Tax credit gives home sales best boost in decade
WASHINGTON (AP) _ First-time buyers taking advantage of a special tax credit gave sales of existing homes their biggest surge in a decade, raising hopes for a turnaround in the housing market and pleasing Wall Street.
While rising foreclosures and disappearing jobs still threaten the comeback, there are now bidding wars for houses in some cities, and home sales are nearly 36 percent above their low point in January.
Analysts said the gains in October mainly reflected the tax credit of up to $8,000 for new homeowners, which was due to expire this month before Congress extended it until spring _ and expanded it to more buyers.
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Weak dollar, home sales data carry stocks higher
NEW YORK (AP) _ Investors halted a three-day losing streak on the stock market Monday, sending prices broadly higher on a weaker dollar and better-than-expected home sales numbers.
Major stock indexes soared more than 1 percent, including the Dow Jones industrials, which rose 133 points to a 13-month high. Volume was thin ahead of the Thanksgiving holiday, which can exaggerate the size of swings in the market.
Investors found plenty of reasons to buy as the day's developments pointed to two trends: an improving economy and interest rates that are expected to stay low.
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Gas prices fall to begin busy travel week
Retail gasoline prices headed downward in most places at the beginning of one of the country's busiest travel weeks, with more than 33 million people expected to hit the road for the Thanksgiving holiday.
Americans are remaining closer to home because of anxiety about the economy and demand for gasoline is weaker now than it was last year at this time.
That is telling because a gallon of gasoline then cost only $1.93 as the economic crisis unfolded in 2008.
Unlike last year, however, gas is not falling sharply and though prices fell overnight, it still cost about $2.64 per gallon on average, according to Department of Energy data and also auto club AAA, Wright Express and Oil Price Information Service.
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Campbell Soup earnings rise as expenses fall
MOUNT LAUREL, N.J. (AP) _ Price-conscious grocery shoppers are being choosy about what they buy to cook at home, even from the value-oriented Campbell Soup Co.
The company reported Monday that its first quarter profit rose 17 percent with the help of lower costs from increased efficiency in getting its products from its plants to store shelves, as well as lower prices for grain ingredients. But revenue fell 2.1 percent to $2.2 billion with dips in sales for most of its categories.