WALL STREET Stocks fall in latest session

NEW YORK (AP) Stock prices ended lower in the latest session, as investors awaited today's reading on second quarter growth.

The Dow fell 31 points to 10,467. The S&P slipped 4 and a-half points to 1,102. And the Nasdaq lost nearly 13 points to 2,252.

A number of companies yesterday reported better than expected corporate earnings. And the weekly jobless claims, released by the Labor Department, declined.

ECONOMY-DAY AHEAD GDP reading due

Washington (AP) The government today releases an estimate of gross domestic product. The broadest measure of the economy's output covers the second quarter. Economists think it will show growth slowed to a 2.5 percent annual rate, down from 2.7 percent in the first quarter and 5.6 percent in last year's fourth quarter.

Overall, economists expect the recovery to slow in the second half of this year and remain weak well into 2011, according to the latest AP Economy Survey. Despite their expectations, a majority of the 42 economists surveyed expect the economy to avoid falling back into a "double-dip" recession.

oil PRICES Oil prices rise

UNDATED (AP) Oil prices rose amid better-than-expected earnings from ExxonMobil, Southwest Airlines and big companies.

Together they may have bolstered hope for an improving economy.

Benchmark crude for September delivery rose $1.37 to settle at $78.36 a barrel on the New York Mercantile Exchange.

Oil also benefited from a slight decline in new unemployment claims and a weaker dollar. Commodities like oil are priced in dollars. A weaker dollar makes commodities more attractive to buyers holding foreign currency.

Oil traders have been closely watching the movement of the dollar, stock markets, earnings and economic data for clues about investor sentiment and the strength of the U.S. and global economies.

Japan-ECONOMY More Japan workers lose jobs, factory output falls

TOKYO (AP) Japan received a sobering reminder Friday of its fragile recovery: The jobless rate rose, deflation deepened, and factories made fewer cars and mobile phones.

The figures underscore ongoing weakness in the world's No. 2 economy even as Japanese corporations report stellar quarterly earnings.

With governments around the world phasing out stimulus spending, growth is expected to slow in Japan and in its major export markets. A strong yen also poses a risk for the country, as it reduces the value of profits brought back from overseas by exporters and makes their products less competitive on price.

NEW YORK FED-BAILOUT PROFITS New York Fed: Toxic assets from AIG gaining value

WASHINGTON (AP) Toxic assets the government bought during the bailouts of American International Group and Bear Stearns are finally gaining value.

That's according to the Federal Reserve Bank of New York which says the assets are now worth $69.1 billion about $2 billion more than they were during the previous quarter.

The government bought the mortgage-related investments while rescuing AIG and Bear Stearns.

The investments lost value so quickly that no one knew how much they were worth. Losses on them threatened to topple both companies.

The uncertainty eventually spread through global credit markets, sparking the financial crisis.

Buying the assets was a measure to restore confidence among banks that had business relationships with Bear and AIG.

The investments' recovery shows that private demand for them has increased despite the shaky economic recovery. The government is still expected to lose billions on AIG's $182 billion bailout.

LIFE INSURANCE PROBE NY AG announces probe of life insurance industry

NEW YORK (AP) New York Attorney General Andrew Cuomo says his office has opened a fraud investigation into the life insurance industry.

Cuomo says his office has served subpoenas on Prudential Financial and MetLife as part of its inquiry.

The attorney general's office is investigating whether insurers are profiting from grieving families by placing funds from life insurance policies into potentially risky accounts controlled by the companies. The office says it appears companies are earning interest from the accounts, while paying out low yields to beneficiaries.

MetLife says it had not received Cuomo's subpoena and could not comment on the investigation.

However, the company has issued a statement defending its so-called "retained asset accounts." It says they're "an attractive settlement option" and are "fully guaranteed" by Met Life's financial strength.

Prudential Financial says it will fully cooperate with the attorney general's investigation.

