Update on the latest business

FINANCIAL MARKETS

Stocks rise

NEW YORK (AP) — Stocks are higher in midday trading on Wall Street, with technology and energy stocks leading the way.

Cisco Systems was the biggest gainer in the technology sector after reporting better-than-expected earnings. Energy stocks advanced as the price of oil rebounded following two days of heavy losses.

Orbitz soared 21 percent after rival online travel site Expedia said it would buy the company for $1.3 billion. Expedia jumped 12 percent.

European indexes rose after the Ukraine cease-fire agreement was announced. Investors were also hopeful that Greece would be able to reach a deal on its debts with its creditors.

UNEMPLOYMENT BENEFITS

Applications for US jobless aid rose to 304,000 last week

WASHINGTON (AP) — The number of Americans seeking unemployment benefits jumped last week, though it is still at relatively low levels pointing to healthy hiring.

The Labor Department says applications rose 25,000 to a seasonally adjusted 304,000. The increase comes two weeks after applications plunged by 42,000. That drop likely reflected seasonal volatility stemming from the end of the holiday shopping season and the Martin Luther King Jr. holiday, when state unemployment offices were closed.

The four-week average, which smooths out the volatility, fell to 289,750. That is down 14 percent from a year ago.

The average has been near or below 300,000 since September, a historically low level that points to strong hiring. Employers have added more than a million jobs in the past three months, the fastest pace in 17 years.

BUSINESS INVENTORIES

US business stockpiles edge up 0.1 percent

WASHINGTON (AP) — U.S. businesses increased their stockpiles in December at the slowest pace since August, while sales fell by the largest amount in nearly a year.

The Commerce Department says stockpiles rose a slight 0.1 percent in December following a modest 0.2 percent gain in November. Sales dropped 0.9 percent in December after a 0.4 percent fall in November. It was the fifth consecutive month that sales have decreased, and it was the biggest drop since a 1.3 percent decline in January 2014.

The deceleration in inventory growth in recent months could be a reaction to the weakness in sales, with businesses cutting back on restocking amid falling demand. Economists, however, remain optimistic that sales will rebound in 2015 and businesses will respond by boosting their inventories.

MORTGAGE RATES

Average US rate on 30-year mortgage rises to 3.69 percent

WASHINGTON (AP) — Average long-term U.S. mortgage rates rose this week yet remained near historically low levels.

Mortgage company Freddie Mac says the nationwide average for a 30-year mortgage jumped to 3.69 percent from 3.59 percent last week. The average rate is still at its lowest level since May 2013.

The rate for the 15-year loan, a popular choice for people who are refinancing, increased to 2.99 percent from 2.92 percent last week.

A year ago, the average 30-year mortgage stood at 4.28 percent and the 15-year mortgage at 3.33 percent. Mortgage rates have remained low even though the Federal Reserve in October ended its monthly bond purchases, which were meant to hold down long-term rates.

RETAIL SALES

Cheaper gas lowers US retail sales; spending up elsewhere

WASHINGTON (AP) — U.S. retail sales fell sharply last month as gas prices plummeted and auto sales slowed. But excluding those volatile categories, Americans stepped up their spending a bit.

The Commerce Department says retail sales dropped 0.8 percent in January, following a 0.9 percent decline in December. The dollar value of gas station sales plunged 9.3 percent, the largest drop in six years. Auto dealer sales also fell for the second straight month.

Outside those categories, sales increased 0.2 percent after a flat reading in December.

The modest gain suggests Americans are still cautious about spending their windfall from lower gas prices, which economists expect will save the typical family $750 this year. Cheaper gas and strong hiring have sent consumer confidence to seven-year highs, a sign spending should pick up soon.

AUTO SHOW-SUVS

Booming SUV market gets new entries

DETROIT (AP) — SUV sales are growing at a rapid pace — and automakers hope to cash in on the boom with some updated models at this year’s Chicago Auto Show.

General Motors is taking the wraps off an updated Chevrolet Equinox small SUV. Kia is showing the Trail’ster concept. It’s an off-road version of the Kia Soul wagon that Kia says could be produced in the near future. Honda will show a new version of the eight-passenger Pilot.

One in three new vehicles Americans bought last year was an SUV. SUV sales rose 12 percent to more than 5.5 million, outpacing car sales.

Analysts say strong demand is likely to continue this year thanks to low gas prices and enticing new models.

The Chicago Auto Show opens to the public Saturday.

GENERAL MOTORS-ELECTRIC CAR

GM to build 200-mile electric car at Michigan plant

DETROIT (AP) — General Motors says it will build an electric car with a 200-mile range at a factory north of Detroit.

The small hatchback will be based on the Chevrolet Bolt concept car shown at the Detroit auto show last month. GM has said it will be built in 2017 at a factory in Orion (ORE-eee-UN) Township, Michigan. It will cost around $37,500 before a $7,500 federal tax credit.

The car is designed to compete with Silicon Valley automaker Tesla Motors, which plans to start selling a 200-mile, $30,000 car about the same time.

GM says it hasn’t determined how many jobs the new car will bring to the factory, which has about 1,700 hourly workers.

NYPD-SMART CARS

NYPD testing out Smart Cars

NEW YORK (AP) — The NYPD plans to replace its three-wheeled scooters with Smart cars.

Police Commissioner William Bratton says the department is testing out the mini vehicles.

He says they’re more economical than the scooters.

