US retailers report May sales declines
NEW YORK (AP) -- Although
consumer confidence may be increasing, it's not showing up at the cash register
yet. Many retailers posted disappointing May sales on Thursday, and food and
necessities remained high on shoppers' lists.
According a Goldman
Sachs/ICSC tally, overall same-store sales fell 4.6 percent, worse than the 3
percent drop predicted.
The lower-than-expected
results did not include Wal-Mart stores, which in recent months has boosted
total results but has stopped reporting monthly figures.
Last month's same-store
sales had edged up with Wal-Mart, but excluding the world's largest retailer,
May was the 10th straight month of same-store sales
Jobless benefit rolls fall,
initial claims dip
WASHINGTON (AP) -- The
number of people on the unemployment insurance rolls fell slightly for the
first time in 20 weeks, while the tally of new jobless claims also dipped, the
government said Thursday.
The Labor Department report
provides a glimmer of good news for job seekers, though both drops were small
and the figures remain significantly above the levels associated with a healthy
economy. The job market likely will remain weak well into next year, according
to estimates from government and private economists.
The department also said
U.S. workers were more productive in the first quarter than previously
estimated, as rapid layoffs forced companies to make do with fewer employees.
Bank, energy stocks pull
market higher
NEW YORK (AP) -- Stocks rose
for the fifth time in six days following a rally in financial and energy
shares. Analysts have upgraded bank stocks and oil prices hit fresh highs for
the year.
Investors gained some
confidence in the prospects for the overall economy after the number of workers
continuing to receive unemployment benefits unexpectedly fell for the first
time in 20 weeks. Analyst upgrades of bank stocks and rising oil prices
attracted investor dollars to those parts of the market.
The Dow Jones industrial
average rose 74.96, or 0.9 percent, to 8,750.24.
SEC charging ex-Countrywide
CEO Mozilo with fraud
WASHINGTON (AP) -- Federal
regulators on Thursday charged Angelo Mozilo, the former chief executive of
mortgage lender Countrywide Financial Corp., and two other company executives
with civil fraud.
The Securities and Exchange
Commission's civil lawsuit, filed in federal district court in Los Angeles,
also accuses Mozilo of illegal insider trading.
Countrywide was a major
player in the subprime mortgage market, the collapse of which in 2007 touched
off the financial crisis that has gripped the U.S. and global economies.
Mozilo, 70, is the most
high-profile individual to face formal charges from the federal government in
the aftermath of the crisis.
Oil rises to new high for
2009, near $70 barrel
NEW YORK (AP) -- Oil prices
on Thursday set a new high for the year, buoyed by a weaker dollar and the
first drop in unemployment since January.
Benchmark crude for July
delivery was up $2.69 to settle at $68.81 a barrel on the New York Mercantile
Exchange. Oil climbed as high as $69.60 earlier in the day.
In London, Brent prices rose
$2.83 to settle at $68.71 a barrel on the ICE Futures exchange.
Oil prices have rallied for
three months, and they soared this week to their highest levels since November.
Crude now fetches nearly twice its February price, mostly on the expectation
that the dismal U.S. economy could be stabilizing.
Chrysler dealers question
franchise terminations
NEW YORK (AP) -- A parade of
Chrysler dealers slated to lose their franchises took the stand Thursday in the
automaker's bankruptcy protection case, one choking back tears, as they touted
their sales and service records and questioned how they were chosen for
termination.
Just under 20 dealers were
sworn in at the beginning of the day, but only about 14 testified, and no
Chrysler officials took the stand. Arguments on the motion are scheduled for
Tuesday.
It was unclear when U.S.
Judge Arthur Gonzalez will rule on Chrysler's motion to cancel the dealerships'
franchise agreements, or how this will effect Chrysler's plans to sever ties
with them effective Tuesday.
European, British central
banks keep rates steady
LONDON (AP) -- The European
Central Bank and the Bank of England both kept official interest rates at
record lows on Thursday, adopting a cautious holding stance amid fledgling
signs of an economic recovery across Europe.
Both banks warned against
celebrating the end of the recession too early, with the ECB lowering its
growth forecast for next year.
The ECB provided more details
on its plans to pump some 60 billion euros into the banking system through
purchases of covered bonds -- a measure that appeared to stop short of further
monetary expansion -- while the Bank of England reiterated its commitment to a
125 billion pound ($205 billion) program to inject newly created money into the
economy by buying government and corporate bonds.
Biogen Idec says Icahn
candidate wins board seat
CAMBRIDGE, Mass. (AP) --
Biogen Idec says a candidate nominated by activist shareholder Carl Icahn won a
seat on the drug maker's board of directors as part of a contentious proxy
fight, but the votes are still too close to call on a second seat.
Icahn claims his portfolio
manager Dr. Alexander J. Denner and Dr. Richard C. Mulligan, a Harvard Medical
School professor, have won seats on the board. Biogen says Denner won a place
on the board, but it will rely on the tabulation of votes by the an independent
elections inspector before announcing the results for the final board member.
United goes jet shopping
with Boeing and Airbus
UNDATED (AP) -- United
Airlines confirmed on Thursday that it will seek bids from airplane makers
Boeing Co. and rival Airbus for a major jet order that could be placed as soon
as this fall.
The nation's third-largest
airline said it will look for proposals to replace its widebody fleet over
several years, as well as its Boeing 757s.
Unlike other carriers that
have at least kept their toes in the new-jet pool, United has held back on
ordering new airplanes. It has been shrinking to try to match the flying it
does with remaining demand, and it's working on eliminating its Boeing 737
fleet altogether.
Intel to buy software maker
Wind River for $884M
SANTA CLARA, Calif. (AP) --
Intel Corp. said Thursday it will buy software maker Wind River Systems Inc.
for $884 million in an all-cash deal that will help the world's largest
computer chip maker expand beyond the PC market.
Intel said the purchase will
benefit its processor and software offerings for embedded systems and mobile
devices, which run the gamut from smart phones to networking equipment.
Though the recession has
hurt demand for PCs in general, there has been growing demand for products
containing the company's lower-powered Atom processor, which is used in small
electronics like the stripped-down laptops known as netbooks. The acquisition
may be a way for Intel to beef up Atom-related offerings.
By The Associated Press
The Dow Jones industrial
average rose 74.96, or 0.9 percent, to 8,750.24. The broader Standard &
Poor's 500 index rose 10.70, or 1.2 percent, to 942.46, and the Nasdaq
composite rose 24.10, or 1.3 percent, to 1,850.02.
Benchmark crude for July
delivery was up $2.69 to settle at $68.81 a barrel on the New York Mercantile
Exchange. Oil climbed as high as $69.60 earlier in the day.
In London, Brent prices rose
$2.83 to settle at $68.71 a barrel on the ICE Futures exchange.
In other Nymex trading,
gasoline for July delivery rose 6.05 cents to settle at $1.9621 a gallon and
heating oil gained 4.56 cents to settle at $1.784 a gallon. Natural gas for
July delivery added 4.4 cents to settle at $3.81 per 1,000 cubic feet.