McDonald's revamps grilled chicken to cut ingredients

NEW YORK — McDonald's says it's simplifying its grilled chicken recipe to remove ingredients people might not recognize, marking the latest sign the company is rethinking its menu to keep up with changing tastes.

The company says it expects the new "Artisan Grilled Chicken" to be in its more than 14,300 U.S. stores by the end of next week, in products including a new sandwich, as well as existing sandwiches, wraps and salads.

It says the biggest change is the removal of sodium phosphates, which it said was used to keep the chicken moist, in favor of vegetable starch. The new recipe also does not use maltodextrin, which McDonald's said is generally used as a sugar to increase browning or as a carrier for seasoning.

Jessica Foust, director of culinary innovation at McDonald's, said the changes were made because customers said they want "simple, clean ingredients" they are familiar with.

"Maltodextrin is just not something they have in their pantries," Foust said.

The change comes as McDonald's fights to hold onto customers amid the growing popularity of places like Chipotle that position themselves as more wholesome alternatives to traditional fast-food.

Already, that "clean label" trend has prompted numerous restaurant chains and packaged food makers to reformulate products, even while standing by the safety and quality of their previous recipes. Subway also introduced a new grilled chicken recipe earlier this year that it said had no artificial flavors or preservatives. And Panera Bread has said it plans to purge artificial colors, flavors and preservatives from its food by 2016.

As ingredient quality becomes a more powerful marketing advantage, executives at McDonald's have also been trying to freshen up the company's image and shake perceptions that it serves junk food. TV ads and signs in stores, for instance, are playing up the fact that Egg McMuffins are made with freshly cracked eggs. And last month, McDonald's announced it would start asking suppliers to curb the use of antibiotics in raising chickens.

As for the new grilled chicken recipe, McDonald's said it will now be cooked with a blend of olive oil and canola oil, instead of liquid margarine. And Foust said she thinks customers will notice that it has "more of a lemon herb type flavor."

"It's a very real chicken experience — something closer to what you make in your own home," she said.

Roger Clemens, an adjunct professor of pharmaceutical sciences at the University of Southern California's School of Pharmacy and a former president of the Institute of Food Technologists, said sodium phosphates could be used to help chicken keep its moisture and texture when it's being frozen and shipped.

"If you're going to cook a fresh chicken, it's not a big concern. But if you're going to ship a chicken, there's a change in structure," he said.

Maltodextrin, meanwhile, might be used as a coating on chicken to distribute seasonings evenly, he said.

On its website, McDonald's lists ingredients for its new "Artisan Grilled Chicken" including salt, vegetable starch, sugar, garlic powder, lemon juice concentrate, honey and onion powder. Terri Hickey, a McDonald's representative, said the new chicken will have 12 ingredients, compared with 18 ingredients for the previous grilled chicken recipe.

Mike Andres, who took over as president of McDonald's USA last year amid ongoing sales struggles, had said in December the company was looking at shrinking its ingredients lists.

Whether the new grilled chicken recipe helps change perceptions about the food at McDonald's remains to be seen. The change comes after McDonald's Corp. saw sales and customer visits at established U.S. restaurants slip two years in a row. In January, the company named Steve Easterbrook, its chief brand officer, to take over as CEO for Don Thompson. That change took effect in March, right before a "Turnaround Summit" for U.S. franchisees.

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Follow Candice Choi at www.twitter.com/candicechoi

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Why businesses are speaking out on religious-objections laws

NEW YORK — A bevy of big-name businesses including Apple, Gap and Levi Strauss are publicly speaking out against religious-objections legislation in states such as Indiana and Arkansas.

The world's largest retailer and America's largest private employer, Wal-Mart Stores Inc., waded into the debate this week when its CEO urged Arkansas Gov. Asa Hutchinson to veto a bill in Arkansas that critics said would open the door to discrimination against gays and lesbians.

In early 2014, a similar corporate outcry used threats of reduced business to help convince Arizona Gov. Jan Brewer to veto legislation that would have allowed businesses to refuse service to gays based on the owner's religious beliefs.

Here are some reasons corporate America is raising its voice on this issue:

SOCIAL MEDIA MACHINE

Gone are the days when companies could just sit tight and hope that hot-button topics would blow over without them having to make a statement about it. These days businesses get instant feedback from customers on how they feel about an issue, thanks to social media platforms such as Facebook and Twitter.

