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AP Business NewsBrief at 4:35 p.m. EDT
(AP Online Via Acquire Media NewsEdge) Stocks end mixed on rising oil, financial worriesNEW YORK (AP) _ Wall Street ended mixed Thursday after investors largely shrugged off a jump in oil prices and focused instead on a bullish analyst call on Lehman Brothers Holdings Inc. that eased worries about the financial sector. Stocks ended off their lows of the session after a Ladenburg Thalmann analyst raised his rating on Lehman to "buy," saying he believes the nation's fourth-biggest investment bank has become a "hostile takeover candidate." That call helped ease concerns about that company as well as the financial sector, which has been hit by a spike in bad mortgage debt.
Oil jumps $5 on US-Russia tensions, sliding dollarNEW YORK (AP) _ Oil prices shot up more than $5 a barrel Thursday, rising to the highest level in over two weeks as escalating tensions with Russia stoked fears of supply disruptions to the West. Crude's rally mimicked the wild price swings seen last month and have at least temporarily halted oil's slide back toward $100 a barrel. A weaker U.S. dollar and worries about tightening output from OPEC countries are also supporting prices.
AP Source: Merrill Lynch CEO, NY AG in talksNEW YORK (AP) _ New York Attorney General Andrew Cuomo has been in all-day meetings with Merrill Lynch & Co. Chief Executive John Thain regarding a last minute settlement over auction-rate securities, according to a person familiar with the negotiations. The meetings are being held at Cuomo's office in New York City in order to avert a lawsuit the attorney general has threatened against the brokerage firm, said the person, who spoke on condition of anonymity because he was not authorized to comment publicly on the talks.
Economy remains stuck in low gearNEW YORK _ A private sector measure of the economy's health showed the largest drop in a year, and while new jobless claims fell for the second straight week, they remain near the highest levels since 2002. The reports are the latest evidence the languishing American economy remains stuck in low gear. The New York-based Conference Board said Thursday its monthly forecast of future economic activity fell 0.7 percent in July, far more than the consensus estimate of a 0.2 percent decline by Wall Street economists surveyed by Thomson/IFR.
Fannie, Freddie rescue plans leave many anxiousWASHINGTON (AP) _ A government rescue of Fannie Mae and Freddie Mac could be costly for scores of investment, banking and insurance companies that hold billions in preferred shares of the mortgage finance giants as assets. Speculation has been building on Wall Street that a government investment to rescue Fannie and Freddie would come in the form of a cash infusion through the acquisition of preferred shares in the companies.
FDA: Irradiating spinach, lettuce OK to kill germsWASHINGTON (AP) _ Consumers worried about salad safety may soon be able to buy fresh spinach and iceberg lettuce zapped with just enough radiation to kill E. coli and a few other germs. The Food and Drug Administration on Friday will issue a new regulation allowing spinach and lettuce sellers to take that extra step, a long-awaited move amid increasing outbreaks from raw produce.
Abbott to cut 1,000 jobs from diagnostic unitABBOTT PARK, Ill. (AP) _ Drug and medical device maker Abbott Laboratories said Thursday it will cut 1,000 jobs as part of a multiyear effort to lower spending on its medical testing business. Abbott said the plan will save the company $150 million before taxes, primarily by transferring manufacturing operations to Europe.
FDA investigates possible Vytorin link to cancerWASHINGTON (AP) _ Federal drug safety regulators said Thursday they are investigating whether the cholesterol-lowering drug Vytorin can increase patients' risk of developing cancer. However, the Food and Drug Administration said patients should not stop taking Vytorin because the evidence of a cancer link is unclear. While one recent clinical trial indicated higher rates of cancer for patients taking the medication, two studies currently under way have shown no increased risk.
Heinz gains, Hormel hurts on high costs in quarterMILWAUKEE (AP) _ Rising commodity costs kept weighing on food makers H.J. Heinz Co. and Hormel Foods Corp. in the most recent quarter, even as consumers continued to swallow price increases for their favorite foods. Hormel Foods, the maker of Spam and Jennie-O Turkey, said Thursday that its fiscal third-quarter profit fell 9 percent as higher meat, fuel and other costs outweighed price increases and hurt margins. But revenue was up 10 percent, helped in part by the higher prices charged to customers.
Gap names president of Old NavyNEW YORK (AP) _ Gap Inc. announced Thursday that it has named Tom Wyatt, a 30-year retail veteran, as president of its struggling Old Navy chain. Wyatt, 53, had served as acting president of Old Navy since February, when Dawn Robertson stepped down after struggling for 16 months to turn the division around. Wyatt, who joined the company in early 2006, previously ran the company's outlet division.
Copyright ? 2008 The Associated Press. All rights reserved. This material may not be published, broadcast, rewritten or redistributed.
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