UPI NewsTrack Business

U.S. markets fall early Friday

NEW YORK, July 11 (UPI) -- U.S. stock markets fell early Friday on news two government-backed mortgage lenders were headed for trouble.

The Federal Home Loan Mortgage Corp., Freddie Mac, and the Federal National Mortgage Association, known as Fannie Mae, appeared likely to require government bailouts soon because of the shrinking value of their assets. Shares in the companies fell 48 percent and 47 percent, respectively, in pre-market trading.

In late-morning trading, the Dow Jones industrial average skidded lower, off 177.82 points, or 1.58 percent, to 11,051.20. The Standard & Poor's 500 index lost 18.57 points, or 1.48 percent, to 1,234.82. The Nasdaq composite index fell 31.18 points, or 1.38 percent, to 2,226.67.

The 10-year U.S. Treasury note fell 6/32 to yield 3.832 percent.

The dollar fell. The euro traded at $1.5913 from Thursday's $1.5779, while the dollar traded at 105.90 yen from Thursday's 107.04 yen.

In Tokyo, the Nikkei index lost 27.52 points to 13,039.69, off 0.21 percent.

Walgreen Co. to apply brakes to expansion

DEERFIELD, Ill., July 11 (UPI) -- Walgreen Co., the nationwide drug store chain, said it would slow its pace of U.S. expansion while the economy remains slow.

"The best time to take advantage of the competition is when everybody is weak," the Deerfield, Ill.-based chain's Chairman and Chief Executive Officer Jeffrey Rein said Thursday, The Wall Street Journal reported.

Walgreen will continue with 9 percent expansion of stores to close out its fiscal year, which ends Aug. 31, the report said. It expects to grow by 8 percent the following year, adding 495 new stores. Expansion will slow to 6 percent and 5 percent in following two years, the report said.

Walgreen currently has 6,297 drugstores, the Journal reported.

The new plan will cut $500 million in capital improvement spending through its 2011 fiscal year, the report said.

But the goal of reaching 7,000 outlets by 2010 remains intact, the company said.

Canadian unemployment stable in June

OTTAWA, July 11 (UPI) -- Canada's monthly unemployment rate edged up 0.1 percent in June to 6.2 percent, yet remained one of the lowest levels in 30 years, Statistics Canada reported.

Despite marginal increases in May and June, the agency said overall employment in Canada has grown by 1.7 percent or 290,000 jobs in the past 12 months.

Losses in full-time employment in June were offset by gains in part-time work, continuing a 12-month trend, the report said.

The most notable increase by sector in June was professional, scientific and technical services, where 37,000 new jobs were created.

The major decliners were business, building and other support services; healthcare, social assistance and construction, the agency said.

Since June 2007, average hourly wages rose by 4.4 percent to $21.15, which is double the most recent 2.2 percent gain in the Consumer Price Index, StatsCan said.

iPhone debut creates retail frenzy

CUPERTINO, Calif., July 11 (UPI) -- Friday's retail debut for Apple's new iPhone prompted long lines at U.S. stores and a slowdown at the company's Ifixit.com Web site, observers said.

The first shipments of the new gadget may already be sold out, The Washington Post reported Friday.

So many techies logged on for a view of the new iPhone 3G's microchip Thursday, the company's Web site became sluggish, the Post reported.

Lines began to form at some Apple stores Thursday evening. Some enterprising customers were even selling a place on line on Craigslist, an online classified ad Web site.

Prices for a place on line ranged from $50 to $100.

The new iPhone's biggest selling point is its quicker Web connection. The company's Web site lists 1,700 applications, the Post reported.