Showing posts with label USA. Show all posts
Showing posts with label USA. Show all posts

Wednesday, August 26, 2009

Stocks edge higher after jump in home sales


NEW YORK – Reports showing jumps in home sales and factory orders are keeping stocks afloat.

Major stock indicators reversed early losses and edged slightly higher in early trading Wednesday after the Commerce Department said new home sales rose 9.6 percent in July — the fourth straight monthly increase. Sales rose to 433,000, the strongest pace since September and well above the 390,000 figure economists expected.

Earlier Wednesday, the Commerce Department said orders for goods expected to last at least three years rose 4.9 percent in July — the biggest jump in two years and more than the 3 percent increase economists had expected.

The day's news followed upbeat readings on consumer sentiment and home prices on Tuesday that sent stocks to fresh highs for the year.

The market's gains on Wednesday were modest, reflecting the caution that still pervades Wall Street. After a five-month run-up in stocks, with little break, investors are unsure how much further the market can go without seeing actual economic growth.

Matt King, chief investment officer at Bell Investment Advisors said much of the improving economic data has already been factored into stocks.

"We're just moving on momentum more than anything else," he said.

In early trading, the Dow Jones industrials moved higher for a seventh straight day, rising 13.45, or 0.1 percent, to 9,552.74, after being down as much as 45 points prior to the home sales data.

The Standard & Poor's 500 index rose 1.15, or 0.1 percent, to 1,029.15, and the Nasdaq composite index rose 3.45, or 0.2 percent, to 2,027.68.

Advancing issues were roughly even with decliners on the New York Stock Exchange, where volume came to 315.2 million shares, compared with 394.9 million shares at the same time on Tuesday.

In other trading, the Russell 2000 index of smaller companies rose 1.19, or 0.2 percent, to 584.41.

Shares of homebuilders surged for a second day after the housing data. Hovnanian Enterprises Inc. rose 36 cents, or 7.9 percent, to $4.93, tacking on to its 6.5 percent jump the day before. DR Horton Inc. rose 67 cents, or 5.1 percent, to $13.72.

Retail stocks were mostly higher after a handful of upbeat earnings reports. Shares of Dollar Tree Inc. rose $2.98, or 6.2 percent, to $50.88 after the company posted a 51 percent jump in its second-quarter profit as its deeply discounted goods attracted cash-strapped consumers.

Government bond prices dipped after the positive economic data and ahead of an auction of $39 billion in five-year notes. The yield on the benchmark 10-year Treasury note rose to 3.45 percent from 3.44 percent late Tuesday.

Stocks got a lift Tuesday after improving data on home prices reinforced the notion that the battered industry is stabilizing. The Standard & Poor's/Case-Shiller U.S. National Home Price Index rose 1.4 percent in the second quarter, the first quarterly increase in three years. Traders also welcomed a more upbeat report on consumer sentiment from the Conference Board.

The dollar rose against other major currencies. Prices for gold and other metals fell.

Overseas, Japan's Nikkei stock average rose 1.4 percent. In afternoon trading, Britain's FTSE 100 declined 0.4 percent, Germany's DAX index fell 0.3 percent, and France's CAC-40 rose 0.1 percent.

July new US home sales up 9.6 percent


WASHINGTON – New U.S. home sales surged 9.6 percent in July, rising for the fourth straight month and beating expectations as the housing market marches steadily back from its historic downturn.

The Commerce Department said Wednesday that sales rose to a seasonally adjusted annual rate of 433,000 from an upwardly revised June rate of 395,000. Sales are now up 32 percent from the bottom in January, but off 69 percent from the frenzied peak four years ago.

Last month's sales pace was the strongest since September and exceeded the forecasts of economists surveyed by Thomson Reuters, who expected a pace of 390,000 units. The last time sales rose so dramatically was in February 2005.

The median sales price of $210,100, however, was still down 11.5 percent from $237,300 a year earlier.

There were 271,000 new homes for sale at the end of July, down more than 3 percent from May. At the current sales pace, that represents 7.5 months of supply — the lowest since April 2007. The decline means builders have scaled back construction to the point where supply and demand are coming into balance.

Buyers, meanwhile, are rushing to take advantage of a federal tax credit that covers 10 percent of the home price, or up to $8,000 for first-time owners. Home sales must be completed by the end of November for buyers to qualify.

