(AP) — A compromise plan on concealed weapons heading for a House floor vote drew swift opposition Thursday from Gov. Pat Quinn, whose office called it a "massive overreach" because of the way it would curb local firearms regulations. The House Judiciary Committee endorsed Speaker Michael Madigan's plan 13-3 Thursday, one day after it surfaced as an alternative to a plan backed by the National Rifle Association that failed by seven votes in the House last month. The action comes just weeks before a June 9 deadline set by the 7th U.S. Circuit Court of Appeals, which ordered in December that Illinois drop its last-in-the-nation ban on the public possession of concealed weapons because it violates the Constitution's Second Amendment. The measure would repeal Chicago's assault weapons ban and put public safety at risk. A Senate Democratic proposal only pre-empted local control on concealed carry, leaving home-rule cities free to enact other firearms regulations, she said. The NRA backed Phelps' earlier measure and has opposed legislative proposals which include other gun provisions unrelated to concealed carry. Emanuel spokeswoman Sarah Hamilton praised provisions that would make public transit, schools, libraries and parks gun-free, but said the city contests pre-emption, which "would eliminate our ability to establish any additional restrictions in Chicago in the future."

WASHINGTON (AP) — Investors have grown nervous that the Federal Reserve will scale back its efforts to boost the U.S. economy sooner than many expected. Yet almost lost in the anxiety that gripped the stock market this week is that whenever the Fed slows its drive to keep interest rates low, it will be cause for celebration: The minutes said "a number of participants" were open to reducing the Fed's bond purchases as soon as its next meeting June 18-19 — if the economy is showing strong and sustained growth. Or they could swell speculative asset bubbles as investors pursue riskier investments with potentially richer returns than low-yielding bonds. On Thursday, the Labor Department said the number of Americans seeking unemployment benefits fell 23,000 last week to a seasonally adjusted 340,000, a level consistent with solid job growth. Sales of new homes sales rose in April, nearly matching the fastest pace in five years and driving the median price to a record $271,600, the Commerce Department said Thursday. Among other concerns, he and some other Fed policymakers worry that tax increases and spending cuts that kicked in this year are slowing the economy.

LONDON (AP) — Financial markets around the world were roiled Thursday after Japanese stocks suffered their biggest slide since the country was hit by a devastating tsunami more than two years ago. Many factors for the drop were cited, including a spike in the Japanese government's borrowing costs and unexpectedly weak Chinese manufacturing figures. [...] the turn in sentiment in financial markets had its roots in the U.S. on Wednesday and the mixed messages from the Federal Reserve about when it might start scaling back its bond-buying program. While the written testimony to lawmakers from Fed chairman Ben Bernanke appeared to signal that the central bank wasn't ready to change its policy of flooding the economy with money by buying up bonds from banks, subsequent remarks — and the minutes of the Fed's last rate-setting meeting — triggered speculation that a change is afoot. Others say financial markets need to get over their addiction to stimulus and the ending of these emergency central bank policies will be a clear signal that the global economy is healing well from the financial crisis and the deepest recession since World War II. The sell-off is a reminder of Japan's vulnerability as Prime Minister Shinzo Abe tries to end two decades of stagnation with unprecedented monetary easing, increased government spending and reforms to make the world's No. 3 economy more competitive. [...] because it is mostly owned by domestic investors, especially huge banks and insurance companies, the country's credit rating has remained steady. Oil prices were under the kosh too amid concerns over the global growth environment — the benchmark New York rate was down $1.55 at $92.73 a barrel.

"The underlying story in jobless claims continues to be one of gradual improvement," Bricklin Dwyer, an economist at BNP Paribas, wrote in a research report. The decline in claims has coincided with steady job growth over the past six months. Since November, employers have added an average 208,000 jobs a month. Federal Reserve Chairman Ben Bernanke told a congressional committee Wednesday that the job market is improving, but that higher taxes and government spending cuts likely will slow economic growth this year.

Prices surged on congressional testimony by Fed Chairman Ben Bernanke early in the day that suggested the central bank would not slow its massive economic stimulus program any time soon. [...] minutes of a Fed meeting were released suggesting the stimulus could be scaled back as early as next month if the economy picks up, and stocks began dropping fast. "If you had any doubts about the influence of the Fed, you only have to look at the roller coaster that followed Bernanke's testimony this morning and the release of Fed minutes this afternoon," said David Kelly, chief global strategist at J.P. Morgan Funds. Aside from the Fed's stimulus, other factors have been pushing the stock market higher, including a rebounding housing market, a pickup in hiring and strong earnings at big U.S. companies. Investors don't like when the Fed pulls back from stimulus policies and raises interest rates because it typically has slowed the economy, and even led to recessions. [...] JPMorgan's Kelly notes that when interest rates are very low, as they are now, history suggests interest rate hikes won't hurt the stock market that much because it means the economy is getting stronger.