The higher savings rate is healthy in the long term, economists
said. But without vigorous consumer spending, the government may have to do
more to revive the economy, possibly through further tax breaks and spending. The Commerce Department said Friday that consumer spending rose
0.3 percent in May, in line with expectations. But incomes jumped 1.4 percent,
the biggest gain in a year and easily outpacing the 0.3 percent increase that
economists expected. Stocks end mixed as savings rate jumps NEW YORK (AP) -- Stocks ended mixed Friday after the Commerce
Department reported that personal spending, incomes and savings all rose in
May. The trend suggests consumers are being extremely careful with their money.
That's good for the individual, but not great for the overall economy in the
short-term. That uncertainty, bolstered by a mix of promising and worrisome
data, has led to a choppy week in the stock market. After four straight days of
losses, the Dow Jones industrial average rebounded by 2.1 percent on Thursday.
But traders appeared eager to take some profits from that jump ahead of the
weekend, analysts said. The Dow Jones industrial average fell 34.01, or 0.4 percent, to
8,438.39. Treasury sets purchase process for bank warrants WASHINGTON (AP) -- The Obama administration on Friday established
its process for pricing billions of dollars worth of warrants that large banks
must repurchase to exit the $700 billion bailout program. The Treasury Department said the banks will make the first offer
for the warrants. Treasury will then decide to sell at that price or make a counteroffer.
If the government and a bank cannot agree on a fair price for the warrants, the
two sides will have the right to use private appraisers. Treasury also could auction to private bidders warrants from
banks that choose not to repurchase them. The banking industry immediately endorsed the plan, while critics
said it could shortchange taxpayers in the long-run. GM's plant decision brings Tennessee uncertainty SPRING HILL, Tenn. (AP) -- Workers at General Motors'
soon-to-be-idled assembly plant in Tennessee held out hope for a reprieve, but
now it's back to the waiting game. GM's decision Friday to build a new small car at a Michigan plant
allowed that economically battered state to rejoice, while the announcement is
likely a death knell for the third of the finalists in Janesville, Wis. Officials in Tennessee now hope that the Spring Hill plant on the
outskirts of Nashville will be assigned a new product before it is mothballed. Judge delays financier Stanford's release on bond HOUSTON (AP) -- Texas financier R. Allen Stanford, facing trial
on charges he swindled investors out of $7 billion, will spend at least the
weekend behind bars after a federal judge Friday ruled to delay his release on
bond. U.S. District Judge David Hittner granted a prosecution request
to delay a magistrate's order granting Stanford, once considered one of the
richest men in America, a $500,000 bond. Hittner, who is presiding over Stanford's case, ordered a hearing
for Monday to hear arguments on whether Stanford's bond should be revoked. KB Home new home orders up from 1Q LOS ANGELES (AP) -- Going into its second quarter, KB Home had
everyone wondering whether the homebuilder could duplicate the standout
performance of its first quarter -- posting a 26 percent year-over-year
increase in new orders for the first time in more than three years. The builder didn't even come close. On Friday, KB said new orders
in the second quarter were 31 percent below the second quarter last year. The
comparison to the first quarter fared far better, however, increasing by 59
percent. During a conference call with Wall Street analysts, CEO Jeffrey
Mezger said the company knew outpacing the prior-year pace for new home orders
was going to be tough, but projected it would be able to do so the rest of this
year -- assuming the economy doesn't get worse. Quantas cancels or delays 30 Boeing 787 orders NEW YORK (AP) -- Qantas Airways Ltd. said Friday it has canceled
orders for some Boeing 787s and delayed delivery of others as the recession
slows air travel and tight credit hampers purchases of new aircraft. Like other airlines, Qantas is struggling to fill seats and said
two months ago that it was renegotiating the delivery of 787s, originally
ordered in 2005. Besides empty airline seats, carriers are struggling with a
global credit crunch. Qantas and Chicago-based Boeing Co. have agreed to postpone
delivery of 15 787-8s by four years and cancel orders for 15 B787-9s, a
slightly larger plane. The move has nothing to do with the airplane maker's
announcement this week of a design problem in the 787 that caused yet another
delay of its first test flight, Qantas said. Retail gas drops every day this week NEW YORK (AP) -- Pump prices fell every day this week, easing off
a summer peak near $2.70 a gallon as U.S. storage facilities swelled with
unused gasoline. The national average for gasoline dropped less than a penny
Friday to $2.658 a gallon, according to auto club AAA, Wright Express and Oil
Price Information Service. Benchmark crude for August delivery fell $1.07 cents
to settle at $69.16 a barrel on the New York Mercantile Exchange. Oil prices followed stock markets lower on Friday as a wave of
speculative buyers looked for direction after the Federal Reserve said the
struggling economy would hold back inflation this year. Nestle refused FDA information, reports show NEW YORK (AP) -- Inspection reports from a Nestle USA cookie
dough factory released Friday show the company refused several times to provide
Food and Drug Administration inspectors with complaint logs, pest-control
records and other information. The records, which date back to 2004, were made public after
Nestle's Toll House refrigerated, prepackaged cookie dough was discovered to be
the likely culprit in an E. coli outbreak that has sickened 69 people in 29
states, according to the latest estimates from the federal Centers for Disease
Control. The CDC is investigating the outbreak along with the FDA. GE to build Michigan manufacturing research center BIRMINGHAM, Mich. (AP) -- General Electric Co. said Friday it
will build a $100 million manufacturing technology center in Michigan that will
eventually employ about 1,200 workers. The Advanced Manufacturing and Software Technology Center will
include a GE research and development facility with scientists and engineers
who will develop manufacturing technologies for GE's renewable energy, aircraft
engine, gas turbine and other products. The center, which is expected to open later this year in Van
Buren Township, Mich., also will develop software, networking and other
services. Hiring is expected to begin later this year. By The Associated Press The Dow Jones industrial average fell 34.01, or 0.4 percent, to
8,438.39. The Standard & Poor's 500 index fell 1.36, or 0.2 percent, to
918.90. The Nasdaq composite index rose 8.68, or 0.5 percent, to 1,838.22. Benchmark crude for August delivery fell $1.07 cents to settle at
$69.16 a barrel on the New York Mercantile Exchange. In London, Brent prices fell 86 cents to settle at $68.92 a
barrel on the ICE Futures exchange. In other Nymex trading, gasoline for July delivery fell 2.42
cents to settle at $1.8742 a gallon and heating oil lost 4.6 cents to settle at
$1.7303 a gallon. Natural gas for July delivery rose 11.6 cents to settle at
$4.105 per 1,000 cubic feet.