Financial life in a big town

AirTran Airways plans to expand its Caribbean service to Punta Cana, Dominican Republic.

Punta Cana will mark the fifth Caribbean destination the Orlando-based low-cost airline offers service to, including Aruba and Cancun, Mexico; Montego Bay, Jamaica; and Nassau/Paradise Island, Bahamas.

Roundtrip, nonstop flights between Hartsfield-Jackson Atlanta International Airport and Punta Cana International Airport will be conducted twice weekly beginning Feb. 16, 2011.

Connections to Punta Cana will be available from more than 40 cities throughout the AirTran Airways network via Atlanta, including Orlando, New York, Washington, Boston, Baltimore, Milwaukee and others.

“Punta Cana is a very popular vacation destination, and we are happy to offer our passengers the chance to explore such a beautiful area beginning this winter,” said Kevin Healy, AirTran Airways’ senior vice president of marketing and planning. “Our new flights to Punta Cana represent the next phase of our growth strategy in the Caribbean.”

AirTran Airways has been flying to Punta Cana since 2008 using chartered service.

AirTran Airways is a subsidiary of AirTran Holdings Inc. (NYSE: AAI) and a Fortune 1000 company.

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Stocks end little changed Thursday, erasing bigger losses after weaker than expected reports on the economy revived worries about growth.

The Dow Jones industrial average (INDU) lost a few points and broke its seven-day winning streak. The S&P 500 (SPX) index ended just above breakeven, and the Nasdaq (COMP) composite lost a few points.

Stocks tumbled through most of the session, but managed to cut losses near the close thanks to a late-session advance in financial and commodity shares.

After the close, Google (GOOG, Fortune 500) reported quarterly earnings that missed forecasts on revenue that beat estimates, sending shares lower in after-hours trading.

JPMorgan’s profit report added to bets that quarterly earnings will hold up despite the slower growing economy. But that wasn’t enough to distract investors from a spate of mixed-to-weaker economic reports, particularly in the aftermath of a big rally over the past week.

"We’re coming off a strong rally over the last few days that was earnings driven," said Kim Caughey, senior equity analyst at Fort Pitt Capital Group. "Today we took a rest from looking at the earnings and took another look at the economy."

On Wednesday, the Federal Reserve lowered its forecast for GDP growth this year. On Thursday, a report showed that weekly jobless claims fell to a two-year low — but continuing claims, a measure of long-term joblessness, rose. Weak reports on manufacturing in the New York and Philadelphia regions added to the jitters.

China also reported strong GDP growth of 10.3% in the second quarter. Still, that fell short of the 11.9% growth recorded in the first quarter.

On Thursday afternoon, the Senate approved the most far-reaching financial reform bill since the 1930s, which President Obama is expected to sign into law next week.

The legislation is designed to limit big banks, protect consumers and prevent the future reoccurrence of financial crises like the one that hit in 2008.

Results: Dow component JPMorgan Chase posted a second-quarter profit of $4.8 billion, or $1.09 per share, trouncing expectations. The bank’s strength in the quarter was due partly to a decline in the number of consumers defaulting on loans. However, JPMorgan’s shares slipped amid the broader market selloff.

"It’s great to have earnings surprises but what we really need to see are companies issuing upbeat forecasts for the second half of the year," she said.

Earnings for the S&P 500 are expected to have risen 28% versus a year ago, according to the latest from earnings tracker Thomson Reuters.

Economy: The number of Americans filing new claims for unemployment last week fell to 429,000, the lowest level since August 2008. Economists surveyed by Briefing.com thought claims would drop to 450,000 from a revised 458,000 in the previous week.

However, the drop in weekly claims was largely a result of seasonal factors. Continuing claims, a measure of Americans who have been receiving benefits for a week or more, rose to 4,681,000 from 4,434,000 in the previous week payday loans with no fax. Economists surveyed by Briefing.com thought claims would fall to 4,400,000.

The NY Fed-Empire Manufacturing survey plunged to 5.08 in July from 19.57 in June, surprising economists who were expecting it to dip to 18.

The Philadelphia Fed index fell to 5.1 in July from 8.0 in June, surprising economists who thought that manufacturing activity would rise to 10.0.

The Producer Price Index (PPI), which measures wholesale inflation, fell 0.5% in June after falling 0.3% in May. Economists thought it would fall 0.1%. The so-called core PPI, which strips out volatile food and energy prices, rose 0.1%. Economists expected it to rise 0.1% after it rose 0.2% last month.

