U.S. housing prices in May posted their first monthly gain in three years, with the S&P/Case-Shiller home-price index rising 0.5% from April. The index was down 17.1% from May of last year, but that’s less than analysts expected and the smallest year-over-year drop in nine months. Coming after yesterday’s surprising report on stronger new-home sales, the numbers afforded more hope that the housing slump may be ending, though virtually no one expects a rapid turnaround.

Part of the problem, of course, is that joblessness in the U.S. remains high and is still rising, and that boosts families’ anxieties. The Conference Board reports that its July consumer confidence index dropped to 46.6, a second consecutive fall, down from 49.3 in June. That’s still a large gain from the 25.3 bottom in February, but sagging confidence could lead consumers to scrimp on spending, hindering economic recovery.

Sources: Bloomberg

BofA Will Slim Down

Bank of America may shutter 10% of its 6,100 branches to cut costs and adjust to how its customers are actually doing their banking. CEO Ken Lewis discussed the strategy at a shareholders meeting last week, and a spokesman confirmed it today. Such a move would represent a turnabout by the bank, which has expanded rapidly to gain a coast-to-coast presence.

Sources: Los Angeles Times

IBM Makes Another Buy

The computer giant announced it’s buying software developer SPSS for $1.2 billion. That continues a steady flow of software deals in recent months. SPSS makes software that analyzes statistical data to make predictions. The offer represents a 42% premium over SPSS’s closing price on Monday.

Sources: Wall Street Journal

New Rules on Short-Selling

The Securities & Exchange Commission announced a pair of measures on July 27 intended to quell concerns that speculators are driving down share prices through improper short selling. The new measures will lead to greater disclosures but don’t impose any significant new restrictions on short selling, other than an extension of the existing ban on “naked” short selling. High-profile Wall Street executives have complained that speculators played an outsized role in crashing the stock values of several major financial services companies last year. Lawmakers have hammered the SEC to take more dramatic steps to fight short selling.

Sources: Washington Post, Financial Times

Apple Tries to Make Nice with Record Labels

Apple appears poised to plug at least two holes in its product lineup. Not only is the consumer-electronics maker working on a media-friendly tablet computer that would make it easier for users to listen to music, view photos, and watch video, it’s also in talks with music labels to include more content with sales of digital music at the iTunes online music store.

Sources: Financial Times, BusinessWeek

Delphi Board Approves Bankruptcy Exit Plan

The big auto parts supplier, which has been in bankruptcy for nearly four years, finally looks set to exit Chapter 11 after two previous attempts were scuttled by objections from lenders. The new plan, approved by Delphi’s board on July 27, will see ownership of the company split between lenders and its onetime parent, General Motors.

Source: New York Times

Verizon Profit Falls as Customers Disconnect

Verizon Communications Inc posted a lower quarterly profit and said it would cut 8,000 jobs in its wireline business, as weakness in wholesale and corporate segments overshadowed wireless growth. Though the company saw growth in broadband and wireless customers, a decline in traditional fixed-line voice revenues hurt the bottom line.

Sources: Reuters, BusinessWeek

Bill Gates’ Fix for India’s Ills: Technology

It may seem a bit far-fetched and naive, but Bill Gates thinks he has the solutions for India’s biggest challenges. How can the country solve its health-care problems, the nightmare of distributing vaccines, and the shortage of doctors? Technology, he says. Alleviate poverty and streamline public distribution of food rations? Try technology, he suggests. How about providing the urban poor with jobs? You guessed it: technology.

Source: BusinessWeek

Italian Group Bids for Christian Lacroix

An Italian family with a prominent position in retailing appeared on July 27 to be the front-runner to acquire Christian Lacroix, the French fashion house that sought protection from creditors in May. A spokeswoman for Régis Valliot, the court-appointed administrator for Lacroix, said on Monday that the Borletti family, which has stakes in both the Printemps and Rinascente department stores, had made “a serious offer.”

Source: New York Times

Avon Calling—For More Sales Reps

Direct sellers such as Avon, Mary Kay, and Tupperware are actively recruiting sales representatives by offering the prospect of extra income during uncertain times. Though consumer demand is falling, the companies are trying to take advantage of the downturn to sign up extra salespeople. In Britain, door-to-door selling is on the upswing as laid-off workers look for new sources of income.

Sources: Washington Post, BusinessWeek