a half-century.
Applications for new
building permits dropped 3.3 percent to an annual rate of 494,000, also a
record low.
Surprise drop in housing
data checks market's rise
Stocks ended narrowly mixed
in light trading as the surprise drop in construction and a cautious outlook
from retailer Home Depot Inc. caused energy and utility stocks to pare gains.
On Monday, encouraging news
from Home Depot rival Lowe's Cos. and an improving outlook for banks had pushed
the Standard & Poor's 500 index back into positive territory for the year.
It's still up for 2009 after Tuesday's dip, but hanging on by just five points.
The Dow Jones industrial
average fell 29.23, or 0.3 percent, to 8,474.85.
Senate passes credit card
overhaul bill
WASHINGTON (AP) -- The
Senate voted overwhelmingly on Tuesday to rein in credit card rate increases
and excessive fees, hoping to give voters some breathing room amid a recession
that has left hundreds of thousands of Americans jobless or facing foreclosure.
The House was on track to
pass the measure as early as Wednesday, paving the way for President Barack
Obama to see the bill on his desk by week's end.
If enacted into law as
expected, the credit card industry would have nine months to change the way it
does business: Lenders would have to post their credit card agreements on the
Internet and let customers pay their bills online or by phone without an added
fee. They'd also have to give consumers a chance to spare themselves from
over-the-limit fees and provide 45 days notice and an explanation before
interest rates are increased.
Home Depot shares fall,
despite 1Q profit beat
CHICAGO (AP) -- The Home
Depot Inc. posted a 44 percent increase in its first-quarter profit on Tuesday,
but didn't live up to the market's high expectations a day after rival Lowe's
Cos. Inc. boosted its full-year outlook.
The volatile housing market
continued to drag down revenue and hurt business in states with the highest
foreclosure rates, Home Depot said -- taking a decidedly less optimistic view
than its chief competitor, whose own results Monday helped lead a market rally.
Investors saw Lowe's as the
winner of the quarterly duel, thanks to its higher sales at established stores
and better gross margins -- meaning it made more profit off the goods its sold
as it cut costs.
TARP repayments from big
banks may start in June
WASHINGTON (AP) -- The
Federal Reserve said Tuesday that approval for big banks seeking to repay
bailout money could start in early June.
A Fed official said several
of the country's 19 largest banks that participated in the recent stress tests
are interested in repaying the money they received from the government's $700
billion bailout fund.
The official said the Fed,
which supervises the largest banks, had requested additional information from
the banks needed to support the repayment requests. This official, who spoke on
condition of anonymity because the applications are still being reviewed, said
the earliest that announcements could be made would be the week of June 8.
Merkin to cede control of
funds that fed to Madoff
The attorney general's
office had requested the turnover agreement in connection with its civil fraud
lawsuit accusing Merkin of convincing clients he was managing their money when
he was actually funneling $2.4 billion to Madoff's Ponzi scheme.
The deal, which was
discussed in court Tuesday and was expected to be approved by a judge on
Thursday, is not a settlement in the case, the attorney general's office said.
6 independent AIG directors
to stand for election
Six new nominees will be up
for election at the New York-based company's annual meeting on June 30. AIG's
Web site lists nine current board directors, including Ed Liddy, the company's
chairman and chief executive.
It wasn't immediately known
if any current directors are up for re-election. The company's full slate for
board nominees will be disclosed in the company's forthcoming proxy statement,
AIG spokeswoman Christina Pretto said.
Medtronic to cut up to 1,800
jobs after profit dip
UNDATED (AP) -- Medical
device maker Medtronic said Tuesday it would cut up to 1,800 employees after
its fiscal fourth-quarter plunged 69 percent on slipping sales and
restructuring and other charges.
Its adjusted earnings
matched Wall Street expectations, but shares fell after the company forecast
disappointing sales guidance and announced the layoffs.
The company recorded a $27
million restructuring charge in connection with cutting 1,500 to 1,800 jobs, a
move aimed at streamlining operations for underperforming units, such as
cardiac surgery. About 400 employees already have accepted buyout offers and
will leave the company by the end of the month.
Crude prices follow stock
market higher
Benchmark crude for June
delivery rose 82 cents to $59.85 a barrel on the New York Mercantile Exchange
after hitting as high as $60.48. With the June contract expiring Tuesday,
however, most traders were focused on the July contract, which rose 70 cents to
$60.29.
By The Associated Press
The Dow Jones industrial
average fell 29.23, or 0.3 percent, to 8,474.85.
Broader stock indicators
were mixed. The S&P 500 index fell 1.58, or 0.2 percent, to 908.13, while
the Nasdaq composite index rose 2.18, or 0.1 percent, to 1,734.54.
Benchmark crude for June
delivery rose 62 cents to settle at $59.65 a barrel on the New York Mercantile
Exchange after hitting as high as $60.48.
In other Nymex trading,
gasoline for June delivery rose 5.44 cents to settle at $1.8125 a gallon and
heating oil rose 1.09 cents to settle at $1.4866 a gallon. Natural gas for July
delivery fell 23.5 cents to settle at $4.03 per 1,000 cubic feet.
Brent crude rose 45 cents to
settle at $58.92 on the ICE Futures exchange.