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The vast U.S. services sector expanded against last month, extending a three-year run of growth, while European business optimism hit an eight-month high, suggesting the euro zone economy was starting to recover.

U.S. home prices jumped by the most in 6 1/2 years in December, spurred by a low supply of available homes and rising demand.

The Greek government says its painful austerity drive is paying off, with the budget deficit reduced to 6.6 percent of annual output in 2012 from 9.4 percent a year earlier. A finance ministry statement Monday said that, not counting the cost of servicing Greece's debt mountain, the government posted a modest budget surplus of €434 million ($588 million) last year.

U.S. factory orders increased in December even though companies trimmed their orders for goods that signal investment plans.

Inside the suite of a nondescript industrial park in west Phoenix, an armed security guard in a bulletproof vest guards dozens of tents filled with lush plants that supply medical-marijuana patients throughout the state.

U.S. employers added 157,000 jobs in January, and hiring was much stronger at the end of 2012 than previously thought, providing reassurance that the job market held steady even as economic growth stalled.

The Dow rose higher and briefly topped 14,000 Friday, hitting a milestone not seen since before the financial crisis rocked the world economy.

High-tech batteries. Advanced wind turbines. Sensitive telecommunications gear. Last year saw a spike in concern over Chinese foreign investment in the United States, as election year politics, economic anxiety and a record level of dealmaking all aligned. Read full article >>

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 Federal Reserve, noting that economic growth had “paused” in recent months, said Wednesday that it would continue its efforts to stimulate the economy for as long as it deemed necessary.