Social media catapulted objections to Indiana's law to the forefront fast, said Laura Ries, president of marketing strategy firm Ries & Ries. That helped force companies to make their voices heard publicly, she said.

The companies can't stay silent because many customers would see that as tacit support of the laws, she said.

In addition, many of the companies that have weighed in deal directly with consumers. Because so much of the debate centers on whether businesses can deny services to certain groups, Wal-Mart and other retailers could feel the need to forcefully send a message that they're open to all customers.

John Challenger, CEO of outplacement firm Challenger, Gray & Christmas, said that speaking out on the religious-objections legislation may not have been too difficult for some companies because it is not as divisive as some previous hot topics in the U.S., such as gun control.

"This issue seems to so many to be such a wrong," he said.

IT'S ABOUT CUSTOMERS AND WORKERS

Companies know that they have to continuously appeal to the concerns and interests of both employees and customers. That keeps customers coming back to spend money, workers happy and both groups loyal.

Increasingly, companies feel they have to speak up on social issues that could prompt backlash from customers or make companies lose out on talented employees, Challenger said.

"Big U.S. companies realize that their customers and employees care that the company is doing the right thing," he said.

With the general public becoming more supportive of gay rights and against all forms of discrimination, Ries says businesses are seeing that they need to keep pace with evolving views.

"Companies want to be ready for the future and supportive of employees and consumers," she said.

Nancy Rafuse, Practice Group Chair for Labor & Employment at Atlanta's Polsinelli, said that today's businesses want to be inclusive and have a "diversity of people and thoughts and ideas" that will help the business appeal to customers who are also diverse.

THE BIG ECONOMIC PICTURE

Businesses are also worried about the economic impact of threatened boycotts of states that pass such laws. That can hurt tourism or cause companies to cut back on business in the state — and those effects can reverberate through a regional economy quickly.

In the case of Arizona in 2014, for example, American Airlines CEO Doug Parker suggested his airline would cut flights if the state's business, tourism and convention industry didn't remain healthy.

"An economic boycott is how you get folks to listen," Rafuse said.

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Emirates, Etihad planes involved in air traffic scare

DUBAI, United Arab Emirates — Jetliners from the United Arab Emirates' two main airlines avoided a possible midair collision after they got too close to each other earlier this week.

The incident happened Sunday as passenger planes from Dubai-based Emirates and Abu Dhabi-based Etihad Airways were traveling in opposite directions between the Gulf federation and the island nation of Seychelles.

Both carriers have recently rerouted flights to the archipelago nation to avoid Yemeni airspace due to fighting there.

Emirates, the Middle East's biggest carrier, said its flight 706 was returning to Dubai when what it called "an air traffic control incident" happened in airspace monitored by air traffic controllers in Mumbai, India.

It said it informed authorities of the incident and later filed an air safety report that will be forwarded to investigators in the Indian city.

"We will be cooperating fully with Mumbai Air Traffic Control in the subsequent investigation," the carrier said in a statement.

Both it and Etihad said that passenger safety was not compromised.

Neither carrier would say how close the two planes came to each other, though they were close enough that an onboard crash warning system issued what is known as a "resolution advisory," according to an official at one of the airlines, who was not authorized to speak publicly.

That level of alert, more serious than a broader "traffic advisory," tells pilots to take urgent action such as climbing or descending to avoid a possible collision.

"There was an error made somewhere along the way," either by air traffic control, the crew or both, said Patrick Smith, a commercial airline pilot and author of "Cockpit Confidential."

Smith said receiving a resolution advisory is rare but not unheard of. "This equipment is there to prevent a near miss," he said.

Etihad said the traffic collision avoidance system onboard the Airbus A320 from Abu Dhabi "ensured that safe vertical separation of both aircraft was maintained at all times."

Emirates and Etihad have both grown rapidly in recent years, enticing long-haul transit passengers through their Gulf hubs aboard relatively young aircraft.

Emirates is owned by the government of Mideast commercial hub Dubai, while Etihad is controlled by the oil-rich Emirati capital, Abu Dhabi.

They each operate multiple flights weekly to Seychelles, a tropical tourism destination that has built close ties to the Emirates.

