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AP Business NewsBrief at 8:22 p.m. EST(AP Online Via Acquire Media NewsEdge) Stocks up on Bernanke remarks; focus now on ObamaNEW YORK (AP) _ Federal Reserve Chairman Ben Bernanke gave Wall Street a double dose of reassurance. Now it's President Barack Obama's turn. Bernanke told Congress on Tuesday the recession might end this year, and that regulators aren't planning to nationalize banks. The news alleviated some of investors' worries about the economy and the banking industry, and lifted the Dow Jones industrial average and Standard & Poor's 500 index off their lowest levels since 1997. More economic gloom, but Wall Street gets a boostNEW YORK (AP) _ Just when things were looking even worse in the economy _ consumer confidence in free fall and home prices dropping faster _ came some good news: Wall Street bolted higher on a regulator's prediction that the recession may end this year. The Dow Jones industrials finished up 236 points Tuesday after Federal Reserve Chairman Ben Bernanke told Congress "there is a reasonable prospect" that 2010 will be a recovery year, provided credit flows normally and financial markets work. Bernanke: economy suffering 'severe contraction'WASHINGTON (AP) _ The economy is suffering a "severe contraction," Federal Reserve Chairman Ben Bernanke told Congress on Tuesday. But he planted a glimmer of hope that the recession might end this year if the government managed to prop up the shaky banking system, and Wall Street rallied. Bernanke said the economy is likely to keep shrinking in the first six months of this year after posting its worst slide in a quarter-century at the end of 2008. Official: Obama to name commerce pick WednesdayWASHINGTON (AP) _ President Barack Obama intends to nominate former Washington Gov. Gary Locke to be commerce secretary on Wednesday in his third try to fill the job. Locke, a Democrat, became the nation's first Chinese-American governor when he took office in 1997 and served two terms. Obama planned to make the announcement on Wednesday, said an administration official who spoke on condition of anonymity because the appointment has not been made public. Troubled San Francisco paper in danger of closingSAN FRANCISCO (AP) _ The San Francisco Chronicle joined the lengthening list of imperiled newspapers Tuesday as its owner set out to purge the payroll and slash other expenses in a last-ditch effort to reverse years of heavy losses. If it can't reduce expenses dramatically within the next few weeks, the Hearst Corp. said it will close or sell the Chronicle, northern California's largest newspaper with a paid weekday circulation of 339,430. Top Ford execs take pay cuts, more buyouts offeredDETROIT (AP) _ Hourly workers at Ford Motor Co. will get yet another round of buyout and early retirement offers, and the company's top two executives will take 30 percent pay cuts as Ford tries to find a way out of the worst auto sales slump in 26 years. Chief Executive Alan Mulally and Executive Chairman Bill Ford Jr. will see the salary reductions this year and next, according to a memo obtained by The Associated Press. Home prices post record annual decline in 4QNEW YORK (AP) _ Home prices tumbled by the worst annual rate on record in the fourth quarter, two housing indexes showed Tuesday, and the slope of decline steepened in all but a handful of battered cities. The farther prices fall, the fewer homeowners may be able to qualify for President Barack Obama's mortgage relief plan. Last week, the president estimated up to 5 million borrowers in good standing who don't owe more than 105 percent of their home's current value would be able to refinance into a lower interest-rate loan. Northern Trust faces scrutiny for event spendingNEW YORK (AP) _ Northern Trust Corp., a bank that received $1.6 billion in government funds, is facing scrutiny for hosting parties and other events connected to its sponsorship of a professional golf tournament. Reports of the parties brought a swift protest from Washington, with Democratic lawmakers pressing the bank to return the money spent on the events, and Sen. John Kerry proposing legislation restricting banks that received government funds from hosting, sponsoring or paying for conferences or entertainment events. DreamWorks Animation's 4Q profit fallsNEW YORK (AP) _ DreamWorks Animation SKG Inc. said Tuesday its fourth-quarter profit fell as revenue sank 31 percent mainly because the home video release of "Kung Fu Panda" did not perform as well as last year's "Shrek the Third." The Glendale, Calif.-based company said it earned $51.6 million, or 58 cents per share, in the latest period, down 45 percent from year-ago profit of $94.1 million, or 98 cents per share. The 2008 quarter included a tax benefit of 12 cents per share and an $8 million charge to more quickly write-down the costs of making "Kung Fu Panda" because of a slowing home video market. Retailers report dismal 4th qtr, gird for futureNEW YORK _ Retailers marched out a series of cheerless results Tuesday for their most important season of the year, the fourth quarter, when consumers seem to have put off buying almost anything they had a choice about. From Macy's to Target and RadioShack, Home Depot to Office Depot, companies are laying off workers, renewing promotions of their low prices and closing stores and whole divisions to deal with record-low consumer confidence and projections of another year of slow sales. Analysts say more is yet to come. Copyright ? 2009 The Associated Press. All rights reserved. This material may not be published, broadcast, rewritten or redistributed. |