Billionaire Stanford pleads not guilty to fraud

HOUSTON (AP) _ Texas billionaire R. Allen Stanford has pleaded not guilty to charges he swindled investors out of $7 billion as part of a massive investment scam. Stanford entered his plea during his arraignment Thursday in federal court in Houston. The financier was indicted last week by a grand jury on charges that his international banking empire was really just a colossal Ponzi scheme.

Bernanke says he didn't bully BofA to buy Merrill

WASHINGTON (AP) _ Federal Reserve Chairman Ben Bernanke told Congress Thursday he didn't pressure Bank of America into acquiring Merrill Lynch in a deal that ultimately cost taxpayers $20 billion. Bernanke told a House committee investigating the matter that he did not threaten action against Bank of America's CEO Kenneth Lewis or the bank's board members if they decided to abandon the takeover.

Stocks push higher, led by homebuilders, retailers

NEW YORK (AP) _ A handful of positive earnings reports are giving investors a reason to buy stocks. Gains in homebuilders, retailers and other consumer discretionary stocks pushed the market higher Thursday.

Jobless claims rise; GDP dips at lower pace in 1Q

WASHINGTON (AP) _ Despite persistent layoffs, the economy seems to be faring better than it was at the start of the year. The Labor Department said Thursday that new jobless claims jumped unexpectedly last week. And the number of people continuing to receive unemployment aid rose more than expected.

Boston Scientific names Ray Elliott CEO, president

NATICK, Mass. (AP) _ Boston Scientific Corp. said Thursday its board has named Ray Elliott as president and CEO to succeed Jim Tobin, who is retiring from the medical device maker. Elliott, 59, led Zimmer Holdings, which makes orthopedic implant and other products, for six years until retiring in May 2007. Elliott was also a member of the Boston Scientific board from 2007 until earlier this year.

Kimberly-Clark to cut 1,600 jobs

CHICAGO (AP) _ Household-products maker Kimberly-Clark Corp. said Thursday it plans to cut 1,600 jobs, or 3 percent of its global work force, as it slims down in the tough economy. The maker of Kleenex tissues, Huggies diapers and scores of other household items employs 53,000 people around the world. It plans to make the cuts primarily among salaried and non-production workers and executives said the company doesn't plan to close any plants.

Lennar posts slightly larger 2nd-quarter loss

MIAMI (AP) _ Shares of Lennar Corp. jumped Thursday morning after the homebuilder said orders for new homes jumped 63 percent from the first fiscal quarter and revenues topped expectations. That news eclipsed the company's slightly larger loss over the year-ago results. Lennar lost $125.2 million, or 76 cents a share, for the three months ended May 31. That compares with a loss of $120.9 million, or 76 cents a share in the second quarter last year.

AIG moves to spin off 2 units, reduce gov't debt

NEW YORK (AP) _ American International Group Inc. said Thursday it will reduce outstanding federal loans by $25 billion by giving the government a preferred stake in two units that will be spun off from the insurance giant. AIG is placing two life insurance subsidiaries _ American International Assurance Co. and American Life Insurance Co. _ into special purpose vehicles ahead of planned initial public offerings. SPVs are entities sometimes set up ahead of the spinoff or sale of a unit to separate its operations from the parent company.

Judge gives final OK to GM's bankruptcy financing

NEW YORK (AP) _ A bankruptcy judge ruled Thursday that General Motors Corp. can have access to its full $33.3 billion in bankruptcy financing. Judge Robert Gerber gave final approval to the financing after he had given preliminary approval earlier this month for GM to use $15 billion of the total.

Oil rises above $69 on Commerce Department report

NEW YORK (AP) _ Oil prices rose above $69 a barrel Thursday after the government said that the economy may be faring better than previously thought. In a revised reading on gross domestic product in the first quarter, the Commerce Department reported a 5.5 percent annualized decline from January to March, rather than the 5.7 percent it reported a month ago.