Electronics Show consolidating 2010 event in Vegas
LAS VEGAS (AP) - Saying the venues were too spread out, officials say the 2010 International Consumer Electronics Show will not use space at the Sands Expo and Convention Center.
The show is the largest annual trade show and convention in North America. Officials at the Consumer Electronics Association said Wednesday they plan to consolidate the show at the Las Vegas Convention Center and the attached Las Vegas Hilton.
The 2009 electronics show attracted 113,000 people and leased nearly 2 million square feet at the convention center, plus another 108,850 square feet at the Sands.
The show is scheduled for Jan. 7-10.
Unemployment claims decline
WASHINGTON (AP) - Fewer people are claiming jobless benefits, leading economists to project that next week's employment report will show a sharp drop in job losses for July compared with June.
Claims for jobless aid, which track layoffs and firings, are trending downward in a modest sign of improvement in the labor market, economists note.
That helps explain why analysts are forecasting that a net total of about 340,000 jobs will be lost in July. This would compare with a net total of 467,000 jobs lost in June and the staggering 741,000 that were lost in January - the most for any month since 1949.
The slowdown in job cuts is a positive sign for the labor market, though most economists still expect the unemployment rate to keep rising into next year.
Earnings reports extend market's big July rally
NEW YORK (AP) - The stock market is a day away from locking in its best July in 20 years.
Stocks added to an already impressive run Thursday as another round of earnings reports gave investors new reasons to be optimistic about the economy. The Dow Jones industrial average rose its highest level in nearly nine months with a gain of 84 points and the Nasdaq composite index traded above 2,000 for the first time since October.
The latest reports struck a theme that has played out for weeks: Times are tough but companies aren't doing as badly as feared. Many have chopped costs to produce profits well beyond the market's modest expectations.
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NY AG details big bonuses at bailed-out banks
NEW YORK (AP) - Citigroup Inc., one of the biggest recipients of government bailout money, gave employees $5.33 billion in bonuses for 2008, New York's attorney general said Thursday in a report detailing the payouts by nine big banks.
The report from Attorney General Andrew Cuomo's office focused on 2008 bonuses paid to the initial nine banks that received loans under the government's Troubled Asset Relief Program last fall. Cuomo has joined other government officials in criticizing the banks for paying out big bonuses while accepting taxpayer money.
Citigroup, which is now one-third owned by the government as a result of the bailout, gave 738 of its employees bonuses of at least $1 million, even after it lost $18.7 billion during the year, Cuomo's office said.
Bank of America Corp., which also received $45 billion in TARP money, paid $3.3 billion in bonuses, with 172 employees receiving at least $1 million. Merrill Lynch, which Charlotte, N.C.-based Bank of America acquired during the credit crisis, paid out $3.6 billion.
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Exxon, Shell extend rough streak for oil sector
Oil giants Exxon Mobil and Royal Dutch Shell on Thursday added to the industry's worst midyear showing in years, stung by slumping global energy demand that threatens to further slow exploration and production.
For Exxon, the world's biggest publicly traded oil company, a 66 percent profit plunge for the second quarter marked its lowest result in nearly six years. The Irving, Texas-based company vowed to maintain its aggressive spending plans but acknowledged the tough economic environment has made that difficult.
Its quarterly production fell too - bad news considering it generates more than two-thirds of its earnings from oil and gas output.
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Decline in unemployment claims lifts hopes on jobs
WASHINGTON (AP) - Fewer people are claiming jobless benefits, leading economists to project that next week's employment report will show a sharp drop in job losses for July compared with June.
Claims for jobless aid, which track layoffs and firings, are trending downward in a modest sign of improvement in the labor market, economists note.
That helps explain why analysts are forecasting that a net total of about 340,000 jobs will be lost in July. This would compare with a net total of 467,000 jobs lost in June and the staggering 741,000 that were lost in January - the most for any month since 1949.
The slowdown in job cuts is a positive sign for the labor market, though most economists still expect the unemployment rate to keep rising into next year. The jobless rate, which reached 9.5 percent in June, is widely expected to top 10 percent by year's end.
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Motorola posts unexpected 2Q profit
NEW YORK (AP) - Helped by deep cost cuts, Motorola Inc. on Thursday posted an unexpected profit for the second quarter after several quarters of losses, and said it expected things to keep improving this year.
While sales continued to decline from last year, Motorola said the cost cuts, including 8,000 layoffs so far this year, set the stage for a comeback from its long-suffering cell phone unit. Its shares surged on news of the outlook.