Builders and real estate agents are pressing Congress for that credit to be extended. If it isn't, sales could reverse their upward trend.

Sen. Edward Kennedy, 77, dies after cancer battle



HYANNIS PORT, Mass. – Sen. Edward M. Kennedy of Massachusetts, the last surviving brother in an enduring political dynasty and one of the most influential senators in history, died Tuesday night at his home on Cape Cod after a yearlong struggle with brain cancer. He was 77.

In nearly 50 years in the Senate, Kennedy, a liberal Democrat, served alongside 10 presidents — his brother John Fitzgerald Kennedy among them — compiling an impressive list of legislative achievements on health care, civil rights, education, immigration and more.

In a brief statement to reporters at his rented vacation home on Martha's Vineyard, Mass., President Barack Obama eulogized Kennedy as one of the "most accomplished Americans" in history — and a man whose work in Congress helped give millions new opportunities.

"Including myself," added the nation's first black president.

Kennedy's only run for the White House ended in defeat in 1980, when President Jimmy Carter turned back his challenge for the party's nomination. More than a quarter-century later, Kennedy handed then-Sen. Barack Obama an endorsement at a critical point in the campaign for the Democratic presidential nomination, explicitly likening the young contender to President Kennedy.

To the American public, Kennedy was best known as the last surviving son of America's most glamorous political family, father figure and, memorably, eulogist of an Irish-American clan plagued again and again by tragedy. But his career was forever marred by an accident at Chappaquiddick in 1969, when a car he was driving plunged off a bridge, killing a young woman.

Kennedy's death triggered an outpouring of superlatives from Democrats and Republicans as well as foreign leaders.

Sen. Orrin Hatch, the conservative Republican from Utah who was alternately a political partner and opponent of the unapologetic liberal for three decades, said "Ted Kennedy was an iconic, larger than life United States Senator whose influence cannot be overstated." He listed of nearly a dozen bipartisan bills they worked on jointly, including a federally funded program for victims of HIV/AIDS, health insurance for lower-income children and tax breaks to encourage the development of medicine for rare diseases.

Kennedy's family announced his death in a brief statement released early Wednesday.

"We've lost the irreplaceable center of our family and joyous light in our lives, but the inspiration of his faith, optimism, and perseverance will live on in our hearts forever," it said. "We thank everyone who gave him care and support over this last year, and everyone who stood with him for so many years in his tireless march for progress toward justice, fairness and opportunity for all."

A few hours later, two vans left the famed Kennedy compound at Hyannis Port in pre-dawn darkness. Both bore hearse license plates — with the word "hearse" blacked out.

Several hundred miles away, flags few at half-staff at the U.S. Capitol, and Obama ordered the same at the White House and all federal buildings.

There was no immediate word on funeral arrangements. Two of Kennedy's brothers, John and Robert, are buried at Arlington National Cemetery across the Potomac River from Washington.

In his later years, Kennedy cut a barrel-chested figure, with a swath of white hair, a booming voice and a thick, widely imitated Boston accent. He coupled fist-pumping floor speeches with his well-honed Irish charm and formidable negotiating skills. He was both a passionate liberal and a clear-eyed pragmatist, willing to reach across the aisle.

He was first elected to the Senate in 1962, taking the seat that his brother John had occupied before winning the White House, and served longer than all but two senators in history.

His own hopes of reaching the White House were damaged — perhaps doomed — in 1969 by the scandal that came to be known as Chappaquiddick. He sought the White House more than a decade later, lost the Democratic nomination to President Jimmy Carter, and bowed out with a stirring valedictory that echoed across the decades: "For all those whose cares have been our concern, the work goes on, the cause endures, the hope still lives and the dream shall never die."

Kennedy was diagnosed with a cancerous brain tumor in May 2008 and underwent surgery and a grueling regimen of radiation and chemotherapy.

He made a surprise return to the Capitol last summer to cast the decisive vote for the Democrats on Medicare. He made sure he was there again last January to see his former Senate colleague Barack Obama sworn in as the nation's first black president, but suffered a seizure at a celebratory luncheon afterward.

