Norfolk Southern Corp. said Tuesday its fourth-quarter profit rose 3.6 percent despite higher fuel costs and flat revenue from key businesses.

The Norfolk, Va.-based railroad credited higher revenue from hauling general merchandise for the increase.

Norfolk Southern said it earned $399 million, or $1.02 per share, in the three months that ended Dec. 31. The company earned $385 million, or 95 cents per share, during the same period of 2006.

Analysts had predicted Norfolk Southern would earn 90 cents per share.

Revenue increased to $2.45 billion in the quarter, compared with $2.32 billion a year earlier. Analysts predicted revenue of $2.33 billion.

"I am pleased to report that Norfolk Southern delivered a strong financial performance in the fourth quarter in the face of economic headwinds and higher fuel costs," Chief Executive Wick Moorman said in a statement.

While general merchandise revenue increased 10 percent to $1.4 billion in the quarter, other key areas posted more modest gains. Coal shipments increased 2 percent to $601 million in the quarter, though

NEW YORK (AP) -- A search for low-risk investments amid a U.S. economic slowdown has prompted the withdrawal of nearly $10 billion worth of crude oil futures bets by hedge funds and other large speculators in the past two weeks, according to major energy trader Goldman Sachs.

The big exit comes as oil prices have slumped more than 10 percent since reaching an intraday record of $100.09 a barrel on Jan. 3. The drop, which has come on speculation that a U.S. slowdown would make a big dent in global crude oil demand, could be exacerbated if the funds, which still have a large net amount of open bets on gains in crude prices, pull more money out.

"Heightened concerns over the economic environment, which have prompted a sharp de-risking across all assets since the beginning of the year, finally spread to oil and commodities last week," Goldman Sachs analysts led by Jeffrey Currie in London, said in a research note. "We believe in the past two weeks funds have liquidated nearly 80 to 100 million barrels" of crude oil futures bets on a gain in prices.

With New York Mercantile Exchange crude oil futures trading mostly between $90 and $95 a barrel for the past two weeks, that would put the amount liquidated so far at up to $9.5 billion.

"If all the speculative length (or bets on gains in prices) were liquidated, prices could drop to the low $80s

Those who oversee other people's money often urge investors not to panic when the market stumbles as it has in recent months and particularly since the start of the year. Setting aside emotion when making investment decisions can be difficult but can also ultimately lead to higher returns, experts say.

Recommendations for surviving rough markets:

-- Consider your investment timeline. If you don't need to draw on investments for the next several years, leaving them in place rather than pulling out often makes for better long-term returns.

-- Examine the risks each investment type might face. If changes are necessary, make them gradually.

-- Think about selling holdings that have done well to put money into areas where bargains can be had, such as beaten down but still-sound investments.

-- Set up a schedule before shifting money in or out of the markets, so that changes follow the calendar

We've been hearing how bad the economy is and how a recession is looming. But before you start hiding your money in your mattress, remember there are opportunities in a down market.

1. Silver Lining for Homebuyers

While it's true housing values have come down - dramatically in many places. And likely home prices are heading lower. So, if you're in the market to buy, now is the time to start the process. Start to look at markets you're interested and gauge your local real estate market.

The other good news is for first time home buyers looking for a traditional mortgage. Both the 30- and 15-year fixed-rate mortgages are at their lowest levels since July 2005, according to Freddie Mac.

Even if you're not buying a home, there's good news. Rent prices aren't really moving up much at all. According to data from CNNMoney.com and Rentometer.com, the median rent check barely moved at all. In some cities like Washington, Phoenix and Miami, rents actually fell dramatically.

2. Know your history

We know how scary it can be if you have a 401(k) or you're holding mutual funds and you've been

TOKYO (AP) -- Asian stock indexes rose sharply Wednesday, rebounding from steep losses in the previous two days after a surprise interest rate cut by the U.S. Federal Reserve.

Japan's benchmark Nikkei 225 index gained 423.82 points, or 3.37 percent, to 12,996.87 points on the Tokyo Stock Exchange in early trading. It had fallen 5.7 percent Tuesday -- its biggest percentage drop in nearly 10 years -- on fears of a recession in the U.S.

The Korea Composite Stock Price Index rose as much as 3.1 percent in the opening minutes of trading. The Kospi slightly pared gains to trade up 2.7 percent at 1,652.39 about 30 minutes into the session. The Kospi fell 4.4 percent Tuesday and 3.0 percent Monday.

European stocks fell sharply at their opening Tuesday, then rose in volatile trading ahead of the Fed's decision to cut its key rate to 3.5 percent from 4.25 percent, and rose even more afterward. The U.K.'s FTSE 100 finished up 2.9 percent at 5,740.10, while France's CAC 40 gained 2.1 percent to 4,842.54. In Germany, the DAX ended barely down, off 0.3 percent at 6,769.47, as utilities RWE and E.On fell but financials such as Deutsche Bank rose.

The surprise Fed move was aimed at fears that trouble in financial markets from the U.S. subprime crisis was spreading to the broader economy. Interest rate cuts tend to boost stocks. The Canadian central

WASHINGTON (AP) -- The Federal Reserve unexpectedly slashed a key interest rate by a bold three-fourths of a percentage point on Tuesday, responding to a global plunge in stock markets that heightened concerns about a recession. The Fed signaled that further rate cuts were likely.

The reduction in the federal funds rate from 4.25 percent down to 3.5 percent marked the biggest reduction in this target rate for overnight loans on records going back to 1990. It marked the first time that the Fed has changed the funds rate between meetings since 2001, when the central bank was battling the combined impacts of a recession and the terrorist attacks.

Federal Reserve Chairman Ben Bernanke and his colleagues approved the large rate cut after an emergency video conference on Monday night, a day when global markets had been pounded by rising concerns that weakness in the world's largest economy was spreading worldwide.

Despite the Fed's bold move, Wall Street plunged at the opening with the Dow Jones industrial average down 465 points before stocks began to rebound. The Dow finished the day off 128.11 points at 11,971.19. Analysts said the milder decline at the end of the day after such a rough start showed the