U.S. markets start Tuesday with declines
NEW YORK, Feb. 26 (UPI) -- U.S. markets stumbled early Tuesday but then took heart news consumer spending increased by 0.5 percent during the week ending Feb. 23.
The International Council of Shopping Centers-USB weekly report released Tuesday said that shopping -- a leading indicator of consumer confidence -- had "inched higher" during the week. News wholesale prices in January jumped a full percentage point, however, had a dampening effect.
In late-morning trading, the Dow Jones industrial average gained 44.61 or 0.35 percent to 12,614.83. The Standard & Poor's index also dropped, added 1.26 or 0.09 percent to 1,373.06. The Nasdaq composite index was up 2.47 or 0.11 percent to 2,329.95.
The 10-year treasury note rose 7/32, yielding 3.86 percent.
The dollar lost ground as the euro traded at $1.4883, from $1.4825 Monday, while the dollar traded at 107.71 yen, from 108.08 yen Monday.
In Tokyo, the Nikkei average lost 89.85 points Tuesday, closing at 13,824.72 points, down 0.6 percent.
Prices for U.S. producers rose in January
WASHINGTON, Feb. 26 (UPI) -- The Producers Price Index for finished goods in the United States gained in January by 1 percent, the Bureau of Labor Statistics reported Tuesday.
The gain follows a 0.3 percent decline in December and a 2.6 percent advance in November, the report said.
Price gains for producers were noted in many sectors as prices for intermediate goods also inclined for the month, up 1.4 percent after a December decline of 0.2 percent.
For finished goods, excluding food and energy products, the index rose 0.4 percent in January, while food prices for producers rose 1.7 percent.
The food prices index was pushed by a surge in prices for baked goods, which jumped 2.7 percent in part due to a surge in wheat prices of 6.6 percent January.
The January jump in wheat prices followed a December increase of 22.6 percent.
Intermediate energy prices also rose in January for producers, up 2.8 percent over December, pushed by diesel fuel prices which rose 5.9 percent in the month.
Pfizer to pull Lipitor ads
WASHINGTON, Feb. 26 (UPI) -- Pharmaceutical giant Pfizer said Tuesday it is canceling a Lipitor television ad campaign after a congressional committee questioned its authenticity.
The ads for the No. 1 selling drug in the world -- with sales of $12.7 billion last year -- feature Dr. Robert Jarvik, who isn't a cardiologist nor a licensed doctor, The New York Times reported.
Nor is Jarvik, a rower, although the ads feature Jarvik -- albeit with a body double -- rowing across a mountain lake.
Early versions of the ads also claimed Jarvik is the inventor of the artificial heart, which former colleagues said was misleading. Jarvik is credited with making improvements on the artificial heart but the credit for the invention should go to Drs. Willem J. Kolff and Tetsuzo Akutsu, colleagues said.
The ads were changed to say he invented, "the Jarvik artificial heart."
The House Energy and Commerce Committee is still pushing ahead with its investigation, the report said.
But, U.S. Rep. Bart Stupak, D-Mich., said: "I commend Pfizer. When consumers see and hear a doctor endorsing medication, they expect the doctor is a credible individual with requisite knowledge of the drug."
Five found guilty of accounting scam
HARTFORD, Conn., Feb. 26 (UPI) -- Five co-defendants were found guilty of doctoring the books to inflate the share value of insurance giant AIG, it was reported Tuesday.
Prosecutors said fraudulent transactions in 2000 and 2001 added $500 million to AIG's reserve fund.
The co-defendants at the trial in Hartford, Conn., included four former executives at General Re and Christian Milton, AIG's former director of reinsurance.
After six days of deliberations, the defendants were found guilty of 16 counts, including conspiracy, securities fraud and lying to the Securities Exchange Commission, The New York Times reported.
Former General Re executives Ronald E. Ferguson, Elizabeth A. Mondrad and Robert Graham and Milton face prison sentences and fines of $46 million, the report said. Former General Re Senior Vice President Christopher P. Garand faces a fine of $29 million.
AIG has agreed to pay $1.6 billion to settle charges against it but analysts question whether AIG's former Chief Executive Maurice R. Greenberg would be implicated further.
"Mr. Greenberg acted responsibly, ethically and legally during his career at AIG," his attorney Nicholas Gravante told the Times.
But defense lawyers and prosecutors both claimed Greenberg initiated the fraudulent transactions.
