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U.S. markets closed mixed

NEW YORK, May 16 (UPI) -- U.S. market indexes closed mixed Friday as a wavering afternoon rally could not bring the Dow Jones index out of the doldrums.

A record crude oil price at $126.74 per barrel kept inflation worries in focus despite an 8.2 percent jump in U.S. housing starts in April.

By close Friday, the Dow Jones industrial average was down 15.80 points, or 0.12 percent, to 12,976.86. The Standard and Poor's 500 index gained 0.79 points, or 0.06 percent, to 1,424.36. The Nasdaq composite index fell 4.80 points, or 0.19 percent, to 2,528.36.

The 10-year U.S. Treasury note fell 9/32 to yield 3.845 percent.

On the New York Stock Exchange 1,598 stocks advanced and 1,480 declined on a volume of 1.042 billion shares traded.

The dollar fell. The euro traded at $1.5592 from Thursday's $1.5464 and the dollar traded at 104.10 yen from Thursday's 104.60 yen.

In Tokyo, the Nikkei index dropped 32.26 points to 14,219.48, off 0.23 percent.

In London, the FTSE 100 index gained 41.20 points, or 0.66 percent, to 6,293.00.

United cuts back on frequent flier rewards

CHICAGO, May 16 (UPI) -- United Airlines is cutting back on its frequent flier program starting in July, the company announced Friday.

As of July, passengers flying from Chicago to Detroit will no longer earn 500 miles for frequent flier credits, the Chicago Tribune reported.

By eliminating its minimum reward of 500 miles and switching to a per mile system, passengers making the Chicago to Detroit hop will receive 234 miles one way.

The minimum reward had been in place more than 25 years, the Tribune reported.

"There's a profusion of miles out there; it's like funny money," aviation consultant Robert Mann told the newspaper.

Skyrocketing jet fuel costs are forcing airlines to push back perks and add to various fees. United recently added a $25 service fee for some passengers checking a second bag, the report said.

But, an airline spokeswoman said the change in the frequent flier program was implemented to reduce the 511 billion unused miles in the carrier's Mileage Plus program.

'Old Merc' says bye to old digs

CHICAGO, May 16 (UPI) -- The Chicago Mercantile Exchange closed its doors at the close of the day Friday and traders move on to new digs Monday with many memories, traders said.

The "old Merc," as it is called, was purchased by GME Group Inc. last year and will complete its move to new offices at the Chicago Board of Trade building, 141 W. Jackson Street in downtown Chicago, in part because electronic trading has reduced the exchanges' space needs.

The Merc's old offices at 20 S. Wacker St. opened in 1983, the Chicago Sun-Times reported Friday.

"For my father before me and for me, we made our livelihoods down there. I felt it was the best of all possible worlds," trader James Oliff said, nostalgically.

European Union to close tax havens

BRUSSELS, May 16 (UPI) -- Finance ministers from the European Union have agreed to rewrite rules on savings tax in an effort to curtail tax havens, EU's tax commissioner said Friday.

Tax Commissioner Laszlo Kovacs the new rules would be sensitive to Germany's input in the wake of a tax fraud investigation that encompassed 1,400 people, 600 of them from Germany, the EU Observer reported.

The changes would improve communication between banks and "orient the commission in what way we can … formulate amendments of the directive to close the loopholes, Kovacs said.

Germany estimates it losses $46 billion a year in tax fraud each year, the report said.