New York

NEW YORK — Wall Street extended its rebound from the big summer slump Tuesday after dips in manufacturing growth and construction spending raised investors' hopes for an interest rate cut.

The market also got a boost as investors bought technology stocks viewed as bargains after being battered in last month's sell-off. Tech and telecom are still seeing takeover activity despite credit concerns and, furthermore, demand for computers, cell phones and other such products appears strong.

Although Tuesday's economic data came in a bit slower than anticipated, the market built on the sharp gains it made Friday. Ahead of the Labor Day weekend, Federal Reserve Chairman Ben Bernanke said the central bank stood ready to "act as needed" to prevent credit troubles from hurting the national economy — which investors believed hinted at the Fed's willingness to lower rates.

The Dow Jones industrial average rose 91.12, or 0.68 percent, to 13,448.86. The blue-chip index is about 4 percent below its July 19 record close of 14,000.41, but 4.7 percent above its summer closing low of 12,845.78 reached Aug. 16.

The biggest gainer among the 30 Dow companies was General Motors Corp., which rose $1.18, or 3.8 percent, to $31.92 after reporting a surprising increase in August sales.

Broader stock indicators also advanced. The Standard & Poor's 500 index added 15.43, or 1.05 percent, to 1,489.42, and the technology-dominated Nasdaq composite index surged 33.88, or 1.30 percent, to 2,630.24.

Bond prices slipped as stocks gained. The yield on the 10-year Treasury note, which moves inversely to its price, rose to 4.55 percent from 4.53 percent late Friday.

The dollar was mixed against other major currencies, while gold prices rose.

WASHINGTON, D.C.

Loans to banks rise 16.6 percent in August

Low-cost lending to financial institutions by the Federal Home Loan Bank system jumped 16.6 percent in August, the system's finance arm said Tuesday,

As the upheaval in the mortgage market worsened last month and the Federal Reserve injected billions of dollars of temporary reserves into the banking system, the 12 regional banks that make up the Federal Home Loan Bank system made $769 billion available to banks and thrifts that make mortgage loans.

New look for Sacagawea dollar approved

Congress on Tuesday approved a redesign of the Sacagawea dollar in hopes of enticing consumer and business use of the gold-colored coin..

Under legislation passed by voice vote in the House and sent to President Bush for his signature, new editions of the coin honoring the young Shoshone who helped Lewis and Clark on their trek to the Pacific Ocean more than 200 years ago will come out in 2009.

The coins will continue to depict Sacagawea and her child, but they will feature scenes on the reverse side, changed annually, commemorating the achievements of other American Indians and Indian tribes.

"These designs will take the American people to a journey of different experiences of native people by exposing them to their unique histories while preserving the memories of Sacagawea," said Rep. Dale Kildee, D-Mich., sponsor of the bill.

China

Unauthorized iPhones being sold for $1,170

BEIJING — The iPhone can be bought in China, even though Apple Inc. isn't selling it there and the gadget doesn't function properly despite costing twice as much as in the United States.

Enthusiasts willing to pay 8,800 yuan ($1,170) can buy the iPhone at electronics markets in Beijing, Shanghai, Shenzhen and Guangzhou, the computer and electronics newspaper Dian Nao Bao reported Monday.

In the United States, the combination cell phone-iPod media player can be had for as little as $499. The Chinese version can make calls and send text messages, but it can't receive calls. The voice mail function also doesn't work.

Apple is selling the iPhone only in the United States, where it's restricted to AT&T Inc.'s cellular network. Last month, hackers were successful in unlocking the device so that it could be used on other carriers.

Apple spokesman Natalie Kerris said Tuesday that the company was not aware of specific reports of its phones being sold in China but said the sales were not authorized.

California

LAX screeners get upgraded computers

LOS ANGELES — Screeners at one of the nation's busiest airports received new computers ahead of schedule as federal officials scrambled to prevent a repeat of last month's systems breakdown that stranded 17,000 travelers.

The enhancements at Los Angeles International Airport are part of a $15.3 million effort to refurbish technical systems at the country's 104 major airports and border crossings within six to nine months.

The initiative gained urgency after the Aug. 11 computer network failure in Los Angeles left inbound international travelers stuck for hours in the terminal or on airplanes because authorities were unable to screen them.

Customs officials received 100 new laptops last week. By Christmas, the airport's entire customs system will be redone, with new workstations, network switches, routers and cables, and a satellite backup system that will allow screeners to access network databases if local routers fail, said Ken Ritchhart, assistant information and technology commissioner with U.S. Customs and Border Protection.

Officials traced the source of the Aug. 11 breakdown to a malfunctioning network interface card on a single desktop computer. Failure of the card, which allows computers to connect to a local area network, started a domino effect that disabled other computer network cards. The system was up and running about 10 hours later, but the next day, it experienced an 80-minute outage blamed on a power supply failure.

McClatchy to keep stake in CareerBuilder

SACRAMENTO — Newspaper publisher McClatchy Co. said Tuesday that it will keep its 14.4 percent stake in CareerBuilder after resolving differences it had with the two other owners of the online job search site, Gannett Co. and Tribune Co.

McClatchy acquired a one-third stake in CareerBuilder as part of its purchase of Knight Ridder Inc. last year, which at the time was the second-largest newspaper publisher in the country.

In August 2006, shortly after buying Knight Ridder, McClatchy sold back part of its 33 percent stake in CareerBuilder to Gannett and Tribune. At the time, McClatchy also entered an agreement that limited the number of CareerBuilder offerings that its newspapers could sell.

McClatchy said Tuesday that it has been in talks with Gannett and Tribune since earlier this year to renegotiate its affiliate agreement with CareerBuilder so it would be "more equitable" to McClatchy's newspapers.

— From wire reports