Optimism from Intel Corp.’s latest earnings and positive data on credit card delinquencies sent U.S. share prices surging on July 15, with the Dow Jones and Nasdaq indices each gaining more than 3%. The S&P 500 index climbed 2.9%. The buying was centered on technology and financial stocks after chipmaker Intel issued a better-than-expected revenue outlook and Goldman Sachs blew away income forecasts on Tuesday. Stocks of credit card companies rose after investors learned that delinquency rates had dropped in June for many of the largest players. Other analysts warned that the economy’s fundamentals may not support continued rallies.

Source: Wall Street Journal

Fed Viewed U.S. Economy as Weak in June

Policymakers at the Federal Reserve considered the U.S. economy “weak” and “vulnerable to further adverse shocks” in June, although they opted unanimously against buying further government debt and mortgages. The consensus view was that the outcome of further debt-buying efforts was uncertain, according to minutes of the Federal Open Market Committee’s June 23-24 deliberations, which were released on Wednesday.

Source: Bloomberg

American Airlines: No Reason to Think Travel Market Improving

The second-largest U.S. airline, American Airlines, lost slightly less money than Wall Street expected in the second quarter but executives said the rest of 2009 appears to be bleak and there’s no reason to think the industry’s deep capacity cuts will be temporary. The carrier’s parent, AMR Corp., led off the industry’s reporting on July 15 with a $319 million loss, not counting special items. The per-share loss of $1.14 was 7 cents better than analysts had predicted, mainly because of a steep drop in crude oil from a year ago. AMR’s sales fell 21%, to $4.89 billion.

Source: BusinessWeek, Bloomberg, Dallas Morning News

GM’s Wagoner Pockets $8.6 Million Retirement Package

Former General Motors Chairman and Chief Executive Rick Wagoner, who was ousted in March, will retire in August with a package worth $8.6 million in the first five years, according to the struggling automaker. Wagoner’s retirement will take effect on Aug. 1 and he will draw sharply reduced benefits after GM’s federally financed bankruptcy, GM said in a statement.

Source: Reuters

June U.S. Retail Sales Rise Marginally

Higher U.S. gas prices helped to boost the country’s June retail sales 0.6% compared with the previous month, according to government data. Economists worry, though, that rising fuel costs will slow consumers’ discretionary spending in the mid- to long-term.

Source: Washington Post

Apple Shuts Palm Pre Out of New iTunes Version

Apple took aim on Wednesday at the rival Palm Pre with a new version of its iTunes software that locks out Pre users. The new version, iTunes 8.2.1, “disables devices falsely pretending to be iPods, including the Palm Pre,” an Apple spokeswoman told BusinessWeek. Palm officials noted that iTunes 8.2 works fine with the Pre, and noted other third-party applications to allow synching between the two platforms.

Source: BusinessWeek

Paulson to Defend Actions in BofA-Merrill Lynch Deal

Former Treasury Secretary Hank Paulson threatened to sack Bank of America’s CEO and board if they sough to scupper the bank’s agreement to acquire Merrill Lynch in December. A House oversight committee is investigating the deal, which got $20 billion in U.S. funds to secure. Paulson scheduled to testify on July 16.

Source: Financial Times

U.S. Mulls Emergency Loan for CIT

U.S. officials may give struggling financial firm CIT Group a temporary loan to help the lender avoid collapse, according to a source familiar with regulators’ thinking. The temporary loan is one option being considered to give CIT time to strengthen its balance sheet by raising additional capital through debt or equity. CIT shares were halted late Wednesday in New York Stock Exchange trading, pending a news announcement.

Source: Reuters

CalPERS Sues Ratings Agencies

The California Public Employees’ Retirement System (CalPERS), the country’s largest pension fund, has filed a lawsuit against the three biggest credit-ratings agencies, accusing them of issuing “wildly inaccurate and unreasonably high” ratings on structured investment vehicles that saddled the California pension fund with at least hundreds of millions of dollars in losses. The suit will add continued scrutiny over Moody’s, Standard & Poor’s, Fitch Ratings’ role in the financial crisis.

Source: Wall Street Journal

Lehman Clients to Get Money Back

Former clients of Lehman Brothers International, the overseas division of the defunct investment bank, may finally begin to receive some of their assets by early next year. They had their accounts frozen since the Wall Street firm filed for bankruptcy last September. Creditors have reached an agreement to expedite the repayment of about $32 billion of client assets by 2010.

Source: New York Times