US service sector improves slightly in Dec.

By Richard Drew (AP)

Wall Street advanced moderately Tuesday, as fresh details from the Federal Reserve on its efforts to combat the recession helped offset disappointing economic reports.

The Dow Jones industrials rose more than 100 points in the early going, but pared its gains following mixed readings on the service sector, factory orders and pending home sales. While investors expected the data to show further deterioration, they were hoping the pace of the declines would slow. The market is eager for signs that the U.S. recession will end this year.

But stocks rebounded midafternoon after...

By Bela Szandelszky (AP)

The Russia-Ukraine natural gas dispute hit Europe with the force of a winter storm Tuesday, cutting or limiting supplies to at least a dozen nations. Tens of thousands of people were left without heat and governments scrambled to find alternate energy sources.

Shocked by how fast the shortages were spreading, the European Union demanded a quick end to the quarrel _ a sharp turnaround from their earlier stance, when officials had downplayed the conflict between Moscow and Kiev as primarily a business matter.

But by Tuesday evening, gauges on delivery pipelines to seven...

By Mark Lennihan (AP)

A wave of fare sales has spread across the airline industry in the early days of the new year as the weak economy continues to put pressure on carriers to fill seats even after they drastically reduced capacity and some expressed willingness to cut more.

Many experts and even executives at some airlines had expected that after deep capacity cuts went into effect starting in September, the number of fare sales going forward would be fewer and farther between. But fuel prices have come down significantly, and the weak economy has eroded demand for air travel.

Even so, on...

By Al Behrman (AP)

Lisa Williams has never liked sorting through coupons, and she no longer has to at Kroger Co. grocery stores.

Every few weeks, coupons arrive in Williams' Elizabethtown, Ky., mailbox for items she usually loads into her cart: Capri Sun drinks for her two children, Reynolds Wrap foil, Hellmann's mayonnaise. While Kroger is building loyalty _ with 95 percent of a recent mailing tailored to specific households _ Williams is saving money without searching through dozens of pages of coupons.

"I'm not that big a coupon-clipper," she said. "It seems like a lot of coupons you see ...

By Eugene Hoshiko (AP)

World stock markets rose Tuesday as the New Year optimism continued amid relatively positive corporate news, particularly from the struggling British retailing sector, and despite some dismal U.S. economic data.

The escalation of the gas dispute between Ukraine and Russia _ which has shut off deliveries to several countries and helped push the price of oil briefly back above $50 a barrel for the first time since mid-December _ failed to dent the confidence that has been evident in markets so far in 2009.

On Wall Street, the Dow Jones industrial average was up 34.89 points, or...

By Richard Drew (AP)

Wall Street proceeded cautiously Tuesday, with stocks rising moderately following disappointing readings on pending home sales and factory orders.

While investors expected the data to show further deterioration, they were hoping the pace of the declines would slow. The market is eager for signs that the U.S. recession will end this year.

The National Association of Realtors said Tuesday that pending home sales fell to the lowest level on record in November. The trade group said its seasonally adjusted index of pending sales for existing homes fell 4 percent to 82.3 from a...

By Eugene Hoshiko (AP)

World stock markets rose Tuesday amid relatively positive corporate news, particularly from the struggling British retailing sector, but very weak U.S. factory orders data capped investors' optimism.

The escalation of the gas dispute between Ukraine and Russia, which has now shut off deliveries to several neighboring countries and helped push the price of oil back above $50 a barrel for the first time since mid-December, also supported energy stocks around the world.

On Wall Street, the Dow Jones industrial average was up only 17.05 points, or 0.2 percent, at 8,969.94, while...

By MATTHIAS RIETSCHEL (AP)

German billionaire Adolf Merckle has committed suicide after his business empire, which included interests ranging from pharmaceuticals to cement, ran into trouble in the global financial crisis, his family said Tuesday.

The 74-year-old's body was found Monday night near railway tracks at Blaubeuren in southwestern Germany, prosecutors in nearby Ulm said in a statement. They described the death as a "railway accident" and said there was no evidence that anyone else was to blame.

His family, which had reported Merckle missing after he failed to return home Monday, issued a bri...

By Bela Szandelszky (AP)

A natural gas crisis loomed over Europe on Tuesday, as a contract dispute between Russia and Ukraine shut off Russian gas supplies to six countries and reduced gas deliveries to several others.

At least two Bulgarian cities were totally without gas, and nations like Turkey were turning to Iran to bolster their supplies.

In a sharp turnaround, the European Union blasted Russia and Ukraine, saying the sudden cutoff to some of its member countries was "completely unacceptable." Just a day ago, the EU was trying to downplay any problems from the gas dispute.

In response,...

By Richard Drew (AP)

Wall Street is paring some of its earlier gains following mixed readings on the economy.

The Institute for Supply Management said Tuesday the U.S. services sector contracted at a slower pace in December. But the National Association of Realtors says pending home sales fell to the lowest level on record in November, much more than expected.

Meanwhile, the Commerce Department says factory orders declined for a record fourth straight month in November.

Investors expected the data to show more deterioration, but were hoping the pace of declines would slow.

The Dow...

By W. Castello (AP)

Orders to factories fell for a record fourth straight month in November, reflecting the intensifying effects of the country's steep recession.

The Commerce Department says orders declined by 4.6 percent in November, nearly double the 2.5 percent drop economists expected. Orders have been falling since August, including a 6 percent plunge in October, the biggest setback in eight years.

