Business Highlights

GM sale cleared, path opens to exit Chapter 11

DETROIT (AP) — The path is now clear for General Motors Corp. to leave bankruptcy protection in record time as a leaner company that is better equipped to compete in a brutal global auto market.

On Thursday, a judge's order allowing GM to sell most of its assets to a new company went into effect, despite a last-minute appeal by plaintiffs in a product liability case.

GM spokeswoman Julie Gibson said U.S. Bankruptcy Judge Robert Gerber's order became effective at 12 p.m. EDT. GM lawyers are working on paperwork to close the sale as quickly as possible, after which GM would leave bankruptcy protection.

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Gains in financials, material stocks lift market

NEW YORK (AP) — Stocks edged higher Thursday as investors put money into banking and industrial stocks as well as commodities. Investors worried about the economy have been cautious about buying stocks, even after heavy selling earlier this week made shares look relatively cheap.

Investors were encouraged by better-than-expected results from aluminum maker Alcoa Inc., which started second-quarter earnings season and stoked hopes for more upbeat corporate reports to come.

The gains were tempered by weak sales reports from retailers and evidence that the labor market is still hurting. The Dow Jones industrial average tacked on 5 points to 8,183.17, a second day of modest gains after tumbling 161 points Tuesday.

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Jobless claims indicate economy remains weak

WASHINGTON (AP) — Even though new claims for jobless benefits fell more than expected last week, dipping below 600,000 for the first time since early January, the number of Americans seeking this safety net points to an economy that is still very weak.

Layoffs are slowing, but jobs are scarce, leaving nearly 7 million Americans collecting unemployment checks and retailers looking for customers.

The number of newly laid-off workers requesting unemployment insurance fell by 52,000 to a seasonally-adjusted 565,000, the Labor Department said Thursday. But the drop was mostly due to a shift in the timing of auto-related layoffs, leading many economists to discount the decline.

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Weak retail sales in June raise worries

NEW YORK (AP) — After yet another weak month, retailers are preparing to fight for their share of crucial back-to-school shopping. But they may have to keep discounting to keep consumers coming in, given escalating job uncertainty.

Particularly worrisome in Thursday's same-store sales reports: Mall-based teen stalwarts like Abercrombie & Fitch were among those hit hardest as families looked for bargains.

Wal-Mart Stores Inc., the world's largest retailer, is expected to be a big winner as it woos young shoppers with trendy electronics and fashions, but its sales are no longer included in the monthly data.

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World leaders vow to restart stalled trade talks

L'AQUILA, Italy (AP) — Leaders of the exclusive club of eight industrialized leaders plus five of the fastest developing nations are calling for open markets and a battle against protectionism as the answer to the world's economic meltdown.

But the need to save jobs back home is pulling them in the opposite direction. How can the goal set by the leaders — completing a long-stalled world trade deal by next year — be reconciled with major pressures to protect local industries?

Meeting in the quake-stricken Italian city of L'Aquila, the leaders said they wanted to finally reach an agreement next year on a long-stalled world trade deal, according to a draft of a joint declaration obtained by The Associated Press. It's a familiar pledge that has failed to prompt action in the past.

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Oil wavers near $60 as consumers scale back

NEW YORK (AP) — Oil prices wavered around $60 per barrel Thursday with new consumer and employment data casting a pall over energy markets, but still rose slightly at the close for the first time in more than a week.

Benchmark crude for August delivery rose 27 cents to settle at $60.41 a barrel on the New York Mercantile Exchange. Still, crude prices in intraday trading fell below $60 for the first time since May.

Consumers fearful of job cuts, or those who lost jobs, are spending less, which has dragged down everything from retail to gasoline sales.

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Citigroup shuffles executives, former CFO leaving

NEW YORK (AP) — Citigroup Inc. shuffled its top management again Thursday, naming its third chief financial officer of the year and bringing in a new head of its Citibank division as it returns its focus to traditional banking.

Edward Kelly, who took over as the bank's finance chief in March, is on the move for the second time in less than five months and will now oversee strategy and mergers in a new role as vice chairman. John Gerspach, 56, currently the bank's chief accounting officer, is taking over as CFO.

Gary Crittenden, who served as CFO until being replaced by Kelly in March, is leaving the company altogether.

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SEC to call for Calif. IOUs treated as securities

WASHINGTON (AP) — The recipients of billions of dollars in IOUs being issued by California soon may have a regulated market where they could sell them.

Some of the nation's largest banks say that, starting Friday, they will no longer accept the IOUs. The banks want to pressure the state to end its budget impasse, but their action could leave many businesses and families with fewer options for getting their money.

The Securities and Exchange Commission is going to recommend that the IOUs, which carry an annual interest rate of 3.75 percent, be regulated by the Municipal Securities Rulemaking Board as a form of municipal debt.

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GM, Chrysler fight reopening of closed dealerships

WASHINGTON (AP) — General Motors and Chrysler urged lawmakers Thursday to block legislation that would prevent them from consolidating their dealership networks, warning it would complicate their emergence from government-led bankruptcies.

With GM poised to exit bankruptcy protection, company leaders pressed House members to overturn an amendment approved late Tuesday by a House committee that would force General Motors Corp. and Chrysler LLC to restore franchise agreements with dealers as a condition of partial government ownership.

The Michigan auto companies are closing nearly 3,000 dealerships as part of their sweeping reorganization plans under bankruptcy protection, a move supported by the Obama administration.

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Sprint Nextel signs networking deal with Ericsson

KANSAS CITY, Mo. (AP) — Sprint Nextel Corp. on Thursday announced it will transfer operation of its wireless and wireline networks to Swedish telecommunications equipment maker LM Ericsson.

The seven-year deal, valued between $4.5 billion and $5 billion, will transfer about 6,000 Sprint employees later this year to an Ericsson-owned subsidiary, based at Sprint's Overland Park, Kan., headquarters. About 2,000 of the employees are currently based in the Kansas City area with the remainder spread across the country.

By The Associated Press

The Dow rose 4.76, or 0.1 percent, to 8,183.17.

The Standard & Poor's 500 index rose 3.12, or 0.4 percent, to 882.68, while the Nasdaq composite index gained 5.38, or 0.3 percent, to 1,752.55.

Benchmark crude for August delivery rose 27 cents to settle at $60.41 a barrel on the New York Mercantile Exchange.

In other Nymex trading, heating oil fell less than a penny to settle at $1.5344 a gallon, but gasoline for August delivery rose 3.05 cents to settle at $1.6638 a gallon. Natural gas for August delivery rose 5.5 cents to settle at $3.408 per 1,000 cubic feet.

In London, Brent prices rose 67 cents to settle at $61.10 a barrel on the ICE Futures exchange.

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