The Emirates' General Civil Aviation Authority said the circumstances and cause of the incident are not clear, and noted it has mandated "the latest technology" onboard aircraft it certifies. It said it has reached out to Indian regulators to help in the investigation but has received no response so far.

"GCAA is following up on the investigation process and is committed to ensure a safe and secure civil aviation system," it said.

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Follow Adam Schreck on Twitter at www.twitter.com/adamschreck

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Hot cars at the New York International Auto Show

NEW YORK — The New York International Auto Show opens this week with a mix of mainstream sedans and glitzier models from automakers across the globe.

With a nod to everyday car buyers, a handful of new midsize cars are being introduced, including the Malibu from Chevrolet and the Optima from Kia. Honda has kept its auto show offering under wraps, but the expectation is for a new Civic compact. The youth-oriented Scion brand is showing off its first-ever sedan.

Lovers of luxury and performance won't be disappointed. Among the introductions are the 2016 Lexus RX, the country's most popular luxury SUV, and the 570S, a high-performance sports car from Formula One racing company McLaren that's priced under $200,000.

Media days are on Wednesday and Thursday and the public is allowed in starting Friday through April 12. Here are highlights of some of the models to be introduced:

CADILLAC CT6: This is GM's latest effort to compete with the BMW 7-Series and the Mercedes S-Class in the big rear-drive luxury sedan category. Caddy's previous full-size model, the DTS, embodied old Detroit luxury — a spongy boat built for straight-line freeway driving. This time, though, GM says the flagship CT6 has an aluminum-intensive body with 11 different materials for strength, performance and efficiency. The car has a spacious interior, but the weight and agility of smaller cars. GM says it's lighter than the smaller BMW 5-Series. The CT6 is powered by a new 3-Liter twin-turbo V6 with 400 horsepower, plus two less-powerful engines from the previous generation. Safety features include night vision that helps identify people and large animals with heat signatures on a dashboard display. Pricing and gas mileage weren't announced.

LEXUS RX: Toyota's luxury brand revamps the top-selling luxury SUV in the U.S., the RX, for 2016, with a new aerodynamic look, an updated engine and a more spacious and luxurious interior. The sleeker outside makes the SUV quieter and more sure-footed at highway speeds, according to Lexus. The company says it upgraded the 3.5-Liter V6, pushing horsepower from 270 to 300. A new eight-speed automatic transmission boosts gas mileage. There's also the hybrid 450h. Lexus sold more than 107,000 of RXs last year, up 3.4 percent from a year ago. The new RX goes on sale sometime in the final three months of this year. Pricing and fuel economy were not announced. But the RX 350 now starts around $41,000.

JAGUAR XF: The sexy Jaguar XF sedan gets a makeover to look more like a coupe. Additional aluminum lightens the car by up to 265 pounds. The second generation of the car, which was shown in London last week with a high-wire journey across Canary Wharf, also gets a new supercharged V6 engine with 340 horsepower and 380 horsepower ratings. An updated suspension is designed to give the XF a more comfy ride, yet better handling than the current model. With an eight-speed automatic transmission, it can go from 0-60 mph in 5.1 seconds. Top speed is electronically limited to 155 mph. Pricing wasn't released, but the current model starts around $50,000. The XF goes on sale in the winter of 2015.

PORSCHE BOXSTER SPYDER: With the roar of 3.8-Liter, 375 horsepower flat six engine, Porsche introduced an open-top version of its latest Boxster model Tuesday night. Porsche says the Spyder is the fastest and most powerful Boxster ever. The car, with wide use of aluminum to make it lighter, can go from zero-to-60 in 3.8 seconds. That beats the 4.7 seconds of the Boxster GTS, currently at the top of the Boxster lineup. The sculpted mid-engine two-seat Spyder also has a top speed of 180 miles per hour. The Boxster Spyder starts at $82,100. Orders are being taken now in the U.S., Porsche's largest market. But it will take four to five months for delivery.

MCLAREN 570S: British supercar maker McLaren Automotive believes its ready to tackle the U.S. market with a decked-out luxury sports cars priced under $200,000. The 570S, a car that McLaren says will merge racing technology with day-to-day driving at a price around $190,000, goes on sale in November. McLaren, best known for Formula One race cars, says the 570S is critical to its long-term viability as a manufacturer. Even though it's cheap for a McLaren, the 570S is no slouch. The mid-engine, rear-drive 570S has a carbon fiber chassis and a 562 horsepower, 3.8-Liter turbocharged V8. It can go from zero to 62 mph in 3.2 seconds and has a top speed of 204 mph. Just what you need for the daily commute.

