Latest readings seen showing stress

WASHINGTON (AP) -- Despite a rebound reported in April housing starts, analysts say there's no sign of a recovery in new home construction.

The Commerce Department says housing construction increased 8.2 percent in April. The growth was because of a big jump in apartment construction, even as building of so-called single-family homes weakened further.

Global Insight economist Brian Bethune says "it is definitely too early to uncork the champagne..."

A second report today indicates that economic headwinds are taking a toll on Americans. The University of Michigan/Reuters survey dipped to a 28-year low this month. It is blamed in part on rising gasoline and food prices.

More pain at the pump

NEW YORK (AP) -- Oil prices are up more than $2 a barrel at midday, as prices at the pump also push to new highs.

The gains come ahead of Memorial Day, the traditional start of the peak summer driving season in the U.S. Americans are now paying a national average of nearly $3.79 a gallon for regular gasoline, according to the AAA and Oil Price Information Service.

Light, sweet crude for June delivery rose as high as $127.82 a barrel on the New York Mercantile Exchange, before easing from the highs of the session so far.

Saudi Arabia wants to keep oil production at current levels

RIYADH, Saudi Arabia (AP) -- The White House says Saudi Arabia's leaders are making clear they see no reason to increase oil production until customers demand it.

President Bush is in the oil-rich country today to appeal to King Abdullah for greater production to help halt rising gas prices in the United States.

But his national security adviser, Stephen Hadley, says Saudi officials stuck to their position that they already are meeting demand.

Hadley told reporters that the Saudis are saying that their country "does not have customers that are making requests for oil that they are not able to satisfy."

Treasury secretary says markets are calmer

WASHINGTON (AP) -- Treasury Secretary Henry Paulson says that financial markets are "considerably calmer" now than they were two months ago. He predicts the economy will be rebounding by the second half of this year.

In a speech to business executives in Washington, Paulson said the drag from housing, which he says is still the biggest risk to the economy, will soon be lessened by nearly 100 billion dollars in economic stimulus payments to U.S. households.

Paulson says both the ability to obtain loans and investor confidence are gradually improving, raising hopes that the financial market crisis which hit last August was beginning to recede.

GE plans to get out of appliance business

NEW HAVEN, Conn. (AP) -- If you own a GE appliance, it might soon be a sort of relic.

General Electric says the economic slowdown is prompting it to exit the business of making refrigerators, air conditioners and ovens.

GE chief Jeff Immelt says while GE Appliances "has a very strong brand," it's primarily a U.S. business and that means its "fortunes are tied to the rise and fall of a single market."

In a statement, the company says the decision to sell or spin off GE Appliances is part of an ongoing plan to exit "slower growth and more volatile businesses."

Analysts say the move is a recognition that nothing is "untouchable at this point" including GE's lighting business and even NBC Universal.

The 101-year-old appliance division is headquartered in Louisville, Kentucky. Last year it had revenues of 7 billion dollars. It employs about 13,000 people worldwide.

United eliminates 500-mile minimum credit on short flights

CHICAGO (AP) -- United Airlines is reducing frequent-flier miles for flights under 500 miles as part of efforts to cut costs.

Beginning in July, United will award frequent-flier miles based on actual miles flown for those short flights, doing away with the minimum credit of 500 miles. Once the change is made, a passenger flying between Chicago and Detroit, for example, would get 234 miles one way instead of the current 500.

US Airways already has done away with the minimum. Analysts expect other carriers to follow as they continue cutting perks to cope with growing costs.

A United spokeswoman says the Chicago-based carrier is looking at every part of its business to ensure it is fiscally responsible in a challenging economic environment.