Co-CEO Greg Brown said the "overwhelming majority" of the cost-cutting has now been completed.
The Schaumburg, Ill.-based electronics company earned $26 million, or 1 cent per share, in the three months ended July 4. That's up from $4 million, or break-even per share, a year ago.
The latest results were boosted 2 cents per share by various one-time effects, but even so, Motorola exceeded its own forecast, which called for a loss of 3 cents to 5 cents per share, excluding the cost of its restructuring initiatives.
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Investors boost insurers despite economy's impact
INDIANAPOLIS (AP) - Sliding enrollment or rising expenses marred the second-quarter performance for nearly all major health insurers, but sector stock prices have responded with a growth spurt.
Share prices of several companies have climbed around 10 percent since Minnetonka, Minn.-based UnitedHealth Group Inc. became the first insurer to report earnings July 21.
Analysts say they see many positives in insurance stocks when they look beyond factors like slumping enrollment. Investors also are becoming less concerned about how the health care overhaul debate in Washington may affect the industry.
UnitedHealth, WellPoint Inc. and Cigna Corp. all saw their enrollments fall during the quarter largely due to employer job cuts. WellPoint and Aetna Inc. also pointed to rising expenses spurred by the economy as an additional detriment.
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World's automakers cut costs, wait for turnaround
PARIS (AP) - Car and truck manufacturers around the globe are conserving cash by running down inventories and cutting everything from pay to travel, especially in Japan. German carmakers have gotten help trimming workers' hours through government programs that compensate staff for lost pay.
All have been ruthless about saving money as they endure a recession-led sales slump and hang on until a turnaround finally comes. For now, that seems the best investors can hope for as the companies report very mixed financial results this week.
German automaker Volkswagen AG on Thursday posted an actual profit, like Japan's Honda Motor Co. the day before. But French carmaker Renault SA, and Japan's Mitsubishi Motors Corp. and Mazda Motor Corp., lost millions, even billions of dollars.
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Oil surges close to $67 a barrel in volatile week
NEW YORK (AP) - Oil prices surged above $66 a barrel Thursday, rising in lockstep with major global indexes in what has become a very volatile week for energy markets.
With regulators meeting in Washington to consider new limits on speculators that some blame for wild swings in oil and gas prices, crude fell 6 percent Wednesday only to rebound by almost that much Thursday.
Benchmark crude for September delivery rose $3.59, or 5.6 percent, to settle at $66.94 a barrel on the New York Mercantile Exchange. Oil, gas futures, heating oil and natural gas contracts all jumped at least 5 percent in afternoon trading.
Crude prices have recently tracked stock markets and that trend continued Thursday.
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Cablevision to spin off Madison Square Garden
Cablevision Systems Corp. said Thursday that its board has approved a plan to spin off as a separate company its Madison Square Garden business, owner of the New York Knicks, Rangers and the famed sports arena where they play.
In a widely anticipated move, the Bethpage, N.Y.-based company said the unit will be spun off to existing shareholders by the end of the year. The Dolan family, who controls Cablevision through a special class of shares, will retain control of the new company.
Investors liked the move, driving up shares of Cablevision $1.66, or 8.8 percent, to $20.59.
The diversified company that owns cable systems and channels and the newspaper Newsday in addition to its sports and entertainment properties also reported an 8 percent drop in second-quarter earnings despite climbing revenue.
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By The Associated Press
The Dow Jones industrial average rose 83.74, or 0.9 percent, to 9,154.46 after being up as much as 176 points. The Standard & Poor's 500 index rose 11.60, or 1.2 percent, to 986.75. It rose to nearly 997 during the day. It hasn't traded above 1,000 since November.
It was the highest close for the Dow and the S&P 500 index since Nov. 4.
The Nasdaq advanced 16.54, or 0.9 percent, to 1,984.30. It rose to nearly 2,010 in morning trading, its first move above 2,000 since Oct. 3. The index is up 56 percent from its low of 1,269 in March. It was the highest finish for the index since Oct. 1.
Benchmark crude for September delivery rose $3.59, or 5.6 percent, to settle at $66.94 a barrel on the New York Mercantile Exchange.
In other Nymex trading, gasoline for August delivery jumped 13.61 cents, or 7.3 percent, to settle at $1.9911 a gallon and heating oil added 9.72 cents to settle at $1.7685 a gallon. Natural gas for September delivery surged 19.5 cents to settle at $3.743 per 1,000 cubic feet.
In London, Brent prices climbed $3.58 to settle at $70.11 a barrel on the ICE Futures exchange.