SCION iM, iA: Toyota is looking to a new sporty hatchback and a low-cost sedan to revive flagging sales of its youth-oriented Scion brand. The brand was started in 2003 to lure people 18 to 34 to the aging Toyota family. But the average age of the head of a Scion-owning household is 51. Brand chief Doug Murtha says many Scion buyers are parents of millennials. The hatchback iM, priced under $20,000, is aimed at those who want a sporty car that can haul things. The iA sedan, to cost around $16,000, looks more like a coupe but has enough room to tote people. The iA's 1.5-liter engine can get up to 42 miles per gallon on the highway. The sportier hatchback, with a 1.8-liter engine, gets up to 37 mpg. Both cars hit showrooms in September.

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US manufacturing slows as orders and hiring weaken

WASHINGTON — U.S. factories expanded last month at a weaker pace, with orders growing more slowly and hiring essentially flat.

The Institute for Supply Management, a trade group of purchasing managers, said Wednesday that its manufacturing index slipped to 51.5 in March from 52.9 in February.

It was the fifth straight drop. Still, any reading above 50 signals expansion.

U.S. manufacturers have faced a drag in recent months from falling oil prices, a rising dollar, winter storms and a since-resolved shutdown of West Coast ports that has created a backlog of shipments.

Some drilling rigs have stopped as oil prices have fallen more than 50 percent since June to below $50 a barrel, curbing demand for pipelines and machinery from factories. Simultaneously, the dollar has risen in value against the euro and other currencies, making American-made goods more expensive abroad and cutting into exports.

Demand for exports has been contracting — rather than expanding — for the past three months, according to the survey.

A "stronger dollar and soft overseas demand are still an obstacle for export-orientated producers," said Paul Ashworth, chief U.S. economist at Capital Economics, who added that the slowdown wasn't "alarming" because non-manufacturing companies still appear to be faring well.

Still, there is the expectation that manufacturing will rebound as the impact of the winter weather and port shutdowns fade. Production improved slightly between February and March, a sign that growth may accelerate in the spring.

"We're well positioned for the distinct possibility of an uptick, an upswing, in momentum as we go forward, not unlike last year when started with a particularly harsh winter," said Bradley Holcomb, chairman of the ISM's manufacturing business survey committee.

One paper products manufacturer said in the survey that business is starting to improve as it's "thawing out of this crazy winter."

Out of 18 manufacturing industries, 10 reported growth and seven reported an outright decline in March. Among the sectors that declined are apparel, textiles, petroleum and coal, electrical equipment, plastics and rubber products and furniture.

"In balance, we're still positive," said Holcomb, adding that "every (sector) gets weighted relative to their contribution" to gross domestic product.

Multiple other reports show that manufacturing has downshifted in recent months.

Orders for long-lasting goods dropped in February, the third decline in four months, the Commerce Department reported last week.

Falling demand for commercial aircraft, autos and machinery caused durable goods orders to drop 1.4 percent in February.

Factory output also tumbled in February, the Federal Reserve reported this month. The 0.2 percent decline was led by drops in the production of autos, machinery, appliances and primary metals such as steel.

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States rewrite microbrew laws as demand for craft beer grows

PHOENIX — Four Peaks Brewing Co. has grown over the last two decades from a historic red-brick microbrewery and restaurant into an Arizona staple that served nearly 1 million gallons of beer last year, including its popular Kilt Lifter ale.

The company has also become a mainstay in the corridors of the Arizona Legislature. Three times in the past 10 years, it has helped persuade lawmakers to change state law to increase a cap on beer production for microbreweries.

The increasing popularity of craft beer around the country has legislatures nationwide rewriting laws to accommodate microbreweries as they exceed production limits.

Arizona Republican Gov. Doug Ducey went to Four Peaks' original location in Tempe on Tuesday to sign a law that expands the caps, touting it as a business-friendly measure to assist the state's burgeoning craft beer industry.

"Arizona has a booming craft beer industry and it's growing every day. I want to ensure that it continues to thrive, unimpeded by overly burdensome regulations," Ducey said.