He also made a surprise and forceful appearance at last summer's Democratic National Convention, where he spoke of his own illness and said health care was the cause of his life. His death occurred precisely one year later, almost to the hour.

He was away from the Senate for much of this year, leaving Republicans and Democrats to speculate about the impact what his absence meant for the fate of Obama's health care proposals.

Under state law, Kennedy's successor will be chosen by special election. In his last known public act, the senator urged Massachusetts state legislators to give Democratic Gov. Deval Patrick the power to name an interim replacement. But that appears unlikely, leaving Democrats in Washington with one less vote for at least the next several months as they struggle to pass Obama's health care legislation.

His death came less than two weeks after that of his sister Eunice Kennedy Shriver on Aug. 11. Kennedy was not present for the funeral, an indication of the precariousness of his own health. Of nine children born to Joseph and Rose Kennedy, only one — Jean Kennedy Smith, survives.

In a recent interview with The Associated Press, Kennedy's son Rep. Patrick Kennedy, D-R.I., said his father had defied the predictions of doctors by surviving more than a year with his fight against brain cancer.

The younger Kennedy said that gave family members a surprise blessing, as they were able to spend more time with the senator and to tell him how much he had meant to their lives.

Kennedy arrived at his place in the Senate after a string of family tragedies. He was the only one of the four Kennedy brothers to die of natural causes.

Kennedy's eldest brother, Joseph, was killed in a plane crash in World War II. President John F. Kennedy was assassinated in Dallas in 1963. Sen. Robert F. Kennedy was gunned down in Los Angeles as he campaigned for the 1968 Democratic presidential nomination.

Years later, in 1999, John F. Kennedy Jr. was killed in a plane crash at age 38. His wife died with him.

It fell to Ted Kennedy to deliver the eulogies, to comfort his brothers' widows, to mentor fatherless nieces and nephews. It was Ted Kennedy who walked JFK's daughter, Caroline, down the aisle at her wedding.

Tragedy had a way of bringing out his eloquence.

Kennedy sketched a dream of a better future as he laid to rest his brother Robert in 1968: "My brother need not be idealized, or enlarged in death beyond what he was in life; to be remembered simply as a good and decent man, who saw wrong and tried to right it, saw suffering and tried to heal it, saw war and tried to stop it."

After John Jr.'s death, the senator said: "We dared to think, in that other Irish phrase, that this John Kennedy would live to comb gray hair, with his beloved Carolyn by his side. But like his father, he had every gift but length of years."

His own legacy was blighted on the night of July 18, 1969, when Kennedy drove his car off a bridge and into a pond on Chappaquiddick Island, on Martha's Vineyard. Mary Jo Kopechne, a 28-year-old worker with RFK's campaign, was found dead in the submerged car's back seat 10 hours later.

Kennedy, then 37, pleaded guilty to leaving the scene of an accident and received a two-month suspended sentence and a year's probation. A judge eventually determined there was "probable cause to believe that Kennedy operated his motor vehicle negligently ... and that such operation appears to have contributed to the death of Mary Jo Kopechne."

At the height of the scandal, Kennedy went on national television to explain himself in an extraordinary 13-minute address in which he denied driving drunk and rejected rumors of "immoral conduct" with Ms. Kopechne. He said he was haunted by "irrational" thoughts immediately after the accident, and wondered "whether some awful curse did actually hang over all the Kennedys." He said his failure to report the accident right away was "indefensible."

After Chappaquiddick especially, Kennedy gained a reputation as a heavy drinker and a womanizer, a tragically flawed figure haunted by the fear that he did not quite measure up to his brothers. As his weight ballooned, he was lampooned by comics and cartoonists in the 1980s and '90s as the very embodiment of government waste, bloat and decadence.

In 1991, Kennedy roused his nephew William Kennedy Smith and his son Patrick from bed to go out for drinks while staying at the family's Palm Beach, Fla., estate. Later that night, a woman Smith met at a bar accused him of raping her at the home.

Smith was acquitted, but the senator's carousing — and testimony about him wandering about the house in his shirttails and no pants — further damaged his reputation.

Kennedy offered a mea culpa in a speech at Harvard that October, recognizing "my own shortcomings, the faults in the conduct of my private life."

