By CHRISTOPHER S. RUGABER, AP Economics Writer Christopher S. Rugaber, Ap Economics Writer – 12 mins ago
WASHINGTON – Orders for durable goods rose last month by the largest amount in two years, as the manufacturing sector rebounded from the depths of the recession.

The Commerce Department said Wednesday that orders for goods expected to last at least three years increased 4.9 percent in July, the third rise in the past four months. Analysts expected a 3 percent increase. Orders for June were revised up to a 1.3 percent drop, from a 2.2 percent decline.

The better-than-expected durable goods data followed positive readings Tuesday about consumer sentiment and home prices. A report on new homes sales due out later Wednesday morning may provide more good news if it shows a fourth straight increase in July as expected.

By KEN THOMAS and STEPHEN MANNING, Associated Press Writers Ken Thomas And Stephen Manning, Associated Press Writers – 47 mins ago

WASHINGTON – Car dealers will have a bit more time to get reimbursed for their Cash for Clunkers deals after the government extended the deadline for filing applications for the $3 billion government incentives into Tuesday evening.

All sales under the program ended Monday evening. But after already pushing back the deadline to submit records for the car rebate deals to noon Tuesday, the Transportation Department said the deadline would be extended to 8 p.m. EDT because of problems with its Web site.

AP – California Assembly Speaker Karen Bass plans to strip the most controversial provisions from a Senate-approved plan that would have trimmed the state’s prison population by 27,000 inmates.

AP – When the financial system was teetering, Federal Reserve Chairman Ben Bernanke flooded it with trillions of dollars to save the banks and free up credit for consumers and businesses.

AP – When President Bill Clinton’s relationship with a White House intern erupted a decade ago, Sen. John Ensign called for his resignation.

Reuters – The Obama administration will trim its budget deficit forecast for fiscal 2009 to $1.58 trillion, after scrapping money earmarked for bailing out more banks, officials said on Wednesday.

AP – Hurricane Bill became a dangerous Category 4 storm with top sustained winds near 135 mph early Wednesday, and forecasters said it could get even stronger as it howls over the open Atlantic.

Reuters – The United States economy is out of the emergency room and appears to be on a slow path to recovery,, Warren Buffett wrote in an opinion column in the New York Times.