Stock still falling after Lehman ousts execs

Stock still falling after Lehman ousts execs Lehman Brothers ousted Chief Financial Officer Erin Callan and Chief Operating Officer Joseph Gregory to try to quell investor anger. But, with a four-day stock plunge that wiped $4.5 billion from the New York investment bank's market value, it was unclear if the upheaval will be enough to satisfy critics. Lehman shares fell 4.4 percent Thursday to $22.70.

Oil ends volatile day at $136.74 a barrel Oil prices rebounded from a steep early loss to end modestly higher Thursday in another volatile session fueled by a rising dollar and concerns about supplies. Gas prices reached a new record at the pump, rising to a national average of $4.06 a gallon, and are likely to keep rising. Light, sweet crude for July delivery rose 36 cents to settle at $136.74 a barrel on the New York Mercantile Exchange.

Invitrogen to buy Applied Biosystems Life sciences equipment maker Invitrogen Corp. agreed Thursday to pay $6.4 billion for Applera's Applied Biosystems Group in hopes of creating a one-stop shop for biomedical researchers. Carlsbad, Calif.-based Invitrogen will pay $38 a share for Foster City, Calif.-based Applied Biosystems, which specializes in advanced gene-sequencing systems. The deal, which shareholders must still approve, is expected to close this fall.

Caterpillar expanding Illinois factories Caterpillar Inc. said Thursday it will spend $1 billion over the next two years to expand capacity in five Illinois factories and will shift production at some of its plants. The Peoria, Ill.-based heavy equipment manufacturer also announced a deal to develop medium- and heavy-duty trucks with Navistar International Corp. Caterpillar said the expansion is needed to meet demand for machines used mostly in mining and large-infrastructure projects, particularly overseas.

Thirty-year mortgage rates at 8-month high Rates on 30-year mortgages jumped to the highest level in nearly eight months, reflecting increased concerns about what the Federal Reserve might do to battle inflation. Freddie Mac, the mortgage company, reported Thursday that 30-year fixed-rate mortgages averaged 6.32 percent this week. That was up sharply from 6.09 percent last week. It was the highest level for 30-year mortgages since they averaged 6.33 percent for the week of Oct. 25.

China's inflation rate drops with food prices China's inflation rate dipped to a still-high 7.7 percent in May, thanks to easing food prices. The rise in the consumer price index for May was lower than the 8.5 percent rise in April and was below 8 percent for the first time in four months.