U.S. stocks mixed ahead of Fed decision
NEW YORK, May 8 (UPI) -- U.S. stock indexes closed mixed Tuesday, a day ahead of the U.S. Federal Reserve's decision on interest rates.
The Dow Jones industrial average lost 3.90 points, or 0.03 percent, to 13,309.07. The broader Standard & Poor's 500 stock index shed 1.76, or 0.12 percent, to 1,507.72.
On the New York Stock Exchange, 1,156 stocks gained and 2,085 declined on volume of 3 billion shares traded.
The technology-heavy Nasdaq Composite Index edged up 0.80, or 0.03 percent, to 2,571.75.
In London, the FTSE 100 index lost 53.30, or 0.81 percent, to close at 6,550.40.
Japan's benchmark Nikkei 225 index closed down 12.99, or 0.07 percent, to 17,656.84.
The 10-year U.S. Treasury note fell 2/32, yielding 4.64 percent, while the 30-year bond lost 8/32, yielding 4.8 percent.
The U.S. dollar fell to 119.95 yen from 120.06 yen in New York late Monday. The euro, in U.S. dollars, moved to $1.3542 from $1.3605.
Grasso wins round in NYSE pay dispute
NEW YORK, May 8 (UPI) -- A New York appellate court Tuesday dismissed four of six claims against ex-New York Stock Exchange Chairman Richard Grasso's $187.5 million pay package.
The New York Appellate Division, in a 3-2 ruling, said New York's attorney general did "not have the authority" to bring four causes of action against Grasso. The ruling said the attorney general could proceed with two other causes of action.
The main rejected claim was that Grasso's package was not "commensurate with the services performed" and was "against public policy."
The two remaining claims allege Grasso knowingly accepted an unlawful transfer of assets and breached his fiduciary duty to the stock exchange.
A spokesman for Attorney General Andrew Cuomo said Cuomo's office expected to appeal.
Grasso's lawyer said Grasso would not comment. An NYSE lawyer said the exchange also would not comment.
The state has contended Grasso's compensation was unreasonable under state laws governing non-profit organizations, which the NYSE was during Grasso's tenure.
2 accused of insider trading in Dow Jones
NEW YORK, May 8 (UPI) -- U.S. regulators Tuesday sued a Hong Kong couple that bought $15 million in Dow Jones & Co. stock before news of News Corp.'s takeover bid became public.
After buying 415,000 shares between April 13 and April 30, Kan King Wong and his wife, Charlotte Ka On Wong Leung, ordered Merrill Lynch to sell all 415,000 shares Friday, three days after CNBC reported on News Corp.'s $5 billion takeover offer, the U.S. Securities and Exchange Commission alleged.
The report, which Dow Jones confirmed, sent Dow Jones shares up 58 percent.
The couple stood to make $8.2 million in profit.
Merrill Lynch contacted the SEC about the trading activity.
The "highly profitable and highly suspicious" trading was unlike any previous trading the couple was involved in, the SEC said in a complaint filed in U.S. District Court in New York.
A federal judge granted the agency's request to freeze the account's assets. The SEC also asked the couple forfeit all profits "realized from the unlawful trading alleged."
The SEC did not say how the Leungs obtained advance notice of the News Corp. bid.
Ousted Dow Chem. execs. sue for libel
NEW YORK, May 8 (UPI) -- Two fired senior Dow Chemical Co. executives filed lawsuits against the U.S. chemical producer Tuesday for libel and breach of contract.
Ousted board member Pedro Reinhard and fired Executive Vice President Romeo Kreinberg -- dismissed April 12 after Dow said they secretly held talks about selling the company -- denied participating in any attempt to sell Dow, and claimed their firings were part of a vendetta by Dow Chief Executive Andrew Liveris.
Kreinberg did not "shop" Dow or otherwise participate "in a conspiracy to sell or acquire the company, in whole or in part," said Kreinberg's lawsuit, filed in New York state Supreme Court.
Rather, the lawsuit said, Liveris wanted Kreinberg out because he "viewed Kreinberg as a threat" due to Kreinberg's "successful" stewardship of a key Dow division coupled with his "willingness to challenge" Liveris' opinions. This "was anathema to Liveris and his management style," the lawsuit alleged.
The lawsuit seeks damages of at least $600 million, plus punitive damages.
Reinhard's lawsuit claims Liveris saw him as a "hindrance," with Liveris using buyout rumors as an "opportunity to eliminate" Reinhard from Dow's board, the lawsuit alleged.
Dow had no comment.
The company filed a separate complaint against the two men in Bay City, Mich., seeking to recover fiduciary damages and money it claimed the pair owed the company.