Politically, his concession speech at the Democratic convention in 1980 turned out to be a defining moment. At 48, he seemed liberated from the towering expectations and high hopes invested in him after the death of his brothers, and he plunged into his work in the Senate. In his later years, after he had divorced and remarried, he came to be regarded as a statesman on Capitol Hill, with a growing reputation as an effective, hard-working lawmaker.

His legislative achievements included bills to provide health insurance for children of the working poor, the landmark 1990 Americans with Disabilities Act, Meals on Wheels for the elderly, abortion clinic access, family leave, and the Occupational Safety and Health Administration.

He was also a key negotiator on legislation creating a Medicare prescription drug benefit for senior citizens, was a driving force for peace in Ireland and a persistent critic of the war in Iraq.

Senate Majority Leader Harry Reid of Nevada issued a statement that said: "Ted Kennedy's dream was the one for which the Founding Fathers fought and for which his brothers sought to realize. The liberal lion's mighty roar may now fall silent, but his dream shall never die."

Former first Lady Nancy Reagan said that her husband and Kennedy "could always find common ground, and they had great respect for one another."

"Even facing illness and death he never stopped fighting for the causes which were his life's work. I am proud to have counted him as a friend and proud that the United Kingdom recognized his service earlier this year with the award of an honorary knighthood." — British Prime Minister Gordon Brown.

Whatever his national standing, Kennedy was unbeatable in Massachusetts. He won his first election in 1962, filling out the unexpired portion of his brother's term. He won an eighth term in 2006. Kennedy served close to 47 years, longer than all but two senators in history: Robert Byrd of West Virginia (50 years and counting) and the late Strom Thurmond of South Carolina, who died after a tenure of nearly 47 1/2 years.

Born in 1932, the youngest of Joseph and Rose Kennedy's nine children, Edward Moore Kennedy was part of a family bristling with political ambition, beginning with maternal grandfather John F. "Honey Fitz" Fitzgerald, a congressman and mayor of Boston.

Round-cheeked Teddy was thrown out of Harvard in 1951 for cheating, after arranging for a classmate to take a freshman Spanish exam for him. He eventually returned, earning his degree in 1956.

He went on to the University of Virginia Law School, and in 1962, while his brother John was president, announced plans to run for the Senate seat JFK had vacated in 1960. A family friend had held the seat in the interim because Kennedy was not yet 30, the minimum age for a senator.

Kennedy was immediately involved in a bruising primary campaign against state Attorney General Edward J. McCormack, a nephew of U.S. House Speaker John W. McCormack.

"If your name was simply Edward Moore, your candidacy would be a joke," chided McCormack.

Kennedy won the primary by 300,000 votes and went on to overwhelmingly defeat Republican George Cabot Lodge, son of the late Ambassador Henry Cabot Lodge, in the general election.

Devastated by his brothers' assassinations and injured in a 1964 plane crash that left him with back pain that would plague him for decades, Kennedy temporarily withdrew from public life in 1968. But he re-emerged in 1969 to be elected majority whip of the Senate.

Then came Chappaquiddick.

Kennedy still handily won re-election in 1970, but he lost his leadership job. He remained outspoken in his opposition to the Vietnam War and support of social programs but ruled out a 1976 presidential bid.

In the summer of 1978, a Gallup Poll showed that Democrats preferred Kennedy over President Carter 54 percent to 32 percent. A year later, Kennedy decided to run for the White House with a campaign that accused Carter of turning his back on the Democratic agenda.

The difficult task of dislodging a sitting president was compounded by Kennedy's fumbling answer to a question posed by CBS' Roger Mudd: Why do you want to be president?

"Well, it's um, you know you have to come to grips with the different issues that, ah, we're facing," Kennedy said. "I mean, we can, we have to deal with each of the various questions of the economy, whether it's in the area of energy ..."

Long afterward, he said, "Well, I learned to lose, and for a Kennedy that's hard." Kennedy married Virginia Joan Bennett, known as Joan, in 1958. They divorced in 1982. In 1992, he married Washington lawyer Victoria Reggie. His survivors include a daughter, Kara Kennedy Allen; two sons, Edward Jr. and Patrick, a congressman from Rhode Island; and two stepchildren, Caroline and Curran Raclin.

