(Source: Associated Press/AP Online)
Tax credits fuel 6 pct rise in April home sales
WASHINGTON (AP) - A rush of homebuyers aiming to meet a deadline to qualify for a federal tax credit pushed the number of signed sales contracts to the highest level since October.
The National Association of Realtors said Wednesday its seasonally adjusted index of sales agreements for previously occupied homes rose 6 percent in April from a month earlier to a reading of 110.9. March's reading was revised upward to 104.6.
The rise marked the third consecutive month of increases, all of them aided by federal tax credits of up to $8,000.
But the tax credits expired on April 30. Many analysts expect sales to drop in the coming months.
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Stocks jump after pending home sales top forecasts
NEW YORK (AP) - The stock market rebounded Wednesday following a stronger-than-expected increase in pending home sales and a recovery in shares of energy companies.
The Dow Jones industrial average rose about 226 points to 10,249.54, its third biggest gain of 2010. Major indexes recovered the losses they suffered Tuesday shortly before the close, when the government announced criminal and civil investigations into the Gulf oil spill.
Energy stocks led the advance after oil prices rose. Schlumberger, which provides services to oil companies, rose more than 8.8 percent, while Baker Hughes climbed about 10.5 percent.
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Buffett defends rating agencies for missing crisis
NEW YORK (AP) - Billionaire investor Warren Buffett on Wednesday defended credit rating agencies that gave overly positive grades to mortgage-related investments before the housing bust. He said the agencies were among many who missed warnings signs of the crisis.
But he said he counted himself among those who failed to foresee the collapse of the housing bubble. Buffett called it the "greatest bubble" he had ever seen. Had he known how bad it would get, Buffett said he would have sold his company's stake in rating agency Moody's Corp.
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Consumers snap up cars in May, despite fewer deals
DETROIT (AP) - Americans shrugged off fewer discounts and a scary stock market plunge last month, snapping up new automobiles and delivering another month of higher sales for carmakers.
The industry's double-digit jump in sales shows that consumers feel the economy is healthy enough for them to buy a new car or truck. It's easier to get a car loan and gas prices are holding steady.