BUSINESS BRIEFS
Gas, oil prices hit record around nation, in Hawaii
Associated Press
NEW YORK — Gas and oil prices pushed further into record high territory yesterday, with retail gas reaching a national average of $3.51 for the first time and crude nearing $120 as the dollar fell to a new low against the euro.
At the pump, the national average price of a gallon of regular gas rose 0.8 cent yesterday to $3.511, according to a survey of stations by AAA and the Oil Price Information Service. Prices for diesel — used to transport most food, industrial and commercial goods — also rose overnight to a new record of $4.204 a gallon.
Gas prices are nearly 66 cents higher than last year, when they peaked at a then-record of $3.23 in late May, and have prompted many analysts to raise their estimates of where gas is going to go.
In Hawai'i, gas prices yesterday hit a record high of $3.651 a gallon in Honolulu. Records also were set in Wailuku ($4.161) and Hilo ($3.851).
HOME SALES DROP 2% IN MARCH
WASHINGTON — Sales of existing homes fell in March, the seventh drop in the past eight months, as the spring sales season got off to a rocky start.
The median price of a home was down compared with a year ago, and some economists predicted home prices could keep falling for many more months given all the troubles weighing on housing, from a severe credit crunch to a rising tide of foreclosures.
The National Association of Realtors reported yesterday that sales of existing single-family homes and condominiums dropped by 2 percent in March to a seasonally adjusted annual rate of 4.93 million units.
The median price of a home sold last month was $200,700, a decline of 7.7 percent from a year ago and the seventh consecutive year-over-year price drop. It was also the second biggest decline following a record 8.4 percent drop in February. These records go back to 1999.
MCDONALD'S SEES 24% RISE IN PROFIT
CHICAGO — Strong international sales helped McDonald's Corp. post a 24 percent gain in first-quarter profit, but investors seemed nervous about the company's first monthly decline of U.S. same-store sales in five years.
The fast-food behemoth easily topped Wall Street forecasts yesterday when executives said it earned $946.1 million, or 81 cents per share, during the January-to-March period. That's up from $762.4 million, or 62 cents per share, during the same period last year.
Revenue climbed 6 percent to $5.6 billion. Analysts surveyed by Thomson Financial expected a quarterly profit of 70 cents per share on revenue of $5.4 billion.
But a 0.8 percent dip in U.S. comparable store figures for March — an important metric for retailers — kept McDonald's stock from rising yesterday, despite assurances from the Oak Brook-based fast-food chain that same-store sales were on track to rebound in April.
EURO AT A HIGH AGAINST DOLLAR
NEW YORK — The euro roared to another record high yesterday, crossing $1.60 for the first time ever after a pair of European Central Bank governors said high inflation may cause the bank to raise interest rates. The U.S. dollar also fell against the Japanese yen and the British pound.
The euro rose as high as $1.6018, more than a penny above the $1.5916 it bought late Monday.
The euro hit its last record of $1.5982 Thursday. It dropped back Friday after a Wall Street rally generated optimism that the worst of the U.S. credit crunch may be over, but the euro rose again Monday when Bank of America's first-quarter earnings fell short of expectations.
The dollar's slump is a boon for U.S. companies that rely heavily on exports, but it's the bane of travelers as worldwide inflation rises, airfares climb and prices rise in dollar terms for everything from beer in Munich to fine wine in Paris to gondola rides in Venice.