UAW-GM IPO UAW chief says GM to file paperwork in Aug. for IPO

DETROIT (AP) The head of the United Auto Workers says General Motors will file paperwork in mid-August to start the process of selling stock to the public.

President Bob King says the automaker will file the paperwork, called a registration statement, along with its second-quarter earnings. King made the announcement in a statement touting the union's cooperation in the turnaround of the U.S. auto industry.

GM confirms earnings would be released in mid-August, but a spokeswoman refused comment when the public stock offering paperwork would be filed with the U.S. Securities and Exchange Commission.

GOOGLE-China Google: Search engine blocked in mainland China

MOUNTAIN VIEW, Calif. (AP) Google says people in mainland China are being blocked from using its Internet search engine.

The company has posted a notice about the new barrier without any other details. A Google spokesman in the U.S. says he is still trying to gather information about the situation in China.

It's the latest twist in a high-profile showdown over Internet censorship pitting Google against China's communist government.

Google risked having its search engine cut off from the world's most populous country because it was no longer willing to let China's government control its search results. The two sides had appeared to reach a truce three weeks ago when China renewed Google's Internet license there.

WYLY BROS-INSIDER TRADING SEC accuses Dallas investors of insider trading

DALLAS (AP) The Securities and Exchange Commission has filed suit in New York against famed Dallas billionaire investors Sam and Charles Wyly, accusing them, their attorney and their stockbroker of insider trading.

The 78-page complaint filed in a Manhattan federal court alleges the Wyly brothers made $550 million in undisclosed gains over 13 years by trading in securities of companies on whose boards they served.

Also named as defendants in the lawsuit are the Wylys' investment attorney, Michael C. French of Dallas, and the stockbroker, Louis J. Schaufele (SHAH'-fuh-lee) III of Dallas.

The Wylys' defense attorney, William A. Brewer III of Dallas, calls the charges "without merit" and "appear to represent an after-the-fact justification for a misguided six-year investigation." Attorneys for French and Shaufele had no comment.

HOUSING SCAM-FLORIDA Florida mortgage firm settles federal charges

WASHINGTON (AP) Federal regulators say a Florida company they accused of misleading borrowers who were seeking to avoid foreclosure has agreed to repay the consumers $2.4 million to settle those charges.

The Federal Trade Commission says Clearwater, Fla.-based Home Assure promised borrowers mortgage relief in exchange for fees of up to $2,500 but delivered little or no help.

The company is now barred from selling mortgage and foreclosure relief services.

Consumer advocates and government officials say borrowers who need help should avoid for-profit outfits and instead contact nonprofit credit counselors who work with lenders at no charge.

The government has been pursuing numerous cases against companies it says prey on troubled homeowners.

HACKING CONFERENCE-ONLINE SECURITY Attacking the edges of secure Internet traffic

LAS VEGAS (AP) Researchers have uncovered new ways that criminals can spy on Internet users even if they're using secure connections to banks, online retailers or other sensitive Web sites.

The attacks demonstrated at the Black Hat conference in Las Vegas show how determined hackers can sniff around the edges of encrypted Internet traffic to pick up clues about what their targets are up to.

Two experts who spoke at the conference say the problem lies in the way Web browsers handle the encryption technology known as SSL, or Secure Sockets Layer. SSL is widely used on sites trafficking in sensitive information, such as credit card numbers, and its presence is shown as a padlock in the browser's address bar.

BROOKS BROTHERS-LEVIS Brooks Brothers, Levi's create pricey jeans collection

NEW YORK (AP) Two iconic American brands are pairing up. But you'll have to dig deep into your pocket to pay.

Brooks Brothers and Levi's have announced a new collection of men's jeans selling at the clothier's stores and online.

The pants formally called Levi's Jeans, made in the USA for Brooks Brothers come in a variety of finishes and washes and sell for $148. Company officials say the jeans will be made in Los Angeles using imported materials.

(Copyright 2010 by The Associated Press. All Rights Reserved.) APNP 07-30-10 0231CDT | save this article / add to your favorites list