Money Minute: Home Sales Up, GM Down, Yahoo

BusinessMoney Minute: Home Sales Up, GM Down, YahooMoney Minute: Home Sales Up, GM Down, YahooThe Associated PressSales of existing homes posted a slight increase for May, but still show the housing slump is far from over. AP's James Limbach reports on that and the rest of Thursday's top business headlines. (June 26)Sales of existing homes rose 2 percent in May, only the second increase in the past 10 months. Prices, however, kept plunging. The median sale price of an existing home dropped to $208,600, 6.3 percent lower than a year ago. Even with the small gain, the figure was still 15.9 percent below the depressed levels of a year ago and an indication that prolonged housing slump is far from over.------------------------------------------Shares of General Motors have plunged to their lowest price in more than 33 years. The drop came after a Goldman Sachs analyst predicted the U.S. auto industry will get even worse and cut his rating to "Sell" from "Neutral." GM Chairman and CEO Rick Wagoner meanwhile says the company has adjusted to change in consumer demand and stressed that it has ample liquidity.--------------------------------------Yahoo is setting up a new chain of command in in the wake of Microsoft's failed takeover bid. Co-founder Jerry Yang will remain as CEO and his second-in-command, Sue Decker, will remain as president, but executive vice presidents Ash Patel and Hilary Schneider are being promoted to oversee most of the company's products. This is Yahoo's third reorganization in 19 months as it tries to snap out of a financial malaise that has ravaged its stock price, jeopardized its independence and demoralized employees.I'm James Limbach with AP Money Minute.(****END****)

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YouTube | June 26, 2008

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