Business Briefs

Stocks gain after report eases inflation concerns

NEW YORK — Stocks rose for a second straight day Thursday, with investors assuaged by better-than-expected economic data and a pullback in oil prices.

The Philadelphia Federal Reserve said regional manufacturing activity is contracting in May at a much slower pace than in April, while Federal Reserve Chairman Ben Bernanke said in a speech he is "encouraged" by recent efforts by banks to raise cash.

Oil futures ended a whipsaw session, falling 10 cents to settle at $124.12 a barrel after rising as high as $126.64 earlier in the session, and falling as low as $120.75. Oil prices reached a trading record of $126.98 a barrel Tuesday.

The Dow Jones industrial average rose 94.28, or 0.73 percent, to 12,992.66. The S&P 500 gained 14.91, or 1.06 percent, to 1,423.57. The Nasdaq composite index rose 37.03, or 1.48 percent, to 2,533.73.

Bank of America's chief sees mergers on horizon

CHARLOTTE — The head of Bank of America, the largest U.S. consumer bank, says the economic downturn will speed consolidation in the banking industry.

Speaking Thursday to students in New York, Ken Lewis said U.S. financial services firms are likely to come under pressure to combine as they emerge from the credit crunch and mortgage market turmoil. Lewis said such moves will provide more "long-term diversity and strength for the future."

Mortgage rates mostly edged lower this week

WASHINGTON — Rates on 30-year mortgages slipped this week, welcome news to would-be home buyers.

Federal National Mortgage Corp., known as Freddie Mac, said Thursday that 30-year fixed-rate home loans averaged 6.01 percent, down from 6.05 percent last week.

Five-year adjustable-rate loans fell to 5.57 percent, from 5.67 percent; one-year ARMs fell to 5.18 percent from 5.29 percent. Rates on 15-year fixed-rate mortgages held steady at 5.60 percent.

Penney's profit halved amid 'difficult' economy

DALLAS — Midmarket department store retailer J.C. Penney said Thursday that its first-quarter profits were halved and predicted "difficult" conditions for the year as consumers pull back on spending. Net income fell more than 49 percent to $120 million. Sales were down 5 percent to $4.13 billion.

Oilman Pickens plans to develop huge wind farm

HARTFORD, Conn. — Oilman T. Boone Pickens is planning a mammoth wind farm in the Texas Panhandle in a bet that Congress will extend a tax credit critical to the environmentally friendly industry.

Pickens' Mesa Power is buying hundreds of wind turbines from General Electric with plans to eventually cover 400,000 acres and generate enough power for more than 1.3 million homes.

Steelmaker Nucor mulls possible iron plant sites

NEW ORLEANS — Steelmaker Nucor Corp. said it is looking at a site in Louisiana and undisclosed foreign locations for a $2 billion iron-making plant that would create 500 permanent jobs.

Nucor, which has a large steel mill in Berkeley County, said the 380-acre tract near Convent is the only U.S. site being considered.

No time frame was given for a decision.