Lockheed Martin Corp. received a $827.4 million contract from the Air Force for three Air Force C-130J, four HC-130J and four MC-130J aircraft, the Defense Department said late Friday.

The federal government’s budget gap is huge — but by some measures, it’s been bigger in the past. The annual budget deficit reached $1.4 trillion in fiscal year 2009, the Obama administration said Friday, a record sum by far in dollar terms.

The federal budget deficit has surged to an all-time high of $1.42 trillion as the recession caused tax revenues to plunge while the government was spending massive amounts to stabilize the financial system and jump-start the economy.

Stocks ended a strong week with a flash of selling after Bank of America Corp. and General Electric Co. signaled that businesses and consumers are still struggling to pay off their debts.

SAN FRANCISCO—-Fitch Ratings assigns an ‘AA’ rating to $37 million Santa Margarita/Dana Point Authority revenue bonds, series 2009B . Fitch also affirms the ‘AA’ rating on the authority’s revenue bonds, series 2004A and series 2009A .

Bank of America Corp. said Friday it lost more than $2.2 billion in the third quarter as loan losses kept rising, providing more evidence that consumers are still struggling to pay their bills.

The jobless rate in Illinois increased to 10.5 percent in September after a slight dip to 10 percent in August, according to figures released Friday.

A day after an enthusiastic, almost-gushing crowd met President Barack Obama on his first visit to New Orleans since taking office, some in this still-suffering, hurricane-struck city are wondering when platitudes and political speak will give way to greater progress.

A sell-off in stocks helped lift Treasury prices Friday as investors worried that consumers won’t be able to drive economic growth.

The U.S. budget deficit hit a record $1.4 trillion in the just-ended fiscal year, the government said on Friday, as the deep recession and a series of bank rescues cut a gaping hole in public finances.