AP Executive Morning Briefing

The top business news from The Associated Press for the morning of Tuesday, May 22, 2007:

U.S., China Set to Discuss Economics

WASHINGTON (AP) _ Both the United States and China are bringing huge delegations for their second round of high-level discussions aimed at lessening economic tensions. But it's unclear whether there will be enough success at meetings beginning Tuesday to blunt growing protectionist pressures in Congress.

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Chinese Stocks Hit Record High

SHANGHAI, China (AP) _ Chinese stocks rose to a fresh record high for the second day in a row on Tuesday, as property developers jumped on expectations for a stronger yuan and robust housing demand. The Shanghai Composite Index gained 0.9 percent to 4,110.38, breaking above 4,100 for the first time. The Shenzhen Composite Index climbed 1.4 percent to 1,198.41, also a record high.

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Railroads Bask in Buffett Favor

OMAHA, Neb. (AP) _ Freight railroads and their investors can feel confident no new railroads will try to create a competing network _ the cost is too high. So the six major players in the industry will continue helping businesses connect with suppliers and customers for years to come.

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Boeing Debuts New Production Line

EVERETT, Wash. (AP) _ The forward and center fuselage sections of Boeing Co.'s first 787 look lonely at one end of the sprawling factory. There are no overhead cranes that lower pieces of the plane into position, no huge fixed tools scattered across the length of the production line. Instead, Boeing has designed a unique set of mobile assembly tools that move around the factory floor as they fasten together pieces of a mostly prefabricated jet.

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CompUSA to Narrow Its Retail Focus

DALLAS (AP) _ CompUSA Inc., the electronics retailer that recently announced it would close more than half its stores, will attempt to rebuild by narrowing its focus on core customers including gadget lovers and small and medium businesses. Chief Executive Roman Ross says the company would no longer try "to be everything to everyone."

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Stocks Mixed; S&P Hits Record, Retreats

NEW YORK (AP) _ Wall Street reached another milestone during a muted session Monday, when the Standard & Poor's 500 index briefly passed its record close of 1,527.46 for the first time in more than seven years. The S&P 500, considered by market professionals the best indicator of stock performance, surpassed the mark shortly after noon following news of a fresh spate of takeover deals. The broad market index has lagged the Dow Jones industrial average in recovering from Wall Street's prolonged slump earlier this decade.

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Oil Prices Steady Above $66 a Barrel

SINGAPORE (AP) _ Oil prices were little changed Tuesday after jumping above $66 a barrel in the previous session on worries about gasoline supply. Light, sweet crude for June delivery was flat at $66.27 a barrel in Asian electronic trading on the New York Mercantile Exchange midmorning in Singapore. It had gained as much as 5 cents in early trade. On Monday, the contract climbed $1.33 to $66.27 per barrel.

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Universal Studios Plans S. Korea Park

SEOUL, South Korea (AP) _ Universal Parks & Resorts and a local partner signed an agreement Tuesday aimed at establishing a Universal Studios theme park in South Korea that they want to see up and running in 2012. "What we are hoping to do is to bring in a world class attraction not only for the Korean people but to draw tourism to this country," Frank P. Stanek, president of USKOR & Associates Co., Universal's South Korean partner, said at a press conference, citing the attraction of possible visitors from nearby China.

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Alltel CEO Pledges Continued Growth

LITTLE ROCK, Ark. (AP) _ Alltel Corp.'s chief executive says the wireless company will continue to pursue its strategy of growing in rural markets, even though it will be carrying a tremendous debt load to finance its $24.7 billion buyout by two private investment firms. A day after Alltel announced that TPG Capital and GS Capital Partners would buy the company for $71.50 per share, Alltel CEO Scott Ford said Monday that the company will still be able to grow. He noted that it has nearly completed a $3 billion share repurchase program, has been paying regular dividends and has been spending on capital improvements.

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Apollo Group's 2Q Profit Down 24 Percent

PHOENIX (AP) _ Apollo Group Inc., a for-profit education provider that runs the University of Phoenix, said Monday its earnings slumped 24 percent in the second quarter as the company released its first official earnings statement in more than a year. The company's net income dropped to $60.3 million, or 35 cents per share, for the three month period that ended Feb. 28 compared with $79 million, or 45 cents per share, in the same period a year ago. Stripping out stock-based compensation expenses and other items, the company earned 44 cents per share in the quarter.

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Gold Prices

Hong Kong (AP) _ Gold closed at $664.15 an ounce on Tuesday in Hong Kong, up $2.30 an ounce from Monday's close of $661.85.

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Japan Markets

TOKYO (AP) _ Japanese stocks rose for a second straight session Tuesday, led by technology and banking shares following upbeat earnings forecasts.

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Dollar-Yen

TOKYO (AP) _ The dollar rose slightly in Asia Tuesday as strength on Wall Street and healthy earnings reports from American companies eased worries about the U.S. economy.

A service of The Associated Press. Copyright 2007 All rights reserved.