UAW grants concessions, exec warns of depression

DETROIT (AP) — Worried about their jobs and warned that the cost of failure could be a depression, hundreds of leaders of the United Auto Workers voted overwhelmingly Wednesday to make concessions to Detroit's three struggling automakers, including all but ending a much-derided program that let laid-off workers collect up to 95 percent of their salaries.

Union leaders also agreed to let the cash-starved automakers delay billions of dollars in payments to a union-administered trust set to take over health care for blue-collar retirees starting in 2010. In addition, they decided to let the Detroit leadership begin renegotiating elements of landmark contracts signed with the automakers last year, a move that could lead to wage concessions.

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Stocks finish higher despite dismal economic data

NEW YORK (AP) — Wall Street withstood another stream of bad economic readings Wednesday, closing sharply higher after investors shuttled between pessimism about the recession and hopes that the nation might start seeing relief soon. The major indexes saw big swings throughout the day, but all closed up more than 2 percent, giving the market its second straight advance.

The Dow rose 172.60, or 2.05 percent, to 8,591.69. The blue chip index has gained more than 442 points in the past two session, wiping out more than half of Monday's slide.

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Productivity growth better than expected in 3Q

WASHINGTON (AP) — Worker productivity slowed in the summer while wage pressures increased, but both developments were better than expected and are unlikely to raise inflation alarms at the Federal Reserve.

Meanwhile, the U.S. service sector, which includes hotels, retailers and other industries, shrank more than expected in November, even after a report earlier this week showed the U.S. has been in a recession for a year. The Institute for Supply Management, a trade group of purchasing executives, said Wednesday that readings for new orders, employment and prices all hit the lowest levels on records dating back to 1997.

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Fed: Economy darkens heading into holidays

WASHINGTON (AP) — The country's economic picture has darkened further as Americans hunkered down heading into the holidays, forcing retailers to ring up fewer sales and factories to cut back on production.

The Federal Reserve's new snapshot of business conditions nationwide, released Wednesday, suggested the economy was sinking deeper into recession.