Stocks end shortened
session at new 2009 highs NEW YORK (AP) -- Stocks
ended a holiday-shortened session Thursday at new highs for the year following
upbeat reports on unemployment and durable goods orders. A weaker dollar also helped
buoy the market, lifting energy and materials stocks. Christmas Eve trading was
extremely light. Stocks have managed to push
higher in December on optimism about the economy, but at a more subdued pace
than in recent months. As the year winds to a close, the Standard & Poor's
500 index up 66.5 percent since hitting 12-year lows in March. The Dow Jones industrial
average rose 53.66, or 0.5 percent, to 10,520.10. Jobless claims, goods
orders signal modest rebound WASHINGTON (AP) -- A fitful
economic recovery is drawing strength from a stabilizing job market and signs
that manufacturing will contribute to the rebound. The Labor Department said
the number of newly laid-off workers filing claims for unemployment aid fell
more than expected last week. The four-week average for claims, which smooths
out fluctuations, fell for the 16th straight week, to its lowest point since
September 2008, when the financial crisis hit with full force. Further evidence of a
gradually healing economy was a Commerce Department report that orders to U.S.
factories for big-ticket durable goods rose in November. Shoppers give stores last-minute
sales surge NEW YORK (AP) -- Shoppers
appear to have given the nation's stores a needed last-minute sales surge. Early readings from Toys R
Us, Sears Holdings Corp. and several mall operators show packed stores on
Christmas Eve following a busy week fueled by shoppers who delayed buying,
waiting for bigger discounts that never came or slowed by last weekend's big
East Coast snowstorm. Stores are counting on
these stragglers in a season that so far appears slightly better than last
year's disaster. The jury is still out, because the week after Christmas
accounts for about 15 percent of sales as gift card-toting shoppers return to
malls. Treasury removes cap for
Fannie and Freddie aid NEW YORK (AP) -- The government
has handed its ATM card to beleaguered mortgage giants Fannie Mae and Freddie
Mac. The Treasury Department
said Thursday it removed the $400 billion financial cap on the money it will
provide to keep the companies afloat. Already, taxpayers have shelled out $111
billion to the pair, and most analysts hadn't expected the companies to hit the
limit. Treasury Department
officials said it will now use a flexible formula to ensure the two agencies
can stand behind the billions of dollars in mortgage-backed securities they
sell to investors. The formula will provide the companies with a sufficient
cushion based on projected losses over the next three years. Energy futures on upswing
but retail prices flat Energy prices are ending
the year on an upswing with large storms, falling supplies, a weak dollar and a
slightly better employment picture sending futures higher. Crude futures closed above
$78 per barrel for the first time in more than a month Thursday in shortened
holiday trading as the government reported that unemployment benefit claims
from newly laid-off workers fell for the 16th straight week. Yet there are few signs
that demand has increased, meaning that any price hikes felt by consumers may
be temporary. Oil prices climbed 6
percent on the week, though stabilizing economy hasn't seriously dented huge
stores of crude, natural gas and gasoline. Even with a 5 million barrel draw on
crude reported Wednesday by the government, supplies remain well above normal. Mortgage rates inch above 5
percent McLEAN, Va. (AP) -- The
average fixed-rate for a 30-year mortgage climbed above 5 percent for the first
time in two months, leading to a decline in mortgage applications. The average fixed rate on a
30-year mortgage was 5.05 percent this week, up from 4.94 percent last week,
Freddie Mac said Thursday. The last time rates were above 5 percent was the
week ending Oct. 29, when they were 5.03 percent. Mortgage rates have risen
since they hit a record low of 4.71 percent the week of Dec. 3. They are
closely tied to yields on long-term government debt, which have gone up since
then. Congress raises debt
ceiling to $12.4 trillion WASHINGTON (AP) -- The
Senate voted Thursday to raise the ceiling on the government debt to $12.4
trillion, a massive increase over the current limit and a political problem
that President Barack Obama has promised to address next year. The Senate's rare Christmas
Eve vote, 60-39, follows House passage last week and raises the debt ceiling by
$290 billion. The vote split mainly down party lines, with Democrats voting to
raise the limit and Republicans voting against doing so. There was one
defection on each side, by senators whose seats will be on the ballot next
year: GOP Sen. George Voinovich of Ohio and Democratic Sen. Evan Bayh of
Indiana. Apple's stock hits new high
as gadget buzz builds NEW YORK (AP) -- Apple Inc.
shares hit an all-time high Thursday after a published report suggested the
intensely scrutinized yet secretive company may be getting ready for a major
product announcement. Citing unnamed people
familiar with the preparations, the Financial Times reported on its Web site
Wednesday that Apple has rented space for several days in late January at an
arts center in San Francisco. The company is famed for
its highly staged launches. CEO Steve Jobs has used past events to introduce
groundbreaking -- and lucrative -- gadgets such as the iPod and the iPhone. Greece passes austerity
budget amid debt crisis ATHENS, Greece (AP) --
Greece's Socialist-led parliament approved a 2010 budget aimed at reducing the
country's high deficit by boosting tax revenues while slashing spending and
restricting salaries and new appointments in the public sector. Following a five-day debate
in parliament, and amid pressure from markets and other European Union
countries, all 160 Socialist lawmakers approved the budget in Thursday's vote,
while 139 from four opposition parties opposed it, and one deputy was absent. Greece has promised to
reduce the budget deficit from a projected 12.7 percent of gross domestic product
in 2009 to below 9.4 percent next year, and as low as 8.7 percent if further
cuts are successfully implemented. Prisons: Madoff had
dizziness, high blood pressure BUTNER, N.C. (AP) -- The
federal Bureau of Prisons says dizziness and hypertension were responsible for
the hospitalization of Bernard Madoff. Spokeswoman Traci
Billingsley says Madoff is being treated at a hospital at the Butner federal
prison in North Carolina. The 71-year-old disgraced financier was moved there
Friday. Billingsley said Thursday that Madoff was not assaulted at the prison. Duke University Medical
Center earlier said Madoff had been treated there. But spokeswoman Debbe Geiger
says the hospital had never had a patient by that name. By The Associated Press The Dow Jones industrial
average rose 53.66, or 0.5 percent, to 10,520.10. The Standard & Poor's
500 index rose 5.89, or 0.5 percent, to 1,126.48, while the Nasdaq composite
index rose 16.05, or 0.7 percent, to 2,285.69. Benchmark crude for
February delivery rose nearly 2 percent, or $1.38 to settle at $78.05 on the
Nymex. In other Nymex trading in
January contracts, heating oil rose 2.38 cents to settle at $2.0356 while
gasoline rose 2.3 cents to settle at $1.9896. Natural gas tumbled 17.8 cents to
settle at $5.643 per 1,000 cubic feet. In London, Brent crude for
February delivery rose 86 cents to settle at $76.31 on the ICE Futures
exchange.