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Ohio attorney general resigns in wake of scandal
Reuters: [2008-05-14 23:56:00]
COLUMBUS, Ohio, May 14 (Reuters) - Ohio Attorney General Marc Dann, who led investigations into companies blamed for the state's subprime mortgage mess, resigned under a cloud on Wednesday after admitting to an affair with a female staff member.
"Unfortunately, it is now clear that the last step I must take to fix these problems is to resign as attorney general effective immediately," Dann told reporters.
In addition to Dann's relationship with a member of his staff, his office was roiled by sexual harassment claims.
Also, local media reported that authorities staged a raid on the attorney general's offices on Wednesday, carting away documents as part of an undisclosed investigation.
Dann said he did not want to be a distraction from "the great work done by this office."
Calls for Dann's resignation had come from Democrats including Gov. Ted Strickland and State Treasurer Richard Cordray as well as the Republican leaders in the state legislature.
Following Dann's resignation, Strickland told reporters the attorney general's top assistant would take over and that he had made no decision on a longer-term replacement for Dann, who was elected in 2006.
Dann had resisted calls for him to quit, but pressure mounted on Tuesday when House Democrats filed articles of impeachment against him. The legislature had authorized the state inspector general to investigate Dann's office.
In resigning, Dann said the state must continue to use bank regulations and consumer protection laws to "aggressively take on predatory lenders and their co-conspirators."
In January, Dann filed a lawsuit on behalf of a state pension fund against Freddie Mac <FRE.N>, accusing the mortgage finance company of securities fraud for failing to disclose risks from its subprime mortgage-related investments.
Dann's office has also sent civil investigative subpoenas to a number of subprime mortgage companies as part of a probe of possible anti-trust and civil rights law violations, and violations of Ohio's consumer sales practices. His office has declined to name the companies.
Ohio has been hit hard by the subprime-mortgage crisis, ranking eighth among states in foreclosure rates in the first quarter of 2008, according to RealtyTrac.
(Reporting by Jim Leckrone, additional reporting by Karen Pierog in Chicago; Editing by Eric Walsh)
((karen.pierog@thomsonreuters.com; 1 312 408 8647; Reuters Messaging: karen.pierog.reuters.com@reuters.net)) Keywords: OHIO ATTORNEYGENERAL/RESIGNATION
REFILE-US STOCKS-Benign inflation, strong results lift Wall St
Reuters: [2008-05-14 23:33:00]
(Refiles to fix typo in paragraph 14)
* Modest rise in CPI supports stocks
* Freddie Mac smaller than expected loss reassures
* Strong Macy's results lift retailers
By Caroline Valetkevitch
NEW YORK, May 14 (Reuters) - U.S. stocks rose on Wednesday in light trading after a modest rise in consumer prices in April cooled inflation fears while Macy's Inc <M.N> and Freddie Mac <FRE.N> posted reassuring quarterly results.
A milder-than-expected gain in the Consumer Price Index took the edge off fears of an inflationary spurt triggered by soaring energy prices. That could allow the Federal Reserve more time to hold interest rates steady, analysts said.
Shares of retailers and home builders, which benefit from steady to lower borrowing costs, advanced. The S&P retail index <.RLX> rose 1.6 percent, as Macy's stood by the profit forecast for its department stores despite expectations of an economic slowdown.
Freddie Mac, seen as a housing market barometer, brightened the mood on Wall Street by raising its growth outlook and unveiling a plan to raise new capital to support the beleaguered home loan market.
"People were nervous about the inflation number. When it was somewhat better than expected, that triggered the rally," said Eric Kuby, chief investment officer at North Star Investment Management Corp., in Chicago.
Stocks pared gains late in the session, leaving the Nasdaq just barely higher. Shares of Apple Inc <AAPL.O> slid as investors took profits after two days of gains in the stock.
The market's sharp climb "ran out of steam without another leg of news to keep the rally going," Kuby said.
The Dow Jones industrial average <.DJI> rose 66.20 points, or 0.52 percent, to end at 12,898.38. The Standard & Poor's 500 Index <.SPX> added 5.62 points, or 0.40 percent, to 1,408.66. The Nasdaq Composite Index <.IXIC> inched up 1.58 points, or 0.06 percent, to 2,496.70.
Trading was extremely light on the New York Stock Exchange, with about 1.19 billion shares changing hands, well below last year's estimated daily average of roughly 1.90 billion, and the second-lowest level of volume so far this year. NYSE trading volume hit its low for the year on Monday, when 1.05 billion shares traded hands.
