(Reuters) - General Motors Co has withdrawn its application for $14 billion in subsidized loans from the U.S. Department of Energy, saying it has the financial strength to fund investment in more fuel-efficient and electric vehicles. "This decision is based on our confidence in GM's overall progress and strong, global business performance," said Ed Welburn, GM design chief, said in a speech. "Withdrawing our DOE loan application is consistent with our goal to carry minimal debt on our balance sheet."

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(Reuters) - Standard & Poor's cut Japan's credit rating on Thursday for the first time since 2002, saying Tokyo lacked a plan to deal with its mounting debt, in a warning that will rattle other heavily indebted rich nations. The agency reduced Japan's long-term sovereign debt rating by one notch to AA minus, three levels below the highest possible rating. It said Japan's fast-aging population, persistent deflation and the loss of the coalition's upper house majority had compounded the government's fiscal challenge.

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(Reuters) - Contracts for pending sales of previously owned homes rose faster than expected in December after the prior month's sales were revised lower, data from a real estate trade group said on Thursday. The National Association of Realtors Pending Home Sales Index, based on contracts signed in December, was up 2 percent to 93.7 from a downwardly revised reading of 91.9 in November.

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(Reuters) - Lockheed Martin (LMT.N), L-3 Communications (LLL.N) and Raytheon Co (RTN.N) beat Wall Street earnings expectations, aided by cost-cutting and higher sales, boosting shares of U.S. defense contractors. Industry leader Lockheed Martin forecast 2011 profit above analysts' estimates, and L-3 boosted its full-year outlook. Raytheon forecast higher profit for the year.

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(Reuters) - New U.S. claims for jobless benefits surged last week as snowstorms in some parts of the country kept workers at home, but the underlying trend pointed to an only gradual labor market improvement. Initial claims for state unemployment benefits jumped 51,000 to a seasonally adjusted 454,000, the highest since late October, the Labor Department said on Thursday. That was the largest weekly increase since September 2005. The rise exceeded economists' expectations for a slight gain to 405,000.

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(Reuters) - Slimmed-down workforces and fatter profit margins brought another round of better-than-expected results from U.S. manufacturers, though some investors worried that the nation's prolonged high unemployment rate threatens continued economic recovery. Investors scrutinized results from companies including Caterpillar Inc (CAT.N), Tyco International Ltd (TYC.N) and Eaton Corp (ETN.N), with some wondering when strong industrial demand would begin to affect the wider economy and create jobs.

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(Reuters) - AT&T Inc posted revenue that missed estimates and it added fewer wireless subscribers than expected in its final quarter as exclusive U.S. provider for the Apple Inc iPhone, Its shares fell 3 percent as some investors were also disappointed by the company's 2011 expectation for earnings per share growth in the mid-single-digit percentage range, according to Piper Jaffray analyst Christopher Larsen.

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(Reuters) - Procter & Gamble Co (PG.N) and smaller rival Colgate-Palmolive Co (CL.N) posted lower quarterly net income, hurt by sluggish sales in developed markets like the United States and Western Europe. Household products makers have used promotional pricing and coupons to woo shoppers who shunned pricier brands during the recession. Now that consumer confidence is rising, the companies hope people will once again covet name-brand items.

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(Reuters) - Drugmakers AstraZeneca (AZN.L), Novartis (NOVN.VX), Eli Lilly (LLY.N) and Bristol-Myers Squibb (BMY.N) issued cautious 2011 forecasts, bracing the sector for challenging patent expiries and price pressures from U.S. health reforms. While AstraZeneca cheered investors with above-forecast fourth-quarter earnings on Thursday and a surprise promise to buy back $4 billion of shares, it joined its Swiss rival in warning of pressure from generics, U.S. reforms and price cuts.

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(Reuters) - Oil giant BP Plc is expected to reinstate its dividend when it unveils fourth quarter earnings on Tuesday, after it canceled the payout at the height of the oil spill last summer. Analysts predict BP will announce a payout of 7 cents/share for the quarter, down from the 14 cents/share dividend for the fourth quarter of 2009.

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