Edward Jr. lost a leg to bone cancer in 1973 at age 12. Kara had a cancerous tumor removed from her lung in 2003. In 1988, Patrick had a noncancerous tumor pressing on his spine removed. He has also struggled with depression and addiction and announced in June that he was re-entering rehab.

Kennedy's memoir, "True Compass," is set to be published in the fall.

___

On the Net:

Kennedy's office: http://kennedy.senate.gov

Sunday, August 23, 2009

Millions face shrinking Social Security payment


WASHINGTON – Millions of older people face shrinking Social Security checks next year, the first time in a generation that payments would not rise.

The trustees who oversee Social Security are projecting there won't be a cost of living adjustment (COLA) for the next two years. That hasn't happened since automatic increases were adopted in 1975.

By law, Social Security benefits cannot go down. Nevertheless, monthly payments would drop for millions of people in the Medicare prescription drug program because the premiums, which often are deducted from Social Security payments, are scheduled to go up slightly.

"I will promise you, they count on that COLA," said Barbara Kennelly, a former Democratic congresswoman from Connecticut who now heads the National Committee to Preserve Social Security and Medicare. "To some people, it might not be a big deal. But to seniors, especially with their health care costs, it is a big deal."

Cost of living adjustments are pegged to inflation, which has been negative this year, largely because energy prices are below 2008 levels.

Advocates say older people still face higher prices because they spend a disproportionate amount of their income on health care, where costs rise faster than inflation. Many also have suffered from declining home values and shrinking stock portfolios just as they are relying on those assets for income.

"For many elderly, they don't feel that inflation is low because their expenses are still going up," said David Certner, legislative policy director for AARP. "Anyone who has savings and investments has seen some serious losses."

About 50 million retired and disabled Americans receive Social Security benefits. The average monthly benefit for retirees is $1,153 this year. All beneficiaries received a 5.8 percent increase in January, the largest since 1982.

More than 32 million people are in the Medicare prescription drug program. Average monthly premiums are set to go from $28 this year to $30 next year, though they vary by plan. About 6 million people in the program have premiums deducted from their monthly Social Security payments, according to the Social Security Administration.

Millions of people with Medicare Part B coverage for doctors' visits also have their premiums deducted from Social Security payments. Part B premiums are expected to rise as well. But under the law, the increase cannot be larger than the increase in Social Security benefits for most recipients.

There is no such hold-harmless provision for drug premiums.

Kennelly's group wants Congress to increase Social Security benefits next year, even though the formula doesn't call for it. She would like to see either a 1 percent increase in monthly payments or a one-time payment of $150.

The cost of a one-time payment, a little less than $8 billion, could be covered by increasing the amount of income subjected to Social Security taxes, Kennelly said. Workers only pay Social Security taxes on the first $106,800 of income, a limit that rises each year with the average national wage.

But the limit only increases if monthly benefits increase.

Critics argue that Social Security recipients shouldn't get an increase when inflation is negative. They note that recipients got a big increase in January — after energy prices had started to fall. They also note that Social Security recipients received one-time $250 payments in the spring as part of the government's economic stimulus package.

"Seniors may perceive that they are being hurt because there is no COLA, but they are in fact not getting hurt," said Andrew G. Biggs, a resident scholar at the American Enterprise Institute, a Washington think tank. "Congress has to be able to tell people they are not getting everything they want."

Social Security is also facing long-term financial problems. The retirement program is projected to start paying out more money than it receives in 2016. Without changes, the retirement fund will be depleted in 2037, according to the Social Security trustees' annual report this year.

President Barack Obama has said he would like tackle Social Security next year, after Congress finishes work on health care, climate change and new financial regulations.

Lawmakers are preoccupied by health care, making it difficult to address other tough issues. Advocates for older people hope their efforts will get a boost in October, when the Social Security Administration officially announces that there will not be an increase in benefits next year.

"I think a lot of seniors do not know what's coming down the pike, and I believe that when they hear that, they're going to be upset," said Sen. Bernie Sanders, an independent from Vermont who is working on a proposal for one-time payments for Social Security recipients.

"It is my view that seniors are going to need help this year, and it would not be acceptable for Congress to simply turn its back," he said.

