Chrysler abruptly agreed to recall 2.7 million older model Jeeps Tuesday, reversing a defiant posture and avoiding a possible public relations nightmare over fuel tanks that can catch fire in a rear-end collision.

After initially defying federal regulators, Chrysler abruptly agreed Tuesday to recall some older-model Jeeps with fuel tanks that could rupture and cause fires in rear-end collisions.

U.S. consumer prices rose slightly last month, as higher energy costs partly offset cheaper food. The small increase is further evidence that consumers are benefiting from mild inflation.

U.S. builders stepped up home construction in May and applied for permits to build single-family homes at the fastest pace in five years. The gains show housing remains a key source of growth for the economy.

European car sales had their worst May in 20 years as the region's recession drags on, the European automakers' association said Tuesday.

It's all about the Fed. Still.

The stock market is moving higher in midday trading after the government reported gains in home construction and low inflation.

Starbucks has a new way to wake up its customers: showing the calories in its drinks.

The stock market is closing higher as investors anticipate that the Federal Reserve will keep programs to support the U.S. economy in place.