The weakness in November reflected a big drop in demand for commercial aircraft. Weakness also was seen in autos, primary metals such as steel, and defense communications equipment.

By Richard Drew (AP)

Investors waded back into the market Tuesday, sending stocks moderately higher ahead of a fresh round of readings on the service sector, factory orders and pending home sales.

Wall Street expects the data to show more deterioration, but investors are hoping the pace of the declines will be more temperate. The market is eager for signs that the U.S. recession will end this year.

The Institute for Supply Management's December index of non-manufacturing activity is due at 10 a.m. Eastern time, as are the Commerce Department's report on November factory orders and the National...

By Richard Drew (AP)

Wall Street has opened moderately higher, as investors wade back into the market ahead of a fresh round of readings on the service sector, factory orders and pending home sales.

Investors expect the data to show more deterioration, but they are hoping the pace of the declines will be more temperate. The market is eager for signs that the U.S. recession will end this year.

The Institute for Supply Management's December index of non-manufacturing activity is due at 10 a.m. Eastern time, as are the Commerce Department's report on November factory orders and the National...

By Eugene Hoshiko (AP)

World stock markets rose strongly Tuesday ahead of expected gains on Wall Street and amid some relatively positive corporate news, particularly from the struggling British retailing sector.

The FTSE 100 index of leading British shares was up 66.90 points, or 1.5 percent, at 4,646.54, while Germany's DAX rose 82.64 points, or 1.7 percent, to 5,066.63. France's CAC-40 rose 49.71 points, or 1.5 percent, to 3,409.63.

In Britain, the FTSE was buoyed by retailers after some better than expected trading updates. Though Next PLC and Debenhams PLC reported falling sales over the...

By David Zalubowski (AP)

After a year in which U.S. auto sales tumbled 18 percent and GM had its worst year in nearly a half-century amid slack demand fueled by a terrible economic outlook and growing job worries, automakers are reluctant to predict when a recovery might occur.

An even sharper sales decline in December alone means that record high rebates and low-interest financing deals will stick around until at least February. But those deals will likely disappear as the remaining 2008 models are sold and inventories are lowered to match demand.

One automaker, Hyundai Motor America, is trying to...

By Fiona Hanson (AP)

Sir Alan Walters, a top economic adviser to former British Prime Minister Margaret Thatcher, has died at age 82.

His wife, Margaret Patricia Walters, said her husband died Saturday after suffering from Parkinson's Disease for seven years. The couple celebrated their 33rd wedding anniversary on Dec. 27.

Thatcher, who has also been in poor health recently, released a statement praising Walters for his acumen and loyalty.

"Alan Walters was the best economic adviser any Prime Minister ever had _ radical, fearless, consistent and creative," she said. "He was a great public ...

By Richard Drew (AP)

Wall Street headed for a moderately higher open Tuesday, regaining its upward momentum ahead of a fresh round of readings on the service sector, factory orders and pending home sales.

Investors expect the data to show more deterioration, but they are hoping the pace of the declines will be more moderate. The market is eager for signs that the U.S. recession will end this year.

The Institute for Supply Management's December index of non-manufacturing activity is due at 10 a.m. Eastern time, as are the Commerce Department's report on November factory orders and the National...

By Eugene Hoshiko (AP)

European stock markets rose modestly Tuesday despite Wall Street's setback from the day before as some relatively positive corporate news helped offset concerns about the global economy.

The FTSE 100 index of leading British shares was up 35.76 points, or 0.8 percent, at 4,615.40, while Germany's DAX rose 61.48 points, or 1.2 percent, to 5,045.47. France's CAC-40 rose 38.27 points, or 1.1 percent, to 3.398.19.

In Britain, the FTSE was buoyed by retailers after some better than expected trading updates. Though Next PLC and Debenhams PLC reported falling sales, investors were r...

By Junji Kurokawa (AP)

Japan's business leaders said Tuesday the U.S. financial crisis has shown the shortcomings of America's freewheeling approach to business, but defended the end of this nation's tradition of lifetime employment as needed to keep up with global changes.

The credit crisis and global economic slump have battered export-reliant Japanese companies, throwing thousands of people out of work. The sudden surge in the numbers of jobless has grabbed nationwide attention because major companies in Japan have long had a reputation for promising jobs for life.

Much of the recent criticism h...

By Eugene Hoshiko (AP)

Asian stock markets were mostly higher Tuesday, shrugging off lackluster trade overnight in the U.S. and Europe amid growing optimism the world economy would start to recover later this year.

Overseas markets, meanwhile, were poised to follow Asian bourses higher as European benchmarks gained early in the session and Wall Street futures pointed to a positive open.

After a disastrous 2008, Asian stocks have shown strength of late. Analysts say foreign investors, who pulled billion of dollars from the region last year, have begun trickling back amid speculation that government...

By Andy Wong (AP)

General Motors Corp. said Tuesday its 2008 sales in China rose 6 percent to 1.09 million vehicles, but the growth rate slowed as consumers held back amid the economic downturn.

GM is looking to China's booming auto market to drive global sales growth as North American demand slumps. In 2007, the Detroit-based automaker's sales rose 19 percent, including joint ventures.

"A series of natural disasters and an increase in fuel prices earlier in the year exacerbated the impact of the global economic downturn in China," Kevin Wale, president of GM China, said in a statement.