UPI NewsTrack Business

U.S. market gains hold Wednesday

NEW YORK, May 14 (UPI) -- U.S. stock indexes held onto gains Wednesday as crude oil prices eased slightly and the government reported inflation rose marginally in April.

Crude oil prices settled at $124 per barrel Wednesday.

Inflation worries were eased by a U.S. Labor Department report that the consumer price index rose below expectations at 0.2 percent in April. Analysts had predicted a 0.3 percent rise.

The Dow Jones industrial average lost half its midday gains in late trading, but closed 66.20 points, or 0.52 percent, higher at 12,898.38.

The Standard and Poor's 500 index rose 5.62 points to 1,408.66, up 0.4 percent. The Nasdaq composite index gained 1.58 points to 2,496.70, up 0.06 percent.

On the New York Stock Exchange, 1,843 stocks advanced and 1,246 declined on a volume of 1.188 billion shares traded.

The 10-year U.S. Treasury note was unchanged, yielding 3.911 percent.

The dollar gained. The euro traded at $1.546 from Tuesday's $1.5478 and the dollar traded at 105.08 yen from Tuesday's 104.79 yen.

In Tokyo, the Nikkei index gained 164.82 points to 14,118.55, up 1.18 percent.

In London, the FTSE 100 index dropped 1.10 points to 6,210.80, off 0.02 percent.

Mexican truckers in political crosshairs

WASHINGTON, May 14 (UPI) -- An agreement to allow U.S. trucks deep into Mexico and give Mexican trucks freer access to U.S. roads has hit political potholes, observers say.

The Teamsters Union and the Sierra Club staunchly oppose a pilot program that allows Mexican truckers to make deliveries north of the border, The Dallas Morning News reported Wednesday.

A lawsuit filed in federal court in San Francisco in August claims Mexican trucks do not meet U.S. safety standards.

Funding for the pilot program has also met with political opposition. Congress cut the funds for the program in December.

The U.S. Transportation Department restored the funds, but Sen. Byron Dorgan, D-N.D., the chair of the Subcommittee on Interstate Commerce, says he will cut the funding again.

"This issue does affect the flow of goods throughout the region," North American Free Trade Association analyst Jeffrey Schott said. "But in terms of politics, energy, climate change and border security are much more important."

A decision on the lawsuit is expected soon, the Morning News reported.

Smart car scores well in crash tests

WASHINGTON, May 14 (UPI) -- The Smart Fortwo, the smallest car for sale in the United States, scored well in safety tests, the Insurance Institute for Highway Safety reported Wednesday.

The Fortwo, smaller than minicars, weighs about 1,800 pounds and is more than three feet shorter than the Mini Cooper, the Institute reported.

It weighs in at one-third the weight of a BMW X5.

But, "the big question … how safe is it?" Institute president Adrian Lund asked.

"Among the smallest cars, the engineers of the Smart did their homework," Lund said.

The diminutive two-seater earned top ratings for front and side crashes and acceptable ratings -- the second best rating -- for protection against rear impact whiplash, the report said.

The report said the Smart car makes up for its small "front-end crush zone," which typically absorbs crash impacts, with a restraint system that "does more of the work."

It also has "a stiff side structure and standard side airbags," the report said. In side-crash tests "injury forces recorded on the driver dummy's head, neck, torso, pelvis, and left leg all were low."

"However, the driver door unlatched during the crash," the Institute reported.

Icahn considering proxy fight with Yahoo!

SUNNYVALE, Calif., May 14 (UPI) -- Billionaire investor Carl Icahn is considering a proxy fight to unseat Yahoo! Inc. board members at its July 3 annual meeting, sources said Wednesday.

Icahn has made a run on Yahoo! shares, purchasing 4 percent of the company since Microsoft Corp. backed away from its bid to purchase Yahoo! May 3, the Los Angeles Times reported.

The sources told the newspaper Jana Partners and Scott Galloway, founder of Firebrand Partners, are also considering a proxy fight with Yahoo!

Jana Partners has combined forces with Icahn in previous proxy battles, the report said.

The deadline for nominating board members is Thursday, but the sources said Icahn's strategy may include asking Microsoft to return to the negotiating table with Yahoo!

Galloway, Icahn, Jana, Yahoo! and Microsoft all declined invitations to comment, the Times reported.