: Economy grows, but snowstorms hurt some areas
WASHINGTON (AP) — The economy is growing slowly, but snowstorms crimped activity along the East Coast last month, according to a Federal Reserve report.
The Fed's Beige Book survey, released Wednesday, showed that the nation's recovery is managing to plod ahead though not at a strong enough pace to persuade companies to ramp up hiring.
Of the Fed's 12 regions surveyed, nine showed improvement. The Richmond district, which includes Maryland, Virginia and the Carolinas, was hurt the most by the bad winter. That region reported economic activity had "slackened or remained soft across most sectors" because of the weather.
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Stocks end mixed as Fed points to slow recovery
NEW YORK (AP) — Early gains in stocks unraveled Wednesday after the Federal Reserve signaled that the economic recovery will be slow.
Stocks ended mixed after the Fed's announcement that economic activity has improved in nine of its 12 districts but that the gains are "modest."
The report dampened enthusiasm that followed an upbeat report on services industries and more takeover news. The Dow Jones industrial average fell 9 points to 10,396.76. For a second day, the Dow erased its losses for 2010 before surrendering the gains by the close.
Stocks had been up for three straight days so some slowdown wasn't surprising.
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ISM: Service sector growth accelerates in February
NEW YORK (AP) — Growth in the U.S. service sector accelerated in February to its fastest pace in more than two years, but jobs remained hard to find.
Gains in the U.S. economy have so far been led by a rebound in manufacturing, as companies slowed their inventory drawdowns and exports rose.
The Institute for Supply Management said Wednesday its index measuring service industry activity rose to 53 in February from 50.5 in January. Economists polled by Thomson Reuters had expected a smaller increase to 51.
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Gov't still hearing complaints about fixed Toyotas
WASHINGTON (AP) — Some Toyota owners say they're still having trouble with unintended acceleration after their recalled cars were repaired, and the Transportation Department said Wednesday it is looking into their complaints.
The complaints raise new questions about whether Toyota's remedy will solve the problem.
The government has received a limited number of acceleration reports from the Toyota owners whose floor mats or gas pedals have been fixed. Toyota and the government are investigating potential electrical problems as part of the Japanese automaker's recall of more than 8 million vehicles worldwide.
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Greece woos markets with $6.5B austerity plan
ATHENS, Greece (AP) — With creditors demanding solutions to the Greek debt crisis and the financial world increasingly on edge, Athens on Wednesday froze pensions, cut civil service salaries and slapped new taxes on everything from cigarettes and alcohol to fuel and precious gems.
Markets and the European Union reacted well to the 4.8 billion euro, or $6.5 billion, austerity plan. But Greek unions were outraged — and the country's embattled premier, who had likened the situation to a "state of war," is headed to Germany and France seeking more definite expressions of support.
Prime Minister George Papandreou warned that unless the new measures won European Union and market backing, bringing down the cost of borrowing for the country, Greece would turn to the International Monetary Fund.
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GM's Bob Lutz says he will retire
DETROIT (AP) — Bob Lutz, the longtime auto industry executive who led nearly a complete overhaul of General Motors' lineup, will retire May 1.
Lutz, 78, confirmed his retirement in an e-mail to The Associated Press on Wednesday.
Lutz, GM's vice chairman and a former U.S. Marine aviator who once crashed his personal helicopter at a Michigan airport, has been responsible for overhauling design at GM and has held senior positions at three other automakers. He has called the Chevrolet Volt, the gas-electric sedan that can go up to 40 miles on battery-power alone, his proudest achievement.
Lutz is also credited with leading crosstown rival Chrysler Group LLC to great success in the 1990s and spent time at Ford Motor Co. and Germany's BMW AG.
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Geithner stresses need for consumer protections
WASHINGTON (AP) — Treasury Secretary Timothy Geithner says the administration will not accept a bill overhauling financial regulations that does not contain strong protection for consumers.
Treasury issued a statement after Geithner met with about 30 representatives of consumer organizations on Wednesday stressing the importance the administration placed on getting Congress to upgrade consumer protection in any overhaul legislation it passes.
The Treasury statement did not say whether the administration was still insisting on a stand-alone agency, a position that is meeting strong resistance from financial groups.
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Wholesale clubs grow as supermarkets slide
PORTLAND, Ore. — A steady stream of shoppers looking for deals on necessities has helped wholesale club operators Costco Wholesale Corp. and BJ's Wholesale Club Inc. deliver profit gains while many of their grocery competitors struggle.
Costco and its smaller competitor, BJ's, both reported Wednesday that traffic, profit and sales trends improved at their stores during the quarter.
It's a marked difference from many of its grocery competitors like Kroger Co., Walmart Stores Inc. and others, where food sales that once buoyed business are starting to sink profits thanks to the continued drag of the weak economy and increased price competition.
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Pfizer Alzheimer's disease drug fails in study
TRENTON, N.J. (AP) — A promising Alzheimer's disease drug Pfizer Inc. and a partner are developing failed to work in a late-stage study, a startling disappointment after the potential blockbuster kept symptoms from worsening for a year in a prior test.
Pfizer and partner Medivation Inc. said Wednesday that the experimental drug, Dimebon, failed to meet its primary and secondary goals — improving thinking ability and overall daily function over six months in patients with mild to moderate Alzheimer's disease.
Still, the results don't necessarily spell the end for Dimebon, one of New York-based Pfizer's key prospects. Medivation and Pfizer, the world's biggest drugmaker by revenue, are continuing three studies that could prove Dimebon helps patients in combination with other Alzheimer's drugs or when used for a longer period.
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Weaker dollar helps push oil above $80 a barrel
NEW YORK (AP) — Oil prices rose above $80 a barrel for the first time in a week as the dollar weakened and refineries increased production ahead of the traditionally busy summer driving season.
Benchmark crude for April delivery on Wednesday climbed $1.19 to settle at $80.87 a barrel on the New York Mercantile Exchange after rising as high as $81.23 earlier in the day.
Prices increased early in the day after Greece announced a stripped-down budget to tame its massive deficit, and the euro pushed higher against the dollar. Crude is priced in U.S. currency, and it tends to rise in price as the dollar falls and makes oil barrels easier to buy for investors holding foreign currency.
The Dow fell 9.22, or 0.1 percent, to 10,396.76. It had risen nearly 64 points during trading.
The broader S&P 500 index rose 0.48, or less than 0.1 percent, to 1,118.79, its highest close since Jan. 20. The Nasdaq composite index slipped 0.11, or less than 0.1 percent, to 2,280.68.
Benchmark crude for April delivery on Wednesday climbed $1.19 to settle at $80.87 a barrel on the New York Mercantile Exchange after rising as high as $81.23 earlier in the day.
In other Nymex trading in April contracts, heating oil rose 3.76 cents to settle at $2.0937 a gallon, while gasoline gained 5.1 cents to settle at $2.2476 a gallon. Natural gas advanced 4.9 cents to settle at $4.757 per 1,000 cubic feet.
In London, Brent crude added $1.07 to settle at $79.25 on the ICE futures exchange.
