Estimated read time: 8-9 minutes
This archived news story is available only for your personal, non-commercial use. Information in the story may be outdated or superseded by additional information. Reading or replaying the story in its archived form does not constitute a republication of the story.
WALL STREET
Mixed open on mixed earnings news
NEW YORK (AP) — Stocks have been moving between modest gains and losses today as investors look over mixed earnings news from a large number of U.S. companies.
Apple shares soared 8 percent after the company reported a larger-than-expected profit and announced it would increase its share buyback program, raise its quarterly dividend and split its stock seven-for-one.
Caterpillar rose after the construction equipment maker beat analysts' forecasts.
3M is among the decliners after the maker of industrial coatings and Post-it notes posted earnings that fell short of expectations.
UNEMPLOYMENT BENEFITS
Applications for US unemployment aid jump to 329K
WASHINGTON (AP) — The number of people seeking U.S. unemployment benefits surged 24,000 to a seasonally adjusted 329,000 last week, though the gain likely reflected temporary layoffs in the week before Easter.
The Labor Department says the four-week average of applications, a less volatile number, rose 4,750 to 316,750. The four-week average fell two weeks ago to its lowest level since October 2007, two months before the recession began.
Applications can be volatile around Easter, because many school systems temporarily lay off bus drivers, cafeteria workers and other employees during spring break. Some of those workers file for unemployment benefits.
Despite the volatility, applications have generally been declining in recent months, a hopeful sign for the job market. Three weeks ago, applications fell to 301,000, the lowest level in nearly seven years.
DURABLE GOODS
US durable goods orders up 2.6 percent in March
WASHINGTON (AP) — Orders to U.S. factories for long-lasting manufactured goods posted a solid gain for the second straight month in March. A key category that signals business investment plans increased at the fastest pace in four months.
The Commerce Department says that orders for durable goods increased 2.6 percent in March following a 2.1 percent rise in February. Those back-to-back gains followed two big declines in December and January which had raised concerns about possible weakness in manufacturing.
Demand for core capital goods, considered a good guide for business investment plans, rose 2.2 percent in March after a 1.1 percent drop in February. It was the best showing since a 3 percent rise in November.
Manufacturing seems to be recovering after a cold winter disrupted business activity.
JAPAN-US-TRADE
US-Japan trade talks suspended without agreement
TOKYO (AP) — Talks between the United States and Japan on a Pacific Rim trade pact have halted for now without any resolution in sight, spoiling plans for a showcase deal during President Barack Obama's visit to Tokyo.
Economy minister Akira Amari, Japan's top negotiator, said too many issues remained unresolved and further working-level talks will be needed to reach a market-opening pact as part of the Trans-Pacific Partnership.
Amari told reporters Thursday that no end was in sight. He described the negotiations as in a "tough situation."
The two sides had hoped to proclaim a broad agreement or at least significant progress during Obama's visit, which ends Friday.
A Japan-U.S. deal is seen as crucial for talks among the other 10 countries participating in the U.S.-led initiative to move ahead.
EARNS-GENERAL MOTORS
GM 1Q profit dragged down by recalls
DETROIT (AP) — General Motors says first-quarter profit fell 86 percent as a series of recalls dragged down its earnings.
GM had a net profit of $125 million, the company's worst quarterly performance since it posted a net loss after leaving bankruptcy protection in 2009.
The Detroit automaker says it took a $1.3 billion charge for recalling about 7 million vehicles worldwide. The company also incurred $300 million in restructuring costs, mostly in Europe. And it took a $419 million charge due to a change in the way it values Venezuela's currency.
GM made 6 cents per share, down from 58 cents per share a year ago.
Excluding one-time items, GM made 29 cents per share, far above Wall Street estimates of 3 cents per share.
EARNS-CATERPILLAR
Caterpillar 1Q profit climbs 5 pct, forecast rises
Caterpillar's first-quarter earnings climbed 5 percent and the construction equipment maker raised its 2014 forecast. But the company also says a mining equipment sales slump is still hurting results.
The Peoria, Ill., company says it now expects 2014 earnings of $6.10 per share excluding restructuring costs. That's up from its previous forecast for $5.85 per share.
Analysts expect $5.72 per share, on average.
Caterpillar Inc. says it earned $922 million, or $1.44 per share, in the quarter that ended March 31. That compares to $880 million, or $1.31 per share, last year.
Earnings totaled $1.61 per share, excluding restructuring costs. Total revenue was nearly flat at $13.24 billion.
Analysts forecast earnings of $1.21 per share on $13.09 billion in revenue.
EARNS-UPS
UPS blames winter weather for drop in 1Q profit
DALLAS (AP) — First-quarter revenue at UPS slumped 12 percent as winter storms increased costs for the shipping giant and cut into its revenue.
The Atlanta company says the rough start to the year means that full-year earnings will come in at the low end of earlier forecasts.
