Stocks market gains ahead of Fed statement

NEW YORK (AP) _ A surprise jump in orders for big-ticket manufactured items is boosting stocks ahead of the Federal Reserve's decision on interest rates. Investors were upbeat about a Commerce Department report Wednesday saying durable goods orders rose 1.8 percent in May. Economists surveyed by Thomson Reuters had anticipated a drop.

Citi boosting salaries to offset lower bonuses

NEW YORK (AP) _ Citigroup Inc. is increasing the base salaries of many of its employees _ reportedly by as much as 50 percent for some workers _ as it restructures its compensation program amid new restrictions on bonus payments. The higher salaries are not the equivalent of annual raises because bonuses are being lowered, according to a person familiar with the matter who requested anonymity because the plans have not been made public.

SEC pitches tightened rules for money-market funds

WASHINGTON (AP) _ Federal regulators on Wednesday proposed tightened rules for money-market mutual funds that will require them to hold a reserve of assets that could be easily sold and to invest only in the highest quality securities. The Securities and Exchange Commission action came after a $60 billion money fund "broke the buck," exposing investors to losses that could ultimately reach about 8 cents on the dollar. The value of the Primary Reserve Fund's assets in September fell to 97 cents per investor dollar _ below the dollar-for-dollar level needed for full repayment.

Durable goods orders up in May; new home sales dip

WASHINGTON (AP) _ Orders to U.S. factories for manufactured goods from computers to aircraft surged in May for a second straight month. And a gauge of business investment rose last month by the most in nearly five years. Together, the data Wednesday signal that the recession could be at or near a bottom. Yet new-home sales fell unexpectedly last month. Taken together, economists said the reports painted a picture of an economy no longer in free-fall, but still unable to mount a sustained recovery from the longest recession since World War II.

Weak economy will zap holiday trips, AAA says

COLUMBUS, Ohio (AP) _ Economic instability will trump cheaper gas this July Fourth holiday, with more people choosing to stay home rather than hit the road, according to a survey released Wednesday Auto club AAA said it expects 37.1 million travelers _ 12 percent of the U.S. population _ to take a trip of 50 miles or more from home this year, a decrease of 1.9 percent from last year.

Fed mulls tweaks to economic revival programs

WASHINGTON (AP) _ With signs the economy is improving but still fragile, Federal Reserve policymakers are considering whether some programs intended to drive down rates on mortgages and other consumer debt should be slowed down. Most economists predict that Fed Chairman Ben Bernanke and his colleagues, who resumed meeting Wednesday morning, won't launch any bold new efforts at the end of their two-day gathering.

China's Sinopec to acquire Addax Petroleum

CALGARY, Alberta (AP) _ Chinese refiner Sinopec agreed to acquire oil and gas exploration company Addax Petroleum Corp. in a deal valued at $8.27 billion Canadian (US$7.2 billion), gaining access to reserves in West Africa and the Middle East. The wholly owned subsidiary of China Petrochemical Corp. will pay $52.80 Canadian (US$46.17) per share.

Oil falls ahead of Federal Reserve statement

NEW YORK (AP) _ Oil prices fell Wednesday after the government reported that unused gasoline in storage has grown by millions of barrels. The Federal Reserve will release a statement on interest rates later in the day, which could have an even greater impact on energy prices with such a large number of investors using crude as a hedge against inflation.

Rite Aid pares 1Q loss and reduces spending

NEW YORK (AP) _ Drugstore operator Rite Aid Corp. said Wednesday it narrowed its fiscal first-quarter loss by closing stores and trimming costs, and making progress as it works to eliminate $6 billion in debt. The loss of $98.4 million, or 11 cents per share, came in under Wall Street estimates of 13 cents per share. A year ago, Rite Aid posted a loss of $156.6 million, or 20 cents per share. While the company now expects a slightly larger loss in fiscal 2010, Rite Aid was able to refinance loans that were due to expire, improving its financial position.

Senator: Use of faulty insurance data 'pervasive'

WASHINGTON (AP) _ Congressional investigators said Wednesday two-thirds of the U.S. health insurance industry used a faulty database that overcharged patients for seeing doctors outside their insurance network, costing Americans billions of dollars in inflated medical bills. The flawed database _ known as Ingenix _ is owned by health insurer UnitedHealth, which agreed in January to pay $350 million to settle allegations that it deliberately kept rates low to underpay doctors, driving up out-of-pocket expenses for patients.