AP
Business Highlights
Tuesday November 11, 7:34 pm ET

Government launches new loan aid effort

WASHINGTON (AP) -- The government and the mortgage industry are launching the most sweeping effort yet to help troubled homeowners by speeding up the process for renegotiating hundreds of thousands of delinquent loans held by Fannie Mae and Freddie Mac.

The Federal Housing Finance Agency, which seized control of the two mortgage finance companies in September, announced the plan Tuesday along with other government and industry officials, including Hope Now, an alliance of mortgage companies organized by the Bush administration last year.

Consumer spending worries send stocks lower

NEW YORK (AP) -- Wall Street got another dose of painful reality Tuesday and sent stocks diving as investors recognized that few industries are safe from the consumer spending slump -- whether they're building homes, making cars or selling coffee. The Dow Jones industrial average lifted off its lows of the day, but still closed down nearly 180 points at 8,693.96.

It became clear to investors that it's going to be hard to rely on the average consumer to pull the economy out of its downturn. Stocks did recover from deeper losses after a media report that quoted a BlackRock executive as saying a $30 billion Bear Stearns mortgage portfolio could be worth more than its market value suggests.

Toll Brothers 4Q revenues decline 41 percent

Blaming the U.S. financial crisis for squelching early signs that the housing market was beginning to stabilize in recent weeks, homebuilder Toll Brothers Inc. reported a 41 percent plunge in fourth-quarter sales Tuesday and called on government intervention to help shore up the housing market.

The Horsham, Pa.-based company's preliminary results for its fiscal fourth quarter reflected worsening fortunes as the financial crisis took hold: Cancelations jumped 30 percent, while demand and traffic from prospective buyers fell last month to a record low, the company said.

Gasoline continues plunge; crude tumbles below $60

HOUSTON (AP) -- Retail gasoline prices dipped for a 17th week since July 4, falling below $2 a gallon in a number of states and approaching $1.50 at some service stations. The price of crude fell again too, hitting a 20-month low.

While consumers, worried about a weak job market and slumping investments, are grateful for the price relief, economic reports increasingly suggest they're hanging onto whatever savings they see at the pump.

Light, sweet crude for December delivery fell $3.08 to settle at $59.33 a barrel on the New York Mercantile Exchange, the lowest closing price since March 2007. Prices had dipped a dollar below that earlier in the day.

Stores see surge in applicants for holiday help

NEW YORK (AP) -- The odds of landing a part-time job at department store operator Bealls Outlet Stores Inc. this holiday season are slimmer than getting into Harvard: It's one out of every 45.

Don't think the chances are any better at 7-Eleven. One California store received more than 100 applicants in a week and a half for jobs that pay $8.50 per hour -- and the retailer doesn't even usually hire holiday workers.

From department stores and convenience chains to call centers, managers who only a year ago had to scramble to fill holiday jobs are seeing a surge in the number of seasoned applicants -- many of them laid off in other sectors and desperate for a way to pay the bills.

TJX sees 3Q profit slip 6 percent

FRAMINGHAM, Mass. (AP) -- TJX Cos., which operates the T.J. Maxx and Marshalls stores, reported a 6 percent decline in third-quarter profit as unfavorable exchange rates and a tough economy crimped results for the discount fashion retailer.

The company also forecast a lower-than-expected fourth-quarter profit, and cut its fiscal 2009 outlook.

Profit declined to $235.8 million for the three-month period ended Oct. 25. That compares with $249.5 million in the year ago period. Earnings per share remained flat at 54 cents per share as the company had about 5 percent fewer shares outstanding in the most recent quarter.

Las Vegas Sands proposes $2.14B rescue plan

UNDATED (AP) -- Billionaire Sheldon Adelson has doubled down on his half-billion dollar bet this fall on Las Vegas Sands Corp. in a plan intended to keep the company from defaulting on its debt and falling into bankruptcy.

The plan for infusing $2.14 billion in new capital into the company dramatically reduces Adelson's controlling stake even as he agreed to invest another $525 million.

The company will not seek shareholder approval for the emergency plan it announced Tuesday, even though it more than doubles the number of outstanding shares, massively diluting their value for current shareholders, claiming an exception in New York Stock Exchange rules.

Pelosi supports new help for ailing US automakers

WASHINGTON (AP) -- House Speaker Nancy Pelosi called for "emergency and limited financial assistance" for the battered auto industry on Tuesday, and urged the outgoing Bush administration to join lawmakers in reaching a quick compromise.

Five days after dismal financial reports from General Motors Corp. and Ford Motor Co., Pelosi backed legislation to make the automakers eligible for help under the $700 billion bailout measure that cleared Congress in October.

Clash of expectations could undermine econ summit

WASHINGTON (AP) -- World leaders are heading for a clash of expectations at this weekend's summit on the global economic crisis.

Europeans are looking urgently for broad changes and tighter universal banking regulations. With two months left in office, President Bush isn't ready to go nearly that far.

And there's a limit to what he could deliver anyway, given his lame-duck status, since other leaders might be hesitant to make deals with a departing administration.

President-elect Obama, the leader who soon will assume the job of trying to keep the U.S. economy from capsizing, won't even be at the table.

Russia allows ruble to fall, stokes uncertainty

MOSCOW (AP) -- Russia's Central Bank on Tuesday eased its defense of the embattled ruble, which fell sharply and triggered a sell-off in stocks as the country faces its worst financial crisis in a decade.

The Central Bank also raised its refinancing interest rate by a full percentage point, to 12 percent, in an effort to stem breakneck capital flight and ease inflation.

The ruble fell 1 percent on Tuesday to 30.70 against a dollar-euro "basket" as the bank widened the ruble's trading corridor by 30 kopecks, or .30 ruble, in a move seen as a concession to a weakening economy and the falling price of oil.

The Central Bank had been using its foreign currency reserves to buy rubles and keep it from falling below 30.40 in a practice called a managed float.

By The Associated Press

The Dow Jones industrial average shed 176.58, or 1.99 percent, to 8,693.96.

Broader stock indicators declined as well. The Standard & Poor's 500 index fell 20.26, or 2.20 percent, to 898.95, and the Nasdaq composite index dropped 35.84, or 2.22 percent, to 1,580.90.

The Russell 2000 index of smaller companies fell 10.81, or 2.19 percent, to 482.29.

Light, sweet crude for December delivery fell $3.08 to settle at $59.33 a barrel on the New York Mercantile Exchange.

In other Nymex trading, heating oil futures fell 7.66 cents to settle at $1.9290 a gallon, while gasoline prices dropped 6.2 cents to settle at $1.3059 a gallon. Natural gas for December delivery tumbled 84.3 cents to settle at $6.71 per 1,000 cubic feet.

In London, December Brent crude tumbled $3.37 to $55.71 a barrel on the ICE Futures exchange.