California just beat Texas by one business measure.

That measure? Most valuable company in America.

In trading Tuesday, the value of Apple -- the California technology company -- surpassed that of the previous #1, Exxon Mobil, the Texas oil giant.

The markets now value Apple at $338 billion, and Exxon Mobil at $337 billion, according to the Associated Press.

This Week in Los Angeles

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This Week in Los Angeles

This could change as soon as, well, Wednesday. So Californians should celebrate while they can.

California seeks to ban free, single-use carryout bags in retail

Full story: Chain Store Age

Del Taco Offering 29-Cent Tacos, Rolls Out New Restaurant Prototype

Full story: Patch.com

Judge overturns California's ban on same-sex marriage

Full story: www.cnn.com

NEW YORK -- Wal-Mart Stores Inc., one of the recession's biggest beneficiaries, felt the pinch during the fourth quarter as quarterly sales fell at U.S. Walmart stores for the first time.

Still, overseas growth and a concerted cost-cutting campaign pushed profit up 22 percent.

The discounter, which rode low prices to dominate U.S. retailing, faced tough price competition from rivals during the holidays. That contributed to a decline in customer counts and spending.

The company said that a key measure of sales showed its third consecutive quarterly decrease as it continues to grapple with deflation in groceries and electronics and a tough economy.

The company also offered a tepid earnings outlook, sending shares down 76 cents to $53.30 in midday trading.

The sales weakness at its namesake U.S. division is happening even as the discounter says it continues to benefit from affluent shoppers trading down to its stores, but the results show that keeping these new customers may prove more difficult when the economy rebounds.

Wal-Mart ( WMT - news - people ) has promised investors that it plans to widen the price gap between itself and rivals as it cut costs and reinvests those savings to lower prices for shoppers, which in turn drives sales.

Wal-Mart earned $4.63 billion, or $1.21 per share, in the quarter ended Jan. 31. That compares with $3.8 billion, or 96 cents per share, in the same quarter last year.

Excluding a 10 cents-per-share tax benefit and a 4 cents-per-share charge related to several business restructurings, the company earned $1.17 per share.

The company says that total sales rose 4.4 percent to $113.6 billion. However, sales at stores open at least a year fell 1.6 percent. That's considered an important measure of a retailer's health.

Analysts surveyed by Thomson Reuters expected a profit of $1.12 per share on revenue of $114.4 billion.

Mike Duke, Wal-Mart's president and chief executive, said in a statement that he expects continued strong growth from its international business this year but that U.S. sales will be more challenging in the first quarter.

"We remain focused on growing top line sales and expect improvement in the U.S. as the year progresses," he said.

Wal-Mart's U.S. division had a 0.5 percent decline in total sales to $70.97 billion in the quarter; Sam's Club sales increased 3.8 percent to $12.28 billion. The company's international business enjoyed a 19.5 percent gain to $29.57 billion.

Greg Rossiter, a Walmart spokesman, said that it was the first time that Walmart's U.S. division had a decline in quarterly sales compared with the same period a year earlier.

Wal-Mart's U.S. division dragged down the company's sales at stores open at least a year. The namesake U.S. division suffered a 2 percent drop in the measurement, while Sam's Club had a 0.7 percent increase. That excludes sales from fuel. Analysts had expected sales at stores opened at least a year to be unchanged from a year ago.

Wal-Mart has been able to grab wealthier consumers trading down from higher-priced stores. But the discounter has also seen continued signs of financial strain among its core customers, noticing pronounced swings in spending between paycheck cycles even as the economy has show some improvements.

Schoewe told journalists that the company's core consumer continued to be "under pressure."

Renovations at its namesake U.S. stores also hurt business because of disruptions. Wal-Mart has been on a campaign to renovate its stores, making sweeping changes like decluttering its aisles and is on a campaign to renovate its stores

The discounter doesn't expect that sales at stores opened at least a year to get much better, estimating that sales at stores open at least a year will be anywhere from down 1 percent to up 1 percent at U.S. Walmart stores.

The company stopped reporting sales at stores open at least a year on a monthly basis last year.

Wal-Mart also said earnings for the first quarter would be in a range of 81 cents to 85 cents, on the light side of 85 cents expected by analysts surveyed by Thomson Reuters.

Wal-Mart, which generated a little more than $400 billion in sales in its latest fiscal year, is considered a key barometer of consumer spending, so economists closely monitor sales trends at the discounter that could indicate what kind of economic recovery the nation would face. Consumer spending - including such items as health care - accounts for 70 percent of U.S. economic activity.

But the company has been focusing on cutting costs so that it can lower prices for shoppers. Wal-Mart said in January that it was realigning its U.S. operations in an effort to give more autonomy to executives in regional markets and reinvigorate U.S. growth.

IRS 400 Suggests Path To Forbes 400

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America's Most Miserable Cities

Cleveland leads a slew of Midwestern towns on our annual list, but thanks to high taxes New York and Chicago make it too.

