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8B Daily News – Thursday, August 18, 2011 MON.-FRI. 9:00-5:30 • SAT. 9:00 -5:00 • CLOSED SUNDAYS FURNITURE DEPOT MATTRESS NORTH VALLEY NEW YORK (AP) — Stocks rose modestly Wednesday after companies reported higher earn- ings but gave mixed forecasts about how the fragile economy and rising costs will affect their growth. Target Corp., Staples Inc. and Dell Inc. reported earnings for last quarter that were above analysts' forecasts. Companies in the Stan- dard & Poor's 500 are on track to report higher profits for a ninth straight quarter. But economic growth is weak around the world, and some economists worry that a second recession may be coming. That could hurt companies' earn- ings in the future — and kept investors from buying with more enthusiasm Wednesday. Dell's forecast added to investors' concerns: It cut its pre- diction for revenue growth this year. Target and Staples gave profit forecasts that were above Wall Street's expectations. The Dow Jones industrial aver- age rose 4.28 points to 11,410.21. The S&P 500 rose 1.12, or 0.1 percent, to 1,193.88. The Nasdaq composite fell 11.97, or 0.5 per- cent, to 2,511.48. Seven of the 10 sectors that make up the S&P 500 rose. The biggest drops came from technol- ogy stocks, which fell 0.8 percent after Dell cut its forecast. ''There are a whole bunch of contradictory signals in the sys- tem now, and it's hard to tell which way to go,'' said Charlie MON.-THURS. 9:00-6:00 • FRI. 9:00-7:00 • SAT. 9:00-5:00 • SUN. 11:00-5:00 235 So. Main St., Red Bluff 527-1657 632 Main St., Red Bluff 527-5837 Smith, chief investment officer of Fort Pitt Capital Group, which has just over $1 billion in assets under management. Investors are still worried about Europe. Some countries have borrowed so much that they may not be able to repay their bonds, and economic growth there has slowed. Concerns about a possible default by a European country have dominated the mar- ket in recent weeks, along with worries about the slow U.S. econ- omy. Another concern Wednesday: Companies are contending with rising costs. Higher food prices helped push inflation at the wholesale level to 0.2 percent in July, according to a government report Wednesday. That compares with a 0.4 percent drop in June, but is still well below inflation levels earlier this year when vio- lence in the Middle East forced oil prices higher. In February, whole- sale prices rose 1.5 percent. Economists say rising inflation reduces the chances that the Fed- eral Reserve could announce another round of bond purchases to help the economy, a move called quantitative easing. The Fed just ended its second round of purchases, known as QE2, in June. ''QE3 could be a hard sell'' given higher inflation, Credit Suisse economists wrote in a report. They expect the govern- ment on Thursday to report that consumer prices rose 0.2 percent Mattress Sets & Adjustable Bed Financing & Delivery Available • FREE pillows • FREE delivery • FREE disposal With purchase of Tempurpedic mattress sets only. Stocks rise slightly on earnings reports Deere also raised its forecast for full-year earnings. It now expects to earn $2.7 billion this fiscal year, up from a May fore- cast of $2.65 billion. The maker of tractors and other heavy equip- ment said its profit rose 15 percent last quarter on strong demand for farm equipment. Stocks have been particularly in July. Preppy retailer Abercrombie & Fitch Co. fell 8.7 percent after its CEO warned of challenges ahead — including higher expenses. Cost ''pressures will be greater in the second half of the year, and macroeconomic uncer- tainty has increased,'' Mike Jef- fries said, after the company reported a 64 percent rise in prof- it last quarter. Dell said late Tuesday its prof- it rose 63 percent last quarter on strong demand from businesses and government agencies. But it also cited ''a more uncertain demand environment'' when it cut its forecast for annual revenue growth to a range of 1 percent to 5 percent. That's down from an earlier growth forecast for 5 per- cent to 9 percent. Dell stock fell 10.1 percent Wednesday. Other companies are more optimistic. Retailer Target said it expects to earn between $4.15 and $4.30 per share this year. Analysts expected $4.14. Target also said its earnings last quarter rose 3.7 percent on sales of gro- cery, beauty products and other items. Target stock rose 2.4 per- cent. volatile in August. Worries rose as the U.S. government said it may default on its debt unless it was allowed to borrow more. The government just beat the deadline to avoid a default, but the partisanship in the debate came at a cost — Standard & Poor's downgraded the U.S. credit rating on Aug. 5 by one notch to AA+ from the top AAA rating. That triggered one of Wall Street's wildest weeks: The Dow rose or fell by at least 400 points in each of the first four days of last week, the first time that has happened. Markets appear to have calmed somewhat since then. Tuesday marked the first time since the Aug. 5 downgrade that the Dow rose or fell by less than 100 points. It fell 76 points on worries about Europe's ability to contain its debt problems. Nearly three stocks rose Wednesday for every two that fell on the New York Stock Exchange. Consolidated trading volume was relatively light at 3.9 billion shares, the lowest in three weeks. Governor Brown names retired BofA executive as jobs adviser SACRAMENTO (AP) — Gov. Jerry Brown named a retired Bank of America executive on Wednesday as his senior adviser on how to create jobs in California. The administration announced the appoint- ment of Michael Rossi of Pebble Beach to the unpaid position. He will act as the liaison between the state's business lead- ers and the administra- tion, advising Brown on regulatory, legislative and executive actions needed to promote job growth. Rossi also will work to revamp the state's eco- nomic development efforts to attract more businesses to California and encourage growth by those already here, said Gil Duran, a spokesman for Brown's office. ''He has a good under- standing of how business • MEN • WOMEN • CHILDREN AFFORDABLE • CONVENIENT $1000 $1000 With coupon, Regularly $12 (Expires 8/31/11) FREE HELIUM BALLOONS 530-529-5766 855 So. Main St. (Walmart Shopping Center) works,'' Duran said, and has already discussed ideas with Brown on how to streamline state job efforts. Rossi, who is 67, was vice chairman of Bank of America before retiring in 1997. He since has worked with other finance companies, including Cerberus Capi- tal Management and GMAC Residential Capi- GROWNEY MOTORS Serving the North State Since 1922 Air Conditioning Service 1160 Main St., Red Bluff 527-1034 BUICK www.geogrowney.com We Aim To Please Test for leaks, test pressure, and inspect components. Charge system. Freon extra. R134A only. Most cars and light trucks. Plus disposal fees. No guarantee on A/C leaks if leaks are not found at time of service $69.99 tal, and advised the San Francisco 49ers and San Francisco real estate investment firm Shoren- stein Properties. The California Cham- ber of Commerce praised the appointment. It said Rossi, a Democrat, was well-qualified to help Brown remove barriers to job growth and improve California's business cli- mate as the state struggles RED BLUFF COLLISION ✪Windshield Replacement $ starting at 200 ✪ Auto Detailing $ 50 off your 1st visit FREE Estimates 530.527.6160 915 Madison St., Red Bluff with high unemployment. ''We look forward to working with Mr. Rossi to focus California policy makers on creating the certainty businesses need to invest in our economy and create jobs here,'' chamber president and chief executive Allan Zaremberg said in a state- ment. Rossi could not be reached for comment.