Business in brief: S&P 500 index hits four digits
NEW YORK – The Standard & Poor’s 500 index is four digits again.
The widely used stock market measure broke above 1,000 on Monday for the first time in nine months as reports on manufacturing, construction and banking sent investors more signals that the economy is gathering strength. The S&P is used as a benchmark for many mutual funds.
Bank of America to pay SEC fines
WASHINGTON – Bank of America Corp. has agreed to pay a $33 million penalty to settle government charges that it misled investors about Merrill Lynch’s plans to pay bonuses to its executives, regulators said Monday.
In seeking approval to buy Merrill, Bank of America told investors that Merrill would not pay year-end bonuses without Bank of America’s consent. But the Securities and Exchange Commission said Bank of America had authorized New York-based Merrill to pay up to $5.8 billion in bonuses.
Manufacturing up, report says
NEW YORK – U.S. manufacturing activity should grow next month for the first time since January 2008 as industrial companies work to restock customers’ bare shelves, a trade group said Monday.
The Institute for Supply Management’s better-than-expected report mirrored improving manufacturing data overseas.
More layoffs likely at GM
DETROIT – About 6,000 blue-collar General Motors Co. workers have taken the latest round of early retirement and buyout offers, but it fell short of the company’s goal, meaning more layoffs are likely.
GM has about 54,000 factory workers and wants to end the year with 40,500, a cut of about 13,500. Monday’s report means that about 7,500 too few workers took the offers, setting the stage for more layoffs.
The automaker announced in June and July that it would close 15 U.S. factories employing about 22,000 workers by the end of 2012.