In Pictures: America's Most Miserable Cities

The city of Cleveland has had a colorful history. The Cuyahoga River, which runs through the city, famously caught fire in 1969 thanks to rampant pollution, and it wasn't the first time. In 1978 it became the first U.S. city to default on its debts since the Great Depression. Cleveland sports fans have had to endure more anguish than those in any other city. The city has been dubbed with a less than endearing nickname: the Mistake by the Lake.

This year Cleveland takes the top spot in our third annual ranking of America's Most Miserable Cities. Cleveland secured the position thanks to its high unemployment, high taxes, lousy weather, corruption by public officials and crummy sports teams (Cavaliers of the NBA excepted).

Misery was on the rise around the country last year. Sure the stock market was up big, but so were unemployment, foreclosures and bankruptcy filings. Meanwhile housing prices, the U.S. dollar and approval ratings for Congress continued their downward spiral.

The widely tracked Misery Index initiated by economist Arthur Okun, which combines unemployment and inflation rates started 2009 at 7.3 and rose to 12.7 by the end of the year thanks to soaring joblessness. That is the highest level since 1983.

Our Misery Measure takes into account unemployment, as well as eight other issues that cause people anguish. The metrics include taxes (both sales and income), commute times, violent crime and how its pro sports teams have fared over the past two years. We also factored in two indexes put together by Portland, Ore., researcher Bert Sperling that gauge weather and Superfund pollution sites. Lastly we considered corruption based on convictions of public officials in each area as tracked by the Public Integrity Section of the U.S. Department of Justice.

We expanded the list of cities under consideration this year to include the 200 largest metropolitan statistical areas (in years past we've examined 150), which led to a shuffling in the ranks. Any area with a population of more than 245,000 was eligible.

Cleveland nabbed the top spot as a result of poor ratings across the board. It was the only city that fell in the bottom half of the rankings in all nine categories. Many residents are heading for greener pastures. There has been a net migration out of the Cleveland metro area of 71,000 people over the past five years. Population for the city itself has been on a steady decline and is now less than half of it what it was 50 years ago.

Cleveland ranked near the bottom when looking at corruption. Northern Ohio has seen 309 public officials convicted of crimes over the past 10 years according to the Justice Department. A current FBI investigation of public officials in Cuyahoga County (where Cleveland is located) has ensnared more than two dozen government employees and businessmen on charges including bribery, fraud and tax evasion.

Since President Obama signed the economic-stimulus package into law February 17, I have received many questions about its provisions. And I've noticed that there are a lot of misconceptions about the plan. Here's the lowdown.

Misconception #1: Most people will get their stimulus money as a check this year.

Instead of receiving a check from the government, most single taxpayers will see an adjustment to their tax withholding in their paychecks in 2009 and 2010, giving them about $45 extra per month for the rest of this year (married workers will receive an extra $65). If you're self-employed, you can adjust your quarterly tax payments to benefit from the tax credit. Then you will claim the credit when you file your 2009 tax return next spring, bringing your tax bill in line with your reduced payments.

The stimulus also provides a one-time payment of $250 to recipients of Social Security, Railroad Retirement and Veterans Administration benefits.(People who applied for any of these benefits for the first time after January 31 don't get the money; only those on the rolls in November and December 2008 and January 2009 are eligible.) You'll get the money electronically or by check, depending on how you receive those benefits. Retired government employees who don't receive Social Security will also get a $250 credit when they file their 2009 returns.

Misconception #2: The adjustment to withholding will have to be paid back when you file your tax return next year.

Wrong -- the stimulus is actually a tax credit of 6.2% of taxable wages in 2009 and 2010, to a maximum each year of $400 for single taxpayers and $800 for married couples filing jointly. The credit is refundable, which means that you can still receive the full credit even if it is worth more than your total tax liability.

Paychecks are being adjusted now to get more money into the economy faster. You'll claim the credit when you file your return next year, so your tax bill should adjust in line with the stimulus money (and you might get some extra money at tax time if your withholding wasn't adjusted enough to account for the extra credit during the year, which may happen for some married people in single-earner households).

But not everyone qualifies for the credit. It begins to phase out for single filers with adjusted gross incomes of $75,000 or higher, or $150,000 for married couples filing jointly, and it disappears entirely for single filers with AGIs of $95,000 or more, or $190,000 for joint filers.

Misconception #3: The first-time home buyer's credit needs to be repaid.

You may not have to repay the credit, depending on when you bought the house.

If you buy a house between January 1, 2009, and December 1, 2009, you could receive a credit for 10% of the home's purchase price, up to $8,000. This credit does not have to be repaid as long as you own the home for at least three years.

If you bought a first home between April 9, 2008, and December 31, 2008, you are eligible for a tax credit of 10% of the home's purchase price, up to $7,500 -- but the credit must be repaid over 15 years, starting two years after you claim the credit. If you sell the home before you finish paying back the credit, the balance is due in full the year of the sale.

The 2008 and 2009 credits begin to phase out if your modified adjusted gross income is more than $75,000 (or $150,000 if you're married filing jointly). The credit disappears entirely after your income reaches $95,000 if you're single, or $170,000 if married filing jointly. You are considered a first-time home buyer if you (and your spouse, if you are married) didn't own a primary residence in the past three years. The credit does not apply to rental property and vacation homes.

