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AP Business NewsBrief at 9:56 p.m. EST
(AP Online Via Acquire Media NewsEdge) Dow falls below 8,000, S&P at 5-year lowNEW YORK (AP) _ Wall Street hit levels not seen since 2003 on Wednesday, with the Dow Jones industrial average plunging below the 8,000 mark amid a dour economic outlook from the Federal Reserve and worries over the fate of Detroit's three automakers. A cascade of selling occurred in the final minutes of the session as investors yanked money out of the market. For many, the real fear is that the recession might be even more protracted if Capitol Hill is unable to bail out the troubled auto industry.
Fed sharply lowers forecasts, hints of rate cutWASHINGTON (AP) _ The Federal Reserve on Wednesday sharply lowered its projections for economic activity this year and next, and signaled that additional interest rate reductions may be needed to help combat the worst financial crisis to jolt the country in more than a half-century. With the economy forecast to lose traction, or even jolt into reverse, unemployment will move higher, the Fed predicted.
Ballmer dismisses Yahoo buyout but open on searchBELLEVUE, Wash. (AP) _ Microsoft Corp. is no longer interested in buying all of Yahoo Inc., CEO Steve Ballmer said Wednesday, though he told shareholders that the company would still be "very open" to a collaboration on Internet search. His comments sent Yahoo shares diving more than 20 percent. "Let me be clear," Ballmer said at Microsoft's annual shareholder meeting. "We are done with all acquisition discussions with Yahoo."
Consumer prices drop record 1 percent in OctoberWASHINGTON (AP) _ Consumer prices plunged by the largest amount in the past 61 years in October as gasoline pump prices dropped by a record amount. The Labor Department said Wednesday that consumer prices fell by 1 percent last month, the biggest one-month decline on records that go back to February 1947. The drop was twice as large as the 0.5 percent decrease that analysts had been expecting and marked the third straight month that prices had either fallen or been unchanged.
GM, Chrysler scale back glitz at LA auto showLOS ANGELES (AP) _ Chrysler and General Motors are still showing off their newest vehicles at the Los Angeles Auto Show, but their displays were noticeably quiet Wednesday while Asian and European companies unveiled new models that will likely chip away at the U.S. market share. Casting a shadow on the annual event's glitz was the absence of press conferences or new vehicle debuts from GM or Chrysler, whose top executives were in Washington pleading for $25 billion in loans they say they need simply to stay in business.
US home construction sinks to new record lowWASHINGTON (AP) _ Construction of new homes plunged last month to the lowest level on records going back nearly 50 years as U.S. builders slashed production while Wall Street nosedived. Embattled homebuilders, who enjoyed a five-year boom, are now building new homes and apartments at a record-low pace, according to government data released Wednesday. New building permits, a barometer of future activity, also plummeted to the lowest pace on record.
Democrats seek to lower expectations for bailoutWASHINGTON (AP) _ Top Senate Democrats suggested Wednesday that a bill to rescue Detroit's Big Three automakers was stalled and challenged the Bush administration to take steps to save the industry if congressional efforts falter. The White House quickly rebuffed the suggestion. Senate Majority Leader Harry Reid of Nevada sought to lower expectations of reaching a deal on the $25 billion proposal before Congress quits for the year.
Oil falls; Americans cut driving by 90B milesSIOUX FALLS, S.D. (AP) _ Oil slipped below $54 a barrel Wednesday as stock markets across the globe fell and yet another U.S. government report illustrated the disarray in the housing market. U.S. motorists, stung by record gasoline prices, job losses and falling home prices, left the roadways in droves, logging almost 11 billion fewer miles in September, according to the Transportation Department.
BASF temporarily closing 80 plantsFRANKFURT, Germany (AP) _ Chemical company BASF SE said Wednesday it is temporarily closing 80 plants worldwide due to slumping demand and cutting production at 100 more, including facilities in Texas and Louisiana. Some 20,000 workers are affected. It also abandoned its goal to match last year's profit, citing slowing demand for its products, particularly from automotive customers.
Retail shares drop sharply as market woes lingerNEW YORK (AP) _ With Black Friday just around the corner, two new forecasts Wednesday pointed toward a tough holiday season for retailers and offered evidence that consumers simply may not be in a spending mood. Shares of several retailers dropped sharply, as investors were already nervous about grim economic data and whether the Detroit Three automakers _ General Motors Corp., Ford Motor Co. and Chrysler LLC _ would get a bailout.
Copyright ? 2008 The Associated Press. All rights reserved. This material may not be published, broadcast, rewritten or redistributed.
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