GOP senator signals fading hopes on health care

WASHINGTON – A leading GOP negotiator on health care struck a further blow to fading chances of a bipartisan compromise by saying Democratic proposals would restrict medical choices and make the country's "finances sicker without saving you money."

The criticism from Sen. Michael Enzi, R-Wyo., echoed that of many opponents of the Democratic plans under consideration in Congress. But Enzi's judgment was especially noteworthy because he is one of only three Republicans who have been willing to consider a bipartisan bill in the Senate.

In the Republicans' weekly radio and Internet address on Saturday, Enzi said any health care legislation must lower medical costs for Americans without increasing deficits and the national debt.

"The bills introduced by congressional Democrats fail to meet these standards," he said.

Enzi, together with Republican Sens. Charles Grassley of Iowa and Olympia Snowe of Maine, has held talks with Senate Finance Committee Chairman Max Baucus, D-Mont. But the chance of a bipartisan breakthrough has diminished in the face of an effective public mobilization by opponents of Democratic proposals.

"I heard a lot of frustration and anger as I traveled across my home state this last few weeks," said Enzi, who has been targeted by critics for seeking to negotiate on legislation. "People in Wyoming and across the country are anxious about what Washington has in mind. This is big. This is personal. This is one of the most important debates of our lifetime."

He called for more competition among health insurers, for the ability of small businesses to band together across state lines to negotiate for lower-cost insurance plans, for tax breaks to help people buy insurance and for reducing malpractice lawsuits.

The debate over health care will resume in Washington after Labor Day, just two weeks after White House budget officials projected that deficits would total a staggering $9 trillion over the next 10 years. Though President Barack Obama has said he wants the total health care bill paid for without adding to the deficit, congressional budget officials have estimated that House health care proposals would cost the government more.

"The Democrats are trying to rush a bill through the process that will actually make our nation's finances sicker without saving you money," Enzi said.

Democrats also are calling for cuts in Medicare spending, using some of the savings to help uninsured workers. A House bill would result in a net reduction in Medicare of about $200 billion, though Obama has insisted the reductions would not cut benefits in the health program for the elderly.

But Enzi said: "This will result in cutting hundreds of billions of dollars from the elderly to create new government programs."

He repeated Republican accusations that the Democrats' plans would result in less access to certain medical treatments, citing a proposed government board that would research the most effective medical practices.

"We're a nation of people who want the ability to choose what will best fit our families' needs and it should be that way with health care, too," Enzi said.

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On the Net:

GOP weekly address: http://www.youtube.com/user/gopweeklyaddress

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.