___

On the Net:

Social Security Administration: http://www.ssa.gov/

National Committee to Preserve Social Security and Medicare: http://www.ncpssm.org

Saturday, August 22, 2009

AP sources: Report reveals CIA interrogation methods


WASHINGTON – As the Justice Department considers whether to investigate alleged harsh interrogation practices sanctioned by the Bush administration, sources say a soon-to-be-released report by the CIA's inspector general reveals that agency interrogators conducted mock executions of terror suspects.

These latest allegations are contained in a 2004 report that has been kept secret and is to be released next week, two congressional officials told The Associated Press. They spoke late Friday on condition of anonymity because the report has not yet been cleared for release.

Threatening a prisoner with death violates U.S. anti-torture laws.

In one case, interrogators brought a gun and power drill into a session with suspected Cole bomber Abd al Rahim al-Nashiri, the report says. The suicide bombing of the warship USS Cole killed 17 U.S. sailors in Yemen in 2000.

In another episode, a gunshot was fired in a room next to a detainee to make the prisoner believe another suspect had been killed, according to the report, which a federal judge has ordered to be made public Monday in response to a Freedom of Information Act lawsuit filed by the American Civil Liberties Union.

The IG report's findings were first reported by Newsweek on its Web site.

Nashiri was one of three CIA prisoners subjected to waterboarding, a brutal interrogation technique that simulates drowning that was among 10 techniques approved by the Bush administration's Justice Department in 2002. President Barack Obama and Attorney General Eric Holder have denounced waterboarding as torture.

"The CIA in no way endorsed behavior_ no matter how infrequent_ that went beyond formal guidance," said agency spokesman Paul Gimigliano. He declined to comment on the contents of the IG report.

Holder is considering whether to appoint a criminal prosecutor to investigate the Bush administration's interrogation practices, a controversial move that would run counter to President Barack Obama's wishes to leave the issue in the past.

Gimigliano said the career prosecutors at the Justice Department have reviewed the report to determine if any laws were broken and whether the interrogators should be prosecuted.

"Professionals in the Department of Justice decided if and when to pursue prosecution," he said. "That's how the system was supposed to work, and that's how it did work."

Just one CIA contract interrogator, David Passaro, has been prosecuted. He was found guilty in 2007 in the beating death of a prisoner in Afghanistan.

The Los Angeles Times reported Aug. 9 that a CIA operative brought a gun into an interrogation booth to force a detainee to talk. One of the congressional officials told the AP that referred to the interrogation of the USS Cole suspect.

The IG review was completed in May 2004. The ACLU has sought its release since then. It was expected to be released earlier this year but was delayed by government request.

The report casts doubt on the effectiveness of the harsh interrogation methods employed by CIA interrogators, according to quotes from the report that were contained in Bush-era Justice Department memos declassified this spring. It says no attacks were averted by information obtained using harsh interrogation methods.

The CIA detained and interrogated 94 terrorist suspects; 28 were subjected to harsh methods. Of those three were waterboarded, according to government documents made public earlier this year.

But former CIA Director Michael Hayden said this week at a panel discussion in Washington that the review also credits the harsh interrogation with yielding information on al-Qaida's basic infrastrucutre, which in turn allowed the CIA to fight the organization behind the 9/11 hijackings.

John L. Helgerson, the now-retired CIA inspector who spearheaded the investigation, told the AP in June that the report is a comprehensive review of everything the CIA did in the secret detention and interrogation program begun in the wake of the Sept. 11, 2001, terrorist attacks.

The investigation was undertaken in response to concerns expressed by agency employees about the program, he added

Friday, August 21, 2009

Calif. Assembly balks at early release of inmates


SACRAMENTO, Calif. – California Assembly Speaker Karen Bass plans to strip the most controversial provisions from a Senate-approved plan that would have trimmed the state's prison population by 27,000 inmates.
The Assembly version would keep 10,600 more inmates behind bars and leave the state with a new, nearly $200 million budget hole.
Bass says the new plan — to be considered Monday — will do away with proposals by Gov. Arnold Schwarzenegger to allow home detention with electronic monitoring for inmates with less than 12 months to serve, who are older than 60 or who are medically incapacitated.
The Democrat-controlled Assembly will also reject the Republican governor's plan to lower sentences for certain property crimes to misdemeanors, making those offenders ineligible for prison.