Americans' enthusiasm for microbrews reached new heights last year as craft brewers accounted for 11 percent of the U.S. beer market, according to the Brewers Association.

But the popularity has craft breweries bumping up against the country's longstanding three-tier system that governs the beer industry. It was designed to prevent mega breweries such as Anheuser-Busch from controlling beer production, distribution and retail sales at restaurants and stores. The three tiers consist of large breweries, distributors and microbreweries.

In many states, microbreweries can serve their beer at their locations and brewpubs, but lose that ability when they exceed production caps.

Several states including Arizona, North Dakota and Wyoming passed legislation allowing craft breweries to brew more beer, while Montana lawmakers defeated a similar measure. Other states have been revising laws to help the craft brewery business by removing restrictions on "growlers" — 72-ounce beer containers that people can refill and take home.

The laws are being rewritten because the craft brew business has grown so much that it is quickly exceeding the production caps.

The bill Ducey signed Tuesday strikes a compromise between producers and distributors: Microbreweries can keep up to seven retail locations and brew up to 6.2 million gallons of beer per year. After that, they'll have to give up their restaurants and apply for a producer license.

Distributors and producers agreed the compromise allows small breweries to flourish without taking power away from distributors.

"I think the state has been responsive to the growth of the micro-sector, whether it's beer, wine or distilleries and at the same time being careful to not eliminate the benefits of the three-tier system," said Don Isaacson, a lobbyist for wholesale wine and liquor distributors.

As craft breweries continue to grow around the country, Isaacson expects Arizona's new law will become model legislation for other states.

Rob Fullmer, executive director of the Arizona Craft Brewer's Guild, said the compromise will help bring more local and out-of-state breweries to the state.

"This was a win across the board not just for brewers but for Arizona. These are places where communities meet, these are jobs, these are bellwethers of how well the state and the neighborhoods are doing," Fullmer said.

Four Peaks is the only local brewery nearing the old limit of 1.2 million gallons.

"It basically raises the limit to an amount that we all agree on. We won't come back to the table and ask for more," said Jim Scussel, co-owner of Four Peaks.

Scussel said existing Arizona law prevented craft breweries such as Four Peaks from reaching their full potential. New breweries rely on restaurants to build their brand, gain exposure and sell beer at a rate that's profitable for the small amounts they're producing. If they go over the production cap, they can't keep their restaurants.

"At a restaurant you sell $4 or $5 pints. To make the numbers work, you need a restaurant," Scussel said. "That's why restaurants are vital to small breweries, just for that marketing and that revenue period."

Scussel said Four Peaks plans to use the new law to increase production and distribution within the state and then expand regionally.

"We want Arizona to be on the map for craft brewers," he said.

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Falling corn prices stalk Monsanto, sending 2Q profits lower

WASHINGTON — Monsanto reported lower-than-expected earnings as slumping corn prices push farmers toward other crops, crimping sales of the company's best-selling biotech corn seeds.

The St. Louis agricultural business giant reported a second-quarter profit of $1.42 billion, or $2.92 per share, down from $1.67 billion, or $3.15 per share, in the prior year period. Sales slid to $5.2 billion from $5.8 billion.

Analysts surveyed by Zacks Investment Research predicted earnings of $2.96 per share on sales of $5.76 billion.

Monsanto's biotech seeds have genetically engineered traits that help farmers increase their crop yield, despite their higher costs.

U.S. farmers are expected to plant fewer acres of corn for the third consecutive year in 2015, down 2 percent from last year, according to survey figures from the U.S. Department of Agriculture. More farmers are favoring soybeans because they cost less to grow and prices farmers receive for soybeans haven't fallen as quickly as corn. Soybeans also can withstand broader weather variations.

In a conference call, company executives said soybean demand is growing by more than 200 million bushels per year and Monsanto is poised to take advantage with expanding varieties. It expects to penetrate 30 million acres in South America in 2016.

The positive outlook for soybean growth in South America and the U.S. helped push the company's stock higher, despite the profit miss. Shares of Monsanto Co., which have declined roughly 6 percent since the beginning of the year, rose $2.15, or 1.9 percent, to $114.69 in afternoon trading Wednesday.

