Business Highlights

Buffett's big bet: $34B on 2nd-largest railroad

NEW YORK (AP) — The biggest name in investing is making what he calls an "all-in wager" on the U.S. economy — $34 billion to own a railroad that hauls everything from corn to cars across the country.

The acquisition of Burlington Northern Santa Fe, the nation's second-largest railroad, would be the biggest ever for Warren Buffett's Berkshire Hathaway investment company.

Berkshire Hathaway Inc. already owns a 22 percent stake in Burlington Northern and would buy up the rest under the deal, for a total value of $34 billion. It still needs approval from Burlington shareholders and antitrust regulators, both expected early next year.

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Factory orders rise 0.9 percent in September

WASHINGTON (AP) — Orders to U.S. factories rebounded in September, helped by strength in autos, heavy machinery and military aircraft.

The fifth increase in six months bolstered hopes that a revival in manufacturing will help support an overall economic recovery. The worry is that if consumer spending falters in coming months, orders will slump again.

The Commerce Department said Tuesday that orders rose 0.9 percent in September, slightly better than the 0.8 percent gain economists had expected. Demand increased for both durable goods, and nondurable goods such as chemicals and energy products.

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Auto sales show industry beginning to stabilize

DETROIT (AP) — After months of roller coaster-like sales, the auto industry offered signs of recovery from its yearlong slump on Tuesday, as most automakers reported higher levels of U.S. sales in October.

GM, the largest U.S. automaker, reported its first monthly sales gain in almost two years, while Hyundai and Subaru were huge winners thanks for their popular models and fuel-efficient sedans. Other top automaker — Toyota, Ford, Nissan —also posted higher sales.

The mood was in contrast to a year ago, when consumers were frightened away from showrooms by the early effects of the financial meltdown, plunging stock markets and the credit freeze.