U.S. market rally fades Thursday
NEW YORK, June 12 (UPI) -- U.S. stock indexes climbed Thursday on positive news from retailers, then faded quickly in the afternoon.
Retail sales gained 1 percent in May, the U.S. Census Bureau News reported. But an early upswing turned around and markets faded into the close.
By close Thursday, the Dow Jones industrial average was up 0.48 percent or 57.81 points to 12,141.58. The Standard and Poor's 500 index rose 4.38 points to 1,339.87, up 0.33 percent. The Nasdaq composite index rose 10.34 points to 2,404.35, up 0.43 percent.
On the New York Stock Exchange, 1,628 stocks advanced and 1,496 declined on a volume of 1.332 billion shares traded.
The 10-year U.S. Treasury note fell 16/32 to yield 4.225 percent.
The euro traded at $1.5426 from Wednesday's $1.5559, while the dollar traded at 107.97 yen from Wednesday's 106.88 yen.
In Tokyo, the Nikkei index lost 294.88 points to 13,888.60, off 2.08 percent.
In London, the FTSE 100 index gained 71.50 to 5,794.80, up 1.25 percent.
Canada to benefit from food price jump
OTTAWA, June 12 (UPI) -- Canada stands to gain from rising rice and grain prices, and its food trade surplus of $11.2 billion in the first quarter, Statistics Canada reported Thursday.
In an international comparison, the agency said consumer prices for food in Canada have risen 1.2 percent in the 12 months ending in April 2008, while prices increased 7.1 percent in the European Union and 5.9 percent in the United States during the same period.
The report said Canadian exports of food and agricultural products hit a record high of $34.6 billion in 2007, after hovering around $31 billion since the commodity boom began in 2002. The increase was driven by grains, which set a record on the strength of a $1.5 billion hike for wheat and canola.
The Canadian dollar's reaching and exceeding parity with the U.S. dollar was also a factor, the report said.
Overall, more than 70 percent of meat, dairy, bread and cereal products in Canadian kitchens is produced domestically, while 40 percent of all fish and fruit and vegetables are imported, the report said.
Smaller packages, same price, mad buyers
NEW YORK, June 12 (UPI) -- Rising commodity prices are prompting many food companies to reduce the size of their packages while keeping prices the same, retail analysts said.
Many ice cream packages have shrunk to 1.75 to 1.5 quarts, USA Today reported Thursday. The size of mayonnaise jars, cereal boxes, even the size of bar soap and the numbers of towels in a paper towel rolls have shrunk, the report said.
"I'm waiting to open a carton of eggs and see only 11," Edgar Dworsky, a former attorney in the Massachusetts Consumer Protection Division, told the newspaper.
"Downsizing is nothing but a sneaky price increase," Dworsky said.
Spokeswoman for Frito-Lay said shrinking packages was "common" and Tim Kahn, chief executive officer of Dreyer's Grand Ice Cream, denied it was a method of sneaking a price increase past the consumers.
"The package-size change couldn't be any more visible," he said to USA Today.
After receiving several thousand complaints, however, Kahn sent a letter to customers.
"I can understand why you may not be pleased with us right now," the letter said. "Our new carton is smaller and no one wants less for the same money."
US Airways considers $2 billion 'hole'
TEMPE, Ariz., June 12 (UPI) -- US Airways expects its jet fuel costs to rise by $2 billion in 2008, its chief executive officer said.
At the airline's annual shareholder meeting Wednesday in Tempe, Ariz., US Airways CEO Doug Parker said the board of directors would consider schedule reductions, layoffs and increased fees, The Arizona Republic reported.
"A $2 billion hole is a rather large hole to dig out of," he said.
US Airways, the first airline to charge for meals, is expected to announce it will charge passengers for soft drinks, sources close to the company said.
Insiders say the carrier will also begin charging fees for a first checked bag, following the lead of American Airlines, where a $15 fee for first bags takes effect next week, the Republic reported.
"Suffice it to say everything is certainly on the table right now," US Airways President Scott Kirby said after the shareholder meeting.