Monsanto's total seed and seed license revenue declined to $4.18 billion from $4.65 billion mainly due to lower sales of the company's best-selling product, biotech corn seeds, which fell 15 percent to $2.9 billion. Soybean sales partially offset the drop in corn rising to $883 million from $820 million.

Sales of the company's signature herbicide, Roundup, and other agricultural chemicals fell slightly to $1 billion in the period.

Monsanto has recently weathered a wave of negative publicity centered on Roundup, with European officials questioning the weed killer's safety when used in industrial farming.

Last month the International Agency for Research on Cancer labeled the Roundup's key ingredient, glyphosate, a "probable carcinogen." The company has pushed back against the conclusion and demanded a retraction from the group, a French research arm of the World Health Organization. The group has no regulatory powers and no commercial sanctions are expected against Roundup and other weed killers containing the ingredient.

The U.S. Environmental Protection Agency, which makes its own determinations, said it would consider the French agency's evaluation.

Just days later the EPA announced that Monsanto would pay $600,000 in fines for failing to report the release of toxic chemicals at a phosphate plant in Idaho.

The company expects full-year earnings in the range of $5.75 to $6 per share. Those results will be negatively hit by 35 to 40 cents in foreign exchange headwinds as the dollar strengthens against overseas currencies.

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Elements of this story were generated by Automated Insights (http://automatedinsights.com/ap) using data from Zacks Investment Research. Access a Zacks stock report on MON at http://www.zacks.com/ap/MON

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Keywords: Monsanto, Earnings Report, Priority Earnings

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Businesses, performers boycott Indiana because of new law

INDIANAPOLIS — Businesses and organizations are canceling events and barring travel to Indiana over a religious objections law that critics say would allow discrimination against gays and lesbians. Lawmakers are working to clarify the bill's intent, but many aren't waiting to see the results.

EVENT CANCELLATIONS

Wilco won't play a May 7 concert in Indianapolis. Comedian Nick Offerman of "Parks and Recreation" and wife, comic Megan Mullally, said they'll donate proceeds from Wednesday's appearance at Indiana University to the Human Rights Campaign and have canceled a May 16 show in Indianapolis.

AFSCME, a union for public employees, has canceled a women's conference planned for October in Indianapolis.

The Mid-American Conference says it won't schedule any meetings or athletic championships in Indiana until the issue is resolved.

ECONOMIC IMPACT

A number of companies — including Salesforce, EMC and Cloudera — have withdrawn their sponsorships for Indy Big Data, a tech conference scheduled in May. Salesforce CEO Marc Benioff says he has also canceled all company travel to Indiana and pledged to "dramatically reduce" investment in the state. Salesforce bought Indianapolis-based ExactTarget in 2013 for $2.5 billion.

Amazon said it had canceled plans for its business development manager to speak at the Big Data event.

Consumer reporting agency Angie's List canceled a planned $40 million expansion of its Indianapolis headquarters, which was expected to bring 1,000 jobs to the city by 2019. CEO Bill Oesterle worked as a campaign aide to former Gov. Mitch Daniels, a Republican.

The National Forensic Association announced Tuesday it is pulling next year's five-day national competition from Ball State University in Muncie. The tournament brings 1,200 to 1,500 students and coaches from about 100 institutions and was expected to generate more than $1 million for the local economy.

TRAVEL BANS

The list of cities and states banning government-funded travel continues to grow. Governors in Connecticut, New York, Washington state and Vermont have barred travel over the law, along with mayors in New York City, San Francisco, Seattle, Portland, Denver and Washington, D.C.

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US construction spending falls for second month in February

WASHINGTON — U.S. construction spending slipped for the second month in February, pulled down by a drop in single-family home building.

Construction spending fell 0.1 percent in February after a revised 1.7 percent drop in January, the Commerce Department reported Wednesday.

The result in part reflects bitter winter weather that constrained construction in many parts of the country during the month. Economists are hopeful for a rebound in the spring and summer as the economy strengthens.

Still, the economists at IHS Global Insight called February's numbers "another poor report" and said in a research note that sluggish construction spending is likely to pull down overall economic growth for the first quarter of 2015.

Last month, the government said that the pace of housing starts plummeted 17 percent in February from January's rate. Home construction slid 56.5 percent in the Northeast and 37 percent in the Midwest, the two regions that endured the brunt of the winter storms.