Industrial production rose 0.1% in June after rising 1.3% in May. Economists thought it would hold steady. Capacity utilization held steady at 74.1% in June, versus forecasts for a rise to 74.2%.

On Wednesday, the Federal Reserve lowered its forecast for GDP this year to a range of between 3% and 3.5% versus the previous forecast of a range of 3.2% to 3.7%.

BP: Shares of the beleaguered oil company rallied 7.5% after BP (BP) said that it has managed to temporarily stop the flow of oil into the Gulf of Mexico, nearly three months after the explosion that caused the leak.

Company news: Private-equity firm Carlyle Group is buying vitamin maker NBTY (NTY) in a $3.8 billion cash deal that values NBTY’s shares at $55 per share, a 47% premium above the stock’s closing price Wednesday. Shares gained 43%.

World markets: European markets fell, with Britain’s FTSE 100 down 0.8%, Germany’s DAX off 1% and France’s CAC 40 down 1.4%.

Asian markets ended lower. Japan’s Nikkei fell 0.1%, Hong Kong’s Hang Seng lost 0.2% and the Shanghai Composite fell 1.6%.

Currencies: The euro gained versus the dollar, hitting a two-month high. The dollar fell versus the Japanese yen.

Commodities: U.S. light crude oil for August delivery rose 26 cents to $76.88 a barrel on the New York Mercantile Exchange.

COMEX gold for August delivery gained $1.20 to $1,209.50 an ounce.

Bonds: Treasury prices rose, lowering the yield on the 10-year note to 2.98% from 3.05% late Wednesday. Debt prices and yields move in opposite directions.

Market breadth: Breadth was negative. On the New York Stock Exchange, losers beat winners by a narrow margin on volume of 1.12 billion shares. On the Nasdaq, decliners beat advancers 2 to 1 on volume of 1.99 billion shares.

How much of a hit did you take in the recent correction? Are you worried about a bear market? What changes have you made in your portfolio and what changes do you plan on making for the rest of the year? E-mail your story to realstories@cnnmoney.com and you could be featured in an upcoming article. For the CNNMoney.com Comment Policy, click here. 

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A North Carolina software developer has picked up Sunbelt Software Inc., which employs 250 people in Clearwater and offices around the world. The sale will soon create a spin-off company offering Sunbelt’s software distribution business.

Terms of the deal were not disclosed.

GFI Software, based in Cary, N.C., was most interested in Sunbelt’s Vipre technology, which the software infrastructure products provider said it could use in its e-mail security and Web security services group, according to a release.

Alex Eckelberry, Sunbelt’s chief executive officer, told the Tampa Bay Business Journal in an e-mail that the extent of the impact the acquisition will have has not been worked out yet. He will remain with the newly merged company, as will Mark Patton as vice president of research and development, Eric Sites as chief technology officer, and Bill Emerick as senior vice president of products and services.

Sunbelt co-founder Stu Sjouwerman will retire but remain with Sunbelt’s various publications including WServerNews, Win7News and SecurityNews online payday loans.

“It’s an exciting day for us here at Sunbelt, and I believe sincerely that this acquisition was in the best interests of all parties,” Eckelberry said. “Not only our shareholders and employees, but most importantly, our customers and partners.”

Both companies are working to integrate various sales, marketing, finance and technology teams.

“Our goal is to make the combination as seamless as possible to our customers and partners,” Eckelberry said.

GFI already has plans to sell Sunbelt’s software distribution business, which was started more than 16 years ago and has operated separately from the technology side of the company, it said in a release.

Sunbelt Software, a TBBJ Best Places to Work finalist last year, presented at the Florida Venture Forum’s 2009 Venture Capital Conference in Naples. The company was founded in 1994.

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Less than three weeks after gold surged to record highs, the precious metal has scaled back about 5% and is hovering once again around $1,200 an ounce.

On Thursday morning, gold for August delivery — the most actively traded contract — was down $7.50, or 0.63%, at $1,191.40 an ounce.

But the two major factors behind the precious metal’s recent highs around $1,250 — Europe’s debt woes and volatile stock markets — are still major concerns. So what gives?

For the first clue, look no further than July 1 — the day gold fell nearly $40.

Good news for Europe, bad for gold

Facing the expiration of about $554 billion in debt last Thursday, the European Central Bank announced it would assist 78 banks in refinancing their loans, a move that would essentially roll over a quarter of that debt.