However, the Chicago Board Options Exchange Volatility Index <.VIX>, or VIX, which is Wall Street's fear barometer, slid at one point to its lowest level since October 2007 as stocks rallied. The VIX was down 1.8 percent at the close.
Shares of Macy's rose 3.6 percent to $24.93.
Freddie Mac, the No. 2 provider of funding for U.S. residential mortgages, shot up 9.2 percent to $27.25.
The Dow Jones home construction Index <.DJUSHB> climbed 2.7 percent. The stock of D.R. Horton Inc <DHI.N>, the largest U.S. home builder, jumped 2.9 percent to $15.36.
APPLE FALLS, ENERGY SLIPS
On the Nasdaq, shares of Apple declined 2 percent to $186.26. And the stock of top video game publisher Electronic Arts Inc <ERTS.O> dropped 3.3 percent to $52.78. Late Tuesday, the company issued an annual profit outlook that fell short of Wall Street forecasts.
Energy companies' stocks also fell after U.S. crude <CLc1> slid $1.58 to settle at $124.22 per barrel, a day after it approached a record just 2 cents shy of $127. The S&P energy index <.GSPE> ended down 0.9 percent.
Shares of Deere & Co <DE.N> tumbled 9.9 percent to $81.25 and ranked among the top drags on the S&P 500 after the farm and construction machinery company warned that higher material costs and possible shortages of components will affect results
Among other drags on Nasdaq: Whole Foods Market Inc <WFMI.O> sank 13.9 percent to $28.96 after it posted a lower quarterly net profit that missed analysts' estimates. For details, see [ID:nN13428622]
Before the opening bell, the Labor Department said the overall CPI for April rose 0.2 percent -- less than economists expected. Core CPI, excluding volatile food and energy costs, gained 0.1 percent in April -- also below forecast.
The Fed's seven rate cuts, amounting to 3.25 percentage points, have now taken the Fed's benchmark fed funds rate down to 2 percent. The Fed's most recent rate decision, which analysts speculated could be the last for the near term, was on April 30. (Editing by Jan Paschal) ((caroline.valetkevitch@thomsonreuters.com; +1 646 223 6393; Reuters Messaging:caroline.valetkevitch.reuters.com@reuters.net))
((Multimedia versions of Reuters Top News are now available for: * 3000 Xtra: visit http://topnews.session.rservices.com * BridgeStation: view story .134 For more information on Top News: http://topnews.reuters.com))
Keywords: MARKETS STOCKS
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U.S. Equities speed guide........................<US/EQUITY>
S&P 500 index ........................................<.SPX>
Dow Jones industrial average..........................<.DJI>
Nasdaq Composite index...............................<.IXIC>
Nasdaq 100............................................<.NDX>
Russell 2000 small cap................................<.RUT>
S&P major sectors..............................<0#.GSPMAJOR>
NYSE most active.....................................<.AV.N>
Nasdaq most active...................................<.AV.O>
Top NYSE pct gainers.................................<.PG.N>
Top NYSE pct losers..................................<.PL.N>
Top Nasdaq pct gainers...............................<.PG.O>
Top Nasdaq pct losers................................<.PL.O>
52 week highs:
NYSE...............<t.YH.N> Nasdaq..............<t.YH.O>
52 week lows:
NYSE...............<t.YL.N> Nasdaq..............<t.YL.O>
Main global stock indexes and market reports:
FTSE Eurotop 300 .....<.FTEU3> European report .......[.EU]
Nikkei 225.............<.N225> Tokyo report............[.T]
FTSE 100...............<.FTSE> London report...........[.L]
Xetra DAX.............<.GDAXI> Frankfurt market stories[.F]
CAC-40.................<.FCHI> Paris market stories...[.PA]
World Indices.....................................<0#.INDEX>
Reuters survey of world bourse outlook.........<EQUITYPOLL1>
U.S. IPO diary........................................[IPO/]
U.S. Asset Allocation Table.......................[US/ASSET]
More Reuters News on equities at a glance:
Equities ............[E] US company news.........[TOP/EQU]
Key non-equities market reports:
Foreign exchange......................................[FRX/]
Oil....................................................[O/R]
US Treasuries.........................................[US/N]
International bonds...................................[EUB/]
Gold.......................................[GOL/X] or [GOL/]
CRB index of commodity futures........................[CRB/]
US STOCKS-Benign inflation, strong results lift Wall St
Reuters: [2008-05-14 23:20:00]
(Updates close with declines in Apple, energy shares)
* Modest rise in CPI supports stocks
* Freddie Mac smaller than expected loss reassures
* Strong Macy's results lift retailers
By Caroline Valetkevitch
NEW YORK, May 14 (Reuters) - U.S. stocks rose on Wednesday in light trading after a modest rise in consumer prices in April cooled inflation fears while Macy's Inc <M.N> and Freddie Mac <FRE.N> posted reassuring quarterly results.
