Business Briefs

Gustav, Fed report leave stocks mixed

NEW YORK — Wall Street ended mixed Tuesday as concerns about Hurricane Gustav boosted oil prices and offset a better-than-expected reading on consumer confidence. Federal Reserve comments on inflation added to the uneasiness.

The Fed's release of minutes from its Aug. 5 meeting showed the central bank is concerned about creeping inflation and expected it would need to raise interest rates to try to contain rising prices.

At that meeting, policymakers held rates steady because "American businesses and consumers were facing elevated borrowing costs and reduced credit availability." However, the Fed also said in the minutes that it was unclear when a rate increase might come.

S.C. housing sales off sharply in July

Homes sales in South Carolina skidded 23 percent in July to 29,520 transactions compared to the same month last year, according to figures released Tuesday by the South Carolina Association of Realtors.

The statewide median price fell 7.5 percent to $155,200, compared to July 2007.

Nick Kremydas, the group's chief executive, said the market might be "near the bottom. Housing inventory is shrinking and prices are leveling off, which indicates that a rebound is just around the corner, perhaps as early as the first quarter of 2009."

Data: Profits down 86% at U.S. banks

WASHINGTON — U.S. banking industry profits plunged by 86 percent to $5 billion in the second quarter, and the number of troubled lenders jumped to the highest level in five years, as slumps in the housing and credit markets continued.

Federal Deposit Insurance Corp. data released Tuesday showed the nation's roughly 8,500 banks and thrifts also set aside a record $50.2 billion to cover losses from bad loans in the second quarter. The FDIC said 117 banks and thrifts were considered to be in trouble in the quarter.

Commodity prices upend pork profits

Smithfield, Va. — Smithfield Foods swung to a loss in its fiscal first quarter as high commodity costs hurt the nation's largest pork producer and processor.

Costs for ingredients such as corn and soybean meal were up more than 33 percent in the quarter, and the cost of raising hogs soared 25 percent. Overall, Smithfield said it lost $12.6 million in the period, down from a profit of $54.6 million a year earlier. Sales rose 20 percent to $3.14 billion.

Coffee makers recalled by Sears

NEW YORK — Sears Holding Corp. recalled 145,000 Kenmore coffee makers because the wiring can overheat and cause fires or burns, the U.S. Consumer Product Safety Commission said Tuesday.

The recall includes 12-cup Kenmore and Kenmore Elite coffee makers sold through Sears, Sears Hardware, Kmart and online from August 2007 through April.

There have been 20 reports of coffee makers overheating, including 12 fires, but no injuries. Sears advised consumers to stop using the machines and return them to stores for free replacements. Call 800-978-7615 for more information.