WASHINGTON — The economy is finally showing signs of stabilizing in some regions of the country — especially in parts of the Northeast and Midwest — bolstering hopes of a broader-based recovery this year.

A Federal Reserve snapshot of economic conditions issued yesterday found that most of the Fed's 12 regions indicated either that the recession was easing or that economic activity had "begun to stabilize.

The report raised hopes that the recession, which started in December 2007, may be drawing to a close.

CONOCOPHILLIPS EARNINGS FALL 76%

HOUSTON — ConocoPhillips became the second oil major in as many days to report plunging profits for the second quarter, saying yesterday its earnings fell 76 percent because of the year-over-year fall in oil and gas prices.

The dismal outcome for the nation's third-largest oil company followed BP PLC's report Tuesday of earnings 53 percent below the April-June period a year ago, when oil prices were at triple-digit levels.

TRUSTEE OF ASSETS SUES MADOFF'S WIFE

NEW YORK — The trustee overseeing the liquidation of Bernard Madoff's assets sued the disgraced money manager's wife yesterday, asking for nearly $45 million that he says was spent on "a life of splendor."

Trustee Irving H. Picard spelled out his claims in a lawsuit against Ruth Madoff in U.S. Bankruptcy Court in Manhattan. Ruth Madoff several weeks ago moved out of a $7 million Manhattan penthouse where she and her husband had lived during their 49-year marriage.