IBT Staff Reporter

Amid a steady stream of headlines about turmoil in the U.S. mortgage market propelled by rising defaults of subprime loans, home buyers and owners are fast turning to traditional, long-term mortgages for home financing needs, according to a report released on Wednesday.

Huge increases in U.S. food prices over the past few months are not only putting a strain on consumer's pocketbooks, but they may also make the Federal Reserve's fight to curb inflation more difficult.

Base metals were boosted on Wednesday as equity markets headed higher, with copper rising 1.6 percent, but analysts said the sentiment remained vulnerable.

The Federal Reserve Board is weighing whether it should ban some mortgage lending practices that fueled the recent housing market boom, Fed governor Randall Kroszner told a panel of lawmakers Wednesday.

Amid a weak U.S. mortgage market, Lehman Brothers said Tuesday its second quarter profit rose by 27 percent to beat analyst forecasts.

Oil prices slipped below $69 a barrel on Wednesday, supported by perceptions that supply and demand for oil is still finely balanced but pressured by expectations of a rise in U.S. gasoline supplies.

'Say-on-pay' proposals to give share owners a greater voice in setting executive pay have been the hottest issue on company proxy ballots this year, but investors have sent mixed signals on whether they like the idea.

US Airways Group may reach a decision this month on whether to proceed with an order for 20 Airbus wide-body planes or switch to Boeing Co. aircraft, the carrier's chief financial officer said on Wednesday

Shares of Applebee's International Inc. rose as much as 10 percent on Wednesday after Bloomberg News reported that pancake house operator IHOP Corp. had made a bid for the struggling bar-and-grill chain.

U.S. economic activity expanded from mid-April through May, with a number of areas reporting stronger growth, the Federal Reserve said on Wednesday.

The U.S. energy industry has sharply reduced its production of heating oil in favor of cleaner, higher-profit fuels like diesel -- a move that could see the nation relying more heavily on imports next winter heating season, analysts said Wednesday.

America's largest labor federation urged market regulators on Wednesday to force Blackstone Group LP to disclose more information as the huge private equity firm prepares to go public in an offering worth more than $4 billion.

China is seeking to unseat the United States as the dominant power in cyberspace, a U.S. Air Force general leading a new push in this area said Wednesday.

Ceridian Corp., whose biggest shareholder regards a $5.3 billion takeover bid for the human-resources company as too low, said on Wednesday it would be prepared to consider other plans to sell itself.Ceridian Corp., whose biggest shareholder regards a $5.3 billion takeover bid for the human-resources company as too low, said on Wednesday it would be prepared to consider other plans to sell itself.

Government bond prices rebounded on Wednesday on short-covering, but benchmark yields stayed near five-year highs as strong economic data raised the prospect that the Federal Reserve may increase interest rates.

Global microchip sales will grow by only 1.8 percent this year, much slower than an earlier projection of a 10 percent increase, as prices in key markets tumble, an industry group said on Wednesday.

Shares of Blockbuster Inc. rose more than 10 percent on Wednesday after Citigroup upgraded the No. 1 movie rental chain to buy from hold in response to new plans aimed at undercutting rival Netflix Inc.

Retail sales in May rose at the strongest pace since January 2006, while import prices surged, adding to recent data suggesting the U.S. economy is recovering strongly from a first-quarter slowdown.

UAL Corp., parent of United Airlines, would like to find a merger partner with a Southern tier hub and a strong presence in the Northeast, the carrier's chief financial officer said on Wednesday.

Top online video service YouTube will soon test a new video identification technology with two of the world's largest media companies, Time Warner Inc. and Walt Disney Co.

Government bond prices rose on Wednesday on shortcovering, reversing brief losses tied to surprisingly strong data that fanned worries the Federal Reserve may raise interest rates to curb inflation.

Freddie Mac, the second-largest U.S. home funding company, on Wednesday launched $3.0 billion in new five-year reference notes due Aug. 20, 2012, with pricing expected on Thursday, said joint lead manager JP Morgan.

The European Union's top security official lauded Google Inc's. decision to scale back how long it keeps personally identifiable data accumulated from its Web users as a step towards addressing privacy concerns.

BioFuel Energy Corp., a development-stage ethanol producer, on Wednesday said it plans to sell 5.25 million shares at $10.50 a share in an initial public offering, below its expected IPO pricing range of $13 to $14 a share.

The dollar surged on Wednesday as strong data and expectations of rising global interest rates pushed U.S. Treasury yields to five-year peaks, while stocks were volatile as growth prospects balanced the rise in yields.

The dollar briefly rose on Wednesday after a report showed May U.S. retail sales growth was the largest since January 2006, but pared gains after U.S. Treasury yields slipped.

The Wall Street Journal, whose parent Dow Jones & Co. is the target of a $5 billion takeover offer by News Corp., is set to shake up its newsroom by reassigning and replacing several top editors, the New York Times reported on its Web site.

News Corp.-invested MySpace China aims to launch an online messaging service as soon as possible, its CEO said on Wednesday, as the venture fights for a bigger share of the world's second-largest Internet market.

Hedge funds, known for flexing their financial muscles around the globe but still largely shut out of China, hope the quickening pace of Beijing's reforms will open new gateways into the world's fourth-largest economy.