A milder-than-expected gain in the Consumer Price Index took the edge off fears of an inflationary spurt triggered by soaring energy prices. That could allow the Federal Reserve more time to hold interest rates steady, analysts said.
Shares of retailers and home builders, which benefit from steady to lower borrowing costs, advanced. The S&P retail index <.RLX> rose 1.6 percent, as Macy's stood by the profit forecast for its department stores despite expectations of an economic slowdown.
Freddie Mac, seen as a housing market barometer, brightened the mood on Wall Street by raising its growth outlook and unveiling a plan to raise new capital to support the beleaguered home loan market.
"People were nervous about the inflation number. When it was somewhat better than expected, that triggered the rally," said Eric Kuby, chief investment officer at North Star Investment Management Corp., in Chicago.
Stocks pared gains late in the session, leaving the Nasdaq just barely higher. Shares of Apple Inc <AAPL.O> as investors took profits after two days of gains in the stock.
The market's sharp climb "ran out of steam without another leg of news to keep the rally going," Kuby said.
The Dow Jones industrial average <.DJI> rose 66.20 points, or 0.52 percent, to end at 12,898.38. The Standard & Poor's 500 Index <.SPX> added 5.62 points, or 0.40 percent, to 1,408.66. The Nasdaq Composite Index <.IXIC> inched up 1.58 points, or 0.06 percent, to 2,496.70.
Trading was extremely light on the New York Stock Exchange, with about 1.19 billion shares changing hands, well below last year's estimated daily average of roughly 1.90 billion, and the second-lowest level of volume so far this year. NYSE trading volume hit its low for the year on Monday, when 1.05 billion shares traded hands.
However, the Chicago Board Options Exchange Volatility Index <.VIX>, or VIX, which is Wall Street's fear barometer, slid at one point to its lowest level since October 2007 as stocks rallied. The VIX was down 1.8 percent at the close.
Shares of Macy's rose 3.6 percent to $24.93.
Freddie Mac, the No. 2 provider of funding for U.S. residential mortgages, shot up 9.2 percent to $27.25.
The Dow Jones home construction Index <.DJUSHB> climbed 2.7 percent. The stock of D.R. Horton Inc <DHI.N>, the largest U.S. home builder, jumped 2.9 percent to $15.36.
APPLE FALLS, ENERGY SLIPS
On the Nasdaq, shares of Apple declined 2 percent to $196.26. Also, top video game publisher Electronic Arts Inc <ERTS.O> dropped 3.3 percent to $52.78. Late Tuesday, the company issued an annual profit outlook that fell short of Wall Street forecasts.
Energy companies' stocks also fell after U.S. crude <CLc1> slid $1.58 to settle at $124.22 per barrel, a day after it approached a record just 2 cents shy of $127. The S&P energy index <.GSPE> ended down 0.9 percent.
Shares of Deere & Co <DE.N> tumbled 9.9 percent to $81.25 and ranked among the top drags on the S&P 500 after the farm and construction machinery company warned that higher material costs and possible shortages of components will affect results
Among other drags on Nasdaq: Whole Foods Market Inc <WFMI.O> sank 13.9 percent to $28.96 after it posted a lower quarterly net profit that missed analysts' estimates. For details, see [ID:nN13428622]
Before the opening bell, the Labor Department said the overall CPI for April rose 0.2 percent -- less than economists expected. Core CPI, excluding volatile food and energy costs, gained 0.1 percent in April -- also below forecast.
