U.S. markets post small gains Thursday
NEW YORK, May 22 (UPI) -- U.S. stock indexes showed narrow gains Thursday after Ford Motor Co. revised its business plan and its expectations.
With gas prices rising quickly, Ford announced it would step up production of smaller cars and scale back the on the more profitable trucks and larger cars.
By close Thursday, the Dow Jones industrial average was up 24.43 points or 0.19 percent to 12,625.62. The Standard and Poor's 500 index gained 3.64 points or 0.26 percent to 1,394.35. The Nasdaq composite index added 16.31 points or 0.67 percent to 2,464.58.
On the New York Stock Exchange, 1,713 stocks advanced and 1,395 declined on a volume of 1.207 billion shares traded.
The 10-year U.S. Treasury note fell 30/32 to yield 3.919 percent.
The dollar rose. The euro traded at $1.5719 from Wednesday's $1.579, while the dollar traded at 104.13 yen from Wednesday's 103.02 yen.
In Tokyo, the Nikkei index gained 52.16 points to 13,978.46, up 0.37 percent.
In London, the FTSE 100 index lot 16.50 points to 6,181.60, off 0.27 percent.
Ford revises pledge of profits
DEARBORN, Mich., May 22 (UPI) -- Ford Motor Co. said it could not guarantee a profitable year in 2008 as U.S. consumers are backing away from its more profitable large cars and trucks.
In a conference call with reporters, Chief Executive Officer Allan Mulally said the company's job buy-out program would be offered to workers at more plants and Ford was considering lay-offs, The Detroit News reported.
Already on track to cut $5 billion from operating costs this year, the Dearborn, Mich., carmaker said it would accelerate the switch to fuel-efficient vehicles by increasing production of the Focus, Fusion, Edge and Escape. It would also increase output for the Mercury Milan and Mariner and the Lincoln MKZ and Lincoln MKX, the News reported.
"The challenge affecting the entire industry is the accelerating shift in consumer demand away from large trucks and SUVs to smaller cars and crossovers," Mulally said.
Ford had previously pledged it would make a profit in 2008.
"Overall, we expect to be about break-even company-wide in 2009 -- with continued strong results in Europe and South America," Mulally said.
Canadian home renovations climbed in 2007
OTTAWA, May 22 (UPI) -- Canadians spent $19.7 billion on home renovations in 2007, up by some $2 billion from a year earlier, a federal agency reported Thursday.
A statement from the Canada Mortgage and Housing Corporation said the figures were drawn from surveys in 10 urban centers across the country.
The report said the average cost of renovations was $12,800 and just 46 percent of respondents said the work was done within budget, while 37 percent said they experienced cost overruns.
As to who did the work, 31 percent said it was done by the homeowner, 26 percent said contractors were hired to do part of the job and 41 percent said contractors did the whole renovation, the CMHC said.
The corporation said the majority of upgrades -- 59 percent -- were done to update, add value or to prepare to sell, while 27 percent of homeowners said the work was necessary for basic maintenance.
Microsoft announces ad rebate plan
REDMOND, Wash., May 22 (UPI) -- Software giant Microsoft Corp. announced it would partner with U.S. retailers to offer sales-generated rebates for Internet customers.
The announcement means a break from traditional customer rebates, which have historically come from the manufacturer or the retailer.
In the new program, "Microsoft Live Search," Microsoft, as the publisher of the Internet ads, would be offering a portion of its ad revenues to generate rebates.
Microsoft Chairman Bill Gates introduced the plan Wednesday at a meeting of Microsoft advertisers.
"Our goal is to make Live Search the most rewarding commercial destination on the Web," Gates said.
"We believe this is a major development in the evolution of search marketing," said WPP Chief Executive Officer Martin Sorrell.
Microsoft has lined up major retailers including WPP, Abe's of Maine, B&H, Circuit City, Backcountry.com, Foot Locker, Barnes and Noble, The Home Depot, OfficeMax and PetSmart to participate in the venture, the statement said.
The initiative is a push to increase Microsoft's advertising presence on the Internet, which is expected to become a $335 billion a year retail outlet by 2012.
The announcement also comes within weeks of Microsoft's failed $47.5 billion bid to purchase search engine Yahoo! Inc.
