Mortgage rates are back near record low WASHINGTON (AP) -- Turmoil in the stock
market and the European debt crisis are making life easier for American
homebuyers and families looking to refinance: Mortgage rates are inching closer
to a record low. The window of opportunity may close
soon. Home loan rates will rise if investors grow more confident and shift
money out of the safety of government bonds, which influence mortgage rates. For now, though, rates are
tantalizingly low. The average 30-year fixed-rate loan sank to 4.78 percent
this week, the lowest this year and barely above the record of 4.71 percent set
in December. And 15-year loans are at their lowest rates in two decades. Slow-motion recovery keeps unemployment
high WASHINGTON (AP) -- Two government
reports offered new evidence the recovery is too weak to generate enough jobs
for 15.3 million unemployed people. The economy grew at a 3 percent annual
rate from January to March, according to a new estimate released by the
Commerce Department Thursday. The new reading, based on more complete
information, was slightly weaker than an initial estimate of 3.2 percent a
month ago. In a separate report, the Labor
Department said the number of newly laid off workers filing claims for
unemployment benefits fell to 460,000 last week. But the latest level of claims
is actually higher than it was at the start of the year. Stocks jump after China shows
confidence in Europe NEW YORK (AP) -- Stocks had another
turnaround Thursday and rocketed higher after China reassured investors it
doesn't plan to sell the European debt it holds. The Dow Jones industrial average surged
nearly 285 points, while Treasury prices tumbled as traders funneled money into
riskier assets like stocks and commodities. The show of confidence in Europe let
the market resume a rally that stalled late Wednesday following a report that
China was considering cutting its exposure to European debt. That would have
signaled that China didn't think Europe would be able to contain the crisis.
The agency that manages China's $2.5 trillion in foreign reserves denied the
report. Lawmakers press J&J to explain
"phantom recall" WASHINGTON (AP) -- Congressional
investigators said Wednesday that Johnson & Johnson hired a private company
that bought up defective packets of pain relievers in 2008 before recalling the
pills months later, after prodding from federal regulators. The new questions about J&J's
handling of quality issues came during a hearing about its latest recall
involving over 100 million bottles of children's medicine, some of which
contained tiny particles of metal. Last month J&J's McNeil division
recalled more than 40 varieties of children's medicines after the Food and Drug
Administration discovered a slew of violations at a company plant. Gulf leak eclipses Exxon Valdez as
worst US spill COVINGTON, La. (AP) -- BP's attempt to
choke off the gusher at the bottom of the Gulf of Mexico appeared to be making
some progress, officials said Thursday as dire new government estimates showed
the disaster has easily eclipsed the Exxon Valdez as the biggest oil spill in
U.S. history. As the world waited to see whether the
"top kill" would work, President Barack Obama announced major new
restrictions on drilling projects, and the head of the federal agency that
regulates the industry resigned under pressure, becoming the highest-ranking
political casualty of the crisis so far. Shoppers' little extras push Costco
profit higher PORTLAND, Ore. (AP) -- Shoppers at
Costco Wholesale Corp. are beginning to pick up a few modest extras such as
doormats and coffee makers along with their must-haves like food, the company
said Thursday. The stronger sales to everyday shoppers
and small businesses helped drive the nation's largest warehouse club's net
income up 46 percent for the quarter. The company, based in Issaquah, Wash.,
reported that it earned $306 million, or 68 cents per share. That's up from
$210 million, or 48 cents per share, a year ago. Adjusted for special items in
both periods, the company earned 66 cents per share for the quarter versus 53
cents per share in the prior year. Tiffany's 1Q profit more than doubles NEW YORK (AP) -- Jewelry and gift
seller Tiffany & Co.'s net income more than doubled in the first quarter as
its revenue rose in the U.S. and soared 50 percent in Asia, the company said
Thursday. Tiffany, based in New York and known
for its silver jewelry and signature turquoise gift boxes, also forecast higher
full-year profit than Wall Street expects. The robust earnings report offers signs
that affluent shoppers are keeping their spending up, even buying jewelry for
more than $50,000 apiece, after they pulled back during the depths of the
recession. The company cautioned that spending is being compared with sharp
declines from a year ago. Heinz pours on a 9.8 pct rise in 4Q net
income NEW YORK (AP) -- Rising revenue in Asia
and the Pacific outpaced food maker H.J. Heinz Co.'s growth in the U.S. and Europe
and helped its fourth-quarter net income climb 9.8 percent, the company said
Thursday. The maker of Ore-Ida potatoes, Classico
pasta sauce and its signature ketchup said cutting costs and raising its prices
also helped, by making up for rising ingredient prices. Heinz, based in Pittsburgh, raised its
2011 dividend 12 cents to $1.80 and offered guidance for the next year in line
with Wall Street analysts' estimates. Geithner: US, Europe broadly agree on
reform BERLIN (AP) -- The United States and
Europe broadly agree on the need for reform of the financial system, but global
cooperation is needed, U.S. Treasury Secretary Timothy Geithner said Thursday.
He also said countries are working together to balance cutting back deficits
with supporting economic growth. Geithner met German Finance Minister
Wolfgang Schaeuble during a two-day visit to Europe that also took him to
Britain and to the European Central Bank in Frankfurt. The trip comes amid ongoing market
volatility following European nations' agreement this month on a nearly $1
trillion loan backstop for governments in danger of defaulting on debt --
coupled with efforts to cut budget deficits. By The Associated Press The Dow rose 284.54, or 2.9 percent, to
10,258.99. The Standard & Poor's 500 index rose
35.11, or 3.3 percent, to 1,103.06. The Nasdaq composite index climbed 81.80,
or 3.7 percent, to 2,277.68, putting it back in the black for 2010. Benchmark crude for July delivery rose
$3.04 to settle at $74.55 a barrel on the New York Mercantile Exchange. In other Nymex trading in July
contracts, heating oil rose 7.87 cents to settle at $1.9994 a gallon, and
gasoline gained $6.85 cents to settle at $2.0389 a gallon. In London, Brent crude added $2.92 to
settle at $74.66 on the ICE futures exchange.