The Fed's seven rate cuts, amounting to 3.25 percentage points, have now taken the Fed's benchmark fed funds rate down to 2 percent. The Fed's most recent rate decision, which analysts speculated could be the last for the near term, was on April 30. (Editing by Jan Paschal) ((caroline.valetkevitch@thomsonreuters.com; +1 646 223 6393; Reuters Messaging:caroline.valetkevitch.reuters.com@reuters.net)) ((Multimedia versions of Reuters Top News are now available for: * 3000 Xtra: visit http://topnews.session.rservices.com * BridgeStation: view story .134 For more information on Top News: http://topnews.reuters.com))
Keywords: MARKETS STOCKS
==============================================================
To access running updates on what's moving U.S. stocks double
click on [STXNEWS/US]
==============================================================
For other U.S. market data and news, click on codes in
brackets:
U.S. Equities speed guide........................<US/EQUITY>
S&P 500 index ........................................<.SPX>
Dow Jones industrial average..........................<.DJI>
Nasdaq Composite index...............................<.IXIC>
Nasdaq 100............................................<.NDX>
Russell 2000 small cap................................<.RUT>
S&P major sectors..............................<0#.GSPMAJOR>
NYSE most active.....................................<.AV.N>
Nasdaq most active...................................<.AV.O>
Top NYSE pct gainers.................................<.PG.N>
Top NYSE pct losers..................................<.PL.N>
Top Nasdaq pct gainers...............................<.PG.O>
Top Nasdaq pct losers................................<.PL.O>
52 week highs:
NYSE...............<t.YH.N> Nasdaq..............<t.YH.O>
52 week lows:
NYSE...............<t.YL.N> Nasdaq..............<t.YL.O>
Main global stock indexes and market reports:
FTSE Eurotop 300 .....<.FTEU3> European report .......[.EU]
Nikkei 225.............<.N225> Tokyo report............[.T]
FTSE 100...............<.FTSE> London report...........[.L]
Xetra DAX.............<.GDAXI> Frankfurt market stories[.F]
CAC-40.................<.FCHI> Paris market stories...[.PA]
World Indices.....................................<0#.INDEX>
Reuters survey of world bourse outlook.........<EQUITYPOLL1>
U.S. IPO diary........................................[IPO/]
U.S. Asset Allocation Table.......................[US/ASSET]
More Reuters News on equities at a glance:
Equities ............[E] US company news.........[TOP/EQU]
Key non-equities market reports:
Foreign exchange......................................[FRX/]
Oil....................................................[O/R]
US Treasuries.........................................[US/N]
International bonds...................................[EUB/]
Gold.......................................[GOL/X] or [GOL/]
CRB index of commodity futures........................[CRB/]
US STOCKS-Benign inflation, strong results boost Wall St
Reuters: [2008-05-14 22:35:00]
(Updates to close)
* Modest rise in CPI supports stocks
* Freddie Mac smaller than expected loss reassures
* Strong Macy's results lift retailers
By Caroline Valetkevitch
NEW YORK, May 14 (Reuters) - U.S. stocks rose on Wednesday in light trading after a modest rise in consumer prices in April cooled inflation fears while Macy's Inc <M.N> and Freddie Mac <FRE.N> posted reassuring quarterly results.
A milder-than-expected gain in the Consumer Price Index took the edge off fears of an inflationary spurt triggered by soaring energy prices. That could allow the Federal Reserve more time to hold interest rates steady, analysts said.
Shares of retailers and home builders, which benefit from steady to lower borrowing costs, advanced. The S&P retail index <.RLX> rose 1.6 percent, as Macy's stood by the profit forecast for its department stores despite expectations of an economic slowdown.
Freddie Mac, seen as a housing market barometer, brightened the mood on Wall Street by raising its growth outlook and unveiling a plan to raise new capital to support the beleagured home loan market.
"People were nervous about the inflation number. When it was somewhat better than expected, that triggered the rally," said Eric Kuby, chief investment officer at North Star Investment Management Corp., in Chicago.
Stocks pared gains late in the session, leaving the Nasdaq just barely higher. The market's sharp climb "ran out of steam without another leg of news to keep rally going," Kuby said.
The Dow Jones industrial average <.DJI> rose 66.20 points, or 0.52 percent, to end at 12,898.38. The Standard & Poor's 500 Index <.SPX> added 5.62 points, or 0.40 percent, to 1,408.66. The Nasdaq Composite Index <.IXIC> inched up 1.58 points, or 0.06 percent, to 2,496.70.
Trading was extremely light on the New York Stock Exchange, with about 1.19 billion shares changing hands, well below last year's estimated daily average of roughly 1.90 billion, and the second-lowest level of volume so far this year. NYSE trading volume hit its low for the year on Monday, when 1.05 billion shares traded hands.
However, the Chicago Board Options Exchange Volatility Index <.VIX>, or VIX, which is Wall Street's fear barometer, slid at one point to its lowest level since October 2007. The VIX was down 1.8 percent at the close.
Shares of Macy's rose 3.6 percent to $24.93.
Freddie Mac, the No. 2 provider of funding for U.S. residential mortgages, shot up 9.2 percent to $27.25.
The Dow Jones home construction Index <.DJUSHB> climbed 2.7 percent. The stock of D.R. Horton Inc <DHI.N>, the largest U.S. home builder, jumped 2.9 percent to $15.36.
On the Nasdaq, shares of top video game publisher Electronic Arts Inc <ERTS.O> fell 3.3 percent to $52.78. Late Tuesday, the company issued an annual profit outlook that fell short of Wall Street forecasts.