In Wednesday's report, private spending on construction of single-family homes declined 1.4 percent — the biggest drop since 2010, noted Gregory Daco, head of U.S. macroeconomics at Oxford Economics. Spending on apartments was up 4.1 percent. Nonresidential construction spending rose 0.5 percent, led by a 5.5 percent jump in hotel construction and a 6.8 percent surge in factory construction.

Total private construction spending, which rose 0.2 percent, was offset by a 0.8 percent retreat in public construction spending. State and local governments cut spending by 1.6 percent. They account for more than 90 percent of government spending on construction. The federal government increased construction spending by 9 percent.

Overall construction spending was up 2.1 percent from February 2014.

The economy added 338,000 construction jobs last year, the most since 2005. Still, damage from the collapse of the housing market lingers: The United States has nearly 1.4 million fewer construction jobs than it had in 2006.

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US stock indexes extend slide in afternoon trading

U.S. stocks moved lower in afternoon trading Wednesday, as discouraging economic reports on manufacturing, jobs and construction spending stoked concerns about corporate profits and global growth. The slide extended the market's losses from the day before. Health care stocks were among the biggest decliners. Oil prices surged.

KEEPING SCORE: The Dow Jones industrial average fell 83 points, or 0.5 percent, to 17,692 as of 1:18 p.m. Eastern. The Standard & Poor's 500 index lost nine points, or 0.5 percent, to 2,058. The Nasdaq composite shed 36 points, or 0.8 percent, to 4,863.

THE QUOTE: "We're seeing a bit of a pullback here the last couple of days," said James Liu, global market strategist for J.P. Morgan Asset Management. "The concerns right now are obviously around global growth and, this morning, around U.S. economic growth."

HIRING SLOWS: Payroll processor ADP said that U.S. companies added a seasonally adjusted 189,000 jobs last month. That was below market expectations for an increase of around 250,000. Though ADP's survey doesn't always tally with official numbers, the figures may prompt some analysts to reduce forecasts for the government's next monthly jobs tally, due out Friday.

MANUFACTURING MALAISE: The Institute for Supply Management said its U.S. manufacturing index slipped in March, the fifth monthly decline in a row. The slowdown comes as factory orders have been growing more slowly.

CONSTRUCTION SPENDING: The Commerce Department said that U.S. construction spending declined in February for the second month in a row. The decline was largely due to a 1.4 percent slide in private spending on construction of single-family homes. That's the biggest drop since 2010.

SECTOR MONITOR: Seven of the 10 sectors in the S&P 500 fell, with health care stocks leading the decline. The sector was down 1.5 percent. Telecommunications stocks rose the most. Macerich notched the biggest drop among all stocks in the S&P 500, sliding $4.82, or 5.7 percent, to $79.51. Macerich slumped after rival Simon Property Group called off its hostile $16.8 billion takeover bid for the shopping mall operator.

PUMPING THE BRAKES: Shares in Ford Motor and General Motors fell after the automakers reported a drop in U.S. sales in March. Ford shed 25 cents, or 1.5 percent, to $15.89. GM lost 68 cents, or 1.8 percent, to $36.82.

BAD QUARTER: Supply-chain services company UTI Worldwide slumped 17.1 percent after the company reported a wider fourth-quarter loss and cut its guidance. The stock fell $2.10 to $10.20.

LOW FLYERS: Shares in American Airlines Group and Delta Air Lines encountered some turbulence. American fell $2.41, or 4.6 percent, to $50.38, while Delta slid $1.81, or 4 percent, to $43.14.

STUDY BOOST: Shares in Dyax surged 46.7 percent after the biotechnology company's potential inflammatory condition treatment met key goals in a study, meriting a faster FDA review. The stock added $7.82 to $24.58.

EUROPEAN MARKETS: European shares rebounded from early losses as a monthly survey showed factory output at a 10-month high in March. Germany's DAX rose 0.3 percent, while France's CAC-40 rose 0.6 percent. Britain's FTSE 100 gained 0.7 percent.

ENERGY: Benchmark U.S. crude jumped $2.73, or 5.8 percent, to $50.36 a barrel on the New York Mercantile Exchange.

BONDS: U.S. government bond prices rose. The yield on the 10-year Treasury note fell to 1.86 percent from 1.93 percent late Tuesday.

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