The euro rose after the news, and institutional investors, who just weeks earlier had been betting in favor of gold and against the euro, suddenly rushed to close out their bets and reap profits at gold’s still relatively high prices, said Phil Streible, a senior market strategist with futures broker Lind-Waldock.

Traders had previously been taking advantage of the euro’s weakness amid growing concerns about Europe’s debt crisis. Gold, as a tangible asset, was perceived to be a safer alternative to the paper currency, Streible said. But in light of the ECB’s news, that trade may have run its course.

So investors seem temporarily content to take their profits and put their fears about Europe’s debt crisis on the back burner, and that’s one factor driving gold down. But there’s another.

Deflation, not inflation, fears

Disappointing economic data on this side of the Atlantic may also be leading investors to sell gold. On Friday, readings on U.S. manufacturing, housing and jobs all came in worse-than-expected, sending stocks to fresh 2010 lows.

It’s a bit curious that gold, a so-called safe haven, has slipped despite some dismal economic reports. But gold is also considered a hedge against inflation — a trend investors now have little reason to fear.

Michael Cheah, a bond fund manager with SunAmerica, said the most recent economic reports have fed increased fears of deflation, a persistent decline in the prices of assets and consumer goods fast cash advance loan.

In a deflation scenario, Cheah said investors would be wise to put their money behind a different safe haven: U.S. Treasurys.

That’s because Treasurys pay interest regularly, and although the yield may be low, it’s still better than taking a loss in stocks or gold should double-dip recession fears come true, Cheah said.

Gold rush not over yet

But with all these factors in mind, analysts still say gold prices could climb higher. Streible forecasts gold to rebound to as high as $1,325 by the end of the year.

Jeffrey Nichols, a senior economic advisor to Rosland Capital, a precious metals firm, has even loftier expectations. He anticipates the metal to rise as high as $1,500 an ounce by year-end — a prediction he has stuck with for the last several months.

Nichols points out that gold is a very small market when compared to Treasurys or currencies, so it’s easily swayed in one direction, especially during weeks of low trading volume.

The recent dip may be entirely the work of institutional investors at big banks and hedge funds who are taking profits during light trading surrounding the July 4 holiday and summer vacations, Nichols said.

And those are quite "possibly the very same people who will come back in the next few weeks and push gold higher again," he added.

Meanwhile, Streible said he thinks concerns about Europe’s debt crisis are likely to resurface, pushing the euro down and gold up once again.

Investors will be watching for the results of the ECB’s so-called financial "stress tests" of 91 banks, which it plans to release on July 23, as a barometer of the region’s economic health.

Cheah also expects gold to rise later in the year because he thinks a double-dip is likely. If that happens, he said, investors probably would eventually lose faith in the U.S. dollar and Treasurys, sending gold once again to record highs, he said. 

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Toyota Motor Co. plans to start recalling luxury vehicles possibly affected by engine problems on Monday.

Toyota will submit documents to recall of 90,000 vehicles in Japan on Monday, company spokesman Mieko Iwasaki told CNN. Recall announcements in other regions will subsequently be handled by each country individually.

On Thursday, Toyota said it was investigating engine problems affecting 270,000 vehicles worldwide. Small valve springs that were made from low-quality metal could crack, potentially causing engines to stall, said Toyota spokesman Paul Nolasco.

In most cases, owners will experience only abnormal idling or engine noise, Toyota said in a written statement, although even that was described as a "remote possibility."

Approximately 137,000 vehicles in the U.S. are potentially affected, the automaker said. The cars sold in the U.S. that could be affected include the Lexus IS 350, GS 350, GS 460, GS 450h, LS 460, LS 600hL. All are luxury sedans and two, the GS 450h and LS 600hL, are hybrid cars.

Only cars from model years earlier than 2010 could be involved, Toyota said.

Also involved is the Toyota Crown, a large luxury car that is not sold in the United States.

Toyota has not received any reports of injuries or fatalities related to the issue, the automaker said instant payday loan.

Toyota’s Lexus luxury division will announce a remedy for the problem as soon as possible, the automaker said in its statement.

"In the meantime, we sincerely apologize to our customers for any inconvenience and request that they contact their nearest Lexus dealer if they believe there is a problem with their vehicle," said Mark Templin, general manager for Lexus in the U.S.

Toyota has been dealing with a long-running spate of quality and safety problems.

