UPI NewsTrack Business

U.S. stock indexes post gains

NEW YORK, Jan. 31 (UPI) -- U.S. stock market indexes rose steadily after a shaky start Thursday, a day after the Federal Reserve cut key interest rates by 50 basis points.

The Dow Jones industrial average climbed 169.32 points to 12,612.15, up 1.3 percent. The Standard & Poor's 500 rose 18.10 points, or 1.33 percent, to 1,373.19.

The technology-heavy Nasdaq index climbed 35.26 points to 2,384.26, up 1.5 percent.

On the New York Stock Exchange 2,313 stocks rose, while 831 declined.

The 10-year Treasury note rose 1/32, yielding 3.638 percent.

The dollar strengthened Thursday. The euro traded at $1.4869, compared to $1.4882 on Wednesday. The dollar traded at 106.49 yen, from 106.43 yen Wednesday.

In Tokyo, the Nikkei closed Thursday at 13,592.47, up 247.44 points, or 1.2 percent.

In London, the FTSE closed at 5,879.80, up 0.73 percent, or 42.50 points.

Utility will sue Maryland for $386 million

BALTIMORE, Jan. 31 (UPI) -- Constellation Energy Group Thursday announced its intention to sue the state of Maryland to recover $386 million in credits awarded ratepayers since 1999.

The conglomerate accused Maryland's Public Service Commission of jeopardizing Constellation's commitment to invest billions in energy infrastructure in the state, The Baltimore Sun reported.

The lawsuit was filed a day after Constellation indicated the corporation was considering construction of a nuclear power in New York state, instead of Maryland.

The dispute began after Baltimore Gas & Electric, a Constellation subsidiary, raised rates 72 percent in 1999. The political reaction gave rise to the credits, which BG&E has been forced to provide ratepayers.

BG&E's fourth quarter profits in 2007 were $258.1 million, provoking a quick response from Gov. Martin O'Malley.

"I think its outrageous that on the same day they announce huge profits, they turn around and try to shift $386 million in costs onto ratepayers," O'Malley said.

Sprint write-offs could hit $31 billion

RESTON, Va., Jan. 31 (UPI) -- Sprint Nextel Corp. warned investors Thursday of a multibillion write-off that could be as high as $31 billion.

The company didn't give the amount but said it could, "represent a substantial portion, and potentially all," of the $31 billion on the books in the company's "goodwill" column, which represents the difference between the purchase price and actual value of acquisitions the company has made.

Sprint Nextel will provide figures at the end of February with its fourth quarter financial statements, The Kansas City (Mo.) Star reported.

Sprint Corp. purchased Nextel Communications in 2005.

European Court rules against Mediaset

BRUSSELS, Jan. 31 (UPI) -- The European Court issued a ruling that declares Italy's method of allocating television frequencies is in breach of European law.

The case has bearing on a frequency dispute over Rete channel 4, owned by Mediaset, a group involving former Italian Prime Minister Silvio Berlusconi.

In 1999, the Europa 7 channel was authorized to broadcast nationally. But, it was never allocated any frequencies because Rete channel 4 never switched to satellite frequencies, as a 1997 Italian law required it to do.

In 2004, however, the Berlusconi government passed a media reform law that enabled Rete 4 to continue broadcasting.

The judges ruled Italy's frequency allocation system, "does not follow objective, transparent and non-discriminatory selection criterion."

Europa 7 had taken the case to Italy's highest administrative court, the Council of State, ANSA reported. The court then appealed to the European Court for clarification.