Misconception #4: You can't get the 2009 first-time home-buyer tax credit until you file your tax return next year.

Actually, taxpayers who buy a first home in 2009 do not need to wait until they file their 2009 return (by April 15, 2010) to benefit from the credit. To get the money into the economy faster, the federal government is giving you a choice of claiming the first-time home-buyer credit on either your 2008 or your 2009 tax return.

There's actually a way to benefit from the credit even before you buy your first home. If you plan to buy by the November 31 deadline, you can reduce your withholding on your paychecks right away. The increased take-home pay could help you with the down payment. File a new W-4 form with your employer to adjust your withholding. (And remember to re-adjust your withholding again next year.)

If you have already filed your 2008 return, you can use Form 1040X to amend it. If you purchase a first home after the 2008 tax-filing deadline of April 15, 2009, you can still claim the credit on your 2008 tax return either by requesting a six-month extension for filing your return (which doesn't extend the deadline for paying any taxes owed) or by filing an amended return.

Misconception #5: You need to apply through the government to get the COBRA health-care subsidy.

Contact your former employer, not the government, to take advantage of the COBRA subsidy. If you were laid off since September 1, 2008, and are already receiving COBRA coverage, then you'll pay 35% of the COBRA health-insurance premiums, and your former employer will pay the remaining 65%. The government will then reimburse your former employer for the subsidy through a payroll tax credit.

If you were laid off on September 1, 2008, or later but didn't sign up for COBRA coverage, you'll get a second chance to elect COBRA and benefit from the subsidy. You should receive a notice from your former employer soon, or contact your former employer to find out about the steps for signing up.

Misconception #6: You can receive the COBRA subsidy the entire time you're covered by COBRA.

Federal law requires most companies with 20 or more employees to let former employees keep group health-insurance coverage for up to 18 months after they leave their jobs. But the 65% COBRA subsidy lasts for only nine months. After that, the premiums will jump back to the full price - and the average employer health-insurance plan costs $12,680 per year for family coverage, according to the Kaiser Family Foundation.

If you have health issues, COBRA may still be your best bet despite the hefty price tag. But many people can find a better deal by buying their own health insurance. You can get price quotes for individual policies at eHealthInsurance.com, or find a local health-insurance agent at the National Association of Health Underwriters Web site. Check out your options at least one month before your COBRA subsidy expires so you'll have plenty of time to find out how much an individual policy would cost.

The subsidy ends if you find a job and your new employer offers health-care coverage or you become eligible for Medicare. And COBRA does not apply if the company stops offering health coverage to current employees or shuts down entirely.

Misconception #7: The number of weeks you can receive emergency unemployment benefits has been extended.

The stimulus does not provide additional weeks of benefits for people who use their 33 weeks of emergency unemployment-compensation benefits; it just expands the dates that the program will be available.

A federal law passed last year provides an extra 20 weeks of emergency unemployment compensation to workers who exhausted their regular unemployment benefits, plus an additional 13 weeks of extended benefits for residents of states with high unemployment rates (contact your state unemployment-benefits office for details about your state's rules).

The emergency unemployment-compensation program was scheduled to expire on August 27, 2009, and the last day to apply for benefits was originally set to be March 31, 2009. As a result of the stimulus law, unemployed people who exhaust their regular state benefits now have until December 31, 2009, to apply for extended benefits and can receive compensation until May 31, 2010.

NAIROBI, April 8 -- The crew of a U.S.-operated container ship that was hijacked by Somali pirates Wednesday has retaken control of the vessel, U.S. officials and the father of one of the American crew members said.

In a way, it's the same old story: The Rust Belt, comprised of blue-collar cities where the manufacturing industry once dominated, can't seem to find a way to thrive.

Take Pittsburgh. Despite the fact that the city's steel industry began to deteriorate all the way back in the 1970s, the city is still better known for its mills than for its $10.8 billion stake in the technology and life-science sectors, including companies like Bayer (nyse: BAY - news - people ), BPL Global and Plextronics.

Same goes for Buffalo, N.Y. Once a great producer of steel and automobiles, the city's bioinformatics research industry is now flourishing. Yet just like Pittsburgh, Buffalo is shedding population.

In Depth: America's Downsized Cities

To be direct: If Bruce Springsteen, Billy Joel or John Mellencamp has written a melancholy song about your city, it's probably on this list.

And that's the problem. General perceptions of these Rust Belt cities--that they're backward, dilapidated and cultureless--are often too harsh. And that's why, over the last decade, these areas have seen the biggest decreases in population, according to the U.S. Census Bureau.

"Reputations die hard," says Kathryn Foster, director of the University at Buffalo's Institute for Local Governance and Regional Growth.

The plight of these cities is double edged. A lackluster reputation often keeps potential newcomers away, while young adults born there tend to flee because of a lack of a diverse range of opportunities. However, many of those born and bred in the area do return when its time to "settle down," according to Foster.