Dow Jones off to best start in nearly two decades

NEW YORK – The Dow logged its best start to the year in almost two decades.

Stocks rallied in the first week of the year after U.S. lawmakers reached a deal to avoid the “fiscal cliff,” and then pushed higher toward record levels as optimism about the housing market recovery grew. Decent company earnings for the fourth quarter and an improving job market also helped lift markets.

The Dow Jones industrial average ended the month up 5.8 percent, its strongest January since 1994, according to S&P Capital IQ data. The Standard & Poor’s 500 finished the month 5 percent higher, its best start to the year since 1997.

On Thursday, stocks drifted lower as investors digested more earnings results and reports on the economy.

Consumer spending slows, income surges in December

WASHINGTON – U.S. consumers increased their spending in December at a slower pace, while their income grew by the largest amount in eight years. Income surged because companies rushed to pay dividends before income taxes increased on high-earners.

The Commerce Department said Thursday that consumer spending rose 0.2 percent last month. That’s slightly slower than the 0.4 percent increase in November.

Income jumped 2.6 percent in December from November, the biggest gain since December 2004. Wages and salaries grew 0.6 percent.

Investigators confiscate phony sports merchandise

NEW ORLEANS – Investigators have confiscated more than $13.6 million worth of phony sports merchandise over the past five months and expect to seize more in New Orleans during Super Bowl week, a federal law enforcement official said Thursday.

U.S. Immigration and Customs Enforcement Director John Morton said authorities also have shut down more than 300 websites selling counterfeit goods as part of an enforcement effort dubbed “Operation Red Zone.” The operation targeted international shipments of jerseys, hats and other souvenirs entering the United States for sale by stores, flea markets and street vendors.

More than 160,000 counterfeit items, mostly purporting to be official Super Bowl and other NFL merchandise, were seized. A total of 23 people have been arrested on related charges since September.

Berkshire Hathaway adds Greensboro, N.C., paper

OMAHA, Neb. – Warren Buffett’s Berkshire Hathaway Inc. said Thursday it is adding the Greensboro, N.C., News & Record to its growing newspaper division.

Berkshire bought the 122-year-old daily newspaper from Landmark Media Enterprises, based in Norfolk, Va. Financial terms were not disclosed.

Newspapers remain a relatively small part of Berkshire Hathaway, which owns an assortment of more than 80 subsidiaries and holds major stakes in companies such as Coca-Cola Co., Wells Fargo and IBM.

Buffett has said he thinks newspapers will continue earning a decent return as long as they remain the primary source of information about their communities.

— From news service reports