Most US auto sales rise; safety fears trip Toyota

DETROIT (AP) -- Toyota's auto sales fell 16 percent in January, a month when it recalled millions of vehicles and halted sales of several models. Most other automakers reported higher sales and looked for opportunities to snatch sales from the troubled Japanese automaker.

January is typically a weak month for U.S. auto sales, but automakers expected sales to improve over last January, when they dipped to a 26-year low because of the tough economy.

General Motors Co. said its January sales rose 14 percent due to higher fleet and crossover vehicle sales. Crossovers are SUV-like in size but sit on a car instead of a truck frame. Rival Ford Motor Co., meanwhile, also saw sales rise 25 percent on higher fleet sales, while Nissan Motor Co.'s rose 16 percent thanks to higher demand for sedans like the Versa, Sentra and Maxima. Hyundai Motor Co.'s sales rose 24 percent as sales of the newly redesigned Tuscon SUV doubled.

Chrysler fell 8 percent on declining sales of Ram trucks and Jeeps, while Honda Motor Co. sales slipped 5 percent on weaker SUV and crossover demand. Korean automaker Kia said its January U.S. sales were essentially flat.

Transportation Sec. LaHood says Toyota slow to respond

WASHINGTON (AP) -- The Obama administration's top transportation official sharply criticized Toyota Motor Corp. on Tuesday for dragging its feet on safety concerns over its gas pedals, suggesting the automaker was "a little safety deaf" to mounting evidence of problems.

Transportation Secretary Ray LaHood told The Associated Press that federal safety officials had to "wake them up" to the seriousness of the safety issues that eventually led Toyota to recall millions of popular brands like Camry and Corolla. That included a visit to Toyota's offices in Japan to convince them to take action.

LaHood also said the government was considering civil penalties for Toyota over its handling of the recalls but declined to elaborate.

Signs of strength in housing market boost stocks

NEW YORK (AP) -- Signs of strength in the housing market pushed the Dow Jones industrial average to its second straight gain of more than 100 points.

An increase in the number of people with contracts to buy homes and the first profit at homebuilder D.R. Horton in three years raised hopes that one of the most stubborn weak spots in the economy is improving.

The Dow rose 111 points Tuesday, boosting its two-day gain to 230 points and extending a recovery from a slide in January. It was the biggest back-to-back advance for the Dow in three months.

Contracts to buy homes inch up in December

MIAMI (AP) -- The number of people preparing to buy a home rose slightly in December, a positive sign heading into the spring home buying season.

The National Association of Realtors said Tuesday its seasonally adjusted index of sales agreements rose 1 percent from November to December to a reading of 96.6. That was a bit lower than the 97.1 level analysts expected, according to Thomson Reuters.

The index has risen for nine out of the past 10 months as buyers work to take advantage of an $8,000 first-time homebuyer tax credit.

Tough economy spurs shift to cheaper liquor

NEW YORK (AP) -- Americans' love affair with top-shelf booze cooled last year as the recession took a toll on high-priced tipples.

People drank more liquor but turned to cheaper brands, according to a report by an industry group. They also drank more at home and less in pricier bars and restaurants in an effort to save money.

Industry growth slowed in 2009, with the amount of liquor sold by suppliers up 1.4 percent. That's the smallest increase since 2001 and below the 10-year average of 2.6 percent.

UPS 4Q profit nearly triples from year earlier

ATLANTA (AP) -- UPS is seeing more people using cell phones to buy and ship goods over the Internet, a greater number of customers paying for premium services like next-day air and businesses beefing up operations overseas.

The result: a fourth-quarter profit of $757 million, nearly triple the amount from a year earlier. The only blemish was UPS' money-losing freight business, which ships larger items such as gym equipment, grand pianos and automobiles.

The world's largest shipping company continues to position itself for an economic rebound, albeit a gradual one. UPS will spend less money in 2010 than it has historically on things like equipment, airplanes and trucks. It also is cutting jobs -- although UPS said Tuesday it will reinstate pay raises for managers.

Cadbury shareholders approve Kraft deal

Cadbury PLC shareholders have approved Kraft Foods Inc.'s roughly $19.5 billion offer to acquire the British candy maker -- the final step in creating the global food giant.

The focus now shifts to how Kraft will combine the companies and prove it was worth the often-bitter fight.

Kraft announced Tuesday that nearly 72 percent of Cadbury shareholders voted in support of the deal.

Together, the companies have roughly $50 billion in annual revenue through sales in 160 countries with their product lineup ranging from Kraft Macaroni & Cheese to Cadbury's Creme Eggs.

The deal gives Kraft access to critical growing international markets like India and Latin America where Cadbury thrives and ups its presence in the lucrative candy and gum market.

News Corp. reports 2Q profit on ad recovery

LOS ANGELES (AP) -- News Corp., whose 20th Century Fox movie studio is still riding the tail wind of "Avatar" in movie theaters, said Tuesday it earned $254 million in the most recent quarter, thanks to an advertising recovery.

"Avatar" was released late in the just-ended fiscal second quarter and its record-setting box office sales will likely boost profits in the current and future quarters.

The company, which is controlled by Rupert Murdoch and also owns the Fox broadcast network and The Wall Street Journal, was also helped by better home video revenues from movies such as "Ice Age: Dawn of the Dinosaurs" and strong performance from Fox News Channel and other cable channels.

Unemployment rises in most metro areas

WASHINGTON (AP) -- Unemployment rose in most cities and counties in December, signaling that companies remain reluctant to hire even as the economy recovers.

The unemployment rate rose in 306 of 372 metro areas, the Labor Department said Tuesday. The rate fell in 41 and was unchanged in 25. That's worse than November, when the rate fell in 170 areas, rose in only 154 and was unchanged in 48.

Joblessness topped 10 percent in 138 metro areas, up from 125 in November but below last year's peak of 144 areas in June.

The metro employment numbers aren't seasonally adjusted and can be volatile. Many of the increases were due to seasonal factors.

By The Associated Press

The Dow Jones industrial average rose 111.32, or 1.1 percent, to 10,296.85. The Dow's two-day climb of 229.52, or 2.3 percent, is the biggest point and percentage gain since Nov. 4-5.

The S&P 500 index rose 14.13, or 1.3 percent, to 1,103.32, while Nasdaq composite index advanced 18.86, or 0.9 percent, to 2,190.06.

Benchmark crude for March delivery rose $2.80 to settle at $77.23 a barrel on the New York Mercantile Exchange.

In other Nymex trading in March contracts, heating oil rose 7.68 cents to settle at $2.0317 a gallon, and gasoline added 8.58 cents to settle at $2.0179 a gallon. Natural gas rose 2 cents to settle at $5.454 per 1,000 cubic feet.

In London, Brent crude gained $2.95 to settle at $76.06 on the ICE futures exchange.

SOURCE: http://finance.yahoo.com/news/Business-apf-3892360522.html?x=0&.v=2