In Brief

As investors question strength of recovery, gold prices surge

Gold prices set a record high for a second day Friday as investors continued to question the strength of the global economic recovery.

Gold for August delivery rose $9.70 to close at $1,257.20 an ounce after hitting $1,263.70 an ounce earlier in the day.

The previous settlement record was $1,248.70 an ounce, set a day earlier.

Many analysts speculate gold could top $1,300 an ounce in the months ahead. Gold prices have risen about 12 percent since January as traders and investors seek out clues that the economic recovery is on track, both in the United States, where economic news has been mixed, and in Europe, which is coping with a financial crisis.

Nevada is the world’s No. 4 gold producer behind China, Australia and South Africa.

NEW YORK

Caterpillar’s machine sales up 11 percent globally in May

Caterpillar Inc. said Friday its machine sales worldwide jumped 11 percent in May compared with a year ago as a rebound in North American and Asian business markets helped offset declines in European sales.

It was the first time since August 2006 the company has reported year-over-year growth in North America machine sales, Jefferies & Co. analyst Stephen Volkmann said.

In a filing with the Securities and Exchange Commission on Thursday, Peoria, Ill.-based Caterpillar said May sales were up 15 percent in North America and surged 38 percent in the Asia Pacific region, but fell in Europe, Africa and the Middle East.

LOUISVILLE, KY.

Churchill CEO says racetracks need alternative gambling

The chief executive of Churchill Downs Inc. says any racetrack without alternative gambling for extra income would find it difficult to stay in business and raised doubts about the future of its Chicago-area track.

Bob Evans told The Courier-Journal of Louisville on Thursday after the company’s annual shareholder’s meeting that “you can’t run on hope.”

Asked if Arlington Park near Chicago and historic Churchill Downs in Louisville are in jeopardy, Evans told the newspaper any racetrack that doesn’t have alternative gambling needs some business to make up the difference.

Evans said that while Churchill Downs has the famous Kentucky Derby and the Kentucky Oaks races, “it’s a tough one” for Arlington Park in Arlington Heights, Ill.

NEW YORK

BP’s senior unsecured ratings downgraded by Moody’s

Moody’s Investors Service downgraded the senior unsecured ratings of BP PLC on Friday, the latest in a string of hits to the beleaguered oil company.

The downgrade comes three days after scientists gave a new estimate of 2.52 million gallons spilling daily into the Gulf of Mexico from a well that BP was drilling.

It cut all of BP’s long-term debt securities by three notches to “A2” from “Aa2.”

It is the second time this month that Moody’s has downgraded the company and follows downgrades from other ratings agencies, too.

MIAMI

Couple in Chinese drywall case awarded $2.4 million

A Florida couple who fled their dream home because of foul-smelling, ruinous Chinese drywall was awarded $2.4 million in damages Friday in the nation’s first jury trial over the defective wallboard that could have legal ramifications for thousands of similar cases.

The six-person jury ruled that Armin and Lisa Seifart should receive more than just the costs of gutting and renovating their home: they were also awarded damages for loss of enjoyment of the $1.6 million house and for the drywall stigma that might reduce its resale value.

The defendant, drywall distributor Banner Supply Co., is named in thousands of other lawsuits. Attorneys in those cases, as well as many others pending nationwide against other companies, will look to the Seifart damage award as a guide for what kinds of damages they seek.

Defective, sulfur-emitting Chinese drywall has been linked to possible health problems along with a noxious odor, corrosion of wiring, plumbing, computers, plumbing and jewelry. Most of the problems have arisen in Florida, Virginia, Mississippi, Alabama and Louisiana in homes built during the housing boom and some damaged during the busy 2005 hurricane season.

PARIS

In sign of easing pessimism, euro gains ground on dollar

The incipient panic about Europe’s debt crisis seems to have subsided into mere pessimism this week, with the euro rebounding and investors encouraged by political leaders’ new willingness to take quick action to calm market fears.

The big underlying issues haven’t been erased: Spain is still dogged by speculation it may eventually need a rescue plan similar to the bailout already given to Greece. And many governments are cutting back on welfare programs and other spending to chip away at their heavy debt burdens — and sometimes facing street protests as a result.

Yet positive news from trouble spots Spain and Greece — as well as EU leaders’ united pledge for more banking transparency — helped buoy the euro to $1.2362 Friday, up from a four-year low last week near $1.19, and European stocks held steady.

Oil, gasoline prices climb heading into weekend

Oil and gasoline prices both edged up Friday, extending gains for the week as the driving season picked up speed and more motorists hit the road.

Pump prices rose 1.2 cents to a national average of $2.719 a gallon, according to AAA, Wright Express and Oil Price Information Service. Prices have risen 1.5 cents in the past week but are still 13.3 cents less than a month ago. A year ago, the average price was $2.685 per gallon.

Analysts expect prices to rise heading into the Fourth of July weekend and then fall after that because of plentiful supplies and ongoing tepid demand.

The American Petroleum Institute said Friday that gasoline deliveries fell 0.4 percent in May to 9.05 million barrels per day, the lowest May level in seven years. That compared with year-over-year increases in March and April.

API Chief Economist John Felmy said the decline shows that demand is more sensitive to higher prices and the pace of the economic recovery than other oil products, like diesel, heating oil and jet fuel.

NEW YORK

Soccer, basketball fans pushing Twitter traffic to record levels

When a World Cup goal is scored, Twitter celebrates.

The social networking site is seeing huge traffic when a big goal is scored in the soccer tournament. Though Twitter normally sees about 750 tweets per second on an average day, there were 2,940 tweets per second, then a record, after Japan scored against Cameroon on Monday.

Nearly as much traffic was reported after Brazil’s first goal against North Korea on Monday, as well as after Mexico’s tying goal against South Africa on June 11.

Twitter has yet to announce its numbers for Friday’s U.S.-Slovenia 2-2 draw, which was likely to have caused huge amounts of activity.

Basketball, though, is still trumping soccer. Game 7 of the NBA Finals on Thursday night between the Los Angeles Lakers and Boston Celtics generated as many as 3,085 tweets per second.