Shares of Deere & Co <DE.N> tumbled 9.9 percent to $81.25 and ranked among the top drags on the S&P 500 after the farm and construction machinery company warned that higher material costs and possible shortages of components will affect results
Before the opening bell, the Labor Department said the overall CPI for April rose 0.2 percent -- less than economists expected. Core CPI, excluding volatile food and energy costs, gained 0.1 percent in April -- also below forecast.
The Fed's seven rate cuts, amounting to 3.25 percentage points, have now taken the Fed's benchmark fed funds rate down to 2 percent. The Fed's most recent rate decision, which analysts speculated could be the last for the near term, was on April 30. (Additional reporting by Cal Mankowski; Editing by Jan Paschal)
((caroline.valetkevitch@thomsonreuters.com; +1 646 223 6393; Reuters Messaging:caroline.valetkevitch.reuters.com@reuters.net)) ((Multimedia versions of Reuters Top News are now available for: * 3000 Xtra: visit http://topnews.session.rservices.com * BridgeStation: view story .134 For more information on Top News: http://topnews.reuters.com))
Keywords: MARKETS STOCKS
US STOCKS-Dow, S&P rise on tame inflation; Nasdaq flat
Reuters: [2008-05-14 22:16:00]
(Updates to 4 p.m.)
NEW YORK, May 14 (Reuters) - The Dow and S&P 500 ended higher on Wednesday in light trading after data showed tame inflation in April, while Macy's <M.N> and Freddie Mac <FRE.N> reporter stronger-than-expected results.
The Nasdaq finished little changed after a drop in shares of Apple Inc <AAPL.O>.
Based on the latest available data, the Dow Jones industrial average <.DJI> was up 65.22 points, or 0.51 percent, at 12,897.40. The Standard & Poor's 500 Index <.SPX> was up 5.41 points, or 0.39 percent, at 1,408.45. The Nasdaq Composite Index <.IXIC> was up 1.58 points, or 0.06 percent, at 2,496.70. (Reporting by Jennifer Coogan; Editing by Kenneth Barry) ((jennifer.coogan@thomsonreuters.com; + 1 646-223-6125; Reuters Messaging: jennifer.coogan.reuters.com@reuters.net)) ((Multimedia versions of Reuters Top News are now available for: * 3000 Xtra: visit http://topnews.session.rservices.com * BridgeStation: view story .134 For more information on Top News: http://topnews.reuters.com)) Keywords: MARKETS STOCKS
==============================================================
To access running updates on what's moving U.S. stocks double
click on [STXNEWS/US]
==============================================================
For other U.S. market data and news, click on codes in
brackets:
U.S. Equities speed guide........................<US/EQUITY>
S&P 500 index ........................................<.SPX>
Dow Jones industrial average..........................<.DJI>
Nasdaq Composite index...............................<.IXIC>
Nasdaq 100............................................<.NDX>
Russell 2000 small cap................................<.RUT>
S&P major sectors..............................<0#.GSPMAJOR>
NYSE most active.....................................<.AV.N>
Nasdaq most active...................................<.AV.O>
Top NYSE pct gainers.................................<.PG.N>
Top NYSE pct losers..................................<.PL.N>
Top Nasdaq pct gainers...............................<.PG.O>
Top Nasdaq pct losers................................<.PL.O>
52 week highs:
NYSE...............<t.YH.N> Nasdaq..............<t.YH.O>
52 week lows:
NYSE...............<t.YL.N> Nasdaq..............<t.YL.O>
Main global stock indexes and market reports:
FTSE Eurotop 300 .....<.FTEU3> European report .......[.EU]
Nikkei 225.............<.N225> Tokyo report............[.T]
FTSE 100...............<.FTSE> London report...........[.L]
Xetra DAX.............<.GDAXI> Frankfurt market stories[.F]
CAC-40.................<.FCHI> Paris market stories...[.PA]
World Indices.....................................<0#.INDEX>
Reuters survey of world bourse outlook.........<EQUITYPOLL1>
U.S. IPO diary........................................[IPO/]
U.S. Asset Allocation Table.......................[US/ASSET]
More Reuters News on equities at a glance:
Equities ............[E] US company news.........[TOP/EQU]
Key non-equities market reports:
Foreign exchange......................................[FRX/]
Oil....................................................[O/R]
US Treasuries.........................................[US/N]
International bonds...................................[EUB/]
Gold.......................................[GOL/X] or [GOL/]
CRB index of commodity futures........................[CRB/]
Next: US STOCKS-Wall St pares gains; Apple drags on Nasdaq