Business Briefs

Stocks surge after Fed weighs in

NEW YORK -- Stocks bounded higher Wednesday after the Federal Reserve ended a two-day meeting by saying the economy appears to be "leveling out" rather than shrinking at a slower rate. The Fed's more positive take on the economy than it had in June wasn't surprising, but it still bolstered hopes for a recovery.

Wednesday's advance energized the summer rally after it stalled on Monday and Tuesday. Major indexes jumped more than 1 percent.

Financial and technology shares posted some of the strongest gains after a ratings upgrade and profit reports provided evidence of a rebound. The advance was itself adding to bank and insurance stock gains, meaning their investment portfolios are surging.

U.S. trade deficit increased in June

WASHINGTON -- The U.S. trade deficit edged up in June as imports rose for the first time in 11 months and exports rose for the second straight month, confirming that the global recession is easing its grip.

The first back-to-back gains for exports in a year were especially good news for America's manufacturing sector. Those companies benefited from higher shipments of semiconductors, aircraft and telecommunications equipment.

The Commerce Department said the deficit rose 4 percent to $27 billion, from May's $26 billion. The May imbalance had been the lowest deficit in nearly a decade.

Swiss, U.S. cut deal in bank tax query

MIAMI -- The Swiss and U.S. governments announced a deal Wednesday to settle American demands for the identities of suspected tax dodgers, despite Switzerland's vaunted bank secrecy. But they kept all details under wraps, including how many of the 52,000 names sought by the IRS from banking giant UBS AG will be revealed.

Depending on the scale of the deal, it could be a new blow to Switzerland's reputation as a safe place to hide assets from the tax man back home.

Switzerland has long been under pressure from European neighbors and the United States to open its bank records for foreign tax authorities.

Macy's net slides but bests forecasts

NEW YORK -- Macy's Inc. boosted its profit outlook after reporting that its second-quarter net income beat expectations because it benefited from streamlining efforts.

The department store operator said it doesn't expect consumer spending to improve much in the critical months ahead. It earned $7 million in the quarter that ended Aug. 1. That compares with $73 million in same period last year.

Revenue was $5.16 billion, down almost 10 percent from a year ago and slightly below analysts' forecasts. Sales at stores open at least a year, fell 9.5 percent in July compared with a year earlier.

Home prices edge up in 2nd quarter

WASHINGTON -- The National Association of Realtors said Wednesday the median U.S. home sale price in the second quarter was $174,100, up 4 percent from the first quarter, but still almost 16 percent below a year ago. Prices were still down from a year ago in 129 out of 155 metropolitan areas the group tracks.