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NEW THIS DIGEST:
— Updates: AMERICAN AIRLINES-RESERVATIONS, WALL STREET, EARNS-INTEL, EARNS-YAHOO, EARNS-CSX
DALLAS — American Airlines flights are grounded for several hours because of an outage in its computer systems, causing thousands of passengers to be stranded at airports and on planes. Airline spokeswoman Stacey Frantz says that the system was fixed by 4:30 p.m. EDT but that the airline expects delays and cancellations to continue for the rest of the day. By Airlines Writer David Koenig.
— AMERICAN AIRLINES-PASSENGERS — Tips for coping if you're stranded at the airport by American Airlines computer problem. AP photo.
NEW YORK — Strong housing and earnings reports help stocks rebound from their worst day of the year. The Dow Jones industrial average rises more than 1 percent, winning back more than half of the 265 points it lost a day earlier. The Standard & Poor's 500 index logs its second-best day of the year. By Markets Writer Steve Rothwell.
WASHINGTON — U.S. builders broke ground in March on homes at the fastest pace in nearly five years, fueled by a surge in apartment construction. The gains show the housing market is gaining strength ahead of the spring buying season. By Economics Writer Martin Crutsinger.
BEIJING — After China reported quarterly economic growth of 7.7 percent this week — far above anemic U.S. and European performance — global markets reacted by falling, wiping billions of dollars off stock prices. Growth came in under the 8 percent expected by forecasters who relied on Chinese trade and other data. The market plunge highlights complaints about the possible inaccuracy of Beijing's official data and the intense, possibly excessive importance traders attach to a handful of Chinese economic indicators. By Business Writer Joe McDonald.
WASHINGTON — The International Monetary Fund lowers its outlook for the world economy this year, predicting that government spending cuts will slow U.S. growth and keep the euro currency alliance in recession. By Economics Writer Christopher S. Rugaber.
RUSSIAN MOB-POKER GAMES
NEW YORK — Federal authorities in New York say members of Russian organized crime ran high-stakes poker games attended by professional athletes, Hollywood celebrities and Wall Street titans. The authorities say the games were an offshoot of a massive money-laundering scheme. FBI agents arrest several people in New York, Los Angeles, Miami and elsewhere. By Tom Hays.
MARKETS & ECONOMY:
WASHINGTON — U.S. consumer prices declined last month as the cost of gas fell sharply and food prices were unchanged. The tame reading is the latest evidence that the sluggish economy is keeping inflation in check. By Economics Writer Christopher S. Rugaber.
WASHINGTON — U.S. industrial production rose in March as auto plants cranked out more cars and cold weather kept utilities busy generating heat. Production at the nation's factories, mines and utilities rose 0.4 percent in March from February, the Federal Reserve says. By Economics Writer Paul Wiseman.
— OIL PRICES — The price of oil falls as far as $86 a barrel as shaky economic recoveries in China and the U.S. raise the prospect of weaker demand. It later recovered most of the losses, however, as some investors deemed the price had dropped too much in recent days.
— OBAMA-TVA — In a political role reversal, Republicans are blasting President Barack Obama's plan to consider selling the Tennessee Valley Authority, an icon of the New Deal long targeted by conservatives as an example of government overreach. AP photos.
NEW YORK — Goldman Sachs reports a strong first quarter, but analysts are more concerned about the bank's future than the past three months. They pepper the chief financial officer with questions about impending regulations, and investors send Goldman's stock down even as other banks rise. By Business Writer Christina Rexrode.
NEW YORK — Coca-Cola's first-quarter results come in above expectations and the drink maker says it struck deals to start parceling out more of its distribution territories to independent bottlers. By Food Industry Writer Candice Choi.
— EARNS-JOHNSON & JOHNSON — Johnson & Johnson's first-quarter profit falls by just over 10 percent as increased sales were offset by higher costs. AP photo.
— TARGET-OUTLOOK — Target says its first-quarter profit will miss forecast due to weaker-than-expected sales of seasonal items.
— EARNS-CSX — CSX Corp. says its first-quarter profit chugged ahead 2 percent as a decline in coal revenue was offset by rate increases for other shipments. AP photo.
GENERAL MOTORS-GLOBAL SALES
DETROIT — General Motors is edging out fast-growing Volkswagen in first-quarter sales as both companies try to close the gap with Toyota for the global world sales crown.
— GENERAL MOTORS-SMALLER PICKUPS — GM plans to unveil a line of revamped midsize pickup trucks later this year with gas mileage and features designed to take sales from Toyota's Tacoma.
