NEW YORK (AP) — Wall Street advanced in uneven trading yesterday after a drop in oil prices and an unexpected gain in new home sales encouraged investors to put money back into the market.
Stocks picked up momentum late in the session as oil prices drifted below $129 a barrel.
With gas prices up sharply from a year ago, many on Wall Street are worried that nervous consumers will stop reaching into their wallets for discretionary purchases. That was confirmed by fresh data from the Conference Board, which said its Consumer Confidence Index dropped for the fifth straight month and is now at its lowest level since October 1992.
Oil drops below $129 a barrel on demand concerns
NEW YORK (AP) — Oil prices dropped below $129 a barrel yesterday, falling sharply on a growing sense that soaring gas and oil prices have cut demand for fuel during the normally busy summer driving season.
At the pump, meanwhile, retail gasoline prices rose, but only slightly, leading to renewed speculation that gas may follow the normal seasonal pattern of peaking around Memorial Day and then declining over the summer.
Settlement reached for online real estate agents
WASHINGTON (AP) — The Justice Department gave a boost yesterday to online real estate brokers — and potentially their clients — by forcing new industry policies that give Internet-based agents access to home listings they were previously denied.
The tentative settlement, which still requires court approval, could save consumers thousands of dollars when buying a home.
Online real estate agents often charge discounted commission fees and let buyers review listings at their own pace.
For years, however, Internet-based brokers have complained that the National Association of Realtors wanted to let real estate agents exclude some of their listings from their online competitors. More than 800 multiple listing services nationwide are affiliated with the Realtors group.
New reports give bleak outlook on housing, economy
Consumer sentiment fell to its lowest level since October 1992 when the economy was coming out of a recession, the New York-based Conference Board said yesterday..
U.S. home prices dropped at the sharpest rate in two decades during the first quarter, the Standard & Poor's/Case-Shiller national index showed Tuesday, a somber indication that the housing slump continues to deepen.
Meanwhile, the government reported Tuesday that new home sales unexpectedly rose 3.3 percent from March to April, driven by a surge of purchases in the Northeast. It was the first increase in six months and what seems like, on face value, a hint of rosier days ahead.
But April's sales also looked better in part because of a large downward revision to the March numbers. And the median home price fell 4.2 percent last month to $246,100.
Court OKs suits on retaliation in race, age cases
WASHINGTON (AP) — An unexpected blend of liberal and conservative Supreme Court justices gave workers more leeway yesterday to sue when they face retaliation after complaining about discrimination in the workplace.
In two employment cases, one involving race and the other, age, the court took an expansive view of workers' rights and avoided the narrow, ideology-based decisions that marked its previous term.
The justices read parts of an 1860s civil rights act and the main anti-age bias law to include the right to sue over reprisals even though neither provision expressly prohibits retaliation.
Vodafone returns to profit; CEO Sarin to step down
LONDON (AP) — Vodafone Group PLC, the world's biggest mobile phone company by sales, announced the surprise resignation of chief executive Arun Sarin yesterday as it posted a return to full-year profitability.
Sarin, who led Vodafone's expansion into emerging markets like India, Turkey and the Czech Republic over his five years in the top job, will be replaced by his deputy, Vittorio Colao.
Sarin, 53, faced disquiet two years ago when nearly 10 percent of Vodafone shareholders voted against his re-election as chief executive. Investors were unhappy about an acquisition-heavy expansion and calls for a spin off its stake in U.S. subsidiary Verizon Wireless.
Bouton defends SocGen conduct
PARIS (AP) — Societe Generale SA chiefs faced boos and jeers at a shareholders meeting yesterday while defending the French bank's response to one of the world's largest trading scandals, which caused a massive loss.
Chairman Daniel Bouton insisted the alleged fraud that the bank has blamed on former trader Jerome Kerviel was an "isolated" event and does not reflect the heart of the bank's trading activities.
NY judge says Dell Inc. misled customers
ALBANY, N.Y. (AP) — A New York judge concluded Tuesday that Dell Inc. engaged in repeated false and deceptive advertising of its promotional credit financing and warranties.
State Supreme Court Justice Joseph Teresi ordered the computer retailer to more clearly disclose that most customers don't qualify for free financing or get "next day" repair service.
New York Attorney General Andrew Cuomo sued Dell last year. Teresi gave him until Dec. 1 to identify all consumer claims for third-party repairs, new computers or higher interest payments than they would have paid otherwise.
JetBlue delays order of 21 planes for 4 to 5 years
NEW YORK (AP) — JetBlue Airways Corp. said yesterday it will put off buying 21 new Airbus jetliners it planned to receive starting next year for four to five years because of rising fuel costs.
The A320 planes, which were originally scheduled for delivery between 2009 through 2011, will now be delivered in 2014 and 2015.
Spokeswoman Alison Eshelman declined to say how much the Forest Hills, N.Y.-based airline hoped to save by deferring delivery of the planes.
The Dow Jones industrial average rose 68.72, or 0.55 percent, to 12,548.35.
The Standard & Poor's 500 index rose 9.42, or 0.68 percent, to 1,385.35, and the Nasdaq composite index rose 36.57, or 1.50 percent, to 2,481.24.
Light, sweet crude for July delivery fell $3.34 to settle at $128.85 a barrel on the New York Mercantile Exchange but fell as low as $128.18 in after-hours electronic trading. It was oil's biggest one-day decline since March 31. Prices peaked at $135.09 a barrel Thursday.
In other Nymex trading Tuesday, June gasoline futures fell 1.3 cents to settle at $3.383 a gallon, and June heating oil futures fell 6.64 cents to settle at $3.7992 a gallon. June natural gas futures fell 5.6 cents to settle at $11.801 per 1,000 cubic feet.
In London, July Brent crude futures fell $4.06 to settle at $128.31 a barrel on the ICE Futures exchange.
