Wall Street put together a moderate advance in light post-Christmas trading Friday after the government threw a lifeline to General Motors’ financing arm, but gains were limited by dreary holiday shopping readings that dimmed the chance of a big year-end rally. The major indexes finished the week with losses, but the market nonetheless showed further signs of stability. The news from the retailing sector was far from surprising: Americans spent much less on gifts this season than last year, according to SpendingPulse.
Wal-Mart adds iPhone sales
Wal-Mart will start selling Apple’s popular iPhone on Sunday, the chain said, confirming earlier reports by employees. Bentonville-based Wal-Mart Stores Inc. will become the second independent retail chain after Best Buy Inc. to sell the phone. It is also sold at Apple Inc. and AT&T Inc. stores. Wal-Mart will sell the phones for $2 less than the regular price with a two-year contract: $197 for the 8-gigabyte model, or $297 for the 16-gigabyte model.
Treasury prices drift higher Friday
Treasury prices increased in subdued trading Friday on more evidence that the global economy continues to weaken. During a recession, investors tend to flock to Treasuries for their safety. Treasuries have also grown in popularity because of the fear of deflation, and the fact that the Federal Reserve is considering buying government debt to keep rates low. On Friday, there was little U.S. news, but Japan reported that its factory production in November fell by 8.1 percent.
Gas prices drop to four-year low
Retail gasoline prices tumbled Friday to the lowest level in nearly four years. And while crude futures rose, analysts believed it was a temporary pause in an extended, downward arc as the recession spreads. “We’re paying about a billion dollars per day less than we were in July” for gasoline, said Tom Kloza, publisher and chief oil analyst at Oil Price Information Service. Pump prices were driven down mostly because Americans are staying home more.
GMAC closer to becoming bank
The financing arm of General Motor’s Corp. still has to clear a final hurdle in its quest to become a bank holding company, even though it already received the Federal Reserve’s stamp of approval earlier this week. GMAC Financial Services LLC must complete a complicated debt-for-equity exchange. The effort to raise $30 billion in equity from bondholders was helped along late Wednesday by the Fed’s decision, making the ailing auto and home loan provider eligible to access part of the government’s $700 billion bank rescue fund.
From Herald news services
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