UPS posted earnings of $911 million, or 98 cents per share, well short of the $1.08 that Wall Street was looking for, and less than the $1.04 billion, or $1.08 per share, it reported a year earlier.
UPS says winter storms reduced operating profit by $200 million as costs rose.
Revenue rose 2.6 percent to $13.78 billion, but that's still shy of the $13.91 billion that analysts had forecast.
EARNS-AIRLINES
For airlines not named United, it was a great 1Q
DALLAS (AP) — Even with the turbulence of severe winter storms and stubbornly high fuel prices, many of the major airlines are cruising and their stock prices are soaring.
On Thursday, American Airlines and Southwest Airlines reported record profits for the first quarter, usually the weakest time of year for the airlines. That followed a rousing report from Delta Air Lines a day earlier.
Still stuck on the tarmac: United Airlines. While rivals were making money, United lost another $609 million during the first three months of the year.
The No. 2 airline company behind American, United Continental Holdings Inc. is struggling to make the 2010 merger of United and Continental work. As costs rise, United is taking in less per mile from passengers — it's not charging fares high enough to cover expenses.
"This quarter's financial performance is well below what we can and should achieve," conceded United Chairman and CEO Jeff Smisek. He said the airline is taking steps to fix its operations and service to boost financial results.
VACATION FORECAST
Survey: Americans plan bigger vacations this year
ORLANDO, Fla. (AP) — The frugality of the Great Recession may be history.
Orbitz senior editor Jeanenne Tornatore (jeh-NEEN' TOR'-nah-tor) says the travel website's survey finds 88 percent of Americans plan real vacations this year. She says "people don't talk staycation anymore," as was popular a few years ago. This year's survey finds "people really getting back out, taking these longer vacations and kind of trading up for some bigger destinations."
Tornatore says Orbitz bookings show the Mexican resort of Cancun as the top destination, but most of the other hot spots for fun-seekers are in the U.S. -- with Las Vegas, Orlando, Seattle and Los Angeles rounding out the top five, and Honolulu ranks tenth.
Average airfares are up about six percent from a year ago, according to Tornatore. She urges vacation travelers to shop around for deals, and use rewards points -- they can save big time.
Tornatore says mid-June through late July is the peak summer vacation period, and you should get airline tickets about 60 days in advance. She says if you're planning your vacation during that busy period, "you really want to book now."
MANDALAY BAY CONVENTION CENTER-EXPANSION
$66M expansion for Mandalay Bay convention center
LAS VEGAS (AP) — The Mandalay Bay resort in Las Vegas is planning a $66 million expansion that will boost its convention center from the seventh-largest to the fifth-largest in America.
Company officials said Thursday that the 350,000 square feet of new exhibit space will help it attract larger trade shows, and will allow events already there to expand.
The convention center will hit 2 million total square feet after the expansion, putting it behind only McCormick Place in Chicago, the Orange County Convention Center in Orlando, the Las Vegas Convention Center and the Sands Expo that's also in Las Vegas.
Construction is scheduled to begin late this year and wrap up in January 2016.
Las Vegas hosted 53 of the nation's 250 largest trade shows last year, more than any other U.S. city.
POSTAL WORKER PROTEST
Postal workers union protest Staples program
NEW YORK (AP) — Postal workers are protesting the opening of postal counters in Staples stores that are staffed with retail employees.
Thursday's protests are planned at 50 locations in 27 states, including rallies in New York, Los Angeles and Washington, D.C.
In Washington, more than 200 people gathered at a Staples, drumming on buckets and holding signs that read: "Stop Staples. The US Mail is Not for Sale."
Last year, Framingham, Mass.-based Staples Inc. began offering postal services under a pilot program that now includes some 80 stores. The American Postal Workers Union objects, because they say well-paid union workers have been replaced by low-wage nonunion workers.
The union says that could lead to layoffs and post office closings.
Postmaster General Patrick Donahoe (DAHN'-uh-hoo) says the program is a response to customer demands for convenience.
PHILADELPHIA NEWSPAPERS
Philadelphia newspaper guild won't bid for company
WILMINGTON, Del. (AP) — The local newspaper guild has dropped out of the upcoming auction for Philadelphia's two largest newspapers.
About 500 unionized employees of The Philadelphia Inquirer and the Philadelphia Daily News had hoped to bid at the latest sale of the troubled company, with the backing of business tycoon Raymond Perelman.
However, Perelman and other potential investors have balked at the $77 million opening bid pledged by current owners.
Rival partners George Norcross and Lewis Katz are locked in a feud over the business, prompting the company's fifth sale in eight years.
Norcross wants current owners to compete with incremental $1 million bids, while Katz has proposed a sealed bid auction open to anyone.
Judge Donald Parsons Jr. did not rule Thursday on the auction but expects to do so quickly.
Copyright © The Associated Press. All rights reserved. This material may not be published, broadcast, rewritten or redistributed.
