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AP Business NewsBrief at 2:13 a.m. EDT
(AP Online Via Thomson Dialog NewsEdge) Dollar's plunge becoming lynchpin in 1Q earningsNEW YORK (AP) _ The dollar's plunge might be preventing Americans from taking that European vacation this summer, but it could be the very thing saving their 401(k)s from buckling. Some of the nation's biggest corporate powerhouses _ across all industries _ have used the greenback's retrenchment to shield themselves from slumping profit margins. Declines against world currencies make U.S. products look cheap overseas, and translate into big returns when sales are converted back into dollars.
Wall Street jumps as investors weigh Citi, Google resultsNEW YORK (AP) _ Wall Street topped off a strong week with a big rally Friday, after results from companies like Citigroup Inc. and Google Inc. helped ease investor anxiety about the health of corporate profits. Investors have been worried that recent data indicate a slowing economy, which would cut into profit growth at some of the nation's biggest companies. But, results so far have shown that earnings, for the most part, are meeting or beating expectations, and the major indexes all posted gains of more than 4 percent for the week.
Citigroup cuts value of investments by $14B in 1QNEW YORK (AP) _ Citigroup's 9,000 job cuts and $14 billion in write-downs suggest that even if the worst of the credit market volatility is over, the industry is now in a conservative, cost-cutting mode. With banks expecting more loans to go sour, people can expect tight lending standards for many months _ perhaps years _ to come.
Gas prices push closer to $3.50 a gallon, oil hits $117NEW YORK (AP) _ Retail gas prices set new records Friday on their seemingly relentless march toward $3.50 a gallon, and diesel prices pushed further above $4 a gallon. Crude futures, meanwhile, surged to a new record of $117 a barrel. The price of crude oil was pushed higher after a militant group in Nigeria said it had sabotaged a major oil pipeline operated by a Royal Dutch Shell PLC joint venture and promised further attacks on the country's petroleum industry.
AT&T to cut about 4,600 jobs, sees $374 million 1Q chargeNEW YORK (AP) _ AT&T Inc. on Friday said it plans to cut about 4,600 jobs, or 1.5 percent of its work force, to shift resources to growing parts of its business. The nation's largest telecommunications provider said most of the layoffs will be among managers, particularly in wireline operations, including local phone service and service for large corporate customers. Jobs in corporate functions in like finance will also be cut.
Google shares soar 20 percent to record 1-day gainSAN FRANCISCO (AP) _ Google Inc.'s stock soared 20 percent Friday, restoring $28 billion in shareholder wealth as Wall Street renewed its love affair with the Internet search leader after weeks of worry about an online advertising slowdown. Driven by stellar first-quarter results that surprised industry analysts, Google shares surged $89.87 to finish at $539.41. It marked the biggest one-day gain since Google's initial public stock offering in August 2004, leaving the shares at their highest closing price since January.
UAW threatens strike at Chevrolet Malibu plantWARREN, Mich. (AP) _ General Motors Corp. dodged one strike at a key factory on Friday, but the United Auto Workers threatened to walk out at the main plant that builds the hot-selling Chevrolet Malibu. UAW Local 31 at the Malibu factory in Fairfax, Kan., near Kansas City, on Thursday gave the company a letter warning that it will strike the plant in five days if local contract issues go unresolved, GM spokesman Dan Flores said Friday.
Canada says chemical in hard plastic bottles may be unsafeTORONTO (AP) _ An ubiquitous chemical found in hard plastic water bottles, DVDs, CDs and hundreds of other common items came under increased pressure Friday when Canada said it's potentially harmful and may ban its use in baby bottles. Health Canada made the announcement shortly after a U.S. company said it would stop selling hard-plastic Nalgene water bottles made with bisphenol A because of growing consumer concern over whether the chemical poses a health risk.
Former Fannie chief agrees to $24.7 million settlementWASHINGTON (AP) _ Former Fannie Mae chief Franklin Raines and two other top executives have agreed to a $31.4 million settlement with the government announced Friday over their roles in a 2004 accounting scandal. Raines, former Fannie chief financial officer Timothy Howard and former controller Leanne Spencer were accused in a civil lawsuit in December 2006 with manipulating earnings over a six-year period at the company, the largest U.S. financer and guarantor of home mortgages.
Global sales boost Caterpillar 1Q profits, stock priceCHICAGO (AP) _ Caterpillar Inc. parlayed an increased reliance on international markets to surprisingly strong sales and a 13 percent jump in first-quarter profits, impressing investors who expected the heavy equipment maker to be slowed more by the weak U.S. economy and dollar. The Peoria, Ill.-based manufacturer's stock surged more than 8 percent in Friday trading after it easily beat Wall Street's earnings estimates, benefiting from its strategy of diversification.
Copyright ? 2008 The Associated Press. All rights reserved. This material may not be published, broadcast, rewritten or redistributed.
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