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By Bill Freehling
The four-week average, a less volatile measure, increased 6,750 to 365,750, after falling to a four-year low the previous week.
Supervalu will sell five grocery chains
NEW YORK--Supervalu Inc. says it reached a deal to sell five of its biggest grocery chains--Albertsons, Acme, Jewel-Osco, Shaw's and Star Market--for $100 million in cash plus more than $3 billion in debt. The sale to AB Acquisition, an investor group led by Cerberus Capital Management, will include 877 stores. Following the sale, Supervalu will consist of a food wholesaler, Save-A-Lot, and regional chains Cub, Farm Fresh, Shoppers, Shop 'n Save and Hornbacher's.
New lending rules
WASHINGTON--Federal regulators for the first time are laying out rules aimed at ensuring that mortgage borrowers can afford to repay the loans they take out.
The rules being unveiled Thursday by the Consumer Financial Protection Bureau impose a range of obligations and restrictions on lenders, including bans on the risky "interest-only" and "no documentation" loans that helped inflate the housing bubble.
Lenders will be required to verify and inspect borrowers' financial records. The rules discourage them from saddling borrowers with total debt payments totaling more than 43 percent of the person's annual income. That includes existing debts like credit cards and student loans.
Stocks post gains
NEW YORK--Stocks closed higher on Wall Street Thursday, sending the Standard & Poor's 500 index to another five-year high.
The S&P 500 closed at 1,472 Thursday, its highest point since December 2007. Its gain on the day was 11 points, or 0.8 percent.
The Dow Jones industrial average closed with a gain of 80 points at 13,471. The Nasdaq composite gained nearly 16 points to 3,121.
Rising stocks outnumbered falling ones two to one on the New York Stock Exchange.