Economic reports signal modest growth ahead
NEW YORK (AP) _ The economic recovery seems on track for slow but steady gains after new reports Tuesday showed growth in manufacturing activity, construction spending and contracts to buy homes.
The batch of new economic data lifted spirits on Wall Street. But analysts cautioned that the economy won't come roaring back from the worst recession in seven decades. Some say the rebound's modest growth could falter next year as unemployment keeps rising.
In one hopeful sign, the Institute for Supply Management said its manufacturing index showed growth in November for a fourth straight month. The reading of 53.6 was slightly lower than October's 55.7. But any reading above 50 indicates growth.
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US November auto sales struggle to gain ground
DETROIT (AP) _ U.S. auto sales struggled to gain ground in November and big improvements aren't expected until people stop worrying about losing their jobs.
Sales last month were mostly stable, but even higher incentives couldn't push the needle much beyond last November's dismal lows, when a credit freeze and the financial meltdown kept car buyers at home.
One strength was sales of fuel-efficiency cars and crossovers, which are as roomy as SUVs but are built on lower car frames, bolstering fuel economy. Last month's big winner, again, was South Korea's Hyundai, which posted double-digit sales growth. Sales at the top three U.S. sellers _ General Motors, Ford and Toyota _ held steady, while Chrysler struggled for another month.
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Stocks climb as falling dollar boosts commodities
NEW YORK (AP) _ The stock market is picking up where it left off before its scare over debt problems in Dubai.
Major stock indicators rose more than 1 percent Tuesday, including the Dow Jones industrial average, which jumped 126 points and traded above 10,500 for the first time since October of last year.
The weakening dollar again boosted stocks, a pattern that has played out for months. The cheaper U.S. currency drove up commodities prices and lifted the stocks of energy and materials companies that produce them.
Analysts said a mostly upbeat array of economic reports and easing worries about the fallout from debt struggles in Dubai gave investors who had jumped out of the market last week reason to return.
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GM CEO Henderson resigns
DETROIT (AP) _ General Motors' CEO Frederick "Fritz" Henderson has resigned after eight turbulent months as head of the largest U.S. automaker.
The company said Tuesday that Chairman Ed Whitacre Jr. will serve as interim CEO. The company plans an international search for a new president and chief executive.