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AP Business NewsBrief at 2:51 p.m. EDT
(AP Online Via Acquire Media NewsEdge) FDIC says bank profits have fallen by 86 percentWASHINGTON (AP) _ Federal regulators say U.S. banking industry profits plunged by 86 percent in the second quarter, as slumps in the housing and credit markets continued. Federal Deposit Insurance Corp. data show federally-insured banks and savings institutions earned $5 billion in the April-June period, down from $36.8 billion a year earlier.
Consumer outlook up, housing bottom may be nearNEW YORK (AP) _ Americans felt better about the economy in August, as a barometer of sentiment posted the biggest boost in two years amid falling gas prices. Two reports suggested that a bottom could be nearing for the housing market, but economists caution it's too early to proclaim that the worst is over. The Conference Board, a private research group, said Tuesday that its consumer confidence index rose to 56.9, up from a revised 51.9 in July. That's the largest gain since August 2006, and is ahead of the 53 expected by economists surveyed by Thomson/IFR.
Fed: Rates not too low; next move likely to be upWASHINGTON (AP) _ Even as they grappled with inflation worries, most Federal Reserve officials at their August meeting didn't believe the Fed's key interest rate was too low given harder-to-get credit conditions straining consumers and businesses alike. Documents, released Tuesday, provided insight into the Fed's thinking at the Aug. 5 meeting, when central bank policymakers decided to hold its key rate steady at 2 percent for the second straight meeting. Confronted by problems at every turn _ rising unemployment, shaky growth, credit troubles and creeping inflation _ the Fed took a gamble that once again the best move was none at all.
Wall Street mostly lower after economic dataNEW YORK (AP) _ Wall Street turned lower in thin volume Tuesday as concerns about the path of Hurricane Gustav pushed oil prices higher and offset a better-than-expected report on consumer confidence. Stocks fluctuated during the session as investors remain cautious despite optimistic data gave a more upbeat view of the economy.
New-home sales rose slightly in July, prices fellWASHINGTON (AP) _ Sales of new homes rose in July, but still fell short of economists' expectations, and home prices continued to sink. The Commerce Department reported Tuesday that new-home sales rose by 2.4 percent last month to a seasonally adjusted annual rate of 515,000 units, the most since April. But sales in June had plummeted to a pace of just 503,000 _ down from previous estimates of 530,000 _ to mark the worst showing since September 1991.
Number of uninsured drops; Poverty holds steadyWASHINGTON (AP) _ The number of people lacking health insurance dropped by more than 1 million in 2007, the first annual decline since the Bush administration took office, the Census Bureau reported Tuesday. The poverty rate held steady at 12.5 percent, not statistically different from the 12.3 percent registered in 2006. The median _ or midpoint _ household income rose slightly to $50,233. And the number of uninsured dropped to 45.7 million, down from 47 million in 2006.
Oil prices spike as Hurricane Gustav nears GulfNEW YORK (AP) _ Oil prices swung higher Tuesday as Hurricane Gustav developed south of Haiti, raising concerns that the storm could slam into major oil operations in the Gulf of Mexico. After falling close to $112 per barrel in overnight trading, light, sweet crude for October delivery rose $1.22 to $116.33 a barrel on the New York Mercantile Exchange by late morning trading.
Hog producer Smithfield Foods swings to 1Q lossMILWAUKEE (AP) _ Smithfield Foods Inc., the nation's largest pork producer and processor, swung to a loss in its fiscal first quarter due in part to a $20.1 million write-down in the value of commodity contracts. The company said Tuesday it lost $12.6 million, or 9 cents per share, in the period. That compares with a profit of $54.6 million, or 41 cents per share, in the year-ago quarter. Smithfield said the write-down hurt earnings by 15 cents per share. It also reported a $5.5 million, or 4 cent per share, charge related to asset sales by Campofrio.
Fannie Mae, Freddie Mac shares climbWASHINGTON (AP) _ Shares of Fannie Mae and Freddie Mac climbed for a second day Tuesday amid expectations in some Wall Street quarters that the mortgage finance giants will be able to weather the housing storm without a government rescue. Fannie shares rose 43 cents, or 8.3 percent, to $5.62 in afternoon trading, while Freddie advanced57 cents, or 17.3 percent, to $3.86.
Ford to spend $75M to retool plant for small carsWAYNE, Mich. (AP) _ Ford Motor Co. said Wednesday it will spend $75 million to retool part of its Michigan Truck factory to make car bodies, part of the automaker's plan to convert some truck factories to make smaller vehicles. Michigan Truck's 1,000 workers who now make Ford Expedition and Lincoln Navigator sport utility vehicles will be sent to the nearby Wayne Assembly Plant, where Ford plans to add a third shift to make more Focus small cars.
Copyright ? 2008 The Associated Press. All rights reserved. This material may not be published, broadcast, rewritten or redistributed.
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