Toyota has, in recent months, recalled more than 8 million vehicles worldwide for a variety of potential safety issues including possible unintended acceleration and problems with anti-lock brake software.

Most recently, the automaker recalled some Lexus SUVs because of problems with electronic stability control software.

In a recent J.D. Power survey of initial quality, Toyota slipped to 21st place this year from 6th place last year.

CNN’s Yoko Wakatsuki and CNNMoney.com senior writer Chris Isidore contributed to this report. 

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Birmingham stocks closed a tough week Friday with none of the local companies posting gains for the week.

Book retailer Books-A-Million (Nasdaq: BAMM) took the biggest hit with a 15 percent decrease for the week. It opened Monday at $6.57 to close at $5.57 on Friday.

The stock price for Colonial Properties Trust (NYSE: CLP) dropped around 11 percent to close the week at $13.89. It opened on Monday at $15.66.

Regions Financial Corp (NYSE: RF) ended the week at $6 .24 after opening at $6.95.

Superior Bank (Nasdaq: SUPR) saw its prices fall 10 percent to $2.03 after starting the week at $2.26.

Meanwhile, prices for HealthSouth (NYSE: HLS) were down 8 percent to close the week at $17.71. It opened Monday at $19.43.

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This year’s week-long Alzheimer’s conference is expected to attract 5,500 international attendees to Hawaii and add $26 million in statewide spending.

The Alzheimer’s Association International Conference on Alzheimer’s Disease will be held July 10-15 at the Hawaii Convention Center, resulting in 44,000 booked hotel rooms.

“This is excellent news for Hawaii’s tourism economy and we look forward to providing a world-class venue — conveniently in the Asia Pacific — for professionals to come together to discuss this important work,” said Mike McCartney, Hawaii Tourism Authority president and CEO no teletrack payday loan.

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A Quincy tool-rental company has filed to liquidate under Chapter 7 of the U.S. bankruptcy code.

Optimum Equipment LLC, which does businss as U-Rent It Tool, listed assets of less than $50,000 and liabilities in the range of $1 million to $10 million.

In its filing, Optimum ownership says creditors hold $2.78 million in unsecured claims. The filing states there are no secured claims.

Optimum is represented in the bankruptcy by attorney David B. Madoff of Madoff and Khoury in Foxborough.

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Lincoln County Bancorp and its Peoples Bank and Trust Co. subsidiary of Troy, Mo., reached an agreement last week with the Federal Reserve Bank of St. Louis “in recognition of their common goal to maintain the financial soundness” of the two financial entities, the Federal Reserve Board said Monday.

Under the agreement, dated June 14, Peoples Bank must file plans to strengthen credit risk management practices, strengthen commercial real estate concentrations, real estate appraisal practices and asset improvement. The plans primarily are due within 60 days of the agreement.

According to the agreement, the bank also must get prior approval to extend, renew or restructure any loans that are criticized in the Fed’s examination of the bank that began Sept. 8, 2009.

Peoples Bank also must charge-off or collect all assets classified as a “loss” in the Fed’s examination report.

The holding company and bank must submit a joint written plan to each maintain sufficient capital.

Peoples Bank is to submit to the Fed a written business plan for the rest of 2010 to improve the bank’s earnings and overall condition. The holding company has to submit a written statement of its planned sources and uses of cash for 2010.

Neither Lincoln county Bancorp or Peoples Bank are to declare or pay dividends without prior approval from the Fed.

Donald Thompson is chairman of both Lincoln County Bancorp and Peoples Bank and Trust Co.

In addition to Peoples Bank and Trust Co., Lincoln County Bancorp.’s subsidiaries are: People’s Bank of Altenburg, Mo., in Perry County; Bank of Louisiana, Mo., in Pike County; Exchange Bank of Missouri in Fayette, Mo., in Howard County; and Exchange Bank of Northeast Missouri in Kohoka, Mo., in Clark County. The company also owns an unregulated subsidiary, Vacations, a travel agency.

As of March 31, Lincoln County Bancorp had combined total deposits of $584.7 million, and combined total assets of $707.9 million as of Peoples Bank and Trust Co. had total assets of $415.9 million as of March 31.

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THURSDAY

Information Modeling — The St. Louis Council of Construction Consumers sponsors "ABCs of Building Information Modeling" to improve efficiency, savings and quality in the workplace.

— 7 a.m. Engineers Club, 4359 Lindell Boulevard, St. Louis

— $40 for members; $60 for nonmembers. Register online at www.slccc.net.

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