The Daily News says the agency has acquired nine of the single-passenger cars for the pilot program and currently is trying one out in Central Park.

The Smart cars would be used in NYPD’s parking and school safety divisions and at precincts across the city.

FACEBOOK-AFTERLIFE

Now someone can manage your Facebook account after you die

NEW YORK (AP) — Facebook is giving more options to decide what happens to users’ accounts after they die.

The world’s biggest online social network said Thursday it will now let users pick someone who can manage their account after they pass away. Previously, the accounts were “memorialized” after death, or locked so that no one could log in.

Beginning in the U.S., Facebook says users can choose a “legacy contact” to post on their page after they die, respond to new friend requests and update their profile picture and cover photo. Users can also have their accounts deleted instead.

Facebook also ensures that the account of a user who died doesn’t show up as a “suggested friend” or in other ways that could upset the person’s loved ones.

EXPEDIA-ORBITZ

Expedia buying Orbitz for about $1.33 billion

BELLEVUE, Wash. (AP) — Expedia is buying rival online travel site Orbitz for approximately $1.33 billion. The deal comes less than a month after Expedia announced the $280 million acquisition of another rival, Travelocity.

Orbitz owns CheapTickets, HotelClub. Expedia owns Hotels.com and Hotwire.

Expedia, based in Bellevue, Washington, will pay $12 per share, a 25 percent premium to the Orbitz’ closing price of $9.62 Wednesday.

The boards of both companies have approved the deal, but it still requires a nod from Orbitz shareholders.

Shares of Orbitz Worldwide Inc., based in Chicago, are up more than 23 percent in premarket trading and Expedia is up 5 percent.

AMERICAN EXPRESS-COSTCO AGREEMENT

American Express, Costco to end US exclusivity deal

UNDATED (AP) — American Express is ending next year a 16-year-old agreement with Costco Wholesale that calls for the exclusive use of its cards at the retailer’s U.S. stores.

The charge card company says it hasn’t been able to agree with Costco on renewal terms that make economic sense for American Express. The deal lasts until March 31, 2016.

American Express said Thursday morning that it charges Costco a significantly lower rate than the overall average it imposes on other retailers as part of the agreement.

A company spokeswoman says a similar agreement involving Costco’s Canadian stores ended last year.

A Costco Wholesale Corp. representative did not immediately return a call from The Associated Press seeking comment.

GREECE-BAILOUT

Greece, eurozone agree to technical talks on bailout

BRUSSELS (AP) — Greece and its creditors in the eurozone have agreed to launch technical discussions on Athens’ request to lighten the country’s bailout ahead of another finance ministers’ meeting Monday.

Confirmation of the discussions follows a conversation Thursday between Greek Prime Minster Alexis Tsipras and Jeroen Dijsselbloem, the head of the eurogroup of finance ministers, at a summit of EU leaders in Brussels.

Simone Boitelle, spokesperson to Dijsselbloem, says the two men have asked representatives from the European Commission, European Central Bank, International Monetary Fund and Greek government to find if there’s “common ground” between Greece’s current bailout and the government’s proposals.

She says the discussions will inform Monday’s meeting. Wednesday’s gathering of eurozone ministers ended with no breakthrough.

UKRAINE IMF

IMF earmarks $17.6 billion for Ukraine reforms

BRUSSELS (AP) — The International Monetary Fund has agreed to provide Ukraine with 15.5 billion euros ($17.6 billion) to help support economic reforms.

IMF Managing Director Christine Lagarde said Thursday that “this new program offers an important opportunity for Ukraine to move its economy forward at a critical moment in the country’s history.”

The announcement, made in Brussels, came as the leaders of Russia, Ukraine, France and Germany continued marathon overnight talks, struggling to clinch a deal to end fighting in eastern Ukraine.

Largarde says the reform plan “is an ambitious program, it is a tough program, and it is not without risk. But it is also a realistic program and its effective implementation — after consideration and approval by our executive board — can represent a turning point for Ukraine.”

EUROPE-TAX PROBE

EU sets up committee to probe tax deals

BRUSSELS (AP) — The European Union has set up a special committee to look into national tax rules following allegations that Luxembourg had agreed on sweet deals for big multinationals.

The committee of European parliamentarians will examine a cache of leaked documents on Luxembourg’s deals as well as other incidents of tax avoidance and evasion around Europe involving companies from around the world.

The EU legislature approved the creation of the committee on Thursday by a 612-19 margin with 23 abstentions.

The committee will be similar to one set up to probe prisoner rendition allegations against the CIA and will have the power to propose legislation to address any issues it uncovers.

The EU has pledged to crack down on tax rulings favoring big firms.

BAGGAGE HANDLERS-JFK

Baggage handlers protest outside JFK Airport’s Terminal 7

NEW YORK (AP) — Baggage handlers have demonstrated outside the British Airways terminal at John F. Kennedy Airport to protest what they called unfair labor practices.

Amity Paye, spokeswoman for the Service Employees International Union, says the workers set up a picket line at 6 a.m. Thursday.

She says the one day-protest began with about 30 workers employed by Aviation Safeguards.

The company’s CEO, Craig Coy, says only a few workers were involved. He says there were no baggage or flight disruptions.

The Port Authority and British Airways confirmed that operations were normal.

Paye says the baggage handlers are fighting for the right to unionize, higher wages and benefits.

Coy said the company values and respects its workers.

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