— MENINGITIS OUTBREAK-CONGRESS — House Republicans say the Food and Drug Administration should have acted years earlier to close the Massachusetts pharmacy responsible for a deadly meningitis outbreak tied to contaminated medications.
— SWITZERLAND-GLENCORE — Commodities trader Glencore says its merger with mining company Xstrata PLC has cleared its final hurdle after Chinese regulators approved the deal.
— INDIA-EARNS-RELIANCE — Reliance Industries, India's most valuable company by market value, says annual profit rose 4.8 percent as improved refining margins offset lower earnings from oil and gas production.
TECHNOLOGY & MEDIA:
NEW YORK —Wall Street analysts are concerned that Dish Network's combative chairman, Charlie Ergen, is trying to swallow too big a bite by offering $25.5 billion for Sprint Nextel. In an interview, Ergen rebuts the criticism, insisting the combined company would be able to handle the debt load. By Technology Writer Peter Svensson.
NEW YORK — Intel Corp., the world's largest maker of chips for PCs, is remaining steadfast amid a drastic slowdown in computer sales. By Technology Writer Peter Svensson.
SAN FRANCISCO — Yahoo is making more money under CEO Marissa Mayer, even as the Internet company struggles to sell more of the ads that bring in most of its revenue. By Technology Writer Michael Liedtke.
— FACEBOOK-IPHONE — Facebook has updated its iPhone and iPad applications to let people keep using its chat feature even when they are doing other things, such as reading friends' updates.
— DELL ACQUISITION-ICAHN — Dell says a special committee of its board reached a deal with Carl Icahn to cap his share ownership while it considers takeover bids from the billionaire investor, a group led by CEO Michael Dell and buyout specialist Blackstone Group. AP photo.
— INTERNET ADVERTISING — A new report says U.S. Internet advertising revenue grew 15 percent to a record $36.6 billion in 2012.
— LEAP MOTION-HEWLETT-PACKARD — Leap Motion says its 3-D motion controllers will be included in some computers from Hewlett-Packard this year.
ROME — Italian authorities have seized 1.8 billion euros ($2.35 billion) from Japan's Nomura bank and placed its former European CEO under investigation as part of its probe into the trading scandal at Monte Paschi di Siena bank. By Colleen Barry.
— EUROPE HORSE MEAT — More than 7,000 tests across the European Union have shown that nearly 5 percent of the food products labeled as beef contained horse meat, but there is no danger to public health, officials say.
PANAJI, India — India's going to have to wait for its first Playboy bunnies. After a month of heated debate, the government in the tourist hotspot of Goa refuses permission for promoters to open the country's first Playboy club. By Mayabhushan Nagvenkar.
BRUSSELS — Europe's fight against climate change was dealt a setback on Tuesday, when EU lawmakers voted against a proposal that would have made it more expensive for utilities and other businesses to burn fossil fuels. By Juergen Baetz.
NOTRE-DAME-DES LANDES, France — They hurl sticks, stones and gasoline bombs. They have spent winter months fortifying muddy encampments. And now they are ready to ramp up their fight against a huge new airport in western France. An unlikely alliance of anarchists and farmers creates a headache for the French government by mounting an Occupy Wall Street-style protest that has delayed construction for months. By Greg Keller.
— EUROPE-FINANCIAL CRISIS — European Central Bank President Mario Draghi urges the 17 countries that use the euro to move swiftly toward completing a full banking union to stabilize the bloc's financial sector.
— GREECE-FINANCIAL-CRISIS — Greece's islands are left without ferry links with the mainland because of a 24-hour strike by seamen protesting austerity policies. AP photos.
— GERMANY-TAX RAIDS — German authorities launch dawn raids on the homes of over 200 suspected tax cheats, acting on information gleaned from a CD containing the confidential account details of thousands of Swiss bank clients.
— EUROPE-BANK BONUSES — The European Parliament votes in favor of financial reforms, including a new law to cap bankers' bonuses.
— BRAZIL-AMAZON MEAT — Federal prosecutors in Brazil want 26 meat packing companies to pay fines of more than $200 million for buying cattle raised in environmentally sensitive regions, on indigenous reservations and at farms that have been blacklisted for using slave-like labor.
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The glitter is gone
The price of gold is at its lowest level since 2011 following a two-day plunge. But don't think of gold's drop as a way to buy low, many financial analysts say. They are calling for gold's price to stay roughly where it is for years.
GM sales rise in 1Q
General Motors said Tuesday that it sold 2.36 million cars and trucks across the globe from January through March, an increase of 3.6 percent over the first quarter of last year.